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

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

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<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

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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Strata and community title property owners are unlikely to be compensated in any carbon tax compensation package, according to lobby group Strata Community Australia (SCA).
The industry body claims about one third of energy usage in strata buildings is in common services such as lifts, air-conditioning and security lighting and is thus beyond the direct control of individuals.
Any change to energy use, SCA argues, requires a concerted and collective effort as well as specialist knowledge.
The SCA estimates there are about two million strata and community title lots in 270,000 schemes across Australia.
It has voiced its concerns less than a week before the government reveals the details of its carbon tax package on July 10.
According to the 2006 Census, 22.5 % of Australian households were in medium and high density dwellings.
According to SCA chief executive Mark Lever, any compensation package will be “fundamentally flawed” without specific measures to help Australia's 270,000 body corporates adjust to a low-carbon future.
Lever says the sector has already missed out on a “long list of past and present programs which failed to recognise that almost a quarter of Australian households do not live in standard detached housing”.
"We have seen governments time and again tailor programs for individuals and businesses and overlook the fact that, for many, basic services are provided through communal structures. “Recent examples include disaster relief, renewable energy incentives and the home insulation program," he says.
Strata Community Australia is the new name of the National Community Titles Institute, which advocates on behalf of body corporates and community title and strata property owners.
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lschlesinger-FZcF9M3vE6

Apartment and townhouse owners require carbon compo: industry body

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Lenders are taking advantage of constant media speculation of interest rate rises and the new ban on exit fees to entice borrowers to refinance into fixed rate products.
The push by lenders follows the RBA opting to leave interest rates on hold in July.
Big four bank ANZ is now forecasting the next rate rise may not be until February 2012, saying: “Australian interest rate markets are currently flirting with the idea that the next move in interest rates might be down.”
The HIA has weighed into the debate, arguing that the RBA needs to keep rates on hold for the foreseeable future.
"In this environment, a rate hike would do considerably more damage than might have historically been expected – not in the least to the housing industry,” says HIA chief economist Harley Dale.
Mortgage comparison website RateCity has recorded 18 lenders that have dropped their three-year fixed rates by as much as 60 basis points during June.
On average, fixed interest rates are now just 8 basis points above the current average standard variable rate of 7.30%, with 36 lenders listed on the RateCity database offering three-year fixed rates below that variable average.
Research compiled by RateCity for Property Observer revealed that 18 lenders dropped their 3-year fixed rates by up to 0.60%, while three lenders increased their 3-year fixed rates by up to 0.20%.
The biggest movement downwards has been made by small lenders – Select Credit union has cut its 3-year fixed rate loan by 60 basis points to 7.39% while non-bank lender AIMS Home Loans has cut its 3-year fixed rate loan by 47 basis points to 7.30%.
Of the bigger lenders, Westpac cut its 3-year fixed rate loan by 20 basis points (7.29%) and ANZ by 10 basis points to 7.24%.
According to Damian Smith, CEO of mortgage comparison website RateCity, lenders are offering attractive fixed rate home loan deals to encourage lending and to “retain current customers with longer-term deals as exit fees on variable rate loans are banned”.
“Lenders are clearly competing harder with their fixed rate deals at the moment, despite a general consensus that interest rates will rise in the coming months. 
“The ban on excessive early fees does not include break costs for fixed rate home loans, so it’s a better deal for lenders to increase their customer base for fixed loans,” he says.
However, hotspotting.com.au director Terry Ryder has warned borrowers to stop listening to media speculation, which “to date has been inaccurate”.
July mortgage statistics put out by mortgage broker AFG suggest borrowers are buying into the media speculation.
According to AFG, the percentage of borrowers who take out fixed rate loans has risen from 6.6% from February 2011 to 8.2% in July.
In contrast, introductory ‘honeymoon’ loans – where the borrower is offered a very cheap initial rate – have declined from 13.2% to 11.5%.
Mortgage Choice revealed that the popularity of fixed interest rate home loans hit its highest level in five months in June 2011, reaching 12.3% of all approvals.
The broker is urging mortgage holders to stop and think carefully before considering refinancing their mortgage following the exit fee ban.
“We want to ensure consumers understand the exit fee ban applies only to new home loans taken out after 1 July, not existing loans, and there are still other switching costs and home loan aspects that must be considered,” says Mortgage Choice spokesperson Kristy Sheppard.
She warns that borrowers who decide to switch should take note that if a current home loan has exit fees, those don’t simply disappear on July 1.
“Also, there is still a range of other switching costs that you may incur, such as discharge fees, break costs and lenders mortgage insurance. Weigh up the costs and benefits against your goals.”
The ban on exit fees, also known as deferred establishment or early repayment fees, applies only to all new home loans taken out after July 1.</body></html>

