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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Just 793 first-home buyers took advantage of the revised NSW first-home owners' grant in December last year.
There were 4,233 recipients in the prior December.
The numbers were also down in November last year with 1,763 recipients.
There had been a 2,920 monthly average over the past two financial years.
The December figure was the lowest since the <a target="_blank" href="https://www.osr.nsw.gov.au/lib/doc/stats/fhog_apps_received.pdf">first-home buyers' grant was introduced in 2000 </a> as a measure to offset the introduction of the GST.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/01/fhbjan15.gif" title="Click to enlarge"><img src="/images/stories/2013/01/fhbjan15thumb.gif"></a>
However the NSW opposition has accused the NSW government of "locking young people out of the housing market after the state recorded the lowest numbers in two decades".
The acting opposition leader Linda Burney blamed the drop on the government's decision to scrap the all encompassing $7,000 first-home owner grant along with stamp duty exemptions worth up to $17,990 for first-home buyers purchasing existing homes.
Only buyers of new apartments and houses now qualify for the grant. The $15,000 first-home owner grant (new homes) started in October last year. The grant will reduce to $10,000 in January 2014.
The data was confirmed by the Australian Bureau of Statistics (ABS) showing only 1,383 loans for first-home buyers were approved in November last year.
This is the lowest ABS figure since February 1992, Burney says.
"These figures show Barry O'Farrell has locked first home buyers out of the property market," she said in a statement on Tuesday.
"The premier's decision to dump first-home buyer grants and stamp duty exemptions has been nothing short of devastating for young people trying to buy their first home."
Burney said first-home buyers buying an existing $500,000 home in November 2012 were forced to pay $24,990 more than they would have a year earlier.
"The O'Farrell government has created the worst environment in 20 years for first home buyers trying to enter the housing market," she said.
Acting Treasurer Greg Pearce told Fairfax Media the fall was due to a period of transition to the new grant. 
"This was a difficult decision. However, we believe this is necessary to make buying a new home or apartment relatively more attractive than buying an existing dwelling."
Murray pointed out that Queensland, which made similar policy changes also taking effect in October, suffered a 33% fall in loans taken out by first-home buyers in November.
"I think it's too early to tell what impact the NSW grant is having," he said. "Clearly, during the periods of transition you get some strange things happening."
The Housing Industry Association economist Geordan Murray also said it was appropriate to wait for a few more months' data before drawing conclusions.
Westmead and Liverpool, with about 550 recipients, were the suburbs with the highest uptake during 2012. 
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jchancellor-FAypfDUnLy

NSW first-home buyer numbers fell to 20-year lows in late 2012

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One of many reasons there will be solid price growth in Australian property markets this year is that current prices are at sensible levels. 
Australian house prices make sense in an international context, based on the relationship between household incomes and typical prices. They make even more sense when you factor in culture and tradition, elements economists can’t put into an equation but important nevertheless. 
Reserve Bank Governor Glenn Stevens does not think Australian house prices are unreasonably high and does not believe they will drop. Nor does he agree that we have a price bubble. 
A transcript of a recent interview with the Australian Financial Review shows that AFR editor-in-chief Michael Stutchbury and economics editor Alan Mitchell (why did it take two senior execubots to interview one public servant?) worked pretty hard to get Stevens to agree that Australia was vulnerable to a US-style collapse in property values – but they were unsuccessful. 
I’m always curious as to why doomsayers expect Australia to follow the pattern of the United States, to the exclusion of all other countries. Why would one of the strongest markets on the planet follow the example of the worst? 
The impression created by bad journalism is that most of the nations of the world suffered a US-style collapse in prices, and Australia was one of the few to unreasonably resist the trend. 
In fact, only a handful of countries had property crashes: the United States, Ireland, Spain and, to a lesser extent, the UK. Those declines happened for specific reasons. In the US these included a recessed economy, high unemployment, a major oversupply of dwellings and an unregulated lending sector (pretty much the opposite of Australia on every count). 
The vast majority of nations, even some with weak economies, have escaped decimation of their property values. Many have continued to show growth since the onset of the GFC. Australia is, in fact, reacting in line with most of the world’s nations. 
In his interview with the poorly researched AFR boffins, Stevens repeated his consistent position that Australian house prices are high but relative to other countries they are not overpriced. 
“When you put if fully into international perspective – that is, you don’t just compare us with the US but compare us with a whole range of countries – it’s actually a lot harder to make the case that we’re grossly overpriced and due for a crash,” he said. 
“We’ve been around this level of house prices/incomes for 10 years. It’s taking a long time to burst if it’s a bubble. So, I’m not so much concerned about a crash.” 
However, Stevens said he would be concerned if there was another major rise in prices, such as increase of 10% to 20% seen in some recent years. 
“We have seen some gain in house prices over the past year or so, which is reversing a little bit of an earlier decline. That doesn’t trouble me. I think that’s probably part of the cyclical transmission mechanism working. 
“But it would be, I think, troubling if you saw a return to very strong 10-20% persistent rates of growth of housing prices, especially if that was accompanied by a return of rising leverage. 
“I don’t think that’s going to happen, by the way.” 
Stevens, it seems, shares my view that house prices are at comfortable levels relative to incomes and that we will see solid growth in the near future, without a return to boom levels – with the exception of selected markets with specific dynamics, such as Darwin and Gladstone.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
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terryryder-YECXbqmri2

