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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Meriton has enough development land in its Sydney war chest for now and will not buy any more development sites unless the deal is “very attractive”, according to founder Harry Triguboff.
Australia’s biggest apartment builder has acquired six sites in Sydney this year at a combined cost in excess of $200 million.
The sites have the capacity for 2,000 apartments worth around $1.3 billion.
“We will only buy more land now if we consider the deals are very attractive,” said Triguboff in a report in The Australian.
“We have enough stock of land to develop and it is not necessary to take on debt.”
Meriton most recent development site purchase was a $21 million acquisition of a former industrial property in Rosebery in inner south-east Sydney with plans to build 200 apartments.
Triguboff’s biggest site acquisition this year was in Chatswood on Sydney’s north shore, with approval for 547 apartments. Meriton paid $50 million for the Thomas Street car park with plans for two towers of 29 stories each, one of which will be retained by Meriton as serviced apartments – a growing part of the Meriton business.
Other acquisitions included $48.5 million spent to acquire the controversial Lewisham Estates development site which has amended potential for between 377 and 430 units.
Meriton has also acquired sites in Talavera Road in North Ryde (423 units), South Dowling Street, Zetland (400 units) and McEvoy Street. Waterloo (200 units)
As it prepares to embark on its new building program, Meriton is also seeking to sell around 700 of its older Meriton apartments, some up to nine years old.
Meriton receives the full purchase price on older units immediately but must wait until new projects are completed to receive full payment on new apartment sales.
Older apartments up for sale include 400 units at South Dowling Street, Waterloo (priced around $600,000), 100 waterfront units at Abbotsford (around $650,000) as well as 170 units on the Gold Coast (around $420,000).
Triguboff expects interest rates to fall further making it cheaper to buy an apartment then rent.
He says borrowers can source variable loans as low as 5.5% well below the advertised variable rates of the banks at around 6.5%.
He expects rates to fall to around 4% and says rents are not rising.
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Debtless Meriton halts Sydney apartment site buying spree as it seeks to sell 700 older apartments: Harry Triguboff

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A four month mini-rally in capital city dwelling values has ended, with RP Data-Rismark recording a 1% fall over the eight capital cities in October to a median national dwelling value of $460,000.
The small fall in October follows dwelling value gains of 1.4% in September, no change in August, a 0.6% rise in July and a 1% gain in June.
A noticeable decline was the 3.2% fall in Melbourne unit values over the month, down 6% year-on-year to a median of $420,000.
“In particular, Melbourne unit values have shown a greater decline in values than any other mainland capital city over the past 12 months,” notes RP Data-Rismark.
Market commentators have warned that the Melbourne apartment market is heading into a situation of oversupply, particularly due to the large number of projects underway in the city and <a target="_blank" href="/news">Docklands</a>.
Click to enlarge <a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/rpnov1.gif"><img src="/images/stories/2012/10/rpnov1thumb.gif"></a>
Delivering housing forecasts last month, BIS Shrapnel managing director Robert Mellor said there would a big rise in new apartments being completed in Melbourne over the next two to three years, exacerbating the current oversupply of housing in the city.
RP Data research director Tim Lawless says the weak October result highlights how “delicately balanced the Australian housing market is”.
“Whether the October decline is a blip on the path to a recovering market or a sign of further weakness is yet to be seen.
“Other indicators are suggesting the market has gathered some strength, with auction clearance rates holding firm around the 60% mark across the two major auction markets and owner-occupier housing finance numbers showing steady improvements since February 2012, albeit from a very low base.”
However, he also points out that despite the current cash rate of 3.25% being just 25 basis points higher than the “emergency lows seen in 2009, there has yet to be a real improvement in consumer confidence or housing market transaction volumes”.
“Until we see optimists outnumber pessimists in consumer confidence surveys, a recovery in the housing market is likely to remain precarious,” he says.
<hr class="system-pagebreak">
Among the major capital city markets, the greatest decline was recorded in Adelaide where dwelling values declined by 2.4% to a median of $370,000 though they are still up for the quarter (1.3%).
Melbourne dwelling values fell 1.1% to a median of $470,000 to leave its housing market flat (0.4%) over the past three months.
Sydney property values fell by 0.9% to a median of $530,000 to be largely unchanged on a year ago (up 0.6%). It remains the strongest performing mainland capital city market for 2012 up 2.4% since January.
Brisbane also registered a 0.9% decline to a median of $410,000 – down just 0.8% year-on-year.
The stand-out major capital city market remains Perth, which recorded a modest 0.4% gain to $460,000, with property values up 3.5% since October last year.
Among the smaller markets, Darwin continues to surge, with a 4% rise recorded over October to a median of $486,000 and up 8.6% on a year ago.
Hobart (down 4.5% in October, 4.6% year-on-year) and Canberra (down 1.3% in October and 1.6% year-on-year) continue to fall.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/rpnov12.gif"><img src="/images/stories/2012/10/rpnov12thumb.gif"></a>
Unit values were slightly more resilient that houses in October, declining 0.6%, compared with the 1% decline for houses.
Rismark International’s CEO, Ben Skilbeck, commented, “We are starting to see a reversal of the relatively poor performance of the top 20% of the market as compared to mid-market segment. Over the last quarter the top 20% of suburbs by price have outperformed both the mid-market and the bottom 20%.”
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'Precarious' housing market recovery halts in October: RP Data-Rismark

