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

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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When transferring property, stamp duty is or isn’t payable, depending on the transaction type and the family relationships of the people involved.

Conveyancing can be quite a complex area, so it’s important to keep up by checking the fact sheets at the Office of State Revenue (OSR) website.
This complexity also illustrates the benefits for people buying, selling and transferring property in using the professional services of a qualified settlement agent.
To be clear about when stamp duty is and isn’t payable, let’s look at the payment and exemption rules as they exist currently in Western Australia.
Most people are aware that eligible first home buyers pay no duty providing the sale price is under $500,000, but what about other types of transactions? What happens when ownership changes between family members even if no money changes hands?
In general, every change in ownership, with a handful of exceptions, and regardless of the consideration, will incur duty.
Not only do transfers to related parties incur duty they may also incur capital gains tax (CGT) if the property being transferred is an investment property, even if no consideration is paid.
This means that parents who add children to an existing title on the family home will incur duty.
The most common example of where stamp duty is not payable is with a family home and couples.
For example, a home may currently be owned in a husband’s name and he wishes to add his new wife as a joint tenant.
This ruling also applies to de facto couples, including same-sex couples. Stamp duty does not apply here.
If a property is owned by a family trust and it wishes to transfer the property to a beneficiary of the trust, providing certain requirements are met and all the OSR duty information requirements are satisfied, that may result in a nominal duty of just $20.
Some transfers between couples pursuant to Family Court Orders would also be exempt. The OSR fact sheet details this.
Transfers to remove persons from a title, e.g: where that person has died or as a result of a marital separation, do not necessarily incur additional duty.
If people are in the contract phase of buying property and they want to add or delete names on the title, providing the nominee is related to the original buyer this does not incur stamp duty. However, doing this after the property has settled will attract duty, so it’s important to get the timing right.
As you can see, there is almost no avoiding this payment, so it’s important to factor these costs into any property transactions you may be undertaking.
For more details go to: <a title="Office of State Revenue" href="https://www.finance.wa.gov.au/cms/section.aspx?id=209">www.osr.wa.gov.au</a>
David Airey is president of the <a target="_blank" href="https://reiwa.com.au/home/default.aspx">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx">reiwa.com</a>.
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Western Australian stamp duty 101

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It’s becoming more obvious that Australian politics is nothing more than smoke and mirrors. Fort Fumble this week released its <a title="Asian Century" href="https://asiancentury.dpmc.gov.au/" target="_blank">Asian Century</a> white paper. Australian business leaders doubt the government has the determination or resources to carry out the ambitious proposals – <a title="flat reception for white paper." href="https://www.smh.com.au/business/flat-reception-for-white-paper-20121029-28dsr" target="_blank">flat reception for white paper.</a> Alan Kohler wrote on Business Spectator <a title="White paper, wish paper " href="https://www.businessspectator.com.au/bs.nsf/Article/Australian-in-the-Asian-Century-white-paper-pd20121029-ZHRJS?OpenDocument&amp;emcontent_Kohler" target="_blank">White paper, wish paper</a>: "Reading the white paper called “Australia in the Asian Century” is a very surprising and uplifting experience: it lists all these wonderful things that are going to happen to our nation by 2025. I had no idea."
I did read the white paper, which took me back to the <a title="CEO – Pulse " href="https://www.businessspectator.com.au/bs.nsf/full-coverage?openview&amp;restricttocategory=ceo+pulse" target="_blank">CEO – Pulse, </a>where last quarter the CEO scorecard for the government’s performance in managing the economy was steady at 2.9 out of 10.
Remember the aim of past Treasury secretary Ken Henry’s tax review was to have a root-and-branch look at the Australian tax system by designing something that would/should position Australia to best deal with the challenges that lie ahead? History shows that next to nothing eventuated from the proposals so I believe my cynicism is well founded. Australia’s governments are not in a financial position to fund such far-fetched, imaginary proposals.
I’ll keep harping on because I believe Australia’s infrastructure problems have now reached diabolical proportions simply because we can’t afford to fund progress.
<a title="Future Fund not an infrastructure dump ground: Costello " href="https://www.businessspectator.com.au/bs.nsf/Article/Future-Fund-not-an-infrastructure-dump-ground-Cost-pd20121026-ZFQH2?OpenDocument&amp;src=mp" target="_blank">Future Fund not an infrastructure dump ground: Costello </a>which is a very fair assessment – it should not be used as a “dropping pond” for bad assets. Biggest embarrassment of the week <a title="$1b error: NSW swings from deficit to surplus " href="https://www.smh.com.au/nsw/1b-error-nsw-swings-from-deficit-to-surplus-20121031-28j8s" target="_blank">$1billion error: NSW swings from deficit to surplus </a>– hello! Only incompetent fools could make such an embarrassing error.
This takes me to the best article of the week (in my opinion) by Robert Gottliebsen – <a title="Removing the bloat from the public service." href="https://www.businessspectator.com.au/bs.nsf/Article/Removing-the-bloat-from-the-public-service-pd20121030-ZJS22?OpenDocument&amp;src=mp" target="_blank">Removing the bloat from the public service.</a> “Today’s graphs from Accenture should scare every Australian. We can’t even contemplate being a leader in Asia until we tackle the abysmal state of our federal, state and local public services. The inefficiency and waste in these public services is sucking Australia dry and Accenture warn that unless we do something about it, our ageing population means that Australia faces a grim future funding squeeze.”
Click to enlarge
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Two weeks ago we reported that the number of Mosman houses on the market was 22% down on this time last year. Last week brought a slight increase to 23%, this week it has climbed to 27%. We still predict this figure will jump as high as 35% in coming weeks.
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

