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.

[smartcode_project:default project_id=145324 project_image_fid=372749]

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.

[smartcode_project:default project_id=145324 project_image_fid=354347]

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]

Joel Robinson

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.

[smartcode_project:default project_id=152069 project_image_fid=374394]

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.

[smartcode_project:default project_id=152069 project_image_fid=374399]

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.

[smartcode_project_cta:default project_id=152069]

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.

[smartcode_project:default project_id=95289 project_image_fid=366769]

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.

[smartcode_project:default project_id=95289 project_image_fid=366762]

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

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

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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Residential vacancies have slipped in every state capital except Brisbane and Darwin over September, according to SQM Research.
Hobart experienced the biggest proportional drop in vacancy rates, slipping from 2.7% in August with 730 vacancies to 2.3% in September with 632 vacancies.
Sydney's vacancy rate dropped slightly, from 1.8% at 9,773 vacancies in August to 1.7% in September at 9,296 vacancies.
Melbourne slipped ever so slightly from 11,702 vacancies to 11,649 vacancies, leaving the vacancy rate of 2.8% unchanged.
Canberra dropped from 1.2% with 590 vacancies to 1.1% with 538 vacancies.
Vacancies in Brisbane rose slightly from 4,003 vacancies in August to 4,231 vacancies in September, leaving the vacancy rate unchanged at 1.5%.
Darwin and Perth both recorded low vacancy rates as usual, at 0.5% and 0.6% respectively.
In Perth vacancies dropped from 1,177 to 1,063, and in Darwin vacancies rose slightly from 114 vacancies to 131 vacancies.
Melbourne’s vacancy rate was closest to the 3% figure SQM considers to be the equilibrium figure for residential figures.
Across the nation vacancies slipped from 50,774 to 49,664 leaving the vacancy rate unchanged at 1.8%.
SQM director Louis Christopher says the status quo remains unchanged across Australia.
“Residential rental vacancy rates remain in favour of landlords as has been the case for a number of years now. Going forward I see no material change to this current trend until there is a material increasing in housing completion levels. Currently there is no evidence that such an event is about to occur,” Christopher says.
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Residential vacancy rates fall in every capital except Brisbane and Darwin in September: SQM Research

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Perth house prices are expected to grow by a cumulative 20.4% over the next three years to 2015, according to the latest QBE LMI Housing Outlook report prepared by BIS Shrapnel.
The report anticipates the median Perth house price to rise from $505,000 to $580,000 over the next three years, with strong growth also expected for Brisbane (from $450,000 to $515,000) and Sydney ($660,000 to $750,000).
Sydney house price growth is expected to be modest in 2013, at just 2.7%, but is forecast to pick up in 2014 and 2015.
Darwin house prices are also expected to continue to surge rising to a median of $650,000 – making it the second most expensive housing market after Sydney.
Melbourne house prices will continue to tread water over the next three years, rising by less than 2% annually to 2015, with median house price increasing from $540,000 to $557,000, according to the report.
Modest house price growth is also anticipated for Adelaide, Canberra and Hobart.
 Median house price growth forecasts 2013 – 2015 (major capitals) 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="60">
 
</td>
<td valign="top" width="79">
Perth
</td>
<td valign="top" width="76">
Brisbane
</td>
<td valign="top" width="76">
Sydney
</td>
<td valign="top" width="94">
Adelaide
</td>
<td valign="top" width="104">
Melbourne
</td>
</tr>
<tr>
<td valign="top" width="60">
2013
</td>
<td valign="top" width="79">
6.3%
</td>
<td valign="top" width="76">
3.9%
</td>
<td valign="top" width="76">
2.7%
</td>
<td valign="top" width="94">
1.3%
</td>
<td valign="top" width="104">
0.9%
</td>
</tr>
<tr>
<td valign="top" width="60">
2014
</td>
<td valign="top" width="79">
7.9%
</td>
<td valign="top" width="76">
7.8%
</td>
<td valign="top" width="76">
6.1%
</td>
<td valign="top" width="94">
2.5%
</td>
<td valign="top" width="104">
1.5%
</td>
</tr>
<tr>
<td valign="top" width="60">
2015
</td>
<td valign="top" width="79">
6.2%
</td>
<td valign="top" width="76">
6.2%
</td>
<td valign="top" width="76">
7.1%
</td>
<td valign="top" width="94">
2.4%
</td>
<td valign="top" width="104">
1.6%
</td>
</tr>
<tr>
<td valign="top" width="60">
2015 Median
</td>
<td valign="top" width="79">
$580,000
</td>
<td valign="top" width="76">
$515,000
</td>
<td valign="top" width="76">
$750,000
</td>
<td valign="top" width="94">
$580,000
</td>
<td valign="top" width="104">
$557,000
</td>
</tr>
</tbody></table>
Median house price growth forecasts 2013 – 2015 (minor capitals) 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="64">
 
