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

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

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

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The rich are getting richer according to the recently released BRW Rich 200 list. The total wealth held by this year’s Rich List members was up 23% on last year, in part helped by our resources boom.
And just in case you haven’t notices, the divide between the rich and the poor has never been so evident according to the BRW. The average income for Australian families is $80,000 with just 15% of us earning $150,000 or more each year, which seems to be Treasurer Wayne Swan’s definition of wealthy.
In contrast it would take the lower-ranking members on the Rich List less than 5 days to earn $150,000, which seems to be the new cut off between the rich and the average Australian.
So, what can we learn from Australia's wealthy individuals?
Firstly property remains the single biggest source of wealth with 49 real-estate entrepreneurs in the top 200 list, and many of those who didn't make their fortunes in property have stored their wealth by investing in property.
This should come as no surprise – looking back over the years, no matter how the Australian economy changes, the Rich 200 has always been dominated by the property entrepreneurs.
Remember, there's nothing wrong with seeing what other successful people do and applying those principles to your own life. If so many extraordinarily wealthy people have used real estate profitably, it stands to reason that there's money to be made in this sector.
The other lessons I learned by reading the various entrepreneurs' stories are:
Anyone can become rich in Australia. While 17% inherited some of their fortune, most on the Rich List were self-made successes, some coming from working-class backgrounds. Attending a private school and an elite education is clearly not a prerequisite to joining Australia’s wealthy. While some forged important networks at school, many went to public schools and others didn’t even finish high school. In fact, less than half have tertiary qualifications.
 
Invest counter-cyclically. While the average Australian was gripped with fear of the fallout from the Global Financial Crisis, many successful investors took advantage of the opportunity to buy up big over the last few years. Remember Warren Buffet's famous quote: "Be fearful when others are greedy, and be greedy when others are fearful."
Make your millions and then reinvest it – don't spend it. This is really just using the power of compounding to grow your asset base before you start spending up big.
Take risks early on, but not once you are established. While many entrepreneurs took big risks to get their enterprises going, successful investors then preserved their wealth by cautiously investing rather than taking further risks.
Have one good idea and repeat it. One core trait that successful entrepreneurs share is the ability to take a good idea and repeat it over and over again. Look through the list and you’ll see so many entrepreneurs stick to the same concept for years and just expand in different locations.
Pick the trends. This is different to picking fads, which are transient.
Go for growth. Sure, cash flow is important but to become really rich you need a large asset base. While the average Australian tries to increase their cash flow, the wealthy are obsessed with building their asset base. Much the same as those on the BRW Rich 200 list who concentrate on building their balance sheets even more than they do on their profit and loss accounts.
Surround yourself with a good team. As I've often said, if you are the smartest person in your team, you are in trouble.
Take action. All the people who made it onto this year's BRW Rich 200 list started with a dream and then took action.
You’re never too young and you’re never too old. The youngest member of the BRW Rich 200 is aged 35 and has an estimated wealth of $1.01 billion, which is even more than the oldest member who at the age of 92 has accumulated $289 million.
Michael Yardney is the director of Metropole Property Investment Strategists, a best-selling author and one of Australia's leading experts in wealth creation through property. For more information about Michael visit <a style="color: #333333; font-weight: bold; font-size: 13.5px; text-decoration: none;" href="https://www.metropole.com.au/">www.metropole.com.au</a> and <a style="color: #333333; font-weight: bold; font-size: 13.5px; text-decoration: none;" href="https://www.propertyupdate.com.au/">www.PropertyUpdate.com.au</a>.
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myardney-DFoGhGbSJX

