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

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

<html><body>
The reputed $4.4 million sale of a renovated Middle Park at auction yesterday to Santic thoroughbred horse breeding family topped weekend auction results.
<img src="/images/stories/2012/12/mpark.jpg">
The Cayzer agency would not comment on the strong result for the five-bedroom house (pictured above), which The Age reported was rumoured to have sold for $4.25 million six weeks ago in an off-market deal that collapsed.
It was offered by another horse racing industry family, the Dorgans. It last sold at $2.28 million in 2006.
The weekend auction clearance rate held steady at 60%, according to data collected by the Real Estate Institute of Victoria, from the results of 853 auction. But estate agent Kieran tweeted  "not many buyers around, but the smaller number were good quality". 
A further 80 or so auction results are yet to be included in the REIV results, which could result in the tally falling slightly below the year to date average.
Sydney vendors however suffered in the over-burdened heat of the last-minute rush to sell before Christmas with a 54% clearance rate.
The dearest sale was a five-bedroom Strathfield house for $2.82 million.
The revised tally for the prior weekend fell from 59.7% to 54.2% after extra results were included.
Sydney had about 575 auctions this past weekend, according to Australian Property Monitors, which was about 7% up on the same Saturday last year.
Next weekend there are around 650 auctions scheduled, then 500 in a fortnight, a very late and heavy offering for the lead into Christmas.
Melbourne has around 970 auctions next weekend, according to the Real Estate Institute of Victoria. The following weekend there are around 930 auctions.
</body></html>

jchancellor-FAypfDUnLy

Capital city auctions cool as thoroughbred breeder families top weekend auction results

<html><body>
If the economists and analysts are correct, this week we’ll be looking at another interest rate cut from the Reserve Bank. Millions of Australian home owners will feel relief on an expected 25-basis-point, but spare a thought for those who rely on the yield of cash assets to fund their retirements. If the cash rate drops to 3% they’ll be left to wonder how far the cash rate will fall in 2013 and whether they can live on these decreasing yields.
The average interest rate on bank deposits and term deposits was 3.5% at October 2012, according to the RBA.
If we agree that underlying inflation is running at around 2%, those living on cash yields are already vulnerable, before even this week’s supposed rate cut.
But depositors have one thing going for them: the banks need their money because it is cheaper than sourcing it from the capital markets. So the banks will compete for those deposits with good rates. You just have to be prepared to look and to act.
I’d start by being active about where your money is and how much it is earning. Make a habit of reading financial media and going to comparison sites such as Canstar or RateCity. Some of the best term deposit rates are 90-day deposits that turn over four times a year. So it pays to be more active.
If the rate offered on your savings account is dropping, look for higher paying alternatives. Don’t worry about having to leave the comfort of your own bank, because your bank may already offer a higher yielding money market account that goes by a name you are unaware of.
There are four main categories that cash investors can use.
Savings accounts: They pay low rates that are variable, have transactional capability at ATMs and branches, and are capital-guaranteed by the government.
Cash management/savings maximiser accounts: They pay higher rates than savings accounts but are also variable; they often lure people in with "honeymoon" rates for four to six months, are commonly online-only; they usually have rules about how many deposits/withdrawals each month, limiting their transactional capability. Also capital guaranteed by the government.
Term Deposits: They pay higher rates than savings accounts (Westpac’s 90-day TD is 4.3%; ING’s 180-day is 4.5%); they are fixed rate and fixed term, so you have no flexibility to withdraw the money during the investment period, but they are capital-guaranteed by the government.
Bond funds: They invest in the corporate and government bond markets, earn higher than TD yields, with very low risk; they pay retrospectively variable rates (same as a managed fund).
Investing in bonds is very low risk and produces yields well over 5%.
Your best way forward is to see an adviser. But if you can’t, commit to being more active with your cash investments and to become an expert on yield.
You can’t control interest rates, but you can decide where you money is invested.
If you’re a retiree or pre-retiree who is concerned about what will happen with your savings, I want to hear from you. <a href="mailto:mark@ybr.com.au">Email me</a>.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
</body></html>

