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.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[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>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

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

<html><body>
An individual property can be viewed from different perspectives such as home owner, investment or development and therefore the value of that property will be determined accordingly from that perspective. Knowing how and who values your property will assist you in making an informed decision about the buying, selling and holding process. 

There are three main types of valuations: 

<ol start="1">
<li>Valuer-General / Council Valuations</li>
	<li>Certified Valuers / Bank Valuations</li>
	<li>Real Estate Agent Appraisals / Market Value 
</li>
</ol>
[smartcode_project:default project_id=29048]

Valuer General/ Council Valuations 

Dependent upon which state or territory you live in, it is usually the role of the Valuer-General to oversee and provide updated land valuations for all properties in a local government area and to maintain complete, accurate and as current as possible valuation rolls for that State or Territory. Valuations are conducted annually in SA, Queensland and ACT, every two years for Victoria, every three years for NSW, WA and NT, every six years in Tasmania with a third of councils every two years. 

The Valuer-General is responsible for:

<ul>
<li>the provision of fair, accurate and consistent land values for rating and taxing purposes</li>
	<li>the determination of compensation following the compulsory acquisition of land</li>
	<li>providing leadership to the valuation industry and profession</li>
	<li>providing statutory valuations as required under the Land Act for that state or territory </li>
</ul>
The results of these valuations are provided to:

<ul>
<li>the Office of State Revenue annually, which manages and determines a landowner's land tax liability. Your principal place of residence is generally exempt from land tax.</li>
	<li>councils and other authorities such as water boards and emergency services as a basis for the levying of rates and taxes.</li>
	<li>departments to determine state land lease rent</li>
	<li>landowners via their notice of valuation, which is issued when their local government area is revalued.</li>
</ul>
[smartcode_project:default project_id=29947]

The Register of Land Values contains the following information:

<ol>
<li>the ownership of the land</li>
	<li>the occupation of the land</li>
	<li>the value of the land</li>
	<li>reference to the title of the land</li>
	<li>the location or description of the land</li>
	<li>the area of the land, and</li>
	<li>any other information as required by Valuation of Land Act for that particular state or territory. 
</li>
</ol>
Land values and council rating

[smartcode_project:default project_id=8082]

Councils use these land values to assist in the calculation of rates for local residents in one of three ways.

<ul>
<li>A combination of the land value of the property and a fixed amount per property.</li>
	<li>Entirely on the land value of the property.</li>
	<li>Entirely on the land value but subject to a minimum amount. </li>
</ul>
Fluctuations in land values don't necessarily lead to similar changes in rates. Rates depend on each councils rating structure and the limits to increases set by the various state and territory governments. The land value does not generally reflect the full sale price that could be obtained for the property. 

If you want to find out how your rates are calculated, contact your council. 

Land valuation process 

While states and territories differ in their approach and methodology, the general basis is that values are calculated using either the “unimproved land value” or the more common “site value” method. For the purpose of this article, I’ll use the NSW and Queensland methodologies for the explanation of each: 

NSW

<ol>
<li>Values refer to land value only, which does not include the value of your home or other improvements.</li>
	<li>Most land in NSW is valued using mass valuation, where properties are placed together and valued in groups called components. The properties in each component are similar or are likely to change in value in a similar way.</li>
	<li>Within each component, at least one representative property is valued individually each year to measure how much the value has changed from the previous year. The change in value is then applied to all properties within the component to determine their new value.</li>
	<li>Before undertaking valuations, valuers will inspect and analyse a large number of sales in a locality to gain in-depth understanding of what is happening in the real estate market. This information and the valuer’s expertise are then used to value the representative property.</li>
	<li>Where mass valuation is not appropriate, valuers will individually value the property.</li>
	<li>The most direct evidence for assessing land value is to compare the property being valued with the sale price of comparable vacant land sold around the time of the valuation date.</li>
	<li>During the valuation process, the valuer will examine the breadth of the real estate market including both vacant land and improved property sales. Valuers make allowance for the added value of any buildings or other structures on the land.</li>
	<li>Unsuitable sales, for example those between related parties, are not used to determine land values.</li>
	<li>When comparing property sales to the land being valued, the valuer may take a number of factors into consideration, including:</li>
</ol>
<ul>
<li>The location of the land, size and shape</li>
	<li>Soil type and land surface, such as slope</li>
	<li>Town planning controls and constraints on use, such as heritage restrictions</li>
	<li>Nearby development and amenities, such as parks, views, public transport and busy roads.</li>
	<li>Valuations are based on certain assumptions, including the property being vacant. The value of a home or other structures and improvements is not included. However, land improvements remain part of the land value, for example clearing, draining and filling of land. </li>
</ul>
Strata site land values 

