Developer <a href="https://www.apartments.com.au/developers/drew-group">Drew Group</a> is wasting little time following the completion of Lagoon Main Beach, lodging plans for another high-rise apartment development less than two kilometres away at the northern end of Surfers Paradise.

Drew Group, led by local developer Jon Drew, is pitching for a 32-storey residential tower at 180–184 Ferny Avenue, replacing three low-rise buildings on a prominent 1,055 sqm corner site just 150 metres from the beach.

Drew called on architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/bda-architecture">BDA</a>&nbsp;to design the new slender tower, which will have 130 apartments. BDA drew on the inspiration of legendary architect Frank Lloyd Wright's philosophy of organic architecture, which seeks "a superior sense of use and a finer sense of comfort, expressed in organic simplicity."

"The design creates a seamless dialogue between built form, natural elements, and the iconic Surfers Paradise context," BDA wrote in the application recently submitted to the Gold Coast City Council.<img alt="First look: Drew Group eyes next Gold Coast tower after completing Lagoon Main Beach" data-entity-type="file" data-entity-uuid="5dcaa84d-67ba-4e22-b8f1-208ca5056b05" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/surfers%20paradise%20da.png?VersionId=Ah9oBOlL0ofC5eboXSI.dEq9VRfEnFaT" />

BDA also drew inspiration from New York's iconic Flatiron Building, with softened curved corners responding to the geometry of the triangular site. While referencing the 1902 Manhattan landmark, the design reinterprets its distinctive form through a contemporary coastal lens.

Drew is targeting the Gold Coast's "missing middle" market, a segment that has arguably been underserved in recent years. The project is weighted towards owner-occupiers, with 104 two-bedroom apartments complemented by a further 26 one-bedroom residences.

Resident amenity will be centred on the level five podium, featuring a resident lounge, gym, yoga room, steam room, sauna, lap pool with a lagoon area, spa, cold plunge and magnesium plunge.&nbsp;

Additional resident facilities will occupy the rooftop, including work-from-home spaces, a meeting room, resident lounge with a full kitchen, bar and dining area, as well as a dedicated wellness zone with additional plunge pools, steam rooms and saunas.

<img alt="First look: Drew Group eyes next Gold Coast tower after completing Lagoon Main Beach" data-entity-type="file" data-entity-uuid="a1392ad9-620b-41f9-957d-b1fcec13613f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/surfers%20da%20podium.png?VersionId=9kDudIwvCaZFW6F8IyXGP6wQg0B_VS3E" />

The application follows the completion of Drew Group's Lagoon Main Beach, which only has around four apartments left to sell after a successful sales and marketing campaign.

Built by Hutchinson Builders, Lagoon comprises 248 apartments and was popular with local owner-occupiers and interstate buyers.

Joel Robinson

First look: Drew Group eyes next Gold Coast tower after completing Lagoon Main Beach

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

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?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

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Canberra landlords, capitalising on the housing supply shortage, increased asking rents rising 6.4% in the final three months of 2011.
Data from Australian Property Monitors shows asking rents for Canberra houses rose $30 to a median of $500 a week.
The four other capital cities to notch house rental rises over the quarter were Brisbane, up 2.7% to $380, Perth, up 2.6% to $400, Adelaide, up 1.5% to $340, and Sydney, up 1% to a $500 median weekly asking rental for houses.
<img src="/images/stories/rentapm1.jpg">
Melbourne, Darwin and Hobart recorded no increases in median asking weekly house rentals over the December quarter.
<img src="/images/stories/rentapm2.jpg">
APM concluded that nationally rentals had resumed upward growth after flat results over the previous two quarters.
The national median weekly asking rents for houses rose by 1.1% in the December quarter, with rents for units rising by 1.4%.
The increased rentals over the December quarter for both houses and units indicated increased competition for accommodation particularly from first-home buyers struggling to secure property in the marketplace, APM senior economist Dr Andrew Wilson says.
<img src="/images/stories/rentapm3.jpg">
“The Sydney, Perth and Canberra rental markets have been characterised by chronically low vacancy rates and, with ongoing low levels of new construction, this situation is expected to continue with upward pressure on rentals.
“The Brisbane rental market also remains highly competitive for tenants reflecting ongoing consequences of the devastating floods of early 2011 and the slow progress of reconstruction.
“Melbourne continues to be Australia’s most tenant-friendly rental market with a wider choice of properties courtesy of nation-leading dwelling construction and no growth in rentals for both units and houses over the December quarter.”
<img src="/images/stories/rentapm4.jpg">
APM notes that rising rentals combined with a general softening in prices has resulted in increases in gross rental yields for most capitals over 2011.
Units continue to provide higher gross rental returns compared with houses in all the mainland capitals despite units generally outperforming houses in the sales market.
Capital city house rental yields range between 3.95% in Melbourne to 5.09% in Hobart.
Unit yields range from 4.44% in Melbourne to 5.38% in Canberra. 
Canberra rental agents report there is always a much higher demand for properties over the November to February months, hence the increase in rents due to demand. 
“This demand falls over the winter months, so there is a delicate balancing act with respect to price,” one managing agent suggests.
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jchancellor-FAypfDUnLy

