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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The Victorian Planning Minister, Matthew Guy, recently announced an urban expansion for Melbourne: 5,958 hectares of new suburbs and transport corridors. But he didn’t mention the implicit costs of changing land use; in particular, he didn’t discuss where Melbourne will get its fresh food.

This is a concern if the government assumes that population growth can be accommodated as it has in the past, by developers speculating on adjacent farm land to create new low-density “affordable” suburban housing estates, dependent on cars for access to services. Often, this process ignores the forest for the trees – loss of fresh food production from the peri-urban region in a death by a thousand cuts.

Indeed, as <a target="_blank" href="https://www.ecoinnovationlab.com/reportssubmissions/144-inquiry-into-agribusiness-in-outer-suburban-melbourne">Larsen</a> suggests in citing Simms: Nothing reveals the thin veneer of civilisation like a threat to its food or fuel supply, or the cracks in society like a major climate-related disaster. A cocktail of all three will give cold sweats to the most hardened emergency planner.

Planning for food is not <a target="_blank" href="https://www.heartfoundation.org.au/SiteCollectionDocuments/Food-sensitive-planning-urban-design-full-report.pdf">explicitly included in</a> the Victorian Planning and Environment Act (1987) or the new State Planning Policy Framework (introduced on 21 September 2010, Amendment VC 71).

One of the areas most affected by a shift from agriculture to housing will be the <a target="_blank" href="https://www.casey.vic.gov.au/">City of Casey</a>. Councillor Amanda Stapledon from Casey Council recently said the Bunyip food belt (an <a target="_blank" href="https://www.daff.gov.au/agriculture-food/food/national-food-plan/submissions-received/bunyip-food-belt">area in the southeast of Melbourne</a> that stretches across four municipalities), must be protected from housing developments. This area supports 2,000 local jobs and generates in the vicinity of $400 million of food production.

According to the Casey Weekly, in 2007, 7% of Casey Shire residents – about 16,000 households – were “food insecure”, defined as not having access to enough food for an active, healthy life. This figure is above the state average of 6%. A <a target="_blank" href="https://apo.org.au/research/unsettling-suburbia-new-landscape-oil-and-mortgage-vulnerability-australian-cities">VAMPIRE</a> (vulnerability assessment for mortgage, petroleum and inflation risks and expenses) index shows a significant number of working families in Casey are at high risk of experiencing the health impacts of chronic food insecurity over the next decade.

The process of “consultation” for this State Planning Policy Framework rode roughshod over food-producing councils like Casey: <a target="_blank" href="https://www.dpcd.vic.gov.au/planning/plansandpolicies/planningformelbourne/planninghistory/deliveringmelbournesnewestsustainablecommunities">Delivering Melbourne’s Newest Sustainable Communities</a> does not consider the issue of food security for Melbourne nor the loss of gross agriculture industry <a target="_blank" href="https://www.casey.vic.gov.au/doclib/document20Jul2009-160515.pdf?saveAs=Minutes_of_Special_Council_Meeting_-_14_July_2009_v20Jul09.pdf">worth approximately</a> $20-30 million per year and 550 direct jobs in Casey. So, does this announcement mean that Melbourne residents are at increased risk of going hungry or paying more for fresh food?

Short answer – no.

In stark contrast to <a target="_blank" href="https://theconversation.edu.au/paving-our-market-gardens-choosing-suburbs-over-food-4419">Sydney’s situation</a>, I suggest there are two main reasons why Melbourne is much better placed for coping with the sometimes unintended consequences of urban expansion.

First, the Victorian government has opened its ears to considerations of food security.<a target="_blank" href="https://www.vichealth.vic.gov.au/">VicHealth</a> has championed fresh food production and access in the outer urban areas as a high priority in planning. Some 80% of the 79 councils in Victoria have municipal public health plans as prescribed under the Public Health and Wellbeing Act 2008 (which superseded the Health Act 1958). Fresh food is regarded as an integral pillar of such local government plans for community health and well-being.

VicHealth and Deakin University have also set up the <a target="_blank" href="https://www.foodalliance.org.au/">Food Alliance</a>, an organisation that investigates and makes evidence-based recommendations to government on the food system for Victorians.