Lenders trying to entice fixed rate borrowers

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Prices for apartments in the inner-Melbourne suburb of Carlton are starting to rise following a decade of subdued activity.
Carlton, directly north of Melbourne’s CBD, comprises 14,000 residents.
It includes a high proportion of students, given its close proximity to the University of Melbourne and RMIT.
For the 10 years prior to November 2009, Carlton apartment prices increased by 2.9%, according to RP Data.
In the 10 months from November 2009 to November 2010, growth has more than tripled to 9.7% to a median unit price of $255,000
The current median stands at $275,000, an increase of 17% over the past year, but still highly affordable when compared to the Melbourne unit market, where the median unit price stands at $440,000 and is declining (down 3.8% on the year to May 2011).
In Carlton, unit prices are trading at a 2.1% discount while the 44 days they are on the market, on average, suggests there is some room for investors to negotiate on price.
Estate agents Dingle Partners list one-bedroom investment apartments in Carlton for sale between $200,000 and $220,000 and two-bedroom apartments under $500,000.
In a promotional video for the suburb, Dingle Partners lists Carlton’s close proximity to the city, its cafes and restaurants on Lygon Street, its “immaculately retained Victorian architecture”, European-styled squares and beautifully maintained public gardens as some of the attractions of the suburb.
Mario Lambiase from Ray White in Brunswick is currently marketing a one-bedroom student unit at 131 Pelham Street to investors. The unit has an annual net rental return just under $13,000.
The price is not disclosed, however another one-bedroom apartment in the same complex being sold by Moss Estate Agents is listed at $195,000 with tenants currently paying $1,325 per month.
Lambiase says the Carlton unit market has come back 5% to 10% in the last quarter.
“Buyers’ confidence is returning and they are starting to purchase,” he tells Property Observer.
According to Lambiase, there is strong investor interest in the market both locally and interstate, particurlarly given the large student community that rents in Carlton.
He lists the close proximity of Melbourne University, good transport connections, shopping and the cosmopolitan feel of Carlton as reasons to invest in the area.
Ben Williams from Hocking Stuart Carlton says investors have returned to the market, sensing there is good value in Carlton.
He says the 70%-30% split in favour of owner-occupiers over investors is now evening out.
“Rents in Carlton are very strong. They are holding up better than sales,” Williams says.
“If you are looking for an investment near to the city, this is a pretty safe place to park your money.”
Property valuer WBP says positive growth expectations for Carlton North (the residential zone north of Rathdowne Street) market remain strong in the medium and long term.
WBP attributes demand for Carlton primarily due to its proximity to the Melbourne CBD together with local facilities including parks, restaurants, bars and cafes, and universities.
WBP describes Carlton North as a “gentrified suburb with hospitality and lifestyle facilities en masse” including the cafes and restaurants on Lygon Street and green spaces of nearby Princes Park and Royal Park.
“Other local factors that support interest and underpin value include Melbourne University and local hospitals including the Royal Children's, Royal Melbourne, Royal Women's and the soon-to-be-completed Peter MacCallum,” the valuation group says.
Like Lambiase and Dingle Partners, WBP highlights nearby green spaces of Princes Park and Royal Park at Parkville, as well as the café culture and restaurants, as attractive prospects for buyers and renters.
“Carlton North is a highly-sought residential area with high value and strong growth potential.  Popular streets include Canning, Rathdowne and Station Street.
“Neighbouring suburb Prince Hill is also a popular residential location, which offers many of the same benefits as Carlton North,” the firm reports.
Carlton is also attracting developer activity, with Australand currently selling units off-the-plan for its 148-unit Lume project. A 40-square-metre, one-bedroom ground floor apartment in the Allure tower is being marketed for $430,000.
Lume will include three towers ranging in height from four to six levels around the block bound by Cemetery Road East, Cardigan, Keppell and Swanston streets. 
More than a third of the Lume apartments have been allocated as public housing.
The Carlton residential market is dominated by units, which account for 76.4% of all dwellings.
Being a student accommodation hub, 85.7% of units are rented – significantly higher than the 65.6% rental proportion recorded on average throughout the city.
As highlighted by Dingle Partners, Carlton is a well-established suburb with many preserved Victorian-era, heritage-listed buildings.
As a result, the majority of units are situated within old buildings, maintaining the architecture of their time.
According to the St George National Hotspots report, some such old buildings have received significant external renovations, while some newer buildings have taken their place, offering modern conveniences such as gyms and pools.
“As is the case for older suburbs of Melbourne, small cottage and terrace-style dwellings are still quite prominent and are likely to afford significant internal renovation potential,” the St George report says.
Median rents for Carlton units are recorded at $380 per week, and this figure coupled with the median unit price results in an indicative gross rental yield of 7.7%.
The suburb is well serviced by trams providing easy access to the suburb and the CBD.
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Hotspot: Investors tap into Carlton student rental market

