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.

Joel Robinson

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.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<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

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

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

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?

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<img src="/images/stories/2012/08/30842.gif">
The number of properties available for rent in Victoria for the week ended August 5, according to RP Data. Of these, 13,857 were listed in the last month. There were 24,462 listings during the same week last year.
 
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<img src="/images/stories/2012/08/24734.gif">
The number of properties available for rent in New South Wales for the week ended August 5, according to RP Data. Of these, 12,727 were listed in the last month. There were 21,948 listings during the same week last year.
 
<hr>
 
<img src="/images/stories/2012/08/21787.gif">
The number of properties available for rent in Queensland for the week ended August 5, according to RP Data. Of these, 11,032 were listed in the last month. There were 24,575 listings during the same week last year.
<hr>
 
 
<img src="/images/stories/2012/08/7144.gif">
The number of properties available for rent in Western Australia for the week ended August 5, according to RP Data. Of these, 3,870 were listed in the last month. There were 8,204 listings during the same week last year.
 
<hr>
<img src="/images/stories/2012/08/7057.gif">
 
The number of properties available for rent in South Australia for the week ended August 5, according to RP Data. Of these, 3,403 were listed in the last month. There were 5,732 listings during the same week last year.
 
<hr>
<img src="/images/stories/2012/08/2297.gif">
The number of properties available for rent in Tasmania for the week ended August 5, according to RP Data. Of these, 999 were listed in the last month. There were 1,591 listings during the same week last year.
 
<hr>
 
<img src="/images/stories/2012/08/896.gif">
The number of properties available for rent in ACT for the week ended August 5, according to RP Data. Of these, 439 were listed in the last month. There were 462 listings during the same week last year.
 
<hr>
 
<img src="/images/stories/2012/08/790.gif">
The number of properties available for rent in Northern Territory for the week ended August 5, according to RP Data. Of these, 499 were listed in the last month. There were 915 listings during the same week last year.
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cknowlton-QnEa6ntUYP

Victoria's 30,842 homes for rent lead the nation: A state-by-state analysis: RP Data

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The partial sale and lease back of David Jones’ flagship stores or developing the sites to include residential or commercial property would not add value for shareholders, according to UBS.
Investors and analysts have been analysising the options for David Jones’ three Melbourne and Sydney flagship stores given the recent takeover speculation.
David Jones has been mooted as a potential leveraged buyout candidate, with much of the value around its property portfolio.
The three flagship stores have a $462.5 million book value, but UBS says they could secure $666 million on-market.
UBS considered three options for the properties: develop the sites to add storeys above for residential use; a partial sale; and a partial lease.
The broker concluded that adding storeys above the Sydney store would only add $47 million value, or a mere 9¢ a share, the Australian Financial Review reported.
UBS said combining the two Sydney sites into the one store was unlikely to work, but could add up to 4.1% to David Jones’ earnings per share if it did.
The third option, to explore leasing unproductive space in the higher levels, was “unlikely to be economical given”, the broker said, due to required capital expenditure, low rental rates and potential for new tenants to cannibalise David Jones' retail operations.
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jchancellor-FAypfDUnLy

