Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

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

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

What does it really mean for a building to be 'green'?

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>

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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>

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Ellen Walker

Off-the-plan property explained: What is stamp duty?

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The lack of investor interest in the housing market was evident in the July housing credit figures released by the RBA this week.
Housing credit expanded by 0.42% in July, a slight improvement from June, when the 0.32% rise was the weakest since records began to be kept in 1976, with the exception of July 1984.
The three-month annualised growth pace of housing credit held at 5%, down from the 9% pace prevailing late in 2009 and early in 2010.
The current growth pace for investors is just 3.6%, compared with 5.5% for owner-occupiers.
“This highlights the headwinds facing the sector, including a lack of interest from investors,” says Westpac senior economist Andrew Hanlan.
“The outlook for housing credit is lacklustre, housing affordability is a constraint, households are looking to pay down debt and interest rates are a headwind.”
Westpac forecasts overall credit growth is expected to remain subdued over 2011-12.
Commonwealth Bank economist Michael Workman says the subdued growth in owner-occupier and investor mortgage finance points to a softer housing market going forward.
“Housing credit growth has moderated significantly over 2010 and 2011 as owner?occupiers and investors were impacted by past RBA rate rises and the possibility of more,” he says.
“It points to continuing soft existing home sales, prices and turnover activity.”
However, there is some hope for the investor side of the market.
Workman forecasts investor lending to pick up in 2011-12 as rising rentals and stock market volatility entice them back into the market.
ANZ economists Riki Polygenis and Dylan Eades also noted mortgage growth had fallen to record levels, but say the RBA “remains comfortable with households strengthening their balance sheets”.
“Weakness in housing credit also likely reflects a higher level of repayments, not just soft demand.
“However the RBA will be closely watching the renewed weakness in business credit, which at current rates doesn’t augur well for business investment in non-mining sectors.”
Business credit was flat over July, after declining by 0.7% over June. Over the year to July, business credit declined by 1.9%.
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Sluggish housing credit growth points to lack of investor interest: Westpac

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BIS-Shrapnel chief economist Frank Gelber says the eventual end of the resources boom will lead to a dramatic drop in house prices in Western Australia. 
His comments come on the back of a new report, Long Term Forecasts 2011 – 2026, which warns that the Australian economy is vulnerable once the boom ends. 
While Gelber says it is impossible to predict when this will happen, he says the market is starting to weaken. 
“We employ lot more people in the construction phase than in the operation phase [of mines],” he says.
“When the expansion phase end, people will leave, there will be an oversupply of houses and prices will drop dramatically.” 
SQM director Louis Christopher agrees with Gelber that prices will fall when the boom ends but says predicting this is impossible. 
“It could be five years, 10 years or 20 years. It’s like saying that everyone is going to die at some point,” he says. 
Christopher says the risk still remains of a global downturn, which would result in falling commodity prices and a drop in demand for Australian mineral resources. 
In such a scenario, Christopher says mining towns would be the ones most vulnerable to a housing correction. 
“Perth prices have been in a downturn since 2007, and could bottom out fairly shortly. 
“However, mining town like Karratha where a four-bedroom house costs a $1 million would be smashed.” 
In its Long Term Forecasts 2011 – 2026, BIS Shrapnel warns that the structural change to the Australian economy caused by the resources boom and the strength of the Australian dollar should be the real concerns for Australians – not financial shocks being felt around the globe. 
The research house is calling for an infrastructure investment-led productivity drive to bring balance to the economy and which will make Australian industry more efficient and cost-effective. 
“The current financial market ructions are serving as a distraction from something much more important: the impact of the resources boom on the rest of the Australian economy,” Gelber says. 
Gelber says a resources tax is also needed to prepare the economy for the end of the boom. 
“While the resources boom continues and the dollar stays high, investment in infrastructure will serve as a rear guard action against loss of industry,” he says. “But, equally importantly, it will serve as the underpinning of growth once the minerals boom ends.”
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When mining boom ends, the west will weaken: BIS Shrapnel

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The average rental yield for Australian houses nationally was 4.3%, according to RP Data. Five capital cities - Sydney, Brisbane, Darwin, Canberra and Hobart - have rental yields above this average, Perth's rental yield is at this average, and Melbourne and Adelaide are below. 
 