mbouris-tauSvXGAM2

What savers can do in the face of falling interest rates

<html><body>
The REIV has released data that reveals, for the first time, the suburbs where auctions are the main method of sale and those where private sales are.
This data, presented in an online clickable map, is an invaluable resource for all real estate agents and vendors.
The data will assist real estate agents and vendors as they make the decision about the most appropriate sales method for their property.
The maps clearly show that auctions are the most popular sales method in the inner city, while in the outer suburbs most sales are conducted privately. This in part explains why the median price of a home sold at auction is higher than one sold at private sale, as residential property is much more expensive in the inner suburbs.
While overall auction sales have represented around 22% of all sales in Melbourne this year, there are some suburbs with a higher number and some with less.
Suburbs where more than half the homes were sold by auction in 2011 included Elsternwick, Surrey Hills, Armadale, Richmond, Malvern, Northcote and Camberwell.
At the other end of the spectrum less than 5% of homes were sold by auction in Narree Warren, Werribee, Rowville, Craigieburn and Mooroolbark.
It is also the case that clearance rates tend to be higher in the suburbs where auctions are more prevalent.
Analysis of the data over 2010 and 2011 shows a clear trend towards private sales as the level of competition dropped. This highlights that auctions work better when there is a high level of demand, generally or for a specific property.
When teamed with data showing weekly clearance rates this information is an invaluable and unique resource for all those active in the residential real estate market. The<a href="https://www.reiv.com.au/Property-Research/Auction-Map.aspx" target="_blank"> maps are available on the REIV website.</a>
Top 10 suburbs ranked by % sales by auction in 2011
<a href="/news">ELSTERNWICK </a>69%
<a href="/news">SURREY HILLS</a> 68%
<a href="/news">ARMADALE </a>67%
<a href="/news">CAULFIELD </a>64%
<a href="/news">HUGHESDALE</a> 63%
<a href="/news">MONT ALBERT</a> 62%
<a href="/news">KEW EAST</a> 62%
<a href="/news">CLIFTON HILL</a> 61%
<a href="/news">CAULFIELD NORTH</a> 60%
<a href="/news">HEIDELBERG</a> 60%
Enzo Raimondo is CEO of the <a href="https://www.reiv.com.au/" target="_blank" rel="nofollow">Real Estate Institute of Victoria</a>.
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enzoraimond-7fvRFHPR52

Top 10 Melbourne suburbs ranked by percentage of sales by auction, including Elsternwick and Surrey Hills

<html><body>
Three Canadian fashion retailers are swimming ashore to lease space in the $385 million redevelopment of Rundle Place on Rundle mall in the Adelaide CBD.
Rundle Place features 85 shops over 22,000 square metres of retail space running along Rundle Mall and is due to be completed in October next year, featuring a Harris Scarfe store and anchor-tenanted by Coles, along with a mix of other retailers and a 500-seat food court.
Point Zero – a Canadian brand name and manufacturer of chic and fashion forward apparel for men, women and children – is among the retailers.
Point Zero operates from more than 35 boutiques across Canada, has 920 shop-in-shops in department stores, and has opened franchises in Central and South America and the Middle East.
Joshua Perets was created in 2001 and is directed at the teen and tween market with undergarments to hoodies, jeans to perfume.
As of April 2012, Joshua Perets had 35 stores across Canada.
La Vie en Rose is a leading specialty lingerie retailer for women aged 25 to 54.
It has over 165 boutiques across Canada and expanded into the Middle East, Europe and Asia in 2004.
“We are very excited to open our first stores in a growing city like Adelaide,” says director of retail expansions for La Vie en Rose Joseph Waknine.
“Rundle Place has proven to be the right spot for us with the best mixture of national and international big brands,” says Waknine.
Rundle Place will also include an 10-storey commercial tower that is set to open in October 2013.
The tower has been preleased to the Adelaide Bank and Bendigo Bank.
Vacancy rates for Rundle mall rose in the third quarter of 2012 from 6.85% in June to 10.27% in September, according to a research report by Savills.
Rent in Rundle Mall range from $2,000 per square metre to $3,700 per square metre.
“The centre is now 95% leased and interest continues to be strong,” says Ilona Rose, project leasing manager from Rundle Place.
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Rundle Place secures Canadian fashion tenants