Australia's infrastructure problems have reached diabolical proportions

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Most of us have focused on the cash rate cycle in recent times, but there’s another cycle I’m interested in: property.
Australian property prices were inflated leading up to the GFC, and then they started falling. Property prices fell more drastically in some of the major cities than in others. However, investment property was hit hard. Many investment apartments were liquidated, as households switched their outlook from debt to savings.
But it could be time to look again.
There are a few observations behind this: firstly, interest rates are near 50-year lows, so debt is cheap.
Secondly, rental vacancies in capital cities are low, meaning strong demand for rental properties.
Thirdly, although house prices are now moving upwards in some cities, it’s a slow recovery nationally, meaning there is value for smart buyers.
Lastly, employment is still strong in Australia, meaning you can find a lender for an investment property.
Where would you start? Personally, I would rather make a profit on my property and pay the tax than be negatively geared, which entails booking a loss. Going for “yield” means buying well and having good equity in the property, so the costs don’t overcome the revenues.
However, if you want to negatively gear a property you must ensure you have an adviser because the ATO does not accept mistakes in your calculations.
But for the basics of what to look for in an investment property, I really like the check list used by RUN Property:
Location: buy close to shops, train stations and schools; Scarcity: Art Deco and scarce architecture increases demand; Features: properties with views, outdoor living spaces or units with off-street parking; Demand: which can be seen in median valued properties, low rental vacancy rates and infrastructure which can support employment; and don’t forget capital growth and rental yield.
Now what about the ‘where’? Tim Lawless, RP Data national research director, has some great property figures via the RP Data Home Value Index. His research shows that, for the quarter, across the major cities, Darwin is the stand-out for rental yields: Darwin houses yielded (5.9%) and units (6%), while Melbourne houses (3.6%) and units (4.5%) were the worst-performing rental yielders in the eight major cities.
Most investors also look for capital gain in the property, and the RP Data figures are interesting for different reasons. In the year to October, only three cities’ dwellings have risen in value: Darwin (8.6%), Perth (3.5%) and Sydney (0.6%).
It’s worth looking also at supply. In Melbourne the supply question is still sorting itself out with apartments, which in the 12 months to October went backwards by 6%.
Regionally, it’s the mining areas where rental yields are strongest: the Bowen Basin and Port Hedland provide high gross rental yields.
When it comes to owning rental property, always do your homework, talk to experts and be realistic (not greedy).
And good luck.
Mark Bouris is executive chairman of <a target="_blank" rel="nofollow" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
Photograph of Port Hedland by J Thomas McMurray, courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a> 
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Do your homework and don't be greedy when investing in property: Mark Bouris

