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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There was a marked decrease in the amount of time it took to sell property in Perth in December 2012 compared with December 2011, according to Australian Property Monitors.
Perth property took an average of 125 days to sell in December 2011, but in December 2012 that number had dropped to 104 days.
The APM report on the number of days on market indicator recorded an increase across 2012 in all other capitals except Canberra, where it remained steady at 78 days.
The biggest increase was in Brisbane, where the number of days on market increased 14%, from 120 days in December 2011 to 137 days in December 2012. 
In the December 2012 month Hobart's rate of sale quickened, but Brisbane fell back noticeably. In December 2012 Sydney's days on market stayed about the same, while in Melbourne it took an average of five days more to sell than in November 2012. 
The latest Darwin December 2012 figure dropped in an unusual way, suggesting it might not yet be considered a permanent realignment. 
 
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/01/apmjan141.gif" title="Click to enlarge"><img src="/images/stories/2013/01/apmjan141thumb.gif"></a>
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cknowlton-QnEa6ntUYP

Property selling faster in Perth in December 2012 than December 2011

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A more bearish outlook on the economy has seen NAB revise its interest rate expectations to forecast three rate cuts in 2013, taking the cash rate to a new record low of 2.25% by year-end.
The bank had previously forecast just one rate cut in 2013.
It expects the first rate cut in the first quarter of the year (either February or March) and has tentatively penciled in further rate cuts in May and August.
“With the economy continuing to weaken and unemployment set to rise noticeably through 2013 the RBA will need to cut significantly further than previously expected in 2013,” says NAB chief economist Alan Oster.
The bank has downgraded its 2013 GDP forecasts from 2.5% to 2% with unemployment expected to rise to around 5.75% by late 2013.
“That would see, on a no policy change basis, a budget deficit in the $10 billion to $15 billion range for 2012/13," says Oster.
Oster says the weaker activity outlook will also help contain inflation to below 3% (within the RBA target band) “even including the carbon tax impact”.
“Nor do we see the Australian dollar offering much relief to a struggling economy,” he says.
NAB expects the dollar to track lower over the course of the year to reach parity with the US dollar in late 2013. 
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lschlesinger-FZcF9M3vE6

More bearish NAB now expects three interest rate cuts in 2013

jochivers-wq5Bp59R5a

The ins and outs of simple, small subdivisions: Three of the best of Jo Chivers

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Those expecting a "get rich quick" list of tricks will be disappointed. If you are reading this and you have even a slight interest in using property as a vehicle to grow wealth and prosperity, you’ll know that most property investors employ a mid-long-term strategy instead of a ‘get rich quick’ one. If ultra-fast profits, aka ‘get rich quick’ schemes, is your ambition in the property investment sector, then my advice is to seek other types of investment! Instead, I’ll list tricks that are more about thinking outside the square, or perhaps processes that can be made more efficient to either save time or money, during your property investing career.
1. Be stamp duty conscious and don’t be afraid to take advantage of states where duty is less extreme.
One of the biggest hurdles in getting started in property investing is the stamp duty element. It sucks, but for a long time, it has been a necessary evil. Those buying their own homes may be able to avoid it, but investors must pay this upfront. The best thing you can do is keep yourself updated on state-by-state nuances when it comes to stamp duty.
There has been a lot of talk recently about it being scrapped in some states in order to help kick-start the housing industry in those states. My thoughts are that any scrapping in stamp duty purchase costs will come back as some form of tax or another. Perhaps higher land taxes or other state taxes would replace them. Still, assuming for now that stamp duty won’t be scrapped, you should investigate states where these costs are reduced.
When I refer to stamp duty, I refer to three charges actually, that must be paid for, per state, at purchase. These are the stamp duty itself (the biggest portion), the transfer fee (this can vary from as little as $100 up to thousands), and mortgage registration fees (a very minimal charge). For example, on the same $300,000 investment property price, you could be paying as little as $8,873 in the ACT, or up to $14,041 in VIC. The difference of $5,000 could be a make-or-break factor for first-time or new investors.
2. Pay down your bad debt while you are doing your due diligence. 
 This is a big one, and one of the easiest to do. Personal debt (which most, including myself, call 'bad debt' because it is debt that is not producing an income) can hurt your chances when working with a lender (or a broker who engages lenders on your behalf). I read somewhere that for every $1,000 of credit card debt, personal loan debt, or other debt that you can pay out, it can add around $5,000-$10,000 of loan capacity to your status. Not sure how true that is, but my trick is to use your due diligence time (say three to six months of intense research) to aim to pay off as much outstanding debt as possible. You'll be surprised at how much more a lender will loan you when you have little to no personal debt. The additional volume of loan you can then have may enable to you to invest in a more desirable investment property than you initially hoped for.
3. While on finance – get used to the word 'no' and use it to your advantage. 
 The trick here is all about lenders saying no. Those who employ the services of a mortgage broker are less likely to have an ‘absolute no’ (in other words, not one single lender willing to lend to you). But even then, never accept a ‘no’ from a lender as defeat. Banks and other lenders, while tightening their purse strings in the past year or two, are still willing to lend, you just have to find creative ways to agreeing on a product-type with them. 
 
