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

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

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

How Sterling Global designed 623 Collins from Melbourne's history

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

<html><body>
Households in Dutton Park, just south of the Brisbane CBD, are spending more than half (54%) of their income on repaying their mortgage, according to analysis of census 2011 data by Brisbane-based firm Resolution Research.
Borrowers are said to be in mortgage stress and at higher risk of defaulting on their mortgage if they spend more than a third of their household income on making monthly mortgage repayments.
Households in <a target="_blank" href="/news">Dutton Park</a>, about four kilometres south of the Brisbane CBD, earn around $4,500 per month and spend nearly $2,200 of this on servicing their mortgages, according to 2011 census data.
This is a 38% increase on the $1,600 they spent on mortgage repayments, according to the 2006 census.
Over the same period, household income has not kept pace with increasing mortgage repayments – five years ago monthly income was just under $3,950, meaning household income has risen only 14% between 2006 and 2011.
Diana Howes, managing director at Resolution Research, says Dutton Park is an example of residents being willing to make sacrifices on big ticket items to be able to afford to live in the suburb.
"Dutton Park is very unique suburb being just a five minute drive to CBD with both city and river views and full of character housing that can't be redeveloped.
"There have been very few changes in its dwelling typology landscape.
"It's a very constrained supply environment – and one of the most desirable suburbs to live in the city."
Howes says Leighton Properties' development of the master-planned Boggo Road Urban Village alongside the heritage-listed Boggo Road Gaol has stimulated price growth.
The median house price in Dutton Park is $745,000 compared with $548,000 in 2007, an increase of 36%, according to RP Data.
Using the same census data, renters pay around $240 per week ($1,080 per month), suggesting renting in Dutton Park is far less of a burden on household finances.
However,  more recent rental data compiled by RP Data suggests rents have risen rapidly in Dutton Park since the census and have almost doubled to $475 per week.
Across Brisbane, Resolution Research found that nearly one in two (49.2%) Brisbane households under or on the verge of household stress spending between 30 and 39% of their median household incomes on mortgage repayments.
This ratio is matched in the sought-after inner-Brisbane market, currently the focus of dozens of new apartment projects.
Mortgage stress is high in <a target="_blank" href="/news">Woolloongabba </a>(44% of household income goes to repaying the mortgage) followed by <a target="_blank" href="/news">St Lucia</a> (41%).
Other mortgage-stressed inner-city suburbs include <a target="_blank" href="/news">South Brisbane</a>, <a target="_blank" href="/news">Hamilton</a>, <a target="_blank" href="/news">Fortitude Valley</a> and <a target="_blank" href="/news">New Farm</a>.
Howes believes that the current definition of housing stress needs to be adjusted.
"Forty percent of income to service a mortgage would be a better guide," she says.
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;"><tbody>
<tr>
<td width="18%" valign="bottom">
Name
</td>
<td width="10%" valign="bottom">
Household income (w)
</td>
<td width="12%" valign="bottom">
Mortgage repayment (m)
</td>
<td nowrap width="11%" valign="bottom">
Mortgage/
Income
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Dutton  Park
</td>
<td nowrap width="10%" valign="bottom">
$1,004
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
54%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
West End
</td>
<td nowrap width="10%" valign="bottom">
$1,485
</td>
<td nowrap width="12%" valign="bottom">
$2,597
</td>
<td nowrap width="11%" valign="bottom">
44%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Woolloongabba
</td>
<td nowrap width="10%" valign="bottom">
$1,330
</td>
<td nowrap width="12%" valign="bottom">
$2,200
</td>
<td nowrap width="11%" valign="bottom">
41%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
St Lucia
</td>
<td nowrap width="10%" valign="bottom">
$1,315
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
41%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Kelvin Grove
</td>
<td nowrap width="10%" valign="bottom">
$1,360
</td>
<td nowrap width="12%" valign="bottom">
$2,123
</td>
<td nowrap width="11%" valign="bottom">
39%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
East Brisbane
</td>
<td nowrap width="10%" valign="bottom">
$1,494
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Windsor
</td>
<td nowrap width="10%" valign="bottom">
$1,644
</td>
<td nowrap width="12%" valign="bottom">
$2,383
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Highgate Hill
</td>
<td nowrap width="10%" valign="bottom">
$1,380
</td>
<td nowrap width="12%" valign="bottom">
$2,000
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Everton Park
</td>
<td nowrap width="10%" valign="bottom">
$1,346
</td>
<td nowrap width="12%" valign="bottom">
$1,950
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Annerly
</td>
<td nowrap width="10%" valign="bottom">
$1,385
</td>
<td nowrap width="12%" valign="bottom">
$2,000
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Bowen Hills
</td>
<td nowrap width="10%" valign="bottom">
$1,458
</td>
<td nowrap width="12%" valign="bottom">
$2,100
</td>
<td nowrap width="11%" valign="bottom">
36%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Coorparoo
</td>
<td nowrap width="10%" valign="bottom">
$1,522
</td>
<td nowrap width="12%" valign="bottom">
$2,151
</td>