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The vast majority of economists still expect the RBA to cut the cash rate by 25 basis points to 3% on Melbourne Cup Day.
Some 20 out of the 27 economists polled by Bloomberg today expect the cash rate to be lowered on November 6 – just one fewer than the 21 who expected a rate cut when polled last week.
However, ANZ remains notably among those expecting rates to stay on hold.
“Following the slightly higher-than-expected third-quarter CPI inflation data last week we pushed back our call for a 25-basis-point cut in the cash rate from November to December," says ANZ.
“We did this not because we don’t think there are good reasons to lower rates now – we certainly do – but because the CPI outcome and somewhat better data flow from overseas complicates the picture.
“The RBA may choose to wait another month by which time they will have further labour market information and a better read on third-quarter GDP growth (from partial indicators).
“Market pricing suggests around a 50% probability of a rate cut next Tuesday,” says ANZ.
The other institutions not tipping a rate cut next week are Barclays Capital, Citi, Goldman Sachs JP Morgan, Merrill Lynch and TD Securities.
Westpac chief economist Bill Evans expects the Reserve Bank to cut the cash rate but highlights that there is considerable uncertainty about the Tuesday decision.
However, he says recent comments by deputy governor Philip Lowe, that the “very low interest rates in many other economies should not be seen as a good thing or something to aspire to” should not be interpreted to mean rates can’t go any lower.
Evans says if there is no move next week and there is no indication in the RBA’s monetary policy statement to the contrary, “then we can only conclude that the [September quarter] inflation report has (in our view unjustifiably) prompted the bank to delay any easing decision until there is more information available including the inflation profile".
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RBA still likely to cut the cash rate on Melbourne Cup Day: Bloomberg survey

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The Queensland government's well-documented cost-cutting drive has impacted on the performance of the Westlawn Property Trust, an unlisted property fund managed by Clarence Property.
In its latest newsletter to investors, Clarence Property, based in Ballina, writes that the vacancy rate at its 29 level office building at 307 Queen Street in the Brisbane CBD has increased from 4.91% to 19.56% following Queensland government staff cutbacks.
The building, which offers 20,000 square metres of lettable office space, currently has four floors vacant.
This compares to a vacancy rate across the whole portfolio of just 3.89% as of June 2012 an 19.1% improvement on the June 2011 vacancy rate of 4.81%.
“The government cutbacks, combined with a slowing in the mining industry are likely to create difficulty leasing this space in the near-term.
“This vacancy has an obvious detrimental impact on rental income,” says Clarence Property.
The trust paid investors a distribution rate of 4c per unit per annum for the year to June 2012, unchanged from the previous year, after reporting a 7.1% improvement in net operating profit of $5.46 million.
In its newsletter, Clarence Property notes that it has continued to monitor the trust’s cash flow position with a view to being able to increase the distribution rate, but due to the increased vacancy at 307 Queen Street it remains “unable to announce a distribution rate increase”.
A further update will be provided to investors in December.
Clarence Property managing director Peter Fahey described the 2012 financial year performance of the trust as “acceptable” in what transpired to be a “difficult leasing year”.
Looking ahead, Fahey says the trust expects “moderate returns from direct commercial property (office) over the next 12 months".
“Performance will be largely dependent on tenant demand. Vacancy levels in Australian office markets are expected to rise slightly as white collar employment growth continues to be modest at best.
“Vacancy rates in the Brisbane office market, where the trust has its largest exposure, are expected to increase over the next year or so as a result of government staffing cutbacks and a pause in the mining industry," he says.
Fahey says the trust’s primary short-term focus is to fill the vacant space at 307 Queen Street.
Clarence Property paid $76.5 million when it acquired the Queen Street office tower in September 2002.
In currently has a book valuation of $127 million and comprises 46% of the value of all the properties in the trust, which stands at $274 million.
Other properties in the trust include a five-storey office building at 29 Molesworth Street in Lismore leased to the NSW government and Family Law Court of Australia, the Byron West Shopping Fair in Byron Bay, the Easy T Centre in Robina and the Yamba Shopping Fair.
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Queensland government cutbacks hurt Westlawn Property Trust