</td>
<td valign="top" width="76">
Darwin
</td>
<td valign="top" width="76">
Canberra
</td>
<td valign="top" width="76">
Hobart
</td>
</tr>
<tr>
<td valign="top" width="64">
2013
</td>
<td valign="top" width="76">
5.3%
</td>
<td valign="top" width="76">
-0.8%
</td>
<td valign="top" width="76">
-1.1%
</td>
</tr>
<tr>
<td valign="top" width="64">
2014
</td>
<td valign="top" width="76">
5%
</td>
<td valign="top" width="76">
0%
</td>
<td valign="top" width="76">
1.1%
</td>
</tr>
<tr>
<td valign="top" width="64">
2015
</td>
<td valign="top" width="76">
3.2%
</td>
<td valign="top" width="76">
1.4%
</td>
<td valign="top" width="76">
1.4%
</td>
</tr>
<tr>
<td valign="top" width="64">
2015 Median
</td>
<td valign="top" width="76">
$650,000
</td>
<td valign="top" width="76">
$498,000
</td>
<td valign="top" width="76">
$375,000
</td>
</tr>
</tbody></table>
Source: BIS Shrapnel

<hr class="system-pagebreak">
The report says the residential market in Perth has stagnated after prices peaked in December 2007, with the median house price reaching $478,000 as a result of deteriorating housing affordability.
“Conditions in Perth are now beginning to turn around and point to a recovery.
“The combination of rising underlying demand and falling completions has seen a substantial deficiency emerge.
“This is being reflected in vacancy rates falling to 1.9% in June 2012, which is well below the balanced market rate of 3%, and underpinning stronger rental growth."
The report also notes that employment growth has also been strong, with the unemployment rate well below 5% while affordability has also improved significantly.”
In addition, “rising investment in new mining and resource projects will lead to further improvement in sentiment”.
The relatively strong outlook for Sydney is based on rental growth continuing to remain solid, “outpacing recent price growth, and driving an improvement in yields”.
“First-home buyer demand — albeit inconsistent due to changes in state government first home buyer incentives — appears to be improving, while the extended period of weak prices together with interest rate reductions over 2011-12 mean that affordability is now at its best level since 2001.
“Given this, the main factor holding back the Sydney market now appears to be confidence. With economic growth forecast to become more broad based outside the resource sector in 2012-13, this should help sentiment,” says the report.
However, in Melbourne “high level of new dwelling construction has coincided with slowing population growth and the market is estimated to have moved from close to balance at June 2011, to a rising underlying surplus of dwellings at June 2012”.
As a result rental vacancy rates have also begun to increase and are expected to continue to rise as most of the investor-purchased apartments work their way through to completion.
The report says there is little in the Melbourne market at the moment to drive demand or price growth, but major price declines are not expected.
Looking at the housing market as a whole, Jenny Boddington, chief executive of QBE LMI, says the affordability of housing is “currently at its best level across most capital cities since the first half of last decade, with the exception of a brief period in 2009 when affordability spiked due to aggressive cuts in interest rates”.
“Notably, affordability is expected to further improve as standard variable interest rates are tipped to fall by another 25 basis points in 2012-13.
“Consequently, we should see increased housing turnover in the market as first home buyer numbers pick up and have a positive effect on upgrader activity, which in turn is predicted to further spur investors return to the market.”
The report also says first-home buyer demand is now trending upwards following depressed activity since 2008-09.
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lschlesinger-FZcF9M3vE6

Perth to lead house price growth over next three years, with Sydney and Brisbane also strong: BIS Shrapnel and QBE

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Bluechip Properties, which owns a chain of hotels operating under the Leisure Inn brand and turns over $5 to $6 million a year, has slipped into receivership.