<td nowrap width="11%" valign="bottom">
35%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Albion
</td>
<td nowrap width="10%" valign="bottom">
$1,493
</td>
<td nowrap width="12%" valign="bottom">
$2,104
</td>
<td nowrap width="11%" valign="bottom">
35%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Newmarket
</td>
<td nowrap width="10%" valign="bottom">
$1,565
</td>
<td nowrap width="12%" valign="bottom">
$2,200
</td>
<td nowrap width="11%" valign="bottom">
35%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
South Brisbane
</td>
<td nowrap width="10%" valign="bottom">
$1,588
</td>
<td nowrap width="12%" valign="bottom">
$2,210
</td>
<td nowrap width="11%" valign="bottom">
35%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Hamilton
</td>
<td nowrap width="10%" valign="bottom">
$1,894
</td>
<td nowrap width="12%" valign="bottom">
$2,600
</td>
<td nowrap width="11%" valign="bottom">
34%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Fortitude Valley
</td>
<td nowrap width="10%" valign="bottom">
$1,590
</td>
<td nowrap width="12%" valign="bottom">
$2,179
</td>
<td nowrap width="11%" valign="bottom">
34%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
New Farm
</td>
<td nowrap width="10%" valign="bottom">
$1,620
</td>
<td nowrap width="12%" valign="bottom">
$2,200
</td>
<td nowrap width="11%" valign="bottom">
34%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Toowong
</td>
<td nowrap width="10%" valign="bottom">
$1,601
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
34%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Milton
</td>
<td nowrap width="10%" valign="bottom">
$1,798
</td>
<td nowrap width="12%" valign="bottom">
$2,400
</td>
<td nowrap width="11%" valign="bottom">
33%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Red Hill
</td>
<td nowrap width="10%" valign="bottom">
$1,909
</td>
<td nowrap width="12%" valign="bottom">
$2,500
</td>
<td nowrap width="11%" valign="bottom">
33%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Kangaroo Point
</td>
<td nowrap width="10%" valign="bottom">
$1,679
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
32%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Morningside
</td>
<td nowrap width="10%" valign="bottom">
$1,696
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
32%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Herston
</td>
<td nowrap width="10%" valign="bottom">
$1,698
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
32%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Spring Hill
</td>
<td nowrap width="10%" valign="bottom">
$1,613
</td>
<td nowrap width="12%" valign="bottom">
$2,058
</td>
<td nowrap width="11%" valign="bottom">
32%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Paddington
</td>
<td nowrap width="10%" valign="bottom">
$2,074
</td>
<td nowrap width="12%" valign="bottom">
$2,557
</td>
<td nowrap width="11%" valign="bottom">
31%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Balmoral
</td>
<td nowrap width="10%" valign="bottom">
$2,044
</td>
<td nowrap width="12%" valign="bottom">
$2,500
</td>
<td nowrap width="11%" valign="bottom">
31%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Fairfield
</td>
<td nowrap width="10%" valign="bottom">
$1,525
</td>
<td nowrap width="12%" valign="bottom">
$1,863
</td>
<td nowrap width="11%" valign="bottom">
31%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Auchenflower
</td>
<td nowrap width="10%" valign="bottom">
$1,795
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
30%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Hawthorne
</td>
<td nowrap width="10%" valign="bottom">
$2,101
</td>
<td nowrap width="12%" valign="bottom">
$2,500
</td>
<td nowrap width="11%" valign="bottom">
30%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Grange
</td>
<td nowrap width="10%" valign="bottom">
$2,097
</td>
<td nowrap width="12%" valign="bottom">
$2,375
</td>
<td nowrap width="11%" valign="bottom">
28%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Norman Park
</td>
<td nowrap width="10%" valign="bottom">
$2,110
</td>
<td nowrap width="12%" valign="bottom">
$2,383
</td>
<td nowrap width="11%" valign="bottom">
28%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Ashgrove
</td>
<td nowrap width="10%" valign="bottom">
$2,083
</td>
<td nowrap width="12%" valign="bottom">
$2,340
</td>
<td nowrap width="11%" valign="bottom">
28%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Newstead
</td>
<td nowrap width="10%" valign="bottom">
$2,480
</td>
<td nowrap width="12%" valign="bottom">
$2,766
</td>
<td nowrap width="11%" valign="bottom">
28%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Bardon
</td>
<td nowrap width="10%" valign="bottom">
$2,287
</td>
<td nowrap width="12%" valign="bottom">
$2,492
</td>
<td nowrap width="11%" valign="bottom">
27%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
The Gap
</td>
<td nowrap width="10%" valign="bottom">
$1,937
</td>
<td nowrap width="12%" valign="bottom">
$2,100
</td>
<td nowrap width="11%" valign="bottom">
27%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Bulimba
</td>
<td nowrap width="10%" valign="bottom">
$2,410
</td>
<td nowrap width="12%" valign="bottom">
$2,600
</td>
<td nowrap width="11%" valign="bottom">
27%
</td>
</tr>
<tr>
<td nowrap width="18%" valign="bottom">
Wilston
</td>
<td nowrap width="10%" valign="bottom">
$2,049
</td>
<td nowrap width="12%" valign="bottom">
$2,167
</td>
<td nowrap width="11%" valign="bottom">
26%
</td>
</tr>
</tbody></table>
Source: Resolution Research
Dutton Park photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
This article is under dispute, <a target="_blank" href="https://www.propertyobserver.com.au/queensland/dutton-park-mortgage-stress-debate-continues-as-resolution-research-stands-by-figures/2012112157971">as property analyst Michael Matusik has disagreed with its findings.</a>
 