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The number of residential properties listed for sale in Melbourne fell by 1.4% over the busy month of October, lending some support to what is considered an oversupplied housing market currently favouring buyers.
Melbourne online listings fell from 51,564 to 50,861 from September to October with year-on-year figures now down 0.8%.
This was the steepest monthly fall recorded of all the major capital city markets in contrast with the nation result which was virtually unchanged (up 0.3%) at 374,445 a mere difference of 1,071 listings compared with September.
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SQM Research managing director Louis Christopher called the October data a surprise result.
“We were expecting listings to rise in October following the steady result in September and to be fair some capital cities have recorded a rise, but overall it is becoming clear to us that this is an abnormal result for this time of year and suggests to us that stock is being absorbed by buyers and/or vendors have been withdrawing their listings.
“We are starting to believe that it is the former rather than the latter,” he says. Matching strong recent price gains, Darwin registered the strongest decline in residential listings of all capital cities falling 2.7% to just 1,166 properties for sale – down 26.3% year-on-year.
In contrast, Sydney recorded a 4.5% increase in listings over October to 31,773 while Perth gained 1% to 17,689.
This was a reversal of what happened in September, the first month of the spring selling season, when Melbourne recording a 0.7% rise in online residential property listings while both Sydney (-2.9%) and Perth (-3%) both recorded noticeable declines.
However, both Perth and Sydney listings are more than 10% down on a year ago while Brisbane listings are down 5.5% (28,585) on a year ago, following a 0.9% fall over October.
RP Data-Rismark figures show a 0.8% rise in the Melbourne house price to the October quarter to a median of $508,000 while unit prices are down 1.3% to a median of $420,000.
RP Data senior research analyst Cameron Kusher says he expects Melbourne property prices to bounce along near the bottom for the next 12 to 18 months.
In October BIS Shrapnel managing director Robert Mellor predicted an exodus of Melbourne investors with a big rise in new apartments being completed in Melbourne over the next two to three years exacerbating the current oversupply of housing.
According to property market analyst Michael Matusik ,since 2009, Victoria has created 69,000 too many new dwellings, representing “about a two-year oversupply based on the current annual underlying demand for 34,000 new dwellings across the state”.
SQM Research notes that Canberra (6%) and Sydney (4.5%) have experienced the most noteworthy month-on month increases.
“As the spring selling season is well under way, the increases in these capital cities do not come as a surprise; what is surprising however, is that stock levels have not swollen dramatically during spring as is usually seasonally expected,” says the firm.
“This is perhaps a potential indicator that the market has begun to recover – albeit modestly."
 
 
 
 
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Declining October Melbourne residential listings bring some balance to market

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A guitar shop on trendy Dank Street in Waterloo in Sydney’s inner south is being marketed at small investors and those with self-managed super funds offering an attractive gross yield of 8%.
The guitar shop occupies shop 6 at 9-15 Dank Street, a mixed-use building developed and built by family-owned property development and investment company Manicaland five years ago.
The 69-square-metre shop has an asking price of $474,000 plus GST and is currently leased to Playa Playa on a five-year lease, which commenced in August this year with a five-year renewal option.
Playa Playa is paying a starting rent of $38,000 per annum gross plus  GST with annual rent increases of 3%.
The property is being marketed by Anthony Tripodi and Steve Hawksley from City Alliance Property – Waterloo.
Alex Zylberberg from Manicaland tells Property Observer that looking at the profile of buyers of similar properties sold in the same building in the last couple of years suggests it will appeal to “small mum and dad investors who might already have a residential portfolio and are looking to diversify into commercial property”.
He says it would also appeal to small self-managed super funds.
“We are currently working with a couple of enquiries,” says Zylberberg.
Dank Street is the retail heart of urban regeneration in Waterloo, featuring cafes, boutique stores, galleries and studios, and is especially popular on weekends.
Well-known establishments in Dank Street include the Dank Street Bakery and supermarket Fratelli Fresh.
According to census 2011 figures <a href="/news">Waterloo </a>is Australia’s second most upwardly mobile suburb, with weekly household income rising 167% between 2001 and 2011.
Just around the corner from Dank Street, the Amelia Street Café premises measuring 70 square metres are also up for sale with an asking price of $485,000 plus GST.
The property is being sold by Michael Gould of Deans Property Broadway.
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Gross yield of 8% on offer for Dank Street guitar shop in Sydney's Waterloo

