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>
Looking for the perfect gift idea or stocking stuffer for a property investor in your life? Here are our 12 suggestions:
<img src="/images/stories/2012/11/1.gif">
<img src="/images/stories/2012/11/propbooks.jpg">
A helpful guide to buying, selling or managing property. Examples include<a href="https://www.dummies.com/how-to/content/buying-property-for-dummies-cheat-sheet-australian" target="_blank"> </a><a href="https://www.dummies.com/how-to/content/buying-property-for-dummies-cheat-sheet-australian" target="_blank">Buying Property for Dummies</a>, <a href="https://au.dummies.com/store/product/Selling-Your-Home-For-Dummies-Australian-Edition.productCd-0730377156" target="_blank">Selling Property for Dummies</a> and <a href="https://majorstreet.com.au/simple-and-successful-property-management/" target="_blank">Simple and Successful Property Management</a>.
 
<hr class="system-pagebreak">
<img src="/images/stories/2012/11/2.gif">
<a href="https://www.bunnings.com.au/products_product_irwin-10-pocket-tool-belt-11atc4904_P5821485.aspx?filter=categoryname--Tool+Boxes" target="_blank"><img src="/images/stories/2012/11/toolbelt.jpg"></a>
A toolbox or <a href="https://www.bunnings.com.au/products_product_irwin-10-pocket-tool-belt-11atc4904_P5821485.aspx?filter=categoryname--Tool+Boxes" target="_blank">tool belt.</a> Whether the investor wants to do an entire DIY makeover or just spruce up a property between tenants, good tools and a can-do attitude can save thousands. 
 
<hr class="system-pagebreak">
 
<img src="/images/stories/2012/11/3.gif">
<img src="/images/stories/2012/11/calendar4.jpg">
 A calendar with the dates of the Home Buyer and Investor Shows during 2013. The show will hit Perth from March 23-24, Brisbane on June 1-2, Sydney from July 19 to July 21 and Melbourne on August 23-25.
 
<hr class="system-pagebreak">
 
<img src="/images/stories/2012/11/4.gif">
<a target="_blank" href="https://www.hotspotting.com.au/"><img src="/images/stories/2012/11/hotspottingterry.jpg"></a>
A year's subscription to <a target="_blank" href="https://www.hotspotting.com.au/">Hotspotting.com.au</a> to identify the next property hotspot. A subscription includes reports, a weekly newsletter and insights from Australia's premier property hotspot expert, Terry Ryder.
 
<hr class="system-pagebreak">
<img src="/images/stories/2012/11/5.gif">
<a target="_blank" href="https://www.cafepress.com/mf/32304591/landlord-by-day_long-sleeve-tshirt"><img src="/images/stories/2012/11/shirt.jpg"></a>
A landlord <a target="_blank" href="https://www.cafepress.com/+worlds_greatest_landlord_rectangle_magnet_10_pac,191781256">magnet</a>, <a target="_blank" href="https://www.cafepress.com/mf/32304591/landlord-by-day_long-sleeve-tshirt">shirt </a>or <a target="_blank" href="https://www.cafepress.com/+landlords_rock_teddy_bear,34803704">teddy bear</a>, all available from <a target="_blank" href="https://www.cafepress.com/+landlord+gifts">Cafe Press.</a>
 
<hr class="system-pagebreak">
<img src="/images/stories/2012/11/6.gif">
<a href="https://www.gamehouse.com/download-games/buildalot" target="_blank"><img src="/images/stories/2012/11/buildalot.jpg"></a>
<a href="https://www.gamehouse.com/download-games/buildalot" target="_blank">Build-a-Lot,</a> a real estate computer game where you can flip houses for quick cash or invest for the long term. 
 
<hr class="system-pagebreak">
 
<img src="/images/stories/2012/11/7.gif">
<a href="https://www.melbournecitymission.org.au/" target="_blank"><img src="/images/stories/2012/11/citymission.jpg"></a>
A donation to a homelessness charity, such as <a href="https://www.melbournecitymission.org.au/" target="_blank">Melbourne Citymission</a> or <a target="_blank" href="https://www.huttstcentre.org.au/">Hutt St Cetnre in Adelaide</a>. Christmas is a time to think of those less fortunate, and a donation in someone's name will be much appreciated. 
 