The rich are getting richer, and so can you

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The much-vaunted first home saver account scheme has finally gained some traction, with a 21% jump in accounts over the past year.
There are now 27,400 account holders holding $173 million in savings that form the basis of their future home deposits.
Smart money might consider opening an account with $5500 by June 30, as it will immediately qualify for the maximum $935 Federal Government contribution this financial year.
Financial advisors have been making the suggestion as a worthy means of minimising the time the deposit sits in the bank, and maximising the government payout.
It will be necessary to maintain the account, with further, say, $5500 deposits, for the full financial years of 2011-2012 and 2012-2013.
Then, on making one final $5500 payment into the account on July 1, 2013, the total funds can be immediately withdrawn, and the account closed with the final Government maximum contribution for the 2013-2014 year.
Participants will walk away with the makings of a deposit of $27,300, of which about $3740 will be from the Government, accumulated in two years and two days.
The scenario is based on calculations from infochoice.com.au, Australia’s leading finance comparison site. The calculations are based on the government making a contribution equal to 17% of personal contributions for each financial year, up to a maximum of $935 based on annual deposits of $5500 or more.
The deposit will have been topped up with interest calculated at 5.5% per annum, which is the current rate available with some of the providers of first-home savers accounts. The net benefit depends in part on the saver’s marginal tax rate; the higher it is the better off the person will be, but an ordinary bank account would have to get 15% interest to beat the benefits of the first-home savers accounts.
The “four years is really only two years” scheme, as outlined, ideally suits indolent and expectant young people relying on the largesse of benevolent family patrons, who don’t necessarily see an imperative to buy their first home until spring of 2013 at the earliest.
Perhaps they could travel overseas in the meantime.
Of course this doesn’t quite match the purpose of the scheme, which was to encourage first-home buyers to save in a disciplined environment, which then helped with applications to banks.
But this well-intentioned scheme hasn’t matched the Federal Government’s initial high hopes of $4 billion under deposit by 2012. The typical account currently has $6,300, the Australian Prudential Regulation Authority said.
The initial projections were of 220,000 accounts opened in 2009, and 730,000 by 2012. The scheme had a very slow start, with just $41 million deposited after its first nine months. As at June 2009 there were just 13,946 First Home Saver accounts. This jumped to 22,600 as at June 2010, and to currently about 27,400.
It dates back to an election commitment by then aspiring Prime Minister Kevin Rudd, with the Government offering to contribute up to $850 for every $5000 deposited each financial year. This amount has now been adjusted to $935 for every $5500 or more.
Anyone over 18 and under 65 who has not previously purchased a home in which to live can have an account with an indexed $80,000 balance limit.
Only 18 financial institutions offer the accounts, and most of them are credit unions. Just two of the four big banks, the ANZ and Commonwealth, offer the accounts.
One of the main reasons why the scheme's uptake was woefully slow was its introduction coincided with the frenzy accompanying the first home owner grant boost, one of the overdone stimulatory measures during the global financial crisis.
The first-home saver scheme became swamped by the first home owner grant bonus.
There are tight rules regarding withdrawals, which are tax-free but can only be used to go to the purchase of a first home.
Account holders who change their minds about buying a house can transfer the balance of the account into  superannuation. 
The account holder must live in the home for at least six months as his or her main residence following the purchase of the property after the withdrawal of the funds.
First home saver accounts are an individual account, not a joint account.
Account holders don't have to be Australian residents or living in Australia to open or contribute to a first-home saver account, but do have to be Australian residents for income tax purposes for at least part of the financial year to receive the government contribution.
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jchancellor-FAypfDUnLy

Saving for a first home, thanks to a silver spoon

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As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
 