Glenn Stevens is right – there will not be an Australian property crash, as there is no bubble: Terry Ryder

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Tax in 2013 is certain to be as lively as ever, probably more so with a federal election looming. The tax promises are sure to flow thick and fast.
I'd like to start this year with an old favourite – ATO data-matching. This technique is now regularly used by the ATO to gather a wide range of information it can then trawl through to detect compliance with the tax laws. No one should underestimate the sheer volume of data the ATO now collects and with the ever-increasing sophistication of techniques to analyse and "slice-and-dice" that data, the tax affairs of Australians will come under closer scrutiny.
In its latest endeavours, the ATO has announced data-matching programs targeting offshore bank accounts, credit and debit card sales, and real property transactions. The information collected will be electronically matched with certain sections of ATO data holdings to identify non-compliance with lodgment and payment obligations under taxation laws.
The ATO intends to collect data relating to credit and debit card sales of entities for the period July 1, 2011 to June 30, 2012 from various banks and credit card companies, including the Commonwealth Bank, St George, Westpac, ANZ, NAB, American Express and Diners Club.
Small and medium businesses likely to be data-matched
The program is designed to enable the ATO to better understand and address the compliance behaviour of taxpayers through electronic bulk data-matching to identify potential ATO administrative action. This might include checks on whether tax returns or BASs have been lodged, whether all sales have correctly been returned by the merchant and/or whether GST has been correctly collected and recorded. It is expected that records relating to approximately 900,000 merchants will be matched. Many SMEs may find themselves included in this matching.
Buying and selling property won't escape the taxman's gaze either. The ATO plans to collect the names and addresses of individuals and entities transacting with real property from various sources, including state revenue offices, residential tenancy authorities, and other government agencies. The ATO aims to address non-compliance with lodgment and debt payment through electronic bulk data-matching to identify potential ATO activity.
 
<hr class="system-pagebreak">
 
It's not too difficult to imagine what might catch the ATO's eye. Outstanding tax return and activity statement lodgments would be high on the list. Capital gains tax issues also spring to mind, as does return of rental income, correctly claiming property deductions, ownership of property issues, and more.
Last year, the ATO flagged an increasing focus on property developers who have a history of non-compliance with GST. The ATO said some developers claim input tax credits throughout the life of the development, but then avoid paying GST when they sell.
<h3>A large-scale data-matching program</h3>
With records relating to approximately 10.4 million individuals to be matched, the data-matching project is a large-scale exercise, and the data will come from all states and territories. The property market might have its ups and downs, but is does keep moving – and the taxman won't be far behind!
Australians with offshore bank accounts will also come under the ATO spotlight. Approximately 50,000 offshore account records will be matched.
The ATO says it will collect account details of bank customers to identify Australian resident taxpayers with offshore bank accounts which may evidence undeclared income and/or gains in the 2008-09 to 2010-11 financial years, that is, effectively from 1 July 2008 to 30 June 2011. The ATO will request the account details from a wide range of banks such as: ANZ, Commonwealth Bank, Westpac, Bank of Qld, Macquarie Bank, Bank of China (Australia) Limited, Citigroup, HSBC, Investec Bank, Rabobank Australia Limited, Citibank, Union Bank of Switzerland.
The data-matching is intended to help the ATO identify any non-compliance with lodgment and payment obligations under the tax laws. Of course, offshore bank accounts may have been established quite legally and for legitimate business or other reasons. The ATO's data-matching may, however, result in a query that taxpayers will have to answer.
The detection of offshore bank accounts is now a key activity of revenue authorities around the world. It is not limited to Australian residents and has also been a major focus of the U.S. Internal Revenue Service as well concerning U.S. residents.
Data-matching is well and truly here to stay. Doubtless the ATO will conduct more of these programs throughout the coming year. Stay tuned for more details.
Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/" rel="nofollow">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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thayes-XhNcNKLNWa