<hr class="system-pagebreak">
 
4. People watching!
No, not in a perverted neighbourhood peeping Tom kind of way, but more in a 'walking the streets, eating in the restaurants, and sitting in the local park on a Saturday' kind of way. Get to know your target suburb occupants firsthand by witnessing them in their daily lives. Why? This can help give clues as to the kind of property type to buy.
Census data and other data sources cannot always be trusted in capturing the snapshot of who really lives in a suburb, so you need to see this first hand. It'll help inform your decisions about dwelling type, bedroom volume, and demand for proximity to certain amenities. For example, if you see lots of very young families with babies – despite data telling you otherwise – those babies will likely need pre-school within a couple of years. It may be worth considering proximity to pre-schools as a factor in your property search.
5. Always keep your eye on the prize by having an exit strategy up front. 
 Too many new investors – including yours truly – tend to focus much of their energy on the acquisition stage. Some people are heavily focused on growth, so they set targets like 'I want to acquire one property a year for 10years, and then hold'. But then what? Selling up, or 'cashing out', as some call it, is a process that must be planned for, up front, by collaboration with an account, an advisor, and with your personal dreams, hopes, and aspirations. That last part is the most important bit, and should be the dictator of when it's time to cash out.
If you are like me, you'll want to be spending most of your 50s and beyond cruising down the Nile River for six months of the year, or trekking through Alaska or something. You need to figure out how you are going to dump as many of these properties as possible, at the right time to achieve your goals. If you have 10 properties you may want to offload over half of them, but beware: this process could take many years to do it in the most tax-effective way. Starting out, you must focus on the start, but so too should you map out when you want it all to end.
6. Build your industry relationships and foster them.
Build solid relationships with your ‘crew’ (as I like to call them: your mortgage broker, solicitor, planner, accountant, managing agents etc). I send them all a Christmas card every year. It sounds like a minor thing to do, but little touches like these, help keep the relationship strong. In effect, you are paying all of these people to do work for you, so really, you are their customer. If anything, they should be sending you a Christmas card! But being polite, while being assertive, helps to maintain a good relationship. I’ve known investors who treat their crew terribly, getting angry at them all the time over small things, being rude and demanding on calls with them. This attitude can come back to hurt you later on if you need to call upon them for a favour; the favour may be met with resistance or little interest.
7. Be more organised. 
 A pretty obvious one, but as you start to collect data, due diligence research and then move to a property purchase and ongoing management of it, you’ll collect lots of information. If your day job is in an office, you are probably pretty organised when it comes to paperwork, Microsoft Office files, and so forth. For those who do not work in such an environment, you need to become very savvy, very quickly, with data filing and admin. It sounds boring, but having everything organised and easily/quickly accessible is key. Some areas you can make more efficient are:
<ul>
<li>File naming conventions. Keep successive versions of your spread sheets, word documents, and pdfs logically named, and filed in the correct folders</li>
<li>Back everything up. Ideally you’ll have some kind of network-attached storage that can duplicate every ‘save now’ in a document, on a second drive or space, so that data loss is avoided</li>
<li>We still live in a print world, sadly. This means you’ll get lots of bills, notices, and contracts in print. Ensure you keep these filed in logical lever arch folders, or invest in a filing cabinet and employ a consistent filing convention to ensure nothing is misplaced.</li>
<li>Keep a log of all expenses close to where you keep the receipts for them.</li>
<li>Generally speaking, keep everything that any key party (lenders, solicitors, estate agents and so on) sends you, even if you don’t think you’ll need it later on.</li>
</ul>
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" href="https://propertyspectator.blogspot.com.au/">Property Spectator.</a>
 