 
<hr class="system-pagebreak">
 
<img src="/images/stories/2012/11/8.gif">
<a href="https://www.dhub.org/designer-suburbs/" target="_blank"><img src="/images/stories/2012/11/designer.jpg" width="470"></a>
 The new <a href="https://www.dhub.org/designer-suburbs/" target="_blank">Designer Suburbs: Architects and Affordable Homes in Australia </a>book about houses by Petitt &amp; Sevitt and similar project builders of the 1960s and '70s. It's written by Judith O'Callaghan and Charles Pickett, who is curator of design and built environment at the <place><placename>Powerhouse</placename><placetype>Museum. <a href="https://www.powerhousemuseum.com/publications/publications_item.php?id=266" target="_blank">Its a $50 book</a>.</placetype></place>
 
<hr class="system-pagebreak">
 
<img src="/images/stories/2012/11/9.gif">
<a href="https://www.lisathegingerbreadhouselady.com/" target="_blank"><img src="/images/stories/2012/11/gingerbreadhouse.jpg"></a>
A gingerbread house. Wouldn't this be the sweetest investment? <a href="https://www.lisathegingerbreadhouselady.com/" target="_blank">Lisa the Gingerbread Lady</a> makes them for delivery and pick-up in Melbourne, or you can try <a target="_blank" href="https://thatgingerbreadplace.com.au/faqs">That Gingerbread Place</a> in Sydney
 
<hr class="system-pagebreak">
 
<img src="/images/stories/2012/11/10.gif">
<a target="_blank" href="https://www.gamesparadise.com.au/monopoly-sydney-edition-sydney-monopoly"><img src="/images/stories/2012/11/sydneymonopoly.jpg"></a>
 The<a href="https://www.gamesparadise.com.au/monopoly-sydney-edition-sydney-monopoly" target="_blank"> Sydney Monopoly game</a>. Who wouldn't want to buy and sell the priciest real estate in the Harbour City? 
 
<hr class="system-pagebreak">
 
<img src="/images/stories/2012/11/11.gif">
<a href="https://www.amazon.com/St-Benedict-Statue-home-protection/dp/B001EK53DO" target="_blank"><img src="/images/stories/2012/11/stbenedict.jpg"></a>
 A <a target="_blank" href="https://www.amazon.com/St-Benedict-Statue-home-protection/dp/B001EK53DO">Saint Benedict Home Protection Kit</a>, given Saint Benedict is known as the protector of hearth and home.
 
<hr class="system-pagebreak">
 
<img src="/images/stories/2012/11/12.gif">
<a href="https://www.propertyobserver.com.au/https://www.ebay.com.au/itm/261014979249?hlp=false#ht_1421wt_906" target="_blank"><img src="/images/stories/2012/11/crystalball4.jpg"></a>
A <a href="https://www.propertyobserver.com.au/https://www.ebay.com.au/itm/261014979249?hlp=false#ht_1421wt_906" target="_blank">crystal ball.</a> Wouldn't every property investor like one of these to predict what the market will do next year?
</body></html>

po-LsXgBTHBmX

The 12 Christmas gift ideas for property investors

<html><body>
This Saturday will be the final round of Property Tycoon for 2012, and we have some belting properties going under the hammer.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
Dean Gilbert from Marshall White will have a big auction on his hands when he calls for bids at 14 Jessamine Avenue, <a href="/news">Prahran</a> (pictured below).
<img src="/images/stories/2012/12/jessamin.jpg">
Winton was built in 1929 and lies in one of Prahran's most tightly held heritage-listed leafy pockets, only metres from Lumley Gardens and High Street's cafes and shops. The totally captivating solid-brick English-style residence sits on almost 800 square metres of land and is surrounded by spectacular botanic garden setting.
Many buyers will want this one, but they will need more than $2 million up their sleeves to secure it.
In Sydney it will be the receivers from Ferrier Hodgson that will be calling the shots at the auction of 1/64 Ocean, <a target="_blank" href="/news">Woollahrra</a>.
The townhouse is located in one of Woollahra’s premier tree-lined streets opposite Chiswick Park. In a block of only four, the property has three bedrooms and comes with the all-important basement lock-up garage.
<img src="/images/stories/2012/12/oceanst.jpg">
Downsizing baby boomers are expected to be out in force. Peter Starr from McGrath Real Estate says the expectations of the receivers are closely aligned with where he believes the market value lies. He is confident this one will sell under the hammer in excess of $1.5 million.
</body></html>

marmstrong-sd3emVLPPb

A tightly held heritage Prahran property and a Woollahra receivership sale end auction tipping competition season