<img src="/images/stories/4point4percent.jpg">
The average rental yields for houses in Sydney in July
 
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<img src="/images/stories/3point7percent.jpg">  
The average rental yields for houses in Melbourne in July
 
<hr>
<img src="/images/stories/4point7percent.jpg"> 
The average rental yield for houses in Brisbane in July
 
<hr>
<img src="/images/stories/4point2.jpg"> 
The average rental yield for houses in Adelaide in July
 
<hr>
<img src="/images/stories/4point3.jpg"> 
The average rental yield for houses in Perth in July
 
<hr>
 
<img src="/images/stories/5point2percent.jpg">
The average rental yield for houses in Darwin in July
 
<hr>
<img src="/images/stories/4point8.jpg"> 
The average rental yield for houses in Canberra in July
 
<hr>
<img src="/images/stories/5percent.jpg"> 
The average rental yield for houses in Hobart in July
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Investors' guide: capital city rental yields by the numbers

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Actor Leonardo DiCaprio, who’s in Sydney to shoot the title role in The Great Gatsby film remake, did get his desired rental requirement of a harbourside Sydney bolthole with a tennis court.
DiCaprio, who topped the latest list of Hollywood's highest-earning actors according to Forbes.com,<a href="https://www.propertyobserver.com.au/new-south-wales/leonardo-dicaprio-struggles-to-find-sydney-s-west-egg-for-gatsby-filming/2011080451026" title="DiCaprio looking for Sydney bolthole" target="_blank"> had his scouts looking for luxury rental lodgings with a $30,000 a week limit.</a>
There are just 21 eastern suburb Sydney harbourfront homes with tennis courts, and eight have the tennis court directly on the water. He’s secured one of the ones with the tennis court on the non-harbourfront side in Vaucluse.
The Sydney Morning Herald's PS columnist Andrew Hornery reported that DiCaprio's $10,000-per-week rental digs are owned by businessman Alastair Walton and his wife, Gillian, who paid $14.275 million for the property in 2002. 
While spending much of his time in The Hamptons, New York, Walton has been periodically resident in the rear nanny flat during previous rentals to other lesser-known occupants of the Luigi Rosselli-designed mansion. Interestingly F. Scott Fitzgerald's novel is set in the New York enclave of the rich and richer.
Walton is a career investment banker who was briefly vice chairman and managing director of Goldman Sachs JBWere in Australia.
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Leonardo DiCaprio gets his Sydney tennis court for Gatsby shoot

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Houses are now taking 55 days to sell compared with 45 days at the same time last year, according RP Data-Rismark.
And to get a sale vendors are having to typically knock 7.2% off their asking prices across the capital cities. The required discount was 5.7% in July last year.
“The build-up in the number of homes being advertised for sale together with the slow-down in buyer demand has once again seen average selling times expand,” says Tim Lawless, RP Data research director.
“If these soft trends persist, the spring selling season is likely to open up some attractive investment opportunities for prospective buyers.
“In contrast, the selling environment is likely to be challenging for vendors, particularly if they have unrealistic price expectations,” Lawless predicts.
The softening market is also reflected in house price data, which reveal that <a href="https://www.propertyobserver.com.au/residential/housing-prices-down-nationally-in-softening-market-rp-data-rismark/2011083151364" title="RP Data" target="_blank">prices are down in most capital cities</a>.
Westpac senior economist Matthew Hassan says the weakness of prices in the July RP Data-Rismark report is “of some concern”.
“It suggests most markets are experiencing significant price corrections rather than just price slippage,” Hassan says.
“The downturn nationally is still a fairly 'soft landing', but with consumer sentiment slumping badly through July-August there is a risk further price declines could see a negative feedback loop develop between prices, expectations and demand in some markets.
“When the 2008-09 correction reached a similar point, aggressive policy easing – both in the form of rate cuts and first home buyer incentives – provided the catalyst for a swift turnaround.
“Although our analysis continues to point to substantial 'pent-up' demand for housing currently sidelined, particularly in first home buyer segments, any support from policy is likely to come later in the piece and be considerably milder.
“Westpac's forecast for 100bps in rate cuts starting in December should be sufficient to restore demand and stabilise prices in 2012 but near term risks are clearly to the downside,” Hassan says.
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Sellers need 55 days and a 7.2% discount to find buyers 