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cmcevoy-Go82SmsJA9

Seven smart moves when buying your first investment property: Cameron McEvoy

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While credit rating agency Fitch is forecasting Australian property prices to <a target="_blank" href="https://www.propertyobserver.com.au/residential/stable-outlook-for-australian-housing-market-but-no-price-gains-in-2013-fitch/2013010958671?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">go nowhere in 2013 </a>as the market continues to stabilise, Australian commentators and analysts are more expectant of some gain over the next 12 months.
The strongest outlooks are for Perth and Darwin, both beneficiaries of the mining investment boom, while the prospects for Sydney and Brisbane are also sound.
As for the other capital cities, flat markets are in prospect with analysts particularly bearish about Melbourne and Hobart.
Fairfax-owned Australian Property Monitors (APM) is forecasting prices to rise a modest 3% to 5% over the course of the year, but with quite different outlooks for the major capital cities.
APM is most bullish about Perth, tipping property prices to rise by between 5% and 7% over the year, with a similar outlook for the smaller Darwin market.
There are modest property price gains tipped for Sydney, following a decade of near stagnation, with APM expecting rises of between 3% and 5% ,with similar expectations for Brisbane.
At best, Melbourne and Canberra will experience gains of 3%, says APM, while no change is expected in Adelaide and Hobart.
Both BIS Shrapnel and Hotspotting.com.au’s Terry Ryder are bullish about Perth and Darwin, with Ryder expecting double-digit growth in both these cities. Ryder also expects Sydney and Brisbane to perform strongly.
For both BIS Shrapnel and Ryder, Melbourne, Canberra and Hobart are the clear weak spots.
Property price forecasts for 2013
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="154" valign="top">
 
</td>
<td width="154" valign="top">
APM
</td>
<td width="154" valign="top">
BIS Shrapnel
</td>
<td width="154" valign="top">
Terry Ryder
</td>
</tr>
<tr>
<td width="154" valign="top">
Sydney
</td>
<td width="154" valign="top">
3% - 5%
</td>
<td width="154" valign="top">
2.7%
</td>
<td width="154" valign="top">
5% - 10%
</td>
</tr>
<tr>
<td width="154" valign="top">
Melbourne
</td>
<td width="154" valign="top">
0%  - 3%
</td>
<td width="154" valign="top">
0.9%
</td>
<td width="154" valign="top">
-5%
</td>
</tr>
<tr>
<td width="154" valign="top">
Perth
</td>
<td width="154" valign="top">
5% - 7%
</td>
<td width="154" valign="top">
6.4%
</td>
<td width="154" valign="top">
10%+
</td>
</tr>
<tr>
<td width="154" valign="top">
Brisbane
</td>
<td width="154" valign="top">
3%  - 5%
</td>
<td width="154" valign="top">
3.9%
</td>
<td width="154" valign="top">
5% - 10%
</td>
</tr>
<tr>
<td width="154" valign="top">
Adelaide
</td>
<td width="154" valign="top">
0%
</td>
<td width="154" valign="top">
1.3%
</td>
<td width="154" valign="top">
0% - 5%
</td>
</tr>
<tr>
<td width="154" valign="top">
Darwin
</td>
<td width="154" valign="top">
5% - 7%
</td>
<td width="154" valign="top">
5.3%
</td>
<td width="154" valign="top">
10%+
</td>
</tr>
<tr>
<td width="154" valign="top">
Hobart
</td>
<td width="154" valign="top">
0%
</td>
<td width="154" valign="top">
-1.1%
</td>
<td width="154" valign="top">
-5%
</td>
</tr>
<tr>
<td width="154" valign="top">
Canberra
</td>
<td width="154" valign="top">
0 – 3%
</td>
<td width="154" valign="top">
-0.8%
</td>
<td width="154" valign="top">
0%
</td>
</tr>
</tbody></table>
APM bases its relatively positive outlook following interest rates being cut to near record lows last year, with chief economist Andrew Wilson expecting prices to build on the modest gains achieved in 2012.
He tips Perth to be the top performer based on record levels of immigration, housing shortages and soaring rents, as well as its exposure to the relative strength of mining sector.
While Ryder is tipping property price growth in excess of 10% for Perth and Darwin, he believes the best opportunities in 2013 will be in regional markets – to find out where, watch the Property Observer webinar: <a target="_blank" href="/news">Regions versus capital cities - where to invest in 2013?</a>