</body></html>

lschlesinger-FZcF9M3vE6

Aspirational Dutton Park tops list of 19 mortgage-stressed inner-Brisbane suburbs 

<html><body>
The Perth median house price was unchanged over the September quarter at $482,000, following revisions to the June median house price, with sales volumes falling marginally, according to the Real Estate Institute of Western Australia (REIWA).
The institute had previously reported an unrevised June quarter median of $475,000.
The number of properties listed for sale fell 14% during the quarter to just 10,400 listings, well below normal levels of around 12,000 properties and down by 30% over the last year.
Rents remained unchanged at a median of $450 per week, but are up more than 10% over the past 12 months.
The combination of higher rents, a low rental vacancy rate of 1.8% (and unlikely to return to a balanced market level of 3%) as well as a “surging” population continues to build pressure on prices, according to REIWA president David Airey.
Airey said that while house prices were stable, turnover had been declining with the sales volume dipping by around 4% in the September quarter.
“Turnover is still around 25% higher than the same time last year, but the trend over the last few months shows this to be slowing. It might be a seasonal dip given that the winter months are sluggish, or it might be part a longer pattern we need to monitor.
“Interestingly, sales turnover for units, apartments and villas grew by around 3% in the September quarter, but with no movement in the median price in the multi-residential segment of the market.”
According to Airey, growth in the market for units valued under $350,000 is probably a reflection of the very strong first-home buyer activity.
“First-home buyer grants for the September quarter were at their highest level since 2009, before the first-home owner grant boost ended, and now account for around 30% sales,” he says.
“These listings include some 2,100 blocks of land, many of which are in the regions of Rockingham-Kwinana, Armadale-Serpentine, Gosnells, Swan and Cockburn,” says Airey.
Land in Rockingham starts from around $180,000 for a 442-square-metre block, while a 420-square-metre block in Armadale can be picked up under $100,000.
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Perth house prices unchanged in September quarter with first-home buyer numbers rising: REIWA