David Winterbottom of Korda Mentha has been appointed as receiver of the company, which owns properties including Hobart's Macquarie Inn and Woolmers Inn and Launceston's Penny Royal.
The Macquarie Inn has already been listed for sale by Korda Mentha.
Bluechip is owned by Sydney property mogul Kurt Braune and the Leisure Inn brand forms part of the 25-hotel StayWell Hospitality Group.
Richard Doyle, director of StayWell, told SmartCompany that Bluechip is a separate entity and Staywell manages the Bluechip hotels, a role which is continuing despite the receivership.
"The StayWell Group owns Leisure Inn brand and has licensed it to Bluechip Properties," Doyle says.
Doyle says his understanding is that the hotels are trading strongly but were tipped into receivership by existing debt obligations.
"The group got into difficulty because another entity associated with their group was involved in the collapse of an office facility in Sydney owned by New Invest, it was nothing to do with the management," he says.
"My understanding is the reason the group is in trouble is the bank was not paid under guarantee in relation to that property."
The major creditor is Bankwest.
Braune puts the reason for the collapse as an ongoing dispute with StayWell, which had been heard in the Supreme Court in March.
"We were continuing our negotiations with StayWell in good faith and thought we were just about there," he told The Australian Financial Review.
Braune said he had a good relationship with Bankwest until it called in receivers "out of the blue".
Winterbottom told SmartCompany the receivership has nothing to do with the trading of the hotels but would not comment further.
"All three hotels are trading very well and it is business as usual," he says.
Bankwest confirmed the hotel chain had entered receivership but had no further comment.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Bluchip hotel chain, which operates under the Leisure Inn brand, enters receivership

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I am always fascinated by people who say now is not the right time to buy property, because a comment like this fails to recognise property is primarily used as shelter. It is a necessity, and as our lives evolve over time the location, size and style of accommodation needs to evolve with us.
Telling a young couple who are living in a one-bedroom apartment with a baby on the way that now is not the right time to make your move is simply not helpful.
What is helpful to these people is to understand how they can strategically make their moves in and out of the property market. They must ensure they secure a roof over their head that provides the accommodation they require but also maximises the investment potential for their future.
There are always opportunities in any market regardless of where we are in the cycle. This spring is no different, as it will present numerous opportunities for buyers who are able to find ways to use it to their advantage.
Although some home buyers need to relocate for work or other reasons, in the main there are two types of home buyers in the market: those who need to upsize and those who need to downsize.
Let’s tackle the upgraders first. Say you own a property currently worth $500,000 and need to spend $800,000 on a new home. Over the last couple of years the market has come off by around 10%, meaning you could have sold for $550,000. However, the $800,000 was also worth 10% more and has come off by $80,000 since the market peaked. By selling and upgrading now you will be up $30,000.
 
<hr class="system-pagebreak">
 
For the home owners who are comfortable for the time being but know they need to move soon, buying the new home now and renting it out for a couple of years is worth considering. Although this will put cashflow under pressure, they will get the benefits of negative gearing and be in a position to sell the old home in a stronger market.
For those moving in the other direction it is a different story. They incur a loss from selling the more valuable property compared with the cheaper one. Downsizers need to be thinking about pouring as much money into a tax sheltered environment such as super to help fund their retirement. Their home is the ace up their sleeve because every extra dollar they sell for is completely tax-free.
Downsizers really have two options, one more aggressive than the other. In a weak market it does not make sense to sell and buy a cheaper property, so it is better to hold your ground for as long as you can.
However, people who have lived in their home for many years usually have little debt and a significant amount of equity at their disposal. For those who have the stomach for it the current market is a great time to buy the retirement property, rent it out for a couple of years and then sell their home when the market picks up. This strategy will allow them to negatively gear the property in the short term and maximise the value of their greatest tax-free asset at a future date.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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Now is always the right time to buy for some home buyers: Mark Armstrong