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A house in Western Australia that debuted in the SQM most discounted list last winter has returned.
Described by SQM’s Louis Christopher as a seemingly aesthetically pleasing home, the four-bedroom Midland house comes with an asking price of $850,000 – a further $50,000 slashed off the price since SQM last reported it.
”This brings this property's total discount in percentage terms to 55%, having been discounted by over one million dollars since originally priced at $1,900,000,” Mr Christopher said.
It has now been advertised on the market for over 680 days, he said.
“All things considered, perhaps the original asking price was overinflated – with a last sold price of $720,000 in December 2007, a price tag of $850,000 seems slightly more realistic for a property in this Perth suburb,” he said.
Top ten most discounted properties
Rank: 1
Address: 4 Flora Street
Suburb: Midland
Postcode: 6056
First seen: 16/08/2009
Initial price: $1,900,000
Now asking: $850,000
Reduction: 55%
Days on market: 680
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008173508">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008173508</a>
 
Rank: 2
Address: 1350 Wynnum Road
Suburb: Tingalpa
Postcode: 4173
First seen: 06/11/2010
Initial price: $700,000
Now asking: $380,000
Reduction: 46%
Days on market: 231
 <a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579</a>
 
Rank: 3
Address: 3 Boolari Road
Suburb: Gosford West
Postcode: 2250
First seen: 08/07/2009
Initial price: $990,000
Now asking: $580,000
Reduction: 41%
Days on market: 717
 <a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903</a>
 
Rank: 4
Address: 1/21 Ocean Drive
Suburb: Coogee
Postcode: 6166
First seen: 23/05/2010
Initial price: $2,700,000
Now asking: $1,600,000
Reduction: 41%
Days on market: 399
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670</a>
 
Rank: 5
Address: 232-234 High Central Road
Suburb: Macleay Island
Postcode: 4184
First seen: 11/01/2009
Initial price: $279,000
Now asking: $175,000
Reduction: 37%
Days on market: 896
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500</a>
 
Rank: 6
Address: 25 Vicary Street
Suburb: Triabunna
Postcode: 7190
First seen: 02/08/2010
Initial price: $299,000
Now asking $189,000
Reduction: 37%
Days on market: 329
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614</a>
 
Rank: 7
Address: 290 Viveash Road
Suburb: Swan View
Postcode: 6056
First seen: 05/06/2008
Initial price: $2,290,000
Now asking: $1,500,000
Reduction: 34%
Days on market: 1117
&lt;<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295</a>
 
Rank 8
Address: 46a Stock Road
Suburb: Attadale
Postcode: 6156
First seen: 21/03/2010
Initial price: $2,690,000
Now asking: ^$1,790,000
Reduction: 33%
Days on market: 462
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106404560">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106404560</a>
 