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The Housing Industry Association just won’t let up. The voice of negativity in the building industry just keeps pumping out pessimism and then wonders why no one wants to buy new homes.
The latest in the HIA production line of paranoid outbursts proclaims there is “a dire lack of confidence towards housing”. This is nonsense and flies in the face of all the evidence.
Here are the facts about Australian residential property. Loans to owner-occupiers are 6.4% higher than last year. Loans to first-home buyers are up 18.7%. Loans to property investors are up 4.1%, with double-digit rises in Queensland, Western Australia and the Northern Territory. Rents have risen in six of the eight capital cities this year, including big increases in Perth and Darwin. In the September quarter the home value indexes rose in seven of the eight capital cities.
All these figures indicate a rise in confidence towards housing, a sentiment reflected in the latest MFAA House Price Expectations Index, <a target="_blank" href="https://www.propertyobserver.com.au/residential/auction-clearance-rates-largely-irrelevant-but-confidence-perhaps-returning-to-property-market-terry-ryder/2012102957504">which I discussed in my column on Tuesday</a>. The index report discussed rising levels of confidence, with three-quarters of survey respondents expecting prices to remain steady or rise further in the December quarter.
There’s only one indicator that’s currently delivering a negative message. That’s the level of purchases of new dwellings. September recorded the third consecutive fall in new home sales.
But this does not reflect “the persistent lack of confidence towards housing in 2012” claimed by the HIA. People are buying homes in steadily growing numbers; they’re just not buying new ones.
If you’re wondering why that is, here’s an answer in three letters: HIA. It stands for Hopelessly Inferior Attitude.
This organisation could be doing so much to help its members do business. There are so many positives to highlight: a strong economy, low unemployment, rising incomes, low interest rates, solid population growth, recovering property markets, a high level of government assistance for people building new homes.
But rather than encourage people to build, this bleak body of bumbling boffins is giving them reasons not to. There’s a crisis. No one can afford it. The industry is in recession. Everyone’s afraid.
There’s no “dire lack of confidence”. There’s an inability of the housing industry to respond to demographic changes and market needs. There’s also a stubborn refusal to admit that the industry has damaged itself by building too many dwellings in the past.
Most of all, the industry with the Hopelessly Inferior Attitude has failed to take any responsibility for its own situation, preferring to carp on the sidelines with fingers pointed at politicians and councils and financiers and the Reserve Bank. Until it recognizes itself as part of the problem, things won’t get better.
The claim by the man with the most Hopelessly Inferior Attitude, Harley Dale, that “households remain reticent to actually make a decision to buy” contradicts all the available evidence. The truth is people are making buying decisions but they prefer established housing, rather than new dwellings.
Why? Because they’re cheaper and the people selling them are emitting positive messages.
The same rules apply to houses as to anything else available in the market place. People will buy if you provide a product they want at a price they can afford and are encouraged to spend by optimistic marketing.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
 
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Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
</div>
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Supposed 'dire lack of confidence' in property markets complete nonsense: Terry Ryder