<ol>
<li>The Valuer-General is responsible for determining the land value for the whole site of a strata scheme. The valuation will take into consideration the most valuable possible use for the whole site. This may exceed the current level of development on the site.</li>
	<li>The land value for individual strata units for council rating and land tax purposes is calculated using the land value for the whole site of the strata scheme and apportioned based on the unit entitlement listed in the strata plan.</li>
	<li>The Valuer General issues the secretary of the strata plan or the owners’ corporation with a Notice of Valuation showing the land value for the whole site of a strata scheme that will be used for rating purposes.</li>
</ol>
 

Queensland

From May 3 2011, the 58 rateable municipalities in Queensland have used the new site value methodology to value non-rural land and the unimproved value methodology to value rural land. 

Most landowners have seen very little difference in their new valuation as a result of the introduction of site value. Where there have been substantial site works made to land, landowners may see an increase in the value of the land. Approximately 95% of residential land in Queensland has not been significantly affected by the change in valuation methodology. However, the valuation of some residential land may have increased, such as land with water frontage. Other types of land also changed in value to reflect the difference in value between the land in its natural state (unimproved value) and its current state (site value).

For example, industrial estates that have been heavily filled, retained or levelled have seen the value of these improvements included in the land’s value. 

The new site value methodology has resulted in some properties, mainly commercial properties with significant leasing arrangements, having a reduction in their statutory land valuation as a result of the intangible elements no longer being considered in their valuation.

Swarnie Condon is an author of <a href="https://www.ipip.com.au/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" target="_blank" title="Journeys Along the Property Path">Journeys Along the Property Path: 12 real life stories of 12 property investors</a>, published by Inspirational People in Property.

 
</body></html>

swarniecondon-aTY2bgqmPh

Understanding land valuation

<html><body>
The Ten Network registered a comfortable win in Sunday night's ratings with the MasterChef Australia finale securing an audience of 2.568 million.
While Ten's decision to sandwich The Renovators between the two-part MasterChef finale was criticised by viewers, the move paid off, with the struggling renovation series attracting its highest audience to date at 1.269 million.
But Nine’s The Block remained super competitive, with its extended 90-minute episode averaging 1.433 million. Some 509,000 of the audience came from Melbourne, which is lapping up the series, being presented from Melbourne.
The room reveal component netted 1.82 million viewers for The Block.
On Sunday night 951,000 watched Grand Designs on the ABC
Nine’s head of programming and production Andrew Backwell has confirmed The Block finale will be a two-hour auction show to air Sunday, August 21 from 6.30pm.
The auction will be an invite-only event on the preceding Saturday night.
Backwell expects viewing to peak at 2 million or more viewers ahead of the Sunday night premiere of new drama Underbelly: Razor.
"It will be the highest-rating night of television on Channel Nine this year," Backwell says.
"The Block finale will get a huge response.”
Nine had high hopes for The Block this year, with Backwell saying it has performed above expectations.
To win tickets to The Block's auction, click here. </body></html>