<hr class="system-pagebreak">
BIS Shrapnel as part of of forecasts prepared for QBE LMI's 2012 - 2015 Housing Outlook report says affordability in Perth and Brisbane improved substantially in 2011-12 with a "rapidly rising dwelling deficiency is developing".
"In Darwin, meanwhile, median house price growth of 10.7% was registered in 2011-12 – driven by substantial levels of investment in mining and resource capacity leading to significant income and migration growth.
"Falls in vacancy rates are also expected to continue across all three cities, placing upward pressure on both rents and dwelling prices, attracting demand from investors in particular," says BIS Shrapnel.
News Limited national economics editor Jessica Irvine warns those looking to dip into the property market in 2013 must be aware of spruikers claiming “the next boom in property prices is about to get underway”.
Irvine says while spruikers may talk up mortgage rates being low and that affordability has improved, a “more sober look at the Australian property market reveals prices have hit a wall, although remain historically expensive”.
This is the partly the <a target="_blank" href="https://www.propertyobserver.com.au/residential/australian-housing-still-least-affordable-in-the-world-despite-recent-improvements-fitch/2013010958698?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">argument made by Fitch</a>, in its forecast of <a target="_blank" href="https://www.propertyobserver.com.au/residential/stable-outlook-for-australian-housing-market-but-no-price-gains-in-2013-fitch/2013010958671?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">no movement</a> in Australian house prices in 2013.
Irvine points at that in the boom years from 2003-04 and 2009-10, property prices grew by 50% to 60% in Melbourne, Brisbane and Adelaide and by a “whopping” 10% in Perth.
But now the property boom is “well and truly at an end”.
“Over the past five years, home prices have clocked average annual growth of just 1.9%. You would have been better with your money in the bank,” she says.
Irvine alludes to the fact that the new generation of home buyers need their parents help to acquire their first property while those already on the property ladder are using lower interest rates to pay down debt.
“And so it's hard to see property prices rising much this year, unless something radically new happened to boost people's capacity to borrow,” she says. 
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Australian analysts tip modest property price gains in 2013 led by Perth, depending on who you ask 

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Demand is growing for more affordable small properties and tiny CBD studio apartments, but obtaining financing can be harder, according to Aussie Home Loans founder John Symond.
“For all the affordability that a small apartment provides, however, there is a catch,” says Symond in his latest Aussie blog.
“There are often strict lending rules around studios that prevent those without sizeable deposits from buying in.
“Buyers will typically require a deposit upwards of 20% to buy an apartment with less than 50 square metres in floor area, and lenders mortgage insurance (LMI) is often more expensive as well,” he says.
In August last year Property Observer provided readers with a <a target="_blank" href="https://www.propertyobserver.com.au/residential/top-10-cheapest-studios-apartments-in-the-melbourne-cbd-starting-frrom-%24145000/2012081255753">top 10 list of studio apartments</a> in the Melbourne CBD starting from a 17-square-metre apartment on Flinders Street, which sold to an investor for $145,000 last year.
Property Observer noted <a href="https://www.propertyobserver.com.au/new-south-wales/sydney-cbd-s-10-cheapest-studio-apartments-starting-from-%24255000/2012073155743" target="_blank">Sydney studio apartments were proving tempting to investors and home buyers  </a>given both buying classes were being affected by rising rents across the city. We listed 10 of the cheapest, starting with a studio on Dixon Street in Chinatown at $255,000, with eight of them now sold.
Also last year, we wrote about <a target="_blank" href="/news">pocket-sized inner Sydney listings</a>, including what is believed to be Sydney’s smallest home, a terraced house measuring just 27 square metres built in a former alleyway on Evans Street in Rozelle.
Symond mentions the tiny Bondi Beach flat dubbed the “bolt-house” measuring just 16 square metres, which <a href="https://www.propertyobserver.com.au/new-south-wales/old-fashioned-studio-fails-to-ride-the-bondi-beach-property-wave/2012091156502" target="_blank">Property Observer wrote about October</a>. The property failed to attract a single bid at auction, coming with $270,000 hopes, eventually selling privately for $245,000.
Symond says small properties and tiny studio apartments have become increasingly popular in the last few years “as home buyers seek affordability in cities with escalating property prices”.
“Typically a studio apartment – defined as ‘any unit that does not have a wall separating the bedroom from the living areas / kitchen’ – will require a floor area no less than 40 square metres and have a maximum loan to value ratio of 60%."
Of the 10 cheapest Melbourne CBD apartments, which we wrote about in August last year, two remain up for sale:
<a target="_blank" href="https://www.realestate.com.au/property-studio-vic-melbourne-105215032">210/600 Little Bourke Street</a>
$148,000
Unit 210 at 600 Little Bourke Street is a serviced apartment currently run by Hotel Ibis, which has the contract until 2018. The 25-square-metre apartment has a modest guaranteed income of $650 a month, and agent Lilian Yoon from OzAsia Real Estate is unsure of the outgoings for the property, although she says they would be minimal. The unit, which has no cooking facilities, has been on the market for years.
<a target="_blank" href="https://www.realestate.com.au/property-studio-vic-melbourne-110840411">417B/268 Flinders Street</a>
$165,000
This studio apartment is in the Home @ Flinders building opposite Flinders Street Station and rents for $310 a week. It’s 15 square metres and has outgoings of more than $4000 a year. It includes a kitchenette and a bathroom, and there’s room to walk.
We’ve also tracked down a few more tiny apartments currently up for sale:
<a href="https://www.realestate.com.au/property-studio-vic-melbourne-112356715">1306/268 Flinders Street</a>
<a href="https://www.realestate.com.au/property-studio-vic-melbourne-112356715"></a>$225,000
This studio apartment - in the same building as the previous apartment (417B)- is being sold by Robert Eggers of Dingle Partners - Melbourne. 
<a href="https://www.realestate.com.au/property-apartment-vic-melbourne-111726639" target="_blank">57/546 Flinders Street</a>
$150,000 – $170,000
This apartment is situated across the river from Crown casino, and close to Southern Cross train station. It is currently leased at $240 per week. It is being sold by Dien Tran of Ray White CBD.
Of the 10 Sydney studio apartments we wrote about in August last year, just two remain available for purchase. These are:
$265,000
<a rel="nofollow" href="https://www.realestate.com.au/property-serviced+apartment-nsw-sydney-106659143" target="_blank">318/8 Dixon Street</a>
It’s a 28 square metre studio on level three of the building. The property currently earns $14,502 per year in rent from Quest Apartments, which is set to increase to $15,082 next year. That works out to about $280 a week. Agent David Tsang from Friendly Properties says outgoings would total around $250 a quarter.
$275,000
<a rel="nofollow" href="https://www.realestate.com.au/property-studio-nsw-sydney-107037659" target="_blank">94/8 Dixon Street</a> <a rel="nofollow" target="_blank" href="https://www.realestate.com.au/property-studio-nsw-sydney-107037659"></a>
In the same building again here, but back down to 25 square metres. It’s a similar deal to the cheapest on the list but it earns slightly less rent at $400 a week. Total quarterly outgoings are $1,296. It’s being sold by Alan Cheung from LJ Hooker Chinatown who says the vendor for apartment 124 is just slightly more motivated.
For information on <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-investing-outside-the-square">out-of-the-box property investments, download our free eBook.</a>
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Demand rising for tiny studio apartments, but mortgage hurdles higher: Aussie John Symond

