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.

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<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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Deputy RBA governor Ric Battellino says banks raising mortgage rates above the last official November rate increase have contributed to the current savings culture.
During a speech to investment managers in Sydney, he also highlighted next month’s inflation data as key to future rate decisions.
Taking a retrospective look at the economy over the past year, Battelino says the banks’ response following the November rate rise with “substantially larger increases – around 40 basis points” changed consumer behaviour.
“The size of this increase, and the controversy it created, seemed to have a noticeable impact on household behaviour. Consumer confidence fell, though to levels that were still above average,” he says.
“Coincidentally, there was a renewed step up in financial market volatility, stemming from the widening government debt problems in Europe; this probably also contributed to households becoming less confident,” he says.
Battellino said natural disasters had had the biggest impact on the domestic economy at the start of the year.
“As we moved into the early months of 2011, domestic economic activity was severely disrupted by floods and cyclones. The two main economic impacts were the sharp fall in coal production and the destruction of the Queensland banana crop.
“The former meant that GDP was likely to fall in the March quarter, before recovering in the June and September quarters, while the latter meant that CPI inflation would spike higher over the year ahead due to a sharp, yet temporary, increase in banana prices.”
Domestic concerns shifted to global worries by the middle of the year.
“At the time of the July RBA monetary policy meeting, global economic growth had eased, and the downside risks stemming from the European debt problems looked more significant. In Australia, households remained cautious and the housing market was soft.
“Also, it now appeared that the slow recovery in coal production would mean that earlier GDP forecasts for 2011 would not be met. Nonetheless, the medium-term outlook for the Australian economy remained strong. In these circumstances, the board continued to hold rates steady, noting that the CPI outcome to be published in the next month would provide an update on inflation,” he says.
Decisions about interest rate policy through the remainder of the year, he said, would be a balance of these various forces.
“This challenge remains. In fact, with the recent volatility in financial markets adding to the uncertainty about the economic outlook, it does not look like the challenge will become any easier over the months ahead.”
Battelino summarised the three major trends for the year to date as:
<ul>
<li>First, the effects of the mining boom have turned out to be stronger than expected a year ago. The terms of trade are noticeably higher and forecasts for national income and mining investment have been revised up over the year.</li>
<li>Second, despite this strength in the mining sector, overall economic growth is turning out to be weaker. The forecasts published earlier this month reduced growth in GDP for 2011 to 3¼%, versus 3¾% expected last November. </li>
<li>Third, inflation outcomes for 2011 are likely to turn out to be higher than thought last November, both in headline and underlying terms. Inflation forecasts for the longer term have risen to be a little above the top end of the target range.</li>
</ul>
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Banks and bananas to blame for savings culture: RBA

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Rising interest rates, flat house price growth and an insufficient transport system will continue to weigh on traditional house building activity, according to the Mirvac Group.
“Demand was likely to remain biased towards higher-density living,” its latest annual report has forecast.
It was particularly the case in NSW, the home builder suggests. Mirvac has $980 million worth of exchanged residential pre-sales across three states extending to 2014. Some 40% of its 2011 buyers were upgraders and empty nesters. Investors constituted 30% as did first home buyers.
Mirvac’s recent settlements were at a $1.75 million average apartment price, its house settlements average $689,000 and its land settelements averaged $245,000.
Its report noted that NSW dwelling construction has failed to keep pace with growth in population which has contributed to both low dwelling vacancy rates and solid rental growth.
“Reflecting poor housing affordability, long commuting times to work and a changing ethnic mix, the improvement in dwelling approvals has been dominated by units and apartments, a trend which looks set to continue,” it notes.
But Mirvac suggests even though there has been an improvement in dwelling construction, it was likely to be insufficient to keep pace with demand, further increasing the NSW dwelling shortfall.
In Victoria continuing land release, state government grants and robust population growth, had delivered strong growth in residential construction.
“More recently, the strength of dwelling construction has been driven by medium-density dwellings.
“Even though economic conditions in the state remain favourable, more moderate population growth points to a slower pace of construction activity in the future,” Mirvac expects.
The Queensland residential property market had been adversely impacted by a combination of weaker interstate migration, the rising A$, a slowing in net overseas migration, soft economic conditions and natural disasters.
“The near term prospects remain uninspiring but, longer term, the significant investment by the resource companies, in tandem with a pick-up in population growth, should lead to greater impetus in the state economy and the residential housing market.”
Mirvac suggests after significant price increases during the resources boom, house prices in Perth had exhibited the greatest weakness.
“Additionally, the accompanying sharp slowdown in population growth reduced dwelling demand.
“With the second resources investment boom starting to unfold this should herald stronger dwelling demand and, with it, a firming of property prices.”
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jchancellor-FAypfDUnLy

