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

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

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

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

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

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

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

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

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

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First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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A property manager should be competent to look after all the day-to-day running of the property, from assisting the owner with the review of a tenancy application and subsequent tenant selection to co-ordinating maintenance. The property manager needs to make suggestions on property improvements and updates, pay the outgoings such as council, water and owner corporation accounts, collect the rent and to transfer rent money to the owner. 
He or she should have a good understanding of what the owner expects and be proactive and responsive with clients, not simply pass the problem onto the owner to make a decision. Owners appoint the services of a property manager for advice, experience and to provide direction and recommendations when it comes to making the tough decisions.  As an owner myself, I love nothing more when my property manager emails me with both the problem and solution relating to one of my investment properties – it provides me with confidence. I lead a crazy busy life, so being presented with such solutions ensures this is one less thing I need to think about in my day. 
An example of a good property manager would be someone who regularly completes routine inspections of the property, not only to see what maintenance is currently required but also to suggest what the owner needs to think about for the future. For example, when the current tenants vacate the carpet will likely need to be replaced, or perhaps the gutters need to be cleaned and window frames need repainting in the future. Forward planning is very important for owners because it allows them to budget and therefore they won’t be surprised when the tenants give their notice to vacate and all of a sudden need to find $3,000 to $5,000 to re-carpet the house. 
When looking for a property manager, I recommend investors take a few minutes to speak with someone they are looking at employing and not to base their decision on fees or location alone. Times have changed, and a property manager no longer needs to be around the corner from the property. If you don’t have the time to call, then email them and review the timeframe it takes for a reply. This will give you an excellent indication on a property manager’s communication and time management skills, which are both very important skill sets. 
In regards to qualifications and experience a property manager needs to know a lot of information – which includes the legislation requirements in your state, assisting owners and tenants with budgeting, insurance policies, an understanding of owner corporations, building requirements (which is especially important with so many people buying off the plan) and how to communicate with tradespeople to address maintenance and/or renovation issues. 
Finally in my experience I don’t believe “x” number of years makes a good property manager, as there are some who have been in the industry for 20 years and haven’t attended any type of training since the dawn of time. So when it comes to appointing a property manager to look after your property, look for someone who can think outside the square, who will go the extra mile for you when things go pear-shaped, has a passion for the industry, someone who regularly updates his or her skills and knowledge and is not afraid of technology or change.
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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What to look for in a property manager

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{yoogallery src=[images/stories/august4blackfriars]}
8 Blackfriars Close, <a target="_blank" title="Toorak" href="/news">Toorak</a>, VIC, 3142
This home is one of a kind. One could be mistaken for entering a country retreat with tranquil grounds and a variety of peaceful rooms to relax in. This is a home for someone wanting something different from the norm. If stairs are not a concern, it would work well for families with teenage children. There is no connection between the kitchen to the back yard, nor from the upstairs living areas, so it may not suit families with younger children and these are reflected in the rating. That being said, I liked it. Every opportunity for light has been brought in. The living rooms and bedrooms all face north. The home is extremely private and it's a short walk back to reality - with Toorak Village, transport, the M1 and schools all close by.
The house has been given a rating of 571 out of 1000 by James Buyer Advocates, which puts it in the category of the low end of average. The property is being marketed by <a href="https://www.marshallwhite.com.au/?pagecall=property&amp;propertyID=1797228" title="Marshall White" target="_blank">Marshall White</a> agents Justin Long and Susan McGlashan with price hopes of $3.25 million. It goes to auction on Saturday, August 6 at 12.30pm.
Kristen Hatt is principal buyer advocate of <a href="https://www.james.net.au/rating/8-Blackfriars-Close-TOORAK" title="James Buyer Advocates" target="_blank">James Buyer Advocates</a>. James provides market updates, home ratings and advice on its website.
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cknowlton-QnEa6ntUYP

A country retreat in Toorak

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The Productivity Commission has unexpectedly recommended the government should reduce the $1,000 GST-free import threshold, but acknowledges this is only a small problem facing the retail sector and says further structural reform is required.

