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

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

<html><body>
Buying a new home in Western Australia is “akin to navigating a plane through the volcanic ash cloud emerging from a vociferous eruption”, according to the Housing Industry Association.
This dire analogy follows news that new home sales in WA decreased by 6% in May (compared with a national of -2.4%) to what the HIA says are “dangerously low volumes”.
Over the three months to May 2011, new house sales in WA have fallen 5.2% on the previous quarter.
“Housing affordability has deteriorated in Western Australia in recent years in the face of, among other factors, inadequate land supply and a consequential sluggish rate of new home building,” the HIA’s May 2011 quarter new home sales report says.
“If any inroads are to be made on the Western Australian affordability dilemma, policy action is required to provide a shot of adrenalin in addition to longer-term reform.”
The May 2011 decline in new home sales is led by NSW, where new home sales have fallen by 7.8%. However, the state recorded growth in new home sales for the six consecutive months.
New home sales in NSW are up 21% in the May quarter, compared with the previous quarter.
The outlook for NSW new home sales is poor, given uncertainty over interest rates
“New South Wales desperately needs to maintain upward momentum in new home sales, and secure a pattern of consistency. Failure to do so will only see a worsening of the housing shortage and ongoing deterioration in already poor affordability conditions,” the report says.
“Expediting land supply, hastening building approval processes and reducing excessive new infrastructure taxation would go a long way toward this.”
Victorian new home sales have also declined sharply in May – down 6.7%.
The HIA calls this result a “discontinuation of a heartening upward trend in new home sales”. For the May 2011 quarter, though, Victorian new home sales are up 7.8%.
In South Australia, new home sales have fallen 3.2% in May, the seventh consecutive month of declines. They are down 13% for the May 2011 quarter.
“New [South Australian] home sales continue to stumble in the face of some formidable headwinds. The foremost headwind would no doubt be above-average bank lending rates, combined with ongoing rhetoric suggesting the need for more hikes this year,” the HIA report says.
“However, the second-most influential factor keeping activity down is credit constraints. Small to medium developers are struggling to acquire finance from a reduced volume of bank lenders who, in fact, have a very low appetite for debt in the property industry at this present time.”
Sales of detached houses increased by 19% in Queensland, but from a very low base. For the quarter they are up 5%.
The HIA says the Building Boost Grant of $10,000 announced in the Queensland state budget for those households who build or buy a new home bodes well for some rallying in new home sales in the final months of 2011.
“However, given the policy won’t be introduced until August “it’s likely to be really tough going for the new home building industry at least until the fourth quarter of this calendar year,” it says.
National unit sales continue to be volatile, up by a healthy 23.3% for the month but still down 8% over the three months to May.
Nationally, combined new homes and units sold in May 2011 eased by 0.2% to leave sales volumes well down on their average for the last twenty years.
"Leading indicators of new home construction are universally weak and unfortunately the May update for new home sales is no exception,” says HIA chief economist Harley Dale.
“The combination of supply-side obstacles which include a lack of available finance, and softer demand which is not helped by incessant chatter about a fictitious house price bubble, is reflected in new home building indicators being well down,” he says.
“In the absence of policy action it is hard to see this situation turning around in the foreseeable future.”
</body></html>