jchancellor-FAypfDUnLy

Hammer and whisk battle won by MasterChef

<html><body>
More than half (57%) of future home buyers say the proposed carbon tax is discouraging them from purchasing a property, according to an online poll by mortgage broker Loan Market.
About a quarter (22%) of the 482 respondents said they were holding off buying to see how the mooted tax would affect them, while 35% said the proposed tax had put them off buying a house entirely.
Loan Market chief operating officer Dean Rushton says the results of the poll shows the carbon tax is not something that is likely to encourage consumers in what is already a challenging market for the home finance and real estate sectors.
The carbon tax appears to be less of a worry for younger borrowers, with 51% of the 18- to 25-year-old age group saying the proposal would not delay their property moves.
More than a third (35%) of respondents still plan to buy a house despite the carbon tax plan, and 8% hope to budget around it, the poll found.
The Real Estate Institute of NSW estimates that the cost of building a house will increase by over $5,700 as a result of the Carbon Tax and additional GST and stamp duty charges.
</body></html>

lschlesinger-FZcF9M3vE6

More than half of potential home buyers put off by spectre of carbon tax

<html><body>
Buying a house in Perth now costs roughly what it cost before the onset of the GFC in late 2007, according to preliminary figures released by the Real Estate Institute of Western Australia.
The median house price in Perth dropped by about 3% during the June quarter, with the metropolitan area experiencing its fifth consecutive quarter of price retraction, according to preliminary data from the institute.
Final data is expected to confirm a 2% drop in the Perth median house price to about $475,000. This is 6% down from the March 2010 peak of $505,000.
“This means the Perth median house price is now pretty much where it was in the December quarter of 2007 before the strong market correction and Global Financial Crisis of that year,” says REIWA president Alan Bourke. 
Flat sales turnover, little pressure on rentals and a surplus of listings are the main reasons for the Perth housing market remaining depressed. 
Markets were stronger in regions outside of Perth with the dip in median house price just under 2%, producing a median of $370,000. Sales activity picked up by about 4% in the quarter for areas outside of the city. 
The key beneficiaries of the fall in house prices have been first home buyers, with numbers increasing by 10% to 2,348 purchasers, the highest level since March 2010. 
However, this is still 26% below the average quarterly figure since the first-home owners’ grant was introduced 11 years ago. 
“First-home buyers remain a strong part of a weak market and represent 25% of all buyers in the quarter. The median purchase price for this group is now $413,000 in the city and $339,000 in regional areas,” Bourke says. 
The average first-home buyer loan in WA for April-May 2011 was $282,000, down by 5% from the peak of $298,000 in December of 2009.
</body></html>