David Jones flagship stores have $666 million potential 

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In spring we begin to see uplift in listings activity with more properties available for sale and subsequently an increase in auction activity. Spring also brings an improvement in the number of property sales, especially following winter, which is usually a slow period for the housing market.
Spring 2011 delivered a somewhat disappointing selling season, with sales volumes across the combined capital cities down by 3%; lower than they were in the spring of 2010 and with no noticeable improvement from volumes in autumn. The amount of stock available for sale during this period was continually increasing throughout the period to historic high levels, and home values were falling across each capital city market.
Although economic conditions are now not as strong as they were before the financial crisis, generally most indicators are stronger than compared with this time last year.
It is also important to analyse just how the economy is tracking compared with a longer-term average (10 years) so as to achieve a better understanding of the overall state of the economy compared with what may be considered “normal” based on the decade average.
While autumn represents the period when most property sales are made, spring is traditionally the season when more properties come on the market.
Overall, we’ve seen some positive movements for home values, with new stock being added to the market lower and each of the vendor metrics (selling time, vendor discounting and auction clearance rates) all showing an improvement.
Recent economic data also supports a period of stronger conditions with higher levels of consumer sentiment as well as an increase in housing finance commitments, lower standard-variable mortgage rates, and a greater rate of population growth and an improvement in retail trade.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/rpaug9.gif"><img src="/images/stories/2012/08/rpaug9thumb.gif"></a>
Further, given the poor performance of the housing market over the past year, any positive changes are generally moving from a very low base, albeit in the right direction.
Despite a more positive trend for many indicators compared with those of 2011, a comparison with the longer-term trend highlights that many of these indicators are moving off a low base. Additionally, significant challenges remain in the market including:
• The high stock levels;
• Transaction volumes which are below average;
• Lower growth in private sector housing credit;
• Lower levels of consumer sentiment;
• Lower numbers of owner occupier commitments for new loans;
• First-home buyer activity, which is well below average, and lower levels of full-time job creation.
These factors are likely to impact on the overall housing market performance coming in to this spring.
On the other hand, a number of measures are more positive than the 10-year average, and these are likely to be a positive for the housing market. These measures range from a lower number of new property listings entering the market and other measures such as inflation, which is well below average levels, below average standard variable mortgage rates, higher levels of annual population growth and a greater annual increase in retail trade.
Overall, the data indicates that generally the housing market is now in a stronger position than it was 12 months ago. Considering this, the spring selling season should be stronger this year than it was last year however, in comparison to recent years we would not expect the housing market to power along through spring in the manner that it has previously.
Cameron Kusher is senior research analyst at <a href="https://www,myrp.com.au" target="_blank">RP Data</a>.
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ckusher-ujnxiKuFQs

Spring selling season likely to be stronger this year than last, but don't expect it to power along: Cameron Kusher

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Owners of prime office space in the Sydney CBD should be in a better bargaining position from 2013, according to the latest global real estate report from Jones Lang LaSalle (JLL).
The prime Sydney CBD office market is forecast to transform from one favouring tenants in 2012 to a balanced market in 2013 and 2014, with both capital values and rents expected to rise by as much as 5% over the course of 2012.
This places Sydney in the middle range of performance forecasts for major CBD office markets – alongside London, Paris, Los Angeles, Mumbai and Frankfurt.
In the Asia-Pacific region, Beijing is set to be the strongest-performing prime office market over 2012, with a forecast 20%-plus rise in rental values and ma rise of between 10% and 20% capital growth.
Hong Kong and Singapore rental values are forecast to fall by as much as 20% over 2012.
In its Global Market Perspective Third Quarter 2012, JLL places Sydney in an upward cycle with both rents and capital values rising.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/jllaug15.gif"><img src="/images/stories/2012/08/jllaug15thumb.gif"></a>
The report makes passing reference to Perth, noting that the “commodities sectors continue to support robust rental growth in markets" such as San Francisco and the WA state capital.
Perth is also a market “showing healthy levels of corporate activity”, according to Jones Lang LaSalle.
The report says that economic uncertainty continues to affect investor sentiment across the globe, with deals taking longer to close.
It says the market remaining polarised with investors steering clear of risky assets, focusing instead on prime product in core markets like London, Paris and New York.
According to JLL, Sydney has performed modestly in relation to other prime capital city office markets, recording capital growth of 1.5% over the second quarter of 2012, matching the growth of regional competitors Tokyo and Shanghai, but well behind the top-performing CBD markets of Jakarta and Beijing, where capital values grew by between 9% and 11% over the quarter.
However, Sydney strongly outperformed CBD markets in Europe, which managed capital value growth of just 0.4% over the quarter, following the decline of 0.3% in the first quarter of the year.
Sydney is offering a prime yield of 6.9% and has a relatively high vacancy rate of 8.7%.
Comparative regional markets such as Singapore has a prime yield of 3.6% and a vacancy rate of 10.2%; Tokyo has a prime yield of 3.6% and a vacancy rate of 3.5% while Hong Kong has a prime yield of 3.1% and a vacancy rate of 3.4%.
The report notes that in contrast to many offshore markets, prime yields in Australia have not followed bond yields downwards.
“As a result the yield spread to bond rates is at record levels in most markets, providing a high measure of valuation support should bond yields revert to long term levels,” says Simon Storry, head of office investments Australia for JLL.
“With a global hunt for yield, Australian real estate assets are sharply differentiated on a valuation basis.  In addition, spreads between prime and secondary yields are generally wide, providing an incentive to owners and investors to refurbish and reposition assets,” he says.
Storry says that during the second quarter of 2012 a renewed cycle of financial market volatility saw leasing activity slow in Australia.
“Rents in many office, retail and industrial markets flatlined.
“In the Sydney CBD market, contraction by some financial market tenants was offset by migration into the CBD.
“Across office markets, as in the retail and industrial sectors, a slowdown in demand for space is largely offset by a limited construction pipeline. As a result, vacancy rates remain low and downside risk to rents is limited. In the longer term, continued growth will stimulate another construction cycle.”
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lschlesinger-FZcF9M3vE6