The commission's draft report recommends that state and local governments need to harmonise their laws and reform planning, zoning and retail trading hours restrictions. It also recommends that the Federal Government should review any constraints created by workplace relations regulations.
"Intensified retail competition is a boon for consumers, but it is challenging for a retail industry which, overall, has lower levels of productivity when compared internationally and, in many cases, faces higher costs," says commissioner Philip Weickhardt.
"However, the government's role is not to shield the industry from competition but to remove constraints which restrict the industry in responding to this heightened level of competition."
The overall report acknowledges many problems pressuring retailers including planning and zoning restrictions, pressure within shopping centres on retail tenants and varying regulations on trading restrictions.
It also acknowledges that more people are spending more money on non-retail services, such as property, travel and entertainment.
And while it acknowledges that the current low value import threshold is a "minor part of the competition story", it nevertheless says that the threshold "in principle should be reduced to a low level to ensure tax neutrality".
In a move that is sure to be welcomed by the Fair Imports Alliance, the Productivity Commission also says that current processes for collecting taxes and duties "are not efficient".
"As the threshold is lowered, costs of collection increase significantly – at very low thresholds, (for example $20), the costs of collection would exceed tax revenue by over three to one."
"Such a cost impost on both importing businesses and consumers is unacceptable even without considering additional costs such as delays."
The report also recommends that the government should investigate the current system for processing incoming parcels, "with a view to then reducing the LVT in a cost-effective way".
This article originally appeared on <a href="https://www.smartcompany.com.au/retail/20110804-breaking-news-productivity-commission-recommends-retail-industry-reform-including-reduction-of-gst-free-import-threshold" title="SmartCompany" target="_blank">SmartCompany.com.au</a>
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Productivity Commission recommends retail industry reform including reduction of GST-free import threshold

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Shares in Charter Hall Office REIT, the target of a failed hedge fund-led management takeover a week ago, have fallen this morning as the listed property sector continues to trade down.
Its shares were last trading at $3.20, compared with $3.17 at the start of trading today.
The fall in the share price follows two significant events: a bad day of trading for the REITs sector as a whole and the REIT announcing the sale 14 US office properties to Boston-based private equity group Beacon Capital for $1.58 billion.
The properties were sold at a 2% premium to their July 31 book value.
Yesterday a number listed property trusts hit 12-month lows including Mirvac, Australand, Charter Hall, CFS Retail Property Trust. They fell on the back of billions wiped of global share markets with the Australian market falling 2.27%.
Australand was down another 1o¢ today to $2.38. The stock has now fallen more than 9% since the release of half year results on July 27.
CFS Retail Property Trust was down marginally in trading today, down 6¢ to $1.67 after falling 3.45% yesterday to $1.68.
Mirvac continued to trade down today after falling 1.3% yesterday to $1.13. It was last trading at $1.12.
Stockland was trading unchanged around $3 following a fall of 2.61% yesterday while Charter Hall was unchanged at $2.03.
Westfield Retail Trust was last trading at $2.435 up 1.5¢ from its opening price. Westfield shares were up from $8.01 to $8.13.
Leighton shares were up 58¢ to $20.65.
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lschlesinger-FZcF9M3vE6

A-REIT trading down a week after Charter Hall takeover bid

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AMP Capital Investors chief economist Dr Shane Oliver views the global outlook as looking softer than the Reserve Bank of Australia has been assuming.
“This combined with a continuing run of very weak economic indicators in Australia highlights why it would be a major mistake to raise interest rates any time soon.
“In fact, the case is steadily building that the next move in the cash rate will be down,” Oliver says.
Oliver says the global malaise affects Australia via three key channels: the direct impact on business and consumer confidence, the financial markets and trade.
“While demand for Australian exports remains strong, the risk is the weakness in Europe and the US adversely affects growth in China and Asia which then reduces demand for Australian exports.
“So far there is no clear evidence of this, but it is worth keeping an eye on,” Oliver says.
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jchancellor-FAypfDUnLy