The Victorian Liberal-Nationals coalition created a policy portfolio under the Minister for Agriculture and Food Security. There is, therefore, the purposeful addition of food production to the planning considerations of councils in Melbourne and the state government. This situation makes for a more sophisticated, systemic analysis and practice of planning urban expansion in response to population growth, beyond the immediate, ultimately flawed, economic framework.

Second, the planning process has responded to these concerns. In 2010, the Victorian Parliament expanded planning beyond considering just the economic framework when it went through an Outer Suburban/Interface Services and Development Committee and Inquiry and settled on the principles for setting Melbourne’s urban growth boundary. The outcomes of the inquiry are reflected in the minster’s <a target="_blank" href="https://theage.domain.com.au/real-estate-news/drawing-the-line-around-our-city-20120614-20ccq">recent announcement</a> of land to be released for housing in the “interface municipalities” of Cardinia, Casey, Hume, Melton, Mornington Peninsula, Nillumbik, Whittlesea, Wyndham and Yarra Ranges.

Planning processes covering a wider range of factors – bio-physical, social and economic – were scrutinised for a specific cartographical/geographical sub-set of the city of Melbourne. The economics of real estate development are not sufficiently sophisticated to deliver optimum outcomes for new communities at a variety of interconnected scales. Including food in the planning equation brings in the need to plan for local jobs, water use, transportation and fuel costs, and social disadvantage such as going hungry or having a poor diet.

The implication is that the Victorian state government has led a planning initiative focusing on two things: the local jobs, personal networks, community values and distribution of fresh food to people in the vicinity of production; and the importance of fresh food supply for all of Melbourne’s residents into the future.

That is, in order to protect the future access for all Melbourne residents to the immediate and cascading benefits of fresh food, planning had to occur at a local, distributed level in order for these benefits to be accomplished. Add to that the realisation that population growth is a key long-term driver more important than short term economic cycles in planning and the Victorian state government is developing a more robust or resilient path to at least minimise hunger and malnutrition and cope with inevitable population growth out to 2050. It’s certainly a path more robust, systemic and sophisticated than the problematic path for Sydney.
Jonathan Sobels is a lecturer in human geography at <a href="https://www.flinders.edu.au/" target="_blank">Flinders University.</a>
This article originally appeared on <a href="https://theconversation.edu.au/" target="_blank">The Conversation.</a>
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Australian capital city new property development at the cost of farm land – death by a thousand cuts: Jonathan Sobels

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 Over the years, we have helped more than 550 residential projects come to fruition throughout Australia.
And part of what we do, in our efforts to ascertain what works and what doesn’t, involves focus group research.
Here’s some of what we’ve found:
Resident feedback from apartment renters and owner-occupiers tells us that the most important features of an apartment complex are as follows:
<ul>
<li>Location</li>
<li>Design aspects</li>
<li>Security</li>
<li>Onsite management</li>
<li>Aspect/views; and</li>
<li>Resident facilities</li>
</ul>
The main dislikes are:
<ul>
<li>Noise-related issues</li>
<li>Substandard quality</li>
<li>Slow or faulty lifts</li>
<li>Parking problems</li>
<li>Lack of storage; and</li>
<li>Poor apartment design</li>
</ul>
In order of preference, the most important apartment inclusions are:
<ul>
<li>Quality ducted air-conditioning</li>
<li>Useable balconies</li>
<li>Car parking</li>
<li>Ample storage; and</li>
<li>Wireless technologies</li>
</ul>
In order of preference, the most important complex inclusions are:
<ul>
<li>Security systems</li>
<li>A mixture of uses and services on site</li>
<li>Minimal waiting time for lifts</li>
<li>Swimming pool; and</li>
<li>Barbecue/communal entertainment area</li>
</ul>
Buyer feedback is what we undertake on behalf of clients with people who have expressed an interest in buying apartments off the plan.  Often the most valuable feedback relating to the sales and marketing of a new project is gained from people who did not end up buying.
Here are some of our findings:
Brochures are often too generic – “Could have been advertising any new apartment project” is a common complaint.
Most brochures fail to show the exact location of the proposed new apartment tower and how it relates to the local area.
The lack of pricing information is very frustrating – most people want as much relevant information (pricing, floor plans, body corporate fees, etc.) up front so they know if the project is worth looking at.
People hate receiving pricing advice that turns out to be misleading.
Previous buyers expect to receive special offers and do not want to have to prove their bona fides all over again.
Illustrations of apartment interiors, colour schemes and display furniture often do not appeal to the (older) target market.
Kitchens and bathrooms seem often to be designed by men, not women.
Many buyers thought the cost of additional storage space was excessive. Some noted they could purchase over-car storage cages themselves much cheaper; others thought they shouldn’t have to pay for storage anyway, seeing it is such a basic design requirement.
Developers generally don’t stress their track record highly enough.
Many potential buyers object to the pressure they feel they are put under by sales staff, particularly at the official launch of a project.
So, our question to you is, what have we missed?  Is there something on your list of likes or dislikes that would compel you to buy or rent in one project over another?  Is there something in the sales process that you have found really helpful, or really sticks in your craw?
Don’t hesitate to let loose.  <a target="_blank" href="https://www.surveymonkey.com/s/ResidentAndBuyer">Click here to give us your responses</a> – and then stay tuned for a follow-up – we’ll let you know when.
And at the risk of overload – but we don’t do this very often – here’s a final call for our regular Matusik Pulse poll.
This week’s poll asks what it would take to get you to seriously consider a new dwelling investment.  Don’t hesitate – it only takes a few seconds to <a target="_blank" href="https://www.surveymonkey.com/s/ConsiderInvestment">click through and give us your response.</a>
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Readers can follow <a target="_blank" href="https://www.matusikmissive.wordpress.com">Michael's blog</a> or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> – five tweets a day, some of which are on the property market.
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michaelmatusik-49YzLvdmNv