<html><body>
Fraser Property Australia’s flagship apartment block, QIII currently rising up above the WACA cricket ground in East Perth, is 76% sold out, with foreign buyers snapping up a third of the apartments off the plan.
<img src="/images/stories/2012/12/q3.jpg">
QIII forms part of Perth’s newest urban quarter at Queens Riverside on Adelaide Terrace and can clearly be seen rising up above the stands at the WACA during the television broadcast of the third test match between Australia and South Africa.
It will top out at 26 storeys when completed.
Frasers has sold 204 of the 267 Qlll apartments, with 56 foreign investors representing 29% of total sales.
The most recent buyers were Sally and Paul Bradley from Kalamunda, 25 kilometres east of Perth, who bought a dual-key apartment as an investment property.
There are 58 dual-key apartments in QIII, which are two one-bedroom apartments sharing a common foyer, on a single title, allowing the owner to occupy one dwelling while earning income from the other, or to let out both dwellings, achieving rental income greater than an equivalent single-occupancy apartment.
Fraser’s Queens Riverside development will accommodate 408 luxury apartments over three buildings and a 236 room all-suites hotel operated under the Frasers Hospitality brand when completed.
Prices at QIII start from $370,000 for a studio apartment, with dual-key apartments priced from $585,000 and two-bedroom units priced from $545,000.
QIII has been designed Perth architect Bruce Robinson, who was also responsible for the design of the historic, heritage-listed Raffles hotel redevelopment in Applecross.
</body></html>

lschlesinger-FZcF9M3vE6

Frasers’ QIII apartment tower rising above WACA scores double century of sales, with foreign buyers prominent