Going to a debate about property bubbles is a bit like going to a debate about the existence of God. You know broadly what the arguments will be, but you want to know who is speaking and whether they have any new observations.
 And so it was that the Money Institute in Sydney hosted “The Property Bubble Debate: is it doom and gloom or safe as houses?”
 In the Christopher Hitchens role (there is no God) we had, inevitably, Professor Steven Keen, this country’s most high-profile property market iconoclast.
 As the joke goes, the good professor has managed to pick six of the last three downturns.
 Opposing him, in the Archbishop of Canterbury corner, there was a property developer called Dr Tony Hayek from Blue Wealth Property.
 In between, there were a handful of participants, the most informative of whom was Dr Shane Oliver, AMP’s chief economist.
 One problem with debating the merits of property is that it is such an emotive topic for Australians.
 With one of the highest rates of home ownership in the world, having your own home – at almost any price – is a cultural imperative against which it is almost impossible to rationally argue. It is also proof that economics is not always a rational science.
Hayek, the first speaker, said he wasn’t going to show any graphs or statistics, because that was the job of the other panellists.
However, he did show us photos of houses in Concord and Harris Park, NSW, that he said had gone up in value in the past few years.
 Fortunately, Keen had a slightly broader view. The University of Western Sydney academic said that conventional wisdom had it that “population pressures drive house prices, but that’s wrong. It is money pressure which drives house prices.”
 Australian banks have financed a bigger bubble here than in the US, he said.
“It’s the biggest debt-financed asset bubble in human history, and I’m afraid you ignore it to your peril.”
Oliver began his talk by saying that any negative remarks about the property markets didn’t apply to the northern beaches suburb of Avalon, NSW, because that was where he owned a house. In general, house prices were this country’s “Achilles Heel,” he observed. 
In 1987 the housing market soared following the sharemarket crash, and the Australian market recorded much bigger gains than the UK and the US. Although the Australian market is overvalued, the indications of a bubble were missing, he said.
Interestingly, buyer sentiment about property as an asset class has changed. In the mid-1990s approximately 50% of Australians surveyed on this topic thought that real estate was a better place for their savings than other asset classes, Oliver said. Now, only 15% are property true believers, and the rest think they would be better off putting money into bank deposits and paying off debts.
Housing affordability is a huge issue in this country, the economist said. To buy an average-priced house in Australia takes six times the annual disposable income, whereas in the US is just three times that figure.
For instance, the average house price is Sydney is $634,000 while in Los Anegles, which has similar household incomes, it is $346,000. The Perth average house costs $480,000 and Austin Texas, $189,000. Housing rental yields here were about 3% and commercial property about 8%, the economist said.
Oliver then analysed the issue of why Australian property was so much more expensive than its equivalent in the US.
The first reason was that Australians spend less on healthcare than Americans, which means that they have more money in their pockets to spend on housing. The other factors are a greater supply of credit here and an under-supply of housing.
Currently, there is a shortfall of 200,000 to 230,000 dwellings; we should be building 180,000 to 200,000 dwellings every year and we are building less than that, he said.
In conclusion, the economist said that the main risks for the property market were a large number of land releases by government, the collapse of the Chinese economy and a rise in interest rates. Housing affordability was “terrible” and auction clearance rates were trending low, he said.
“My summary would be that prices are overvalued. It’s not a bubble, but we are very vulnerable if anything goes wrong.”
After the presentation, on the way back to the office, I went into a shop to look at a $330 pair of shoes I had just purchased over the internet for $70, plus postage. As I can now buy everything I want with an iMac and a credit card, I wondered: what is the future of retailing property? Buy FedEx.
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cknowlton-QnEa6ntUYP