ATO data-matching targets property deals

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As we start 2013 I want to briefly return to all of the various themes that I think will be key issues for project marketing professionals this year, starting with one key aspect of demographics. In particular how we will need to continue to take full account of Australia’s ageing population. 
I think we always need to keep the spotlight on this topic because from how projects are designed and then taken to market, demographics are central, and the impact of an older market is now a reality. One key issue is as baby boomers move into retirement how it’s going to directly shape many aspects of our work.
To start this topic I would firstly like to relay some published figures to help clarify why this aspect of demographics will be important.
Today (according to the ABS) there are some 7 million Australians over the age of 50, and while that is around 32% of the population they control 68% of the wealth. Clearly how this group spends money and invests is a core part of the economy and this includes the housing market at its heart.
However, there is already a robust discussion taking place about how baby boomers might plan their retirement, and possibly not surprising, after the GFC the number planning to work until they are 70 has greatly increased. This could make the employment outlook more complex.
One reason for this is understood to be the gap between retirement savings, including retirement savings, and the amount needed for a comfortable level of retirement income. For many people this reality may well involve a detailed consideration of if and when the family home might be sold, to help fund retirement plans and future health care. However there is some divergence here because there are many benefits now attributed to living at home including the wider use of home based health care.
As a group older Australians are enjoying better health and now as we live longer for a couple aged 60 today, there is (according to the ABS) every chance that one will live beyond 90.
In a report Surviving Longevity published by Rice Warner we can find a clue as to how housing options might change between the ages of 60 and 90 and hence how this group will be relevant to how some projects are planned and then sold.
The report suggests three stages of retirement, which is summarised as ‘active’ from 60-65 to 75, ‘passive’ from 65 to 85 and ‘frail’ from 75-85 and beyond. I think it is already established that during these stages how and where people choose to live will and does vary.
If, for example, in the first ‘active’ phase there is a desire to get out and about, with travel and hobbies more a priority, thus it may well be the ideal time to sell the family home and downsize. According to a report produced by the MLC 49% of people are looking forward to their retirement, and this already apparent trend may well start to escalate in 2013.
From only a brief look at this one topic there are many other aspects of the market that could be directly impacted, these would include investor demand, apartment design and amenities, changes to infrastructure and changes to tax policy, with the later already being a reality when it comes to superannuation.
As usual demographics are as always an interesting topic, and I will continue to look at other key factors for 2013 during January.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
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pchittenden-eLqUUC8TWW

How Australia's ageing population will affect residential development

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Mortgage lender RAMS is offering all its home loans until the end of January with no application fee at a time when it says many Australians are reviewing their finances and when first-home buyers are more proactive about considering entering home ownership.
The offer will save borrowers $595 on fees, including the valuation fee.
RAMS has variable rate home loans starting from 5.54% and a three-year fixed rate home loan starting from 5.39%.
In order to be eligible for this promotion, home loan applications need to be received by RAMS by 5 pm on January 31, 2013.
The RAMS campaign is similar to successful marketing campaigns it has run in the past few years.
Currently, some lenders charge in excess of $800 in mortgage application fees.
Westpac, which owns RAMS, charges total mortgage fees of $600.
“We find the new year is a popular time for Australians to review their finances and look at ways they can save money,” says RAMS spokesperson Melanie Monico.
“Many people also take more proactive steps towards their goal of moving into a home of their dreams in the new year.
 “Often people are on holidays and have more time to research properties and start their property search."
Details of the offer can be found in the new <a target="_blank" href="https://www.youtube.com/watch?v=O0gvh8r1NDU">RAMS advertising campaign</a>.
RAMS is particularly focused on <a target="_blank" href="https://www.rams.com.au/home-loans/buying-your-first-home/">providing loans to first-home buyers.</a>
Housing figures released by the ABS yesterday show that first-home buyer numbers fell from 18.7% of all mortgage commitments in October to 15.8% in November.
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lschlesinger-FZcF9M3vE6