Perth house prices fall to pre-GFC levels

<html><body>
There was no statistical weakening in weekend auction clearance rates after Friday’s rout on sharemarkets. But only the most optimistic expect any flight to property – as occurred a month or so after the October 1987 share market crash. It’s more likely to be a repeat of the aftermath of the initial 2008 global financial crisis.
Melbourne’s clearance rate remained steady, and Sydney’s picked up a tad in weekend results.
But agents did, however, sense a shift in mood, an anxiety among both among the buyers and the sellers.
SQM director Louis Christopher notes “perhaps sellers were more keen to offload”.
And Melbourne buyers’ agent Mal James concluded the top end of the market was tough, “but it was not an absolute shocker”.
There’s no way of telling whether the property herd will panic and flood the market this spring, but there’s not likely to be a flight of purchasers towards property.
There’s just too much despondency about the leading asset classes, except cash.
The best asset class for investors today was fixed interest, not real estate, property guru Mark Bouris told Friday’s Property Council of Australia lunch in Sydney amid plunging equities markets.
“If you’ve got some spare money, there’s only one place you should have invested,“ Bouris, the founder of Wizard Home Loans who now chairs listed wealth management firm Yellow Brick Road, says. “But the question is what’s the best asset to be in at the moment, and really right now, it’s fixed interest.”
Bouris suggested about 70% of a balanced portfolio should be invested in fixed interest, including term deposits and cash management trusts. The rest ought be divided between shares and property, he says.
The turmoil is quite likely to affect the top end of the market, mirroring the aftermath of the 2008 global financial crisis. And on the weekend the James Clearance Rate for $1 million-plus listings in Melbourne was 52% on the 25 auctions the group attended. But only three actually sold under the hammer, and buyer demand was at its weakest since 2008.
“There was not one $4 million-plus bidders’ auction in the 25,” James notes. “The choice of homes on offer was average at best.
“Right now is pretty much a nothing market – and again this weekend, nothing much happened. But nothing much has happened for several months,” James says, pointing out the traditional winter slowdown.
There were 19 sales with prices above $1 million in Sydney, according to Australian Property Monitors, with another four sold for undisclosed prices. There were 12 passed in at prices above $1 million. There were two properties with no bids and four were withdrawn. So a 56% success rate of the 41 $1 million-plus listings.
Uncertainty over the local and international economic climate is clouding what is currently a bright outlook, according to economist Dr Andrew Wilson at Australian Property Monitors.
“Weekend auction clearances rates continue to fluctuate, although they remain reasonably typical of the Sydney winter housing market. Although home buyer activity is set to increase through the usually buoyant spring selling season, the impact on buyer confidence of declining economic activity may prove to have a dampening effect,” Wilson notes.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/57per.jpg">
Melbourne’s weekend clearance rate from the preliminary 460 results compiled by the Real Estate Institute of Victoria. There were 510 scheduled auctions held in Melbourne. On the same Saturday last year the clearance rate was 67%. REIV chief executive Enzo Raimondo says there are about 500 auctions next weekend. After some further results came in from the July 30 auctions, Melbourne recorded a 57% clearance rate. “The falls recorded in the stock market do not appear to have impacted the residential auction market,” Raimondo says.
 
<hr>
 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/56.jpg">
Sydney’s weekend clearance rate from the preliminary 217 results compiled by Australian Property Monitors. There were 264 scheduled auctions in Sydney. On the same Saturday last year the clearance rate was 60%. Clinton McNabb at APM says there are about 310 auctions due next weekend. After some further results came in from the July 30 auctions, Sydney recorded a 53% clearance rate.
 
<hr>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/3mil.jpg">
 
The weekend’s highest recorded price across Australia was on South Road at Brighton. There was just the one bidder, who secured it after auction.
“The main road would be an issue but other than that, it is hard to fault,” James Buyer Advocates principal Mal James notes.
It was a good result, according to James, as it reflected just shy of a 10% increase in the two years since its last sale.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/auctionsaugust8.jpg">
Marshall White agent Madeline Kennedy listed the five-bedroom French Provincial family residence on 670 square metres (pictured above and below). Photo above courtesy of James Buyer Advocates.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/brightonauction.jpg" style="outline-style: none; outline-width: initial; outline-color: initial; padding: 2px; border: 0px initial initial;">
It was built in 2008 with a grand foyer with Swarovski chandelier and sweeping staircase, formal American oak study, marble kitchen and a heated pool.
</body></html>

