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

Joel Robinson

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

Three 82 brings boutique four-bedroom townhome collection to Ivanhoe

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

<html><body>
The Gold Coast apartment market remains deeply troubled with developers reporting only 19 high-rise apartment sales over the November quarter, a 70% plunge from sales figure a year ago, according to the latest Midwood Report.
Quarterly sales figures were more than double the paltry eight sales recorded in the August quarter, but just a fraction of the 73 sales recorded in November quarter of 2011.
In total there are 705 high-rise apartments available for purchase on the Gold Coast, which at current sales rates would take close to a decade to clear.
The Midwood report classifies high-rise sales as those developments of 40 storeys and higher.
All but three of the sales over the quarter were in the Brookfield Multiplex-constructed $700 million Hilton Surfers Paradise (pictured below), following prices being reduced by up to a third.
<img alt="hiltonsurfers" height="346" width="470" src="/images/stories/2012/12/hiltonsurfers.jpg">
There were no sales reported in the two other major high-rise apartments – Niecon’s Oracle and Juniper’s Soul, both of which are in the hands of receivers.
The Midwood report records just 45 total unit sales on the Gold Coast over the November quarter, compared with 107 in the corresponding quarter last year.
Putting this in context, there were 386 apartment sales recorded in Brisbane over the same period, more than three times more than the 110 apartments sold a year ago.
In the Hilton, prices ranged from $495,000 for a two-bedroom, one-bathroom apartment over 76 square metres to $1.63 million for a two-bedroom, two bath apartment over 118 square metres.
According to 360 Project Marketing, which is marketing the Hilton apartments, buyers have snapped up more than $15 million in apartments during the past three months, following a recent reduction in prices of up to 34%.
Marketing director Trent Milburn of 360 Project  says the new price tags have stimulated buyer activity across the board.
The project also has Foreign Investment Review Board (FIRB) approval, and Milburn says many of the buyers have come from south-east Asia.
“A month ago a foreign buyer could have purchased an apartment in the development for under $500,000, two months ago they could have bought for under $450,000 – now we’re at $525,000 and headed for $600,000.
Since January, 65 apartments have sold at prices between $435,000 and $2.3 million, with the final sub-penthouse currently on the market for $3.45 million.


<hr class="system-pagebreak">
Out of the 410 apartments across the Boulevard and Orchid towers in the Hilton development, 134 remain up for sale.
Midwood reports two sales – one each in the Oceana and Solitaire Towers – as part of the Element Burleigh Beach project being developed by Amalgamated Property Group and marketed by CBRE, which is nearly sold out.
A further sale was recorded at Southport Central III, the Lindaning Pty Ltd/Colliers International development in the hands of receivers, with 87 out of 258 units still available for sale.
Report author Bill Morris notes that high-rise sales “continue to be sluggish”, with only the Brookfield Multiplex/360 Project marketing Hilton recording a reasonable volume, having re-introduced 109 apartments when contracts had fallen over, and discounted them by 30%.
“Oracle and Soul are only recently in receivership and the liquidators have yet to mount a solid marketing campaign and price list,” says Morris.
Morris notes that a new project, Broadbeach Central has been announced by Amalgamated Property Group and Morris Property Group on Main Street Broadbeach, however off-the-plan sales have yet to commence.
There was little for investors to cheer about either with rents unchanged across both units and houses.
Median weekly rents for one-bedroom apartments are unchanged from two years at $290 while the median two-bedroom apartment rent is up slightly from $340 in 2010 to $350 currently.
The Gold Coast market has been hit by both a slowdown in interstate and overseas migration into Queensland over the last few years with regional population growth slowing from 3.4% in 2001 to 2.1% in 2011.
Overseas migration numbers have nearly halved from around 60,000 per year in 2008-09 to just over 30,000 in 2010-11 while interstate migration has fallen from around 27,000 in 2007-08 to less than 10,000 in 2010-11.
The Midwood report notes that he recent downturn in Queensland net overseas migration is clearly a result of the lack of employment opportunity.
“With Queensland’s two biggest employers, construction and hospitality industries in the worst position we have seen since pre-GFC, migrants are choosing to settle elsewhere,” says the Midwood report.
The Midwood report shows that the number of apartments approved for development increased over the six months to June 2012 from 450 to 490, but numbers have been trending down since the GFC, when there were more than 1,800 apartments approved in the second half of 2007.
 