lschlesinger-FZcF9M3vE6

WA new home sales volumes at dangerously low levels : HIA

<html><body>
During the leasing period of your property it is extremely important to always be reviewing the marketing, and also your asking rent. Little things can make a big difference, such as having good-quality photographs, including lifestyle photos. Showing prospective tenants the lifestyle a suburb or building can offer them can be a great selling factor. It is best to include a floor plan whenever possible. It’s no longer acceptable to have one photo as your marketing – people expect more nowadays, and how are you ever going to secure a tenant with minimal vacancy without implementing these simple ideas?
Your asking rent too must be reviewed and regularly. Look at what has become available in the area, what other styles of properties are you competing with – are they new, old, etc. Does your property manager make follow-up calls to all prospective tenants who attend their open for inspections or private inspections? What did they like about the property? What didn’t they like? This simple feedback is imperative information for all owners and property managers. If you don’t know there is a problem, how can you fix it?
After all your research you may realise the rent needs to be reduced. This can sometimes be a difficult conversation for some property managers to have, however you need to outline the true cost in the long term.
Isn’t it better to receive some rent rather than no rent? For example, if you are asking $400 per week but the going rate for similar properties appears to be $380 to $390 per week, by reducing your asking rent by $10 per week you will get $390 a week, a much better situation than receiving no income at all.
When you break it up further, that $10 per week equates to $44 per month, which in turn equates to $528 per year. The property would only need to remain vacant for another two weeks, and there goes another $800.As a Property Investor myself I know what I would do.
Leah Calnan is the director of <a title="Metro Property Management homepage" target="_blank" href="https://www.metropm.com.au">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
</body></html>

leahcalnan-pwE6GD6KY9

Market your property well, and review your asking rent regularly

<html><body>
The prospect of extra income from adding granny flats to the rear of properties has prompted a wave of property investors in Sydney's western suburbs seeking to secure higher total returns, according to the valuation firm Herron Todd White.
They have been seeking out the older 1960s and 1970s three-bedroom homes on 600 square metres to 700 square metres of land and subsequently obtaining council approval to construct large, purpose-built granny flats in the backyard, the report says.
Penrith and St Marys were at the forefront of the trend, with the average cost of a property $330,000.
The investors were then seeking to improve their rental income through building granny flats.
The cost of adding a granny flat was about $70,000 plus about $30,000 for a basic renovation of the existing dwelling.
"So after spending $430,000 on average, three-bedroom houses in these locations secure rental rates around $330 a week, with granny flats achieving rental rates around $200 a week, taking the total weekly income to $530 a week or $27,560 per annum,” the HTW report says.
"Based on these preliminary calculations, a rental return of 6% to 6.5% may be possible."
HTW warned there are a few points that any astute investor should check out before diving in.
"Many of these strategies are being spruiked by specialised investment firms.
"Secondly, this a recent trend and is yet to be tested from a re-sale point of view, we do not yet know if the $100,000 spent on capital improvements will translated to a $100,000 increase in the properties’ value.
"Thirdly, there may be various tax implications for the investor," it notes.</body></html>

jchancellor-FAypfDUnLy

Sydney investors building granny flats to increase rental yields

<html><body>
Australians' national interest depends on foreign investment, Treasury Secretary Martin Parkinson has warned.
And Australians face declining living standards if they do not work harder.
The Treasury Secretary said in speech last night that Australia could not rely on the mining boom to prop up the economy and if productivity did not improve incomes would not be sustainable.
Given the recent calls for new rules governing overseas investment in Australian farmland, Parkinson suggests discouraging capital from legitimate foreign sources could harm the country's potential wealth.
"I think the issue around foreign ownership, whether it's of the mining sector or the agricultural sector, has to be handled quite carefully," he says.
"And so you can see, there have been a number of political interventions this week, I just hope that they are handled with clear recognition of where Australia's national interest lies."
The Greens, members of the federal Coalition members and independent Senator Nick Xenophon have been seeking stronger rules for farmland purchases by foreign companies.
Parkinson also says economic reforms should make it easier for people to move to rapidly growing mining areas.
He says lower stamp duty – which could encourage people to sell their houses and move – and other reforms that would make it easier for people to transition to new jobs were sensible.
Parkinson has previously worked at the International Monetary Fund on the reform of international financial architecture and in the early 1990s served as senior adviser to Treasurer John Dawkins.
The speech was to the Melbourne Institute Economic and social outlook conference.
</body></html>

Treasury Secretary warns foreign investment in Australian farmland is crucial

<html><body>
Darwin is currently Australia’s best-performing housing market, while Perth’s house price decline continues despite its strong market fundamentals.
Dwelling prices in the Northern Territory capital city increased by 2.1% in the three months to May 2011, compared with a nationwide capital city decline of 1.2% over this period, according to the RP Data?Rismark Hedonic Home Value Index.
For the year to date, Darwin dwelling prices are down by 3.2%, led by a poorly performing units market.
Unit prices are down 6% in May, 2.2% over the May quarter and 5.2% for the year to date, dragging the median price down to $383,500.
In comparison, house prices are up 0.8% in May, up 3.2% for the May quarter and down 1.7% for the year, with the median house price sitting at $497,000.
 
