High-profile apartment defect cases have changed the way many NSW buyers approach purchasing, putting greater scrutiny on building quality, strata records and the parties behind a development before a contract is signed.

The industry buyers are assessing today, however, is also different from the one in which cases such as Opal Tower and Mascot Towers emerged.

NSW has introduced a series of regulatory measures aimed at strengthening oversight of apartment construction, including Building Commission NSW, the Residential Apartment Buildings Act 2020 and the Strata Building Bond and Inspections Scheme. Under the latter, developers are required to lodge a bond, with independent inspections forming part of the process for identifying defects in new strata developments.

Those changes provide another layer of protection, but they haven't removed the importance of buyer due diligence.

[smartcode_project:default project_id=5743 project_image_fid=372394]

For purchasers considering an apartment, that means looking beyond the residence itself. Building and strata history, strata reports, the track record of the builder and developer, the condition of common property and any known or planned expenditure by the owners corporation can all form part of assessing a building before purchase.

Whether the development is already complete can also materially change what can be assessed.

An off-the-plan purchaser is necessarily buying before the finished product exists. A completed apartment, by comparison, can be walked through before contracts are signed, allowing the purchaser to see the finishes, common areas and broader building as they have actually been delivered rather than relying solely on plans and renders.

It also removes exposure to some of the uncertainties that exist between an off-the-plan purchase and completion, including construction delays, cost pressures and builder insolvency during the delivery period.

[smartcode_project:default project_id=5743 project_image_fid=927]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a> National Sales Director Ben Hamblett said that greater focus on tangible evidence is increasingly evident among apartment purchasers.

“The biggest shift we're seeing is buyers wanting proof, not promises,” Hamblett said.

“That's exactly why we deal in completed stock - you can inspect the building before you commit - and why we've backed every purchase with a cash bond against special levies.”

At <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> in Parramatta, that emphasis on a completed, inspectable product is already in place.

The 413-apartment, 46-level tower at 12 Phillip Street is being marketed by Projects by Equitifund, allowing prospective purchasers to inspect the residences, common areas and resident facilities before committing.

[smartcode_project:default project_id=5743 project_image_fid=375255]

The Lennox also introduces another layer to the due-diligence conversation through Strata Surety.

The vendor-funded arrangement provides purchasers with a cash-backed bond held in their own solicitor's trust account from settlement. According to Equitifund, the bond covers any special levy raised during the applicable cover period and is provided at no cost to the purchaser.

Special levies can create an unexpected cost for apartment owners where an owners corporation needs funding beyond its existing strata contributions. Under NSW strata law, a special levy requires approval by owners at a general meeting.

Equitifund Executive Chairman Greg Huxley said Strata Surety was designed to provide something more concrete than reassurance about that potential exposure.

“Buyers have every right to ask hard questions about strata risk - the industry has given them plenty of reasons to,” Huxley said.

“Our answer isn't a reassurance, it's a bond. Strata Surety puts real money behind that confidence, held by the buyer's own solicitor, not by us.”

[smartcode_project:default project_id=5743 project_image_fid=375281]

For The Lennox, its completed status also means purchasers can assess not only the apartment itself, but a building that has already been occupied and operating for several years.

Completed in 2021, the $300 million development, designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, comprises one, two, three and four-bedroom apartments, with open-plan living areas extending to private balconies. Interiors incorporate engineered timber flooring, stone benchtops and integrated appliances, while many upper-level residences have views across the river and surrounding district.

Its established amenity can similarly be inspected in operation. Resident facilities include the Watermark precinct with a 20-metre pool, outdoor terrace, barbecue areas, gym, fitness studio and conference room, while ground-floor retail addresses the river walk and surrounding public space.

The Lennox is also home to the Southern Hemisphere's first fully robotic residential car park, which has now operated for several years. Its nine-level basement combines three conventional parking levels with six automated levels, accommodating 327 vehicles using technology from German firm Lödige Industries.

[smartcode_project:default project_id=5743 project_image_fid=925]

The riverfront address puts The Lennox close to much of central <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a>'s existing infrastructure, including Parramatta Station, Westfield Parramatta, Parramatta Park, and the Church Street dining precinct.

The remaining apartments form part of a limited release secured by Equitifund, following the sale of the majority of residences before and shortly after completion.

The regulatory environment around NSW apartment construction has changed considerably since the defect cases that reshaped public discussion around the sector. For purchasers, however, regulation is only one part of the equation. The ability to investigate a building's history, review its strata position and, where possible, inspect what has actually been delivered remains central to making an informed apartment purchase.

At The Lennox, its completed status provides that opportunity before contracts are signed, while Strata Surety adds a financial backstop against special levies beyond the protections already provided under NSW strata law.

[smartcode_project_cta:default project_id=5743]

Joel Robinson

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

Too often, heritage buildings become the podium for a contemporary tower. At <a href="https://www.apartments.com.au/new-apartments/623-collins-607-623-collins-street-melbourne-vic-3000">623 Collins</a>, <a>Sterling Global</a> challenged its design team to reverse that process.