Sydney CBD office landlords to hold more power from 2013: Jones Lang LaSalle

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In the past 12 months our property sector has been defined by the two-speed nature of the Australian economy, and this will continue to present challenges in the year ahead. 
The gap between the mining states of Queensland and Western Australia and the rest is not likely to shrink any time soon. Notwithstanding the disparity between the regions, the growth from the mining and resources sector will continue to stimulate the broader Australian economy, as evidenced by our national unemployment rate of 5.1%. 
Similarly, global economic conditions will continue to fluctuate. A spin-off from this international instability, however, is that Australia’s economic performance is comparatively strong, which should drive continued investment in our property market from overseas. 
Offshore investors have committed about $3.7 billion in Australian property markets in just the past six months, and local investors are also becoming more active, with pension funds looking to increase their allocations to commercial property. 
Investors will remain cautious, with forecasts suggesting the weight of capital chasing quality assets will lead to a further tightening of premium and A-grade yields by as much as 25 basis points in the next six months. The secondary-grade market is expected to continue to experience a softening of yields in the months ahead, as investors’ appetite for risk remains soft and owners place more assets on the market as funding pressures increase. 
Despite this, opportunistic buyers will continue to target underperforming assets in order to reposition and take advantage of the potential future upside. 
Foreign investment from sovereign wealth funds, pension funds and REITS, particularly from Asia, is forecast to remain high as investors chase secure yields of between 6.5% and 7.5% in Sydney, compared with 4% to 6% returns in Hong Kong, Singapore, London or New York. 
For the first half of the new financial year, we expect an increasing battle for core and core plus assets across all asset classes. 
Office markets across the board are performing relatively well, however the current weakness in the finance and insurance sector will continue to impact upon the performance of Sydney’s office leasing markets. As a result, below average absorption levels are expected to continue into the first half of 2013. 
A shot in the arm for the Sydney market is the recent pre-commitment of more than 120,000 square metres of space at the anticipated $6 billion Barangaroo redevelopment to anchor tenants Westpac, KPMG and Lend Lease, with Colliers International integral in these negotiations. This announcement will stimulate activity throughout the Sydney CBD and do wonders for the market. 
In the wider retail sphere, the going is tough. While household spending has been rising, expenditure in the traditional retail sector has been lagging other areas of consumption. 
With continued short-term pressure on the sustainability of occupancy costs, property owners will be focusing on tenancy mix and maintaining occupancy levels in their shopping centres, with growth in specialty rents limited. The stability of retail property, however, remains an attractive proposition for many investors as they look beyond the current challenges being experienced in the broader retail sector. 
The other well-documented concern for the retail sector is the rise of online shopping and, while this presents an ongoing challenge for the sector overall, it also has repercussions for other property sectors, particularly industrial. 
Global growth in container imports has driven logistics activities to the forefront of industrial real estate over the past decade and this will continue in the year ahead. 
In the next 12 months the Australian industrial market is likely to go through a phase of steady improvement, with signs of continuing strong leasing and investor demand for quality industrial space. A lack of available land and built products will continue to impact upon key industrial markets. 
Lending requirements for developers seeking to construct new residential projects will remain constrained, as they have since the global financial crisis, resulting in waning new supply levels declining since 2009. These factors have translated into tight vacancy rates, rising weekly rents for investment stock and stable median prices within Australia’s residential property market. 
However, the Australian residential market continues to perform strongly when compared to major global markets, and we believe persistent demand for residential dwellings will continue unabated due to positive net overseas migration levels and natural increase coupled with declining supply levels.
John Marasco is managing director of investment services at <a target="_blank" href="https://www.colliers.com.au/">Colliers International</a>
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jmarasco-X5TFWvtLxp