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<h2>Sale prices edge 8.7% above estimates of Melbourne agents underquoting at October auctions</h2>
Alistair Walsh
Melbourne real estate agents continue to underquote properties selling at auction, according to the latest Property Observer survey on the issue.
An analysis of 74 sales catalogued by National Property Buyers over the last four weeks shows 55 of those properties sold for above the price range indicated by the selling agent prior to auction.
That’s just shy of 75% of properties selling for more than the upper bracket of the quoted price range.
On average, those 55 properties sold for 8.7% above the upper bracket of the price range indicated by the agents.
Property Observer’s <a target="_blank" href="https://www.propertyobserver.com.au/news/underquoting-still-rife-in-melbourne/2012100456988">most recent underquoting survey</a> found 75% of September surveyed properties sold for over price indications. Those that sold above went for an average of 6.5% over.
Prior to that, <a target="_blank" href="https://www.propertyobserver.com.au/auctions/melbourne-auction-listings-typically-selling-at-5-above-upper-end-estimate/2012090956435">an analysis of 220 auction results</a> in the months leading up to spring found 77% of properties were selling above price guides. Those that sold above were going for an average of 5% above expectations.
Just one property sold for below the price range indicated by agents prior to auction.
The properties analysed were only those where a price range was given with a lower and upper price indication.
Buyers’ agent Catherine Cashmore, who compiled the raw data for this survey, says buyers can expect to pay more than the price indicated before auction.
“Price quotes are important to attract buyers in the first place – no buyer likes to play guessing games when it comes to putting a price on an advertised listing.  However, as with any auction, the quote has to be at a level to attract as many potential purchasers as possible, whilst at the same time, not being too far from vendor expectation to achieve a sale,” Cashmore says.
“There are still agencies who quote at a level which we know from our own research to be too low to reasonably achieve a sale within the advertised range – we come across them weekly – and it would be fair to suggest buyers can expect to pay above the advertised price quote in most circumstances, especially when there is competition.
“However, bear in mind, every real estate sales agency quotes differently, so it's always important to do the necessary leg work to avoid wasting time and money inspecting a home, which will only ever achieve a sale price in excess of the advertised figure.”
Cashmore says more owner-occupiers in the market can push up auction prices.
“Stock levels have been plentiful this year, however the 'best of the best' has not been in abundance.  Owner-occupiers have dominated the inner-city market (with numbers of investors reduced due to continual poor consumer confidence), and it's well known that owner-occupiers are the demographic willing to pay an extra 5-10% more to secure the home of their dreams.  Hence why owner-occupiers fuel price growth and hence why 'investment grade' homes are chosen to attract this demographic.
The most extreme case of underquoting, or overly enthusiastic bidding, was a two-bedroom <a target="_blank" href="/news">Collingwood</a> house that sold for $662,500, 50% above the pre-auction indicated price range of $400,000 to $440,000.
A four-bedroom <a target="_blank" href="/news">Fitzroy North</a> house sold for $1,845,000, or 29% above the pre-auction indicated price range of $1.3 million to $1.43 million.
And a two-bedroom <a target="_blank" href="/news">Hawthorn </a>apartment sold for $652,000, 25% above the pre-auction indicated price of $470,000 to $520,000.
The $600,000 to $1 million bracket had the most cases of underquoting. Of the 26 sales in that bracket analysed, 23 or 88% sold for above the pre-auction indicated price range.
Of those 23, 17 sold for more than 5% above. Those 11 properties sold for an average of 11% over the pre-auction indicated price range.
For properties selling under $600,000, 64% sold for above expectations for an average of 5.7% over.
For properties selling over $1 million, 70% sold above expectations, an average of 10.2% over.
The property sales analysed come from National Property Buyers weekly survey of the Melbourne market.
The properties recorded those thought to be investment-grade or cream of the crop properties. They are thought to be properties that hold the best potential for long-term capital growth and rental demand.
The price quotes are received as close as possible to the auction date to avoid step quoting practices.
Cashmore says agents who put their price quotes too high risk scaring away potential clients. While Cashmore agrees price quoting can be frustrating for clients they must realise that more legislation won’t stop the practice.
 