</body></html>

lschlesinger-FZcF9M3vE6

Heavily discounted Hilton Surfers Paradise the only notable Gold Coast high-rise seller in November quarter: Midwood 

<html><body>
It has been another comparatively weak year for the residential housing market, with data to November indicating that capital city home values have fallen by 0.1% over the year.
<h3>What to expect in 2013</h3>
As we enter 2013, Australia’s housing markets are likely to remain relatively flat. However, in some sectors we may see capital gain increases over the coming year.
As per the current status quo, there is likely to be a continued variance in performances from city-to- city and region-to-region. Property markets in Sydney, Brisbane, Perth and Darwin, where home values have corrected more than the other capital cities, may be the markets to watch for improving conditions.
We are already seeing signs of a recovery in these markets, particularly in Perth and Darwin. On the other hand, markets such as in Melbourne, where capital gains have had a strong run, are more likely to see weaker conditions.
The number of properties being advertised for sale across Melbourne has ramped up very quickly; new listings have remained fairly constant. However, the total number of homes available for sale simply hasn’t been absorbed due to a slowing rate of sale.
Due to the high capital gains and a comparatively weak rental market, Melbourne rental yields are also comparatively low. There seems to be a likelihood of further interest rate cuts in the near future by the RBA, especially in light of the revelations of a slowing Chinese economy and a substantial decline in commodity prices and the likelihood of much slower economic growth over the third quarter of 2012.
The rising rental costs and lower interest rates may, in certain areas, result in some renters now looking to enter into home ownership. On the other hand, consumer caution persists and consumers broadly continue to prefer paying down debt and shun new debt, which is likely to restrict any significant improvement borne through lower interest rates.
The big wild card remains the global economy. The likelihood of further economic uncertainty is high, which will continue to dampen consumer confidence and the willingness to spend on high commitment decisions like purchasing a property.
As a result, any significant growth in values across the national housing market would appear to be some way off. The recent improvement in sales transactions will be vital to a sustainable return to value growth across the country. However, it will need to be maintained for a number of months before there is evidence to proclaim a recovery.
Click to enlarge
<a href="/images/stories/2012/12/rpdec13.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/2012/12/rpdec13thumb.gif"></a>
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
<h3>The state of play in 2012</h3>
This year delivered weaker market conditions for the residential housing market, with data to November indicating that capital city home values fell by -0.1% over the year.
<ul>
<li>House values fell by -0.4%</li>
<li>Unit values increased by 1.6%</li>
<li>Over the first 11 months of 2011 capital city home values fell by -3.8%</li>
<li>House values were down -4.0%</li>
<li>Unit values declined by -2.6%</li>
</ul>
<h3>How did 2011 compare with 2012?</h3>
There are a number of reasons for the property market’s lacklustre performance in 2012. These include: growth in housing credit has been extremely limited; low levels of consumer confidence; affordability barriers due to a higher mortgage rate environment.
Although research confirmed that the property market was weak over the past 12 months, there are select areas around the country that have well and truly outperformed others.
The following lists the top performing suburbs around Australia over the 12 months to September 2011. Specifically, the analysis will look at:
<ul>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-2">Highest median sale prices</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-3">Most affordable median sale prices</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-4">Most affordable median sale prices within 10km of the capital city</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-5">Highest indicative gross rental yields</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-6">Highest indicative gross rental yields within 10km of the capital city</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-7">Greatest increase in median selling price over the past 12 months</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-8">Greatest increase in median selling price over the past five years</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-9">Highest median weekly advertised rental rates</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-10">Most affordable median weekly advertised rental rate</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-11">Highest gross value of sales</a></li>
</ul>
 