<html><body>
Last week’s cash rate cut caught a few of us here at the REIQ office a little by surprise. The first Tuesday of every month, we generally make a fairly educated assessment about what will happen at the Reserve Bank meeting that day, and I am happy to say that we get it right most of the time. Not so last Tuesday, unfortunately.
I had been sure the Reserve would cut rates, but that morning I changed my mind – something I now bitterly regret, of course. While I certainly felt the wobbly nature of the economy here and overseas warranted a rate reduction, there had been strong economic reasons for a cut in the past and the Reserve had done nothing, so I figured that is what it would do again.
At approximately 2.31pm AEST I discovered that the Reserve’s assessment of the economy had in fact been similar to mine (until I changed my mind, that is) and the cash rate had been lowered by 25 basis points to 3.25% – the lowest it had been since 2009.
But while cash rate cuts may seem like a very good thing, they also signal that the economy is not quite as flash as we would like it to be. Throughout 2011, in my humble opinion, the Reserve left the cash rate far too high for far too long because on the ground it was fairly obvious that things were pretty average. The property market was very flat, the retail sector was flatter, and to top it off we’d had our summer of natural disasters, which affected thousands of Queenslanders as well as the morale of an entire state.
Now with interest rates heading towards where they should have been last year (in my humble opinion), the question is how much lower are they likely to go?  Indeed, survey results released this week indicated that more than two-thirds of first-home buyers were intending to fix their home loan rate over the next 12 months to gain some repayment certainty.
I read somewhere once that when it comes to the game of fixing the interest rate on your home loan there is usually only one winner – and it is unlikely to be you. That said, I fixed a portion of the loan on my first home five years ago. Within 12 months, due to rampant inflation, rates had shot up to more than 9%, so that fixed portion actually saved my bacon.
Unfortunately, a year after that the GFC happened and rates plummeted to historic lows, so that fixed portion soon resembled some type of greedy goblin when I paid my mortgage every month. In hindsight, I think I ended up winning some and losing some.  But with fixed rates now heading towards 5%, I am starting to consider fixing once more but alas remain annoyingly undecided.
To fix or not to fix? That is the question. Whether ’tis nobler in the mind to suffer the slings and arrows of outrageous fortune, or to take arms against a sea of troubles.
See, even Shakespeare didn’t know what to do.
Nicola McDougall is executive manager for corporate affairs for the <a href="https://www.reiq.com/" target="_blank">Real Estate Institute of Queensland</a>. This article originally appeared on the<a href="https://reiqblog.com/" target="_self"> REIQ blog</a>.
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You win some and lose some when you fix your mortgage

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Prime CBD non-residential property such as offices and shopping centres have delivered rental yields of between 5% and 10% to investors consistently every year going back to 1986, according to AMP Capital.
However, as the graph below shows, capital gains tend to fluctuate.
The graph highlights the income and capital gains returns of the benchmark IPD Australian All Property Index since 1986.
The index tracks 1,629 direct property investments worth $136 billion.
Click to enlarge
<a href="/images/stories/2012/10/ampoct17.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/10/ampoct17thumb.gif"></a>
 
According to Damian Fitzpatrick, fund manager for property at AMP Capital, offices and shopping centres are a key part of a diversified portfolio because they can provide stable, reliable income streams.
“These investments can also provide a hedge against inflation due to regular rent reviews that are linked to the consumer price index (CPI).
“However there are still underlying risks in the sector, therefore portfolio diversification and experience in managing these assets are critical,” he says.
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Consistent rental returns on direct commercial property, but capital gains fluctuate: AMP

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There has been concern that the Victorian property market was falling, but Real Estate Institute of Victoria figures show that prices were stable.
<iframe src="https://player.vimeo.com/video/51390001" width="470" height="264" frameborder="0" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>
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Victorian property market very stable for the past quarter: REIV

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August ABS lending finance data reflects a softer commercial lending outlook for the mining states on the back of weaker commodity prices.
In original terms, commercial finance decreased in Victoria, South Australia, Western Australia and Tasmania in August and was higher in all other states and territories.
The largest monthly decrease was in South Australia (-17.2% month-on-month) followed by Tasmania (-11.5% m/m) and Victoria (-6.6% m/m).
In annual terms, commercial finance growth continues to be highest in Western Australia (+13.2% year-on-year), followed by Queensland (+3.6% y/y), while commercial finance in Victoria is the weakest (-8.1% y/y).
Looking forward, despite a softer economic outlook, a solid pipeline of committed major mining and energy projects should support moderate growth in commercial finance in the mining states into 2013, while the non-mining states are expected to continue to underperform.
Click to enlarge
<img src="/images/stories/2012/10/anzoct17thumb.gif">
Nationally, commercial lending growth has more recently been weighed down by financial market volatility and global economic weakness – from a recent peak of $34.5 billion in April 2012 to $27.6 billion in August – to be 13.3% lower over the year to August 2012 in trend terms.
Over the same period, personal lending increased by a modest 1% in trend terms, reflecting weak margin lending and continued volatility in equity markets.
In contrast, strong annual trend growth in lease finance (+25.3% y/y to August) was driven by an increased aversion to asset ownership and exposure to asset price risk.
In original terms, annual growth in wholesale finance was higher (+32.4% y/y), while finance for the purchase of plant and equipment (-1.1% y/y) and construction finance (-62.5% y/y) were lower in August.
In recent years, commercial fixed lending has been increasingly driven by lending for the purchase of plant and equipment, while subdued non-residential building and investment has provided a drag.
However, uncertainty about the outlook for the mining economy in recent months has dampened growth in plant and equipment lending. Looking through this short-term moderation, the underlying funding requirement for plant and equipment and engineering construction is expected to continue to support moderate business lending growth in the years ahead.
David Cannington is senior property analyst at <a target="_blank" href="https://www.anz.com/corporate/banking-business/large-corporates/property/">ANZ</a>.
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Softer commercial lending outlook for mining states