The brief to <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> was deliberately simple: "Don't design around the heritage. Design from it." It became the philosophy behind a project that draws inspiration not only from two landmark heritage buildings, but from Collins Street itself, a street layered with architectural history and civic significance.

That philosophy has shaped one of <a href="https://www.apartments.com.au/developments/melbourne-vic-3000">Melbourne</a> CBD's most considered residential projects, where the 1924 State Savings Bank and neighbouring Batman's Hill Hotel have become the architectural foundation for 623 Collins rather than remnants preserved beneath a new development.

[smartcode_project:default project_id=145324 project_image_fid=372749]

Rather than approaching the site as a blank canvas, <a href="https://www.apartments.com.au/developers/sterling-global">Sterling Global</a> saw the existing buildings as the beginning of the story.

"Sites like this rarely become available," the developer said.

"623 Collins wasn't simply an opportunity to develop a prominent CBD site. It was an opportunity to restore and reimagine one of Melbourne's important heritage landmarks while contributing to the continued evolution of Collins Street. For us, the existing buildings weren't constraints. They were the beginning of the story."

Instead of mimicking the ornate heritage architecture, Plus Studio studied the proportions, rhythm and craftsmanship of the original buildings before translating those characteristics into a contemporary 42-storey tower.

[smartcode_project:default project_id=145324 project_image_fid=372748]

"The brief challenged us to create a contemporary landmark that respected Melbourne's architectural history without becoming nostalgic," Plus Studio said.

"Rather than mimicking heritage, we sought to understand its proportions, rhythm and material language before translating those qualities into a distinctly contemporary architectural expression."

The practice says the State Savings Bank and Batman's Hill Hotel became the project's primary source of inspiration, allowing the heritage buildings and contemporary architecture to exist "in conversation rather than contrast." Generous planted terraces further soften the transition between old and new, creating elevated green spaces while reinforcing the dialogue between the restored podium and the contemporary tower.

That dialogue continues throughout the interiors, where Melbourne designer Fiona Lynch developed a material palette inspired by the idea of alchemy, balancing contrasting materials that reference both the Neo-Grec detailing of the original bank and contemporary urban living. The result is a series of spaces that feel timeless rather than trend-driven.

[smartcode_project:default project_id=145324 project_image_fid=354343]

The project will deliver 316 residences across four collections, Heirloom, Signature, Reserve and the Penthouse Collection, with each responding differently to its position within the building, from the restored heritage podium through to the upper levels of the tower. The Heirloom Residences retain defining heritage elements including original heritage windows, generous proportions and high ceilings, while the tower introduces contemporary homes with expansive layouts and elevated views.

Amenities have likewise been designed to support long-term city living rather than short-stay convenience. Residents will have access to concierge services, wellness facilities including a pool, cold plunge, sauna, steam room and gym, alongside private lounges, entertaining spaces and dedicated resident clubs.

Sterling Global says that approach is resonating with buyers seeking permanence rather than novelty.

[smartcode_project:default project_id=145324 project_image_fid=354347]

According to the sales team, purchasers are looking for enduring architecture, generous floorplans, heritage character and long-term value, with many commenting that 623 Collins "doesn't feel like another apartment development" because of the way the architecture has been curated around the site's history.

Situated on the prominent corner of Collins and Spencer streets, the project occupies one of Melbourne's most recognisable gateway sites, marking the western entrance to the city's best-known street. For Sterling Global, it also reflects a broader shift in city-making.

"Rather than maximising development yield, the project embraces adaptive reuse as a design philosophy, allowing heritage to inform architecture, interiors and the overall resident experience," the developer said.

"The result is a building that feels uniquely connected to Melbourne."

[smartcode_project_cta:default project_id=145324]

How Sterling Global designed 623 Collins from Melbourne's history

Avant Townhomes is adding to Ivanhoe’s family-sized housing options with <a href="https://www.apartments.com.au/new-townhouses/three-82-ivanhoe-382-upper-heidelberg-road-ivanhoe-vic-3079">Three 82</a>, a collection of just 16 four-bedroom townhomes on Upper Heidelberg Road.

The <a href="https://www.apartments.com.au/developers/intrapac-property">Intrapac Property</a> townhome division has taken a contemporary approach to the traditional family home, pairing larger floorplans with the lower-maintenance format of a townhouse.

[smartcode_project:default project_id=152069 project_image_fid=374394]

Designed by <a href="https://www.apartments.com.au/architects/arcadia-studio">Arcadia</a>, with landscaping by Landsite, the homes feature generous open-plan living and dining areas that connect directly to outdoor spaces, with layouts also designed to maximise natural light and privacy.

Natural stone is used throughout the interiors, including in kitchens that pair stone surfaces with bespoke cabinetry, considered storage and SMEG appliances.

The four-bedroom layouts include built-in wardrobes and a main bedroom with its own ensuite, while family bathrooms service the additional bedrooms. Each home also includes a lock-up double garage and intercom entry.