<hr class="system-pagebreak">
 
<h2>Melbourne agents not underquoting</h2>
Robert Larocca, REIV policy and public affairs manger 
Homes selling for more than their reserve and quoted price at auction does occur – in fact, it is what most vendors hope for – but it cannot always be described as underquoting.
The legal definition of underquoting is quite different, and those who seek to point out instances of alleged unlawful activity should take the time to understand the law first.
The Australian Consumer Law requires that all business people – including real estate agents – not engage in conduct that misleads or deceives or is likely to do so.
This general statutory obligation is allied to specific requirements imposed on Victorian estate agents by the Estate Agents Act to not over-quote to sellers or under-quote to buyers the estimate selling price of properties they are employed to sell. The act also makes it clear what is meant by the term “estimated selling price”, and this is critical information for all those who comment publicly on this matter.
The estimated selling price is “the amount the agent believes, on the basis of his or her experience, skills and knowledge, that a willing but not anxious buyer would pay” for the property in question. The estimated selling price can be a single figure or a price range.
If a price range is used, the agent must believe the estimated selling price is likely to fall within it. The range cannot be more than 10% of the amount of its lower limit. An estate agent must provide a vendor with the estimated selling price and include it in the sale authority the vendor signs.
The act goes further. It prohibits an estate agent making a statement in marketing material, advertisements, or even when talking to people, in which he or she indicates the selling price is less than the estimated single figure selling price or in the case of a price range, is less than the lower end of the range. For example: if the agent has provided an estimated selling price to the vendor of $500,000 to $550,000 he or she cannot advertise the property using a range of $490,000 to $530,000.
In practical terms, this means an agent can’t use a quoted price that is below what he or she believes (as expressed by the estimated selling price given to the vendor) the home will sell for.
The Australian Consumer Law’s prohibition on misleading and deceptive conduct obliges an estate agent to keep an advertised estimated selling price or price range under review during a sale campaign and to align it with a vendor’s actual selling price requirements, as may be necessary.
If during a campaign an offer or enquiry is received at a price above single figure estimated selling price or above the lower limit or upper limit of a price range an estate agent is advertising, and the vendor indicates he or she want something more, the estimated single figure selling price or price range as advertised must be adjusted in line with the vendor’s current expectations.
For example: if the price range is advertised at $500,000 to $550,000 and an enquiry is received at $510,000 in response to which the vendor indicates he requires an offer of at least $520,000 before he will consider selling, the range will have to be adjusted so the lower limit is advertised as  $520,000, to avoid misleading or deceiving the public about the selling price.
The act also requires that the real estate agent provide proof to the director of Consumer Affairs about how they arrived at the estimated selling price, if the director requests it
In drafting this law, the Victorian Parliament made an effort to be very clear that the estimated selling price and the vendor’s reserve or asking price do not need to be the same – the agent has his or her view about what the home may sell for, and that can be totally different from what the vendor wants. And this, of course, can be totally different to what the market is prepared to pay.
As a result, it is impossible for commentators to conduct or provide “research” about the extent of “underquoting”, because they do not know what estimated selling price the agent has provided to the vendor. As the act explicitly says that ”nothing …. requires the estimated selling price and the seller's reserve price to be the same amount”, commentators also can’t prove underquoting by comparing the sale price with the reserve.
Maybe all that sort of “research” can prove is that the market sets the selling price, not the advertisement.
Finally, it’s worth reminding <a href="https://www.propertyobserver.com.au/residential/sale-prices-edge-87-above-estimates-of-melbourne-agents-underquoting-at-october-auctions/2012102957500">those alleging underquoting</a> that there is one agency that does know what the extent of underquoting actually is: Consumer Affairs Victoria. It was recently reported (AFR 27/10/12) that CAV had received 15 complaints about underquoting in 2011–12. Over the same time there were around 70,000 home sales in Melbourne alone.
A cursory glance at the Consumer Affairs website shows that in the past 12 months there have been no instances of real estate agents being required to sign enforceable undertakings because they underquoted, and only two court actions against agents in which they were found guilty of underquoting.
This shows that while homes may sell for more than quoted or expected, Victorian real estate agents do have an excellent record of compliance with the law against underquoting.
Robert Larocca is policy and public affairs manager at the<a href="https://www.reiv.com.au/" target="_blank" rel="nofollow"> Real Estate Institute of Victoria.</a>
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Room for debate: Are Melbourne agents underquoting?