Weekend auction results appear unshaken, but uncertainty looms 

<html><body>
So is it OK to buy now? Is this a window of opportunity or the start of the slippery slope?
It’s human nature as buyers to want to get a great deal at any time. We as buyers want to make the best decisions on our needs and maximise our individual long-term emotional and financial outcomes for our family – just as sellers do. But there is wanting and there is making it happen.
Going forward, what will happen is that:
Some buyers will panic.
We are all a bit circumspect and nervous, but if we become panicked we become a danger to our families.
The best way to avoid panic is to be clear on what it is that you, as the breadwinner or decision maker, are trying to achieve.
What do you want for your family?
A home with four bedrooms, a good backyard near schools and with a good floorplan in Boroondara or Bayside? Good – well stick to it.
The condition of the Greek economy shouldn’t make you now think you want a two-bedroom home in Epping with no backyard because that is somehow less risky than Hampton or Glen Iris.
Some buyers will not learn from history.
Think what happened during and post the GFC, during the ‘90s drop, and during the ‘70s – if you are as old as I am.
If you understand what is happening now you may be able to take advantage of it – even in little ways. It all adds up.
Some buyers will act.
You can only take advantage of an opportunity if you act.
Those who appear to be the wisest of men who pass on everything in life are not that.
You can’t look after your family on inaction. Your spouse can’t sleep in your concern and your kids can’t play in your risk-avoidance strategies.
Good things to think about when you realise you still need to do something:
Take your time, as most sensible buyers have this year. If you see something you like, look at its characteristics: are they what you want and are they any good? If not, move on – prices seem unlikely to be going north in a hurry.
Elevate your risk taking in negotiations and go harder on price. Especially if it’s been passed in for longer than a few days. Providing you don’t have to have it at any cost, push a little harder. It’s not immoral to try for a good deal.
Aim higher – especially if you are above $2 million. If you can stomach a bit more debt, then now may be the perfect time to look for something a bit better than what you could have afforded last year.
Marry a doctor or someone with equally good cash flow, because over the next few months some bargains may appear and cash-flow kings will be able to take advantage of the debt bunnies.
We admit we have a complete bias towards property, so maybe our thoughts are not quite balanced. But maybe that’s why we feel some comfort right now. If the kitchen in stocks is a bit too hot maybe nervous investors could come over and try the relatively stable inner-Melbourne housing market. Sure, it’s a bit rough around the edges, but it is solid inside.
The rest of this year is an opportunity for us all – and for some that opportunity will be a time for action, for others a time for reflection and for a few a time for panic.
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

maljames-vHwm28JUAa

Don't panic, Europe's economy shouldn't affect your Melbourne property investment

<html><body>
You’ve probably woken up this morning a little confused. The <country-region><place>US</place></country-region> government has been downgraded from a AAA rating to AA+ over the weekend. Every newspaper or media outlet you read is talking about financial markets mayhem. One minute you are hearing about higher interest rates, the next there is confident talk they will be slashed. The Aussie dollar has fallen more than seven cents from its high last week to have traded as low as US$1.0378 in this morning’s markets. The local sharemarket is off more than 10% in recent days. Media commentators are working themselves up into hysterics about how <place><country-region>Australia</country-region></place> is hurtling towards recession. All this turbulence is probably doing your head in. 
At times like this, it is useful to reflect on the hard facts. The so-called G7 economies – the US, UK, Germany, France, Japan, Italy and Canada – only actually account for about 30% of global economic growth, which is what we are really worried about (see chart). The higher-growth emerging and developing countries account for about 60% (i.e., they are far more important). About 30% to 40% of Australia’s exports go to two of these countries alone: China and India. 
So while the IMF projects that the world economy will advance at a healthy 4% to 5% per annum clip this year and next – with Australia’s trading partners expected to expand at an even faster pace – it believes that growth in the US and Europe will be much lower (and likely downgraded further).
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust81.gif"><img src="/images/stories/joyeaugust8thumb.gif"></a>
The financial markets and media commentators have not yet really understood that the global centre of economic gravity is rapidly shifting away from the North Atlantic countries towards the emerging world and <place>Asia</place> in particular. <country-region><place>Australia</place></country-region> is lucky to be situated in this region, and to possess the vital ingredients these high-powered nations require in order to fulfill their industrialisation and urbanisation plans: viz., natural resources, like iron ore, coal and natural gas, for steel and energy. 
Already our floating exchange rate is acting like a reflexive “shock absorber” and relieving pressure on the economy during this time of uncertainty. The seven cents sliced off the Aussie dollar (and counting) will make our export- and import-competing industries temporarily more competitive. While this is great news for those sectors, the one drawback is that a depreciating currency means we are likely to import more inflation from China and India (the huge appreciation in the Aussie dollar over the last year had been working in the opposite direction). 
As it stands, Australians remain in rude health. The unemployment rate is at its so-called “full-employment” level of just under 5%. Private wages including bonuses grew by 4.1% over the last year. Disposable household incomes rose by even more than this amount. And, if push comes to shove, the RBA can inject enormous stimulus into the economy by cutting home loan rates to as low as 2% to 3%. 
In this context, one surprisingly resilient store of wealth during financial market turmoil tends to be Australian housing. 
Compared with shares, this was certainly the case during the 1987, 2002-03, and 2007-08 equity corrections, when local share prices plummeted by 44%, 15% and 50%, respectively and cruelled the retirement plans of so many Australians who were “overweight” in this risky asset class. 
It was also true in the 2001 “tech wreck”, when global shares, which have historically attracted about 30% of all Australian super fund money, fell by about 40 to 50%. 
During the recent GFC, the peak-to-trough fall in Australian home values was just 3% to 4% notwithstanding that an inflation-focused RBA kept mortgage rates at 9.6% as late as August 2008 (see chart). That’s less than what the Aussie sharemarket lost in a single day last week.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust82.gif"><img src="/images/stories/joyeaugust82thumb.gif"></a>
A final test case is the 1991 recession, when despite a spike in the unemployment rate to 11%, and double-digit mortgage rates, overall Australian house prices moved sideways. 
 
