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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With our residential property markets in a slump over the last few years, some investors are wondering if it’s worthwhile considering commercial property. 
They see that these are the type of properties owned by people in the BRW Rich 200 list and the big institutions; and they hear of high rental yields, long term leases and tenants paying the outgoings. All this makes commercial property sound very appealing. 
So let’s do a Q&amp;A to find out a bit more:
 Q: What are commercial properties? 
A: Commercial properties consist of shops (retail), factories and warehouses (industrial), and office space (commercial). 
My experience shows that commercial real estate has – both historically and in recent times of economic turbulence – proven to be significantly riskier for investors than residential real estate.
 
Q: What’s the fundamental difference between the two types of investment? 
A: These are very different investment vehicles. Residential property is a high-growth, low-yield investment while commercial property is a higher yielding but low-growth investment.
The values of commercial properties are yield-driven rather than (owner-occupier) demand-driven in residential property and fluctuate over time related to yields available from other investments and the prevailing interest rates.
As most commercial rental increases are usually pegged to the rise in the CPI, your rent increases at around 2% or 3% each year, stifling your capital growth. Then when the economy falters and businesses languish, commercial property tends to be out of favour and drops in value. 
Q: If the total return is similar, why not go for the investment with the higher cashflow, in other words, commercial investments? 
A: The fundamental job of property investors is to build themselves a substantial asset base to one day create a “cash machine” to replace their personal exertion income. This is much easier to do with capital growth, which is not taxed, than with cashflow, which is taxed. 
Q: How else does commercial property investment differ from residential real estate investment? 
A: There are considerable differences between the two types of property which may make them a less safe option for beginner real estate investors: 
Commercial properties tend to yield a higher return than residential properties – usually between 7% and 10% net compared to residential properties which yield 4.5% to 5% gross (then subtract rates, taxes, insurance, etc). Professional investors require a higher rental return to make up for this type of property’s inferior capital growth and longer vacancy factors. 
With commercial properties, the tenants usually pay all the outgoings such as rates, taxes and insurance. 
Because your tenant conducts their business from your commercial property, they tend to look after it better by maintaining the property, including painting it, and most leases require the tenant restore the property to its original condition at the end of the lease.
 
<hr class="system-pagebreak">
 
Leases for commercial properties tend to be for longer periods, often three to five years as opposed to the one-year lease you can get from a residential tenant. 
However, when vacancies occur in commercial properties they are often for considerably longer periods than the week or two you may have a residential property vacant. How often have you seen a shop in your local shopping centre vacant for months on end? And when you do find a tenant you often have to offer them an incentive such as a rent-free period or a fit-out to entice them to lease your property. 
Lenders will usually only lend up to 70% of the value of commercial properties and I don’t know of any mortgage insurers who will lend on commercial property. 
Interest rates for a loan on commercial properties are usually higher than for residential properties – sometimes around 1% higher. 
Investors need significantly more equity to purchase a commercial property. This is partly because a bigger deposit is required and also because a good commercial property usually costs significantly more than a house or apartment. Sure you could buy cheap shops or factories in secondary centres, but they will usually have secondary tenants who are likelier to go broke and leave you with a vacancy. 
The cycle for commercial properties is different to that for residential properties and is more dependent on the general economic factors than the residential market. 
The lease required for a commercial property is a much more complex and is often prepared by a lawyer. 
It’s easier for the average investor to pick a top performing residential investment. Most know what to look for in a residential property but few would know what a tenant looks for in a good commercial or industrial property unless they have conducted their own business from one. 
While I have a substantial commercial property portfolio, I wish I had moved into commercial property a little later in my investment life as this type of property is more suitable for investors who already have a substantial asset base and have transitioned to the cashflow stage of their lives. It also makes a great investment in your self-managed super fund if you have substantial equity in it.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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myardney-DFoGhGbSJX

Commercial property investment not for everyone

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Albert Bertini's Yarramalong Valley retreat has been listed for sale.
Rosehill Estate is marketed as a corporate retreat,  farm stay or even sales conference prospect with multi-income opportunities.
It's nestled in the heart of the valley about one hour north of Sydney.
Surrounded by forest and with frontage to the Wyong river, it comes with four separate accommodation pavillions.
There's multiple swimming pools and a giant waterslide, plus tennis court, a nine-hole golf course, gymnasium and entertainment club with bar and billards room.
It's been listed by Scott Wall and Paul Burnham from Coustwide First National.
No price indicated has been offered to Property Observer, although the valley talk is $3.5 million plus. 
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jchancellor-FAypfDUnLy