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A tightly held Birchgrove property going to auction this weekend has no previous sales records.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a target="_blank" rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
In Sydney Sally Hampshire from Laing &amp; Simmons in Double Bay has a property on offer in a dress circle position on the ridge alongside idyllic Mort Bay. The property at 10 Ballast Point Road, <a target="_blank" href="/news">Birchgrove</a>, has four bedrooms and three bathrooms and was built in the late 1800s. It has been completely renovated by the current owners to take advantage of the expansive views and harnessing the indoor/outdoor living.
<img src="/images/stories/2012/10/birchgrove.jpg">
The property appears to have been tightly held, with no past sales on record. RP Data reports the unimproved capital value back in 1983 was $300,000, but this will not be much help to tippers, as the property is expected to sell above $2.8 million on Saturday.
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Sydney auction tipping: Birchgrove property in dress circle position

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<img src="/images/stories/2012/10/20point8percent.gif">
The amount by which unit rents have increased in Perth in the 12 months to September, according to Residex. The median unit asking rent is $435, and the median yield is 5.3%.
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<img src="/images/stories/2012/10/20percent.gif">
The amount by which unit rents have increased in Sydney in the 12 months to September, according to Residex. The median unit asking rent is $540, and the median yield is 5.6%.
<hr>
<img src="/images/stories/2012/10/12point5percent.gif">
The amount by which unit rents have increased in Melbourne in the 12 months to September, according to Residex. The median unit asking rent is $405, and the median yield is 4.9%.
 
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<img src="/images/stories/2012/10/12point2percent.gif">
The amount by which unit rents have increased in Darwin in the 12 months to September, according to Residex. The median unit asking rent is $505, and the median yield is 6.4%.
 
<hr>
<img src="/images/stories/2012/10/5point8percent.gif">
The amount by which unit rents have increased in ACT in the 12 months to September, according to Residex. The median unit asking rent is $460, and the median yield is 5.8%.
 
<hr>
<img src="/images/stories/2012/10/4point2percent.gif">
The amount by which unit rents have increased in Brisbane in the 12 months to September, according to Residex. The median unit asking rent is $370, and the median yield is 5.5%.
 
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<img src="/images/stories/2012/10/3point6percent.gif">
The amount by which unit rents have increased in Hobart in the 12 months to September, according to Residex. The median unit asking rent is $285, and the median yield is 5.9%.
 
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<img src="/images/stories/2012/10/3point5percent.gif">
The amount by which unit rents have increased in Adelaide in the 12 months to September, according to Residex. The median unit asking rent is $295, and the median yield is 5.1%.
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<img src="/images/stories/2012/10/13point9percet.gif">
The amount by which unit rents have increased across Australia in the 12 months to September, according to Residex. The median unit asking rent is $410, and the median yield is 5.4%.
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Double-digit unit rental growth in major capitals, bar Brisbane, in past year: Residex

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A Northcote home going to auction this weekend will test the market for bigger homes.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a style="font-size: 14px;" rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
The <a target="_blank" href="/news">Northcote </a>market has been very strong in recent months particularly for bigger family homes. The property at 6 Membry Street is a house that will tick a lot of boxes for home buyers, however as we move closer to Christmas the number of buyers in the market will get thinner as each one buys and exits the market.
The timber Edwardian home has been quoted to sell for between $1.25 million and $1.35 million, and Bev Adam from Jellis Craig has indicated this is an accurate quote. Recent comparable sales suggest she is spot-on, with a couple of sales at $1,325,000 and $1.4 million in recent months.
<img src="/images/stories/2012/10/membry.jpg">
 
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Melbourne auction tipping: A family home that ticks a lot of boxes in Northcote