[smartcode_project:default project_id=152069 project_image_fid=374399]

Energy efficiency has been incorporated into the design through solar panels, double glazing and reverse-cycle heating and cooling, with the homes targeting 7-star energy ratings.

Rather than incorporating extensive communal facilities, Three 82 has been conceived around private residential amenity, with the 16-home scale keeping the focus on individual homes and their own indoor and outdoor spaces.

The development is located at 382 Upper Heidelberg Road, around one kilometre from Ivanhoe Village's cafés and retail and a short drive from Eaglemont Station and Ivanhoe Station.

[smartcode_project:default project_id=152069 project_image_fid=374393]

Several of Ivanhoe's established schools are also nearby, including Ivanhoe Girls' Grammar and Ivanhoe Grammar School. The address also provides access to the suburb's parklands and the wider Yarra River corridor.

<a href="https://www.apartments.com.au/project-marketer/nelson-alexander">Nelson Alexander</a> has been appointed to handle sales.

Construction is underway and progressing well, with Three 82 currently tracking toward completion in Q2 2027.

[smartcode_project_cta:default project_id=152069]

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

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

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

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

<html><body>
The restructuring of the Centro Retail Australia property portfolio continues with the shopping centre landlord announcing that it has acquired the Centro Tormino, about 8 kilometres south of Coffs Harbour for $65.5 million from one of its investment syndicates.
The sale was concluded on December 14 and was in line with the June 2012 independent valuation of the centre and 8.3% above the highest offer received for the Centre during the most recent March 2012 sale campaign.
It follows Centro selling its Surfers Paradise Mall for $162.5 million to a Challenger institutional investor syndicate.
Centro Tormino formed part of the Centro MCS 16.
The 21,000 square metre mall was acquired for $25 million in September 2006 on a yield of 10.28% with Coles and Woolworths as the anchor tenants and 35 speciality stores.
The syndicate has not made any distributions to investors since July 2008 and its senior debt facility was due to expire in December last year.
In his update to investors, Gerard Condon, executive general manager of syndicates, says the sale to Centro Retail Australia saved the syndicate approximately $650,000 in sale agents commission.
He also said that any alternative strategies were likely to take more time to complete and incur further transaction costs with no guarantee of improved value for syndicate investors.
Investors are forecast to receive a final syndicate net asset backing of $0.44 per unit.
According to the Australian Financial Review, Centro is considering purchasing another single-asset fund, MCS 27 which holds the $91 million Sunshine Marketplace in Melbourne, as its debt facility reaches term.
Centro is currently acquiring key syndicate assets and disposing of those it deems non-core as part of its restructure plan agreed with lenders in December 2011.
Other assets it has acquired include the Centro Dianella in Perth and full-ownership of the $570 million Bankstown shopping centre in NSW.
Centro will rebrand to Federation Centres at its EGM on January 22, subject to shareholder approval.
</body></html>

lschlesinger-FZcF9M3vE6

Centro buys Coffs Harbour mall from syndicate for $65.5 million

<html><body>
Forget about a fifth banking pillar emerging and a mortgage discount war in 2013.
The big four banks’ dominance of the mortgage market is set to strengthen this year with regional banks, non-bank lenders and mutual lenders continuing to clutch at their coat-tails.
According to Morningstar analyst David Ellis, the major banks are only going to get stronger in 2013 and the last thing they want is a mortgage war to impact on their “highly profitable oligopoly”,
The possibility of a mortgage war was raised by Business Spectator columnist Robert Gottliebsen in a recent article in The Australian titled "The rate discount that will change banking".
Gottliebsen claimed that because lenders like <a target="_blank" href="/news">Yellow Brick Road now have access to cheaper funding from Macquarie Bank</a>, banks will be forced to match discounted offers in the market place and that a mortgage war will erupt.
Ellis says quite the opposite that, while net interest margins are under pressure, a combination of loan repricing, better conditions in wholesale funding markets, the major banks’ strong competitive position and improving funding mix will provide upside to margins.
“We expect major bank pricing decisions to remain rational, as there is no desire for a home loan price war to upset the highly profitable oligopoly," he says.
In a slow-growth housing market, likely to persist until 2015, Ellis says the major banks managed outstanding housing credit growing of 5.9% to the end of October compared to the 4.7% for the total market, continuing to take market share from non-banks.
According to Ellis the major risk to earnings growth for the major banks is a sharp deterioration in credit quality growth, particularly if the economy slides into recession, “but we rank this a low possibility”.
“We do not see any material loan loss risks in the residential portfolios of the major banks and at this early stage of the 2013 financial year, overall credit quality remains sound,” he says.
And while the outlook for the major banks in the current environment of low loan growth, benign bad debts and strong profitability is strong with Ellis expecting them to generate approximately 50–75 basis points bps in internal capital each year, “providing a growing surplus for capital management initiatives” the outlook is murkier for other lenders.
“Regional banks, building societies and non-bank lenders relying on securitisation as a major funding source will struggle to raise cost effective funds, crimping profitability,” he says.
</body></html>