Canberra landlords seek higher rents in response to housing shortage

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Dwelling approvals rebounded in November 2011, rising 8.4% to 11,424 dwellings mainly as a result of a big jump in apartment and unit approvals.
The November rise reverses falls of 14.8% and 10% in September and October, according to the latest ABS data.
The seasonally adjusted estimate for private-sector units increased 17.2% in November 2011 following a fall of 10% in the previous month, and estimates for houses rose 4.8% following a fall of 9.6% in the previous month.
Building approval figure have see-sawed up and down throughout 2011, but the overall trend has been a significant decline, with total dwelling units down 18.9% for the year to November 2011. Units were down 27.8% and houses down 9.6%.
Building approvals have fallen in eight of the past 12 months on a seasonally adjusted basis up until November 2011.
HSBC chief economist Paul Bloxham says the “broad story” in the figures is that housing construction is still declining.
He described the November improvement as a bit of a tick back after the steep declines of September and October.
Victoria recorded a 39.9% seasonally adjusted jump in total building approvals in November, but this followed two months of steep declines in September (-13%) and October (-18.4%).
In absolute terms, approvals of houses in Victoria increased to 1,707 in November compared with just 930 in October, while unit approvals rose to 4,484 from 3,366 in October.
Putting the November result into perspective, there were 5,664 unit approvals in March 2011, but since then monthly approvals have all been below 5,000 units.
In Queensland, where the $10,000 building boost <a href="https://www.propertyobserver.com.au/residential/queensland-government-to-extend-building-boost-until-april/2012011253029">has now been extended to April</a> after gathering some momentum, building approvals improved by 6.6%.
NSW registered a 2% increase in building approvals, and there was a 16.9% drop in Western Australia.
Also released were construction figures, which revealed that seasonally adjusted residential building work done fell by 1.6% to an annualised level of $45.5 billion in the September 2011 quarter. 
HIA chief economist Harley Dale says: “Leading housing indicators looked very weak in late 2011, but ahead of this period actual residential construction activity had already been trending down for 12 months”. 
“A three-pronged attack is required to resurrect activity in residential building, an industry which has a large multiplier impact in terms of output and employment across the wider domestic economy,” he says. 
“There is an urgent need for further cuts in borrowing costs for both businesses and mortgage holders, short-term government stimulus, and renewed action on the longer-term housing policy reform front.” 
However, CBA chief economist Michael Blythe is forecasting dwelling construction to lift from 148,000 units in 2011 to 155,000 in 2012. 
“Part of the thinking behind this forecast is the idea that there is a ‘natural’ level of construction activity around which actual dwelling starts cycle,” he says.
“Over the past 15 years that natural level has sat in a 150,000-to-160,000 per annum range. The level reflects factors such as land release, manufacturing capacity, construction company appetite and competition for labour and resources from other construction activities. 
“Various factors drive the cycle around the natural level. But much of the divergence is associated with changes in government housing policy and exogenous ‘shocks’ such as the GFC. 
“For the past five years the demographically driven demand for new housing has run well ahead of new supply. As a result, there is an excess demand for dwellings and a pent-up or accumulated demand as well. Low residential vacancy rates and above-average growth in dwelling rents are the visible signs of this imbalance. This demand-supply mix suggests that there is limited downside to residential construction in 2012,” he says.
Other factors such as improved housing affordability Blythe says are “trending in the direction of upside risks to our 2102 call”.
 