<hr class="system-pagebreak">
Highest median value
<img src="/images/stories/2012/12/rpdec18.gif">
<img src="/images/stories/2012/12/rpdec181.gif" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
Most affordable median value
<img src="/images/stories/2012/12/rpdec182.gif" width="470">
<img src="/images/stories/2012/12/rpdec183.gif" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
Most affordable median sale prices within 10km of the capital city
<img src="/images/stories/2012/12/rpdec184.jpg" width="470">
<img src="/images/stories/2012/12/rpdec185.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
<h2> </h2>
<h2>Highest indicative gross rental yields</h2>
<img src="/images/stories/2012/12/rpdec186.jpg" width="470">
<img src="/images/stories/2012/12/rpdec187.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
<hr class="system-pagebreak">
Highest indicative gross rental yields within 10km of the capital city
<img src="/images/stories/2012/12/rpdec188.jpg" width="470">
<img src="/images/stories/2012/12/rpdec189.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
Greatest increase in median selling price over the past 12 months
<img src="/images/stories/2012/12/rpdec1810.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1811.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
Greatest increase in median selling price over the past five years
<img src="/images/stories/2012/12/rpdec1812.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1813.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
<h2>Highest median weekly advertised rental rates</h2>
<img src="/images/stories/2012/12/rpdec1814.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1815.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
<h2>Most affordable median weekly advertised rental rate</h2>
<img src="/images/stories/2012/12/rpdec1816.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1817.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
Highest gross value of sales
<img src="/images/stories/2012/12/rpdec1818.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1819.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
</body></html>

ckusher-ujnxiKuFQs

The property suburb winners and losers of 2012: Cameron Kusher

<html><body>
An interest rate cut always sparks discussions about whether a borrower should refinance their home loan.
There is a lot of commentary after the RBA lowers the cash rate on whether home loan providers will pass on the full rate cut and how you might be able to get a better deal elsewhere. Whilst it is prudent to always know the interest rates on your home loan and that it is competitive to the market, the act of refinancing to continually chase a better rate can potentially be as damaging as it can be a benefit. If by refinancing you can clearly identify the immediate and long-terms benefits, then you owe it to yourself and your family to do so. The important thing is to be able to identify the benefits. One of the aspects of refinancing that tends to get over looked is the term of the loan. Let me explain. If you borrow $300,000 over a 30-year term at 6%, then your monthly repayments will be approximately $1,789.70 per month. By sticking to these repayments after three years your outstanding balance will be $288,252. If you are then tempted to refinance at a rate of say 5.7% and refinance the $288,252 and your loan is be written over 30 years and the monthly repayment will be $1,673.02pm. This will provide you with a nice saving of $116.68 a month, which could be a short-term benefit. However, on closer examination your home loan may now run 33 years. Let’s see how the short-term saving are reflected over time. Original loan – $300,000
30 years at $1,789.70pm  - $644,292
 
Refinance balance $288,252 loan after 3 years 
3 years at $1,789.70pm     - $64,429 30 years at $1,673.02pm   - $602,287                                                        - $666,716
By refinancing you could end up paying a further $22,424 over the life of the loan. There are a couple of important points to note when you are looking to refinance, and don’t be afraid to ask your home loan manager some questions.
<ol>
<li>What are the short term benefits and savings in refinancing?</li>
<li>How will that impact your loan in the long term?</li>
<li>Does the loan have to be written over 30 years?</li>
<li>If you continue to make the same repayments as you are now with a lower interest rate what impact will that have on the term of the loan</li>
</ol>There are some great home loan calculators you can play around with to allow you to obtain a greater insight into the short- and long-term benefits of refinancing Here is a link to the intouch –<a target="_blank" href="https://www.intouchhomeloans.com.au/calculatorsV2/remainingbalance">Remaining Balance Calculator</a> 
Paul Ryan is the founder and CEO of <a target="_blank" href="https://www.1800intouch.com.au/">intouch Finance and Property</a>.
</body></html>