The mortgage loans war we won’t have in 2013: Morningstar

<html><body>
Byron Bay's total property values have dropped 6.7% in the past three years, according to the NSW Valuer-General, with land owners in the Byron Bay local government area (LGA) recently issued with the fresh valuations.
These valuations are used for ratings purposes and reflect the land value based on market conditions as at July 1, 2012.
Byron Bay's 2012 valuation program consisted of a total of 13,036 properties, up from 12,800 in January 2010.
Property values in the Byron Bay municipality have generally decreased in the three-year period since the last valuation program was conducted.
“The total land value of the Byron Bay LGA as at 1 July 2012 was approximately $6.04 billion. This is an overall decrease from the total land value of $6.44 billion determined as at 1 July 2009,” says Valuer-General Phillip Western.
Residential land values have decreased slightly in the period, with the stronger falls in top-end suburbs such as Wategos Beach, Suffolk Park and New Brighton.
In contrast to the general decrease in value, residential land in parts of Mullumbimby and Sunrise Beach showed slight increases in value.
Commercial land values have followed a similar trend, generally showing a slight decrease, with the exception of a number of properties in Ocean Shores, which have shown a slight increase in value.
Industrial land has bucked the trend and generally recorded slight to moderate increase in value over the past three years.  This is can be demonstrated by values of similar properties in Bonanza Drive, Billinudgel, valued in both 2009 and 2012 and rising from $253 per square metre to 270 per square metre  This represents a 7% increase in value over the three-year period.
Rural properties and hobby farm land followed the general pattern and shown a slight decrease in value with the exception of Mullumbimby, showing slight to moderate increases in value.
Typical residential land values as at 1 July 2012 were:
<ul>
<li>616 square metres at Bottlebrush Crescent, Suffolk Park valued at $300,000</li>
<li>633 square metres at Cooper Street, Byron Bay valued at $370,000</li>
<li>718 square metres at Grevillea Avenue, Mullumbimby valued at $225,000</li>
<li>641 square metres at Ivory Curl Place, Bangalow valued at $265,000</li>
<li>613 square metres at Mullumbimbi Street, Brunswick Heads valued at $450,000</li>
<li>1,195 square metres at Tindara Avenue, Ocean Shores valued at $220,000</li>
<li>650 square metres at Mia Court, Ocean Shores valued at $315,000.</li>
</ul>
Typical commercial land values as at 1 July 2012 were:
<ul>
<li>607 square metres at Burringbar Street, Mullumbimby valued at $470,000</li>
<li>658 square metres at Fletcher Street, Byron Bay valued at $1,540,000.</li>
</ul>
Typical industrial land values as at 1 July 2012 were:
<ul>
<li>1,000 square metres at Bonanza Drive, Billinudgel valued at $270,000</li>
<li>1,494 square metres at Smith Street, Mullumbimby valued at $310,000</li>
<li>1,177 square metres at Centennial Circuit, Byron Bay valued at $500,000.</li>
</ul>
Typical rural land values as at 1 July 2012 were:
<ul>
<li>59 hectares at Kennedys Lane, Ewingsdale valued at $1,070,000</li>
<li>77 hectares at Vallances Road, Mullumbimby valued at $725,000.</li>
</ul>
Typical rural residential land values as at 1 July 2012 were:
<ul>
<li>7,625 square metres at Brushbox Drive, Mullumbimby Creek valued at $364,000</li>
<li>4,047 square metres at Figtree Court, Ewingsdale valued at $450,000</li>
<li>4.9 hectares at Friday Hut Road, Possum Creek valued at $550,000</li>
<li>2.5 hectares at Lagoon Drive, Myocum valued at $400,000.</li>
</ul>
Typical hobby farm land values as at 1 July 2012 were:
<ul>
<li>18 hectares at Kirklands Lane, Nashua valued at $510,000</li>
<li>22 hectares at Myocum Road, Myocum valued at $600,000</li>
<li>21 hectares at Middle Pocket Road, Middle Pocket valued at $540,000</li>
</ul>
These valuations have been compiled during the 2012 valuation program from the analysis of 322 residential, 34 commercial, 12 industrial and 192 rural sales.
Byron Bay picture courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
</body></html>