 
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lschlesinger-FZcF9M3vE6

Building approvals jump in November due to pick-up in units: ABS

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As we moved into the new year of 2012, I found myself celebrating another milestone.  Right now, the NSW planning system is undergoing the biggest change in 30 years. One of the councils we work under finally gazetted a new LEP – Local Environmental Plan.  The NSW government is changing the way that LEPs are developed and approved for our communities.  This means many councils are undergoing a change to their LEPs. 
One of the biggest challenges of a property developer is keeping up with council regulations.
If you’re thinking of renovating, extending, building new dwellings, demolishing or subdividing you will need to lodge a development application (or DA) with your local council.  But even before you are ready to put your DA together, you must have a good understanding of the council’s LEP.
Something very important you should ask your council is whether there is a draft LEP in existence. A simple search of its website should tell you what’s in the planning pipeline.
There are no general regulations that apply throughout Australia – so as a developer, you must contact your local council for specific details relating to what you want to do.  DAs allow councils to assess whether your plans are appropriate for the area based on their LEP and development control plan (DCP).
This brings me to share an interesting period we’ve had with several Hunter councils as they went through the process of introducing new LEPs.
A LEP is a legal instrument that imposes standards to control development. These plans determine the areas in which various types of development can be considered and which areas of open space and environmental sensitivity need to be protected.  These plans can have a profound and lasting impact on communities. 
A LEP generally comprises a written document and accompanying maps. LEPs apply to a particular area, generally the whole, or part of, a local government area. 
Most LEPs remain in force until they are amended or repealed by an amending LEP. The process to amend an LEP is massive.  We’ve been waiting for one council to draft and finally implement its LEP for five years!  There were many changes and each time a new edition of the draft LEP went on exhibition, we had to study it.  Finally, the LEP was gazetted. When the draft LEP is gazetted, it takes over from the current LEP as the primary environmental planning instrument. 
In the case of our Hunter council, the new LEP will provide more than 1,000 additional residential lots at eight sites across the local government area. In addition the LEP zones new employment land, which will encourage job creation in close proximity to the existing centre of town, while protecting the environmental values of the area.
The LEP also identifies planning controls for a major new town. For a developer, this is very important information. A whole new town will impact greatly on the economy and the demand and availability of housing, so you can see it’s crucial for you to know of any changes to your council’s planning process.
Importantly we’ve found that as the new LEP comes in there is a big grey area. DAs that were submitted prior to the date that the new LEP was gazetted will continue to be assessed under the old LEP and the old DCP, with due consideration of the new LEP. What the?
This may sound a bit confusing but as a developer it’s your responsibility to get a handle on the requirements of your council. I’d suggest you use a planning consultant with a strong understanding of your council’s requirements if you don’t have the time. Remember, the planning phase is just one of the many phases you’ll journey through as a developer. It’s a time-consuming pursuit but one that can bring many rewards.
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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jochivers-wq5Bp59R5a