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Many people reading this column might be relaxing at a beachside getaway, a wine region, a great fishing spot or perhaps in a heritage town.
Over summer many people will be enjoying the state’s delightful holiday spots, particularly along the coast of Western Australia. Places like Dunsborough, Denmark, Dongara, Lancelin, Cervantes, Albany and beyond. Over the years many people have bought holiday homes in these places.
Today, holiday homes are being purchased as far apart as Exmouth and Esperance. It all depends on people’s budget, allowable travel time and their strategy behind the purchase.
The ideal holiday home for most people is one that is always available for short stays, but this is a costly option for people who need to take out a mortgage on a second home. They are not the inexpensive country option they once were, particularly on the coast.
However, these days an increasing number of buyers are choosing to combine the purchase of a holiday home with long-term investment plans. This is possible because many favoured holiday locations have developed viable rental markets with local tenants leasing properties for extended periods, often beyond the summer holiday.
Some of these places might include Albany, Harvey, Busselton, Margaret River, Gin Gin, York  and Cervantes in WA, for example.
Homes initially purchased as investments in these locations can later be used for holiday purposes.
In places where demand for rental accommodation is seasonal, such as fishing towns, windsurfing spots and agricultural areas, there is a greater likelihood of vacancies for rental properties outside the peak holiday or industry period. However, the rentals are normally much higher in properties leased for short periods, and this can partly offset the loss of rental income when the place is vacant.
The benefit of this strategy is that the owner can then take advantage of the seasonal rental market by using the property off season.
Another option for holiday home buyers is to purchase a unit in a resort development. Some resort operators will guarantee a rental income for a fixed period. In many cases the purchaser is acquiring a share of a managed investment scheme, which includes a stake in the total income and expenses incurred by the resort.
Either way, the most important consideration when buying a holiday home is, as far as possible, to set aside the emotional reactions and approach the purchase with a clear understanding of the real value of the property, its ongoing costs and the likely rental income.
If you are travelling around the state this holiday season and maybe thinking of a holiday home investment, why not drop into the nearest REIWA agency office and talk to the staff about opportunities?
David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx">reiwa.com</a>.
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Where to invest in a holiday property in WA