<html><body>
RP Data has released the latest suburb rental yields.
Property Observer has compiled a table of Victoria's top 30 rental yield suburbs.
Nhill tops the list with a rental yield of 9%, followed by Dimboola with 8.5%.
Melbourne makes it onto the list with a rental yield of 6.1%
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="106">
SUBURB
</td>
<td valign="top" width="106">
POSTCODE
</td>
<td valign="top" width="106">
MEDIAN PRICE
</td>
<td valign="top" width="106">
GROSS RENTAL YIELD
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Nhill</a>
</td>
<td valign="top" width="106">
3418
</td>
<td valign="top" width="106">
$100,000
</td>
<td valign="top" width="106">
9%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Dimboola</a>
</td>
<td valign="top" width="106">
3414
</td>
<td valign="top" width="106">
$97,500
</td>
<td valign="top" width="106">
8.5%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Warracknabeal</a>
</td>
<td valign="top" width="106">
3393
</td>
<td valign="top" width="106">
$103,000
</td>
<td valign="top" width="106">
7.8%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">East Bairnsdale</a>
</td>
<td valign="top" width="106">
3875
</td>
<td valign="top" width="106">
$182,500
</td>
<td valign="top" width="106">
7.1%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Mortlake</a>
</td>
<td valign="top" width="106">
3272
</td>
<td valign="top" width="106">
$137,500
</td>
<td valign="top" width="106">
7.1%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Mount Beauty</a>
</td>
<td valign="top" width="106">
3699
</td>
<td valign="top" width="106">
$158,000
</td>
<td valign="top" width="106">
7%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Murtoa</a>
</td>
<td valign="top" width="106">
3390
</td>
<td valign="top" width="106">
$117,500
</td>
<td valign="top" width="106">
7%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Orbost</a>
</td>
<td valign="top" width="106">
3888
</td>
<td valign="top" width="106">
$140,000
</td>
<td valign="top" width="106">
7%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Red Cliffs</a>
</td>
<td valign="top" width="106">
3496
</td>
<td valign="top" width="106">
$170,000
</td>
<td valign="top" width="106">
7%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Terang</a>
</td>
<td valign="top" width="106">
3264
</td>
<td valign="top" width="106">
$155,000
</td>
<td valign="top" width="106">
7%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Merbein</a>
</td>
<td valign="top" width="106">
3505
</td>
<td valign="top" width="106">
$150,000
</td>
<td valign="top" width="106">
6.9%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Ararat</a>
</td>
<td valign="top" width="106">
3377
</td>
<td valign="top" width="106">
$165,000
</td>
<td valign="top" width="106">
6.9%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Chiltern</a>
</td>
<td valign="top" width="106">
3683
</td>
<td valign="top" width="106">
$176,750
</td>
<td valign="top" width="106">
6.7%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Moe</a>
</td>
<td valign="top" width="106">
3825
</td>
<td valign="top" width="106">
$157,500
</td>
<td valign="top" width="106">
6.6%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Kerang</a>
</td>
<td valign="top" width="106">
3579
</td>
<td valign="top" width="106">
$145,000
</td>
<td valign="top" width="106">
6.5%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Stawell</a>
</td>
<td valign="top" width="106">
3380
</td>
<td valign="top" width="106">
$160,000
</td>
<td valign="top" width="106">
6.5%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Hamilton</a>
</td>
<td valign="top" width="106">
3300
</td>
<td valign="top" width="106">
$195,000
</td>
<td valign="top" width="106">
6.4%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a target="_blank" href="/news">Clunes</a>
</td>
<td valign="top" width="106">
3370
</td>
<td valign="top" width="106">
$196,500
</td>
<td valign="top" width="106">
6.4%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a target="_blank" href="/news">Irymple</a>
</td>
<td valign="top" width="106">
3498
</td>
<td valign="top" width="106">
$220,000
</td>
<td valign="top" width="106">
6.4%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a target="_blank" href="/news">Morwell</a>
</td>
<td valign="top" width="106">
3840
</td>
<td valign="top" width="106">
$151,000
</td>
<td valign="top" width="106">
6.4%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Rochester</a>
</td>
<td valign="top" width="106">
3561
</td>
<td valign="top" width="106">
$195,500
</td>
<td valign="top" width="106">
6.4%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Maryborough</a>
</td>
<td valign="top" width="106">
3465
</td>
<td valign="top" width="106">
$182,000
</td>
<td valign="top" width="106">
6.3%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Tallangatta</a>
</td>
<td valign="top" width="106">
3700
</td>
<td valign="top" width="106">
$180,000
</td>
<td valign="top" width="106">
6.3%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Churchill</a>
</td>
<td valign="top" width="106">
3842
</td>
<td valign="top" width="106">
$168,500
</td>
<td valign="top" width="106">
6.2%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Heywood</a>
</td>
<td valign="top" width="106">
3304
</td>
<td valign="top" width="106">
$150,000
</td>
<td valign="top" width="106">
6.2%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Norlane</a>
</td>
<td valign="top" width="106">
3214
</td>
<td valign="top" width="106">
$200,500
</td>
<td valign="top" width="106">
6.2%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Eildon</a>
</td>
<td valign="top" width="106">
3713
</td>
<td valign="top" width="106">
$183,750
</td>
<td valign="top" width="106">
6.1%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Melbourne</a>
</td>
<td valign="top" width="106">
3004
</td>
<td valign="top" width="106">
$475,000
</td>
<td valign="top" width="106">
6.1%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Benalla</a>
</td>
<td valign="top" width="106">
3672
</td>
<td valign="top" width="106">
$208,750
</td>
<td valign="top" width="106">
6%
</td>
</tr>
<tr>
<td valign="top" width="106">
<a href="/news">Dennington</a>
</td>
<td valign="top" width="106">
3280
</td>
<td valign="top" width="106">
$325,001
</td>
<td valign="top" width="106">
6%
</td>
</tr>
</tbody></table>
Source <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
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Victoria's top 30 highest rental yield suburbs: From Nhill to Dennington via Melbourne 