equinn-i7Kmo9afeu

Byron Bay land values down almost 7% in past three years

<html><body>
The Americans are coming back.
A few years after a slew of American companies started arriving on Australian shores, more franchises are searching for operators to escape glum economic conditions and seek a safer trading environment.
The popular diner chain Denny's, one of the largest and most successful brands in the United States, is now searching for a master franchise, along with the ice cream group Rita's, fondue restaurant The Melting Pot and healthcare firm BrightStar.
The move comes as a number of American businesses have <a href="https://www.smartcompany.com.au/retail/20100216-us-companies" target="_blank">arrived in the past few years</a>, with more such as <a href="https://www.smartcompany.com.au/retail/051377-williams-sonoma-and-pottery-barn-opening-in-australia-six-things-you-can-learn-from-the-american-homewares-giant" target="_blank">Pottery Barn</a> on their way.
Grant Garraway of the Franchise Shop is administering the local search process for the four brands, and says Denny's is now ramping up its approach in the Australia-New Zealand region.
"They were here in the market some time ago, and then withdrew. They're up to about eight stores now in New Zealand."
"It's not an inconsiderable investment that we're talking about for Australia. It's a 10-location license."
The investment itself will require about $5 million in capital, says Garraway, who will be setting up meetings for the company's representatives.
The arrival of the Denny's brand is unusual, considering Australia has no long-term connection with the concept of a 24-hour diner. But Garraway says the company has performed well in New Zealand, where economic circumstances have been worse than they are here.
"It's done very well to expand to eight stores," he says. "New Zealand was affected by the economic crisis more than Australia was, and they've had the difficulties of earthquakes and local disasters."
Denny's operates more than 1,600 locations in the United States, along with Canada, Japan, Mexico, New Zealand and the United Arab Emirates. The brand has become famous for never closing – it even stays open on holidays.
The company has also had a good financial run. In the past year, shares in Denny's Corporation have risen 22.7% and are trading at $US5.19. The business appointed John C Miller as chief executive in 2010, who has had a substantial amount of success in increasing revenue and profit.
While Denny's is a returning entrant, The Melting Pot is a brand which was considering the Australian market a few years ago, with no success. Garraway says several American franchises tend to have a look every few years and decide if the market is worth entering.
"If they don't, they'll put it on the backburner. They might advertise in 12 markets, pick up one or two and then just focus on those."
The arrival of the chains suggests Americans are still interested in the Australian market and its relatively strong economy, which is in much the same situation as it was a few years ago when interest first peaked. The American economy remains weak, while Australian businesses remain relatively strong.
As a result, the local market has welcomed a number of American businesses – and several have achieved sizeable success. Apart from big-box retailer Costco, ice cream chain Ben &amp; Jerry's, hardware chain Lowe's and clothing chain Gap have all opened stores.
Several more are looking. Lingerie chain Victoria's Secret is scouting for locations, along with fashion chains Forever 21 and <a href="https://www.smartcompany.com.au/retail/051305-american-fashion-retailer-hollister-gets-ready-to-drop-in-on-the-local-surfwear-market" target="_blank">Hollister</a>. The influx of stores has <a href="https://www.smartcompany.com.au/retail/052971-influx-of-international-retailers-makes-pitt-street-fifth-priciest-global-shopping-spot-for-retailers" target="_blank">caused retail rents to rise</a> in several premium location shopping precincts.
Garraway says while American chains may feel uneasy with the more stringent regulation found in the local franchising sector than back home, it does mean they can be assured of solid returns over a long-term period if the company is run well.
"In general terms, they see Australia as a safe environment. It's much easier to sell a master franchise here than in somewhere like the Middle East."
</body></html>

pmcstafford-pr9eMARWoN

American diner chain Denny's develops a taste for the Aussie market

<html><body>Take the common example of an Australian expatriate who buys a home back in Australia while still resident of another country, including for tax purposes. In this case study, the house will be rented until the expat eventually returns to Australia, when it will become the family’s home. The capital gains tax (CGT) treatment when the home is eventually sold will be influenced by the length of time when the property was not the expat’s main Australian residence. (Main residences are exempt from Australian CGT).What would be this expat’s CGT position if he or she were to own the property for, say, 10 years and it was his or her Australian home for only the final two of those years? Joe Galea, property tax partner for accountants Deloitte in Sydney, says a fifth of any net capital gain should be taxable. The capital gain or loss is calculated by offsetting the so-called “cost base” against its sale price. (Very broadly, the cost base comprises the cost of buying and selling the property after allowing for any capital depreciation.) For more tips for Australian expats buying back home this summer, <a href="http://propertyobserver.com.au/ebooks/free-ebook-20-top-tips-for-australian-expats-thinking-of-buying-homes-this-summer" target="_blank">download our free eBook.</a></body></html>

Understand potential capital gains tax implications: Tips for expat Australian property buyers