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When purchasing an apartment, all investors and owners share common goals: to ensure the value of their property increases and that their property’s development is well managed for the entirety of its future.
This is why I am often surprised when I come across clients who underestimate the impact that a building management firm can have on their investment. Investing in a building that is managed by a reputable, knowledgeable and responsive company is essential for the maintenance of the development’s assets, which ultimately contributes to the property’s long-term growth.
When a new building’s executive committee is deciding on which company to appoint to manage the development, the decision is often based on cost. Unfortunately, this can affect the long-term value of the development, as there are many other factors that need to be considered.
An established and capable building management firm will have a highly skilled team and structured processes to ensure the building is maintained on a daily basis, preventative maintenance schedules are operational and managed effectively, bylaws are adhered to, a detailed monitoring system is in place, and security systems are well-maintained and updated annually.
The company should also be financially savvy, cost-effective, and have experience in preventative and corrective maintenance and dealing with OH&amp;S standards. The firm should also have a good selection of quality service providers to maximise the longevity of the development’s assets.
Defect management is another important issue which falls under the realm of building management. Where owners are within their seven-year home owner's warranty period, defects should be raised immediately to the builder and the Home Owner Warranty insurer.
My husband, George Ziri, who is director of Building Facilities Management Solutions (BFMS Pty Ltd ), says when discussing defect management, the building manager should always conduct themselves in an impartial manner to establish credibility between the owners and the builder/developer.
Building managers also need to be realistic when producing defect reports. According to George, it’s best to wait for the sixth year of the home owner's warranty before the owner works with an independent building consultant to review the property and status of defects.
This review will give both the owner and builder the assurance of independent advice. The consultant will also support the owner as an expert witness, in the event they wish to pursue any legal matters.
Reliable and trusty building management is essential in all developments. For investors, property location and views can go a long way in ascertaining the value of their purchase; but, it is also worth remembering the building’s management also plays a large part in determining what an investment is worth now and in the future.
Carlie Ziri is the director of <a href="https://www.lifestylepropertyagency.com/" target="_blank">Lifestyle Property Agency.</a>
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A capable building manager will increase the value of your investment property: Carlie Ziri

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The recent decision of the Victorian Court of Appeal in "Re Willmott Forests Limited (Receivers and Managers appointed) (in liquidation) [2012] VSCA 202" brings into question the security of a lessee’s tenure.  
It suggests the existence of a category or “class” of lease, which can be unilaterally brought to an end if the landlord goes into liquidation. 
This has broad-reaching implications, particularly for tenants proposing to invest significantly in businesses that require security of tenure and/or fit-outs that are only feasible if they can be amortised over the period of a long lease.
Will tenants now be asking landlords to provide security deposits or bank guarantees securing the value of their investment in the leased premises?
The Willmott Forests Case
The liquidators of Willmott Forests Ltd (receivers and managers appointed, in liquidation) intended to sell land on which a forestry scheme had been established.  As part of a set of project documents, the growers of the forestry scheme had rights to grow and harvest trees on the land.  Those rights included leases and licences for the occupation of the land. The liquidators wished to sell the freehold land unencumbered by the leases and licences by disclaiming the contract documents as onerous pursuant to section 568 of the Act and they asked the Court to clarify whether they could.
The Supreme Court decision
In the Supreme Court her honour Jennifer Davies held that the answer to the question above was "no" on the basis that:
<ul>
<li>a lease grants both contractual and proprietary rights;</li>
<li>a leasehold interest is the property of the lessee and a disclaimer by a liquidator only terminates the lessor’s rights, interest and liabilities under the lease;</li>
<li>it is not apt to describe a leasehold estate as a liability or an encumbrance on the lessor’s property; and</li>
<li>such a disclaimer would not bring the lessee’s proprietary interest in the land to an end as the proprietary interest has already vested in the lessee. 
</li>
</ul>
The decision of the Court of Appeal of the Supreme Court
On appeal, this decision was overturned, with the Court of Appeal finding that a leasehold estate cannot continue if the lessor has been released from its obligations under the lease agreement. This meant that a liquidator was empowered to end a lease and dispossess the tenant of its leasehold interest and tenure.
In terms of the competing interests of the landlord’s creditors and the lessees’, the Court of Appeal said:
Section 568D(1) allows the liquidator to terminate this obligation or liability despite its intrusion into the property rights of an innocent party.  The evident policy is to permit the loss of these rights in order to enable the company in liquidation to be free of obligations so that it can be wound up without delay for the benefit of its creditors.  To compensate, the rights of the affected parties are transmuted into various statutory rights and claims.
Of course in order for the “compensation” to be available, the liquidators must recover enough out of the liquidation to satisfy both its secured and unsecured creditors.  In the Willmott case this simply will not happen, so the idea that the loss of the innocent parties' rights will be compensated for in other ways will not be realised.
By prioritising the rights of the creditor over those of the tenant, risk is shifted from the lender (generally a sophisticated party who had an opportunity to consider its risks on the way in and who may have profited from the arrangement) to an innocent party who had no ability to mitigate the risk.
 