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There is a place for listed property trusts in an investment portfolio, but only in a supporting capacity, says research firm Morningstar in its latest A-REITs update.
Morningstar says the fundamentals of the sector are now once again “broadly aligned with the core principles of steady, sustainable income-focused returns with the scope for some capital upside”, making AREITs “more attractive on the basis of pure fundamentals”.
However, this increased attractiveness has yet to flow through to increased investor appetite, with A-REITs delivering annual income returns well below global REITs and infrastructure funds – but better than large-cap stocks.
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“Before investing in a dedicated A-REIT vehicle, investors and advisers should first assess the extent of any existing exposures,” says Mark Laidlaw, research analyst at Morningstar Australasia.
“We suggest an allocation of no more than 10% to Australian and global REIT strategies combined, although this will depend on individual needs, objectives, and risk profiles.
“Investors with a more income-focused orientation may look to prefer AREITs, while those seeking a greater growth profile may lean towards global property.
“Any listed property allocation should be considered a relatively defensive component of a broader Australian equities allocation, or housed within a broader global listed property sleeve,” he says.
In its analysis of the sector, Morningstar presents a mostly favourable picture of the sector and says most A-REITs have “cleaned up their business models” after being heavily leveraged and adopting riskier asset management endeavours pre-GFC.
Most A-REITs have returned to “reasonable payout ratios” – from paying out 100% of earnings around 2008 to paying around 80% of earnings currently.
This is much more sustainable, says Morningstar, “and leaves plenty of room to maintain the health of the properties and the trust”.
However, two structural shortcomings of  the A-REITs sector are the lack of diversification – a 47% retail assets allocation – and the concentration of the market in the hands of less than a dozen big developers.
More than 90% of the market capitalisation of the A-REIT sector is held by the top 10 stocks, with Westfield Group and its shopping centre spin-off Westfield Retail Trust accounting for around 40% of the pie.
The other major A-REITs are Stockland, Goodman Group, GPT, Centro, Mirvac, Dexus, Investa, Charter Hall Office REIT and Multiplex.
The sector could lean even more heavily towards retail if Woolworths goes ahead with plans to launch a $1.4 billion shopping centre trust holding around 70 Woolworths-owned and anchor tenanted centres.
Morningstar notes that some fund managers have broadened the range of stocks they invest in to include infrastructure and property-related stocks.
It warns, though, that any further reduction in sector constituents could critically impair fund managers' ability to build portfolios of investable stocks.
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Listed property trusts should only play a supporting role in an investment portfolio: Morningstar

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Cromwell Property Group has recorded a strong investor response to its Ipswich City Heart Trust. an unlisted single property trust comprising the $93 million Ipswich City Heart Building currently under construction in the Ipswich CBD.
More than 800 investors invested around $50,000 each in the trust, with the offer oversubscribed and closing early. 
The trust has raised around $50 million in total.
The nine-storey commercial office and retail building is being built at 117 Brisbane Street and will have the Queensland government’s Department of Public Works as the major tenant.
The trust is a seven-year investment distributing 8% per annum paid monthly to investors and offering capital growth potential and tax-deferred income.
The building is the first stage of ICON Ipswich, a $1 billion revitalisation project that will span four city blocks and deliver approximately 170,000 square metres of master-planned commercial, retail, residential and public space to deliver a “new generation” city centre.
The Department of Public Works will occupy 91% of the 15,600 square metres of office space. There will be an additional 2,134 square metres of retail space over the lower ground, ground and mezzanine levels.
Cromwell CEO Paul Weightman said the recent announcement of an increase in forecast trust distributions (from 7.75% to 8%) combined with falling official interest rates significantly boosted the rate of inflows.
Apart from the 8% annual return, Weightman said expectations of further falls in interest rates made the investment “extremely attractive to yield-conscious investors”.
“The strong response from investors proves the continuing appeal of simple, transparent, yield-based products underpinned by quality Australian commercial property assets,” he added.
Construction of the building commenced in January 2012 and is on target to be completed by September 2013.
“Given the level of inflows over the last two to three months, Cromwell is now focused on meeting this demand for quality direct property by bringing another similar opportunity to market over the next few months,” said Weightman.
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