RAMS waives application fee for new home loan borrowers

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The number of owner occupier housing loans taken out in November fell 0.5% to 46,199 driven by a drop in first-home buyers taking out mortgages, according to the latest seasonally-adjusted ABS statistics.
This was below market expectations of a 0.5% rise and despite the cash rate falling from 3.5% to 3.25% on October 3 - an indication that lower rates are not encouraging borrowers to take on new debt.
The biggest fall was recorded in South Australia where the number of owner occupier loan commitments fell by 6% followed by Tasmania (-3.3%), NSW (-2.7%) and Queensland (-1%).
Gains were led by the ACT (+3.5%), followed by the Northern Territory (2.3%), Western Australia (1.1%) and Victoria (0.9%).
The national fall in November follows four consecutive months of growth in the number of owner-occupier mortgage commitments.
In October there was a 0.1% rise in the number of owner-occupier home loan commitments, following a  0.9% rise in September and a 1.8% rise August.
Westpac points that excluding refinancing, new lending declined by 1.3% in the month with the headline result "driven by a sharp pull back in the first-home buyer (FHB) market.
In original terms, the number of first-home buyer commitments as a percentage of total owner occupied housing finance commitments fell to 15.8% in November 2012 from 18.7% in October 2012.
"We estimate that lending to FHBs fell 16.7% in November, following a 2.9% fall in October. Lending to FHBs jumped 19% in the six months to September," says Westpac.
"Beyond these timing distortions, the FHB market is expected to advance in response to improved housing affordability associated with lower interest rates.
Westpac also notes that the upgrader market improved in November, with lending up 4.5% in the month and 10.4% higher over the four months to November.
And while there was a 3.3% in lending to investors in November. over the most recent three months lending to this sector is up 11.7%.
The number of loans to buy or build new homes both fell over November, indicating continued weakness in this sector.
Loans for the purchase of new dwellings fell a noticeable 10.3% over November to 2,380 while the number of construction loans fell 1.8% to 4,809.
In value terms, the aggregate value of owner occupier mortgages taken out in November rose by 0.6% to $13.94 billion.
The value of fixed interest investment house loans fell by 3.3% over November to $7.52 billion with taking the value of owner occupier and investment lending down 0.8% for the month to $21.46 billion.
In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 0.8%.
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Mortgage lending falls in November despite October rate cut: ABS

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HSBC Australia chief economist Paul Bloxham has taken a lonely stand against the economists' cabal by tipping the cash rate to rise to 3.25% by year-end.
Just as Westpac’s Bill Evans went out on his own in July 2011 tipping the RBA to start cutting rates when all other economists thought the opposite, Bloxham is the only bank economist who expects a higher cash rate (and hence higher mortgage rates) by the end of the year.
Evans' bold mid-2011 forecast was spot on the money (the RBA began cutting rates in November 2011) – only time will tell if Bloxham’s more bullish economic outlook is as accurate.
Bloxham’s view stands in stark contrast to his distinctly bearish rivals –<a target="_blank" href="/news"> led by the University of Western Sydney's Steve Keen</a> - who says the cash rate could fall to as low as 2% by the end of the year and who last year was spot on with his forecast that the cash rate would fall to 3% by the end of 2013.
Keen is not the only economist tipping a series of rate cuts in 2013, with both Macquarie’s Richard Gibbs and ANZ's Ivan Colhoun also tipping a year-end cash rate of 2%, alongside Stephen Anthony of consultants Macroeconomics.
Just last week <a target="_blank" href="/news">NAB chief economist Alan Oster </a>announced the bank had readjusted its rates outlook to tip three rate cuts over 2013 (in February or March, May and then August), having previously only forecast one rate cut this year.
Oster said the main reason for this change was the weaker economic outlook, with NAB now forecasting GDP growth of just 2%  (compared with earlier forecasts of 2.5%) and unemployment forecast to rise to 5.75%.
Bloxham, who joined HSBC in September 2010 after 12 years as an economic analyst at the RBA, tells Property Observer his expectation of the cash rate rising to 3.25% (most likely in the fourth quarter of the year) is made “with a recovery in Chinese growth in mind in 2013”.
“[The Chinese economy] has already lifting from 7.8% to 8.6% growth, which should be supportive to the international environment and for the commodities sector in Australia,” says Bloxham.
Bloxham also says earlier cash rate cuts are starting to come through and “provide support” to sectors like the housing market (he forecasts single-digit growth in house prices in 2013) and retailing.
And while he expects the Australian economy to grow close to trend this year, he is says the “mining story” is not yet over.
Bloxham acknowledges that other economists have a very different outlook and that it is “very hard to call rates in advance”.
“We are probably more bullish on the China story and in terms of monetary policy, still believe that interest rates still have an effect on the economy,” he says.
"At this stage there are only modest signs that loosened monetary policy is supporting the Australian economy. But with the RBA's cash rate already at a record low (3%) and mortgage rates around 100 basis points below average, we expect that there is more support from the current policy settings yet to flow through to the economy," he says in his latest economic note.
"Keep in mind that the last 50 basis points of cuts has only occurred in the past three months and that monetary policy acts with a lag."
While Bloxham is the only economist tipping a rate rise, he is not the only one with an optimistic outlook with ANZ senior economist Justin Fabo telling the Australian Financial Review his gut feeling is that "things might be better this time".
However, this has caused ANZ to only push back its next rate cut from February to March – the bank still its expects the cash rate to fall.
 