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Self-managed super funds are the new kid on the block, and it didn’t take long for the hungry opportunists to jump on this band wagon and set up at property shows all over the country promoting the use of a self-managed superannuation funds to buy property. 
Why is this? My theory is that these people, who benefit from both the fees to set up the funds and the commission on the property they subsequently sell to that fund, saw very quickly that, while some people did not have the equity or borrowing capacity to buy a property in their own name, those same people may well have significant funds tied up in public superannuation funds, which could be accessed legally by setting up their own funds. This then increased the number of people to whom property could be sold, and provided a brand new market for their property products. 
I am not against a self-managed superannuation fund for the right person, as long as it has been set up under the right circumstances. However I believe that there are significant drawbacks, many of which are never outlined during the selling phase, that all investors must be aware of before they make the possibly incorrect decision to set up one. Here are just a few. 
Borrowing 
Changes to the Superannuation Industry Supervision (SIS) Act in September 2007 now mean SMSFs can borrow to purchase real estate, using a structure established for this purpose, as long as certain conditions are met. There are various loan products offered which enable these purchases to be made. 
There are a number of issues with these loans:
 
<ul>
<li>It is not a straight loan to the superannuation fund – there must be a trustee who buys the property on behalf of the fund, who becomes the legal owner, while the superannuation fund becomes the beneficial owner that is, the entity which benefits from the asset.</li>
<li> Loans to superannuation funds are known as non-recourse loans. This means that, if the loan is not repaid, the capacity of the lender to recover the outstanding money is limited to what they can recover by selling the property which those funds bought. They cannot touch any other fund assets. This seems good on the surface, but it means that the loan to valuation ratios are usually quite low, around 60%, to allow a suitable margin to pay costs and to account for any falls in the market value. This means that the super fund will need to have the remainder of the purchase price, plus costs available.</li>
<li>Each security property can only be used once – even if it grows significantly in value, its equity cannot be leveraged into further property. This means that each time a super fund buys a property, it must have the cash available to cover 40% of the purchase price, plus costs. If you consider that most people have less than $100,000 in superannuation, this means that their super fund can probably buy only one property. I consider the major strength of a property investing strategy is the ability to compound growth through leverage, and one property does very little for your financial future.</li>
</ul>
 