Sydney developer Albert Bertini lists Yarramalong Valley retreat with corporate retreat potential

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 A freestanding Middle Harbour strata-title duplex residence took the top spot on this week's RP Data top 10 sales list.
It has four bedrooms and three bathrooms.
It comes with inclinator access to its shared waterfront facilities, the boatshed, jetty and pontoon with two mooring poles.
It was sold by Pamela Downie and Chris Downie at Richardson &amp; Wrench Castlecrag, whose colleague Mark O'Brien took second place with a Castlecrag house sale.
1. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/1/47_coolawin_road_northbridge_nsw_2063/5068449">1/47 Coolawin Road, Northbridge, NSW, 2063</a>, four-bedroom house, sold at auction on October 10 by Richardson &amp; Wrench Castlecrag for $3.96 million
2. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/58_the_bulwark_castlecrag_nsw_2068/1790408">58 The Bulwark, Castlecrag, NSW, 2068</a>, five-bedroom house, sold at auction on October 10 by Richardson &amp; Wrench Castlecrag for $2.365 million
3. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/13_redcourt_avenue_armadale_vic_3143/15685251">13 Redcourt Avenue, Armadale, VIC, 3143</a>, four-bedroom house, sold at auction on October 13 by Marshall White Real Estate Albert Park for $2.225 million
4. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/33a_osborne_road_manly_nsw_2095/3983552">33A Osborne Road, Manly, NSW, 2095</a>, four-bedroom house, sold at auction on October 13 by McGrath Estate Agents Mosman for $2.2 million
5. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/40_taloombi_street_cronulla_nsw_2230/2018956">40 Taloombi Street, Cronulla, NSW, 2230</a>, three-bedroom house, sold prior to auction on October 13 by Gibson Partners Real Estate for $1.7 million
6. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/24_middlesex_road_surrey_hills_vic_3127/13403331">24 Middlesex Road, Surrey Hills, VIC, 3127</a>, five-bedroom house, sold at auction on October 13 by Fletchers Real Estate Canterbury for $1.66 million
7. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/218_albert_road_strathfield_nsw_2135/6478262">218 Albert Road, Strathfield, NSW, 2135</a>, five-bedroom house, sold at auction on October 13 by Devine Real Estate Strathfield for $1.582 million
8. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/2_wingate_avenue_eastwood_nsw_2122/2211589">2 Wingate Avenue, Eastwood, NSW, 2122</a>, four-bedroom house, sold prior to auction on October 12 by First National Epping Central for $1.552 million
9. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/52_austin_street_lane_cove_nsw_2066/3584644">52 Austin Street, Lane Cove, NSW, 2066</a>, four-bedroom house, sold at auction on October 13 by McGrath Estate Agents for $1.52 million
10. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/22_highgate_grove_ashburton_vic_3147/14612847">22 Highgate Grove, Ashburton, VIC, 3147</a>, four-bedroom house, sold at auction on October 13 by Kay &amp; Burton Real Estate South Yarra for $1.417 million 
 
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Richardson & Wrench Castlecrag takes top two spots on RP Data's top 10 weekly sales

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Should you consider buying an investment property interstate?
I often get asked this question.
Some people say you should only buy within the area you live in because you are familiar with the prices, can drive past to inspect the property and if required make your own repairs.
While all those reasons have merit, the answer goes far beyond this. 
There are several really important reasons why you should invest in properties interstate, and it’s more about good investment principles than convenience. 
Here are a few: 
1. Ride the property wave
The property cycle moves differently in different states. When one state is at the top of the property cycle other states could be at the bottom. You should buy at the bottom of the wave and ride the property wave.
2. The property clock
The property market moves through a cycle and when things are booming in Victoria they may not be booming in NSW. When they are slow in Perth they might be booming in South Australia.
Currently Melbourne is oversupplied, Sydney is “steady as she goes”, Queensland is at the bottom of the cycle but the Gold Coast is anticipated to stay at the bottom for many years to come, while Brisbane is showing signs of life. Perth is steady as she goes, and so on.
As you can see, each state is at a different part of the cycle, so it’s important you time the purchase at the bottom of the cycle.
Buying in your own suburb or state might not be the proper thing to do if you are at the top of the cycle.
 