What a new local environment plan can mean for your development

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I’m often asked where “effective lives” come from, and the short answer is the Commissioner of Taxation. The long answer is a lot more complicated than that.
For those uninitiated in how depreciation rates are calculated for plant and equipment assets, the effective life is important because it drives the depreciation rate. Take, for example, the addition of carpet to a rental property. As at the time of writing, the depreciation rate under the diminishing method is 20%. This is calculated by dividing 200 by an effective life of 10. The commissioner is responsible for giving us the effective life of carpet at 10 years.
Effective lives are determined by the commissioner through estimating the period if can be used by any entity for a taxable purpose (within an investment property), assuming it is:
<ul>
<li> subject to wear and tear at a reasonable rate; and</li>
<li>maintained in good order and condition. </li>
</ul>
The commissioner determines the effective life based on historical information and future expectations. He or she specifically considers things such as those mentioned below.
1. The physical life of the asset
This relates to the period a depreciating asset can be used by an entity for the relevant purpose. The case may be put that as long as the asset physically exists and is not physically exhausted, then it is able to be used. In this case we’re looking at the outer limit of an assets life through historical evidence.
2. Engineering and manufacturers specifications
The estimate of an effective life will not always remain the same. Changes in technology and the quality of manufacture will result in an increase or decline in the usable life of an asset. Manufactures specs are a good guide to how long something will last. Warranty periods can also give an indication of the evolution of an assets effective life over time. If ceiling fans that have always had a five-year warranty but newer models are coming out with 10 years, there’s a case to the argument for an increase in the effective life.
 3. The way the asset is used by an industry
We touched previously on the past experience of users in the first point, but it’s interesting to note that not all industries use their assets in the same way. A perfect example exists in the different effective life of carpets. For example:
Residential property = 10 years
Commercial offices = 8 years
Accommodation providers = 7 years
Restaurants, pubs and the like = 5 years
Perhaps the most entertaining example is the difference between the effective life of furniture in a pub depending on whether it exists in a dining area (eight years) or a drinking area (a mere five years!) Clearly the furniture gets a much harder time where booze is involved!
In all seriousness, this is where property owners need to engage an experienced tax depreciation quantity surveyor, as knowing the difference between these effective lives can result in significant increases in tax deductions.
4. Levels of repairs and industry standards
Some plant and equipment items could in theory be repaired on an ongoing basis in order that they continue operating indefinitely. However, the legislation states that an asset only need be maintained in reasonably good order and condition. The term reasonably considers that it is not always reasonable to continue spending money on an asset where it would make more economic sense to dispose of it a purchase a new one.
5. Obsolescence, abandonment and scrapping
Plant and equipment assets can become obsolete either through technological or commercial reasons. For example, something may become commercially obsolete because the asset produces goods that are no longer required or current. Technological obsolescence is something we’re all familiar with. Anyone with a mobile phone understands that over time tools become available that perform the same tasks faster, more efficiently, and with more relevance to the greater marketplace. However. an asset’s life does not necessarily end because something newer has come along. Obsolescence is only considered when it prevents the continued use of the asset for the purpose it was designed.
Quantity surveyors are able to “scrap” assets that have reached the point of obsolescence, or the end of their productive life. Say for example you have owned a property for some time and are undertaking renovations. Assets like old blinds, carpets, cooktops and the like will have a residual value that can be written off, as the assets are being thrown away and replaced. Scrapping is a practice that I will elaborate upon further in another article.
6. Market values, economics and financial analysis
Lease periods can be a good indicator of the effective life of an asset as it is unlikely that an asset would be leased for a period longer than it is useful. In the same way, an effective life should be no shorter than the period it can be leased for. If a company leases a crane for 10 years, it clearly believes (and have historical evidence/manufacturers specifications) that demonstrate that it will last the whole of that time. This can be expanded into a financial analysis. If, for example, a large manufacturing plant and equipment item costs a certain amount to purchase, there must be an expectation that it will serve its purpose preparing or producing a certain quantity of products for a certain number of years.
In evaluating market values for the determination of effective lives, it can be seen that depreciating assets with a market value will decline in value over time. For example, a brand-new lawn mower might be $400 today, however in four years’ time its value will be closer to $200.
In analysing the decline in value over time, you can get a sense of the time it takes for the majority of its value to depreciate away.
In conclusion, there is a significant amount of analysis and empirical evidence that can be used to estimate the effective life of an asset, and I hope that this explanation of some of the tools at the commissioner’s disposal sheds some light on where an effective life comes from.
 It’s also important to remember that property owners are able to determine their own effective lives based on these factors, however it is best to contact a quantity surveyor or similarly qualified expert before doing so.
For more information you can search for the relevant taxation legislation on effective lives, such as TR 2011/2 (as at the time of writing), where you can find more information about the determination of effective lives. This legislation is normally updated for the beginning of each financial year.
Mike Mortlock is director of <a target="_blank" href="https://www.mcgqs.com.au/">MCG Quantity Surveyors.</a>
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mmortlock-YX58RgDaQB