<html><body>
Throughout the last half of 2012, you would have seen our articles consistently predicting a turnaround in confidence early in 2013.
And more particularly, we also explained why there would be <a href="/news">a rebound in China's growth</a> following transition to the new administration.
<h3>What's changed as you return from the Christmas break?</h3>
Perhaps a quick recap would be helpful:
<ul>
<li>A partial resolution of the US fiscal cliff;</li>
<li>US employment data continues to improve;</li>
<li>Our government has backed off its surplus commitment;</li>
<li>China's trade figures declared a 14% export surge;</li>
<li>Iron ore prices have jumped 70% since September;</li>
<li>The EEC claims the "essential threat" to the euro is over; and</li>
<li>Australian share prices and bond yields have risen.</li>
</ul>
All throughout last year, Australia's underlying economic fundamentals remained strong.
It was simply a confidence thing. People no longer "felt wealthy", compared to how it had been in the early 2000s. Any interest rate cuts were being squirrelled away into savings accounts, which then reached record levels.
And as we explained, this had been occurring on a week-by-week (or a month-by-month) basis.
However, as confidence returns to the economy,you won't see people releasing the purse strings on the drip-feed. Instead, they will be spending in lump sums on big-ticket items — playing catch-up for the past five years of hibernation.
Bottom line: You were warned last year about trying to pick the bottom of the commercial property market.
Recently, you've seen a surge in car sales. Next will be high-priced household items, and then a boost for house sales as people undertake the upgrade they had postponed.
And so by mid-2013, they will once again begin turning their attention to commercial property — particularly in the under $2 million market.
The question is, will you have already secured your position? Or have you meekly been waiting for the "clear signs," and be knocked over in the rush?
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a href="https://property-edge.com.au/" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing.
</body></html>

chrislang-EQKojcgJPV

What 2013 holds for commercial property investors

<html><body>
I often get asked is residential property a better or worse investment than commercial property, but the answer is neither. Both asset classes can be great investment options, but it all depends on what the investor is aiming to achieve. This is because they are different types of investments with different characteristics that will help investors achieve different objectives.
For example, commercial property is more likely to produce a strong income stream because tenants of shops and offices pay more rent than residential tenants. Also, in most cases all outgoings such as rates and insurance are covered by the tenant, further boosting cashflow.
However, on the flip side capital growth potential is relatively low. Land appreciates (increases) in value, while buildings depreciate. The higher the proportion of land relative to the property’s overall value, the higher the capital growth potential.
With commercial properties, the building often takes up the lion’s share of the value. This low land value often means capital growth is relatively low. Therefore, the key advantage of commercial property lies in its ability to attract high rental returns.
The best commercial property is usually found in high population growth areas such as the outer suburbs with increasing demand from residents for goods and services provided by petrol stations, fast-food outlets and supermarkets.
This is the reason large commercial property trusts such as Westfield invest hundreds of millions of dollars in areas such as South Morang in Melbourne’s north. Surrounding growth suburbs such as Doreen and Mernda have experienced a population explosion in the last five years, and all these people need to spend money to live. This money flows straight into the coffers of the commercial property owners, and as population grows so does their income.
The large property trusts also target the CBD because of the large daily influx of office workers and growing population.
Because commercial property doesn’t have high capital growth potential to counterbalance the interest on a loan, it’s wise to borrow as little as possible (0 to 30%) and fund the purchase with cash.
Residential property, by contrast, doesn’t produce a high income stream because residential tenants can’t pay as much rent as commercial tenants. Landlords are also required to cover rates, and building insurance on the property further diluting their cashflow.
On the flipside, residential property tends to have better capital growth potential because the land usually makes up most of the property’s value and there is a more consistent underlying demand from people who need a roof over their head.
The best residential investment property is usually found in areas with moderate but consistent population growth driven by demand from home buyers, investors and tenants alike. Consistent demand drives land values, which in turn fuel capital growth.
Land values are highest in established areas where there is no more land to build on, such as the inner and middle suburbs. Suburbs such as Richmond or Elwood are highly sought after by residential investors, who already control more than 50% of the residential property in these markets.
Because well-chosen residential property can provide enough capital growth to offset the interest on a loan, investors are more likely to borrow a higher proportion of the purchase price than if you were buying commercial property.
If an investor is looking for capital growth and doesn’t have the cash to purchase a commercial property outright, he or she should focus on residential property. If you purchase in a location where land values are high, the capital growth will be enough to balance out the interest you’re paying on the loan. And, because the property will be producing income, your interest payments will be tax deductible.
Alternatively, an investor who has accumulated a significant nest egg and is now looking to generate income would be wise to focus on commercial property. With low borrowings and higher rental yields, the investor’s money would be producing an income and the investor might not have to work.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
 