House building activity to remain subdued: Mirvac 

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Mirvac’s retail portfolio has defied the current retailing gloom by delivering solid growth, with food majors Coles and Woolies accounting for a quarter of rental income.
Net income from retail assets increased by 4.3% to $125.9 million for the year ended June 30, 2011 with occupancy increasing from 97.9% to 99%.
The annual results reveal that more than a third (37%) of retail rent comes from food retailers with its top two tenants by income being Coles (12.4%) and Woolworths (11.6%). A distant third is the Reject Shop, bringing in 1.2% of annual rent.
Fashion stores bring in 19% of retail rent.
Occupancy costs remain “sustainable” at 13.2%.
The developer says its retail portfolio is well positioned with an 84.7% weighting to retail centres driven by “non-discretionary spending”.
Retail assets account for about 30% of Mirvac $5.9 billion property portfolio with the developer saying it will keep its weighting at this level going into 2012.
More than three-quarters (77.6%) of Mirvac’s retail assets are sub-regional shopping centres including the Taree City Centre, Ballina  Central and Kawana Shoppingworld on the Sunshine Coast.
CBD retail makes up just under 10% of the portfolio, with the North Sydney Greenwood Plaza and Melbourne’s Moonee Ponds Central the most notable assets in this class.
Mirvac expects the retail sector to remain subdued going into 2012.
“The outlook for the retail sector remains mixed. The possibility of higher interest rates and a recent softening in employment growth, together with an increase in the saving ratio has constrained consumer spending,” the annual report says.
“The saving ratio will, at some stage, stop increasing, while personal income should continue to grow; all of which should stimulate spending. Against this backdrop, there is expected to be little change in the average vacancy rate in the retail sector over the next six months.”
Overall, Mirvac delivered annual operating net profit after tax up 30.2% to $358.5 million.
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Coles and Woolies help Mirvac deliver 30% profit increase

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There is some good news for struggling leisure operators in Queensland with a rosier outlook forecast for 2012, according to the Deloitte third-quarter Hotel Market Outlook.
The report confirms the two-speed state of the hotel sector – CBD business hotels strong, regional leisure hotels struggling – revealed in recent ABS accommodation statistics and other hotel reports.
However, year-end results for the Gold Coast market have been revised upward following a stable June quarter.
Deloitte expects the Gold Coast occupancy rate to rise to 67%, down only 1% from 2010, with average room rates set to reach $135, up 2% from 2010. Revenue per room (RevPAR) is anticipated to reach $91, increasing nearly 1% on 2010.
By 2012, occupancy levels are likely to increase by 2% to 69%, average room rates up by 4% to $141 and RevPAR rates of $98, representing a growth of 7.7%.
“Further increases in forecast results have been made for 2012 also due to anticipated improvements in domestic and international travel to the region,” the report says.
<img src="/images/stories/fnq-hotels.gif">
Forecasts have also been revised upwards for Tropical North Queensland following greater than anticipated demand and the diminishing impact of natural disasters. 
For 2012, the occupancy rate is expected to increase by 3% to 59%, the average room rates is forecast to increase by 1% to $119 and RevPAR is set to reach $70, an increase of 6%.
<img src="/images/stories/gchotsl.gif">
“Leisure destinations are fighting to maintain occupancy levels though, often at the expense of growth in room rates.  There is increased upside however, with the longer term outlook for the leisure segment improving over our previous forecast,” says Deloitte’s national leader for tourism, hospitality and leisure, Rutger Smits. 
The report highlights the impact of the Australian dollar quoting the Tourism Forecasting Committee, which recorded a negative net outflow of visitors of more than 1.5 million in May this year
 