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Each year most Australian newspapers publish the results of a public opinion poll inquiring into the relative social standing of various professions and occupations. Ambulance drivers, firefighters and nurses usually vie for top spot and teachers usually do well. Property developers are not offered to the public for rating, but the treatment meted out to real-estate agents – 36th of 40 in the 2008 survey – would suggest that property developers would appear near the foot of the list. Would that be fair?
No, according to Gerry, because the voters in the poll don’t understand the developer’s situation. Everybody learns sooner or later that the enjoyment of one’s property rights is largely dependent on what others do in the neighbourhood. Therefore sensitivity will always surround possible changes in land use, local traffic, streetscape, noise, smells and so on. Their property is important to people for a very wide range of often conflicting reasons, so shared understandings and evaluations of change rarely arise naturally and, for good reasons, are hard to create. On top of all that, the developer is looking for a profit at a rate sufficient to compensate for the risk he or she is running and to cover the occasional loss-making venture. This is rarely a popular motive among the neighbouring onlookers who know little or nothing of the risks the developer runs and who fear they may be the source of any profit that is made rather than among the recipients or beneficiaries of it.
In short, before the developer even arrives the jobsite contains all the makings of heated conflict: angry words and contemptuous dismissals, lengthy vendettas and furious dialogues where nobody is listening. It shouldn’t surprise anybody then if fears and hopes of all shapes and colours gather around a vacant building site and the developer is cast as the devil.
Second, he claims the public forgets how much the activities of property developers are constrained by limitations imposed by our system of property holding, by local authorities’ rules and whims, our long-standing neglect of urban planning and the control that must be ceded to the banks to obtain capital funding. ‘Today’s city is not an accident. Its form is usually unintentional but it is not accidental. It is the product of decisions made for single, separate purposes, whose interrelationships and side effects have not been fully considered.’
 Councils don’t decree that their cities should be beautiful, let alone adventurous or stimulating. For most of Gerry’s early career they limited themselves to ruling out what they wouldn’t stand for because that is easier to do; and that negative perspective has survived quite well the change to basing planning on ‘desired futures’. Positive civic thinking remains at a discount; and when it manages to make an appearance it still faces an uphill battle to convince Adelaide’s habitual nay-sayers and timid safety-firsters. Banks and other finance sources don’t fund developers to build attractive cities, they provide finance so their clients can make a profit and the bank can collect fees and interest income. Anything else is secondary and a developer who thinks differently usually knows better than to say so too often or too loudly.
The beautiful and well-functioning cities that people say they want only become likely when governments provide some form of protective cover and creative input, allowing or perhaps requiring those aesthetic, social and other non-monetary considerations to feature in the project’s objectives without knocking the profit and loss accounts too far out of kilter with the financier’s expectations.
 
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Gerry agrees that some forms of development-related corruption must occur or have occurred in Adelaide. He says there is no way of knowing whether it is as highly developed as in Queensland or New South Wales, but believes only the naive would suppose SA is free of what is occurring elsewhere. There have been decisions taken and moves made in years gone by – he won’t even hint at details – that he can’t explain unless some form of favouritism based probably on covert inducement or behind-the-scenes political pressure was involved. He mentions some counter measures that could be introduced but cautions that they would need to be carefully designed and policed or they would simply be evaded by those who didn’t mind breaking the law and thought it might be worth their while to do so.
The property profession, he claims, is not really so different from any other. It is certainly simple-minded, he says, to blame some imagined special feature of the property industry. If anything, it may already be more open to questioning and investigation because of the highly visible nature of its main business, development. The root of the problem, he argues, is the high cost of politicking in modern, media-rich societies. To gain or hold office politicians need big bankrolls, and are forced to find something to sell without being allowed to sell the things that set them apart: the power and influence that lies in their hands. He sees the party donations system as all sizzle and no sausage: an expensive but illusionary exercise that gives the politicians their funding, the critics the proof of wrongdoing they wanted and the donors little if anything at all. Reformers who go on about banning party contributions from developers have got hold of the wrong end of the stick and, in effect, are blaming the victims. What about banks, he asks, what about pharmaceutical companies, poker machine manufacturers, liquor industry interests, even unions? Why should all the other big spending groups be spared the same scrutiny and controls?
Gerry suggests only public funding of election campaigns and tough, really tough, controls of other giving will begin to clean up the scene. Graft for simple personal gain is, he believes, not likely to be a big factor and is also the easiest to uncover and prosecute. He gives the Norm Gallagher case as an instance of this. Tackling the suspicion of corruption in contexts where the evidence can be easily hidden is a distraction, he says: tackle corrupt actions by forcing them to leave their tracks on open ground.
 