Australia's property markets to continue to attract overseas and local interest in 2012-13

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People who allow themselves to be lured by developer incentives into buying new apartments deserve the dud investment they’re getting. 
Quality properties for which there is genuine demand don’t need to offer incentives to buyers. The existence of incentives is a warning sign for buyers to look elsewhere. 
Melbourne’s inner-city unit market is the standout example. For the past 18 months I’ve been urging buyers to steer clear, because the level of new product being built is bordering on the ludicrous. 
Demand for real estate is weak in Melbourne, and the only way developers can stir up sales is to offer inducements or sell product in distant locations like China. Both are happening, and both serve as danger signals for buyers. 
Sadly, Melbourne newspapers have been breathlessly characterising the building frenzy as a boom, highlighting the impressive statistics rather than warning people that the situation has “oversupply” written all over it. 
One journalist notes that 6% of national building approvals are focused on inner-city Melbourne, with over 5,000 new apartments approved in the CBD, Docklands or Southbank in the past year. 
That brings to 21,000 the number of new units in the development pipeline. A metropolitan newspaper journalist who should know better described this as developers “meeting the demand for inner-city living”.  
It’s nothing of the sort. It’s developers allowing greed to over-ride common sense, supported by buyers who conduct research by reading newspaper headlines. 
They are likely to end up with investments with falling values and little demand from tenants. The incentives that inspired them to buy will mean little when that happens.
This is happening at a time when the Melbourne market is weak, the state economy is falling, jobs are being cut by the state government and major businesses, and the state’s grants to first-home buyers have ended.  
Melbourne developers have responded by offering discounted prices, rebates, cars, holidays and furniture to get signatures on contracts. 
The greatest trap in the history of apartment buying, the rental guarantee, is also being rolled out. Anyone who buys an apartment because the developer is “guaranteeing” the rental income has been living in a cave for the past 10 years during which dozens of similar deals have ended in tears for investors. 
One developer, having failed to clear stock by cutting up to $200,000 from individual unit prices, offered a $65,000 car to lure buyers. Another offered a tropical holiday for two. Some have offered rebates of up to $20,000. 
All these measures have one thing in common: desperation. Not even the Gold Coast, where the unit market has been undermined by oversupply for the past five years, has resorted to such largesse. 
The Gold Coast, however, is an object lesson for anyone inclined to ignore the warning signals in Melbourne. The median price for an apartment in Surfers Paradise today is almost 10% lower than it was five years ago. It’s the same in neighbouring Broadbeach, according to data from the Real Estate Institute of Queensland. 
At Hope Island, on the northern fringe of the Gold Coast, the median apartment price has dropped 26.5% in the past five years. 
At Noosa Heads on the Sunshine Coast, a market traditionally favoured by Melbourne investors, the median unit price has dropped 22% in five years. Many other markets around the Sunshine Coast are also in negative territory. 
These sorry results are not the norm in Queensland real estate. Quite the opposite. Many markets have appreciated at least 50% over the past five years. The ones that have gone backwards are the ones where brainless developers have built too much new product. 
Melbourne developers have opted to ignore those lessons. Perhaps they think they can defy the laws of supply and demand. They will experience the same disappointments as developers and builders who went broke in Queensland. 
Sadly, mum and dad investors will sink with them.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
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terryryder-YECXbqmri2