“Australians are now holidaying in the rest of the world instead of at home, while foreigners are being deterred by the sheer strength of the Australian dollar,” the report says. 
City-based business hotels continue to perform at record levels due to rising business demand with Sydney leading the pack, followed by Melbourne.
Sydney hotel occupancies are expected to rise from a record 86.4% for the 12 months to June 2011 to 87.4% by 2012. Deloitte is forecasting 12% room rate growth with RevPAR for year-end 2012 projected at $187, down from $193 in previous projections.
Melbourne occupancies stand at 80.9% room occupancy for the 12 months to June 2011 with Deloitte forecasting an occupancy rate of 81.4% room, a room rate of $196, with RevPAR growing by 9.5% to $159.
More growth is forecast for the rebounding Brisbane market in 2012 with room occupancies reaching 82.7% by the end of 2012.
Perth’s reliance on business travel and reduced demand from leisure visitors, means forward estimates have been revised downwards though are still very healthy. RevPAR forecasts for 2012 have been reduced from 23% to 20% due to slower occupancy growth, with rate forecasts maintaining at $206 and occupancy forecasts down from 89% to 87%.
The RevPAR forecast for 2011 remains unchanged at $93 and 4.9% growth over 2010.  The report has increased the occupancy outlook from 63.5% to 64.3% finishing the year at $153, a 5.6% improvement over 2010.
The RevPAR forecast for 2012 has been revised downward slightly from $100 to $99, with slightly higher occupancies and lower room rates.
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Business hotels performing well while leisure sector struggles: Deloitte

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As we look back on 2011, Property Observer is republishing some of our most noteworthy observations of the year.
 
There is a serious myth doing the rounds that the retirement of Australia’s “baby boomers” – i.e., those born between 1946 and 1961 – will trigger a massive new wave of housing supply that will swamp incoming demand and depress prices. 
This was exemplified in an <a target="_blank" title="Baby boomers: Sell now or forever hold your family home" href="https://www.propertyobserver.com.au/residential/baby-boomers-sell-now-or-forever-hold-your-family-home/2011081651189">article last week</a> by the commercial property advocate Chris Lang. Without resorting to statistical evidence, Lang likely terrified many retirees with his sensational claim that if they didn’t get rid of their homes within the next 12 months they would have to wait until 2025: 
“Baby Boomers are facing an enormous challenge. And the sad fact is that they are probably not even aware of the problem. You see, if they haven’t sold their traditional inner-suburban homes before 2012 they need to be prepared to hold onto them until 2025, because there simply won’t be a market for that type of property before then.” 
Based on the best available government forecasts, Lang’s statements are both factually flawed and misleading. Indeed, the opposite is very likely true: over the next 15 years there will be a much larger absolute increase in the number of non-retirees (aged under 65) in Australia relative to those aged 65 years and over. 
The ABS and BIS Shrapnel project that we will have a net increase of 3.7 million new people under 65, compared with 2 million retirees. This will result in 2.3 million new households added to Australia’s conurbations, which will need to buy or rent a home in which to live. 
As I will show below, whether baby boomers decide to downsize or not will have no impact on this tsunami of population growth-driven housing demand. 
A proper understanding of these issues requires one to dive into the data. And the starting point for any such analysis is, of course, population projections. Both the ABS and Treasury produce comprehensive estimates of Australia’s population change out to 2050. 
One interesting characteristic of the ABS’s analysis is that they have consistently underestimated Australia’s population growth and have, as a consequence, been forced to repeatedly revise up their projections (see the first table below, click to enlarge).
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust231.gif"><img src="/images/stories/joyeaugust231thumb.gif"></a>
In 2003, the ABS projected that there would be 26.4 million people living in <place><country-region>Australia</country-region></place> by the end of 2050 (today there are 22.7 million residents). 
In 2005, it upgraded this base-case projection to 28.2 million folks. And then in 2008 it revised it again to 34.2 million. That is, a 30% increase over the 2003 numbers. 
The Treasury then came along and threw a further spanner in the population works with its 2010 Intergenerational Report. Harnessing seemingly conservative assumptions, the Treasury concluded that we would, in fact, have 35.9 million residents living in Australia by 2050 (a stunning 36% increase over the ABS’s 2003 estimates, as illustrated in the next chart below).
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust232.gif"><img src="/images/stories/joyeaugust232thumb.gif"></a>
The bizarre thing about the Treasury analysis was that it presumed a very substantial slowdown in the pace of net overseas migration from our 249,000 per annum rate over recent years to just 180,000 per annum between 2012-2050. This is the reverse of what one would reasonably expect given Australia’s ageing population, which, Treasury forecasts, ultimately creates financial mayhem for the nation. 
The Intergenerational Report tells us that there are currently five people of working age for every retiree. By 2050 Treasury thinks this will decline to 2.7 workers for every aged person.  At the same time that an ageing population is driving up the government’s health and pension costs, the number of workers in the economy paying taxes will shrink. This results in what Treasury euphemistically calls a “fiscal gap” from 2030 onwards: that is, government spending starts to exceed government revenues, which precipitates perpetual deficits and a sharp rise in government debt (see next two charts).
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust233.gif"><img src="/images/stories/joyeaugust233thumb.gif"></a>
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust234.gif"><img src="/images/stories/joyeaugust234thumb.gif"></a>
 