<img src="/images/stories/2012/12/buildingalways.jpg" alt="buildingalways" style="margin: 5px; float: left;" height="219" width="150">This is an excerpt from <a href="https://www.wakefieldpress.com.au/product.php?productid=979" target="_blank">Building Always Building: The Life and Times of Gerry Karidis</a>
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Why developers are not the devil in property disputes: Gerry Karidis

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Are you ready to undertake a renovation, buy or sell in 2013? Are you looking for property inspiration? Here are some books to take with you to the beach or read on your balcony as summer evenings linger. 
<a target="_blank" href="https://www.propertyobserver.com.au/trends/summer-reading-from-property-investment-tips-to-managing-tenants/2012122358620">And don't miss part one of our summer reads list. </a>
<a href="https://au.wiley.com/WileyCDA/WileyTitle/productCd-1118319273" target="_blank"><img src="/images/stories/2013/01/janessbook1.jpg" style="margin: 5px; float: left;" width="100"></a>
Jane Slack-Smith reminds property investors <a target="_blank" href="https://www.propertyobserver.com.au/news/why-you-need-to-do-your-demograpahic-research-before-writing-that-buyer-s-cheque-jane-slack-smith/2012073055771">that they need to do their demographic research </a>before writing that buyer's cheque in her book <a href="https://yourpropertysuccess.com.au/">Your Property Success with Renovation</a> published by John Wiley &amp; Sons.
 
 
 
 
 
<img style="margin: 5px; float: left;" src="/images/stories/2012/12/buildingalways.jpg" alt="buildingalways" height="146" width="100"> 
 
Gerry Karidis <a href="https://www.propertyobserver.com.au/developments/why-developers-are-not-the-devil-in-property-disputes-gerry-karidis/2013011058604?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=developments" target="_blank">defends the property development profession</a> in his book <a href="https://www.wakefieldpress.com.au/product.php?productid=979" target="_blank">Building Always Building: The Life and Times of Gerry Karidis</a>
 
 
 
 
<img src="/images/stories/2013/01/journeysbook.jpg" style="margin: 5px; float: left;"> 
 
 Property investor Swarnie Condon talks <a href="https://www.propertyobserver.com.au/residential/our-first-resort-investment-was-not-all-smooth-sailing/2011062450600" target="_blank">about her first resort investment</a>, which was not all smooth sailing, in the book <a target="_blank" title="Journeys Along the Property Path" href="https://www.ipip.com.au">Journeys Along the Property Path: 12 real life stories of 12 property investors</a>, published by Inspirational People in Property. The book is aligned with Club Cares and is donating $10 from the sale of every book, hoping to sell 8,000 books and donate $80,000. So far $4,610 has been raised.
 
<img style="margin: 5px; float: left;" src="/images/stories/2013/01/lomasbook.jpg">
 
 
Margaret Lomas advises<a target="_blank" href="https://www.propertyobserver.com.au/residential/property-investment-is-not-a-get-rich-quick-scheme-margaret-lomas/2011083051342"> investors look at property as a long game</a>, rather than a get-rich-quick scheme, in her book <a target="_blank" href="https://www.propertybooks.com.au/investing_in_the_right_property_now!_by_margaret_lomas">Investing in the Right Property Now</a>
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From renovation to investment: Summer reading