 
</body></html>

marmstrong-sd3emVLPPb

Should you invest in residential or commercial property? Mark Armstrong

<html><body>
Proactive borrowers with home loans in excess of $500,000 and a strong equity position are well placed to negotiate substantial discounts off their current home loan rate if they’re willing to putting in the leg work, say mortgage brokers.
The issue of negotiating mortgage discounts has risen to prominence once again with the launch of Mark Bouris’s Yellow Brick Road’s 115-basis-point discount campaign and other substantial rate discounts offerings aimed at new borrowers or those refinancing.
Business Spectator’s Robert Gottliebsen wrote recently of a mortgage and deposit war erupting on the back of Yellow Brick Road accessing cheap funding from Macquarie Bank and a new TV promotion – set to coincide with Mark Bouris hosting Celebrity Apprentice – “to inform borrowers that they can reduce their mortgage rate by 0.3%”.
According to Gottliebsen, all borrowers have to then do is take this home loan approval with them to their incumbent lender and demand a rate cut and if you are with certain banks you will get it – the result a mortgage discount war and the banks returning to overseas markets to access cheap funding.
Yellow Brick Road declined to comment on its upcoming campaign, which Property Observer understands won't kick off until at least after Easter given Channel Nine's program scheduling, suggesting Gottliebsen may have jumped the gun on the campaign. YBR did say that its current 115-basis-point offer had been extended to the end of February.
“We’ll continue to use our relationships with Macquarie and [Channel] Nine to build and promote great offers to the public and deliver them via our national network of branches,” a spokesperson for YBR said.
Property Observer discussions with mortgage brokers indicate that Gottliebsen is more or less on the money – lenders are prepared to offer a discount if there is a risk of losing a good borrower, especially one with a big loan, but warn that getting multiple home loan approvals can damage your credit rating if you don't take them up.
Smartline mortgage broker Michael Daniels says negotiating a discount can definitely be done provided the client is prepared to do a fair bit of work.
“Clients are apathetic, but there definitely are discounts out there,” he says, arguing that competition is fierce between the four major banks.
However, he says banks will not just provide a discount if you tell them you can get a cheaper rate online.
“The first phase would be an email from a broker confirming the offer that they can make.
“This is more of a pricing email than an approval, but it is assumed that the broker would only be quoting a loan that they are confident would be approved,” he says.
“If this does not work, then a full submission will need to be made to show the current bank that their client is now a genuine flight risk,” he says.
This should do the trick, but if it does not, he says borrowers can, with the help of their broker, secure a discharge authority from an alternative lender (offering a lower rate), which is required to get a mortgage off title.
Daniels says this worked with a client who believed he was paying a mortgage rate 20 basis points higher than he should.
An initial letter from Daniels to the bank, secured the borrower a five-basis-point discount, but it was only when he the client presented the lender with a discharge authority notice that the bank wilted and gave him what he wanted.
“That’s when the bank knows you’re serious and when their client retention teams are likely to takeover,” says Daniels.
However, he says in most cases an email from a broker should suffice to get the attention of your bank manager.
Mortgage Choice head of corporate affairs Belinda Williamson agrees that there is competitive tension between lenders at the moment.
“As you probably know, in terms of funding costs it is generally more beneficial for a lender to keep an existing borrower by offering an incentive to stay than it is to attract a new customer. “More incentives are likely to be offered to borrowers who have a high loan amount ($500k+) and a low LVR (under 80%). However, it still does come down to lenders' policies,” she says. Depending on the borrower, their loan type and lender, Williamson says it may be possible to get discounts of up to one percentage point off the standard variable rate. “It is definitely worth anyone's while to enquire and do their best to negotiate. If you don’t ask, you won’t receive,” she says.
Williamson says that even though basic variable rate borrowers already have the advantage of receiving the lender’s lowest interest rate that can also try to negotiate.
She says borrowers don’t need to get loan approval with another lender to negotiate a better rate with their existing lender and adds that borrowers should be mindful that multiple loan applications can impact their credit rating and hence their ability to borrow in the near future.
“There are other tools that borrowers can use to negotiate a better loan deal before going to the extent of apply for a loan offer from another lender (hence, adding a notch to their credit record) for the sake of price matching.
“For example, a borrower could ask their mortgage broker to use their lender relationships to do the negotiating for them or to shop around for ‘cheaper’, better suited loan.
“A borrower could also use lenders’ marketing material to negotiate based on an advertised rate. In any case it is important that the borrower is negotiating based on similar loan products,’ she says.
Don Nicolussi, a mortgage broker with Home Loan Warehouse, says pricing or interest rate is a very important consideration “but as brokers we are constantly on the look-out for innovation and flexibility in the area of lending policy and product options”.
“As brokers we welcome competition in the banking sector if it means more options and favourable pricing for our clients in the long term.
“That is, a strong industry with the right number of lenders,” he says.
</body></html>