There are some benefits too:
<ul>
<li> As a trust structure, assets within this fund can pass more easily to beneficiaries. </li>
<li> If you own your own business you can borrow to buy your business’ real property (but not operating assets) using the super fund. </li>
<li> You will pay a maximum 10% capital gains tax upon eventual sale of a property, and if the property is sold during the pension phase there is no CGT. </li>
<li> You pay a maximum 15% income tax on rental income. </li>
<li> Other super fund assets are secure as the lender does not have recourse to the other assets. </li>
<li> Interest expenses may be claimed as tax deductions by the SMSF, which can potentially reduce your SMSF’s tax liability. </li>
</ul>
To set up and run your own SMSF, it is required by law for the SMSF to be a complying fund. You will need to consult with a financial adviser to check on the eligibility of your fund under the SIS Act. Severe penalties apply for non compliance under this Act. 
In addition, you have to have an articulated investment strategy in place. It must reflect the purpose and circum -stances of the fund and take into account: 
<ul>
<li>How to maximise its member returns, while taking into account the risk</li>
<li> Diversification of the long-term investment strategy; and </li>
<li> The ability of the fund to pay benefits as members retire, as well as other expenses incurred by the fund. </li>
</ul>
If a fund becomes non-complying, its income tax rate will go up to 45%, and it will also incur 45% tax on all of its assets, at the start of each year that it is in breach. This will cause the fund to have a tax bill it probably can’t pay, and this may cause the property to be sold.
Remember also that for many, property is a long-term hold, and eventual sale may not even feature, which will reduce some of the benefits that buying a property using a SMSF may bring in the short term. 
You can’t live in any property that your super fund buys and you can’t rent one from your super fund, so the idea of buying a holiday home for your own use is out. You also cannot transfer personal assets into a superannuation fund, and so there is no opportunity for your super fund to take ownership of any residential property you already own.
On balance, I think there is little benefit to be gained from the average person setting up a self managed superannuation fund for the principal objective of investing in property. The compliance procedures to ensure that your fund isn’t in breach of legislation can be costly and cumbersome, and these added costs can reduce some of the other benefits significantly.
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. This article is an excerpt from her latest book, Investing In the Right Property Now. For more information about the book, <a href="https://majorstreet.com.au/53/investing-in-the-right-proeprty-now/" title="Investing in the right property now" target="_blank">click here</a>. 
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Self-managed super is not always a good way to buy property: Margaret Lomas

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The Australian Bankers Association may claim that mortgage competition is alive and well in Australia, but figures released by APRA tell a different story.
According to the latest report, the major banks (Commonwealth Bank and subsidiary BankWest, Westpac and subsidiary St George, NAB and ANZ) grew their combined mortgage books by almost 27% over the past 12 months. The banking sector wrote 92.2% of all mortgages in June, according ABS lending figures with the major banks accounting for 88% of all bank mortgage lending.
The major banks advanced $67.8 billion in mortgages compared to $53.5 billion in the previous 12-month period.
In comparison the other domestic banks managed growth of around 20%, but in absolute numbers accounted for just $12.4 billion in mortgages written over the year compared to $10.38 billion in the previous 12-month period.
Over the March quarter, mortgage lending from this sector actually shrunk from $3.16 billion to $3.15 billion while the major banks recorded growth marginal growth of $133 million to $17.62 million.
The APRA figures also reveal the uneven playing field in the banking sector with the four major banks (Commonwealth Bank, Westpac, NAB and ANZ) operating at a profit margin of 34.4% for the year, with the other domestic banks managing 12.5%. 
Overall, the figures reveal the stagnant nature of the housing market over the March quarter bank. 
The banking sector advanced $20.09 billion in mortgage loans from January to March 2011, just a $215 million increase on the December 2010 quarter.
In comparison, banks grew their mortgage books by $790 million from October to December 2010, by $863 million from July to September and by $1.6 billion from April to June.
For the year the cumulative size of the banking sectors mortgage book grew by 8.2% to $1.196 trillion.
The slowing mortgage growth comes as competition among the major banks for mortgage customers intensifies following the government ban on mortgage exit fees.
The figures also reveal how heavily dependent banks are on mortgage lending for their income
According to the APRA figures, interest charged on mortgages accounted for more than half (55%) the total interest income (credit cards, other loans) earned by the banks over the year to March.
Mortgage lending brought in $77.3 billion in interest income for banks over the course of the year out of a total of just over $140 billion.</body></html>