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Aussie Home Loans founder John Symond says the Reserve Bank must cut the cash rate on Melbourne Cup Day (November 6).
“Australia continues to be susceptible to economic shocks from overseas and small retailers and businesses are doing it tough as we head into the crucial Christmas retail season," Symond told Fairfax.
According to Symond, a rate drop would boost retail sales and the rest of the economy – especially employment – “providing much needed confidence to consumers”.
His calls for a rate cut come as the certainty of a Melbourne Cup rate cut shrinks from a sure bet a few weeks ago to now only a "50-50 call", according to Commonwealth Bank chief economist Michael Blythe.
Symond has been critical of the Reserve Bank for being too slow to move on rates in the past, accusing governor Glenn Stevens  and the RBA board of being<a href="https://www.propertyobserver.com.au/residential/recovering-housing-market-at-630-on-the-property-clock-with-no-risk-of-a-housing-bubble-john-symond/2012101157115"> “asleep at the wheel”.</a>
He has also dismissed arguments that lower interest rates could fuel a housing bubble.
“I am confident, notwithstanding a lot of hype from offshore analysts about a housing bubble, of Australia’s fundamentals,” Symond said in a speech in October.
Among those who disagrees with Symond on the need for a November rate cut is Annette Beacher, head of Asia-Pacific research at investment bank TD Securities.
Beacher says an expansion in Chinese manufacturing (as seen in an improvement in the Chinese manufacturing index from 49.8 to 50.2 in October) as well as a stronger than expected rise in inflation in the September quarter are two reason why the RBA should pause in November.
“The RBA can afford to pause at 3.25%t and 'wait and see' for the next round of monthly data, as well as assess the impact to date of previous easing," she said in a note to clients.
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RBA must cut the cash rate on Melbourne Cup day: John Symond 

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As lenders continue to cut fixed-rates, demand for this mortgage type rose to a six-month high, according to October mortgage approval figures from Mortgage Choice.
Over the month, 22% of all new home loans taken out by new borrowers via a Mortgage Choice broker were for fixed rates, just above the 12-month average of 21%.
The most recent lender to cut its fixed-rate mortgages was Credit Union Australia (CUA), the nation’s biggest customer-owned lender, which dropped its one, two and three-year fixed rate home loans to 5.3% this week, following moves by other lenders throughout the month.
Currently, <a target="_blank" href="/news">three lenders offer a one-year fixed rate home loan under 5%</a> while Mortgage Choice says seven lenders on its panel dropped their fixed-rate loans over the past week.
Of those borrowers who did lock in a fixed-rate, the most popular term (74% of all fixed-rate home loans) was three years, followed by two-years (16%).
Only 5% of fixed-rate borrowers chose a one-year fixed rate term.
“Following speculation last month of fewer rate cuts to come this year, and the latest CPI data hinting at less rate activity, it comes as no surprise that borrowers are taking advantage of the good fixed rate loan offers available. By securing their interest rate they are also locking in peace of mind over the next few years," says Mortgage Choice spokesperson Belinda Williamson.
The Mortgage Choice October figures also show a considerable uplift in the preference for ongoing discount rates loans, reaching 40% of all new loans approved. This follows two consecutive monthly drops in demand in August and September.
 “There was a downward trend on the popularity of discount rates loans – where the loan is discounted over the entire loan term – in the months before October, as economists were predicting a number of rate cuts by the Reserve Bank before the end of the year,” says Williamson.
“This month appeared to buck this trend however, as we saw an increase in ongoing discount rate loan appeal. As the talk of further rate cuts dries up, this increase shows more borrowers are now shopping around for long-term bargains.”
Standard variable rate loan demand fell by three percentage points to 15% of all new loan approvals, while the preference for basic variable rates remained steady at 19%.
Demand for line of credit loans - popular with investors - fell by one percentage point to 3% and introductory rate popularity remained at less than 1%.
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Demand for fixed-rate mortgages climbs to six-month high: Mortgage Choice