How to determine the effective life of a depreciating asset in your property

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It’s hard to avoid concluding that both employment and commercial property returns in Australia are going to come under a lot of pressure this year and beyond. The banks are clearly preparing for some big redundancy rounds because of slower lending growth and higher funding costs, and retailers have been closing down and reducing staff for a while already and are going to keep doing it. Meanwhile, the manufacturing industry is hanging on by its fingernails, through government funding of the car industry. These industries are Australia’s three biggest employers, and each is now in a downturn for both the same and different reasons. They are going to need fewer workers and less real estate – offices, shops and factories. This week a big report on the banks by Jonathan Mott of UBS got a lot of attention when he predicted that 7,000 jobs would go in the banking industry. He said the banks’ staff numbers have increased from 141,000 to 179,000 over the past 10 years, and would be cut to 172,000 over two years. And the rest. As Stephen Bartholomeusz pointed out in Business Spectator yesterday (<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/ANZ-McFarlane-job-cuts-banks-CBA-NAB-WBC-pd20120117-QL3MP?OpenDocument&amp;src=sph">Brace for a bank jobs blitz</a>, January 17), banks will have to reshape their business models, if not reinvent them, because credit growth has fallen permanently, the cost of funds has increased and online banking is now fully established. As with retailing and manufacturing – all businesses in fact – the first of those is the most important. Banks have already disconnected themselves from the Reserve Bank’s interest rate moves and will be cutting their mortgage rates by less than official cash rates this year. In fact, they might even increase rates while the RBA cuts. Cost increases can generally be passed on to customers, but if demand for your product is down there is nothing you can do but reduce costs, and for banks, retailers and manufacturers, that means staff. Jonathan Mott says the banks have been “lax” on costs, increasing staff by 7% a year for a decade, compared with 2.7% a year the previous decade. They were “investing for growth”. That growth – 14% to 16% compound annual growth in lending – has now evaporated and the banks have entered a new era of low volume growth as their customers retrench debt. The only sector that is investing and borrowing large sums in Australia is mining and energy, and the local banks haven’t got much of a foothold there – the big projects are funded globally. And mortgage rate cuts only tend to accelerate the reduction in lending growth because 80 per cent of mortgagees don’t reduce their repayments: they just increase their principal repayments and keep the monthly mortgage payments the same. That offsets any growth in new lending, which is pretty weak these days anyway. And the fact is that almost everybody is using ATMs and internet banking these days. Branches and face-to-face contact with customers are still important for sales and client relationships – especially big clients – but nobody’s going into branches to get cash, transfer money or pay bills any more. A revolution has happened in banking that is not yet reflected in the way they operate. I suspect the reduction in banking employment will be a lot more than 7,000 over the next few years. Likewise retailing. I drove down the clothing precinct of Bridge Road, Richmond yesterday and in a few hundred metres counted six closing down sales and three empty stores. While the big malls are still reporting near-100 per cent occupancy, most strip shopping centres are being hollowed out by online shopping combined with weak consumer spending. The retail revolution has only just begun but it’s happening with a rush now, helped by the strong Australian dollar. With customers doing a big part of their shopping online, a lot less shop staff will be needed to help them decide what to buy. As for manufacturing, the Australian dollar is not coming down in a hurry so exporting and competing with imports will remain difficult, if not impossible. The car industry patient is being kept alive by government life support, but at some point, you’d think, the respirator will have to be turned off, or at least down. Even with the subsidies, parts of the industry will die. Empty offices, empty shops, empty factories… who’d want to own commercial property these days?
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator</a>.  
 
 
 
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akohler-TyLfJGrMb8

Commercial property under pressure due to job cut trend: Alan Kohler

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<img style="border-style: initial; border-color: initial;" src="/images/stories/48586.gif">
The number of properties on the market in Melbourne in December 2011, according to SQM Research. This is up 43% from 33,865 in December 2010.
 
<hr>
 
<img src="/images/stories/342581.jpg">
The number of properties on the market in Sydney in December 2011, according to SQM Research. This is up 23% from 27,956 in December 2010.
 
<hr>
 
 
<img src="/images/stories/29211.gif">
The number of properties on the market in Brisbane in December 2011, according to SQM Research. This is up 3% from 28, 389 in December 2010.
 
<hr>
<img src="/images/stories/19579.gif"> 
The number of properties on the market in Perth in December 2011, according to SQM Research. This is up 1% from19,292 in December 2010.
 
<hr>
<img src="/images/stories/17953.gif">
The number of properties on the market in Adelaide in December 2011, according to SQM Research. This is up 26% from 14,242 in December 2010.
 
<hr>
 
<img style="border-style: initial; border-color: initial;" src="/images/stories/4689.gif"> 
The number of properties on the market in Hobart in December 2011, according to SQM Research. This is up 52% from 3,090 in December 2010.
 
<hr>
<img src="/images/stories/1907.gif">
The number of properties on the market in Canberra in December 2011, according to SQM Research. This is up 21% from 1,578 in December 2010.
 