<hr class="system-pagebreak">
 
As Treasury notes, one partial solution to this problem is to import more skilled labour. Aside from being working members of the community, migrants tend to be younger than the existing residents. The ABS estimates that 85% of migrants are under the age of 40, compared with 55% for the resident population. 
One objection to immigration is the allegation that <country-region><place>Australia</place></country-region> is an intrinsically xenophobic country. While this is refuted by cross-sectional studies of international attitudes to immigration (where <place><country-region>Australia</country-region></place> ranks as one of the more open-minded nations), it does not fit with the cultural facts either. 
More than one in four (27%) of all current Australians were born overseas. Nearly one in two of us (48%) have at least one parent born in another land. We have, therefore, an exceptionally multi-cultural society. Much like the <country-region><place>United States</place></country-region>, we are an immigrant nation.
Notwithstanding our economic needs for more productive workers, Treasury assumes that our annual intake between 2012 and 2050 is about 25% lower than recent averages (see next chart). I don’t think there is any good reason for this, and I strongly suspect that it was motivated to avoid punching out a 2050 population number that started with a “4”. In view of public concerns about infrastructure, amenities and congestion generally, a government forecast that our population is going to double within four decades would be politically tricky. Much better to simply allow the numbers to creep up on us, as they have done in the past.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust235.gif"><img src="/images/stories/joyeaugust235thumbs.gif"></a>
So how many new households will Australia have over the next 15 years, and what does this mean for the number of new dwellings that will have to be built to accommodate them? 
BIS Shrapnel recently addressed this question. In recognition of the repeated revisions to Australia’s population projections, and the latest immigration trends, BIS asked the ABS to combine their 2008 base-case scenario (known as ‘Series B’) with their higher-growth ‘Series A’ option (and some other assumptions), to create an up-to-date benchmark for Australia’s population change. 
Based on this analysis, BIS concludes that Australia’s population will likely increase by 25% to around 28.3 million people by 2026. That means there will be 5.7 million new Australians within 15 years. About 45% of these folks arrive organically via (net) births, while 55% will be immigrants. 
BIS projects that this translates to about 2.3 million new “households”, with, on average, 2.5 people per household, by 2026. 
Now before I address the issue of the demand for homes relative to any available supply, it is instructive to parse this population data more thoroughly. 
It turns out that Australia actually has three population bubbles emerging over the next 15 years: the current baby boom; the children of the “boomers”; and the boomers themselves. 
As the chart below shows, there will be 2.6 million new workers aged between 20 and 64 added to the population by 2026 that will need to buy or rent homes. In contrast, the number of retirees will only increase by 2 million. 
If we then look at the total rise in the non-retiree share of Australia’s population, the figure increases to 3.7 million people (i.e., between 0 and 64 years) who will require homes.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust236.gif"><img src="/images/stories/joyeaugust236thumb.gif"></a>
If we move from individuals to household units, BIS forecast that the number of working “households” aged 20-64 years will increase by 1.2 million compared with a 1.1 million increase in non-working retiree households over the next 15 years. 
 