Property high priests square off over housing bubble

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Rismark reports today that <country-region><place>Australia</place></country-region>’s average dwelling price-to-disposable household income ratio fell from its peak of 4.7 times in December 2009 to just 4.2 times in the March quarter of 2011.
In encouraging news for home buyers, <place><country-region>Australia</country-region></place>’s dwelling price-to-disposable income ratio is now back around its June 2003 level.
 With the exception of the GFC, this is the longest correction in <place><country-region>Australia</country-region></place>’s housing market valuation since Rismark’s analysis began in 1993 and confirms its projections last year. 1
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/joyejune8.jpg"><img src="/images/stories/joyejune8thumb.gif"></a>
This follows news yesterday that the RBA could keep its finger off the interest rate trigger until after the second-quarter 2011 inflation results are released in late July.
The headline mortgage rate is currently 7.8%, which is slightly higher than the average rate of circa 7.3% since the RBA adopted its “inflation-targeting” regime in the early to mid 1990s.
Rismark joint managing director Ben Skilbeck says: “We expect the national dwelling price-to-income ratio to continue to trend down over the next year or so as wages and disposable household incomes outpace capital growth. We are forecasting robust rental returns during this period, which should furnish owners with better total returns.”
“Contrary to popular myth, disposable household incomes in Australia have outpaced Australian capital city dwelling prices by a 7.5% margin over the last eight years based on RP Data-Rismark’s hedonic index.”
On the topic of when the RBA will next hike rates, ICAP’s Adam Carr says: “Having kept rates steady this month at 4.75% when there was a clear cut case to hike, the natural question is: what additional information could they possibly need to see to hike?
“My initial thoughts are that if they are going to wait till July, then waiting till August is no biggie. They are already behind the curve, so it makes little difference. I’d also note that there is no urgency in this [RBA] statement to hike in July – no clear signal. So until we see the board minutes, I think July and August are fairly even bets,” Carr says.
Terry McCrann of News Ltd and Fairfax’s Alan Mitchell are, however, today insinuating that an August move is more probable conditional on the second quarter inflation numbers supplying Australia’s central bank with a case to go. This brings them in line with UBS’s chief economist, Scott Haslem, who has long forecast an August hike.
If the inflation data do turn out to be benign, the RBA may be on hold until later in the year, consistent with Goldman Sachs’s Tim Toohey’s November forecast.
McCrann, who is known as the RBA’s “Shadow Governor” in financial markets, now believes that the RBA will need to be presented with an empirical catalyst to hike rates in July before receiving the next tranche of inflation data.
Tomorrow’s unemployment figures therefore loom large as a major monetary policy event. If the unemployment rate falls significantly below its current 4.85% level, which is widely regarded as consistent with a “fully employed” labour market, the RBA may feel it has sufficient justification to undertake another rate increase.
There has been widespread speculation that the RBA’s executive is at loggerheads with its more “dovish” board, which contains five representatives of corporate Australia, including businesses that are adversely affected by higher interest rates and an elevated currency. These include a current director and former CEO of the large retailer Woolworths.
McCrann has rejected this critique, and declares today that the RBA Board is “unified” around its comparatively dovish position, which has thus far ignored Australia’s very high first quarter inflation results.
Another swing variable is the departure of the notoriously “hawkish” Professor Warwick McKibbin from the RBA Board. July will be Professor McKibbin’s last board meeting.
Australia’s central bank has missed its 2.5% per annum through-the-cycle inflation target over the last decade, with underlying or “core” inflation averaging a substantially higher 3.0 per cent.
Alongside <country-region>Norway</country-region>, <place><country-region>Australia</country-region></place> has the highest inflation target in the developed world.
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chrisjoye-JYhJsTrNRC

Housing more affordable in March quarter

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The Northern Territory is the only state or territory to record an increase in first home buyers in the March quarter, bucking a nationwide trend.
ACT had the biggest drop in this sector of the market, and South Australia first-home buyer numbers fell to a 20-year low.
In the Northern Territory the number of new loans to first-home buyers increased during the quarter, up 8.9% to 159 loans. These borrowers make up 23.5% of the market, according to the Real Estate Institute of Australia Deposit Power Housing Affordability Report.
At the other end of the scale, ACT recorded the largest decrease in the number of new loans to first-home buyers, down 25.5% to 324. First-home buyers still comprise 25.9% of the market in Australian Capital Territory.
State-by-state analysis
In New South Wales, the number of loans to first-home buyers continues to be higher than all other states and territories, despite a decrease of 14.6% to 6,097 from the previous quarter. Over the year, the number of loans to first-home buyers decreased 13%.
In Victoria, the total number of loans issued to first-home buyers decreased 21.1%, down from 7,005 in the previous quarter to 5,526, the second-largest decrease of any state or territory during the quarter.
In Queensland, first-home buyer numbers dropped 16.1% to 3,636 during the March quarter. Compared with the same quarter of 2010, housing loans allocated to first-home buyers decreased 17.6%
In South Australia the number of loans to first-home buyers declined 14.8% to 1,269, the lowest quarterly level since September 1991. Compared with the same quarter of 2010, housing loans to first-home buyers decreased 22.6% in SA.
In Western Australia the number of housing loans to first-home buyers declined 10.2% to 2,920. Over the twelve months to March 2011 the number of loans to first home buyers declined 18.3%.
The number of new loans to first-home buyers decreased by 8.3% in Tasmania, bringing the total number of new loans from 374 in the December 2010 quarter to 343 in the March 2011 quarter. Over the 12 months to March, the number of new loans to first-home buyers decreased 23.1%. 
 