<hr class="system-pagebreak">
As regular readers will know, our central case remains that the RBA will hike interest rates once or twice more. This should continue to put mild pressure on the housing market, which has suffered from a combination of the RBA’s de facto double rate hike in November last year and the very “hawkish” expectations of consumers, who have been working on the basis that they would be hit with another two to three hikes. If this comes to pass, a modest downward adjustment in dwelling prices should present prospective buyers with attractive investment opportunities before a very robust recovery as the RBA normalises rates over 2012-13. 
I should note here that this view is quickly slipping into the minority despite the extraordinarily high “core” inflation readings in the first and second quarters of 2011 (these core estimates strip out unusual events like the floods that affect the “headline” numbers). 
After 20 years of uninterrupted growth, many Australians have forgotten what the cost of high and volatile inflation is. Well, I can tell you: high nominal interest rates. 
The average home loan rate in <country-region><place>Australia</place></country-region> between 1980 and 1995 was a scorching 12.6%. That was before the RBA broke the back of inflation during the 1991 recession. Since 1995 the average home loan rate has declined by 42% to be just 7.3%.
The cost of price stability (or low inflation) is occasional periods of higher interest rates when the RBA strives to bring those price pressures back into its target 2% to 3% per annum band. 
Of course, it also pays to remember that inflation is a tax on hard-earned savings. That is, it punishes savers and rewards spendthrifts (i.e., those with debt). Hence the many net savers out there in the community who have loaded up on cash and fixed-income and want to see the RBA do its job properly, even if it means lower growth and higher unemployment in the short-term. 
A second major thesis we have been running for a few years now is that housing could be a solid hedge against extreme adversity. The financial markets are currently pricing an incredible six rate cuts within the next year on the basis of the belief that we are going to get a GFC Mark II (see chart).
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust83.gif"><img src="/images/stories/joyeaugust83thumb.gif"></a>
On the assumption of its “peachy” base case, the RBA has deliberately sought to crush consumption, retail spending, and the household sectors to make room for the huge amount of private investment that is starting to take place in Australia. 
Ordinarily, consumption accounts for 55 to 60% of all economic growth. Yet there is another $140 billion or so of new private investment that will be commenced in the next two years alone, which amounts to about 11 percentage points of GDP growth. Even if you take an axe to that number and halve it, it remains chunky. 
Yet if the China and India urbanisation stories blow up, and demand for Australian resources disappears, what will the RBA do? 
It will slash interest rates (as the financial markets believe it will), and invite the consumer and household sectors to step into the breach left by evaporating resources investments. 
And what is the most interest rate-sensitive sector of the economy? Housing. 
Think about what happened during the GFC. The RBA slashed home loan rates from 9.6% in August 2008 to just 5.75% by April 2009. And, unsurprisingly, Australian house prices soared by a stunning 12.1% in 2009. 
Since I believe the world will muddle through this current speed bump, which is a reflection of the profound structural adjustment taking place in the global economy, I remain of the view that interest rates are more likely to head up than down (although it is possible that a crisis will compel the RBA to spin 180 degrees). 
This will be especially true if the Australian dollar keeps falling, as this will be equivalent to rate cuts and only exacerbate the RBA’s inflation challenge. In this environment, I would keep my investments in cash and floating-rate fixed-income. 
To protect against a downside scenario whereby the RBA is forced to abandon its base case and radically reduce interest rates – let’s say to zero – the good news is that virtually all Australians have, quite uniquely compared with peers overseas, fully adjustable rate home loans. 
If the RBA reduced the cash rate to zero, we would be paying 2.5% mortgage rates. And, in this contingency, housing will likely once again be a very solid store of wealth.
Christopher Joye is a leading financial economist and works with <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" 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.
</body></html>