<hr>
 
<img src="/images/stories/1542.gif">
The number of properties on the market in Darwin in December 2011, according to SQM Research. This is down 1% from 1,554 in December 2010.
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cknowlton-QnEa6ntUYP

How much property is on the market in your capital city? A state-by-state analysis

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Encouraging signs for the housing market have emerged in the January Westpac-Melbourne Institute Index of Consumer Sentiment.
The sub-index tracking responses on “whether now is a good time to buy a dwelling” jumped by 6.5%, representing a 14.1% gain in sentiment over the past year.
But with pessimists outnumbering optimists for six out of the last seven months, overall consumer sentiment edged up only slightly in January. The survey was conducted from January 9 to January 12.
Despite rising expectations about the broader economy through 2012, economists say European debt woes and concerns over the labour market took the shine off falling interest rates.
A 2.4% increase took the Westpac-Melbourne Institute of Consumer Sentiment index to 97.1, still below the long-term average of 101.8 and well below the 120.1 result this time last year. The index is calculated from the results of several subindexes.
The rise in the overall index was largely due to an almost 10-point jump in the subindex measuring expectations of economic conditions over the next 12 months.
However, the subindex measuring family finances in 2011 suffered a 2.5-point drop, and the subindex measuring expectations of family finances over the next year rose only 0.7 points.
The release noted divergence between the sentiments of consumers regarding their own spending and their views of the wider economy – it says economic behaviour is more likely to be influenced by the latter.
"We've been resilient to external shocks, and that's become part of the way Australian consumers see Australia and our economy," Westpac senior economist Matthew Hassan says.
"There may be a disconnect between the mining-driven broader economy and what consumers are actually seeing."
The bank describes the result as "disappointing", as it showed the two interest rate cuts had only a minor effect on consumer sentiment.
"We've had quite an abrupt shift on interest rates," says Hassan.
"The RBA went from a tightening bias to cutting rates, with an expectation of further rate cuts on the way."
"Ordinary, if you move like that, you hope to get a sustained bounce in consumer sentiment."
"We have seen a rise, but the level of the index suggests the initial bump may be starting to fade."
Hassan says the steady drip of bad news from Europe may have played a role in the weaker-than-expected result, as might ongoing concerns around labour markets.
The RBA board will next meet on Tuesday February 7. Westpac expects the board to again cut rates by 0.25 percentage points.
Additional reporting by Myriam Robin of<a target="_blank" href="https://www.smartcompany.com.au/index.php"> SmartCompany</a>.
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Time to buy a dwelling index jumps in January: Westpac-Melbourne Institute Index

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Three regional Queensland markets head RP Data’s top 10 list of locations with the highest proportions of homes with negative equity, according to the latest quarterly report.
The situation is particurlarly acute in far north Queensland, where more than one in five home owners (20.2%) had negative equity in their homes in the September 2011 quarter, up from 13.5% in the previous quarter.
This region, which includes Cairns, Palm Cove, Port Douglas, Innisfail, Weipa and Atherton, “has been noticeably weak and has felt the full brunt of the economic downturn”.
“Prior to the onset of the financial crisis this region was benefitting from surging demand due to strong population growth, and property values were subsequently rising strongly.
“As a result, the vast majority of home owners that have purchased since 2008 are likely to be in a negative equity position,” says RP Data.
Second and third on the list are the Gold Coast (14% of homes in negative equity) and the Sunshine Coast (13.5% in negative equity) while the Wide Bay-Burnett region – the coastal and hinterland areas between Caloundra and Gladstone – also makes it onto the list with, just under one in 10 homes in negative equity. 
The proportion of homes with negative equity on the Gold Coast is up from 9.9% in the previous quarter, highlighting “the ongoing weakness across the market, with no signs of a recovery in property values to date across the region”. 
Western Australia regional areas are also prominent on the list, with more than 10% of properties in negative equity in four locations. 
Two Victorian regional areas – Ovens-Murray and the Mallee – round out the top 10.
<img src="/images/stories/negativeequity1.gif">
Across Australia (<a href="https://www.propertyobserver.com.au/residential/melbourne-leads-nationwide-drop-in-house-prices-in-second-half-of-2011-residex/2012011753062" target="_blank">and in line with a decline in property values</a>) nearly one in 20 home owners (4.9%) find themselves owning properties that are worth less than when they bought them, up from 3.7% in the previous quarter.
At the opposite end of the spectrum, the top 10 regions with the lowest levels of negative equity have less than 3.5% of all properties in a position where the current value is lower than the purchase price. 
Canberra has the lowest proportion of properties in a negative equity position, with just 1.2%, up from 1% in the June quarter, with Melbourne and Sydney also making the list of regions with the lowest instances of negative equity.
Outside of these three locations, most regions on this list are “heavily linked to the resources sector or they are agricultural areas” says RP Data.
<img src="/images/stories/negativeequity2.gif">
Overall, Victorian households enjoy the strongest equity position, with 68.5% of home owners having at least 50% equity in their property, down from 71.4% last quarter.
Households in the Northern Territory (60.6%) and the Australian Capital Territory (60.5%) also enjoy relatively strong positions.
RP Data estimates equity accumulation by measuring the difference between the original purchase price of home and the current valuation for individual properties around the country.
It therefore does not take into account the size of people’s mortgages in relation to the value of their homes – the typically understood definition of negative equity.
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FNQ, Sunshine and Gold coasts dominate RP Data negative equity list