pryan-PBBWBcF6VT

When refinancing, borrowers often overlook the term of the loan

<html><body>
There are many theories about what makes property prices move, but in the simplest terms, there are two factors that determine price: supply and demand.
These factors are themselves affected by a myriad of smaller factors such as availability of financing, affordability and tax laws, to name but three.
So, what is my opinion on the future for Australian residential property? Well, the markets have a tendency to make monkeys of those who try to make forecasts. I will not make a definitive forecast, but instead I’ll look at the fundamentals of the market and the probabilities in order to make investing decisions. 
Here are just a few of the fundamentals to consider: 
<ul>
<li>Demand: the population of Australia is predicted to increase dramatically to somewhere close to 30 million by 2040 </li>
</ul>
<ul>
<li>Immigration: the majority of immigrants will be heading for the capital cities, in particular to Sydney, Melbourne, Perth and south-east Queensland </li>
</ul>
<ul>
<li>Supply: statistics on this vary significantly, but it is generally acknowledged that Australia has an acute shortage of dwellings in certain areas and is not building enough new properties to house the expected numbers of immigrants; this is especially true in some landlocked city areas </li>
</ul>
<ul>
<li>Expected inflation: the target inflation rate of the RBA is 2 to 3%, although core inflation is a shade below the target at the time of writing </li>
</ul>
<ul>
<li>Demography: generally, the population is marrying later, living in smaller two-income households for longer, and the younger generation overwhelmingly want to live near the CBDs of cities </li>
</ul>
<ul>
<li>Population density: the increasing population will mean denser traffic, and rising fuel prices will increase the importance of transport links to the CBD. </li>
</ul>
My opinion is that property will continue to increase in value, but we are unlikely to see the relentless double-digit growth that we have seen in past decades. 
Crucially, credit growth is extremely unlikely to continue to expand at such a dizzying rate, and it seems to me that the RBA is likely to be far more hawkish on inflation than governing bodies of decades gone by. 
I also feel that the events of and fallout from the sub-prime crisis of 2007-2009 may force the world’s central banks to adopt a slightly different approach – rather than only focussing on controlling CPI and turning a blind eye to asset-price inflation, they may take a more active role in the controlling and deflation of asset bubbles. 
For these reasons, I rationalise that the most obvious proxy for future property market growth is likely to be the growth of household incomes: logically, the more people have to spend on their residence, over time the more they will spend (though immigration may make the growth rate slightly higher). 
Over the last couple of decades, median household income growth has been very strong, at times close to 6% per annum, but this has been partly fuelled by a significant increase in the number of two-income households. 
Looking forward, it is reasonable to believe that the rate of increase may be somewhat lower, perhaps nearer to 4-5%, and consequently median dwelling price growth is likely to be somewhat lower than it has in the past too. 
While this might be a reasonable assumption to make for a longer-term average, it is worth noting that in the short term property prices rarely move in such a uniform manner. 
History shows us that growth asset classes are likely to spend long periods with values either flat or falling before seeing a period of accelerated growth. As property investors, we want to remain invested through as many of these boom periods as we can. 
We would do well to remember that between 1960 and 1990, the average rate of inflation was 8%, wage growth was 9.7% and property growth was around 11% (thus outperforming the CPI by around 3%). 
Whether or not we have such high rates of inflation in the future remains to be seen, but we should note that the RBA’s target rate of inflation is now far lower than historical levels. 
Property price growth is not the conspiracy that many people think it is. Much of the increase in property values over time is simply driven by the inflationary nature of our economy. Things will cost more in the future than they do now. 
Unfortunately for the doomsayers, I believe that our property prices are likely to be heading upwards when we consider a reasonable time horizon. In future decades, Australia’s property prices are very likely to be far higher than they are today. 
The question is, if median property price growth in the future is only somewhere around 5% instead of the 7–10% that has been seen in the past, is property still an asset class we should invest in? For my money, the answer is an emphatic ‘yes’. 
Remember that, as property investors, we are not too concerned with median price growth. We want to significantly outperform median price growth through investing in harmony with market cycles, picking properties that are in continual high demand and selecting properties that we can add value to through renovations. 
Specifically, in Australia I will be investing in two-bedroom, two-bathroom units (and sometimes even one-bedroom units) with parking that are in suburbs close to the CBDs of some of the major capital cities. 
I will be seeking investment-grade units in the supply-constrained, lifestyle suburbs that have transport hubs or links for easy access to the city. 
Nobody knows what the future will bring, but if the median price of property grows by 5% over future decades, as a property investor I will be looking for my portfolio to outperform the median growth by at least 2%. 
I believe that these suburbs and types of properties will achieve that because they are highly sought after as a result of their local resources and facilities. Properties in desirable suburbs are also impacted less by affordability issues than some of Australia’s housing stock.
<img src="/images/stories/2012/12/wargentbook.jpg" style="margin: 5px; float: left;">
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial freedom.</a>
</body></html>