If you buy a unit because of a developer's incentive, you deserve your dud investment: Terry Ryder

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Tregear, in Sydney’s outer west, is the city’s suburb with the highest gross yield for houses at 7.1%.
Property Observer has listed the top 15 suburbs with the highest rental yields for houses in Sydney.
The list is dominated by western suburbs, and most have median prices in the $200,000s.
<a href="/news">Middleton Grange</a> had the highest median price at $407,400, with a rental yield of 6.3%.
With the highest yield, Tregear also had the lowest median price at $220,000.
<a href="/news">Blackett </a>had the second highest yields, followed by <a href="/news">Willmot </a>and <a href="/news">Lethbridge Park</a>.
According to the 2011 census, <a href="/news">Tregear </a>had a population of 3,916 and had 1,341 residences.
Managing director of Ben Price Estate Agents Ben Price says the area is made up of former housing commission properties.
“There were originally 12,000 Department of Housing homes in the area, clumped in one spot. Now more that 50% of those have been sold off. Existing tenants were offered the homes to buy and some have been sold on the private market,” Price says.
“That happened over the last couple of decades.”
RP Data lists the median price for the suburb at $220,000, but Price says that figure is probably a bit low.
“There’s not really much for $220,000. You might find something that needs a bit of work. Then you might have to spend $20,000 to get it up to a rentable condition. For that you’d get in the low $300s per week.”
Price recently sold a property on Aurora Drive to an investor for $285,000. The four-bedroom cladded home is leased at $350 a week.
He says it’s an attractive area for investors, with 50/50 divide between investors and home buyers.
“There’s not much development here. We run a vacancy rate of less than 1%. I think the returns will be there for a long time to come.”
<table width="299" cellspacing="0" cellpadding="0" border="0" align="left"><tbody>
<tr>
<td width="121" valign="bottom" nowrap>
Suburb
</td>
<td width="111" valign="bottom" nowrap>
Median Price ($)
</td>
<td width="67" valign="bottom" nowrap>
Yield (%)
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Tregear
</td>
<td width="111" valign="bottom" nowrap>
220,000
</td>
<td width="67" valign="bottom" nowrap>
7.1
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Blackett
</td>
<td width="111" valign="bottom" nowrap>
229,000
</td>
<td width="67" valign="bottom" nowrap>
7
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Willmot
</td>
<td width="111" valign="bottom" nowrap>
225,000
</td>
<td width="67" valign="bottom" nowrap>
6.9
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Lethbridge Park
</td>
<td width="111" valign="bottom" nowrap>
227,000
</td>
<td width="67" valign="bottom" nowrap>
6.9
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Whalan
</td>
<td width="111" valign="bottom" nowrap>
245,750
</td>
<td width="67" valign="bottom" nowrap>
6.8
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Emerton
</td>
<td width="111" valign="bottom" nowrap>
250,000
</td>
<td width="67" valign="bottom" nowrap>
6.7
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Shalvey
</td>
<td width="111" valign="bottom" nowrap>
260,000
</td>
<td width="67" valign="bottom" nowrap>
6.4
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Bidwill
</td>
<td width="111" valign="bottom" nowrap>
265,000
</td>
<td width="67" valign="bottom" nowrap>
6.3
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Middleton Grange
</td>
<td width="111" valign="bottom" nowrap>
407,400
</td>
<td width="67" valign="bottom" nowrap>
6.3
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Hebersham
</td>
<td width="111" valign="bottom" nowrap>
279,000
</td>
<td width="67" valign="bottom" nowrap>
6.2
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Dharruk
</td>
<td width="111" valign="bottom" nowrap>
285,000
</td>
<td width="67" valign="bottom" nowrap>
6.2
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Miller
</td>
<td width="111" valign="bottom" nowrap>
312,500
</td>
<td width="67" valign="bottom" nowrap>
6.2
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Spring Farm
</td>
<td width="111" valign="bottom" nowrap>
375,000
</td>
<td width="67" valign="bottom" nowrap>
6.2
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
North St Marys
</td>
<td width="111" valign="bottom" nowrap>
282,500
</td>
<td width="67" valign="bottom" nowrap>
6.1
</td>
</tr>
<tr>
<td width="121" valign="bottom" nowrap>
Cartwright
</td>
<td width="111" valign="bottom" nowrap>
305,000
</td>
<td width="67" valign="bottom" nowrap>
5.9
</td>
</tr>
</tbody></table>
</body></html>