Case for interest rates cut steadily building: Shane Oliver

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The value of mortgages sold via AFG mortgage brokers declined by 3.7% in July, with Victoria the worst-performing state, recording a decline of 7.4%.
In total AFG brokers sold $2.29 billion worth of mortgages in July, compared with $2.38 billion in June.
Significant declines were also recorded in NSW (down 5.9%) and Western Australia (down 5%), with Queensland almost flat (down 0.5%). The only state to go up was South Australia, rising by 13.7%, but off a much lower base.
Nearly two out of every five new mortgages (39.1%) arranged by AFG in July was to refinance an existing mortgage, with only 11.7% of mortgages arranged for owner occupiers moving or upgrading their homes. 
Just over a third of mortgages (35.6%) were arranged for investors, but this number is down from the 36.2% recorded in June. 
First-home buyer numbers increased marginally from 12.9% to 13.6% but are still down on the 14.1% recorded in January.
Mark Hewitt, general manager of sales and operations at AFG, says the latest figures confirm a much more worrying trend: that most Australians are still fearful about their financial future. 
“Ever since the interest rate rise last November, home buyers have gone into their shells. Western Australia, supposedly the prime beneficiary of a resources boom, has the most depressed property market of all.” 
In Western Australia, total mortgage sales for the first six months of 2011 were 3% lower than for the last six of 2010, with investor interest lagging behind the national average (30.7% compared with 35.6%). The average loan in WA size for July fell to $371,-000 – exactly the same as the average loan processed four years ago in July 2007. 
“Domestic financial news is dominated by talk of rate rises and the carbon tax. Gloomy international financial news has seen stock markets slump. We’re all looking for strong economic leadership to provide the market with some much-needed confidence,” Hewitt says. 
The average size of a mortgage arranged by an AFG broker rose marginally to just over $386,000 in July nationally, and to $456,000 in Sydney.
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Victoria worst-performing state as mortgage sales fall nationwide: AFG

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Non-CBD markets vacancy rates are declining at three times the speed of their CBD neighbours, according to The Property Council’s latest Office Market Report.
 
The non-CBD market vacancy dropped by 0.9% over six months to July 2011 to 10.5%. 
Over the same period vacancies in CBD markets declined from 8.7% to 8.4% while across all office market vacancies decreased from 9.6% to 9%.
East Melbourne, where the vacancy rate fell from 5.4% to 2.5% over the period, is the most tightly held significant office market nationally. 
Vacancies on St Kilda Road, recently identified as the hottest office market in Australia by Savills, (24,000 square metres lased over the second quarter of 2011) declined only marginally from 14% to 13.4%. 
However, CBRE director of office services Grant Tinker says the latest figures did not give an accurate indication of how robust and active the St Kilda Road market had been. 
“We expect a massive decline in vacancy rates in the next survey,” he says.
“Many large transactions have been agreed or are close to being agreed, which will take a few months to work through the figures. 636 St Kilda Road is the only building in the precinct that can offer large space (3,000 square metres plus) on contiguous floors, and we will very quickly run out of available stock,” he says.
Vacancies also declined strongly in Melbourne’s Southbank market, falling from 7% to 5.7% over the period. In June 2010, the Southbank vacancy rate was 9.7%.
Strong falls in vacancies also occurred in the Chermside market, north of the Brisbane CBD, falling from 6.5% to 5.7% over the six-month period. A year ago the vacancy rate was at 8%. 
Jennelle Wilson, Knight Frank’s associate director of research in Queensland, says the secondary Brisbane market has been a major beneficiary of mining, engineering and projects in the Brisbane CBD. 
“This market has rebounded from the lows recorded 12 months ago. Average gross face rents increased by $20 per square metre over the past six months to be $525 per square metre and incentives have tightened from 28% to 26.5% over the same period. On an annual basis this represents gross effective rental growth of 7.1% over the past year,” she says. 
North Sydney is another strong fringe performer, with vacancies falling from 11.8% to 9.2% from July 2010 to July 2011 compared with the Sydney market, where vacancies have increased from 8.3% to 9.3% over the same period. 
Peter Flint, CBRE state director of office services, says that the north shore office market would change the most dramatically out of the Sydney metro markets, and vacancy rates would change substantially over this quarter.
“The main vacancies in North Sydney are centred in B-grade stock and A-grade vacancy in contiguous floors is virtually non-existent,” Flint says.
“The sheer size of each of the three approved development sites in north Sydney means that the existing space vacuum won’t change anytime soon. This is forcing larger occupiers to look up the line to St Leonards where again the direct vacancy of 43,000 square metres is concentrated in lower-quality buildings and big take-ups are predicted in A-grade buildings in this quarter.”
Flint says the pressure-relief valve is Chatswood, which has the highest vacancy in NSW at 17%.
But like St Kilda, he believes these deal evidence and space take-up in the current quarter will lead to a dramatic drop in the direct and sublease vacancy numbers.
“We are tracking 5,000 square metres of our own deals in that market for the month of August,” he says.
The non-CBD sector is also likely to be boosted by a greater demand for space from large corporates, according to CBRE. 
Recent office reports have forecast that more large corporates will look to lease office space in fringe CBD markets due to a lack of large floor plate space. 
An influx in big business is also expected in inner-Sydney suburbs like Pyrmont and Ultimo, where prime gross office rents are on average 43% lower than the nearby CBD.
The decline in vacancy rates nationally was the result of stronger demand and lower-than-average supply combined with resurgent occupier confidence around the country. 
On the demand side, 219,059 square metres of new office space was leased over the period, 18% above the 20-year historic net rent average of 185,743 square metres. 
On the supply side just 198,999 square metres of space was added over the six months to July 2011, 35% below the 20-year historic average of 303,743 square metres. 
CBRE executive director of global research and consulting Kevin Stanley says the results support the recent actions of investors to weigh into the office sector.
“Market fundamentals are continuing to improve and this will inevitably lead to a rise in rents and values,” he says.
”While most leasing agents report that low business confidence is resulting in protracted leasing negotiations, ultimately more office space is being filled across Australia. The ongoing expansion of occupied business space has pushed vacancy down in the first six months of 2011 in all major office markets, except the Sydney CBD.</body></html>