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Although the <a target="_blank" href="https://www.propertyobserver.com.au/residential/melbourne-leads-nationwide-drop-in-house-prices-in-second-half-of-2011-residex/2012011753062">pace of house price declines increased over the last six months of 2011</a>, Residex CEO John Edwards expects the overall housing market to recover in 2012 and “exit a period of negative adjustment”.
Edwards says the price adjustments in 2011 were necessary, because markets were overvalued and affordability remained a problem.
This correction, he says, should ensure “we avoid the speculated housing ‘bubble bust’”.
“Our housing markets ended 2011 in a better position to where they started and I am confident that the year ahead will be better for residential property owners compared to last year,” he says.
He bases this view on the fact that in December 2010 house prices declined by 1.10% while they only declined by 0.72% in December 2011.
“Most owners should see their assets hold value or increase and this year could in fact be a good time for investor activity provided the world economy doesn’t move into severe recession as a consequence of the problems in Europe.
According to Edwards, examining the monthly trend for house and unit prices in Australia over the past two years suggests markets are “exiting a period of negative adjustment”.
<img src="/images/stories/residexjan181.gif">
“However, in my view, we should not expect any rapid uplift in housing values because current economic conditions are not capable of supporting strong consumer activity. Retail activity during the Christmas period certainly suggests that consumers are cautious,” he says.
Looking at the monthly growth trends on a capital city basis shows that Melbourne, Hobart and Perth are improving while the Canberra, Darwin, Sydney and  Brisbane markets heading down.
<img src="/images/stories/residexjan182.gif">
<img src="/images/stories/residexjan183.gif">
The bottom line, according to Edwards, “is that we have achieved a good result, and it looks like an overall improving position may be the trend in the coming year.” 
“Overall, the outcome for the year ahead will depend on interest rates, the eurozone crisis, inflation, the employment level and the carbon tax,” he says. 
Edwards says even further housing price falls in 2012 would provide opportunity. 
“Australians are much better placed than many other people in the world, and the adjustment period we have recently seen, with a clear upswing in our markets in the last few months, means that there is a reasonable chance that our markets will advance positively, albeit by a relatively small amount, in the current year,” he says. 
“Additionally, in this situation there will be bargains for the astute house hunter along with quality growth in many suburbs,” he says.
For more expert forecasts about what 2012 has in store for Australia's property market, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-property-forecasts-for-2012">download our free eBook</a>.
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Australian housing market set to recover in 2012: Residex's John Edwards