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The OECD this week declared the bleeding obvious. The world economy is slipping back towards recession! It was made very clear who was to blame for this slide and yes, you guessed it, politicians!
<a title="Kicking the can towards a global recession" href="https://www.businessspectator.com.au/bs.nsf/Article/OECD-economy-recession-Greece-debt-crisis-GDP-pd20121128-2FRNG?OpenDocument&amp;src=mp" target="_blank">Kicking the can towards a global recession</a>, a sensitive issue where re-election is paramount over effective policy strategy. “The Australian economy is forecast to grow by 3.25% in 2013, but it ‘remains marked by substantial sectoral disparities’." The government may need to slow budget consolidation and will definitely need to boost “productivity by pursuing reforms in taxation, infrastructure and innovation”. Unlikely, as 2013 is an election year, which will be all about promises that will never see the light of day.
Coincidentally, this week marked the 22nd anniversary of the Paul Keating-led ‘recession Australia had to have’ and this week it was announced <a title="recession possible in 2014, economist warns" href="https://www.smh.com.au/business/recession-possible-in-2014-economist-warns-20121127-2a4jy" target="_blank">recession possible in 2014, economist warns</a> – a theory I don’t doubt for one single moment. What needs to be closely scrutinised here is how businesses have adapted to the brave new online world where consumer behaviour has radically changed the “acquisition” mentality.
I may have been harping on with this conspiracy theory for over a decade however, I predict that 2013 will be the year of online and I will have more to say about this next week. Follow the bouncing ball has now been replaced with eyeballs. <a title="Online shopping in Aust growing rapidly " href="https://www.smh.com.au/small-business/trends/online-shopping-in-aust-growing-rapidly-20121128-2acz8" target="_blank">Online shopping in Aust growing rapidly, </a>the National Australia Bank’s Online Retail Index shows that online sales grew 26% year-on-year to October, compared with 14% year-on-year, in May. Consumers have now moved to cyber shopping markets, and the problem within Australia is that traditional markets simply don’t get or understand this seismic shift to the new cyber markets.
Recently, I suggested that at a bare minimum, 30% of Australia’s 10,000 + real estate agencies will be broke within 24 months simply because the cost of property transactions within Australia is too expensive. This takes us directly to the Australian OECD warning regarding taxation. Australian consumers are now saving and not spending!
<img src="/images/stories/2012/12/simeondec3.jpg" width="470">
<img src="/images/stories/2012/12/simeondec32.jpg" width="470">
No better example than <a target="_blank" href="/news" title="smaller banks and non – banks to offer borrowers better mortgage deals in 2013: Delloitt">smaller banks and non – banks to offer borrowers better mortgage deals in 2013: Delloitte</a>, simply because consumers are eyeballing the cyber markets from the comfort of their homes as against making appointments to be interviewed by a bank manager. Further evidence<a target="_blank" href="https://www.smh.com.au/business/boom-days-are-over-for-banks-kelly-20121128-2ae60" title=" boom days are over for banks: Kelly"> boom days are over for banks: Kelly</a>, where Westpac’s chief executive announced the days of Australian banks posting returns on equity of 20% or more are long gone.
Let’s look at the <a target="_blank" href="/news">Mosman</a> example, where this week we extrapolate the data for Mosman 2012 apartment and townhouse sales – and yes, the market this further declined.
<ul>
<h4>MOSMAN APARTMENT AND TOWNHOUSE SALES – 2010, 2011 AND 2012</h4>
Source: Domain Property Data
<li>2012 Sales – 370*</li>
<li>2011 Sales – 472</li>
<li>2010 Sales – 467</li>
*Sales still being compiled although it would be reasonable to suggest that sales will be significantly down on previous years. On these figures sales are 22 percent down on 2011.
<li>2012 Total Value – $296,096,984*</li>
<li>2011 Total Value – $379,388,525</li>
<li>2010 Total Value – 379,388,525</li>
*Sales still being complied although on this data another 22 percent reduction on 2011.
<li>2012 Average Price – $800,262</li>
<li>2011 Average Price – $803,789</li>
<li>2010 Average Price – $848,928</li>
</ul>
Next week, we will examine Mosman house data comparisons.
Property listings in Mosman keep declining and Mosman houses fell below the dreaded 100 mark this week. It is most obvious that that the 2010 and 2011 housing markets bear no resemblance. There is a strong argument that in the 2012 market, “the price is right”. Next year, we will have a federal election, and property confidence is generally much stronger under a Liberal government.
Another grubby week of politics <a target="_blank" href="https://www.smh.com.au/opinion/political-news/gillard-abbott-in-pitched-battle-over-awu-affair-20121129-2ah0u" title="PM responds ‘So what?’ to new AWU claims">PM responds ‘So what?’ to new AWU claims</a> where despite four files conveniently going missing, the major file is in Seattle. Former Slater &amp; Gordon partner Nick Styant-Browne conveniently copied the file and keeps drip feeding the Australian media. I think PM Julia Gillard is gone. The Gillard government spent a motza to get a seat on the United Nations General Assembly then abstained on its first vote. <a target="_blank" href="https://www.smh.com.au/opinion/political-news/gillard-reassures-israel-of-backing-despite-un-vote-20121128-2ae77" title="Gillard reassures Israel of backing despite UN vote">Gillard reassures Israel of backing despite UN vote</a>. More a case of <a target="_blank" href="https://www.dailytelegraph.com.au/news/gillards-un-vote-backdown-to-save-her-job/story-e6freuy9-1226525284024" title="Gillard UN vote backdown to save her job">Gillard UN vote backdown to save her job</a>, which would explain precisely what the OECD was alluding to.
The Reserve Bank of Australia (RBA) meets tomorrow for the final meeting of 2012. My prediction? The cash rate will be dropped -0.25 points to 3% to match the global fiinancial crisis (GFC) rate in April 2009 at 3%. The ‘World’s Greatest Treasurer’ will announce that under Australian Labor, it delivers the lowest interest rates. Some may conclude that it is more a case of its economic policies – refer OECD for example A.
Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" target="_blank">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
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robertsimeon-hRNTwJyXkQ