Major banks dominate mortgage lending

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In my<a href="https://www.propertyobserver.com.au/residential/house-prices-will-be-55-higher-in-a-decade-christopher-joye/2011082551288" title="House prices will be 55% higher in a decade" target="_blank"> column last week</a>, I argued that it was reasonable to believe that over the next decade credit and house price growth would be driven by disposable incomes, all things being equal. 
My regular sparring partner Steve Keen <a href="https://www.propertyobserver.com.au/economy/china-our-one-saving-grace-as-australias-debt-driven-love-affair-with-house-prices-faces-the-chopping-block-steve-keen/2011082951327" title="Steve Keen" target="_blank">responded </a>with a detailed critique in which he rejected my arguments, and sought to re-cast his infamous <a href="https://www.propertyobserver.com.au/https://www.smh.com.au/articles/2008/10/20/1224351149788?page=fullpage">September 2008 claim</a> that “there's no point in paying a mortgage on an asset that is going to fall by 40% or so in the next few years.” 
Like most of Keen’s predictions, such as the “best-case scenario” during the GFC being 11% unemployment and a recession “more severe than 1990 and lasting 1.5 times as long” (unemployment peaked at 5.8% while there was no recession), his 2008 projection proved way wide of the mark. 
For the record, Australian dwelling prices are today 13.3% higher than when Keen put his reputation on the chopping block, and 89% higher than the level at which Keen expected them to be. 
Keen now tells us that he thinks Australian house prices will plummet by 40% over the next decade (or 13 years since his original declaration). That actually represents a forecast downgrade given a two-fifths decline in prices from today’s level is equivalent to a 32% fall in September 2008 terms. 
Keen further dismisses my proposition that the growth in Australian housing costs over the last 20 to 30 years can be explained by simple reference to incomes and interest rates. 
Instead, he points to a 50% “correlation” between a much more nebulous conception, which he calls the “mortgage accelerator” (the rate at which housing credit accelerates or decelerates), and changes in house prices over time. 
Setting aside the fact that Keen offers no evidence of any causality between these two variables, and rises in house prices could just as easily cause an acceleration in credit (rather than the other way around), Keen’s “correlation” still fails to explain half of the times-series change in Australian dwelling values. 
Indeed, when I look at the relationship between Keen’s “mortgage accelerator” variable, which he supplied to me, and a more precisely-measured estimate of changes in dwelling values – RP Data-Rismark’s Hedonic Index – I get a much lower 12% correlation. 
More importantly for the Keen critique, I will show that by indexing up median Australian dwelling prices by per capita disposable incomes and changes in borrowing capacity (as determined by mortgage rates) one can account for about 90% of the rise in Australian housing costs over the last two and a half decades. 
If we accept that the big structural changes that took place over the last 20 to 30 years are behind us, we can then project with confidence that future dwelling prices will be determined by household purchasing power, ceteris paribus. 
The structural changes I am talking about here include the circa 40% plus reduction in variable mortgage rates from the 12.6% average that prevailed between 1980 and 1995 to the 7.3% level that has held since (see the grey line in the first chart below). 
This was brought about by the RBA’s adoption of a so-called “inflation-targeting” approach to monetary policy in the early 1990s, which has helped keep inflation, on average, within the central bank’s target 2% to 3% band and allowed nominal interest rates to remain lower than had previously been the case. (There was a cap on lending rates in Australia until the early 1980s, which makes like-for-like comparisons prior to this period difficult.) 
Consigning double-digit inflation and commensurately high mortgage rates to history has in turn empowered households and businesses to undertake a once-off upward adjustment to their borrowing capacity (or leverage) in recognition of the 40% reduction in the cost of debt. 
In the chart below, this can be seen by the rise in the RBA’s household debt-to-disposable income ratio from the early 1990s onwards, which coincided with the time that the RBA started using its 2% to 3% inflation target (refer to the red and blue lines). Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust311.gif"><img src="/images/stories/joyeaugust311thumb.gif"></a>
You can see that in 2005-06 (i.e., several years prior to the GFC) Australia’s household debt-to-disposable income ratio started to flat-line. 
The RBA’s (and my) central case is that this will continue: that is, the “new normal” will be one where credit growth is bounded by incomes. This brings me to one of Keen’s factual errors. 
In his article, Keen asserts, “My data comes from the RBA; Chris’s comparable figure clearly uses different data to conclude that ‘Australia’s household debt-to-disposable income ratio has, in fact, flat-lined since a number of years prior to the GFC’, since RBA data shows it rising from 115% to 135% from 2005 until now.” 
In private discussions with Keen I have confirmed that his statement is, in fact, wrong. That is, I was using the correct RBA ratios, and he has arrived at very different (and presumably specious) numbers through his own independent calculations. 
According to the RBA’s official measure, <country-region><place>Australia</place></country-region>’s household debt-to-disposable income ratio hit 155% in 2006, which is where it remains today. It has not, as Keen maintains, expanded from 115% to 135% over this period.  The striking deceleration in Australian housing credit growth since its peak in late 2004 can be vividly seen in the next chart (refer to the downward-sloping black line).
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust312.gif"><img src="/images/stories/joyeaugust312thumb.gif"></a>
A third major structural change I highlighted was the extra growth in disposable household incomes over the last couple of decades resulting from the emergence of multi-income families (and the rise in the female participation rate) and the decline in Australia’s “non-inflationary” unemployment rate, which is thought to be around 5% today (see the blue and red lines in the chart below).
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust313.gif"><img src="/images/stories/joyeaugust313thumb.gif"></a>
If, as discussed, these structural shifts have run their course, household earnings will be the main driver of future dwelling price changes. This in turn implies a long-term house price growth rate of about 4% to 5% per annum, assuming normalised productivity growth and more investments in the supply-side (the absence of which could produce higher growth). This is notably less than 7.8% per annum pace that has applied since the mid-1980s. 
We tested this position by surveying the top 21 market economists, including the major bulls and bears, on their own outlook. As it happened, the average and median of the forecasts for Australian house price growth over the next 10 years was 4.4% and 5% per annum, respectively. 
 