pwargent-M4siyDbqQY

Property prices determined by supply and demand balance: Pete Wargent

<html><body>
The Real Estate Institute of Western Australia has urged the state government not to consider ending the universal application of the first-home owners' grant in its upcoming midyear budget review.
Currently, the state distributes the $7,000 grant to first-home buyers irrespective of whether they are purchasing an established property or building a new one.
Some premiers in the eastern states have changed the rules for eligibility and will now only provide funds to first-home buyers who build a home or purchase a newly built one.
The New South Wales and Queensland governments recently scrapped the first-home buyers' grant for people who buy a previously lived-in property as a means to stimulate their flagging construction industry.
However, that stimulus is not needed in WA, especially when 75% of first-home buyers in this state purchase a second-hand home, not a new one.
WA is presently experiencing the strongest non-stimulatory growth in first home buyer activity in both the established and new housing sectors since FHOG was introduced in July 2000.
Now is not the time to distort the healthy recovery in the WA housing market.
First home buyer activity  is currently very strong in WA, constituting up to 30 per cent of all turnover around the state.
We are also starting to see a healthy recovery in new building activity, which has partly been led by first-home buyers now representing 25% of this new activity.
Meddling with the application of the first-home owners' grant now would greatly distort this healthy sector of the market and disadvantage three-quarters of people trying to own their first homes.
The Commonwealth introduced this grant with the purpose of it having universal application to all first-home buyers. This universality must continue in WA to keep this section of the market stable and to ensure fairness for all new buyers.
REIWA is also encouraging the state government to maintain its transfer duty exemption for first home buyers in the forthcoming midyear budget review.
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>. 
</body></html>

dairey-MVZf5ZguQC

The WA government should leave the first-home owners' grant as it is: David Airey

<html><body>
The last few months of 2012 were noticeable for the manoeuvrings of arguable the three most recognisable mortgage broking brands: Aussie, Mortgage Choice and newish kid on the block, Yellow Brick Road.
All three franchise groups have taken steps to shore up their revenue-generating capabilities in what is likely to a challenging 2013 for mortgage lending and the housing market.
Each brand has adopted a different growth strategy, but the ultimate objective is the same – grow market share, increase revenues and improve profitability. The most recent media attention has been focused on John Symond selling the majority of <a href="/news">his Aussie Home Loans business to the Commonwealth Bank</a>.
Should the ACCC wave the chequered flag, Australia's biggest home lender will go from minority shareholder (33%) to owning 80% of Aussie Home Loans with the right to acquire all of the business at a later stage, should the bank deem it prudent.
It certainly is a prudent move from John Symond (apart from increasing his already substantial personal wealth), who will brush away criticisms that the once bank-bashing battler Aussie brand is now bank-owned.
Having re-positioned Aussie as a mortgage broker in 2002 rather than primarily as a non-bank lender prior to the GFC funding freeze (though it still offers Aussie-branded loans) the investment by the Commonwealth Bank  – said to be around $160 million –will ensure Aussie can continue to grow its retail stores, mortgage broker numbers and brand.
"Our feeling is it is a bigger, better Aussie with more choice and services for consumers, and that has to be good for competition,” he told Property Observer's sister publication <a href="https://www.propertyobserver.com.au/industry-news/aussie-john-symond-explains-sale-to-cba/2012121958587?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">SmartCompany.</a>
Symond’s former non-bank Wizard rival Mark Bouris has also taken a number of decisive steps in recent months aimed at ensuring his fast-expanding Yellow Brick Road franchise business has the funding it needs to provide competitive home loans and can generate enough leads to keep its 140 or so franchise stores busy and profitable.
The well-connected Bouris tied up a wholesale funding deal with <a href="/news">Macquarie Bank in November</a>, (which is itself ramping up its mortgage lending) and this month signed a reciprocal referral agreement with <a href="https://www.propertyobserver.com.au/industry-news/yellow-brick-road-and-run-property-form-property-and-financial-services-referral-alliance/2012121758542" target="_blank">property management group RUN Property</a>. Under the agreement Yellow Brick Road franchisees will offer their home loan and wealth management products and services to RUN’s 40,000 client base, many of whom are property investors.
Macquarie Group, of which Macquarie Bank is a subsidiary, cemented its ties with Yellow Brick Road by acquiring an 8.3% shareholding just ahead of the Christmas break with Yellow Brick Road strategic adviser and Australian Financial Review columnist Christopher Joye investing $1 million through Coolabah Ventures business entity.
Business Spectator's Stephen Bartholomeusz points out that in a twist of irony, Macquarie was the bank that originally funded John Symond's push into mortgage lending and is now doing something similar with his long-time rival.
 