awalsh-7Ub9EypybQ

Outer-western suburb of Tregear leads Sydney suburbs for house rental yields

<html><body>
The number of properties on the market in Western Australia has fallen over the June quarter, with could put price pressure on property there, according to the Real Estate Institute of Western Australia.
Sales numbers have increased, but new stock is not coming onto the market quickly.
“The volatility has gone, buyers are more confident and prices are stable. But if we don’t see the sold stock being replaced with new listings it may put price pressure on the limited stock that remains or increase demands on the building industry,” says REIWA’s David Airey.
Turnover for the months of April, May and June is up by 25% from the same period in 2011, with a projected 11,700 sales taking place in the quarter. In the March quarter it was at 11,600. The number of properties on the market dropped to 12,150 at the end of June and currently sits at around 11,000.
“This is well below the 14,300 properties we had on the market in March and sits below the equilibrium of around 12,000 listings, suggesting the market is swinging back to favour sellers,” Airey says.
The south-eastern Perth suburb of Canning Vale near Jandakot airport had the most sales for the quarter at 512. The median price increased 0.1% over the quarter to an annual median of $530,000.
He says the metropolitan Perth median house price is holding steady at $475,000. The figure is unchanged over the quarter and down 1% over the year. The median Perth unit price is at $324,500 down 3.1% from the March quarter and down 7.9% over the year.
House and unit sales in Perth are up around 5% for the quarter but Airey says this has been moderated by softer regional activity during this period, with house sales down an estimated 12% and the small multiresidential market down by 15%.
“In annual terms, house sales in Perth are up by 15% in 2011-12 when compared to 2010-11, but still remain some 15% below the 15 year average. Similarly, multi-residential sales are up 5% for the year but still 30% below the long term average due to weak investor activity.”
The number of sellers dropping their asking prices to get a sale has fallen by 13 percentage points on June last year, with 61% of sellers prepared to discount. The average reduction is 6.3%.
The time on market has also dropped by almost a week to an average of 73 days on market.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
JUNE   Qtr 2012 (p)
</td>
<td width="85" valign="top">
MARCH Qtr 
2012
</td>
<td width="94" valign="top">
% Change
3 months
</td>
<td width="85" valign="top">
% Change
12 months
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Median House Price
</td>
<td width="85" valign="top">
$475,000
</td>
<td width="85" valign="top">
$475,000
</td>
<td width="94" valign="top">
n.c.
</td>
<td width="85" valign="top">
-1.0%
</td>
</tr>
<tr>
<td width="168" valign="top">
Regional WA Median House Price
</td>
<td width="85" valign="top">
$360,000
</td>
<td width="85" valign="top">
$375,000
</td>
<td width="94" valign="top">
-4.0%.
</td>
<td width="85" valign="top">
-4.0%
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Median Unit Price
</td>
<td width="85" valign="top">
$402,500
</td>
<td width="85" valign="top">
$407,250
</td>
<td width="94" valign="top">
-1.2%
</td>
<td width="85" valign="top">