What off-the-plan apartment buyers want – and what they don't

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In 1999, when the Australian pay-TV industry was less than four years old, Foxtel CEO Tom Mockridge made a prediction: a big, bold and?—?as it turned out?—?wildly incorrect prediction. Within 10 years, he said, pay-TV would be installed in three-quarters of Australian homes.
Yet by 2009 only 29% of Australian homes had pay-TV.
Today, according to stockbroking firm CCZ Statton Equities, it’s currently at 28%?—?one of the lowest rates in the developed world.
Mockbridge’s over-optimism hasn’t stopped Richard Freudenstein, who replaced Kim Williams as CEO last year, from publicising his own lofty goals for the industry. In March, he announced an ambition to lift the take-up of pay-TV to 50% (though he didn’t apply a deadline to the target).
None of the media analysts contacted by Crikey for this story believe this will happen?—?ever. They say despite News Limited’s bid to lift its stake in Foxtel from 25 to 50%, the take-up of traditional pay-TV has already peaked?—?and will soon start to decline.
“There is no indication whatsoever that pay-TV in its current form will grow to 50%,” said veteran telecommunications consultant Paul Budde. “No way.”
Even securing AFL broadcasting rights last year, at a cost of $530 million, hasn’t boosted customer numbers significantly, Foxtel sources told The Australian Financial Review last month. There’s also no sign the Olympics?—?to air on Foxtel over eight channels later this month?—?has led to a spike either.
“They want to paint a picture of a beautiful blue sky: we’re thundering along, people are joining us, we’re growing,” said media analyst Steve Allen. “But that’s marketing and spin. At the pricing model they have now they’re not likely to get much growth.”
Cost, Allen says, is the major reason why the Australian pay-TV penetration rate dwindles behind the US (90%) or UK (60%). Signing up to pay-TV here costs far more than the US or most of Europe.
Other factors have applied a handbrake on growth, according to Citi analyst Justin Diddams. Pay-TV, he says, has had the best take-up in countries where providers bundle it together with other telephony services such as broadband or mobile phone deals. In the UK, for example, BSkyB has given away free broadband to lift subscriber numbers. In Australia this hasn’t been possible because Telstra?—?which owns 50% of Foxtel?—?won’t allow the pay-TV provider to sell broadband connections.
Our tough anti-siphoning laws also haven’t helped either. Nor has the arrival of Freeview, which allows people to watch for free the type of content they used to have to pay for.
None of this bad news, it’s important to point out, has stopped Foxtel from making serious dough. Although relatively few Aussies are prepared to fork out for pay-TV, those who do are willing to pay a lot. Last year, the company increased full-year earnings by 15.5%, despite subscriber numbers only rising by around 18,000.
This business model, however, is on its last legs thanks to the arrival of Internet Protocol Television (IPTV)?—?a technology that streams TV and video services via the internet direct to computer, television set or game console. The industry is still in a nascent stage, but is expected to grow rapidly in the next decade with the proliferation of high-speed broadband.
“The traditional model of pay-TV is on the way out,” said Paul Budde. “People will always be interested in good content?—?movies and sport?—?but the format in which it’s currently delivered is a dying concept.”
Roger Colman, head of media at CCZ Statton Equities, agrees. According to his firm’s projections, next year will be the last year of subscriber growth for traditional subscription television. By 2017, he expects around a fifth of households to have satellite or cable pay-TV while IPTV will be approaching 50% penetration.
Chris Coughlan, research director at technology analyst firm Telsyte, says the growth of IPTV represents both an ”opportunity and a threat” for Foxtel.
The opportunity: many more customers. The threat: many more competitors?—?including Fetch TV, Apple TV, Netflix and, ironically, Telstra, which is taking on Foxtel with T-Box, which offers movies on demand and live sport.
“It’ll be a fine balancing act to package up the IPTV channels so they don’t cannibalise the existing plantium users?—?those who get all the services, not just bits and pieces,” said Coughlan. “They’ll have to be very clever.”
Steve Allen reckons Foxtel will have much lower profit margins in five years time. It will also have to spend big on original programming to maintain viewers (an outcome that would be a boon for the Australian entertainment industry).