Darwin’s median dwelling price now stands at $460,000.
Darwin currently has the strongest rental market, with gross rental yield of 5.4% for houses and 5.7% for units.
RP Data research director Tim Lawless says the latest index shows that gross Australian apartment yields have now risen to 5%.
Apart from Darwin, unit rental yields are improving for property investors in Canberra (5.4%), Brisbane (5.2%) and Sydney (5.2%).
The worst yields are in Melbourne (4.2%), Adelaide (4.6%) and Perth (4.9%).
Perth recorded the biggest drop in dwelling prices for the three months to May 2011 as capital city prices continue to decline at a greater rate than those in the rest of the country.
Perth house prices are down 4.5% for the quarter to $475,000, and down 5.1% for the year.
The median price of a Perth dwelling currently stands at $462,500. For the year, Perth dwelling prices are down 7.5%.
“Despite what appears to be fairly strong fundamentals, the Perth housing market doesn’t appear to be turning just yet,” Lawless says. “For a city that is recording rapid population growth, low unemployment and a large private capex boom, house prices have nevertheless been contracting since late 2007 after years of above average capital growth in the pre-GFC period
“The critical missing piece of the puzzle seems to be buyer demand.”
<a href="/images/stories/joyejune303.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/joyejune303thumb.jpg"></a>
For the three months to May, Hobart’s dwelling prices declined by 1.9% ($315,100), Melbourne’s by 1.8% to $500,000, Brisbane’s by 1.4% to $425,000, Adelaide’s by 1.3% to $382,500 and Canberra’s by 0.7% to $483,750.
The Sydney housing market remains flat, declining just 0.1% in the May 2011 quarter to $522,000. For the year to date the market is up 1%, the only capital city to record positive growth for 2011.
</body></html>

Darwin bucks national trend of falling house prices: RP Data-Rismark

<html><body>
In all categories of retailing, Australian retailers pay significantly higher rents than offshore retailers in comparable markets, according to research by Morgan Stanley.
The findings will add weight to calls by newsagents and booksellers, among others, for greater market regulation of rents. Newsagents and booksellers argued for more regulation in their submissions to the Productivity Commission’s inquiry into retailing.
The investment bank compared Australian retailers to comparable ones in the US and UK with similar sales densities, rather than make what it calls “futile” across-the board comparisons.
The biggest gaps in rental costs are to be found in the speciality retail sector, where Australian retailers pay rents about three times higher (and sometimes more) than similar US business.
Westfield Speciality Retail pays the most for shop space, an average of US$1,428 per square metre, followed by Premier Investments (Peter Alexander, Just Jeans, Portmans etc), which pays US$1,202 per square metre.
In comparison, US competitor Limited Brands (Victoria’s Secret, Pink, La Senza) pays only US$421 per square metre while clothing retailer GAP pays US$424 per square metre.
A smaller but still substantial gap exists in department stores rents for Australian giants Myer and David Jones, which pay US$227 per square metre and US$206 per square metres respectively.
Only the UK’s Marks &amp; Spencer (US$216 per square metre) pays more than Myer.
Upmarket US department store group Saks, which has its flagship Fifth Avenue store on the most expensive retail strip in the world (annual rents of US$23,888 per square metre) pays $149 per square metre, while at the cheaper end of the US market, JC Penny pays just US$47 per square metre.
In the electronics category JB Hi-Fi pays US$512 per square compared, with US-based retailer Best Buy, which pays US$288 per square metres on average.
<img src="/images/stories/morganstaleychart.jpg">
In its submission to the Productivity Commission, the Westfield Group defended the rents it charges retailers, saying they are a product of market forces.
However, collapsed bookseller REDGroup highlighted rental costs as a major issue facing retailers, and the Australian Newsagents Federation claimed in its submission that Australia’s 1,500 newsagents are at the mercy of their landlords when it comes to negotiating rents and leasing terms.
</body></html>