<hr class="system-pagebreak">
 
Mortgage Choice may not have sought or garnered the headlines that Bouris and Symond have managed, but the ASX-listed franchise has also been re-jigging its business model and building on its strategy of diversifying its offering.
In December, as it celebrated its 20th anniversary, Mortgage Choice opening its first financial planning franchises in Sydney and another one in Brisbane.
The focus will be on providing risk insurance products – a natural fit to its home loan business – as well as superannuation and investment advice.
Mortgage Choice aims to have 10 financial planning stores up and running as part of a “soft launch” with a full roll-out planned from July 2013.
The franchise has ambitious plans for its financial planning business.
Looking ahead over the next two decades, Mortgage Choice CEO Michael Russell says the company has plans to “revolutionise the financial planning industry in the same way it did the home loan business”.
“We have put in place the solid foundations needed to successfully transition from a home loan specialist into the full financial services provider our customers have been asking for,” he adds.
These developments are good news for shareholders in these three businesses, but smaller mortgage broking groups could find the going a lot tougher, with further consolidation activity likely in the coming months.
</body></html>

Mortgage broking big brands position themselves for challenging 2013 with diverse strategies

<html><body>
Mortgage industry bigwig John Symond has tipped a gradual improvement in the housing market in 2013 and for interest rates to fall further.
“I am pretty confident the housing market throughout the country has bottomed out,” he says.
Symond believes there will be a “very gradual increase in [property] values across the board”, but not the 15% or 20% annual spike that occurred pre-GFC.
Mirroring comments made by<a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/no-housing-price-crash-but-if-pries-increase-further-australia-flirting-with-danger-glenn-stevens/2012121858581" target="_blank"> RBA governor Glenn Stevens </a> about sustainable house price growth, Symond said such price spikes were “not healthy”
Rather, he says a gradual increase of 4% to 5% would be “a good healthy return year-on-year”.
“I believe the property market will now head into a healthy state of growth with only gradual increases and that is on the back of low interest rates,” he says.
He is also starting to see a return of property investors to the market due them having the “greatest choice in the number of properties on the market in Australia’s history” combined with the low interest rates.
“I am confident we will see a healthy gradual improvement in housing across the country and I believe the regional centres will see that increase as well because overall Australia still has a shortage of housing,” he says.
Symond says he also expects interest rates to head lower in 2013.
</body></html>

Property has bottomed out and heading for “healthy" growth rates of around 4% to 5% per annum”: John Symond