<hr class="system-pagebreak">
 
3. Land tax
Each state has different land tax rules and allows a certain land tax threshold before land tax is payable.
Once you have “used up” your land tax threshold in one state by having several properties held in that state, further properties in that state will attract higher rates of land tax.
If you then buy in another state, the land tax threshold starts again.
Hence another reason to buy in other states is because of the land tax you are prepared to pay. 
If you carefully manage the timing of your new purchases you could buy both at the bottom of the cycle and minimise your land tax by buying in the right state at the right time. 
For example, while the property cycle suggests Brisbane is at the bottom right now and may be the best place to buy your next investment property, if you already have several properties in the state of Queensland and have breached the land tax threshold in Queensland. 
Further properties bought in Queensland (whether they are in Brisbane, Townsville or the Gold Coast) would incur excessive land tax.
In this instance, you should consider investing in another state that is at or close to the bottom of the cycle and one where you have not used up the land tax threshold yet.
In the above example you may consider buying in Darwin if you have no properties there, as you have the full Northern Territory land tax threshold to take advantage of.
Therefore, careful management of your property investment strategy could mean you pay no land tax at all, even while holding over a dozen or so properties.
Wouldn’t that be good?
4. Diversification
Just as it’s important to diversify your share portfolio it’s also important to diversify your property portfolio.
Diversification means that when some properties are slowing down in some states you should have properties in other states that are growing.
This will also help manage your bank’s stress levels because while some properties they hold as security are going down in value the other ones they are holding may have gone up. 
Risk management is about ensuring your banks do not force you to refinance when the market values are down or you are forced to sell properties when the market is down.
While there are emotional reasons for investing in the state or suburb you feel most comfortable in, investing is much more scientific than using one’s “feelings”. 
It’s always best to use professionals to assist in property selection because they have the research material to determine where you should be investing.
Timing is so important because the market could change within months.
Get a property accountant to assist you with buying it in the right structure to minimise tax and give you the flexibility should your circumstances change in the future.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a> accountants and a leading property tax specialist. He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
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Four reasons you should consider investing in property interstate: Ed Chan

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A Balmain East home going to auction this week could demonstrate the dangers of overcapitalising.
There’s a website, <a target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season <a rel="nofollow" target="_blank" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" style="font-size: 14px;">Property Observer readers have their own competition, which you can access here</a><a rel="nofollow" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF">.</a> The winner of the overall competition will win $1,000.
<img src="/images/stories/2012/10/darlingst.jpg">
Since they purchased it in 2006 for $1.4 million, the new owners have “gone to town” on the renovation for <a target="_blank" href="https://www.realestate.com.au/property-house-nsw-balmain+east-111628587">110 Darling Street, Balmain East</a> (pictured above). Top-of-the range finishes and a view of the harbour cap off this stunning five-bedroom home.
The question for tycoons is: has the owner over capitalised? When owners spend a lot of money renovating a property their valuation can be out of whack with the wider market.
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Sydney auction tipping: Stunning renovated home in Balmain East