Australian retail rents the highest in the world: Report

<html><body>
The Aussie housing market remains a tale of two superficially conflicting dynamics. On the one hand, prices are continuing to slip, albeit at a relatively benign rate. On the other hand, very low rental vacancy rates are fuelling impressive growth in rental returns. Total returns are, therefore, likely to be in positive territory, which compares well with other asset classes, such as shares.
This morning we get the latest RP Data-Rismark house price index results, which are the benchmark that economists and the RBA watch most closely.
Drawing on more than 110,000 home sales nationally in 2011, the RP Data-Rismark Home Value Index for Australia’s capital cities declined by 0.3% (seasonally adjusted) in the month of May (or by -0.5% in raw terms). The flash April estimate was revised down slightly from -0.3% to -0.4%.
Capital city home values have now fallen for the last five consecutive months, with by far the worst seasonally adjusted result coming in the month of January (-1.2%), which accounts for 45% of the 2011 decline.
The softening in Australian home values is delivering a valuation dividend, with Australia’s dwelling price-to-disposable income ratio falling to 4.2 times (see chart), which is its lowest level since June 2003, according to Rismark’s analysis.
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyejune301.jpg"><img src="/images/stories/joyejune301thumb.jpg"></a>
RP Data-Rismark’s Index shows that gross Australian yields have now touched the 5% threshold. The best rental yields can be found in <city>Darwin</city> (5.7%), <city>Canberra</city> (5.4%), <city>Brisbane</city> (5.2%) and <city><place>Sydney</place></city> (5.2%). The worst yields are in <city>Melbourne</city> (4.2%), <city>Adelaide</city> (4.6%) and <city><place>Perth</place></city> (4.9%).
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyejune302.jpg"><img src="/images/stories/joyejune302thumb.jpg"></a>
Over the three months to May 2011 dwelling values in Australia’s capital cities have retraced by 1.2% on a seasonally adjusted basis. In raw terms, dwelling values have fallen by 1.3%. The quarterly rate of decline has, however, moderated since the end of March when home values were off by 2.0%, care of a flood-affected January.
Over the 12 months to end May, Australian capital city dwelling values are now down 2.3% (seasonally adjusted). If we just look at the first five months of 2011, Australian home values have stepped back by 2.7% (seasonally adjusted). However, in raw terms, actual dwelling prices are only off 1.2% in 2011. The difference between these latter two estimates is a mostly a function of the fact that the first few months of the year are normally very strong, but this year we got hit by the floods. Accordingly, the seasonally adjusted numbers look especially bad.
Across the capital cities performance has been varied, and have run against the grain of what one might expect if focusing purely on Australia’s nascent capital expenditure boom. <city><place>Sydney</place></city> is the only market to have recorded a modest capital gain over the last year (up 1.0%). Homes in <city><place>Canberra</place></city> have also held ground (-0.1% over the year). All other capitals have slipped into the red, with some down by significant margins.
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyejune303.jpg"><img src="/images/stories/joyejune303thumb.jpg"></a>
The two weakest conurbations have been Perth, where dwelling values are down 7.5% year-on-year, and Brisbane, where capital growth is -5.9% over the year.
 After extraordinary capital gains in recent years, Darwin (-3.2%) and Melbourne (-2.9%) have also both experienced small corrections. Interestingly, in the last three months the laggards have again been Perth (-4.2%), Melbourne (-1.8%), and Brisbane (-1.4%).
 