<hr class="system-pagebreak">
 
Property bear Steve Keen expects demand conditions to remain subdued in Australia this year, sticking to his “heretical” argument that Australian mortgage debt has remained in excess of 85% of GDP while in the US, mortgage debt has fallen from 85% to about 65%.
“So they copped pain whereas we didn't; but the catch now is that, for our households to start borrowing again and stimulating demand, they'd need to take on even more debt than they ever have before.
“Since I don't see that happening, I expect demand conditions to remain subdued in Australia this year- whereas in the USA (if it weren't for the government's insane focus on reducing its own debt (a repeat of the debacle of 1937) households could borrow without pushing into utterly new debt-level territory.
“This subdued growth will mean that inflation remains below the RBA's target band, and the economy is more sluggish than they expect.
Keen says the RBA will respond by cutting rates to try to revive the economy, which he says will stop households deleveraging, but “won't inspire them to take on more debt”. 
“So our rates will slowly deflate towards parity with the rest of the developed world.”
Keen expects the average standard variable mortgage rate to fall to about 5.5% - 5.75% with banks continuing to “claw back some of the margin they gave away in the mad scramble for market share when the mortgage boom was on”.
“But not quite back to the 4% that used to rule when lending was less bubble driven,” he says.
As for Bill Evans, he is currently tipping just one rate cut in 2013.
According to comparison website ratecity.com.au, the average standard variable rate as of January 7 2013 was 5.98% compared with 7.31% in October 2011, before the RBA began cutting the cash rate.
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HSBC’s Paul Bloxham the lone rider tipping interest rates to rise 2013 

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Some people are good at home renovations, some are not. I am squarely in the latter category. I have never bought a house that needed rescuing, and the thought of all of the elbow grease required to turn a shack into a superstar gives me heart palpitations and night sweats.
Both of the properties I have bought have been nearly new or brand, spanking new. The most involved I’ve ever gotten with interior design is picking the colour scheme for my new apartment, which also was the first time I’d ever said “I’ll go for the beige” in my life.
My first property was only five years old when I bought it and didn’t really need much in the way of a face-lift. It did need new curtains downstairs, though, and for five long years I looked at, and untangled, those vertical blinds and promised myself I would invest in some fabulous new window coverings, perhaps red with big white spots, sometime very soon. When I rented that property out, those vertical blinds were still there and I was secretly glad that I hadn’t let my penchant for rainbow colours turn away hundreds of prospective tenants.
The problem is my aim for 2013 is to buy a small worker’s cottage and, on my budget, that will mean renovations. I trawl the listings on reiq.com and often see the “perfect” cottage, jam-packed with character and within my budget too, but then I see the internal pics and the need for a new kitchen, bathroom, floorboards, roof, entry stairs, garden and letterbox, and I feel completely and utterly defeated before I’ve even really begun. Perhaps I need to marry a builder? Or better yet an architect who used to be a builder.
Either way, when (or a very big if) I eventually buy my little fairy cottage, I will do my utmost not to overcapitalise. To start with I will follow some of these basic REIQ guidelines to prevent just such an eventuality:
<ol>
<li>Overcapitalisation occurs when an owner spends more money on improving a property than the profit those improvements could be expected to bring if the property were sold, which would be bad;</li>
<li>The REIQ recommends research and a simple formula to minimise the risk of overcapitalising, while adding value and valuable living space;</li>
<li>First of all, note the price you paid for the property, add the expected total cost of the renovations, add another 5% for landscaping, and you have the cost of your house and improvements;</li>
<li>Let’s say the total cost is $450,000. Next look at houses in your street and check real estate ads on reiq.com featuring nearby homes;</li>
<li>If there are no homes valued as high as the $450,000 mark, then you are probably overcapitalising. Only proceed with the renovations if you plan to live there for the next eight to 10 years, or if you’re confident your suburb will be the next to shine;</li>
<li>While it’s an overused real estate phrase, always remember that choosing ‘the worst house in the best street’ is clever buying for those wanting to renovate – although I’m not too sure how long my “dream cottage” will remain the worst house for given my long-held reluctance to renovate.</li>
</ol>
Nicola McDougall is executive manager for corporate affairs for the <a href="https://www.reiq.com/" target="_blank">Real Estate Institute of Queensland</a>. This article originally appeared on the<a href="https://reiqblog.com/" target="_self"> REIQ blog</a>.
<ol></ol>
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nmcdougall-hv3JvhUJmd