<hr class="system-pagebreak">
 
Nationwide, the number of first-home buyers participating in the mortgage market plummeted to the lowest level in 17, years according to the latest Real Estate Institute of Australia Deposit Power Housing Affordability Report.
 First-home buyers comprised just 15.4% of the “dwelling finance” market in the March 2011 quarter, compared with 15.6% in the December 2010 quarter, the latest report says. This is well below the long-term average of 20%.
The number of new finance commitments to first-home buyers fell to 16.1% for the quarter to 20,274, and the number of loans to first home buyers declined over the year, down 20.6%.
Affordability
ACT remains the most affordable state or territory, according to the report, with the proportion of income required to meet loan repayments increasing to 18.6%, 15.6 percentage points below the national average of 34.2%. NSW remains the least affordable, with the proportion of income required to meet loan repayments decreasing to 37.2%.Victoria is the second least affordable state (27.8%).
Affordability in Queensland improved during the quarter, with the proportion of income required to meet loan repayments decreased 0.5% to 32.9%.
During the March 2011 quarter, the total number of new finance commitments (excluding refinancing) decreased 16.5% to 90,157 – the lowest quarterly level in 12 years. All states and territories recorded declines in the total number of new finance commitments, both over the quarter and the year.
The latest finding about first-home buyer reluctance comes despite a report by Canstar Cannex saying conditions are easing for this sector of the market.
The financial data provider expects first-home buyers to be the likely beneficiaries of a flat housing market combined with an easing of deposit requirements by a significant number of lenders.
“In the last 12 months we’ve seen at least 25 lenders ease their deposit requirements and increase their LVRs (loan-to-valuation ratios) to assist borrowers getting into the market for the first time,” Canstar Cannex financial analyst Mitchell Watson says.
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lschlesinger-FZcF9M3vE6