Big mortgage + big deposit = big rate discount possibilities: mortgage brokers

<html><body>
One reason many economists and journalists prematurely pronounced the death of the resources boom last year was the alleged “slowdown in China”. 
The definition of “slow growth” in China is two to three times the growth of anywhere else. Such was the case in 2012, when the world trembled because China’s economic growth rate was below 8%.
But the latest figures from China’s National Bureau of Statistics depict on economy that should never been mentioned in the same sentence as “slow”.
The economic growth rate in the December Quarter rose from 7.4% to 7.9%. That’s about 140% higher than our growth rate – and Australia ranks highly on a global scale.
China’s industrial output rose 10.3%, and fixed-asset investment rose 20.6% last year. Retail sales grew 15.2%, year on year, to the highest point in eight months.
China is Australia's largest trading partner and a major customer for our resources, so it’s positive news that it continues to grow so strongly.
But, of course, it’s not all about China. We have plenty of other important customers, and one of the most important is India.
India has a particularly big appetite for coal, something that’s not so good for the global environment but decidedly good for the Australian economy.
Queensland, in particular, stands to benefit from Indian investment in the coal industry, with two entities each planning to spend around $10 billion on mines, rail links and export facilities.
All this has been percolating while people have been writing the obituary for the resources sector.
Now we have India’s Ministry of Coal instructing the country’s mining companies to be “more aggressive” in securing mining projects internationally, with Australia at the top of the list. India has a massive and growing population creating big demand for power supplies, and coal-fired power stations are very much in vogue in India.
So we have two of the biggest customers for Australian resources in an expansionary phase.
That feeds into property markets around the nation, especially in Queensland and Western Australia, but also in South Australia, the Northern Territory and New South Wales.
I have recently written reports including National Top 10 Best Buys 2013 and National Top 10 Boom Towns – and many of the 20 locations that feature in those two reports are touched by the resources sector. Most are not dependent on the mining industry, but the influence of that sector often elevates these places from solid economies (and property markets) to very strong ones.
So the ongoing health of the resources industry is important to key property markets.
I believe “the resources revolution” is only getting started and will extend beyond my lifetime because the growth processes under way in China, India and elsewhere. I always thought claims of its demise in the second half of last year, mostly because of a short-term fall in commodity prices and the so-called slowdown in China, were ill-advised – more to do with the short-term news cycle than properly informing people.
Now we have iron ore prices climbing again, China growing strongly, India hungry for coal and multiple massive gas ventures charging ahead.
It will be the basis for strong price growth in many markets in 2013.
</body></html>

terryryder-YECXbqmri2

Australia's resources revolution is only getting started, and it feeds into property markets around the nation: Terry Ryder

<html><body>
It’s almost impossible to think about any aspect of marketing today that does not involve the use of online applications and this includes project marketing. However, before we start to look at some of the key trends, I want to suggest some clear pointers for our industry. 
To help keep a focus relative to project marketing it is useful to approach this topic in two main areas: content and delivery, with delivery including both applications and devices.
The main reason I have done this is to help ensure that we aim to discuss practical examples of how to use online media across the varied sales roles we undertake for any project. And further, which tools might be best suited to relevant parts of the sales path, from a registrations of interest campaign to the ongoing marketing. We must appreciate how online media and other technology can enhance the sales path, while the buyer experience needs to remain central outcome.
I think that this is a reasonable approach because according to comScore, there are more than 1 trillion digital interactions monthly, and given this huge number and all of the new technologies out there, our industry needs to be sure that the varied options we use to drive our business are relevant. There can be lots of opportunity, but we need to make sure we are not being swept up by the allure of the technology without a clear focus on the benefits it will bring to the sales path. As an industry we are now spending more and more money in the online environment with each project, but we need to keep a balance and be sure that we are fully engaged with the buyer and not simply relying on technology.
The digital environment is, however, a part of every consumer’s world and is more accessible than ever. Our role is to use this in a positive way but not become lazy.
So as we start to look at some of the key trends for 2013, as project marketers we need to be actively involved in helping to build sales paths that in turn match the digital tools available and produce content that will help sell the projects we are marketing.
Smartphone and tablets
The first point is one connected to the key aspect of delivery: how are our marketing messages being received?
The use of smartphones and tablets is growing rapidly, and it is only a matter of time until they become the main way people access the web.
How the devices are used varies greatly. If we think about this, we need to start delineating our messages and at the very least this will address full consideration of how project websites are designed.
I am sure we have all seen a tablet being used in a café or at the airport, and this helps underline that research shows most tablets are used for research and entertainment
Consumers on smartphones who are out and about looking at property are not really in the frame of mind to stop and fill out a long online forms or view a complex PDF about your project or fiddle about to re-size an image, and so specific mobile web sites are required.
As we are dealing with mobile communications, it’s also important to remember that neither tablet nor mobile users will have immediate access to a printer.
The value of content needs to be seen through the eyes of a buyer who might be very much on the move and so content needs to be planned according – again, this brings us back to the value of content. When we set out to plan the goals for mobile marketing and communications we need to be sure and match the various devices that consumers use.
<hr class="system-pagebreak">
Send to a friend
Look at almost any digital marketing you now receive, or think back to those digital Christmas cards you prepared or received in December, and you will more than likely recall the words – ‘share or send to a friend’. Interaction with others is now at the heart of digital marketing. We need to be aware of this and how information of every kind is being shared is starting to change how a product received by the market.
Our target market is almost guaranteed to share the content (information) we provide with their family, friends and associates and all mobile devices make this very easy. It is also going to be shared by Facebook, Instagram, etc, and our target will of course almost always add their own comments –  both good and bad!
We will be working to encourage comments that we want to be positive – ‘look at this great image’ we do not want ‘look at this rubbish that so and so just sent me,’ and again this brings us back to the quality of our content.
In looking at content from now on we need to ensure that we produce content that our target will want to “send to a friend” and this will enhance our marketing efforts.
Make sure there is enough interesting material, material that will have content to engage our target, so that they buy into our message, we need to have a clear vision and the third item is to ensure our content has variety and is relevant.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
 
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News