chrisjoye-JYhJsTrNRC

Calm pays during chaos, as housing good hedge against adversity

<html><body>
Building construction activity is expected to pick up strongly in NSW over the next two years, according to forecasts by BIS Shrapnel. 
Growth of 15% and 14% is forecast in NSW over the next two years to 2013, compared with national growth of 8% and 1%. 
“Very strong growth” in residential construction and a strengthening of non-residential activity – both coming off a very low base – will drive the recovery in NSW, BIS Shrapnel estimates. 
In contrast, construction activity in Queensland will stagnate over 2011-12, growing by just 1% over the period, but will pick up over 2012-13, accelerating by 16%, according to the forecast. 
A drop in residential activity in Queensland 2011-12 will be followed by a “sharp rise in residential construction in 2012-13, with both detached house and higher density projects contributing” the research group has forecast. 
Alterations and additions will also support building in Queensland in 2011-12 as housing is refurbished after being damaged by floods and cyclones across the state in early 2011, the company says. 
Non-residential commencements in Queensland are anticipated to weaken in 2011-12 as spending on education and health projects winds back to more historically normal levels, before showing a small rise in 2012-13 as commercial and industrial building improves.
<img src="/images/stories/bisshrapnelaugust8.gif">
Source: BIS Shrapnel
BIS Shrapnel forecasts the value of new residential building commencements to rise by 10% over 2012-13 on the back of an accelerating economy. 
The research group attributes the 12% national decline in building activity over 2010-11 to the winding down of construction related to the “Building Education Revolution” program. 
This fall-off more than offset the emerging recovery in commercial and industrial building, which is forecast to continue to underpin overall growth in 2011-12. 
“The continuing recovery in commercial and industrial building – up 21% – will be a key driver of the improvement in building commencements in 2011-12, while increased construction in the health sector – up 73% – will also play a part,” says BIS Shrapnel managing director Robert Mellor. 
“With the Australian economy largely recovering since the GFC, the environment has become more conducive for commercial and industrial development. There is also $7 billion in new hospitals and other health care facilities due to commence in 2011-12, particularly in Victoria, Queensland, South Australia and Western Australia.” 
According to Mellor, the contribution from residential building is forecast to be minimal in 2011-12 after being negative in 2010-11 due to the decline in activity after the expiry of the first-home owner’s grant boost scheme, as well as the winding down of the federal government public housing stimulus. 
The decline is expected to more than offset an otherwise healthy rise in multi-unit residential starts. That rise is largely due to the improved financial environment that allows developers to be increasingly able to fund apartment projects. 
Despite a weakening in net overseas migration inflows, which have fallen from a record 300,000 people in 2008-09 to an estimated 165,000 in 2010-11, Mellor says “construction nationally still remains below the level of underlying demand, although in some states the market is closer to balance”.
Gains are expected to be roughly felt equally across new houses and multi-unit dwellings, with the upturn concentrated in Queensland, Western Australia and New South Wales. 
However, the residential building upturn is expected to be short-lived, with BIS Shrapnel forecasting the value of residential building starts to decline by 15% during 2013-14 and 2014-15.
</body></html>