<hr class="system-pagebreak">
 
A key take-away from this analysis is that the overall, 2.3 million increase in the number of Australian households has to be accommodated. Irrespective of whether they are renters or home owners, we will have to build dwellings to house them. 
Taking historical data on demolitions and unoccupied dwellings (e.g., holiday homes, etc), BIS conclude that around three million new homes will have to be added to the current dwelling stock over the next 15 years. 
This is a Herculean construction challenge. It would represent a 33% annual increase in the number of new homes that have been built on average over the last 15 years. BIS does not think we will get there, and forecasts a <personname>sma</personname>ller 28% annual rise in housing supply, which results in a cumulative dwelling stock deficiency of about 240,000 homes by 2026 (see next chart).
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust237.gif"><img src="/images/stories/joyeaugust237thumb.gif"></a>
Whether retirees choose to downsize or not will have no impact on the fact that we will be short circa 3 million homes. If some retirees choose to downsize, that will be good news: it means that the 1.2 million new “working” households will have an opportunity to buy larger homes in established suburbs that are relatively close to their labour markets. But we will still need to build new homes for those retirees selling their properties. That is, the overall demand-supply equation is unchanged. 
Based on the latest Productivity Commission report into aged care, the balance of risks seems to lean in favour of many retirees staying put. The ordinarily conservative PC have recommended that the Commonwealth fund a subsidised “equity release” (or “reverse mortgage”) program that would enable retirees to cash out the equity built up in their homes without selling them. 
Under the PC’s proposal, the cost of this loan would accrue at just 2.5% per annum (or the inflation rate) until it capitalised up to some maximum level. At this point, the government would stop charging interest (as happens with standard reverse mortgages), and the retiree would not have to repay the loan until they died or sold the property. 
There would likely be huge demand for such a cheap and effective product. We estimate that if all retirees who own a home today took one of these products out, the government would liberate about $150 billion in funding to help aged care. And since the government would have an asset on its balance-sheet – i.e., the loans – there would not, in principle, be any increase in net government debt. 
Assuming that many retirees want to remain in close proximity to the suburbs in which they have spent most of their lives, the end game is going to be higher city densities. 
In 1921, only 42% of Australians lived in metropolitan areas. Today that figure is 64%, which is projected by the ABS to rise further over the next decade and a half. Increasing densities in existing cities provides for powerful “network effects” and scale economies, which is why this has been the dominant urbanisation trend in recent times. 
Denser cities are also more environmentally friendly with a lower carbon footprint compared with dispersing households across the country, and having to transport them long distances to and from labour markets. 
Contrary to some incorrect claims, Australia’s housing problem is going to be one of too much demand, not excess supply.
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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chrisjoye-JYhJsTrNRC