<html><body>
To the average person the concept of a drug lab operating out of a standard residential property may seem somewhat far-fetched. Surely these types of operations only exist in abandoned sheds on the outskirts of town, just trying to mind their own business?
Unfortunately, this is not the case. The drug lab epidemic has leaked into neighbourhoods across the country next door to unsuspecting families and children.
An article titled “Landlord blasts property agents after drug raid” was published in the Gold Coast Bulletin about the discovery of a drug lab property on the Isle of Capri.
This is a prestigious island suburb located in the heart of the Gold Coast with most properties boasting waterfront access. Not exactly an abandoned shed, is it? The property in question was a rental property and it once again highlights property managers’ exposure to potential mismanagement claims by their landlord clients.
According to the article, the landlord lived next door to the rental property and allegedly had concerns about its condition. The landlord reportedly blamed the property manager because he believed the agent’s inspections had been inadequate.
The setup of drug labs is not always easily identifiable, and in many instances landlords may look to blame agents and seek to recover their losses from them.
It is an apt time for the Real Estate Institute of Queensland to remind agents that the cover provided by the Aon/REIQ/ Professional Indemnity policy is unique in that it is the only policy which has a standalone property mismanagement extension.
This extension provides protection from allegations of negligence arising from any claim arising as a result of an actual or alleged breach of the agent’s professional duty as a property manager, including malicious damage to a rental property or loss of income or value to a rental property as a result of illegal activity by tenants (including drug labs).
With drug labs appearing in the most unlikely of suburbs across the country, this is a timely reminder for those in the real estate profession to be aware of the associated risks, both personally and professionally.
More information on drug labs can be found through the <a target="_blank" href="https://www.police.qld.gov.au/programs/druglabs/">Queensland Police Service</a>
Amanda Haack is events manager journal deputy editor at the <a target="_blank" href="https://www.reiq.com/">Real Estate Institute of Queensland</a>. This article originally appeared on the<a target="_blank" href="https://reiqblog.com/"> REIQ blog.</a>
</body></html>

ahaack-6499LRWKce

 How Queensland property insurance can help if a drug lab is found in an investment property

<html><body>
Landlords could find themselves bearing heavy losses if their properties are rented by tenants who  undertake criminal activities if they don’t take out extra insurance to cover this sort of behaviour.
However, investigations by Property Observer indicate that obtaining the extra insurance needed may be hard to come by, with many insurers not readily covering this kind of activity.
It especially highlights the importance that property managers properly vet prospective tenants before signing lease agreements.
The issue has come to light following the reporting of two drug labs uncovered in rental properties in Melbourne and on the Gold Coast in the last few months.
In September, the Herald Sun reported that property investor Nicholas Milan Wyman would sue his property manager after suffering extensive damage his rental property in St Leonards, Sydney, which was used as a drug lab and where a corpse was dismembered.
Last week, the Gold Coast Bulletin reported that a police drug raid uncovered a drug lab in a rental property<a href="https://www.propertyobserver.com.au/landlords/how-queensland-property-insurance-can-help-if-a-drug-lab-is-found-in-an-investment-property-amanda-haack/2012121858560?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=observers" target="_blank"> on the prestigious Isle of Capri.</a>
Property Observer recently contacted the major landlord insurance providers, but only one – Terri Scheer Insurance – provided a definite response to the question of landlord recompense cover for criminal activity.
Another insurance provider, Perth-based EBM Insurance Brokers, has subsequently contacted Property Observer to say that its RentCover landlord insurance does cover drug lab clean-up costs and recently paid out a $50,000 claim to clean up a property used as a drug lab in Hoxton Park, NSW.
According to RentCover general manager, Sharon Fox-Slater, police discovered the laboratory by chance when investigating a child abuse allegation; the home was occupied by a family with four children aged under 10.
Fox-Slater says in this case the alleged crooks were careful with gardens well-kept and the four-bedroom home "immaculate during property inspections, with the laboratory dismantled".
“We treated the claim as tenant damage because the ongoing liability is massive if the property is not cleaned correctly,” she said.
A spokesperson for Allianz Australia said the company could not provide any comments in relation to the example of the St Leonards drug lab story.
“We have looked into it, but there are some many potential complexities and unknowns in the scenario provided below that it is not possible to provide a simple response as to whether our landlords policy could respond in full or part to such an event,” said the spokesperson.
A spokesperson for CGU said the insurer had no comment.
Aon said it could not comment, though it does provide a professional indemnity policy for property managers with a “mismanagement extension”.
 