Rank: 9
Address: 1/16 Dewar
Surburb: Ledge Point
Postcode: 6043
First seen: 15/11/2009
Initial price: $375,000
Now asking: $250,000
Reduction: 33%
Days on market: 588
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106138206">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106138206</a>
 
Rank: 10
Address: 60 Summerfields Drive
Suburb: Caboolture
Postcode: 4510
First seen: 30/04/2011
Initial price: $362,000
Now asking: $249,000
Reduction: 31%
Days on market: 57
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107363856">https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107363856</a>
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jchancellor-FAypfDUnLy

WA tops list of 10 most-discounted properties: SQM

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In the current buyer’s market we all want to buy our new home or property investment at the lowest possible price. On the other hand, the vendor wants the highest price they can get.
You know that the asking price quoted by the selling agent will usually be more than the owner is happy to accept for their home. It's just part of the real state negotiation game.
If you’ve been reading that there are more properties for sale than ever, that properties are on the market longer and that vendors are needing to discount their asking prices to get a sale, you’re probably wondering how much should you offer when negotiating for your next property?
If you ask the selling agent what price you should offer, you're asking the wrong person. Remember, the agent is paid by the seller to represent them and to get the best price possible. Despite this, I would still ask them what they would consider a fair offer, and then ask them to justify it with a list of comparable sales.
But unless you use a buyer's agent to help you negotiate, you are going to have to rely on your own research to work out what the property is worth – not just what the selling agent tells you.
By the time you end up at the negotiation table, you should have looked at many properties and have a pretty good idea of what similar homes in the area have sold for. Remember, it's the final sale price – not the asking price – that you need to focus on when you're doing your pre-negotiation homework.
In the current market most properties sell for less than their asking price. There is no standard discount, but as everyone knows there will be some 'argy-bargy' about the price as agents tend to list the property for sale at an asking price usually about 5-10% more than the vendor will accept to sell their home.
This means the asking price is just a starting point for the negotiations.
If you pay what the seller is asking, you could be wasting money. The trick is to know how much less the seller will accept. Sometimes it's only a few thousand dollars. In a buyer's market like we’re experiencing, many vendors are prepared to drop their asking price, especially if their property has been for sale for some time.
Before deciding what price to offer, here are five questions you should consider asking:
1. How did the vendor come to the asking price for their home? Was it from the agent's suggestion or because that's how much they need to buy their next dream home? Some sellers are unrealistic and unlikely to come down from their asking price if they have to get a certain amount for a particular reason. Others are still hoping to get the price their neighbour achieved last year.
2. Have there been any other offers made? This lets you know if you have any competition and how serious the vendor is about selling their home for a reasonable price.
3. How long has the home been on the market? If it's just been put up for sale, the seller may not be anxious to accept the first offer. If the home has been on the market for several months it's more likely the seller would be ready to accept your offer.
4. Why is the vendor selling? Are they going through a divorce? Do they have to move interstate urgently? Have they already bought another home that would put them under pressure to sell their current home? This will let you know how motivated the seller is.
5. Has the asking price been reduced during the time the property has been on the market? This will tell you whether the seller is really keen to offload their home and also let you know that you might have a motivated seller on your hands, and perhaps greater bargaining power.
Good luck with your negotiations!
Michael Yardney is the director of Metropole Property Investment Strategists <a href="https://www.metropole.com.au/">https://www.metropole.com.au/</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the Property Investment Update <a href="https://www.propertyupdate.com.au/">https://www.propertyupdate.com.au/</a> blog.
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myardney-DFoGhGbSJX