Three population bubbles will cause housing demand, not supply, to skyrocket

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The market for industrial property in Melbourne has remained strong over the past 12 months – enjoying a solid demand from tenants, owner occupiers and potential investors alike.
According to Savills Australia, leasing activity for the twelve months to June 30 this year was up by more than 7% on the five-year average for Melbourne.
The dominant tenants clearly came from the retail and logistics sectors — with more than 740,000 square metres being leased. And of that amount, just over 200,000 square metres was by way of pre-commitment.
And according to recent research by Colliers International, the current level of rentals and capital values showed increases of between 5% and 18% across the metropolitan area during the last financial year.
Each of the suburban markets is poised to firm further by the end of the year due to a shortage in supply of quality stock and very little development activity currently occurring.
As such, this will only serve to put more upward pressure upon rentals and also cause a marked decrease in any incentives being offered.
Bottom Line: Generally, industrial property will offer you a better return than you'll receive from either retail or offices. But you need to remember that, unlike offices, industrial property’s ongoing fortunes are tied more to the retail sector than the general economy.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Industrial property generally a stable investment

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Retail property had been caught in the perfect storm, according to BIS Shrapnel, but the mining boom might soon help loosen the purse strings of consumers.
"Not only have economic factors and consumer sentiment resulted in the slowest rate of turnover growth in decades, but what little spending is occurring is increasingly online and overseas," the report concludes.
But it still forecast solid returns despite the current turbulence – barring a collapse in the Australian dollar or a much faster rate of growth of online shopping.
“There is a lot of truth in the negative headlines, but that doesn’t mean it will stay that way,” says BIS Shrapnel senior project manager Maria Lee.
“The main problem at present is sentiment.”
It was the poor sentiment that has driven the household savings rate up to a 24-year high, its Retail Property Market Forecasts and Strategies 2011–2021 report says.
“As long as the savings rate is on the rise, consumer spending won’t keep pace with household income growth.
“However, at some stage the savings rate will level off and allow the pace of consumer spending and retail turnover growth to pick up.
“When exactly this will occur is difficult to pinpoint.
“Given the negative news constantly being created around the world, consumer spending could well remain weak for some months.
“But as the mining boom gains traction, underpinning firmer economic growth and thereby boosting the household capacity to spend, consumers are expected to loosen the purse strings.
“That is the key to stronger growth in retail turnover, and we expect it will become apparent through 2012,” Lee says.
BIS Shrapnel forecasts long-term retail turnover growth to average over 3% a year in real terms.
“This represents a more than doubling from the pace of growth recorded in 2010–11, though it does not mark a return to the glory days of retail.”
Average retail growth turnover over the decade to 2007 reached 4.4% a year during the debt-fuelled spending binge prior to the GFC.
BIS Shrapnel’s report warns that there is a big difference between aggregate growth in retail turnover and the turnover flowing through regional and sub-regional shopping centres, and then it’s a further step from shopping centre turnover growth to centre income growth.
“There are many dilutionary influences along the way, most notably internet shopping, growth in retail floorspace, high occupancy costs, over-rented tenancies, the requirement for leasing incentives and – though not immediately – pressure on retailers’ profits and capacity to pay rents from a potential slump in the Australian dollar.”
“What’s saving retailers at the moment – though they may not feel they are being saved – is the strength of the Australian dollar.
“This has enabled them to engage in competitive price discounting while retaining what are still historically high profit margins,” Lee says.
“Compared to previous economic downturns, there have been remarkably few retail failures post-GFC.”
“The key difference between the 1980s, the 1990s and now is that average profit margins are around twice as high.”
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BIS Shrapnel forecasts 3% retail turnover growth, despite gloomy headlines