-1.6%
</td>
</tr>
<tr>
<td width="168" valign="top">
Regional WA Median Unit Price
</td>
<td width="85" valign="top">
$324,500
</td>
<td width="85" valign="top">
$335,000
</td>
<td width="94" valign="top">
-3.1%
</td>
<td width="85" valign="top">
-7.9%
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Median Land Price ***
</td>
<td width="85" valign="top">
$250,000
</td>
<td width="85" valign="top">
$245,000
</td>
<td width="94" valign="top">
+2.0%
</td>
<td width="85" valign="top">
+6.4%
</td>
</tr>
<tr>
<td width="168" valign="top">
Regional WA Median Land Price
</td>
<td width="85" valign="top">
$168,000
</td>
<td width="85" valign="top">
$165,000
</td>
<td width="94" valign="top">
+1.8%
</td>
<td width="85" valign="top">
-4.0%
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Total Dwelling Sales - WA
</td>
<td width="85" valign="top">
11,700
</td>
<td width="85" valign="top">
11,600
</td>
<td width="94" valign="top">
+1%
</td>
<td width="85" valign="top">
+25%
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Stock of Listings - Perth
</td>
<td width="85" valign="top">
12,150
</td>
<td width="85" valign="top">
14,300
</td>
<td width="94" valign="top">
-15%
</td>
<td width="85" valign="top">
-30%
</td>
</tr>
<tr>
<td width="168" valign="top">
Average Selling Days – Perth
</td>
<td width="85" valign="top">
73 days
</td>
<td width="85" valign="top">
79 days
</td>
<td width="94" valign="top">
-6 days
</td>
<td width="85" valign="top">
-6 days
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Seller Sentiment 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Vendors Reducing Price
</td>
<td width="85" valign="top">
61%
</td>
<td width="85" valign="top">
65%
</td>
<td width="94" valign="top">
-4% pts
</td>
<td width="85" valign="top">
-13%pts
</td>
</tr>
<tr>
<td width="168" valign="top">
Listing &amp; Selling Price Variance
</td>
<td width="85" valign="top">
-6.3%
</td>
<td width="85" valign="top">
-6.4%
</td>
<td width="94" valign="top">
-0.1% pts
</td>
<td width="85" valign="top">
-1.2% pts
</td>
</tr>
<tr>
<td width="168" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
<td width="94" valign="top">
 
</td>
<td width="85" valign="top">
 
</td>
</tr>
<tr>
<td width="168" valign="top">
Perth Rental Vacancy Rate
</td>
<td width="85" valign="top">
1.9%
</td>
<td width="85" valign="top">
1.8%
</td>
<td width="94" valign="top">
+0.1% pts
</td>
<td width="85" valign="top">
-1.5% pts
</td>
</tr>
<tr>
<td width="168" valign="top">
Median Weekly Rent
</td>
<td width="85" valign="top">
$430
</td>
<td width="85" valign="top">
$420
</td>
<td width="94" valign="top">
2.4%
</td>
<td width="85" valign="top">
+13.2%.
</td>
</tr>
</tbody></table>
 
In the Perth rental market the vacancy rate is below average at 1.9%. The median rent has grown by a $10 to $430 per week, an increase of just over 13% from 12 months ago.
The median rent is $440 per week for houses and $410 per week for units and apartments.
Median land prices are up $5,000 for the quarter to $250,000.
“Our preliminary data is showing a 25% lift in land sales, suggesting that prospective home builders are getting ready for their new home,” Airey says.
“Suburbs such as Baldivis, Butler and Byford on the outer edges of the metropolitan area saw the greatest number of land sales in the year to June quarter.”
</body></html>