<html><body>
13/26 Bayshore Drive Byron Bay, NSW, 2481 <img width="470" src="/images/stories/2012/12/bayshore.jpg">
Just one kilometre from the beach, this single-level, two-bedroom villa is currently tenanted at $380 per week. It includes a single lock-up garage, and listing agent Brett Connable of Ray White says it presents a "great investment opportunity".
Connable <a target="_blank" href="https://myproperty.raywhite.com/PropertyDetails.aspx?id=869488">is marketing the property </a>with price hopes of $329,000 plus, and if it sells for that price, that would secure an investor a gross rental yield of 6% at its current rent, above the gross rental yield for Byron Bay units of 5.3%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
<a href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT" target="_blank">Washington Brown</a> estimates the first-year tax depreciation deduction to be $8,000 and over five years to be $29,000.
The median unit price in Byron Bay fell 20.7% in the past year but rose 11.4% in the past five years, according to RP Data.
For more information about prices and yields in <a target="_blank" href="/news">Byron Bay, see the RP Data suburb page.</a>
The property will go to auction Saturday, December 8 at 10am.
</body></html>

cknowlton-QnEa6ntUYP

Friday form guide: Yields of up to 6% in Byron Bay

<html><body>
Apart from “middle-ring” suburbs well-connected to the CBD via better transport and infrastructure links, the Brisbane residential market underperformed and remained soft over 2012.
At the start of the year, valuers from Herron Todd White had tipped the Brisbane market to firm up over 2012.
However, while things “may have hardened up some towards the end of this year on the back of interest rate cuts, most of the year remained 'Tontine soft',” says HTW in its December year-in-review wrap.
HTW was “decidedly bullish” at the start of the year but said “a 10% drop across a broad range of the market is far from bullish” with investors instead keeping their heads down.
The outlook is somewhat better for 2013, with a few more investors “fronted up in November in response to the stronger rents and lower interest rates”.
However the best HTW can say about 2013 is that “maybe next year will be more agreeable”.
The only market that lived up to expectations were “mid-ring, well serviced, transport accessible localities”.
“It may seem like a lay-down misère, but frankly we think this patch has continued to be a good investment.
“Those hubs that are now much closer to the CBD in travel time due to the infrastructure boom are feeling the love.
“Once again these markets didn’t make you rich right away, but they certainly performed better than most,” says HTW.
HTW also notes some improvements in sentiment towards property in flood-affected regions of the city.
“We also made one very brave call for the coming year, and that was flood-affected property. In 2011, you could barely get a nod of recognition from purchasers when listing in a suburb that flooded, and woe betide the property that actually copped some water.
“We thought as the mud started to settle, a few speculative types might pop out of the woodwork.
“To some degree, we were right. Whilst it couldn’t be said that fortunes have been made on investing in the flood affected areas, it is fair to say that the market is becoming more comfortable with the risk."
 
<hr class="system-pagebreak">
 
According to HTW, the findings of the Queensland Floods Commission, which placed some blame on how the flood was managed in terms of releases and outlined some ways the effects might have been mitigated, has convinced some buyers it won’t happen again, “which means demand is a touch stronger and by this year’s end, sales were a more regular event”.
However, outside of the middle-ring and some flood-prone areas where fears reduced, the market remained soft both at the upper end of the market and at the bargain end.
“The prestige bit of the market looked lacklustre at the end of 2011, and our call was more of the same in 2012. Guess what – we were right," says HTW.
The bargain end of the market spectrum was one area HTW thought had “some real upside going into the year”.
“It always seems a given that in a soft market the really cheap stuff just can’t get any cheaper. In reality, though, buyers just continued to stay away, and if you weren’t competitive in your list prices, then you could forget about anyone turning up to the open house.
“Buyers were spoilt for choice with solid returns for not too much outlay on offer.  Unfortunately the jitters prevailed and even this affordable end kept up the drag.”
Overall, HTW said that on balance the Brisbane market “didn’t fire as much as expected and some markets actually took another hit in the past 12 months”.
“In many respects the statistics show we probably weren’t pessimistic enough about 2012 when making our calls on the year ahead back in February."
</body></html>

lschlesinger-FZcF9M3vE6

Well-connected middle suburbs the bright spot in otherwise soft year for Brisbane residential market: HTW