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Reductions in fixed mortgage rates have not kept pace with variable-rate cuts since the RBA started cutting the cash rate in November last year and have further to fall, according to analysis by mortgage comparison website Mozo.com.au.
Its research reveals that the major banks have cut their standard variable rates by an average of 116 basis points between November 2011 and October 2012 but average one-year fixed rates have only fallen by 96 basis points and average three-year fixed by 94 basis points.
As the Greater Building Society announced its one-year fixed rate would fall below 5% from tomorrow (4.99%), Mozo's Peter Marshall told Property Observer fixed rates “still have some way to fall”.
“Fixed rates have fallen swiftly in the last few months in particular, but they have still not fallen as much as variable since November," says Marshall, product data manager at Mozo.
“And most analysts agree there are more cuts coming through from the RBA,” he says.
Marshall expects lenders to continue to cut fixed rates over the next week or so.
He says it currently makes “very good sense" to consider splitting your loan between fixed and variable products.
“Some lenders will do a sharper fixed rate if you only fix up to 50% of your loan."
He says currently, non-bank lender eMoney  is offering a three year fixed-rate of 5.25% but only if you fixed up to half the loan.
“It’s a really good strategy as you get some benefit if rates fall, but but no repayment shocks”
Marshall also says it pays to look around beyond the major banks.
On average the big four have cheaper fixed rates than other banks, mutuals and non-bank lenders, but when you drill down to individual lenders, the major banks don’t compete.
“There are plenty of other providers offering lower rates,” he says, providers borrowers are happy with a non-big brand lender.
“For borrowers wanting the security of a major lender, it’s worth looking at UBank, owned by NAB and the same goes for Bankwest, owned by Commonwealth Bank.
“You get the confidence of a major lender without having to pay for the privilege."
Changes in rates while the RBA has cut the cash rate by 150 basis points, from November 1, 2011 to October 18, 2012 
<table border="0" cellspacing="0" cellpadding="0" width="389"><tbody>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average SVR
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
7.78
</td>
<td valign="bottom" width="104" nowrap>
6.62
</td>
<td valign="bottom" width="66" nowrap>
-1.16
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
7.70
</td>
<td valign="bottom" width="104" nowrap>
6.63
</td>
<td valign="bottom" width="66" nowrap>
-1.07
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
7.51
</td>
<td valign="bottom" width="104" nowrap>
6.40
</td>
<td valign="bottom" width="66" nowrap>
-1.11
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
7.01
</td>
<td valign="bottom" width="104" nowrap>
5.98
</td>
<td valign="bottom" width="66" nowrap>
-1.03
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average 1 yr fixed
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
6.49
</td>
<td valign="bottom" width="104" nowrap>
5.53
</td>
<td valign="bottom" width="66" nowrap>
-0.96
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
6.65
</td>
<td valign="bottom" width="104" nowrap>
5.66
</td>
<td valign="bottom" width="66" nowrap>
-0.99
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
6.48
</td>
<td valign="bottom" width="104" nowrap>
5.68
</td>
<td valign="bottom" width="66" nowrap>
-0.80
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
6.50
</td>
<td valign="bottom" width="104" nowrap>
5.79
</td>
<td valign="bottom" width="66" nowrap>
-0.71
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average 3 yr fixed
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
6.49
</td>
<td valign="bottom" width="104" nowrap>
5.55
</td>
<td valign="bottom" width="66" nowrap>
-0.94
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
6.61
</td>
<td valign="bottom" width="104" nowrap>
5.63
</td>
<td valign="bottom" width="66" nowrap>
-0.98
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
6.53
</td>
<td valign="bottom" width="104" nowrap>
5.70
</td>
<td valign="bottom" width="66" nowrap>
-0.83
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
6.53
</td>
<td valign="bottom" width="104" nowrap>
5.76
</td>
<td valign="bottom" width="66" nowrap>
-0.77
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
 
</td>
<td valign="bottom" width="264" colspan="3" nowrap>
Average 5 yr fixed
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Provider type
</td>
<td valign="bottom" width="93" nowrap>
1/11/2011
</td>
<td valign="bottom" width="104" nowrap>
18/10/2012
</td>
<td valign="bottom" width="66" nowrap>
Change
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Big 4 banks
</td>
<td valign="bottom" width="93" nowrap>
7.00
</td>
<td valign="bottom" width="104" nowrap>
5.85
</td>
<td valign="bottom" width="66" nowrap>
-1.15
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Other banks
</td>
<td valign="bottom" width="93" nowrap>
7.07
</td>
<td valign="bottom" width="104" nowrap>
6.06
</td>
<td valign="bottom" width="66" nowrap>
-1.01
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Mutuals
</td>
<td valign="bottom" width="93" nowrap>
6.96
</td>
<td valign="bottom" width="104" nowrap>
6.15
</td>
<td valign="bottom" width="66" nowrap>
-0.81
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap>
Non-bank lenders
</td>
<td valign="bottom" width="93" nowrap>
7.03
</td>
<td valign="bottom" width="104" nowrap>
6.39
</td>
<td valign="bottom" width="66" nowrap>
-0.64
</td>
</tr>
<tr>
<td valign="bottom" width="125" nowrap></td>
<td valign="bottom" width="93" nowrap></td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
<tr>
<td valign="bottom" width="219" colspan="2" nowrap>
 
Source: mozo.com.au
</td>
<td valign="bottom" width="104" nowrap></td>
<td valign="bottom" width="66" nowrap></td>
</tr>
</tbody></table>
</body></html>

lschlesinger-FZcF9M3vE6

More room for fixed rates to fall and better deals outside major banks: Mozo

<html><body>
This week I went to an eye specialist. I’ve decided it was time to consider laser surgery as I’m short-sighted and need glasses for driving and now I also need glasses to read (yes, I know, a sign of ageing!).  I spent about an hour peering into various machines while my eyes were scanned, measured and flashed at.  At one point I thought I was in a disco with strobe lighting, but unfortunately no John Travolta materialised.

Afterwards the specialist reviewed the enlarged computer images taken of my eyes; I asked him if the measurements were showing the contours of my eyes. He looked at me and said yes and was a little curious to know how I knew this, apparently not many people ask.  I told him I was a property developer and it reminded me of the contour survey that we need before we start developing our sites (pardon the pun... get it sight / site?!).