Roger Colman is far more optimistic than his counterparts. Foxtel, he asserts confidently, will make more money in the IPTV era than it does now. ”It’s a simple equation,” he said. “There are no real competitors of any import.”
Foxtel, Colman says, is expanding into IPTV far more aggressively than it’s making out and is already stiching up deals with major Hollywood studios for Australian IPTV rights.
Despite the widespread assumption that the internet leads to fragmentation, Colman says real-world experience shows that it also leads to monopolies. In the US, Amazon has around 80% of the online book market, Netflix owns 90% of the online DVD market, while iTunes has around 90% of digital music sales.
He expects Foxtel will achieve the same market dominance in Australia for IPTV and is telling his clients to bank on it.
Crikey approached Foxtel CEO Richard Freudenstein for comment but he was unavailable.
This article originally appeared on <a target="_blank" href="https://www.crikey.com.au/">Crikey</a>.
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Why less than a third of Australians have pay-TV in their homes

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BIS Shrapnel has just released its Residential Property Prospects, 2012 to 2015 and states that:
“Sydney is forecast to record a 17% increase in median house prices over the next three years, compared to 9% for Adelaide, 5% for Hobart, 3% for Melbourne, and just 1% for Canberra.”
Whether there growth forecasts are correct or not, it is clear that Sydney will be the focal point for price growth (driven by demand) over the near term.
So apart from organic population growth and migration, what will support growth in Sydney property prices? Investors!
Investors are slowly turning their attention back to the property market as they consider their future returns from current investments. For many, property is slowly starting to make its way back onto the radar and into their minds. Investors naturally want to preserve and grow wealth, so what will turn them back to investing in property? Oddly enough, confidence! This is what is drawing their attention back to property - the opposite of course is true - currently for home buyers.
So why is there growing confidence in property? The lack of confidence in the stock market due to volatility supported by uncertainty and the headwinds from Europe, China's slowing economy, falling interest rates locally however, property is showing good and strengthening rent returns (in the numbers not the hyperbole) as well as offering the bonus of some capital growth in the asset class proving to be the least volaitile and therefore is looking interesting again.
We have noticed this interest from investors in our business,  and while it is not overwhelming and we don't expect “weight” to return to the market or that investors returning will drive up values greatly, savvy investors are certainly looking at select residential and commercial investment again and getting strong returns with bonus growth.  On the western corridor of Sydney’s CBD fringe for example, we recently purchased an off-market property for under $19 million with a net yield of 7.4%,  and in the residential sector, a house in Clovelly (at a discount to market) delivering a 5% yield, which will provide growth of between 3-4% minimum, providing total returns of circa 9%.
Investors are starting to look at property (according to our private bank and HNW affiliates) as term deposits for example start to mature and interest rates tail off, income returns for property are looking attractive again – with the bonus of some capital growth, investors are targeting minimum total returns of between 7-9% pa. Even with the heady days or property doubling in value every seven to 10 years (probably behind us for some time), property has always kept pace with CPI historically, so with an average of about 3.2% p.a. over the long term and face yields of circa 5.5% on units for example, the returns, while not sexy, are safe, less volatile and makes gearing look attractive again in the current interest rate environment.
The trick as always will be knowing what to buy and where –  factoring in all the variables including on costs, anticipating future ownership/rental demand, finding assets that complement an individual’s investment style and strategy as well as managing the downside risk – or, if you want to sell within three years of ownership, is the asset that has been purchased likely to get you the purchase price + costs back and if it was, how would you know?
It's probably worth getting some independent property advice (from a buyers' agent) in addition to any financial advice you may want to get.
Stuart Jones is business development director of Sydney-based buyers' agency <a target="_blank" href="https://www.roseandjones.com.au/">Rose and Jones</a>
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Investors returning to Sydney property market