Fringe office markets outpace metro neighbours

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Property developing can throw many different challenges at you, and one thing I have learnt in this industry is there is always a solution to a problem. The trick is to understand what possible problems may arise and preparing yourself for them. Unfortunately things don’t always go to plan, and as a project manager it is up to us to make sure the development gets through as efficiently as possible.
One of the biggest areas for problems is not allowing enough for building works.
When pricing a development and running feasibilities, it is important to understand that your building estimate is an organic creature. By this I mean the building estimate you start with will nearly always be different to the one you end with. It will evolve throughout the process as you obtain more and more details. Once you have all the fine details, the building estimate can be finalised to the fixed price builder’s tender.
If architecturally designing our villas, we generally follow this process:
<ol>
<li>Concept plan – this will show the number and size of villas on the land, but not much detail</li>
<li>Development Application (DA) – enough information is included on the plans to satisfy the council</li>
<li>Construction Certificate (CC) plans –more detail, including engineer drainage and slab design</li>
</ol>
The starting point for our build estimate will be based on similar projects that we have recently completed and an allowance for the different site.
This progresses to an estimate based on the concept plan. Still a very loose estimate, as there is usually not enough detail on the concept plan for the builder to have all information he needs. The build estimate we have at this stage will tell us whether we are tracking within budget. If not, we can make the necessary changes required, perhaps reducing the size of the villas working with both our builder and architect to design the right dwellings for our project to be successful.
Once the concept plan is approved, the architect will proceed to full DA plans. It is here that much more detail is added and we will have our builder price the DA plans. Again, this does not give us a final build cost but we will be getting closer to the expected outcome. Once approved by our client, the DA plans are finalised and the DA is prepared.
During the DA process, council may request some changes to the plans, so it is important to understand we are still ‘evolving’ at this stage. We also need to review the conditions of the DA consent before we have more detail to finalise the build costs.
Once the council has approved the DA, we will start to prepare the CC plans. Engineers will be briefed and a drainage and engineered slab design or footings for the foundations will be produced. More detail is added to the CC plans, finalising levels and double-checking schedules.
Before we lodge the CC plans with our private certifier we will have our builder issue a third costing. It is this costing that will give us the final build costs...well, almost. We still need to have the CC approved and ensure there are no further revisions to the plans required.
After we have the CC-stamped plans, our builder will issue his final tender and building contract. This will be a fixed price contract; however, there may still be a few items that will be provisional. They are usually some site works, removal of fill and retaining walls. The builder may mark these items as provisional as he won’t know until works proceed exactly what the cost is. For instance, if rock is hit during the site cut, this will increase the site costs. If the site cut differs slightly to the plans, this may impact on the height of retaining walls. So these provisional items will be charged at actual cost whether it is lower or higher.
So you can see how the build estimate must evolve through the development process and until your development is completed, you really won’t know the exact cost. It’s important you allow a contingency amount for any variations that may crop up along the way.
As a developer, you will embark on a challenging journey from start to finish and the path you choose can be simplified with the help of a project manager to guide you along the way. Always take the time to have full builder’s estimates done at each stage to avoid any nasty surprises.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">Property Bloom</a>, which manages property development.
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jochivers-wq5Bp59R5a