One-third of real estate agencies likely to go broke in next two years

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Why is Sydney's housing market so expensive? Sometimes when people try to answer this question, they point out that more expensive property prices are offset by higher wages in Sydney; and this argument is, at least to some extent, true.  Sydney wages are higher, but not to the same extent as property prices compared with other cities.  Based on data released by the Australian Bureau of Statistics last week, the gap between Sydney and Melbourne wages is only around $5,000 (9.2%) per annum, Brisbane is fairly similar, with wages being $5,100 (9.4%) lower per annum.  Perth wages are roughly on par with Sydney’s, showing a $490 (0.9%) difference.  The largest gap between Sydney wages and the other capital cities is apparent in Hobart, where the difference is a more significant $10,500 (19.3%) per annum.
The data released by the ABS is unfortunately quite lagging, being current to June 2010.  To compare apples with apples, we have provided median dwelling prices from June 2010 to highlight what might be described as some inequity of dwelling prices when we compare Sydney incomes with dwelling prices.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/12/rpdec3.jpg"><img src="/images/stories/2012/12/rpdec3thumb.jpg"></a>
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/12/rpdec31.gif"><img src="/images/stories/2012/12/rpdec31thumb.gif"></a>
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/12/rpdec32.gif"><img src="/images/stories/2012/12/rpdec32thumb.gif"></a>
 