Five questions to ask before making an offer on property

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The Reserve Bank board has, as expected, kept interest rates on hold at 4.75% in July.
Slower employment growth, sluggish household credit growth and inflation running at the bottom half of the target range were listed as reasons for keeping rates on hold for the seventh-straight meeting.
The Australian dollar eased slightly against the US dollar following the announcement – a sign the market now anticipates the next rate rise is now further off.
At 2.35pm the dollar was trading at $1.067 to the US dollar, compared with $1.07 prior to the announcement.
“Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5%,” said RBA governor Glenn Stevens in a statement following the announcement.
“Most leading indicators suggest that this slower pace of employment growth is likely to continue in the near term. Reports of skills shortages remain confined, at this point, to the resources and related sectors.
“After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.
“Credit growth remains modest. Signs have continued to emerge of some greater willingness to lend and business credit has expanded this year after a period of contraction. Growth in credit to households, on the other hand, has slowed. Most asset prices, including housing prices, have also softened over recent months.
“Year-ended CPI inflation is likely to remain elevated in the near term due to the extreme weather events earlier in the year. However, as the temporary price shocks dissipate, CPI inflation is expected to be close to target over the next 12 months. In underlying terms, inflation has been in the bottom half of the target range, though a gradual increase is expected over time.”
Mr Stevens notes that while the global economy is continuing to expand, the pace of growth slowed in the June quarter.
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RBA leaves rates at 4.75% in July

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Supporting Colliers International’s research prediction earlier this year that tenants would start decentralising from the CBD, The Spotless Group is set to relocate its international head office to St Kilda Road, Melbourne.
Taking the whole of 549 St Kilda Road on a 10-year lease, the move follows the departure of former owner-occupier Chartis Insurance in November 2010 after the sale of the property to Nikos Property Group.
The deal, negotiated by Colliers International’s office leasing director Ben Christie, will see Spotless relocate from 350 Queen Street in the CBD, which was built by property developer Warren Anderson and Japanese partners in 1990.  It wasn’t until six years later that Spotless moved into the octagonal Queen Street building, taking 5000 square metres on levels two to five of the 20-storey building. The building had been empty six years.
Ryder Commercial’s website indicates it negotiated a recent Spotless lease at 350 Queen Street. It doesn’t give the  date or space but indicates it was at $285,500 per annum for three years.
The St Kilda Road leasing announcement has been billed as the largest new leasing deal transacted on St Kilda Road for more than a decade.
Number 549 St Kilda Road has a total building area of about 9,545 square metres, and 209 car spaces are being taken up with the lease.
Spotless will be use part of the ground level as a staff café, with the possibility to later open it to the public.
“The fundamentals of the building were ideal for Spotless’ needs, because it provided six, contiguous whole floors and large floor plates of around 1,570 square metres,” Mr Christie said.
Ari Singer, asset manager for Nikos Property Group, said since purchasing the building, the private investment group had been planning one of the most substantial refurbishments ever undertaken on a building in St Kilda Road. 
“We saw enormous potential with 549 St Kilda Road, given tightening market conditions and the lack of office stock available for tenants seeking areas of 5,000 square metres and above in the CBD and fringe markets,” Mr Singer said.
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Spotless heads to St Kilda Road in 10-year deal

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The near-completion of the government’s $16.2 billion Building the Education Revolution (BER) project as well as the imminent end of other stimulus measures have contributed to a dramatic turnaround in sentiment among the building sector.
Peter Jones, chief economist at the Master Builders Australia, says the poor outlook generated from the June quarter survey is “ringing alarm bells”.
The building industry activity index has again fallen below the 50-point ‘neutral’ mark, meaning builders expect the overall industry to be lower over the next six months relative to the past six months.
“The BER was critical in terms of cushioning the industry,” Jones tells Property Observer.
“It has been extraordinarily positive and incredibly beneficial for construction and the wider economy,” he says.
Jones says the expectation has been that as the project neared completion, other sectors would take up the baton, but this has not happened.
“It has been a clunky gear change,” he says.
May ABS figures show new private sector home approvals have plummeted by a seasonally adjusted 7.8%, with NSW recording its second worst May approval figure in statistical history and Queensland’s worst May figure since 1987.
According the MBA, the commercial building outlook is weaker than residential.
The non-residential index measuring current conditions registered 43.3 in the June quarter, up on the previous reading but remaining well below the ‘satisfactory’ 50 level.
Furthermore, expectations about future building activity have fallen back in the June quarter after ticking higher in the previous two quarters. The index remains below the neutral mark and non-residential builders face the prospect of falling activity levels as government stimulus programs come to an end.
For the residential sector, conditions remain unchanged in the June quarter with builders expecting little change in residential building conditions over the next six months. The index fell back to 48.4 in the June quarter from 51.4.
The MBA survey of 470 builders across all sectors of the industry uncovered a concern that private sector demand will not be able to fill the gap left by the BER, social housing and other government stimulus programs.
The Building the Education Revolution project alone has generated 24,000 projects, according to government statistics.
Other stimulus programs that have been culled include the removal of stamp duty concessions for Queensland non-first home buyers (ending on August 1, 2011) and an end to stamp duty concessions for Tasmanian first-home buyers, which were removed on June 17, 2011.
Besides an expected drop in building activity, the survey revealed a host of other factors contributing to what Jones calls a “dramatic turnaround in builder sentiment”.
These include builders reporting a drop in their own-business activity fell in the June quarter (from 56.3 to 55.7 on the index and trending down for the last four quarters) and an overall decline in profitability.
Furthermore, builders do not expect profitability to improve over the remainder of 2011, with the profitability expectations index trending down and returning to a neutral position, following some improvement during the preceding year.
Profitability expectations are now “not far from lows reached during the GFC and well down on the much healthier levels of profitability achieved prior to the global crisis”.
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Construction outlook “ringing alarm bells”: MBA