Development costs can be difficult to predict

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Commercial property experts believe the Adelaide office market has peaked, with vacancy rates set to rise as more office stock comes on board over the next 12 months. 
According to The Property Council’s latest Office Market Report, the core (inner-CBD) Adelaide’s vacancy rate declined from 7.5% to 7.3% while the CBD vacancy rate fell from a six-year high of 8.4% to 7.9% over the six months to July 2011. 
Premium-grade vacancies decreased from 3.8% to 2.1%, the lowest level since January 2007. 
In the six months to July 2011, Adelaide recorded a net absorption of 6,633 square metres compared with a net absorption rate of 302 square metres for the previous six months.
However, according to South Australian Property Council (SA Division) executive director Nathan Paine, a significant amount of new supply will enter the Adelaide office market over the next 18 months: 20,812 square metres in the remainder of 2011, and more than 40,000 square metres in 2012. 
“While much of this future space is pre-committed, it will take some time for the market to digest all of the new supply and back-fill space,” he says. 
Newly completed A-grade core office space includes the $100 million 12-floor Aurora on Pirie Tower 1 with 13,000 square metres of space developed by Adelaide developer Urban Construct. A second tower of similar size is also planned for Pirie Street.
Knight Frank director of leasing in Adelaide Martin Potter also expects the increased supply to push up vacancy rates. 
“Adelaide has experienced positive net absorption over the past 12 months, however new supply coming onto the market in the next two years will see an increase in vacancy particularly, for the back fill space,” he says. 
Potter says the Adelaide market has been characterised by a flight to quality stock continues with prime stock showing low vacancies, with the lower grade properties still experiencing double digit vacancy. 
“Demand for Prime office space should see continued development; however two tiered markets will see movement away from C- and D-grade stock,” he says. 
CBRE director of office services Andrew Bahr has also noticed patchy conditions in Adelaide. 
Bahr says caution has prevailed in Adelaide in the first six months of the year, with concern over capital costs continuing to be a key issue. He says companies are staying put in their current offices and not moving, which is hurting the market. 
“A real stalemate exists in regard to demand and supply and large amounts of high-quality contiguous space will be in limited supply until late 2012 or early 2013.” 
Bahr says there had been a slight increase in activity in the past month and this trend is expected to continue over the next six to 12 months. 
However, he also has concerns about the local market being able to absorb new office space in the next few years. 
“A concern in 2013 is the fact that some 50,000 to 60,000 square metres of secondary space will be coming on the market, and has our local market got the capacity to absorb this much space?”
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Adelaide office market has peaked: Property Council