<html><body>
Malaysian developer Mammoth Empire has secured a prime development opportunity in the northern fringe of Melbourne’s central business district, opposite a 55-storey residential tower it already has under construction.
The current low-rise 398-406 Elizabeth Street site was acquired from a Melbourne family for $15.1 million.
The 1,029-square-metre site on the corner of A’Beckett and Elizabeth streets is on the adjoining corner where the $250 million MY80 tower is under construction.
<img src="/images/stories/2012/12/my80.jpg">
MY80 is a 55-level glass tower on the corner of Elizabeth and A'Beckett streets with plans for the architecturally striking, 173-metre high rise to have a private rooftop nightclub-bar and lounge on its 53rd floor (artist's impression above). Retail tenants in the single-storey building latest acquisition are delivering a low passing yield of a little less than 2%, hence the site was offered by CBRE agents Mark Wizel and Josh as one for residential redevelopment. Its sale price was one of the highest per square metre prices for CBD land in the past year.
Over the past few years, Malaysian, Singaporean and Chinese-based developers have snapped up $385 million of prime CBD residential sites in the Victorian capital, with sites including the Fulton Lane project, where Malaysian developer SP Setia is building 800 apartments at 151 Franklin Street.
Last month a Malaysian investor purchased the CBD corner occupied for 57 years by the clothes manufacturer and retailer Fletcher Jones.
The 1 Queen Street asset – a double-storey showroom on a 746-square-metre block at the north-west corner of Flinders Street – sold for $11 million to an investor who is expected to lease the existing asset but resell after a redevelopment permit has been obtained.
The Queen Street sale price reflected a land rate per square metre of $14,745 was pushed up by residential developers, in the mix of 11 that submitted formal offers for the property to Savills.
“We are fielding continued interest from offshore developers wanting to acquire large development sites in the Melbourne CBD,” Wizel says.
“Interest from publicly listed Malaysian development companies remains particularly strong, with active mainland Chinese developers not far behind.”
The property services company PDS Group, which is co-ordinating the MY80 project, also negotiated the latest deal for Mammoth, which was attracted by the precinct close to Melbourne’s universities.
At 206 A'Beckett Street, the Malaysian developer recently completed its 25-level high rise with 280 apartments, with the name Pegasus Apartment/Hotel.
It was never marketed for sale in Australia when the off-the-plan sales took place at the time when federal government foreign ownership legislation  by the Labor government allowed 100% ownership by offshore interests in new residential projects.
The site was the former car dealership, near Flagstaff Gardens.
</body></html>

jchancellor-FAypfDUnLy

Malaysia-based Mammoth Empire the latest Asian developer to take another piece of Melbourne residential development pie 

<html><body>
Victoria will miss out on the recovery in the property markets of the other major states, according to BIS Shrapnel.
The forecasting firm told a journalists' lunch in Melbourne it was expecting a recovery in NSW, Western Australia, Queensland and Northern Territory in the next few years, with WA the "first cab off the rank", according to senior manager of residential property Angie Zigomanis.
"It's not a resources story, it's a supply and demand story," says Zigomanis, noting rising population growth in those areas. 
NSW is set to benefit from rising population growth coupled with an "atrocious undersupply in housing in the past 10 years", according to BIS Shrapnel managing director Robert Mellor. 
Despite the undersupply, the NSW market has been constrained by affordability concerns for the past decade, says Zigomanis. But in the new low-interest-rate environment, affordability is back to circa 2001 levels, which will spur on a recovery in housing.
Queensland is also set for a housing market recovery, with the next 12 months set to be a consolidation phase and growth picking up in 2014, according to BIS Shrapnel.
But Victoria will be left behind, facing level growth for at least the next three years, says BIS Shrapnel, which forecasts vacancy rates will rise in the next year due to a big influx of residential developments currently in the pipeline coming online. 
Zigomanis says Victoria could experience falls in capital growth for the next two to three years, and if housing picks up in the other states, as it is forecast to do, the RBA could raise interest rates again by 2015, which would nip Victoria's possible recovery in the bud. In that case, a recovery in the Victorian housing market could be five years off.
The firm is equally bearish on the Victorian economy as a whole, saying unemployment could rise to over 6.5% in the next few years. 
"I don't think people realise how bad it's going to be in Victoria," says BIS Shrapnel chief economist Frank Gelber. 
But at least Victorians be glad they are not living across the Bass Strait.
"Tasmania's a basket case," says Zigomanis. 
</body></html>