<hr class="system-pagebreak">
What is the lesson in this? 
 
Tenants who intend to invest significantly in fit-out or in acquiring new premises from which to run their businesses should beware.  If your landlord is on shaky ground, so potentially is your tenure. Tenants may want to consider seeking some form of security from their landlords at the commencement of a lease to ensure that their investment takes priority over a potential creditor’s interest.  It is conventional for landlords to seek a bank guarantee or security deposit from tenants to protect their income stream, but I predict that it will become increasingly common for tenants to seek reciprocal protection, particularly where:
<ul>
<li>the location of business is often a key strategic asset;</li>
<li>significant amounts of capital fit-out is required;</li>
<li>the lease is for a term exceeding five years; or</li>
<li>the lease is only one component of the commercial arrangement between the lessor and lessee.</li>
</ul>
Without that protection, a lessee will be left with the following less than satisfactory options:
<ul>
<li>prove its loss as an unsecured creditor; or</li>
<li>apply to the court to have the disclaimer set aside (under section 568E of the Act); or</li>
<li>attempt to negotiate a new lease with the liquidator.</li>
</ul>
We understand that the Willmott Growers have applied to the High Court of Australia for special leave to appeal this decision.
<div>
Natalie Bannister is a partner in the property, planning and construction team at <a href="https://www.hallandwilcox.com.au/Pages/default.aspx" target="_blank">Hall &amp; Wilcox Lawyers.</a>
</div>
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Commercial tenants should seek bank guarantee from landlords before moving in

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A historic store dating back to 1886 has been listed for sale in Gundaroo, NSW.
<a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-gundaroo-nsw-2620/161838" target="_blank">The Gunadaroo Store</a>, built in 1893, and an attached cottage named Sally Paskin’s Store, built in 1886, have been listed for sale and come with a potter's shed, a picnic garden and water features.
<a href="/news">Gundaroo </a>is just north of the ACT border, 30 kilometres north of Canberra.
The store currently operates as a boutique gift store and has been recently renovated and has high ceilings, kauri floors and expansive interiors.
“The Gundaroo Store and the Caladonia Store next to it were like Myers and Bunnings and Woolworths all rolled into one. It provided a wide range of goods for people to buy," says vendor Peter Thorne.
“It had everything from haberdashery, hardware items even explosives for miners because gold was found in the region. It basically provided everything you could possibly want.”
The building is mostly constructed of wood from various parts of the world.
“It’s a lovely old building, particularly interesting because the floors are New Zealand kauri and they’re all original and the ceilings are baltic pine, from the other side of the world. Packing cases were pulled apart and used to construct buildings. If you look across the front there’s a section made of packing case timber,” Thorne says.
“Moving from Sydney has been the best thing we ever did for a whole range of reasons, but the community is fantastic. There are lovely people here. The craft festival especially sticks in our memory as being a wonderful occasion. “
Agent Chris Dixon says he enjoys the construction of the building.
“It really does a very solid feel and you don’t often see buildings constructed like that these days,” Dixon says.
“The lovely high ceilings, the kauri floors, the sheer size lends itself to many options and opportunities.”
Dixon says Gundaroo is a popular tourist spot.
“It’s very popular with Canberrans and those living the regional areas but it’s also quite popular with Sydneysiders. People often come down to Canberra and do the winery tours here and there are a number of villages within half an hour of Canberra,” Dixon says.
“Peter Thorne is a fascinating fellow. He’s an engineer by trade and he has dabbled in all sorts of enterprises, but he and wife Jenny have been quite enterprising running it as a boutique store. It was previously Devonshire teas and arts and crafts and for a while it was restaurant.”
The Sally Paskins store is still in largely original condition.
“It’s one of the only excellent examples of slab hut constructions left,” Dixon says.
Thorne bought the property in 1976 after leasing the property for a year. He and his partner discovered the property when driving down to Sydney to sell tiles in Canberra. They operated as an arts and craft store, then added a tea room and then ran a spit roast restaurant for a while.
The expressions of interest campaign closes at the end of November, and Dixon is seeking offers over $1 million for the property.
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