<hr class="system-pagebreak">
 
Looking at the differences between average wages and median dwelling prices, the only capital city where the comparison of incomes and dwelling prices is roughly equitable is in Melbourne.  Melbourne dwelling prices and incomes are roughly 9% lower than Sydney’s.  A more up-to-date look at current dwelling prices shows that in October this year, Melbourne’s median dwelling price is now 11% lower than Sydney’s.
Looking at Australia’s third largest city, Brisbane, shows that incomes are 9% lower than Sydney’s, but dwelling prices are 15% lower.  Since June 2010 the gap between Brisbane and Sydney dwelling prices has widened to nearly 25%.
Adelaide dwelling prices are 25% lower than Sydney’s, while wages are tracking 17% lower.  Based on median prices to October 2012, the gap between Sydney dwelling prices and Adelaide’s has widened to 30%.
Average wages/salaries across Perth are only 1% lower than Sydney’s, but median dwelling prices are 7.2% lower.  The October median dwelling price data now shows Perth dwellings to be 13% more affordable than Sydney’s.
The gap between Sydney and Hobart wages and prices is the largest of any city, with Hobart wages averaging 19% lower than Sydney’s, however, dwelling prices were getting close to being 40% lower than Sydney’s back in June 2010.   More recent October data shows the median dwelling price in Hobart to be 43% lower than Sydney’s.
The average wage in Darwin is only 2% lower than Sydney’s, however, median dwelling prices are 10.5% lower.  Darwin is one of the only cities were the gap between median dwelling prices has narrowed since 2010 (a reflection of the recently strong growth conditions in Darwin), with the Darwin median dwelling price recorded at 8.3% lower than Sydney’s median dwelling price in October 2012.
Finally, in Canberra, the average wage/salary is 6% higher than Sydney’s, making Canberra Australia’s highest paid capital city.   While incomes are higher than Sydney’s, dwelling prices were 13% lower than Sydney’s back in June 2010.  Based on the October median price data, Canberra dwellings are now 7.5% more affordable than Sydney’s.
The question still remains, though, why are Sydney prices so much more expensive than other capital cities?  Like any pricing-related question, the answer often comes back to the relationship between demand and supply.  From a demand perspective, Sydney has the largest population of all the capital cities and the second highest level of population growth (based on raw numbers rather than percentage change).  New South Wales also attracts the largest number of overseas migrants.
From a supply perspective, the inefficiencies surrounding land release and development across New South Wales has resulted in an insufficient level of new dwelling construction, creating a housing market which is undersupplied.  The undersupply of housing tends to place some upwards pressure on prices.
Other reasons, apart from the higher incomes argument, likely come down to a handful of other factors.
<ul>
<li>Geographically, development and urban expansion in Sydney is curtailed by the large tracts of national park and the large number of waterways located across the Sydney metro region</li>
<li>Sydney is one of Australia’s most mature housing markets.  The long-established inner city and coastal areas tend to push the overall median prices up.  In fact, the outer-western and northern fringes of the Sydney metro region provide some of the most affordable capital city housing markets across the major capitals.</li>
<li>Another factor is the high cost of vacant land across Sydney, which is much higher than any other capital city.</li>
</ul>
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au" target="_blank">RP Data</a>.
 
<ul></ul>
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ckusher-ujnxiKuFQs

Why is Sydney's housing market so expensive?: Cameron Kusher

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Investors of anything should only ever buy investments that stand alone as strong and viable propositions not because of tax benefits.
It’s no secret that I am not a fan of NRAS property.  I’ve written extensively about it since it was first introduced and watched how an essentially great scheme has been prostituted for gain for greedy developers and their marketers.
In its purest form, NRAS was a scheme designed for large institutional investors, such as public superannuation funds and insurance companies.  They would undertake these developments, which were built in lots of 100, and gain the tax credits for the lot.  It was a good deal and a good idea, providing discounted rent to para professionals who would, it was claimed, make suitable tenants. The scheme was not designed for individual investors.  In fact the NRAS Policy Guidelines stated:
The scheme encourages large-scale investment in affordable housing so it is not directly available to small-scale, private, individual investors in the rental property market. 
Somehow, probably due to one of those tax office loopholes, some of the developments were sold to individuals as single lots.  The powers that be clearly didn’t sew up the scheme tightly enough, and someone drove a Mack truck through the space.  I still remember the day the tax office woke up and realised that it had no method in place to deal with the tax returns of individuals who bought them, and it scurried about with transitional arrangements to cope with the issue.  Lo and behold a precedence was created, and before we knew it whole companies were set up to move this latest tax advantaged product.   NRAS Policy Guidelines were amended to include:
Individual investors may wish to participate in the scheme as part of a non-entity joint venture or another joint venture arrangement or by purchasing NRAS dwellings from an approved participant. 
It’s pretty easy to counter the flippant claims of NRAS marketers when they use simplistic three line statements espousing the benefits of buying one – just buy it, discount the rent and get tax benefits–with a plethora of dangers;
<ol>
<li>The middlemen do make big commissions – I’ve not seen one less than $20,000, and you’d have to be very dull to be convinced that this isn’t built somewhere into the price.</li>
<li>They are released in lots of 100 – that’s a very large influx of competition all at the one time – affecting both the capital value and the potential rent return. Your 20% discount may end up being a 20% discount to a rent that has already dropped by 30% because of oversupply!</li>
<li>They are rarely built in hotspots, and when they are, well, refer to point 2!</li>
</ol>
 