<hr class="system-pagebreak">
 
RP Data-Rismark’s Rest of State Index captures the 40% of all homes not located in the capital cities. The Rest of State areas have had smaller peak-to-trough swings in value since 2007. Over the three months to end May, Rest of State house values were down 0.9%. Year-on-year, the Rest of State markets capital growth was -1.4%.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyejune304.jpg"><img src="/images/stories/joyejune304thumb.jpg"></a>
The national median dwelling price in capital cities is $470,000, based on sales over the three months to May. Sydney is the most expensive market, with a median dwelling price of $522,000, followed by Melbourne ($500,000). The cheapest cities remain Hobart ($315,000) and Adelaide ($382,500). In the Rest of State markets, the national median dwelling price is a far lower $325,000. Across all Australian regions, the median dwelling price is currently a very reasonable $420,000.
 
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyejune305.jpg"><img src="/images/stories/joyejune305thumb.jpg"></a>
The trend of premium markets taking the brunt of the correction has continued, with the top 20% of capital city suburbs ranked by price recording a fall of 3.9% over the 12 months to end May compared with a fall of 0.9% across the cheapest 20% of suburbs and a fall of 2.3% within the broad “middle” 60% of the market.
Demand for luxury homes has likely been sapped by a combination of Australia’s abysmal share market performance and a surging currency. The former has dampened the ability of financial services professionals to bid for high-priced homes, notwithstanding Jonathan Chancellor’s revelation yesterday that an ANZ banker bought an $8.4 million holiday <a href="https://www.propertyobserver.com.au/residential/a-rising-tide-lifts-all-luxury-yachts/2011062950650">home</a>.
The Aussie dollar’s ascendancy has made local housing much more expensive for expats located in Europe, North America and Asian countries (with US dollar currency pegs) to buy.
Financial markets are currently pricing in a decent chance of an interest rate cut over the next six to nine months. If the RBA does indeed reduce rates, this would provide substantial support to the market. However, our central case remains that rates are heading up, not down, and thus we are not looking for any capital gains in 2011 with the risk to the downside if rates do rise. That said, total returns will be boosted by very solid growth in rents.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyejune306.jpg"><img src="/images/stories/joyejune306thumb.jpg"></a>
Note: Some of the information above derives from today’s RP Data-Rismark media release, which is available on request.
Christopher Joye is a leading financial economist and works with <a target="_blank" title="Rismark International" href="https://www.rismark.com.au/" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">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. You can follow Christopher on twitter at <a href="https://twitter.com/#!/cjoye" title="Follow Christopher Joye" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">@cjoye</a> or read his <a href="https://christopherjoye.blogspot.com" title="Christopher Joye's blog" target="_blank" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">blog</a>.
</body></html>

chrisjoye-JYhJsTrNRC

Rents robust, but house prices slide slightly

<html><body>
Australia’s listed property sector is forecast to return 4.8% earnings per share growth for investors in 2012, according to Merrill Lynch analyst Simon Garing.
On the back of A-REITS returning to their “low-beta roots”, meaning they offer low risk but low potential returns, Garing expects the sector to “outperform in challenging times, where investors seek defensive exposure”.
He bases his predictions on the property sector, excluding residential, showing stable or improving conditions across the board.
During the June 2011 quarter there was a 428% increase in transactions in the commercial sector as investors bought office and retail assets, according to a CB Richard Ellis analysis of the market
BT Investment Management property portfolio manager Julia Forrest is also upbeat about A-REITs, saying the lacklustre performance of the sector to date in 2011 is “misleading”. Winston Sammut of Maxim Asset Management also says a number of A-REITs have performed well “beneath the surface”.
These he lists as Centro Retail Group, Charter Hall Office REIT, Investa Office Fund and EDT Retail Trust.
Charter Hall Office REIT, the subject of a management takeover battle involving three hedge funds and Moss Capital, is also the top pick of Phoenix Portfolios managing director Stuart Cartledge.
It comes as the REIT boosts its line of credit with Westpac by $25 million to $100 million to take advantage of further investment opportunities.
However, not all fund managers are upbeat about REITs.
In its June market insights report, Russell Investments recommends investors leave their REITS portfolio weighting at the current allocation and is forecasting modest earnings growth in 2012.
</body></html>