Six tips to avoid overcapitalising when renovating

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Last week, NAB adjusted its interest rate forecast from one cash rate cut in 2013 to <a target="_blank" href="/news">three rate cuts over the course of the year</a>, with the first one expected on February 5.
As the countdown begins to the first RBA monetary policy meeting of the year, the question borrowers and first-home buyers will be asking is whether banks will continue to pass on only about 80% of official rate reductions of if they will be more generous.
There’s even been talk of the big four banks cutting their mortgage rates outside of RBA decisions as the competition for mortgages in a slow growth market heats up.
The major banks account for around 80% of all mortgage lending in Australia (three out of every four loans), and their loan books and deposit balances dwarf those of their lending rivals.
According to the most recent APRA banking stats (November 2012), the Commonwealth Bank has an owner-occupier mortgage book worth $215 billion, followed by Westpac ($168 billion), NAB ($136 billion) and ANZ ($125 billion).
Putting this into context, the fifth biggest mortgage lender is ING Direct, with an owner-occupier loan book worth $28 billion.
These are the current lowest fixed and variable rate offerings of the major banks:
(Where the advertised rate is the same, the loan with the lower comparison rate is ranked higher.)
Lowest variable rate offerings:
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="134" valign="top">
Provider
</td>
<td width="124" valign="top">
Loan name
</td>
<td width="97" valign="top">
Rate
</td>
<td width="116" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="134" valign="top">
CBA
</td>
<td width="124" valign="top">
One year guaranteed rate
</td>
<td width="97" valign="top">
5.34%
</td>
<td width="116" valign="top">
6.43%
</td>
</tr>
<tr>
<td width="134" valign="top">
NAB
</td>
<td width="124" valign="top">
Choice Package ($250K+)
</td>
<td width="97" valign="top">
5.68%
</td>
<td width="116" valign="top">
6.05%
</td>
</tr>
<tr>
<td width="134" valign="top">
ANZ
</td>
<td width="124" valign="top">
Simplicity PLUS
</td>
<td width="97" valign="top">
5.70%
</td>
<td width="116" valign="top">
5.75%
</td>
</tr>
<tr>
<td width="134" valign="top">
Westpac
</td>
<td width="124" valign="top">
Rocket repay with 0.7% discount
</td>
<td width="97" valign="top">
5.81%
</td>
<td width="116" valign="top">
6.64%
</td>
</tr>
</tbody></table>
Lowest one-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="137" valign="top">
Provider
</td>
<td width="123" valign="top">
Loan name
</td>
<td width="95" valign="top">
Rate
</td>
<td width="114" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="137" valign="top">
NAB
</td>
<td width="123" valign="top">
Choice Package
</td>
<td width="95" valign="top">
5.34%
</td>
<td width="114" valign="top">
6.11%
</td>
</tr>
<tr>
<td width="137" valign="top">
CBA
</td>
<td width="123" valign="top">
Package rate
</td>
<td width="95" valign="top">
5.34%
</td>
<td width="114" valign="top">
6.21%
</td>
</tr>
<tr>
<td width="137" valign="top">
ANZ
</td>
<td width="123" valign="top">
Fixed rate
</td>
<td width="95" valign="top">
5.54%
</td>
<td width="114" valign="top">
6.37%
</td>
</tr>
<tr>
<td width="137" valign="top">
Westpac
</td>
<td width="123" valign="top">
Fixed Option Home Loan
</td>
<td width="95" valign="top">
5.69%
</td>
<td width="114" valign="top">
6.56%
</td>
</tr>
</tbody></table>
Lowest three-year fixed-rate offerings
<table width="470" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td width="132" valign="top">
Provider
</td>
<td width="131" valign="top">
Loan name
</td>
<td width="96" valign="top">
Rate
</td>
<td width="111" valign="top">
Comparison rate*
</td>
</tr>
<tr>
<td width="132" valign="top">
NAB
</td>
<td width="131" valign="top">
Choice Package
</td>
<td width="96" valign="top">
5.39%
</td>
<td width="111" valign="top">
6.04%
</td>
</tr>
<tr>
<td width="132" valign="top">
CBA
</td>
<td width="131" valign="top">
Package rate
</td>
<td width="96" valign="top">
5.39%
</td>
<td width="111" valign="top">
6.12%
</td>
</tr>
<tr>
<td width="132" valign="top">
ANZ
</td>
<td width="131" valign="top">
Fixed rate
</td>
<td width="96" valign="top">
5.54%
</td>
<td width="111" valign="top">
6.23%
</td>
</tr>
<tr>
<td width="132" valign="top">
Westpac
</td>
<td width="131" valign="top">
Fixed Option Home Loan
</td>
<td width="96" valign="top">
5.59%
</td>
<td width="111" valign="top">
6.38%
</td>
</tr>
</tbody></table>
*A comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure.
For information on refinancing, watch our free webinar <a target="_blank" href="/news">Refinancing and the Interest Rates Riddle</a>
 