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In one corner we have journalists at The Economist newspaper, who in a recent survey make the extraordinary claim that Australian house prices are overvalued by 55% using their preferred benchmark. In the other corner we have a crowd of the most respected economic minds in Australia, including the Reserve Bank of Australia, the Commonwealth Treasury, almost all market economists, and leading house price index providers, such as RP Data and Rismark.
This latter cohort essentially contends that The Economist does not know what it is talking about. They argue that Australian house prices are not materially overvalued, and there is no reason to believe that they must suffer precipitous price falls in order to obtain some more desirable valuation benchmark.
This group has also produced vast reams of analysis showing that robust demand and supply-side fundamentals underpin Australian housing valuations while dwelling-price-to-income ratios remain unexceptional by international standards. In fact, recent research by Rismark has demonstrated that house price growth in Australia’s capital cities and our regional areas has not kept pace with disposable household income growth since the end of the last cycle in 2003.
It was only a few months ago in The Economist’s backyard, the city of London, that RBA Governor, Glenn Stevens, was tossed a question about whether he was worried about Australian housing valuations. In the past – most notably in 2002 and 2003 – the central bank has not hesitated to express reservations. Yet Stevens responded:
“Well, let’s establish a few facts… For the past year or two, house prices haven’t done anything much at all… We continue to see arrears rates on mortgages very low by global standards ...We don’t have a gearing up going on now… I don’t think we have huge rises going on... that’s probably not top of my list of worries…
“The other thing I’ll say is that it’s quite often quoted very high ratios of price to income for Australia, but if you get the broadest measures, a country-wide price and a country-wide measure of income, the ratio it about 4 ½ and it hasn’t moved much either way for 10 years. And that is higher than it used to be, but it’s actually not exceptional by a global standard as far as I can see.”
While the typically conservative RBA thinks Australia’s housing market is sitting pretty, The Economist’s survey suggests it is massively overvalued. In order to decipher who is right or wrong here, one has to dive into the detail.
The Economist arrives at its 56% estimate by taking the ratio of median house prices to median rents, and then comparing current levels with their “long-run average”. There are many technical problems with this approach. One obvious issue is that we do not observe rents for more than two-thirds of the entire housing stock, which is ‘owner-occupied’. So The Economist is actually comparing the yields on rental properties with the prices of owner-occupied homes. Imputed owner-occupied rents are likely to be different to those deriving from investment properties given the far greater control rights associated with the former.
But this is a trivial error in the scheme of things. There is a much deeper problem with The Economist’s logic, which both the RBA and we here at Rismark have repeatedly highlighted. Let me explain.
Anyone can compare the current observed values of a range of economic indicators, such as interest rates or inflation, with their ‘long-term’ averages. But we need to ask ourselves whether this is an informative exercise, or potentially misleading.
For example, applying The Economist’s way of thinking to Australian interest rates would lead one to conclude that current rates are much too low. Indeed, the analysis implies that Australian government bonds are massively overvalued since today's 10-year yields of 5.5% more than a third lower than the 30-year average of 9%.
Yet the body that sets interest rates – the RBA – has repeatedly told us that present-day lending rates are, in fact, “a little higher” than their long-term averages. So what is going on?
As an alternative, let’s examine inflation. Today the RBA believes that the acceptable rate of consumer price inflation is around 2.5 per cent per annum. Yet the 30-year average rate is 4.2% per annum. Does this mean that the RBA should substantially revise up its inflation target? Of course not.
These variables were not selected by chance. The truth is that the crux of this debate hinges on how inflation, interest rates, household debt, and house prices have varied over the last three decades.
In its survey, The Economist takes median house prices and median rents over the last circa 30 years – which is the longest horizon over which these data are publicly available – and calculates a long-term ‘average’ ratio, which it assumes to be the ‘correct’ benchmark. It then compares current house prices and rents to this 30-year benchmark. If current ratios are above (below) this 30-year average, The Economist claimshey are over- (under-) valued.
The Economist does not question whether the old housing ratios might be nonsensical to today’s home owners as a result of: (a) fundamental changes in the structure of the economy wrought by the fact that interest rates over the past 15 years have, on average, been 43% lower than interest rates in the 15 years that preceded that period (see first chart below); (b) the fact that average inflation since the middle of the 1990s has been 55% lower than inflation in the 15 years prior (see second chart); or (c) the fact that the rise of two-income households and the female participation rate in concert with a near halving in the nominal cost of debt might have triggered a once-off upward increase in household purchasing power, and hence housing valuations.