REITs forecast to deliver 4.8% growth: Merrill Lynch

<html><body>
You’ve found what you think is a brilliant development site. Now it’s time to jump on that roller coaster and start the ride of your life as you commence the analysis process. Will the project be feasible? What is feasible, anyway?
Let’s find out. Feasible is really another word for “is it going to be financially worth it for you to spend your time, energy, money, blood, sweat and tears developing this site?”
Some advice I can give you about property investing, and anyone in property will also tell you, is to stay emotionally unattached to the property, as this is where bad decisions can be made. I have seen it many times, and this is where it can all come undone.
Firstly, it’s important to determine your development strategy and your investing criteria before looking for a development site. Your strategy may include:
-          Land subdivision
-          Renovating an existing dwelling
-          Dual occupancy or low-density development
-          Renovating an existing dwelling to build new villas/units also on the land
-          Medium-density development
-          All of the above
Your budget will help to determine your development strategy. A simple land subdivision will be less costly (but not necessarily quicker) than a larger villa/unit development, for instance.
As part of your strategy, you will need to think about what profit margin you would feel comfortable making from a development. You may have heard about the”20% profit margin” rule for developers. Once all development costs are taken from the potential sale result of the properties, (when selling the properties) there will be a 20% profit margin. Personally, I don’t always work back from a certain profit margin, as I find this restrictive.
Most of my clients are looking to boost their portfolios and hold the new properties long term, so we also need to meet other criteria. By other criteria, I mean rental returns on completion. For instance, if a client wants to create a positively geared development, the end gross yield will need to be about 10%, and we will actively search for development sites in very strong rental areas of the Hunter to meet this objective. Other criteria will include the amount of equity we can create from the project. We strive to create more than $100,000 in equity after our project management fee.
To determine the feasibility of a site, you will need to:
-          Talk to an accountant who specialises in property and one who preferably develops property him or herself so that he or she can advise you on the best structure to purchase under and explain the tax implications when developing such as GST and CGT.
-          Meet with a financial lender or a bank to determine your budget and the best loan structure for your development. It’s important to choose a lender that offers construction loans and find out what their lending criteria is around this – e.g., not all residential lenders will lend to you for a four-unit site. Check interest rates on these loans.
-          Meet with solicitor to determine costs. Your solicitor will check for restrictive covenants or easements that may affect the land. He or she will also make sure services are available and connected, especially if you are developing in a new area, as well as finalising the deal for you.
-          Read the local development control plan and local environment plan and speak with your council’s town planner to find out development application and construction certificate costs. Get friendly with the town planner to find out which developments are wanted in the area, as this could save you time and money by getting it right the first time.
-          Meet with an architect and builder to determine what you can build on the site. Some builders offer standard designs, which will save you design fees. If they do this, then they will be familiar with the local planning requirements. If you are not happy with a standard design, engage a local architect to design specifically for the site. Get a quote.
-          A surveyor will give you advice on the subdivision process. He or she will prepare your subdivision plan and estimate costs relating to the subdivision including sewer extension and service connection costs.
-          Once you have a concept design and before you lodge your development application, meet with builders to determine construction costs. Try to get three quotes and make sure they offer you a fixed price contract.
-          Talk to real estate agents to determine the value of your development and rental returns on completion, as this will have huge impact on the success of the feasibility.
-          Research other costs such as stamp duty, reports, Insurance and Interest payments.
The aim is to keep the above costs to a minimum so you will receive a higher profit margin. All this information can be kept in a spreadsheet, or there are software programs to help you with this process.
 