Victorian property market recovery could be five years off: BIS Shrapnel

<html><body>
Home loan comparison websites will face greater scrutiny from corporate watchdog ASIC to ensure they provide accurate information and are not misleading consumers.
This follows growth in the number of comparison websites since GFC, filling a need for consumers to be sure they are getting the best deal on mortgages, credit cards, insurance and other products.
However, ASIC has identified a number of concerns with some comparison websites, including that some only compare a limited number of brands/products from a limited number of providers.
“This may not be clearly disclosed which creates the impression that the extent of comparison is much broader than it actually is,” says ASIC.
ASIC is also concerned at the use of ‘ratings’ and ‘rankings’ for products without a clear explanation of the basis for them and websites that refer to ‘special offers’ and ‘featured products’ without properly explaining the basis of selection of certain products.
“For credit comparison websites that advertise loan products, it is important that comparison rates are disclosed as required under the National Credit Code. Given the nature of comparison sites it is important that consumers are provided with accurate information so they can choose financial products that best suit their needs,” says ASIC.
“ASIC recognises that consumers can benefit from the increasing opportunities to research and compare financial products online. For this to occur, operators of comparison websites must take care to ensure they accurately portray the features and limitations of the products compared. They also need to ensure that any information they provide, including quotes, is reliable, accurate and up-to-date,” says ASIC commissioner Peter Kell. "We will be targeting this area of the market and we will take regulatory action where necessary to ensure that operators of financial product comparison websites comply with the law," he says.
The increased scrutiny of comparison websites was welcomed by Rohan Gamble, managing director of Mozo.com.au.
Gamble told SmartCompany.com.au the aggregator industry is filled with so-called affiliates, who simply create an aggregator product that only compares their products.
“This type of announcement makes sure that we do the best we can. We’ve been waiting for this type of thing, and we take the view that we do this seriously, and that everyone else should as well.”
Comparison websites must comply with their obligations under consumer protection laws.
ASIC recently released a new regulatory guide for advertising financial products (Regulatory Guide 234 Advertising financial products and advice services: Good practice guidance), which includes guidance for comparison websites.
These include early disclosing the basis of awards or ratings, disclosing any links to the providers of products that are being compared, including commissions, referral fees, payments for inclusion in comparisons and/or payments for ‘featured’ products including a warning if not all providers are included in the comparison, clearly disclosing advertisements to prevent consumers being misled about the ranking of the product, and where necessary, including a warning that financial products compared do not compare all features that may be relevant to the consumer.
</body></html>

ASIC warns mortgage comparison websites on accuracy, disclosure and compliance

<html><body>
Westpac-owned St George Bank and Bank of Melbourne will pass on 20 basis points to variable mortgage holders from December 17.
The rate cuts mean all three banks will continue to maintain different variable rate settings.
St George Bank it will reduce its standard variable home loan rate by 0.20% to 6.49% per annum while Bank of Melbourne will reduce its standard variable rate to 6.40% per annum.
Yesterday Westpac announced its standard variable rate would reduce to 6.51% on December 17.
In a further move to differentiate the brands in the minds of consumers, Bank of Melbourne is promising to beat any advertised equivalent home loan rate of the big four anks if they take out a new home loan by 21 December.
“On average, Bank of Melbourne has been 15 basis points better than the majors, based on a $300,000 loan over the last 12 months,” said chief executive, Scott Tanner.
This is based on a comparison of a $300,000 loan and average packaged loan rates of Westpac, ANZ, CBA and NAB.
</body></html>

Three brands, three different rates: St George and Bank of Melbourne to cut by 20 basis points