<img src="/images/stories/graph-1---kate1.gif">
<img src="/images/stories/graph-2---kate1.gif">
Now we have tried to replicate The Economist’s analysis using the longest publicly available time-series of median houses prices and median rents in Australia, which one can purchase from the Real Estate Institute of Australia. This covers the period June 1982 through to December 2010.
If we adopt The Economist’s method, we conclude that the current ratio of median Australian house prices to median rents is about 38.7% above its 28-year average. We do not know how The Economist gets its 56% estimate, but ours is in the same general ballpark.
Interestingly, we can get a 56% number if we look at inflation over this exact same period. Australia’s current inflation rate of 2.7% would have to rise by 56% to agree with its long-term average of 4.2% since June 1982. But, of course, nobody in their right mind would claim that this makes any sense. It is just that The Economist uses this logic when it analyses housing.
One can undertake a similar exercise with interest rates. The headline mortgage rate today is 7.8%. The average headline rate since June 1982 is 9.9%. Does this then mean that Australian mortgage rates are currently way too low? Applying The Economist’s method, Aussie home loan rates should rise by 27% in order to correspond with this historical benchmark.
As we mentioned earlier, imposing that logic on the Australian government bond market would imply that it is in the throes of an enormous bubble since yields are more than a third lower than their 30-year average.
To really understand what is going on here one needs to examine the time path of three economic variables: inflation; interest rates; and rental yields.
As you can see from the chart above, Australian inflation has steadily declined from its high and volatile double digit levels in the 1980s to sit within the RBA's 2 to 3% per annum target band during most of the past two decades. This has allowed the central bank to in turn reduce interest rates.
In the RBA’s view, the long-term reduction in inflation has mainly been a function of the early 1990s recession and its adoption of what is known as an ‘inflation target’. The RBA’s 2 to 3% target was first taken up in about 1993, and more formally enshrined in an agreement between the RBA and the Treasurer in 1996.
Between 1982 and 1995, mortgage rates in Australia averaged 12.8%. Since the start of 1996, they have averaged 7.3% (or 43% less). The RBA considers today’s mortgage rate of 7.8% to be slightly “above” its historical average because the RBA believes that the history that is relevant to today starts with the application of the inflation targeting approach to monetary policy in the early 1990s. Yet we don’t hear The Economist claiming that Australian mortgage rates are too low. (In fact, Australian mortgage rates are today amongst the highest in the developed world.)
The RBA has regularly argued that the structural decline in inflation, and the resultant downward shift in nominal interest rates, in turn drove a once-off upward shift in household’s borrowing (and purchasing) power. This has been reflected in the once-off jump in household debt levels, which basically occurred between 1996 and 2003. This marked rise in household borrowing power also boosted their purchasing power and hence the value of readily leveraged assets, such as houses.
In the following chart, we track the change in Australian mortgage rates and rental yields since 1982. The message is clear: the secular decline in nominal interest rates has propagated a corresponding fall in yields.
<img src="/images/stories/graph-3-kate1.gif">
Our final chart tells the same story by comparing Australia’s dwelling price-to-disposable household income ratio (bottom line) with Australia’s rent-to-dwelling price ratio (top line) over the last two decades. Observe how these ratios look like mirror images of each other. The common driver has been inflation and interest rates.
The RBA believes that as interest rates started to stabilise at their new, much lower levels in the late 1990s, and households got comfortable with the idea that both rates and inflation were unlikely to jump back to the double digit levels of the 1980s, there was a consequential upward increase in the valuation 'level' of housing assets. This had been fully priced by the early 2000s, which is why the two ratios track sideways thereafter.
To be clear, the RBA's ability to get inflation under control (and thus cut the long-term level of nominal interest rates) caused increases in the household debt-to-income, household debt-to-GDP, house price-to-income, and house price-to-rent ratios. In the jargon, these were 'level effects' rather than 'growth effects'. This means that the very rapid double digit credit growth of the 1990s and early 2000s will not be repeated anytime soon.
<img src="/images/stories/graph-4-kate1.gif">
Unless you believe that we are going to get double digit inflation and 17% mortgage rates, which most observers think are near impossibilities, the housing market benchmarks of the 1980s are irrelevant to home owners in the second decade of the 2000s. The same principle applies to The Economist’s analysis.
It would, of course, be wonderful if our ever-changing, multi-dimensional world could be judged by crude long-term ratios that blissfully ignore all sorts of key facts. Unfortunately, that's just a recipe for confusing further an issue that already has many confused.
Looking ahead, it is highly likely that Australian house prices will track household earnings in what PIMCO's Bill Gross has aptly described as the 'New Normal'.
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Australian house prices to track household earnings