NSW heads to recovery but others catch the construction blues: BIS Shrapnel

<html><body>
The $39 million sale of the former Dalkeith mansion built for the 1980s entrepreneur Alan Bond ranks as WA's second-most expensive house sale.
Mack Hall, of Mack Hall Real Estate, has confirmed the Watkins Road mansion on the Swan River has been bought by mining entrepreneur Steve Wyatt and his wife, Sue.
They initially expressed an interest in the home about a year ago. It was sold by businessman Barry Patterson, who was Sonic Healthcare chairman from 1999 to 2010 and previously held gold mining interests.
It last traded in 1999 for $9.5 million, which was to stand as Perth’s record until 2006.
The seven-bedroom riverfront mansion is set across six titles totalling 6,417 square metres.
Wyatt’s business associate Chris Ellison set the WA real estate record when he paid $57.5 million for iron ore heiress Angela Bennett's riverfront compound in Mosman Park in 2009.
Wyatt and Ellison set up Crushing Services International, which built and operated ore-crushing plants for mining companies.
"It was never on the market, and I mentioned it to the owner [that there was interest], but he did not want to sell it for a couple of years," Hall told The West Australian.
"Some negotiations took place, and the new owners moved in [last week]."
Gold mining magnate Ross Atkins bought the property in 1993 from the Bond family trust company, Armoy Pty Ltd, for $7.3 million, selling it six years later to Patterson after extensive renovation.
The Wyatts paid $9 million in 2006 for their current South Perth abode, which was expanded to 2,500 square metres in 2010 with the purchase of the neighbouring $3.9 million property. It has views of the city skyline from its non-riverfront promenade position.
</body></html>

Mining magnate buys Perth's second-most expensive house

<html><body>
The main point I'd make about the international debt situation as it affects property is something of a curly one.
I'm going to be a bit of a long-winded academic here, but I think I need to do that because otherwise what I say will sound weird compared with the conventional reactions to the US debt "crisis".
Demand in our economy comes from either incomes or the change in debt.
It then buys either goods and services or existing assets.
So there's a link between change in debt and the level of asset prices.
Change in demand – which drives both change in output and change in asset prices – depends on change in income and (drum roll) the acceleration of debt.
This then drives change in purchases of goods and services and change in demand for existing assets.
There is thus a link between the acceleration of debt and change in asset prices.
The conclusion is that for asset prices to rise (including of course property), private debt levels have to accelerate.
That in fact has been happening for the last 20 years in Australia – and that's when the biggest boom in house prices occurred.
Now that the global economy has private debt levels falling, private debt is decelerating – and that's the primary factor that is causing share and property prices to fall.
In all this, the shenanigans over public debt are a bit of a sideshow.
Public debt is rising not because governments are being irresponsible now, but because the private sector was during the subprime bubble (and its equivalents in Iceland, Ireland, England, Spain, and Australia to name a few).
Now that the private sector has gone from gambling on rising asset prices with borrowed money – which drove asset prices up – to reducing its debt, both sales of goods and services and asset prices are plunging.
That necessarily causes government deficits to rise, tax receipts fall and welfare payments increase.
That's what mainly caused the US public debt to blow out.
Private debt fell from 300% of GDP to 258% in the last two years; public debt increased from 60% to 100%.
The US “debt ceiling” thing too is a bit of nonsense: the US has hit and moved its ceiling more than 100 times since World War II.
It's sometimes involved brinkmanship between the Republicans and the Democrats; this time has been amplified by all the Tea Party types.
I don't believe this crisis can be stopped by government spending, but I do believe that if the government tries to cut its spending while the private sector is also deleveraging, it will make things worse rather than better.
So the austerity measures being imposed around the globe will amplify the impact of private sector deleveraging on reducing property and share prices.
Steve Keen is an associate professor of economics and finance at the University of Western Sydney. He maintains a blog on the economy, <a target="_blank" title="Steve Keen's Debtwatch" href="https://www.debtdeflation.com/blogs/">Steve Keen's Debtwatch.</a>
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News