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With property values falling across most parts of the country and inflation climbing we look at the impact of inflation on property values and how the capital city property markets are performing in inflation adjusted terms. 
Inflation, as measured by the Consumer Price Index (CPI) has been heading higher over recent months. During the three months to June 2011, headline inflation was recorded at 0.9% in comparison, property values across the combined capital cities fell by -1.5%. The net result of the 0.9% inflation and the -1.5% fall in property values is that in 'real terms' property values fell by 2.4% over the quarter across the combined capital cities.
The fall in real terms will most likely be welcomed by those looking to purchase property. As property values ease and the cost of other goods and services increase, property becomes relatively more affordable. Now a couple of quarters of falling values is unlikely to result in a substantial improvement in affordability however, if property values continue to grow at a rate below the growth in inflation (as we anticipate) affordability will continue to improve. 
Despite the recent falls in property values, for much of the last fifteen years growth in capital city home values has well and truly outpaced the rate of inflation. This has resulted in properties becoming relatively more expensive. Now there are some reasons for the surge in property values: lower mortgage rates, greater availability of credit and a rise in dual income households to name a few. 
The Australian Bureau of Statistics (ABS) also publishes inflation figures at the capital city level, utilising these figures we can adjust individual capital city property value growth based on inflation within that city on a quarterly basis. 
At an individual capital city level, property values have grown by as much as 166.2% over the past fifteen years in Melbourne and by as little as 87.5% in Sydney. Note that Darwin housing data is not available back 15 years. 
What is probably the most interesting take-away from the data is looking at how much capital city home values have fallen from their peak in non-adjusted terms as opposed to adjusted terms. 
In non-inflation adjusted terms, capital city property values as at June 2011 were -2.3% below their quarterly peak which was recorded in September 2010. When the results are adjusted for the effects of inflation values peaked during the March 2010 quarter and to the end of the June 2011 quarter values have fallen by more than double the non-adjusted figure at -5.8%. 
Sydney is the most interesting city to analyse. In non-adjusted terms, property values peaked in March 2011 and were recorded at -0.8% below the peak as at the end of June 2011. However, when the data is inflation adjusted on a quarterly basis the Sydney market actually peaked during the September 2003 quarter and values remain -7.9% below their September 2003 peak despite recent strong growth. The reason for this is due to the fact that Sydney property values peaked during February 2004 and thereafter fell for more than five years, not eclipsing this previous peak until April 2009. At the same time, inflation was obviously prevalent in the market resulting in real value falls of as much as -17.0% at the weakest point in the market (December 2008 quarter). 
Brisbane has been the weakest performing capital city market over recent times with property values down -7.3% from their March 2010 peak. When the results are adjusted for inflation, the fall in values from the March 2008 peak is much more pronounced at -12.3%. Similarly in Perth, the fall from the market peak is more than double (-5.4% versus -11.3%) when the results are adjusted for inflation. 
Overall, we tend to focus heavily on the nominal change in values but it is also important to look at the affects of inflation on value changes. Given the expectation of limited value growth as a result of consumer conservatism and limited availability of finance, in inflation adjusted terms (and real terms) homes are likely to continue to become relatively more affordable. This is great news for potential home owners at it will make home ownership a more realistic prospect over time. 
On the flipside these conditions are likely to impact on negatively geared investors. Given this, RP Data anticipates that investor activity is likely to remain relatively subdued and those investors which are active in the market are likely to have a much greater focus on yield maximisation rather than negatively geared properties. At least for the short term, investors chasing substantial capital gains are likely to be disappointed given the anticipated market conditions.
Tim Lawless is research director at<a href="https://www.rpdata.net.au/" title="RP Data" target="_blank"> RP Data.</a> 
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Rising inflation makes housing more affordable

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?The chance to buy back the 1890s-built Friendly Inn Hotel in Kangaroo Valley in the NSW Southern Highlands proved irresistible for publican Peter Thompson, who snapped it up for $2.01 million at auction over the weekend. 