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Commercial property investors are likely to shift their focus away from retail property and focus on better-performing office and industrial assets, according to a new report by BIS Shrapnel
In its latest forecasts for retail property to 2022, BIS Shrapnel expects only modest retail turnover growth over the next decade principally due to the rise of online shopping and an oversupply of new retail floor space.
According to BIS Shrapnel, the growth of online spending overseas helps explain why consumer spending in total (including overseas online spending) is growing at a solid pace but retail turnover growth is subdued.
Click to enlarge
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Australians are also travelling overseas more and spending their retail dollars abroad.
Both of these factors are likely to continue to be a drain on retail turnover growth as long as the Australian dollar stays high, says BIS Shrapnel, which declares that the golden age of retailing has come and gone and won’t be returning.
It is forecasting annual retail growth of 2.9% per annum over the next five years compared with the “halcyon era” of retailing from the mid-1990s to GFC, when it averaged close to 5% per annum due to a “debt-fuelled spending surge by consumers”.
The most recent data from the ABS shows that retail turnover rose just 0.5% in May, and is trending up 3.3% on an annual basis.
“Without firming yields to save the day, modest income growth won’t be enough to generate the strong investment returns that investors have become used to,” says report author Maria Lee.
She says prospective returns for regional shopping centres are between 9% and 10% over a five-year and 10-year investment horizon.
“This is OK, but not impressive.
“Some investors are likely to turn their attention to stronger-performing office and industrial property instead,” she says.
Figures compiled by Colliers International for the first half of 2012 show that foreign capital flows into the Australian retail sector made up just 4% of offshore acquisitions (out of a total of $4.06 billion), with the transaction of three assets valued at around $184 million.
However, local investors appear to be more keen, with the <a href="https://www.propertyobserver.com.au/retail/perron-group-to-acquire-half-stake-in-three-centro-centres-for-%24690-million-setting-post-gfc-commercial-retail-record/2012051754740">privately owned Perron Group paying a post-GFC record of $690.4 million</a> to acquire a 50% share in a portfolio of three Centro flagship regional shopping centres –the Colonnades in South Australia, The Glen in Victoria and the Galleria in Western Australia – in a deal brokered by Simon Rooney, Australian head of retail investments at Jones Lang LaSalle.
Shopping centres in particular are likely to lose their investment sparkle according to BIS Shrapnel due to lower rates of turnover growth thanks largely to the growth of online shopping and the “dilutionary effect of additional retail floor space”.
According to BIS Shrapnel, the construction of new retail floor space continues to outpace both population growth and real retail turnover growth, a long-term trend in Australia, broken only during the late 1990s/early 2000s period of unusually strong turnover growth.
“It’s surprising that this is happening now, when floor space growth is relatively muted due to the challenges facing development in the post-GFC environment,” says Lee. “It means that, in real terms, turnover per square metre is falling.”
Instead, Lee says, some investors are likely to turn their attention to stronger-performing office and industrial property instead.
According to BIS Shrapnel, online retailing has a two-pronged impact - the obvious effect of taking market share from ‘traditional’ retailing, but another effect that could be equally important.
“Consumers are using price comparison websites or apps on their mobile phones when in-store, and then demanding a price match in order for them to buy there and then,” says Lee. “This can have an impact on retailer profit margins.”
She also points out Australians are purchasing more online from overseas retailers.
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Retail property to provide only modest returns to investors by 2022: BIS Shrapnel