So eyes and land both need surveying before any work can be done. It makes sense, really.  The surgeon needs detail such as the height of my cornea, and the builder needs to know the fall of the land.

[smartcode_project:default project_id=27783]

This made me reflect on how important it is to understand the contours of land. I find that many of our clients do not understand what a contour survey is and why it’s necessary, so I thought I’d focus on this today.

In the property world, a contour is an outline of a mass of land. A contour or detailed survey is done by a surveyor and required before you can start on the design of your buildings. Contour lines will be marked on the survey.  Below are some tips* that can help explain the marking you’ll see:

<ul>
<li>All points on a contour line are of the same elevation.</li>
	<li>No two contour lines can meet or cross each other except in the rare case of an overhanging vertical cliff or wall</li>
	<li>Closely spaced contour lines indicate steep slope</li>
	<li>Widely spaced contour lines indicate gentle slope</li>
	<li>Equally spaced contour lines indicate uniform slope</li>
	<li>Closed contour lines with higher elevation towards the centre indicate hills</li>
	<li>Closed contour lines with reducing levels towards the centre indicate pond or other depression.</li>
	<li>All contour lines must close either within the map boundary or outside.</li>
</ul>
*Reference: engineeringcivil.com and Ramasesh Iyer 

Once the architect or draftsperson has a contour survey then they can begin work on the plans, and the survey will indicate how much site works may be required.  For example, a sloping site will need to be levelled if you are using a slab construction and therefore the approximate height of retaining walls and volume of spoil to be removed need to be calculated.  These costs need to be allowed for by the builder and he depends on the measurements on the contour survey for this data.

[smartcode_project:default project_id=7633]

<hr class="system-pagebreak">
 

Click to enlarge

<a href="/images/stories/2012/10/survey.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/surveythumb.gif"></a>

On this survey above, if you look at the first number on the top right-hand side of the survey it reads 1.06.0 then the next number down reads 105.5, this tells us there is a half metre fall from the rear boundary to this contour line. The surveyor has used 500mm intervals to the next contour line.  The last measurement at the front boundary reads 99.0.  So this tells me the site has about a seven-metre fall, so it’s a steep site. The interesting thing showing on this survey is the area in the middle of the survey where there is a break in contour lines. The surveyor has marked the survey with broken lines to indicate a change in grade. Why would this be?

I can tell you why. There was an old house built right in the middle but it had been demolished, so this part of the land had been levelled. This site, while steep, was purchased for a pier, bearers and joist style project, and the view from the top of the site is spectacular out over the valley. So it’s certainly not an ideal development site, but we made it work nicely as a dual-occupancy project.

[smartcode_project:default project_id=8082]

Accuracy of a survey is extremely important. On one site we found the surveyor (not mine, as this was a development application-approved site purchased) had taken a measurement from one metre in from the rear boundary instead of right on the rear boundary. This was not picked up until after site preparations started and the site was cut. As the site sloped from rear to front, the retaining required on this rear boundary was much more than the builder had allowed for based on the plans. So it is important if you are buying DA-approved sites, to have your own surveyor double-check the plans and proposed levels that are based on the original contour survey.

I’ll keep you updated on whether I have my sight fixed but in the meantime, set your sights on the contour survey before you start developing property.

Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
</body></html>

jochivers-wq5Bp59R5a

What you need to know about contours on a property development site

<html><body>
The significant amount of interest in a Mount Waverley property has encouraged its agent to lift his price expectations. 
There’s a website, <a href="https://www.propertytycoon.com.au/" target="_blank">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;" href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" target="_blank" rel="nofollow">Property Observer readers have their own competition, which you can access here</a><a href="https://www.propertytycoon.com.au/join-league/S7S123C487R8OOQF" rel="nofollow">.</a> The winner of the overall competition will win $1,000.
When an agent lifts the quote through a campaign that is a clear sign he or she has a lot of interest in the property. During early stages of the advertising for 15 Bond Street, <a href="/news">Mount Waverley</a>, it was expected to achieve a sale of between $900,000 and $1 million.
<img src="/images/stories/2012/10/bondst.jpg">
However, this is a unique property that backs onto Valley Reserve, and it has attracted a significant amount of interest, with more than 75 groups inspecting the property. Agent Cedric Newbond from Hocking Stuart has indicated interest is now above $1million. As a result he has revised the quote range to $1 million to $1.1 million.
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Melbourne auction tipping: Unique Mount Waverley property with upwardly revised price hopes