<hr class="system-pagebreak">
  
Another way to resolve this debate is by working out what proportion of Australian house price growth can be explained by incomes and interest rates.  To address this question, Rismark’s research group took the median Australian dwelling price in June 1985 and indexed it up by: 
(1) the change ABS disposable incomes per household before interest repayments; and 
(2) the change in household borrowing capacity that resulted from movements in mortgage rates (assuming a fixed, 80% loan-to-value ratio and a constant disposable income-to-mortgage repayments ratio).
This “income- and interest rate-adjusted” median dwelling price can then be compared to actual median prices over time. The next chart presents the results of the analysis.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust314.gif"><img src="/images/stories/joyeaugust314thumb.gif"></a>
Observe how the confluence of rising household incomes and declining mortgage rates over the 1990s meant that “purchasing power-adjusted” median house prices (black line) rose to be well above actual median prices (red line) for the entirety of the period between 1993 and 2003. 
It was only in the years after 2003 that the median price implied by changes in purchasing power and actual prices started to diverge, a trend that was brought to a halt by the 2007-08 crisis. 
Today we find that around 88% of the change in Australian housing costs since 1985 can be explained by mortgage rates and household incomes. 
Here it should be noted that these are two “demand-side” variables, and asset prices are ultimately determined by the intersection between demand and supply. 
Demand- and supply-side factors not accounted for in this work include shifts in household preferences – there is, for example, evidence that families are willing to spend more of their incomes on buying housing services because it is a “superior good” – and, of course, the availability of housing assets (i.e., supply) to satisfy demand-side needs. The latter refers to both the quantum of homes listed for sale (i.e., effective supply) and the number of dwelling required to practically accommodate the resident population (underlying supply). 
ANZ’s economists recently completed a similar exercise using capital city median prices (in contrast to our all regions price) and a slightly different treatment of mortgage rates. In particular, ANZ “smoothed out” movements in mortgage rates over time to capture the underlying structural change. 
ANZ’s results are nevertheless very similar. They find that the median house prices imputed by increases in purchasing power (via incomes and interest rates) sat well above transacted prices between 1993 and 2003. As at 2011, ANZ’s analysis could explain 93% of the total change in dwelling prices since 1986 (see the next chart below).
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust315.gif"><img src="/images/stories/joyeaugust315thumb.gif"></a>
While the powerful long-run relationship between house prices and household purchasing power will continue to hold, there is inevitably significant year-on-year variability. 
In 2007, Australian capital city dwelling prices rose by 13.6%. In 2008 they fell by 2.5%. In 2009 and 2010 they appreciated again by 12.1% and 5.3%, respectively. Yet if we look over the span of the last seven to eight years, we find that the average growth in housing costs and incomes has been nearly identical. 
This year dwelling prices look like they will be down a bit, unless the RBA starts cutting rates, as Westpac, Goldman Sachs and Deutsche Bank expect they will. 
In addition to the fact that in November 2010 the RBA boosted rates to a level above their historical average, the principal driver of the soft conditions in 2011 has been the exceedingly “hawkish” Australian consumer. 
In February Australians expected, on average, more than three further rate hikes (i.e., an 8.5%-plus mortgage rate), according to Westpac-Melbourne Institute analysis. 
Even in the midst of the recent financial market turbulence, consumers were still banking on two more rate hikes when surveyed in August. A remarkable 29% of all respondents thought there would be more than four future hikes. 
When Australians eventually buy into the idea that rates are not heading higher, housing market conditions will likely improve.
Christopher Joye is a leading financial economist and works with <a href="https://www.rismark.com.au/" title="Rismark International" target="_blank">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice.
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Housing prices aren't for the chopping block, despite the Steve Keen prophecy: Christopher Joye