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More than 90% of property vendors across Australia will engage a real estate agent to represent them in the sale of their property. On the contrary, less than 10% of buyers will engage a buyers' agent to represent them in purchasing a property. Personally, that equation has never stacked up to me or made sense. If the large majority of vendors require help in the sale of their property, you would naturally think that buyers would require the same expert representation when looking to purchase.
As it has never been common practice to engage a buyers' agent in Australia, buyers have been led to believe they are now experts and completely competent when buying property. Much like the financial markets, it is common practice to engage a broker for their expertise to buy in and sell out – this principle is now beginning to develop at a more rapid rate in the property game.
With any professional service where you are not experienced, you engage a specialist expert for their advice and representation. I have always been intrigued why inexperienced property buyers do not believe they require an agent to represent them when looking to buy property. It's fascinating how people who have never bought property before or who have bought only a few times are confident in their ability to execute in searching/buying property. It's absolutely amazing. In my experience, even property buyers who are qualified solicitors who do not specialise in conveyancing, will engage a conveyancing lawyer to review their contract of sale. In most cases buying a property is a person(s) biggest financial investment and ongoing mortgage commitment of their life. So what makes inexperienced property buyers experts when looking to buy?
Unfortunately buyers forget that real estate agents work for the vendor and they are committed to getting their vendor the highest price so they will do whatever it takes to play the buyer. Welcome to the art of sales.
Buyers also underestimate the real estate agents ability to negotiate and seem to value their own negotiation skill with more credit – the reality is that real estate agents negotiate on property daily so the probability to get the buyer to pay more then required is very high. Also, buyers don't seem to have any idea with the amount of transactions that take place off market (property not advertised) that  to rely on property that is advertised in the paper and online, especially in this market, is completely limiting your ability to source property.
Understanding property values is another interesting part of the process that buyers believe they can grasp all of a sudden – if the property next door sold for X or the apartment downstairs in the building sold for Y, buyers then believe they are expert valuers. If only it were that easy.
Similarly, like any profession, it takes hours and hours to master your craft with continuous improvement, which is why you engage an expert in an area out of your depth for specialist assistance. Malcolm Gladwell, the author of Outliers, repeatedly mentions the "10,000-Hour Rule", claiming that the key to success in any field is, to a large extent, a matter of practicing a specific task for a total of around 10,000 hours.
If you are not purchasing properties consistently, negotiating price with agents daily, inspecting on/off properties daily, then possibly you should consider seeking professional advice when buying property.
Ben Handler is a Sydney-based entrepreneur. Ben is the co-founder and director of <a target="_blank" href="https://www.chbuyersagents.com.au/">CohenHandler</a> - an exclusive buyers agency in Double Bay, Sydney. CohenHandler is one of Sydney's leading buyers' agencies since inception only two years ago. Ben is a buyer specialist in the eastern suburbs, being involved in residential transactions up to $15 million.
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Buying a home does not make you a property buying expert