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The lowest mortgage rates from the big four banks

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Speculation has been rising in the housing industry since the RBA made its last 0.25-percentage-point cut to the cash rate, bringing the official figure to the post-GFC 2009 "emergency" level of 3%.  Now with rumours the banks may move outside of the central bank’s cycle and make ‘self-initiated’ rate cuts of their own, industry professionals are declaring a better year ahead for property prices than experienced over the previous two – and thus we start the crystal ball gazing.
However, as has been broadly noted, the standard variable mortgage rate remains some 0.6 to 0.8 percentage points above that of 2009, when it was sitting at 5.55% and prices were rising sharply.  Additionally, the strong Aussie dollar is still affecting our terms of trade, and although unemployment data has improved of late (falling to 5.2% in November 2012 from 5.4% in October – although this week's figures may reverse the trend), Victoria’s results aren’t so positive.
In Victoria, a series of job cuts announced by building products maker Boral, which shed 90 positions in its plant near Geelong a number of weeks ago, most recently BlueScope Steel, which announced a further cut of  170 jobs from its Western Port facility in Hastings, and additionally from major companies such as Qantas, which announced the loss of 263 positions from its Avalon base late last year, increased Victoria’s jobless rate to 5.5% from a previous 5.4% – a figure that will go some way in restraining any potential house market gains in this region throughout 2013.
Additionally, Australia-wide economists are warning of ‘softer conditions’ for the rest of the year, which could potentially push the national unemployment rate to 5.7% by December 2013 with the most alarming reports showing <a href="https://www.theage.com.au/data-point/job-losses-retraining-snags-blamed-as-those-at-peak-claim-allowances-20130102-2c5nd" target="_blank">“those aged 25 to 34 and 35 to 44”</a> are the two biggest groups currently receiving Newstart payments – a point of serious concern.
Taking this into account, along with the consideration it’s an election year, which never inspires market gains, I suspect there’ll be little change to our current environment of ‘debt-adverse’ investor sentiment for much of the year – and along with that,  little change in house prices.
In fact, regardless of the constant spruik on the effect of low interest rates on house market prices that is broadly assumed by  many armchair commentators within the property industry, a look at the long-term data shows the connection is in fact pretty weak – a point that has been noted in several academic papers and can be clearly assessed from previous boom and bust cycles (something I may delve into further in a future column).
In other words, you would be hard pushed to find any long-term historical correlation between growth in ‘nominal’ house prices and the change in interest rates – and as for ‘real’ house prices (which accounts for inflation) movements tend to be in the ‘same’ direction rather than the opposing direction as some would expect – meaning as rates, rise so do prices.
Although it may seem logical to assume lending rates initiate price changes, other economic factors play a far greater influence, and unless the needed ingredients are combined, interest rates on their own can do little to change the housing market terrain by any significant degree.
When interest rates are low and more significantly falling, it stands to reason, expected growth in the economy is waning, which doesn’t inspire anyone to take a punt on growth assets considering the low inflationary environment.
Conversely, interest rates rise in response to a ‘flourishing’ economy during which a period of wage growth and healthy employment data underpins investor confidence (hence why periods of rate rises often accompany housing price rises.)
In such an atmosphere, it’s often the panic invested ‘rush to buy’ before prices escalate out of reach, that fuels a boom cycle outside of any change to the cash rate – thereby providing the bullish atmosphere many buyers unfortunately require in order make their move.
As a typical reaction, it takes a series of sharp upward movements in the cash rate in an attempt to defuse the bubble before it overheats – (as was witnessed in 2009-10) –  and even then, prices typically plateau for a period before other factors come into play and a notable ‘correction’ is observed.
 