It last sold for $3.367 million in August 2005 and has been in receivership since April 2011. It sold for $950,000 in 1991, according to RP Data. 
The property, located at 159 Moss Vale Road, Kangaroo Valley and measuring 14,440 square metres, was marketed by Joel Fisher, Glenn Price, Greg Haines and Dugald Parsons from CBRE Hotel on behalf of receivers PKF Chartered. 
It was previously owned by Double Bay finance broker Adam Tilley and auction house owners James Barnier and Stuart Fox. 
Thompson owned the property in the 1980s and is currently the owner of another heritage pub, the Royal in Adelong, NSW, dating back to 1868. 
The hotel includes a public bar, TAB terminal, ATM, a gaming lounge with nine gaming machines, a separate bistro with seating for 50 people, a lounge seating 40, a full commercial kitchen, outdoor beer garden, a first-floor three-bedroom manager’s residence and a walk-in bottle shop. 
Revenue generated by the hotel is “distinctly seasonal”, with quiet months between April and June. 
In the three months to June 2011, the hotel generated revenue of $380,000, with more than $195,000 coming from the bar and bottle store and $A152,000 from food sales. 
Food sales are most profitable (gross profit of 61%), with alcohol sales generating gross profit of more than 50%. 
Over the three-month period, the nine poker machines brought in revenue of about $29,000. 
Profit for the three-month period after all expenses and wages was $12,000. 
The Thompson family also owned the Great Southern Hotel in nearby Berry, which they sold in 2007 after a decade of ownership.
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Former owner jumps at opportunity to buy back Friendly Inn

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The Commonwealth Bank, the nation's largest home lender, has dumped the federal government's much-vaunted but little-used First Home Saver Account scheme.
The bank withdrew the product earlier this month with a CBA spokesman suggesting that young home hunters preferred to save through term deposits and savings accounts.
Only 18 financial institutions offer the accounts, and most of them are credit unions. Just one of the four big banks, ANZ, now offers the accounts. Westpac and NAB were never participants in the scheme. 
Before coming to power, the then-aspiring prime minister Kevin Rudd suggested the FHSA scheme had the potential to revive the Great Australian Dream for young home hunters.
Treasurer Wayne Swan anticipated $4 billion would flow into the accounts.
But, five years on, the recent March quarter figures show less than 5% of this amount – $173 million – has been deposited into FHSAs. Although the government aimed to have 400,000 accounts by 2010, it has only attracted a total of 27,400.
The<a target="_blank" title="Saving for a first home thanks to a silver spoon" href="https://www.propertyobserver.com.au/residential/saving-for-a-home-thanks-a-silver-spoon/2011060850440"> first home saver account scheme </a>had appeared to be finally gaining some traction, as the 27,400 accounts represented a 21% jump in accounts over the past year to form the basis of their future home deposits.
The purpose of the scheme was to encourage first-home buyers to save in a disciplined environment, which then helped with applications to banks.
The Daily Telegraph was told by a CBA spokesman that customer feedback was that the FHSA was too complex and they didn't want their cash locked away for four years.
But this well-intentioned scheme hasn’t matched the federal government’s initial high hopes of $4 billion under deposit by 2012. The typical account currently has $6,300, the Australian Prudential Regulation Authority says.
The initial projections were of 220,000 accounts opened in 2009, and 730,000 by 2012. The scheme had a very slow start, with just $41 million deposited after its first nine months. As at June 2009 there were just 13,946 First Home Saver accounts. This jumped to 22,600 as at June 2010, and to currently about 27,400.
It dates back to an election commitment by then aspiring prime minister Kevin Rudd, with the government offering to contribute up to $850 for every $5,000 deposited each financial year. This amount has now been adjusted to $935 for every $5,500 or more.
Anyone over 18 and under 65 who has not previously purchased a home in which to live can have an account with an indexed $80,000 balance limit.
One of the main reasons why the scheme's uptake was woefully slow was its introduction coincided with the frenzy accompanying the first home owner grant boost, one of the overdone stimulatory measures during the global financial crisis.
The first-home saver scheme became swamped by the first home owner grant bonus.
There are tight rules regarding withdrawals, which are tax-free but can only be used to go to the purchase of a first home.
Account holders who change their minds about buying a house can transfer the balance of the account into superannuation.
The account holder must live in the home for at least six months as his or her main residence following the purchase of the property after the withdrawal of the funds.
First home saver accounts are an individual account, not a joint account.
Account holders don't have to be Australian residents or living in Australia to open or contribute to a first-home saver account, but do have to be Australian residents for income tax purposes for at least part of the financial year to receive the government contribution.
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