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With some 75% of all mooted new stock sold, Sydney’s CBD and surrounding apartment market could exhaust its supply of new apartments in less than a year, according to research by Colliers International.
Owner-occupiers and investors seeking a newly built apartment have the choice of 14 residential projects within the Sydney CBD and surrounding suburbs.
With only one new building being released to the market over the past six months, the 14 buildings are set to provide an additional 2,186 apartments.
Colliers International recently reported that during the past six months about 400 new apartments were sold.
The sales included solid demand for the apartments in The Quay on Quay Street in Haymarket, with 200 of the 270 units sold in quick time.
Despite supply levels expanding considerably in the southern precinct of Sydney’s CBD, Colliers noted 69% of the first two stages of Central Park projects One Central Park and Park Lane project have been sold.
Colliers sees the conversion of strategically located office blocks into apartments as crucial for the CBD advancement.
Ariel Pollard, Colliers International director of research, has studied 22 projects in Sydney and surrounding suburbs, equating to around 4,776 apartments in various stages of the planning system or under development.
Her report shows in past six months since late 2011 about 400 new apartments were sold.
And based on that sales rate the remaining 540 apartments on the market would be sold by mid- 2013, Pollard concluded.
The Hyde by Stockland in the southern precinct is one project that recently completely sold out.
Pollard says the strength of the Sydney CBD and surrounding apartment market is set to continue due to limited supply options and falling interest rates.
Lower interest rates are seen as assisting purchasers – whether they are first-home buyers, upgraders or investors – with achieving entry into the market.
“The time lag associated with site acquisition, approval and construction is considerable, particularly within Sydney due to the numerous impediments associated with the current planning system,” she says.
“This in turn restricts supply levels and leaves the potential purchaser with limited choice.
“An increased population base, smaller household formation rates and limited supply options will ensure long-term capital gain for the astute buyer,” Pollard says.
Buyer demand for apartments priced below $1.5 million across inner Sydney has been described by Colliers International as robust.
Over 2011 a total of 908 apartments – new and established – were sold in inner Sydney, which represented a minor 3% decline on 2010 volumes.
Some 90% of all apartments in the inner-Sydney precinct sold during the 2011 December quarter were under $1.5 million.
Median apartment sales within the inner city ranged from $433,250 in the mid-precinct to $1.1 million in the northern end of the CBD.
Eastern CBD apartments recorded a $710,000 median and $617,500 in the southern precinct. The $500,000 to $600,000 and $1 million-plus price ranges were the most popular, with each recording 21% of the transactions, according to Colliers analysis.
Three of the inner-city regions had higher medians than the total Sydney median unit price, which is around $480,000, according to RP Data.
Sydney’s median fell by 1.8% in the year to April 2012, according to RP Data, with the decline in Sydney unit prices having been modest compared with the likes of Melbourne and Brisbane.
The national downturn was put at 3.1%.
For more on Sydney's present and future, download our free eBook <a href="http://propertyobserver.com.au/ebooks/free-ebook-sydney-embracing-the-world-of-tomorrow" target="_blank">Sydney – Embracing the World of Tomorrow.</a>
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Sydney CBD’s apartment market could run out of stock in less than a year: Colliers

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The latest census data confirmed the shift to medium-density living in Sydney’s inner city. While the debate about under- or oversupply of residential dwellings remains, it is clear that demand for inner-city units is high, as evident by the number of transactions in the 12 months to April 2012, with the unit-to-house sales ratio closing the year at 2.5 to 1 (8,099 units vs. 3,163 houses).
Would you invest in off-the-plan apartments in this market? Yes, but with reservations.
As a first-home buyer I would certainly consider buying after October 1, when the NSW state government’s generous incentives kick in. The chance to move into a newly built property and being able to select the location, aspect and inclusions is a strong drawing card to buyers of a first home. However, given the hurdles often put by financiers for purchases of off-the-plan units, it is prudent to start the journey into the housing market with a healthy deposit that will shield against the risk of a lower valuation upon completion.
As a downsizer I would do the sums. As many downsizers are in the stage in life when retirement is contemplated, it is imperative to take into consideration not only the cost to finance the property, but also ongoing costs such as water and council rates and strata fees. A recent research we conducted found that strata fees in city buildings represented a larger percentage of the price of a unit than in buildings located further away from the city.
The reason was often the type of common facilities included in the building. It is imperative to consider the suitability of each facility to the purchaser’s lifestyle. While an elevator is commonplace in most developments, swimming pools, gyms and function rooms are used in marketing campaigns to attract buyers. They have a significant impact on strata fees and are often underutilised by residents. In recent times, developers have shied away from “resort”-style developments of the last decade, understanding that buyers today are conscious of the costs involved, and often outsource their recreational needs to one of the many sporting facilities located around town.
Units will continue to be the dwelling of choice into the future, as both younger and older generations see value in the lifestyle options offered by this type of dwelling. However, it will be the style of the building and the bottom line, not only the location, that will determine the attraction of each unit into the future.
Oded Reuveni Etzioni is a research analyst at <a href="https://www.prdnationwide.com.au/site/page.cfm" target="_blank">PRDnationwide</a>.
For more on Sydney's current market and where it is headed, download our free eBook <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-sydney-embracing-the-world-of-tomorrow">Sydney: Embracing the world of tomorrow. </a>
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Buying an off-the-plan apartment comes with reservations