Falling residential stock on market could push up dwelling prices in Western Australia: REIWA

<html><body>
Should I launch my own department store?
<div>
Are department stores dying? I’m thinking of setting up one – on a more boutique, and smaller, scale than Myer or DJs, of course.
Department stores – a retail institution that dates at least as far back as the mid-1800s – have been trying to reinvent themselves for years, with mixed results.
They followed shoppers from the city to suburban shopping centres – upsizing and downsizing as they went.
They are facing considerable disadvantages. There is a fine line between offering a broad assortment of products and being cluttered.
I don't think department stores serve as a good showroom. There's so much stuff in there and not enough editing to make shopping simple.
Not only do department stores sell a lot of merchandise, but they often sell the same kinds of merchandise – which makes it hard to stand out.
For the past 20 years the department store has been shrinking as a percentage of retail sales. Maybe Asia holds the answer.
Many department stores in Asia are organised by brand, and include "mini-stores" within a larger space. In China, Korea and Japan, department stores lease out space to brands in the store and act more like landlords. The brands put the labour on the floor.
In the days before the internet, department stores used to be the primary discovery place for consumers on the hunt for a new appliance or a new wardrobe.
Today mobile is everything. The killer app is mobile. People used to go to stores for information and research. Today all the information is already in their hands.
I personally believe that the shopping centre is the new department store with the individual stores acting as departments.
There is a place for department stores but reinvention is a necessity: Utilising all the channels favoured by customers without forgetting the oh-so-wished-for well-trained staff – and enough of them!
Debra Templar is one of Australia’s leading retail enthusiasts, keynote speakers and business coaches. She is a regular contributor to StartUp Smart Daily and Greenworld.
This article originally appeared on <a href="https://www.startupsmart.com.au/" target="_blank">StartupSmart</a>.
</div>
</body></html>

dtemplar-59GRsk2iuo

Should you launch a department store in this retail climate?

<html><body>
The Property Council of Australia has called on the government to better explain proposals to reduce property depreciation allowances used by property investors to reduce their tax bills.
A discussion paper prepared by the Treasury’s Business Tax Working Group (BTWG) recommends a minor reduction in the corporate tax rate paid for by eliminating or scaling back interest deductions under thin capitalisation rules and amortisation deductions.
A thinly capitalised entity is one whose assets are funded by a high level of debt and relatively little equity – as would be the case with the portfolios of many property investors.
The Australian Taxation Office (ATO) currently allows property investors to claim a tax deduction for depreciation of their investments- the general wear and tear that occurs over time.
Peter Verwer, chief executive of the Property Council, says the government discussion paper “is short on hard evidence and analysis.”
“The Business Tax Working Group proposal for changes to thin capitalisation needs to be backed up immediately with a proper briefing to industry, as the paper raises more questions than it answers,” he says.
“While the Property Council believes there is value in exploring options for modernising Australia’s business tax framework, it cannot support any changes that force taxpayers to breach existing contracts and covenants or renegotiate financial arrangements.”
The Property Council previously opposed the doubling of the withholding tax from 7.5% to 15% charged on foreign investors who invest into management investment schemes
Verwer says Australia’s capacity to invest in new capital stock has already been weakened by changes to withholding tax rates.
As a result he says it is critical there are no “competitiveness externalities” arising from a trade-off between “rational tax incentives and a lower headline rate of corporate tax”.
Verwer also wants the Treasury’s modelling of the proposed tax changes to be made available to third parties for independent review.
“In addition, far more work needs to be done on proposed changes to depreciation allowances,” Mr Verwer says.
“Building structures wear out in generating income. It is critical that capital allowance deductions directly reflect the economic life of assets.”
“The BTWG discussion paper offers no persuasive arguments that depreciation changes in the UK and NZ have improved the economic competitiveness of those countries.”
“The Property Council is keen to discuss practical options with the Business Tax Working Group.”
</body></html>

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