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Retail sales rose only 0.1% in November, below expectations, but economists and retail property analysts are reasonably confident of a good year for retailers and retail property landlords in 2013.
Shopping centre owners and retail landlords with a high proportion of service-orientated tenants, such as cafes, restaurants and travel, and entertainment operators should be well placed, and there is also expected to be a continued expansion of overseas retailers into Australia.
In addition, the ABS figures suggest the larger chain stores and supermarkets are continuing to perform well, (though department stores are still struggling).
Michael Bate, Colliers International head of retail, is optimistic about 2013, after the sector underwent what he calls “significant structural change” in 2012 following two decades of outperforming the commercial property sector as a whole.
“While retailers will continue to review their store portfolios with a view to improving performance, most domestic retailers have now completed their network rationalisations and we anticipate some will look at expansion at 2013,” he says.
He says the retail sector will be influenced by the impact of interest rate cuts on household disposable income, the level and intensity of price discounting by retailers and the management of operating costs by both property owners and retailers.
While figures from the all-important Christmas retail period are not yet available, Bate says Colliers expects a modest improvement in retail spending in 2013, with “household incomes to be supported by rate cuts, cushioning the impact of slower wages growth and higher taxes”.
“Retail spending remains below long-term averages in Australia, but the volatility experienced over the past six months has now moderated,” he says.
Nora Farren, Colliers International research director and author of the latest Colliers International retail research and forecast report, says that from an investment perspective, retail assets remain appealing.
“High quality, dominant shopping centres are still performing well despite the slowdown in retail turnover growth.
“They continue to be viewed as a defensive investment class. Retail has also been the beneficiary of capital inflows from overseas investors. The high relative yield spread (due to low bond yields) combined with the global appetite for low-risk investments are supporting this demand. Foreign investors have been active in the retail property sector, with several major sales involving offshore institutional investors,” she says.
She says “experience with convenience” will keep consumers coming back to shopping centres.
“Consumers are spending more on experiences such as travel and at cafes and restaurants. As a result, we are seeing increased focus on entertainment, lifestyle and food precincts in shopping centres, as perceptions change as to what attracts consumers to a centre, and keeps them there for longer,” says Farren.
She also expects the influx of overseas retailers to Australia continue “apace next year”.
“This charge is being led by US brands, but retailers from Europe and increasingly Asia are looking to expand into Australia.
“While the entrance of offshore retailers has some domestic retailers shaking in their boots, the arrival and positive view of our market potential should be a comfort to our industry. Positives can be taken from the renewed interest in retail that these new brands generate.”
 
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However, it is likely to be a continued struggle for many smaller retailers, especially those selling discretionary items that can be bought more cheaply online.
Landlords with retail investment in the mining states appear well-placed, with WA annual retail growth to November standing at 8.6% and Queensland at 4.8% per annum, compared with NSW managing just 2.2% annual retail sales growth and Victoria. 1.2%.
At face value, the November ABS figures were a disappointment, with the market tipping a 0.3% rise in November and earlier rate cuts in May and June totalling 75 basis points appearing to have little impact on consumer spending.
With October's flat outcome left unrevised, the annual pace of retail sales growth moderated further to 2.9%.
Westpac economist Elliot Clarke points out that in trend terms, retail sales are now growing at “an insipid 0.05% per month – a 0.6% annualised rate”.
He also points out that all the growth in retail sales in November was solely due to a 1.2% increase in “takeaway activity” with cafe and restaurant activity falling 0.4%.
“Arguably, this is further evidence of consumers economising, favouring eating at home over eating out. Basic food retailing was flat, possibly due to falling fruit and vegetable prices,” says Clarke.
Department store sales fell for a third successive month by 0.4%, clothing &amp; footwear experienced its fifth consecutive decline (–0.6%)  and household goods retailing declined by a further 0.9%.
Clarke concludes that retail sales growth will again be weak in December and in 2013.
However,  CommSec economist Craig James notes that sales by “larger retailers” rose by 0.5% over November and “soared to record highs”, with larger retailers now accounting for a record 64.8% of all retail trade.
<img src="/images/stories/2013/01/absjan10.gif">
The large retailers segment refers to 500 of the biggest retailers in surveyed by the ABS each month, whose results are not weighted due to their size, unlike the 2,750 'smaller' retail businesses that are weighted.
The ABS does not provide details of which businesses are included in this category, but says the results indicate that some of the larger business chains such as supermarkets are doing well, while others (notably department stores) are struggling.
 
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According to James, this could indicate that larger retailers are continuing to take business from small business, but may also indicate the growing tendency to purchase goods online as the major online businesses are in the large retailer sector.
While the mystery remains as to what impact online sales is having on retailing figures, James says there is “good reason to suspect that retail spending is stronger than the top-level data suggests. In fact, much closer to ‘normal”.
“I think 2013 will be a better year for retailers,” James tells Property Observer.
While there will be further pressure on retailer margins, he says he is “reasonably positively” about 2013 provided there are no major overseas disasters.
Factors in favour of a better year for retailing include low unemployment, improved housing affordability and lower interest rates meaning consumers can be a little more confident, says James.
"Consumers will still continue to look for bargains and compare store prices with what is available online."
He says service-orientated retailers (cafes, restaurants, travel and entertainment providers) should continue to do well.
ANZ economists Riki Polygenis and Justin Fabo also note the better performance of larger retailers  "trending higher in contrast to the broadly flat profile for small retailers’ sales over the past 18 months"
They say that recent weakness in retail sales appears "heavily concentrated among smaller retailers, with sales well down from their peak in June".
"These retailers tend to have less flexibility to maintain sales via discounting, marketing and other strategies and a higher share of their sales are likely to be discretionary,says Polygenis and Fabo.
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