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Shoe label Tom Gunn has leased 22 square metres of space within one of Melbourne's laneways – Howey Place, off Little Collins Street.
The rent is $4,318 per square metre, per annum – or about $95,000 a year. It’s one of the smallest lease deals to be offered in the Melbourne CBD.
The cutting-edge Australian shoe label was launched in 2008 by Brisbane-based designers Gabrielle Thompson and Shannon Gunn, whose training was at the Ars Arpel School in Milan.
“Melbourne’s iconic laneways are incredibly sought after by retailers keen to position themselves at the forefront of the city’s cutting edge fashion scene,” Colliers International retail leasing agent Ben Tremellen says.
“CBD laneways have been activated by an influx of high-profile, popular tenants in recent times, and Howey Place is one of the best performers.
“It is tightly held, recording record rents and is home to one of Alannah Hill’s best trading stores,” he says.
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Shoe label Tom Gunn steps into Melbourne’s laneway retail market

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Australia is a nation of pet lovers.  It is estimated that 63% of Australian households have some type of pet, with more than 50% of us owning a dog or a cat.
Over many years, Australian and international research has shown that owning pets can help improve a person’s mental and physical health, reduce the effects of stress, help children learn about responsibility, facilitate social interaction between people and build a sense of community.
And according to a recent release by the <a target="_blank" href="https://petnet.com.au/">Petcare Information and Advisory Service (PIAS)</a>, the structural shift to higher-density living has the potential to impact our love of pet ownership and the benefits we derive from having a beloved moggy or ridiculously cute sausage dog called Kransky.
In many countries, according to PIAS, where high-density living has been the norm for a longer period of time, pets have been successfully integrated into city life.  And while it appears more and more landlords and bodies corporate in Australia are open to tenants and owners having pets, we still have a long way to go before we reach the acceptance levels of our compatriots overseas.
I have always been a cat person. I grew up with cats with imaginative names like Sylvester, Panther, Sebastian and Spike.  Our first cat was called McFur, which I must admit is pretty damn cool.
I was pet-less for about 15 years as I wandered around the globe, but about four years ago I inherited a cat a colleague had found living in a drain. The story goes that the previous owners had packed up and quite purposely left the cat behind. I still shake my head about it to this very day.
<img style="margin: 5px; float: left;" src="/images/stories/2012/07/trixie.jpg">
Now this cat lived in a drain for several weeks and was only rescued once it decided to start stealing food from people’s houses. She was obviously very hungry, but also admirably resourceful. The vet nicknamed her “Worms” and she lived there for two months before the last day of her existence was nigh. My colleague, an avowed animal-lover who already had a large enough collection of pets herself, put out a last desperate call for someone to save the cat’s life. For some reason, I answered that plea and within six hours had a very frightened, pitch-black, green-eyed fur-person delivered to my townhouse. Her first toy was a feather duster.
We named her “Trixie” (Trixie McMoo Moo in reality, which is quite embarrassing for me and for her) and she is the most affectionate, clumsy, slightly crazy cat I have ever known. We kept each other company over those years, but like so many people when I decided to move into a new property, there was a “no pets” policy. I thought about sneaking her in but decided against it. The next best option, of course, was to call my mum.
No doubt there is research out there somewhere about the tens of thousands of animals that end up living with mum and dad. Mum was due to retire, had lots of outdoor space for Trixie to roam around and roll in, and best of all, I could still see her whenever I wanted.  I saw her yesterday actually, but I must admit (as cats are wont to do) her affection for me has waned and is now firmly lodged with my mother. But that’s OK because she is happy and healthy where she is. But if I’m completely honest, part of me still pines to have her back living with me – especially now that it’s winter so she could keep me warm under the covers.
Nicola McDougall is media and communications manager 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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