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<h2>We are returning to moderate housing price growth, but no bubble: Terry Ryder</h2>
Talk is cheap because supply exceeds demand.
The cheapest talk comes from economists speaking about real estate, because supply (endless) is hugely in excess of demand (zero). There’s also a low price on the articles of most journalists about property because the demand is for a David Jones product but most of the supply is coming from Gone Bonkers.
So, after two years of price decline or stagnation in our major cities, at the first sign of price recovery they’re out there talking up a bubble.
Yes siree, if you crave a bit of media limelight the shortest route is to contact a lazy journalist and give them a sound byte with the word “bubble” in it.
Data from the various research sources indicates we’ve had three or four months in which the average result across the state and territory capital cities has been a rise in median prices.
I’m not sure how reliable the data is, because organisations like RP Data are so desperate to be first with the news that they’ve been calling the monthly price movement on the last day of the month, something that’s difficult to do credibly. Indeed, this week RP Data declared the October price movement 10 days before the end of the month. Is the need for publicity really that desperate?
Nevertheless, the trend evident in the figures from various research sources is one of big-city prices now starting to trend north, slowly.
Further to that, a number of forecasters are predicting rising prices in the near future. BIS Shrapnel is tipping growth in all eight state and territory capitals in the next three years, with the strongest to be in <city>Perth</city>, <city>Brisbane</city>, <city>Sydney</city> and <city>Darwin</city>, where the rises are expected to be solid but not spectacular.
National Australia Bank published its survey of Australian property professionals, most of whom are expecting moderate growth in the next 12 months.
So we appear to have a return to price growth, though small, with the prospect of more moderate rises.
But there’s no middle ground with media. It’s either boom or bust. Now it seems even the smallest rise in house prices instantly has the label “bubble” slapped on it. Alternatively, a cut in interest rates gives rise to fears of a bubble.
David Uren, who writes about economics for The Australian, recently tried to link fears of a house price boom in <country-region>Australia</country-region> into an incoherent rave about inflation and global financial instability. Some fairly innocuous remarks by business leaders have been portrayed by journalists as fears about a bubble, when the people quoted never used that terminology.
Bubble talk has been around for the past five years. It started when a metropolitan newspaper journalist misquoted RBA governor Glenn Stevens and the mistake was repeated as fact by media outlets around the country. Economists and journalists have been promoting bubble talk ever since, although Stevens never said the words reported. It wasn’t merely a beat-up – it was a lie.
I’m still waiting for someone who subscribes to the bubble theory to actually define it. So far, nobody has. The term implies that something has been over-inflated and will burst.
Despite all those dire predictions about a collapse in our home prices since 2007, mostly from publicity-seekers based overseas, the forecast implosion hasn’t happened.
So why are we talking about a bubble now, when capital city prices have barely budged after two years of mediocrity? Because we’re beset with writers and commentators who are shallow, lazy and like the sound of their own voices.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and is a regular Property Observer columnist. He can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
 
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<h2>Australian residential property market currently experiencing a bubble: Philip Soos</h2>
Recently, Australian property analyst Terry Ryder, in <a href="https://www.propertyobserver.com.au/residential/we-are-returning-to-moderate-housing-price-growth-but-no-bubble-terry-ryder/2012102257367">an article</a> on Property Observer, voiced complaints about housing bubble advocates. His issue is “waiting for someone who subscribes to the bubble theory to actually define it. So far, nobody has. The term implies that something has been over-inflated and will burst.” Of course, Steve Keen has already done so in his voluminous and critical work reaching back for over a decade.