<hr class="system-pagebreak">
 
Below is a quick one page analysis I do to determine if a development is going to be feasible. In this case the client is keeping the three properties we have created from one.
Purchase price three-bedroom house on 1,012 square metres of land: $210,000 Estimated set-up costs, stamp duty, legals, pest and building reports, survey: $8,500 Estimated renovation cost: $8,000 Build cost for a two bedroom duplex (2 x villas) to be built behind existing house: $353,000 Contingency: $20,000 Note: build costs includes all council, subdivision and other fees &amp; charges. I always ask my builder to wrap all development costs into their contracts so my clients can maximise their lending.
Total development cost to create three properties from one in Hunter Region of NSW: $599,500 
Estimated end values:
Renovated three-bedroom house on 400 square metres: $220,000
Two-bedroom villas, $260,000 each: $520,000
Total end values: $740,000
Potential gross equity to be created: $140,500
Note: lending costs are not included at this stage:
Estimated rental returns:
Renovated house $300 per week
Two-bedroom villas @ $280 per week each: $560 per week
Total rental return: $860 per week or $44,720pa
Gross yield on completion of development: 7.5%
Gross rental yield: How it works One of the first calculations you will need to understand if you intend renting the properties on completion is the gross rental yield. To calculate the GRY you need the annual rent and the total cost of the development. If we use the above example:
Annual rent: $860 per week x 52 = $44,720pa Total development costs: $599,500 Gross yield: $47,720 divided by $599,500 = 7.5%
The yield on the above example of 7.5% is ideal at the moment as anything over 7% is considered to be a strong yield. Some of our developments are creating up to a 10% gross yield.
Once you have obtained the estimates for your development and the figures are looking good, you have some actual estimates to go back and speak to your lender about and ensure you can finance the project. There are various finance options, so seek professional advice on the best one for your situation. Then before you purchase, ensure you have discussed the best legal entity to be purchasing under for your individual circumstances with your accountant.
When your finance is preapproved, you can then start to negotiate the purchase. Always ensure you have a preapproval before making an offer so you can move quickly to exchange. This is a good negotiation tool. Ask for a longer settlement and a lower deposit, which will reduce your holding costs.
There are many more things to consider for your site selection, so it’s important you do your due diligence. In the development game, time is money. So you will need to learn to assess a potential site very quickly. One way to fast track the analysis process is to engage other professionals to do this important work for you. If it is your first development then work with an experienced project manager so you can learn from them as you progress through the complicated and challenging journey of your property development. Enjoy the ride!
Jo Chivers is director of <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" target="_blank" title="Property Bloom" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
</body></html>

jochivers-wq5Bp59R5a

How to determine if a development is feasible

<html><body>
{yoogallery src=[images/stories/june30panorama]}
Marketing is set to begin on a new residential tower in Sydney’s Crows Nest. Panorama, with 209 apartments within three buildings on the Pacific Highway on the lower north shore, is tipped to interest medical staff from the nearby Mater Hospital, Royal North Shore Hospital, and the Northside Medical Centre.
“Crows Nest is one of the few suburbs in Sydney where the fundamentals for successful property investment remain strong,” says Tim Rees of CB Richard Ellis residential projects.
“It has a high rental base of 42% compared to the Sydney-wide average of 30%.”
Rees expects by the time Panorama is completed in late 2013, the indicative weekly rents will be $525 to $695 for the one-bedroom units and $875 to $1,200 for the two-bedrooms apartments.
The Panorama display centre at 200-220 Pacific Highway, Crows Nest, will open from mid-July.
The bulk of the apartments will be in a 17-level tower, and apartments in the upper 12 floors have multi-directional views.
Prices at Panorama start from $425,000 for a one-bedroom apartment, and from $825,000 for a two-bedroom apartment.
Willoughby Road is Sydney’s answer to Melbourne’s Lygon Street, says Rees.
Rees says the views won’t be built out because Panorama retains the height of the existing structure, the 1974 Spectrum buildings, which were a mix of retail and commercial space and hotel accommodation.
“The existing buildings will be largely demolished,” said Greg Shand, managing director of Barana Group, which is developing the JPRA-designed Panorama.
“In some cases the concrete frame will be retained, but overall this will be a new development and finished to a very high standard that is appropriate for Panorama’s unique location.”
Work is scheduled to start in September and be completed within two years.
Its interiors, by SJB, have been described as “pared-down luxury”, with timbers, natural stone and textural terrazzo.
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News