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Owner-occupiers are taking advantage of slumping industrial property prices to buy up properties in the regional NSW industrial markets of Newcastle and Wollongong. 
In Wollongong, 95km south of Sydney, heavy and light industrial prices have fallen significantly in recent years, according to market analysis contained in the July 2011 Herron Todd White report.
Properties which sold prior to the GFC have subsequently changed hands at discounts of up to 40%.
Price falls have been greatest in land zoned for heavy industrial, with few recent sales available to establish current values.
The market has bas been “subdued for some time”, according to the report, with occupier demand effectively limited to companies which have a specific business need to be located within the Illawarra.
A lack of interest in Wollongong industrial space from outside the Illawarra region, combined with its inability to compete with Sydney, suggests rental growth is unlikely.
Consequently, there is little demand for industrial properties in the area with owner-occupiers accounting for the greatest proportion of sales in the area.
Industrial properties within Wollongong are achieving net face rental rates between $70 and $125 per square metre, in line with the rental rates achieved by properties within Western Sydney.
A similar story is being played out about 260 kilometres up the coast in Newcastle, where owner-occupiers are dominating an industrial market characterised by falling rental rates.
Herron Todd White’s Newcastle valuation team reports an increase in incentives offered for difficult-to-lease stock and rental rates “regularly below $100 per square metre “specialised in nature or with overhead gantry cranes”.
Two owner-occupier trends are emerging in Newcastle: the use of self-managed superannuation funds to purchase industrial properties, and smaller professional firms buying industrial units, fitting them out as offices and having an area of storage and parking in the warehouse component.
“This also allows for easy expansion, should they require more office space. We know of many set-ups like this as the entry price is cheaper than buying office space and usually parking is easier for staff,” the report says.
The expansion of the mining sector in Newcastle is having a small trickle-down effect, with some leasing deals and sales occurring “but not significantly so”.
An exception in the Newcastle market is the port area, where significant investment in coal infrastructure is being made in light of the mining boom.
However, according to Herron Todd White, it remains uncertain whether this investment will have a flow-on effect into the greater Newcastle area.
Similar softer market conditions are in play in Byron Bay on the NSW far north coast, where industrial property owners are being forced to accept low returns on their investments.
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