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Mining-rich Western Australia is still dominating the rest of the country when it comes to state-by-state economic health, but Northern Territory is gaining ground quickly according to new research from CommSec.
The organisation's latest State of the States report has confirmed the ongoing trend – Western Australia is still on top in four of the eight criteria, and weaker states such as Tasmania have continued their ongoing struggle.
There are some changes appearing. The Northern Territory has passed the ACT to reach second, with its natural gas projects helping provide momentum, and New South Wales now ranks among Victoria and Queensland.
But overall, says CommSec chief economist Craig James, not much has changed.
"While there has been some modest reshuffling of other positions, in general there hasn't been much change over the past three months."
Western Australia has led on construction work, retail trade, population growth and equipment investment, with the only real weak point in dwelling starts, where it ranked seventh.
The Northern Territory ranked well in economic growth, jobs, and retail, coming second. The ACT ranked third with large growth in dwelling starts and population growth.
New South Wales moved from fifth to fourth along Victoria and Queensland, with relatively low unemployment helping out there. However, Victoria dropped due to higher unemployment, with Queensland also affected by weaker housing finance.
In terms of gross domestic product, the Northern Territory leads, followed by Western Australia and the ACT. But economic activity in Tasmania was up just 5.5% – the island state recorded a growth rate of negative 2.9%.
Western Australia retained its rank for retail trade – although James noted that if monthly retail trade data was assessed, the ACT and South Australia would swap ranks. The Northern Territory and Queensland ranked second and third, followed by Victoria.
Tasmania recorded the weakest result, up just 6.5% on the decade average.
The Northern Territory and Western Australia recorded the strongest job markets, with the former recording a jobless rate of just 3.9%. The weakest market was in Queensland, with the jobless rate at 6.1%, 19% above the decade average.
Housing finance, James said, was a "useful indicator of activity in the financial sector". Victoria had the strongest market, with housing finance commitments 2.4% below the decade average level, while in Western Australia, the number of commitments was 3% below the long-term average.
Tasmania recorded the weakest result with commitments 27% lower than the decade average.
Overall, James said the states have mostly retained their rankings, although Northern Territory has enjoyed some improvement due to the ongoing strength of its natural gas projects. Tasmania is still expected to be the weak point.
"The Tasmanian economy continues to struggle and there are few signs of improvement on the horizon. The economy must exploit the relative advantages of a cheap property market and attractive agricultural export and tourism opportunities."
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>
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Tasmania must exploit the advantages of its cheap property market: CommSec

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The federal government remains on track to deliver a budget surplus this financial year, giving the Reserve Bank “maximum flexibility to cut interest rates” says Federal Treasurer Wayne Swan following the release of the 2012-13 Mid-Year Economic and Fiscal Outlook (MYEFO).
He also pointed out that mortgage holders are $4,500 a year better off due to cash rate cuts by the RBA while the current Labor government has been in power.
The cash rate was at 6.75% when Kevin Rudd was sworn in as prime minister in December 2007 and is now 350 basis points lower at 3.25%.
However, the MYEFO forecasts dwelling  investment  to be flat in 2012-13, before  growing 4% in 2013-14.
“Dwelling investment declined 3.3% in 2011-12 on the back of continued weakness in the detached housing market.
“Conditions across the sector are expected to improve gradually over the remainder of 2012, consistent with the solid growth in dwelling approvals and commencements seen in the June quarter.
“The recovery is expected to gather momentum into 2013-14, driven by a pickup in homebuyer demand, improved affordability following declines in house prices over the past two years and the assumption that interest rates will remain below average across the forecast period," says the MYEFO.
Announcing the release of the MYEFO, Swan emphasised the government’s efforts to return the budget to surplus “despite worsening global conditions cutting almost $22 billion from tax receipts”.
“Returning the budget to surplus also gives the Reserve Bank maximum flexibility to cut interest rates, as it has several times in the past year.
“Interest rate cuts since the government was elected in 2007 are saving a household with a $300,000 mortgage around $4,500 every year,” said Swan.
The government is forecasting real GDP growth at around trend of 3% in 2012-13 and 2013-14, a downgrade of 0.25 percentage point in 2012-13 compared with what was in the federal budget, but follows stronger than expected growth in 2011-12.
“While global headwinds, a high dollar and changing consumer behaviour are weighing on some sectors, the Australian economy is expected to outperform every major advanced economy this year and next, with growth underpinned by strong investment, strong growth in export volumes and solid growth in consumption.
“The unemployment rate is forecast to remain low at 5.5 per cent in 2012-13 and 2013-14, in stark contrast to the stubbornly high rates of unemployment seen across the developed world.
“Both headline and underlying inflation are expected to remain well contained over the forecast period, sitting within the RBA's target band,” says Swan.
Swan also pointed out Australia remains on track to return the budget to surplus “ahead of all major advanced economies”.
“The average net debt position of the major advanced economies (G7) is projected to peak at 95%t of GDP in 2016, almost 10 times higher than the peak in Australia's net debt of 10% of GDP in 2011-12.”
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Budget surplus gives RBA 'maximum flexibility' to cut rates but dwelling investment recovery a year off