If Ryder has difficulty in finding someone who has constructed an accurate definition of an asset bubble, the work of the late US post-Keynesian economist Hyman Minsky is recommended reading. Minsky developed a theory called the ‘financial instability hypothesis’, theorising that financial markets are not very efficient and continually misallocate substantial amounts of credit into asset markets, creating pyramid schemes or bubbles (Minsky called them Ponzi schemes, named after the fraudster Charles Ponzi).[1]

He defined three types of finance: hedge, speculative and Ponzi. Hedge finance: income flows from an asset are sufficient to pay down both principal and interest on the debt used to finance the asset purchase, and asset prices are based upon fundamental or intrinsic value. Speculative finance: income flows cover only interest repayments, not loan principal, requiring debt to be continually rolled over from the current time period to the next. Businesses or individuals may experience financial stress, but it is not widespread and fundamentals valuations are kept largely in check. Ponzi finance: income flows cover neither principal nor interest repayments. This leaves asset owners completely reliant upon escalating capital values in order to realize substantial capital gains at sale to meet the cost of principal and interest. Prices are completely delinked from fundamental valuations at this stage, resulting in an asset bubble.
Simply put, if gross rental income pays down neither interest nor principal repayments of mortgage debt on aggregate (including other property-related costs) and is sustained over a number of years, a housing bubble exists by this definition. Even better, there is plenty of evidence to show that the residential property market is currently experiencing said bubble. The following figure shows a long-term housing price index for Australia, adjusted for inflation and quality.
Figure 1: Australian Median Capital Cities Housing Price Index 1880-2011, 1880=100[2] Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/soosnov1.gif"><img src="/images/stories/2012/10/soosnov1thumb.gif"></a>
The 1996-2010 period is easily the largest boom on record. This meteoric surge in housing prices, however, is not proof in itself of a bubble; more evidence is needed. Data from the Australian Tax Office shows that, on aggregate, residential property investors have been running substantial net income losses since 2000-01. The same would hold true concerning owner-occupiers and imputed rental incomes.
Figure 2: Residential Property Investor Net Rental Income 1993-94 – 2009-10[3] <a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/soosnov2.gif"><img src="/images/stories/2012/10/soosnov2thumb.gif"></a>
The reason for these sustained net income losses is the combination of general running costs with interest and principal repayments, as shown in the next figure.
Figure 3: Deductions and Repayments as % of Gross Rental Income 1993-94 – 2009-10[4] <a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/soosnov3.gif"><img src="/images/stories/2012/10/soosnov3thumb.gif"></a>
In 2009-10, the negatively geared cohort, who comprise 63% of the residential property investor market, are precariously positioned under a staggering amount of mortgage debt. The following figure shows a breakdown by income tax bracket.
Figure 4: Deductions and Repayments as % of Gross Rental Income 2009-10[5]
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/soosnov4.gif"><img src="/images/stories/2012/10/soosnov4thumb.gif"></a>
The reason why costs outweigh gross income is because Australians have burdened themselves with the largest household debt increase in history to engage in an orgy of residential property speculation.
Figure 5: Household Debt as % of Nominal GDP 1861-2011[6] <a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/soosnov5.gif"><img src="/images/stories/2012/10/soosnov5thumb.gif"></a>
In conclusion, Minsky’s financial instability hypothesis helps to integrate the occurrences of why housing prices and the proportion of household debt to the economy (GDP) have boomed while net income losses are sustained. That Australia’s residential property market has resembled Ponzi finance for the last 10 years is nothing short of astonishing (longer if counting 2010-11 and 2011-12 as there is a substantial lag in making tax data available). The market would have collapsed during the global financial crisis in 2008 were it not for a fresh first-home owner’s boost (FHOB) re-inflating housing prices to a new, higher peak.
Although Ryder claims that bubble advocates are “publicity-seekers” and “shallow, lazy and like the sound of their own voices”, outbursts of ludicrous pettifoggery should not deter the presentation of sound evidence.
References
[1]. Minsky, Hyman P. (1992). “The Financial Instability Hypothesis,” Working Paper No. 74, Levy Economics Institute of Bard College, New York.; Minsky, Hyman P. (2008). Stabilizing An Unstable Economy, 2nd Edition. United States: McGraw-Hill.
[2]. Stapledon, Nigel D. (2007). “Long Term Housing Prices in Australia and Some Economic Perspectives,” PhD Thesis, University of New South Wales.
[3]. ATO Taxation Statistics 2001-02 through to 2009-10.
[4]. ATO Taxation Statistics 2001-02 through to 2009-10.
[5]. ATO (2012; personal communication).
[6]. RBA (2012; personal communication).
Philip Soos is a researcher at the School of International and Political Studies at Deakin University. 
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