<hr class="system-pagebreak">
 
This extension provides protection from allegations of negligence arising from any claim arising as a result of an actual or alleged breach of the agent’s professional duty as a property manager, including malicious damage to a rental property or loss of income or value to a rental property as a result of illegal activity by tenants (including drug labs).
Terri Scheer Insurance manager Carolyn Majda said criminal activity by a tenant that results in damage to the rental property “may be covered by insurance – provided there is a tailored landlord insurance policy in place”.
Terri Scheer Insurance offers tailored insurance policies to cover landlords for many risks including malicious and accidental damage, loss of rental income and legal liability.
“Landlord insurance policies that cover these specific risks can assist landlords to safeguard their investment and ensure they continue to receive a steady flow of rental income,” Majda says.
“A good landlord insurance policy that covers malicious damage – for example holes punched in walls, doors that have been kicked in and intentional damage to carpets and floors - will class illegal activity within this category.
“Loss of rental income resulting from criminal activity may also be covered by landlord insurance, for example, if the landlord is unable to lease the property while it is repaired or cleaned, or if the tenant absconds before their lease is up for renewal.
“This is why every landlord should have a tailored landlord insurance policy,” she says.
“Landlord insurance policies that cover these specific risks can assist landlords to safeguard their investment and ensure they continue to receive a steady flow of rental income.
Majda says the policy should also provide cover if a court orders a tenant’s eviction or terminates the rental agreement due to tenant hardship.
“A standard building and contents insurance policy generally won’t cover landlords for many of these risks,” she says.
From January 1 next year, all real estate licensees in NSW will be required to have mandatory professional indemnity insurance with cover of at least $1 million for any one claim and not less than $3 million in the aggregate for all claims made during the period of insurance.
Photo by West Midlands Police courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
</body></html>

Drug labs: landlords exposed if tenants undertaking criminal activity

<html><body>
The Argo hotel in South Yarra will be transformed into a two-level boutique apartment complex with Pace Development Group at the wheel.
Located at 62-74 Argo Street – with frontages on Hyland Street and Moore Street – the 1,407-square-metre property will comprise 39 one- and two-bedroom apartments, to be known as Argo Apartments.
<img alt="arog2" src="/images/stories/2012/12/argo.jpg" width="470" height="282">
One-bedroom apartments will range from $389,000 to $469,000.
Two-bedroom apartments will range from $579,000 to $699,000.
Depending on their taste, residents may choose from either a light or dark colour scheme for their interior.
<img alt="arog2" src="/images/stories/2012/12/arog2.jpg" width="470" height="282">
Architects ROTHELOWMAN will combine the existing façade of the building with modern architecture.
The <a target="_blank" href="/news">South Yarra</a> building was built circa 1866 and was formerly known as Sheppard’s after Thomas Sheppard, the first licensee.
In 1927, plans were submitted for the rebuilding of Sheppard’s by the interwar architect Gordon J Sutherland, and more work took place circa 1974 – around the same time it was renamed the New Argo Inn. Its facade will be included in the new design.
The New Argo Inn operated as a live music venue and then functioned as a fine dining restaurant.
Argo Street gets its name from the Argo immigrant sailing ship in 1857.
<img alt="argo2" src="/images/stories/2012/12/argo2.jpg" width="470" height="265">
“We really wanted to create a development that was reminiscent of the classic ideals that have made South Yarra so sought after for so long,” says Darly Wilkinson from Pace Development Group.
“An intimate and exclusive development that allows the resident to enjoy the best of the iconic neighbourhood, but we removed from the hustle and bustle,” Wilkinson says.
Pace is understood to have secured the development site for around $5.3 million. It was listed with price expectations of around $6.5 million, according to The Age.
It was owned by investors, including George Saade, a developer and the former owner of Armdale restaurant Giorgios, and David Tamir, whose company paid $3.65 million in 2006 when it bought the site from a syndicate that included members of the Shulkes, Graeve and Blau families.
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News