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Australian households are at their highest levels of financial confidence since May 2011, with more than three-quarters (75.8%) expecting that house prices will grow or remain stable to the end of the year, according to the latest Commonwealth Bank/Mortgage &amp; Finance Association of Australia Home Finance Index.
This is up from 67.3% in March and 53.6% in the third quarter of 2011.
The number of respondents who believe that house prices will fall in the next quarter has dropped to just one-quarter (24.2%), from 32.7% in March and 46.4% in the third quarter of 2011.
Property market sentiment is highest in Western Australia, with 42.7% of WA respondents expecting prices to be higher over the next 12 months, followed by NSW, with 31.1% expecting higher prices over this time frame, although some 22.4% of NSW respondents expect lower prices.
<img src="/images/stories/2012/10/cba.gif">Victoria is polarised, with a fairly similar proportion expecting an increase (26.8%) and a decrease (29.0%).
The weakest expectations are in South Australia, where 18.9% of South Australian respondents expect property prices to  rise in the next 12 months and nearly a third (32.9%) expecting them to fall.
The overall sentiment index increased to 90.6, up from 84.0 in March 2012 and well above a September 2011 low of 73.5 suggesting continued growth in property prices in the coming quarter.
According to the survey, the uptick in home buyers' optimism is being driven by flat property prices and continuing falls in interest rates, creating a "buyer's market".
The results are based on a survey of 1,423 people carried out by CoreData between August 9 and August 31.
“All of the signs are for a recovery of the property market, with Western Australians the most optimistic of the states, followed by people in NSW. The property market is all about confidence and the survey confirms that good times are ahead, especially as interest rates continue to fall,” says MFAA chief executive officer Phil Naylor.
The survey also found that the proportion of first-time buyer respondents who believe it is a good time to buy a new home fell from 51.7% in March to 42.4% in September, with anxiety regarding servicing a large debt if a property were purchased the primary concern of first-time buyer respondents rising to 71%, up from 69.2% in the last quarter.
Slightly more first-time buyers are placing buying a home on hold due to the payments and level of borrowing required (56.2% vs. 54%), and delaying their first-home purchase due to economic uncertainty (43.4% vs. 40.0%).
Of those first-time buyers who say it is a good time to buy, they are encouraged because prices are low and rates are down.
WA first-time buyers are the most convinced it is a good time to buy (54.3%), followed by those in Queensland (50.0%). This is a reversal on March, when WA respondents were least convinced it was a good time to buy, suggesting that they may perceive that affordability has improved.
Only around 40% of first-time buyers in NSW, Victoria and South Australia believe it is a good time to buy their first home.
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Home buyer confidence at 18-month high but first-home buyers retreat: CBA/MFAA 

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There was a competitive auction this week for a Melbourne property featured in this week's auction tipping competition Property Tycoon, but the Sydney property was passed in.
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.
When Cedric Newbond from Hocking Stuart lifted the quote for <street>15 Bond Street</street>, <a href="/news">Mt Waverley</a> (pictured below), to $1 million to $1.1 million he was confident it was going to be a competitive auction. When the successful purchaser launched in with a massive $100,000 jump in the bidding his suspicions were confirmed.
<img src="/images/stories/2012/10/bondst.jpg">
The $1.1 million bid was the catalyst to put the property on the market, and then the auction went to another level. When the dust settled six people had placed bids and the property was sold for $1.26 million.
Unfortunately all the glitz of <street>10 Darling Street</street>, <a href="/news">Balmain East</a>, failed to translate into bidding on Saturday. The five-bedroom home had been renovated to within an inch of its life but it appears this is not what the market is looking for as it was passed in on a $2.7 million vendor bid.
<img src="/images/stories/2012/10/darlingst.jpg">
The top end of the property market is patchy to say the least, with most buyers looking for value in their purchase. Recent results continue to demonstrate buyers see value in properties that are comfortable now with the option to renovate down the track.
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marmstrong-sd3emVLPPb