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Capital city home values fell 0.6% in July, with Canberra, Darwin and Sydney bucking what RP Data-Rismark calls the softening price trend.
It takes the decline over the first seven months of 2011 in Australian capital city home values to 3.4% to a $455,000 median dwelling price, according to RP Data research director Tim Lawless.
“But this national result conceals wide divergences across the individual cities,” Lawless notes.
Australia’s housing market could be at a crucial inflexion point, according to Rismark International economist Christopher Joye.
“If rates do remain on hold, or begin to fall, we would expect to see Australia’s housing market find a base and begin to generate capital gains again.
“If the RBA has really come to the end of its tightening cycle – which we would find surprising given the high core inflation revealed over the last six months – 2011-2012 will likely be judged one of the best buying windows seen in quite some time.
“The turning point will arrive when otherwise hawkish Australian consumers accept the notion that rates are not going to inexorably increase,” Joye says.
“The financial markets are pricing in five rate cuts while leading economists from Goldman Sachs, Deutsche Bank, Westpac and Macquarie Bank all believe that the RBA’s next move will be down.
“As the most interest rate-sensitive sector of the economy, the housing market will be the chief beneficiary of any decision by the RBA to reduce the cost of debt,” Joye says.
“Indeed, borrowers are already benefiting from de facto rate cuts. The inversion in the yield curve has seen many banks start to slash the cost of fixed-rate home loans.
“Lenders like Members Equity Bank are offering three-year, fixed-rate loans of just 6.35%, which is well below the standard variable rate benchmark of 7.8%.
“And while the rhetoric coming out of the central bank of late has been conflicting, UBS believes that the governor’s testimony to Parliament last week shifted the RBA to a ‘neutral’ stance,” Joye says.
The July RP Data-Rismark report says dwelling values in Canberra had risen by 1.8% during 2011, with much of its boost in July.
Sydney gained 0.1%  to $500,000 in July, but is down 1% over the past seven months.
Melbourne homes led the July downturn with a 1.4% fall to $475,000, taking the home price fall in Melbourne to 5.3% in the past seven months.
The report notes that Melbourne home prices had risen by a stunning 29% over 2009 and 2010.
“After years of being the perennial laggard, Sydney housing now looks to be a relatively resilient store of wealth,” Joye notes.
“Over the last 11 years, Sydney home values increased by a modest 5.6% per annum compared to an Australian capital city average of 7.8% per annum.
“Sydney housing has massively underperformed Perth (10.4% per annum), Brisbane (9.7%) and Melbourne (8.9%) housing over this period,” Joye adds.
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Prices ease in softening market with rebound in sight: RP Data-Rismark