<html><body>
The threat of a bubble building in the Australian housing market has been dismissed by senior Treasury economist David Gruen.
Gruen, executive director of Treasury’s macroeconomic group, says there is no danger of a housing bubble because of Australia has an undersupply of homes unlike other major economies, which have built too many houses.
The housing bubble debate has received fresh oxygen of late with senior industry figures warning about the threat posed by rising house prices including ANZ Bank Australia CEO <a href="https://www.propertyobserver.com.au/residential/anz-boss-adds-to-growing-list-warning-of-australian-housing-bubble-risk/2012100456996">Phil Chronican</a> and Barry Brakey head of property at the Future Fund.
However, others like <a href="https://www.propertyobserver.com.au/residential/recovering-housing-market-at-630-on-the-property-clock-with-no-risk-of-a-housing-bubble-john-symond/2012101157115">John Symond</a> of Aussie Home Loans, Meriton’s Harry Triguboff and Australian Property Monitors’ Andrew Wilson have dismissed these concerns.
Gruen also expects the housing market to play a role in driving the economy forward once the mining boom has run its course.
“In a couple of years, when mining investment does not contribute to growth any more, we will need other things to contribute to growth,” Dr Gruen told a Senate budget estimates hearing in Canberra today, as reported by the Australian Financial Review.
“One of the most obvious things [to contribute to growth] is the housing market, given that we think there is undersupply.
Such a contribution, he said, would be “a natural and desirable development and we are seeing early signs of it”.
Gruen said Australia was building no more dwellings now than it was a decade ago, so “we think there is net undersupply in the housing market”.
He contrasted the Australian undersupply picture with that of Spain, Ireland, UK and the US where very large house price increases were accompanied by “truly extraordinary” increases in supply.
He also told the estimates committee he expected the federal government to deliver on its budget surplus ambitions.
“Provided we are in a world in roughly trend growth and there is room to move on monetary policy, it seems to me an appropriate strategy to be aiming for surplus.”
And he expects the mining industry, currently in a lull with commodity prices falling, to be boosted again as more mining investment projects are  finalised.
“I guess I wouldn’t call the resource prices a bubble; I would call it a natural understandable response to a big increase in demand that was unanticipated,” he said.
</body></html>

No risk of housing bubble forming in Australia: Treasury economist David Gruen

<html><body>
The Greater Building Society has cut its one year fixed-rate packaged home loan by 30 basis points to 4.99%.
This is the only home loan offering currently below 5% and the first time a home loan from The Greater had been under 5% since July 2009.
The mutual lender has also cut its three and five year fixed-rates by 15 points to 5.34% and 5.54% respectively.
Product manager David Bryde says this gives The Greater the lowest home loan rate in Australia.
The new rates are effective tomorrow and open to both new and existing customers.
The new fixed rates are offered as part of  The Greater’s Ultimate Home Loan home loan package which includes a fee free transaction account, discounted insurance, financial planning, and a linked credit card with waived annual fee.
Current cheapest one-year fixed rate loans
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0">
<colgroup>
<col width="173">
<col>
<col width="369">
<col>
<col width="60">
<col>
</colgroup>
<tbody>
<tr height="21">
<td height="21" width="173">1 year fixed rates</td>
<td width="369"></td>
<td width="60"></td>
</tr>
<tr height="21">
<td height="21">Provider</td>
<td>Product</td>
<td>Rate %</td>
</tr>
<tr height="21">
<td height="21">Greater Building Society</td>
<td>Fixed Rate Home Loan (Ultimate Home Loan Package)</td>
<td>4.99</td>
</tr>
<tr height="21">
<td height="21">My Mortgage Freedom</td>
<td>Fixed Rate (LVR 75%-90%)</td>
<td>5.09</td>
</tr>
<tr height="21">
<td height="21">QT Mutual Bank</td>
<td>Fixed Rate (Choices)</td>
<td>5.29</td>
</tr>
<tr height="21">
<td height="21">Greater Building Society</td>
<td>Fixed Great Rate Home Loan</td>
<td>5.34</td>
</tr>
<tr height="21">
<td height="21">Morgan Brooks Direct</td>
<td>Fixed Rate Home Loan</td>
<td>5.34</td>
</tr>
<tr height="21">
<td height="21">NAB</td>
<td>Tailored Home Loan (Choice Package)</td>
<td>5.34</td>
</tr>
</tbody>
</table>
Source: Mozo
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