Top end patchy as Melbourne auction tipping competition property sells but Sydney home passed in

<html><body>Australian Property Monitors (APM) has released a list of results from 342  auctions in Sydney for the weekend of October 20. The clearance rate was 64%. <a href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf" target="_blank"> Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

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APM's 342 Sydney auction results show 64% clearance rate

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Nine out of 27 economists polled by Bloomberg expect the cash rate to fall to 2.75% in the first three months of 2012, the lowest it would be for RBA data going back to June 1959.
The RBA does not meet in January, so this would mean a further RBA cash rate cut in either February or March, assuming the RBA, as expected, cuts the cash rate on Melbourne Cup Day to 3%.
For data going back to January 1990, the lowest the cash rate has been 3%, from April 2009 to October 2009, following big cuts by the RBA to temper the emergency effects of the GFC.
Prior to 1990 the Reserve Bank did not publish an official cash rate setting,  but historical proxy data going back to June 1959 shows the cash rate fell to its previous lowest point of 2.89% in January 1960.
The expectation of the cash rate reaching a 52-year low was pointed out by <a href="/news">Business Spectator columnist and economist Stephen Koukoulas last week</a>.
Among the economists tipping the cash rate to fall to 2.75% in the first quarter of 2013 is Westpac chief economist Bill Evans, who is the first economist to correctly tip the RBA to begin cutting the cash rate in November last year.
In an economic update published last week following the release of the October RBA minutes, Evans indicated there was still scope for at least another 50 basis points of rate cuts, starting with one in November.
He said Westpac assesses that "the current policy stance while clearly in the stimulatory zone is still only around 70 basis points below neutral.
"Previous easing cycles have bottomed out in the 125-150 basis point range below neutral," said Evans.
Aside from Evans and Koukoulas,  the seven other economist tipping the cash rate to fall to 2.75% in either February or March are economists from London-based research consultancy 4Cast Ltd, French bank BNP Paribas, Citi, investment banks J.P. Morgan, Merrill Lynch and RBC Capital Markets and RBS  Equities (Royal Bank of Scotland).
Photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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With 50-basis-point cut expectations, nine economists expect lowest cash rate since late 1950s

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When the RBA dropped the cash rate to 3.25% almost three weeks ago, mortgage holders were happy, but retirees and savers missed out.
While mortgage holders stood to save about $38 a month on a $300,000 variable rate loan, there are numerically more Australians saving their money and relying on the yield from those savings than there are people borrowing for a home loan.
The people who have their money in cash savings products are relying on interest rates to sustain them. But the Reserve Bank wants to stimulate the economy so it reduces the cost of money to get people to borrow and spend.
The current situation is poised to create terrible pressure on retirees and those close to retirement, because most economists expect inflation to rise again. Inflation is currently low (around 2%) but its average since 1983 is really 3%.
Economists know that inflation always comes back to trend, and when it does it will be in this context: the online savings accounts, bonus savers and term deposits are yielding in the range of 3% to 4.5%.
So if inflation comes back to around 3% – at time when the RBA is still holding the cash rate around 3% – then the safest forms of saving are not going to produce the income that retirees need.
The first thing to do is assess whether you are getting expert advice. If you have an adviser, call and tell them that you don’t want to be caught between rising inflation and a falling cash rate, and schedule an appointment.
If you’re DIY, then you have to start searching for cash products that take you up the return curve while not taking you too far along the risk axis.
If you want the high yields, you will be typically looking at bank term deposits and online savings accounts, which are safe and can earn up to 2.5 percentage points over inflation.
There are tricks to these. The online “bonus” savers often pay their high rates for the first four to six months, or they punish you for taking money out in any month, or they punish you for not putting money in.
Terms deposits are more straightforward in the rates they pay, but they are inflexible.
Into this environment are creeping high-yield “hybrid” products, some of which are offering yields of 7%.
They seem to be products of the cash variety, but many of them include equity features that expose you to loss.
The problem with these investments that look like cash – but are not really – is that the yields are variable and there is a risk of losing your capital. At which point, you are missing out on the main benefit of a “cash” investment: the safety of it.
There are good cash products with high yields in the current market – do you homework and make sure you know what you’re investing in.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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mbouris-tauSvXGAM2