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Industrial property zones in Sydney, Newcastle, Wollongong and the Hunter region stand to benefit from infrastructure projects in NSW due to be completed over the next nine years, according to analysis by CBRE. 
News of this boost to industrial property zones in NSW follows the state government’s decision to offer bonds to raise capital specifically for infrastructure projects. 
Although transport accounts for 31% of Australia’s economy, NSW had only an 18% share of investment in transport infrastructure projects, especially those influential to industrial property between 2000 and 2010.
“Two things stand out in the transport infrastructure proposals on our list for New South Wales to 2020,” says CBRE executive director of global research and consulting Kevin Stanley. 
“One is that an increasing share of investment will be going into rail or rail-related projects, as opposed to roads. 
“The major project influencing this trend is an effort to carve out a dedicated rail freight line from the expanded Port Botany facility through the southern suburbs of Sydney, to link to new inland freight terminals at Enfield and Moorebank.”
<img src="/images/stories/industrialaugust31.gif">
The five key future projects identified by CBRE that are likely to influence industrial property are: 
<ul>
<li>
Southern Sydney Freight Line (SSFL) – a proposal for a new 30 km rail in an existing 36km rail corridor between Macarthur and Sefton in the Southern suburbs of Sydney allowing passenger and freight services to operate independently. It is likely to stimulate the construction of warehousing in and around the new freight terminal facilities at Enfield and later, Moorebank, as well as cause a rise in industrial land values in and around these locations.</li>
<li>
Intermodal Logistics Centre - currently being constructed at Enfield, Sydney ,the terminal will consist of five warehouses totaling 55,000 sq m with a light industrial and commercial area consisting of 40,000 sq m. The terminal will be fully operational in late 2013. </li>
<li>
The Hunter Expressway – This is the largest road project currently underway in New South Wales, with a project cost of $1.7 billion.  It will provide a more direct and efficient route for freight movements between the Upper Hunter and the Port of Newcastle and will stimulate the long-term industrial development potential of the Hunter Economic Zone at Kurri Kurri and more generally in Greater Newcastle.</li>
<li>
The Erskine Park Link Road –The $80m project will provide a 3.1 km four lane divided road between Lenore Lane, Penrith and Old Wallgrove Road, Blacktown.  By providing high quality access between Erskine Park and Eastern Creek it will unlock hundreds of hectares of new employment lands for industrial development and use within the Western Sydney Employment Area.</li>
<li>
The Port Kembla Outer Harbour Development –now under construction, it will provide for future stages of port development over the next 25-30 years. Regional-based port expansions are now underway at Newcastle and Wollongong and in Geelong in Victoria.  Regional port expansion can also assist in diversifying regional economies and providing a boost to downstream supply chain real estate facilities in non-metropolitan areas.  Stage 1A of the Port Kembla project is due for completion in mid-2012. </li>
</ul>
Charles says the focus on rail or rail-related projects in Sydney will reinforce the importance of the prime industrial areas in the corridor which stretches from Port Botany west along the M5 Motorway, and picking up those areas in the South West and the Outer West regions along the M7 transport corridor.” 
He says the other theme apparent in NSW is the amount of infrastructure funding dedicated to regions outside of Sydney. 
“Newcastle is the major beneficiary here, which supports ongoing development of the coal industry in the Hunter Region and provides greater potential to downstream industrial property development to support this industry,” he says. 
“The expansion of Port Kembla, already underway, will also act to relieve pressure on the Port of Botany over the long run as well as support the development of the industrial sector in the Wollongong region.”
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