<hr class="system-pagebreak">
 
Currently, regardless of falling rates, other economic data provides little promise of broad-based asset growth (setting aside the obvious disclaimer that certain micro markets are likely to buck the trend). Therefore, understandably, many investors are looking elsewhere for profit, and the competition needed to initiate property prices is simply not prevalent without further economic changes (which are not at this stage anywhere on the horizon.)
Furthermore – as was seen throughout the year, despite buyer activity remaining woefully low, home owners unwilling or unable to sell their properties tend to withdraw from the market rather than drop prices further, preferring to wait for better times ahead than respond to market demands.  This could be another reason the change in house prices this year has been lower than last leading many to assume we’ve reached six on the property clock – (a position I suspect we will retail for a while yet).
There are however always winners, and in the current atmosphere it’s obviously the mortgage holders.  In Victoria October was the fourth consecutive month and longest period to date during which more mortgages were discharged than lodged as vendors took advantage of competitive lending rates to reduce their debt.  This brings the annual decrease of mortgages to 1,998, which when compared to 2011, is an increase of 726 discharges.
The results are mirrored elsewhere, with national data showing the preference among consumers remains firmly in the ‘safety zone’ of paying down debt and saving – a seemingly sensible environment that has thus far upset the RBA, which is all but counting on property investment to take up any slack from a post-peak downturn in mining – not to mention the government, with a 2013 surplus well and truly off the agenda.
As Glenn Stevens noted in an interview published in a recent edition of the Australian Financial Review ,it’s “most surprising” that the property sector has thus far not reacted (to lower rates) as expected.
Is it really? Surely it should be clear as daylight considering the other market indicators shadowing Australia’s investors – and even with further cuts to interest rates broadly assumed by the majority of economists, the level of uncertainly regarding the performance of the housing market continues.
Forecasts for the year ranging from 3 to 5% by Australian Property Monitors,  4 to 5% by AMP Capital, a more bullish 6% and 8% for Sydney and Brisbane respectively from BIS Shrapnel (which emphasises the changes will “jump” following the federal election – as if property purchasers are all going to suddenly let their hair down in and end of year buying spree).
And a remarkably ‘bullish” prediction of 10% (!) from <a href="https://gulfnews.com/business/property/international/australia-home-prices-seen-rising-10-on-rate-cuts-1.1128423" target="_blank">Janu Chan</a>, a Sydney-based economist at St George Bank – who I suspect may have purchased his crystal ball at a discounted price – and most notably Stephen Koukoula,s who bases his assumption on an additional ingredient  “that house prices in the first 10 days of 2013 have already risen by 0.6%”.
(I argue against the foolishness of relying on a “daily house price index” to reliably predict ongoing trends here)
The weeks leading up to Christmas are generally the busiest of the year in the property market.  Yuletide provides a natural deadline for home buyers desperate to make their move prior to the January break (during which the real estate industry and various offshoots take their annual breather).
Post-Christmas, most are still recovering from too much food, drink and weighty credit card debt to pay the property market much attention – a figure usually reflected in the first quarterly results, which on the face of it typically show weakening conditions.
Speculation that growth in the economy will fall to 2.5% during the year ahead – well below the usual trend of 3-3.25% – is why many are ‘assuming’ a further 25- to 50-basis-point drop is needed if we’re to stimulate the ‘non-mining sectors’ of our economy into a positive environment.
Should this occur and the banks ‘pay it forward’, it will take lending rates low enough to provide a greater incentive for potential property investors to make their move (especially considering long-term deposit accounts will no longer  provide a viable alternative option.) I’d advise any property buyer to err on the side of caution and keep a long-sighted view on the term of any investment they venture into.
As has been noted, it’s an election year, and it can’t be denied that property and politics have close ties. Changes to policy such as inflationary grants and tax incentives, for example, are the best weapons against the housing market, do bear influence on market prices.
Of course, in any market there are always losers – and in this market, it’s without doubt the oft-ignored renters who face erosion to their savings, rising yields, and a market that isn’t providing enough suitable and affordable accommodation in which to secure long-term tenancy. This is an issue I’ll address in my next column.
For the time being I’d take any crystal ball prediction with a pinch of salt – there are quite simply far too many resounding uncertainties looming ahead to make any assumptions.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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