<html><body>
Provident Capital receiver PPB Advisory is investigating dividend payments totalling in excess of $5 million paid to a company associated with Provident managing director Michael O'Sullivan dating back to 2008.
In a note to debenture holders, the receivers have commenced investigating "payment of in excess of $5 million in dividends to Provident's shareholder (a company associated with Provident's managing director Michael O'Sullivan) since 2008" as well as Provident's auditing and investor disclosure policies.
This follows preliminary assessments by PPB Advisory finding that a number of assets that Provident took control of as mortgagee in possession may have been substantially overvalued and that this was not disclosed to debenture holders, trustee AET or ASIC.
The receivers have warned Provident Capital debenture holders to expect a maximum of 35¢ back for every dollar they invested in the failed non-bank lender and mortgage fund manager.
Provident Capital receivers and managers Phil Carter, Tony Sims and Marcus Ayres from PPB Advisory say that based on “preliminary analysis of the loan portfolio” an estimated likely return “will be in the region of $0.25 to $0.35 of every dollar invested”.
This prime reason for the “shortfall” in returns to debenture holders relates to Provident’s lending and asset management policies with the receivers noting that many of the loans originated on a “pure asset basis without regard to the borrower’s ability to service the debt or repay it otherwise then from a sale of the security”.
The report is also highly critical of the behaviour of Provident Capital when taking control of an underlying asset as mortgagee in possession.
PPB Advisory says Provident Capital failed to issue legal notices enacting its power of sale as well as comply with its obligations under the Corporations Act as controller.
The latest report also says Provident Capital “appeared to lend on poor or unsuitable security on a number of cases”.
When Provident Capital collapsed in July, it was found that 85% of loans funded by debenture holder investments in fixed interest products were six months or more in arrears with a high proportion being first mortgages for risky residential development projects.
Out of a total of 55 loans in the fixed interest term portfolio, 30 were for properties in NSW worth $51.2 million with 15 in Queensland totalling $38.9 million.
The latest report shows that loans were concentrated with two “key borrowers” who were provided mortgages totalling $40 million with the administrators expecting to recover less than 50% of this amount.
The estimated maxium return of 35¢ on the dollar  is contingent on a number of assumptions, including that there are no new defaults from borrowers in the existing loan portfolio; full recovery of certain loans from existing defaulting borrowers, continued support from Provident staff and “no significant adverse changes to the Australian property market”.
PPB Advisory also added that estimate was difficult to work out with any precision and warned that there are “a large number variables outside of a receiver’s control”
Debenture holders should treat this as an estimate only that could change as more information comes to light, said the receivers, who added that there could be further returns arising from claims against the directors of Provident Capital, professional advisors and third parties.
</body></html>

Poor return likely for Provident Capital debenture holders as $5 million dividend payments investigated

<html><body>
This is as good as it gets, folks. It’s time to stop procrastinating and get into the real estate market. 
The Reserve Bank’s latest reduction in the official interest rate, which will probably translate into a 20 basis point decrease in mortgage rates, is the icing on a cake that’s pretty tasty for property buyers. 
The ingredients of the cake include higher incomes, lower prices, greatly improved affordability and interest rates at GFC levels, against a background of solid economic performance, low unemployment and, at long last, rising consumer confidence. 
According to the figures that comprise the HIA-CBA Housing Affordability Index, the median dwelling price is 5% lower than it was two years ago.
In the same time frame, average weekly earnings have risen 7.45%, while the interest rate marker they use has dropped from 7.12% in March 2011 to 6.03% in September 2012. Since September, we have had two interest rate reductions from the RBA. 
So we have had seven consecutive quarters of improving affordability, followed by the rate cuts in October and earlier this week. 
Figures from Mortgage Choice show that, since October 2011, the average standard variable rate has reduced from 7.79% to 6.6% (prior to this week’s RBA cut). Monthly repayments on a typical $300,000 loan over 30 years have fallen from $2,158 to $1,916, a saving of $242 per month. 
Looked at another way, those who have maintained their repayments at October 2011 levels will have reduced their loan terms by close to eight years, saving well over $100,000 in interest over the life of the loan. 
Buyers have been responding to the improving situation – gradually but steadily – with loan commitments to owner-occupiers up 5.5% in the past 12 months and loans to investors up 4%. 
But surveys have suggested many consumers were awaiting another trimming of the official interest rate before getting into the market. Now they’ve got their Christmas present. 
So the fence-sitters are all out of excuses. It’s really not going to get any better than this. 
Capital city prices have stopped falling and are now trending up in most the big cities. We have now had six interest rate cuts since October 2011 and we are unlikely to get more any time soon. 
Everything you’ve been waiting for is now in place. Stop mucking around and get active.
Terry Ryder is the founder of <a target="_blank" rel="nofollow" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> and can be <a target="_blank" rel="nofollow" href="https://www.twitter.com/hotspotting">followed on Twitter</a>.
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News