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Renters of houses in Sydney are paying an average of $55 more a week than they were six months ago, with median house rents rising from $500 to $555 in the space of six months, according to the latest Residex data.
Sydney recorded a 6.73% increase in median house rents over the course of 2011, the biggest increase of all the capital cities.
Brisbane was the only capital city market to record a decline in house rents over 2011 with renters paying $375 per week on average (an decrease of 2.6% over 2011) compared to $380 six months ago.
Perth recorded the second biggest capital city increase, with house rents rising 5.26% over the past 12 months to a median of $400. On average Perth renters are paying $10 more than they did a year ago.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top">
Area
</td>
<td valign="top">
Rate month ending Dec 2011
</td>
<td valign="top">
Month ending Dec 2011
</td>
<td valign="top">
Year change
</td>
</tr>
<tr>
<td valign="top">
ACT
</td>
<td valign="top">
4.78%
</td>
<td valign="top">
$480
</td>
<td valign="top">
3.23%
</td>
</tr>
<tr>
<td valign="top">
Adelaide
</td>
<td valign="top">
4.33%
</td>
<td valign="top">
$330
</td>
<td valign="top">
0.00%
</td>
</tr>
<tr>
<td valign="top">
SA Country
</td>
<td valign="top">
5.02%
</td>
<td valign="top">
$255
</td>
<td valign="top">
6.25%
</td>
</tr>
<tr>
<td valign="top">
Brisbane
</td>
<td valign="top">
4.59%
</td>
<td valign="top">
$375
</td>
<td valign="top">
-2.60%
</td>
</tr>
<tr>
<td valign="top">
QLD Country
</td>
<td valign="top">
5.25%
</td>
<td valign="top">
$370
</td>
<td valign="top">
2.78%
</td>
</tr>
<tr>
<td valign="top">
Darwin
</td>
<td valign="top">
5.82%
</td>
<td valign="top">
$540
</td>
<td valign="top">
3.85%
</td>
</tr>
<tr>
<td valign="top">
Northern Territory
</td>
<td valign="top">
5.95%
</td>
<td valign="top">
$525
</td>
<td valign="top">
0.96%
</td>
</tr>
<tr>
<td valign="top">
Hobart
</td>
<td valign="top">
4.55%
</td>
<td valign="top">
$340
</td>
<td valign="top">
0.00%
</td>
</tr>
<tr>
<td valign="top">
TAS Country
</td>
<td valign="top">
4.84%
</td>
<td valign="top">
$250
</td>
<td valign="top">
-3.85%
</td>
</tr>
<tr>
<td valign="top">
Melbourne
</td>
<td valign="top">
3.45%
</td>
<td valign="top">
$380
</td>
<td valign="top">
1.33%
</td>
</tr>
<tr>
<td valign="top">
VIC Country
</td>
<td valign="top">
4.78%
</td>
<td valign="top">
$305
</td>
<td valign="top">
1.67%
</td>
</tr>
<tr>
<td valign="top">
Perth
</td>
<td valign="top">
4.45%
</td>
<td valign="top">
$400
</td>
<td valign="top">
5.26%
</td>
</tr>
<tr>
<td valign="top">
WA Country
</td>
<td valign="top">
5.00%
</td>
<td valign="top">
$335
</td>
<td valign="top">
4.69%
</td>
</tr>
<tr>
<td valign="top">
Sydney
</td>
<td valign="top">
4.40%
</td>
<td valign="top">
$555
</td>
<td valign="top">
6.73%
</td>
</tr>
<tr>
<td valign="top">
NSW Country
</td>
<td valign="top">
5.29%
</td>
<td valign="top">
$340
</td>
<td valign="top">
3.03%
</td>
</tr>
<tr>
<td valign="top">
Australia
</td>
<td valign="top">
4.43%
</td>
<td valign="top">
$365
</td>
<td valign="top">
-1.35%
</td>
</tr>
</tbody></table>
 
Darwin remains the second most expensive city to rent a house, with rents increasing by 3.85% to $540 per week.
Outside of Brisbane, Country Tasmania was the only other market to register a decline in rents over the year with the median rent falling 3.85% to $250 per week.
Capital city rent changes over past six months:
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
Median weekly rent Dec 2011
</td>
<td valign="top" width="205">
Median weekly rent June 2011
</td>
</tr>
<tr>
<td valign="top" width="205">
Sydney
</td>
<td valign="top" width="205">
$555
</td>
<td valign="top" width="205">
$500
</td>
</tr>
<tr>
<td valign="top" width="205">
Darwin
</td>
<td valign="top" width="205">
$540
</td>
<td valign="top" width="205">
$520
</td>
</tr>
<tr>
<td valign="top" width="205">
Canberra
</td>
<td valign="top" width="205">
$480
</td>
<td valign="top" width="205">
$480
</td>
</tr>
<tr>
<td valign="top" width="205">
Perth
</td>
<td valign="top" width="205">
$400
</td>
<td valign="top" width="205">
$390
</td>
</tr>
<tr>
<td valign="top" width="205">
Melbourne
</td>
<td valign="top" width="205">
$380
</td>
<td valign="top" width="205">
$380
</td>
</tr>
<tr>
<td valign="top" width="205">
Brisbane
</td>
<td valign="top" width="205">
$375
</td>
<td valign="top" width="205">
$380
</td>
</tr>
<tr>
<td valign="top" width="205">
Hobart
</td>
<td valign="top" width="205">
$340
</td>
<td valign="top" width="205">
$350
</td>
</tr>
<tr>
<td valign="top" width="205">
Adelaide
</td>
<td valign="top" width="205">
$330
</td>
<td valign="top" width="205">
$320
</td>
</tr>
<tr>
<td valign="top" width="205">
Australia
</td>
<td valign="top" width="205">
$365
</td>
<td valign="top" width="205">
$370
</td>
</tr>
</tbody></table>
Source: Residex
 
 
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