<hr class="system-pagebreak">
 
But in a recent email to me from an investor who recently felt similar concern to mine over the legitimacy, or otherwise, of these investments, far greater issues were brought to my attention.  Proponents may claim that in return for a financial loss each year of between $3,500 and $5,000 you get "tax-free" money of $9,980, but the writer of this email found that to be potentially misleading in the extreme.
This investor had such a great concern that he sought a private ruling, and to his alarm he found the following:
<ul>
<li>A portion of the rebates for this scheme ($2495) are provided by the state in which the property is built. As state governments cannot raise income tax, the portion of the rebates received from the state cannot be considered a tax offset. This portion of the rebates received is known as NANE income.</li>
<li>As entering the scheme is for the purpose of receiving a rental income and the NANE, claims related to the investment property must be apportioned.</li>
<li>On low rental properties, this can reduce claimable rental expenses by as much as 17%.</li>
</ul>
The investor who wrote to me wanted to be sure that he had it right, and so he telephoned the person who provided the ruling. This person advised that a further ruling was not necessary as the position is clear:  those costs relating to the scheme – being the initial NRAS set-up cost, the annual audit cost for scheme payment eligibility and the periodic rental market rates audit – are not considered expenses related to the derivation of assessable income.  Neither the NANE nor the Commonwealth tax offset, are considered assessable income.
He went on to apply this information to one set of figures provided by one of the many companies promoting NRAS, and found that the swing was $141 per week!  That pretty much wiped out the positive cashflow, and if the property could not actually be leased for the rent amount forecast by the seller (which is what I am finding with many of these once they are constructed and settled) it could leave unsuspecting investor in quite a financial pickle!
This was one smart investor who, rather than believe everything presented to him by a property seller, chose to do the due diligence himself.  Getting a private ruling was a good move, one all investors should take before taking the plunge on any scheme that sounds so good.
While I agree that NRAS isn’t olive trees or an emu farm, it’s still a tax scheme, and its opponents draw their comparison from this notional similarity, rather than from any physical likeness between the two.  It’s not the physical product itself which is being attacked – it’s the marketing of the tax scheme over the property itself.  Luring investors into a property based on getting tax benefits can be compared to stock market- based investments, as the results can be the same – the investor buys the asset for the overlying scheme, giving little consideration to whether the scheme is appropriate for them, or whether the underlying asset stacks up. Investors of anything should only ever buy investments which stand alone as strong and viable propositions – tax benefits, income guarantees or free holidays should only ever be icing on an already tasty cake.
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News.
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mlomas-KC9MUPZ6Ca

NRAS is a tax scheme; a property investment must stack up on its own: Margaret Lomas

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The Heilongjiang Feng Agricultural Group has completed the $29 million purchase of 23,000 hectares of land in Western Australia.
It was previously owned by Dennis Joyce's family companies.
The land includes several properties in the Great Southern, including around Newdegate and Lake King.
The arm of the state-owned conglomerate reportedly wants to buy and lease more than 100,000 hectares to grow grain for export to China.
The company acquired a $23.2 million holding last year in a move seen as creating a supply chain that will operate independently of WA grain handler CBH.
The 6,500-hectare farm near Ingerup was sold by farmer David Webster.
Heilongjiang Feng Agricultural is an arm of <a href="https://www.chinabdh.com/english/index.htm" target="_blank">Beidahuang</a> Group.
Earlier this month, Chinese conglomerate Shanghai Zhongfu secured a $700 million deal to lease more than 13,000 hectares of farm land in the Kimberley region for 50 years for sugar production.
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