Low interest rates to put terrible pressure on retirees

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If you reside in NSW, you’d be excused for shaking your head in total disbelief. Not a case of where did they get the money for that? Rather, why is there no money for that? <a title="Public transport better in Mumbai than Sydney: PwC report" href="https://www.smh.com.au/nsw/transport-and-infrastructure-better-in-mumbai-than-sydney-pwc-report-20121015-27m08" target="_blank">Public transport better in Mumbai than Sydney: PwC report</a> Sydney ranks number four on the list of ‘worst major cities in the world for public transport’. Yet, <a title="Sydney the second most expensive city in the world " href="https://www.heraldsun.com.au/money/sydney-worlds-second-most-expensive-city-in-the-world/story-e6frfh5f-1226495524501" target="_blank">Sydney is the second most expensive city in the world, </a>which all sounds a bit rich (no pun intended) and for the record, Tokyo is the most expensive city in the world. If you look closely at NSW infrastructure, the general rule of thumb is that it is now 20 years behind best practice. So where then did all those billions of tax dollars go?
<a title="ousing shortage in NSW to reach 140,000 in four years" href="https://news.domain.com.au/domain/real-estate-news/nsw-needs-140000-new-homes-in-four-years-minister-20121015-27mi7" target="_blank">Housing shortage in NSW to reach 140,000 in four years</a>, which would explain statistics that show 30 percent of NSW dwellings are now rented. This just happens to be the highest recorded figure since 1958. Figures from RP Data show new rental listings dropped from 45,365 in the four weeks ending September 9 to 34,591 in the four weeks ending October 7. <a title="Rental listings down in every state in past month: RP Data" href="/news" target="_blank">Rental listings down in every state in past month: RP Data</a> NSW dropped from 12,390 to 9,018 – the figure was 11,560 this time last year.
Let’s be honest here – governments are not that smart. It’s almost impossible to entice property developers in NSW when Mumbai offers better transport than NSW. While <a title="Sydney on top of the property rich list " href="https://www.smh.com.au/business/property/sydney-tops-property-rich-list-20121011-27f56" target="_blank">Sydney is on top of the property rich list </a>with 19 of Australia’s most expensive 25 suburbs, they don’t really rely on public transport. It should be noted that <a title="Canberra’s big balancing act could hit negative gearing" href="https://www.smh.com.au/business/canberras-big-balancing-act-could-hit-negative-gearing-20121011-27fj4" target="_blank">Canberra’s big balancing act could hit negative gearing</a>. Should this happen and investors bail, our rents will skyrocket. Real estate markets need investors as do the third of Australians who are currently in rental accommodation.
<a title="Housing demand on the rise as population growth at highest rate in three years: Tim Lawless " href="https://www.propertyobserver.com.au/demographics/housing-demand-on-the-rise-as-population-growth-at-highest-rate-in-three-years-tim-lawless/2012101457076" target="_blank">Housing demand on the rise as population growth at highest rate in three years: Tim Lawless</a>,which is a compound property dilemma considering our record low interest rates will (not could) create a ‘mini-Sydney’ property boom. Rents are escalating at the highest rate and that in turn drives new purchasers into the marketplace – even though they may not want to be there. <a title="Adding air to a housing bubble" href="https://www.businessspectator.com.au/bs.nsf/Article/property-housing-equities-interest-rates-home-lend-pd20121017-Z5REL?opendocument&amp;src=rss" target="_blank">This could add air to a housing bubble</a>. Forget the global financial crisis. The ineptitude of Australian governments could well deliver a recession identical to that of the early 1990s.
Two graphs I grabbed this week identify the problems Australia faces.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/10/simoct19.gif" rel="shadowbox"><img src="/images/stories/2012/10/simoct19thumb.gif"></a>
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/10/rpoct104.gif" rel="shadowbox"><img src="/images/stories/2012/10/rpoct104thumb.gif"></a>
The Mosman housing market is going from strength to strength and Mosman houses today are 22% down on the numbers offered this week last year. I predict that over the coming weeks, this figure will climb as high as 40%. Heaven forbid: after years of that horrible GFC, we are now seeing a vendors’ market for houses. Who would have thought?
Robert Simeon is a director of <a target="_blank" href="https://www.rwm.com.au/" title="RWM">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 target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">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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