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A friend, Dominic Stevens, who is CEO of the annuity provider Challenger, shot me a chart of Australian house prices compared with US house prices over the long term. This particular chart seemed to suggest that there was an enormous difference in the growth rates. Dom asked me whether it was right. 
So we took up the challenge of answering his question. In Australia, all home sales data is collected by state government land titles or valuer-generals’ offices. However, none of these agencies make comprehensive sales data available before about 1975. We therefore view any indices purporting to rely on data before the 1970s as quite suspect, and certainly a very poor representation of the national market. It also turns out that reliable US house price data starts in about the mid-1970s too. 
The two most respected indices in the US, produced by S&amp;P Case-Shiller and the FHFA, begin their benchmarks in 1987 and 1975 respectively. Robert Shiller has tried to construct a longer-term house price series but relies on a “five-city” median price proxy between 1934 and 1952, and presumably poorer data before that. It is hard to fathom how one could legitimately argue that a sample taken from five US cities is somehow a decent representation of 50 to 100 cities spread across the US. 
For Australia, we used RP Data’s information to construct a comparable “all regions” median price index (i.e., as broad as possible) based on the criterion that we needed at least 12,000 dwelling sales per quarter. This begins in 1975, and by the end of that year we are including nearly 20,000 sales per quarter. (For the technical boffins, we use a simple median price index because it includes the maximum amount of data. A hedonic index would not be possible because we don’t have sufficient property attribute information in the 1970s and a repeat-sales index excludes too many observations for our liking.) 
The results of our analysis over this 36-year period are shown in the chart below. The first interesting insight is that Australian house prices grew no faster than <country-region><place>US</place></country-region> house prices right up until the late 1980s. And even during the next one and a half to two decades, the growth rates were similar. It is only the recent financial markets’ crisis and ensuing recession that has caused a noticeable disconnect.
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyeaugust4.jpg"><img src="/images/stories/joyeaugust4thumb.jpg"></a>
Over the 32-year period stretching between 1975 and 2007 (i.e., just before the GFC), the inflation-adjusted compound annual capital growth rate for Australian dwelling prices was 2.6%. In contrast, the inflation-adjusted compound annual capital growth rate for US dwellings was 1.7%. (Again, for the boffins, our analysis of all alterations and additions data collected by the ABS implies that you should probably knock about 0.5% to 0.6% per annum off the CAGR to account for capital improvements to homes when using median prices.) 
That is, there was only a 0.9% per annum differential in the real house price growth rates realised in Australia and the US in the three-plus decades before the US sub-prime crisis materialised (of course, cumulatively this gives rise to a material divide in house price levels). 
Since 2007, or the advent of the GFC, the differences between the two countries have widened considerably given the strongly divergent economic circumstances. 
The US had its worst recession since the 1930s Depression, with the unemployment rate surging to 9.2%. <country-region><place>Australia</place></country-region>, in contrast, suffered only one quarter of negative GDP growth and today has an unemployment rate of 4.9%. Within the housing market, US mortgage default rates are more than 11 times higher than Australian equivalents (8% compared with 0.7%) notwithstanding our far steeper interest rates. 
The effects of the crisis, and the 15% to 30% peak-to-trough fall in US dwelling values, led the US market’s real CAGR to fall from 1.7% to just 0.5%. Since default rates and the unemployment rate only ticked up mildly, <country-region><place>Australia</place></country-region>’s real CAGR has remained relatively stable at 2.5%. 
One question is whether the long-run differences between the two markets have been driven by per capita incomes. We find that real per capita national incomes have been nearly identical over the last 36 years. 
There has, however, been a substantial disparity in inflation rates, with consumer prices in <country-region>Australia</country-region> growing at about a 1.2% per annum higher pace than the <country-region><place>US</place></country-region>. This may be related to the fact that the RBA has a substantially higher inflation target than the Federal Reserve. 
In addition to the underlying economics, a range of institutional, regulatory and tax factors have likely conspired to cause divergent outcomes. 
For example, US home owners get the benefit of tax-deductible mortgage interest payments, whereas Australians do not. This has led US borrowers to use more leverage, and hold it against their homes for longer (resulting in higher and more volatile default rates). 
Australians, in comparison, typically pay down their mortgage debt quickly (because it is expensive) over a 15-year period, well in advance of the normal loan’s 25-year term. 
In the <country-region>US</country-region>, households also pay capital gains tax above a certain threshold, whereas Australians (and those living in <country-region>Canada</country-region>, the <country-region>UK</country-region>, <country-region>New Zealand</country-region>, <country-region>France</country-region> and <country-region><place>Germany</place></country-region>) do not. 
Finally, <country-region>Australia</country-region> has a much denser urban structure, with 61% of our population residing in urban areas with more than 750,000 people, whereas the <place><country-region>US</country-region></place> is far more decentralised, with a comparable rate of just 47%. 
As always, the devil is in the detail!
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.
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