First-home buyer numbers down nationwide, except in NT

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<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">Interest rates didn’t rise yesterday, and no surprise there. Yet we keep hearing about how they will, inevitably, do so and in fact many, many times.  Will these desk-bound, Canberra-centric economists ever shut up? Maybe they should go outside for a while, leave the ACT for a bit and visit a few shops, speak to a small business owner or two or visit a Queensland construction site (if they could find one). They might discover the real world.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">Although mining-related stuff is going great guns, the rest (and it is a very big rest) of us are not.  Technical recession or not (well, not yet, anyway – but the June quarter figures will leave no shadow of a doubt), we are facing some very tough economic times and an increase in interest rates any time soon will stuff things up big time.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">I was going to quote a baker’s dozen or so of statistics, highlighting our current economic woes, but to be honest I don’t have the strength nor do you want to keep hearing about them. “More sugar,” someone emailed me the other day, and “less lemon”. I am listening, but it is bloody hard at present. I do prefer a blue sky over cloud.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">This mining boom – let’s call it Mark II – is shaping up to be quite different from the first one. During the first leg of the mining boom (circa 2001 to 2008), our exports over imports (<em style="outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: italic; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; margin: 0px; border: 0px initial initial;">terms of trade for all you smarties out there) rose to the highest level since the early 1950s. Although a two-speed economy was evident then, the gap was perceived as less than today, due to limited government regulations, tax cuts and generous public handouts.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">After a GFC-induced pause during 2008-09, the mining boom is back and according to some, big time.  The terms of trade are up; unemployment (well as feebly measured by the ABS) is below 5%; apparently there are skilled labour shortages and almost all of the mainstream financial press are running headlines screaming BOOM!  But this time around it feels (heck….it is) different.  Why is this so?
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">Firstly, house prices have hit an affordability wall.  With some good luck, it won’t turn into a collapse, but it has hit a serious barrier.  Time will fix the problem – as wage growth catches up with housing prices – but this will take years to resolve.  A dose of commonsense would do wonders.  A change in planning policy would see housing affordability fixed almost over night.   But there is a lot of inertia here, including in some of our biggest institutions (i.e. the banks).  So I suspect a slow deflate (in real terms) is on the cards for Aussie homes for some time to come.  Of course, there will be winners and losers as always is the case when an overall market type loses its pep.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">Secondly, the Australian dollar is high and is likely to remain so.  Profits, for many private businesses, are already changing to losses.  High commodity prices and our high interest rates; against the world stage; are likely to ensure a strong Aussie dollar for some time to come.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">Thirdly, policy makers (I really mean the RBA) so far have managed the second phase of this mining boom quite well; although the November interest rate rise was a step too soon, but everyone is allowed to make a mistake now and then.  A fool, however, makes that same mistake twice; an idiot three times.  I hope Glenn Stevens isn’t going to be foolish nor act like an idiot.  Yesterday’s decision to leave rates on hold, at least, proved that Glenn is no fool, yet.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">Given the tight Federal Budget – which as I have <a style="outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; color: #990000; text-decoration: none; padding: 0px; margin: 0px; border: 0px initial initial;" href="https://matusikmissive.wordpress.com/2011/05/04/may-budget/">argued </a>recently isn’t really what is needed now, as we need to stimulate the non-mining (the vast majority of the economy) sectors now for years to come – and the post-flood/cyclone slowdown, interest rates, for the time being at least, should remain on hold.  My way of thinking is this needs to occur for at least another twelve months or so, maybe more.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">However, if the general economy continues along its current trajectory in coming months, then last November’s pre-emptive strike will need to be reversed.  Inflation (for now at least) is well under control; jobs advertisements are on the slide; house prices are also falling; fewer firms are posting gross profits; there has been no economic growth so far this year and manufacturing is contracting once more.  Sorry, for the lemon infusion, but I couldn’t help myself!
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">Hmmm, sound like we might see interest rates actually fall next rather than rise.  I might have been <a style="outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; color: #990000; text-decoration: none; padding: 0px; margin: 0px; border: 0px initial initial;" href="https://matusikmissive.wordpress.com/2011/02/16/rates-must-fall/">right </a>after all.   The RBA confesses in yesterday’s media release that the current cash rate setting is mildly restrictive.  I think that come August this mild settling will feel severe indeed.  Fingers crossed (the sugar) that it doesn’t come to this.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">Regardless of the future direction of interest rates, what would help the situation – and stop all the jawboning and resultant negativity – would be some very clear advice from the RBA outlining (in plain English please) their prognosis for the next financial year and when (and by how much) interest rates might change.  This monthly interest rate guessing game is counterproductive.  Run through a budgetary process, factor in the variables and let us know.  If nothing else, it will help shut up all those damn economists waxing lyrical about every minute detail that is muttered by GS and his band of merry men (and two ladies).
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">And the final reason, and the main one, why this boom, for most of us, feels more like a recession, is the lack of confidence.  Yes, consumer attitudes have changed fundamentally.  And I don’t buy into the surprise lift in April’s retail turnover, as a sign that we are going back to our old spending ways.  Consumption is out and saving is in.  Most, too, are less interested in taking on debt.  But things right now have become outright gloomy – we are squirreling money away like our lives depend on it – yet our balance sheet indicates considerable strength.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">One of the key reasons for this gloom is the almost daily threat of looming interest rate rises.
<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 1.1em; margin-left: 0px; outline-width: 0px; outline-style: initial; outline-color: initial; font-weight: inherit; font-style: inherit; font-size: 15px; font-family: inherit; vertical-align: baseline; padding: 0px; border: 0px initial initial;">Glenn please, from this day onwards, tell us a year in advance, when to expect a change in interest rates and by how much.  Proact, stop reacting – this constant game of cat and mouse needs to stop.
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michaelmatusik-49YzLvdmNv

Be proactive, not reactive

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Since the publication of <a href="https://www.propertyobserver.com.au/hotspots/the-10-most-discounted-properties-in-australia-at-june-1/2011060250371" target="_blank" title="Last week's most discounted properties data">last week's most discounted property figures</a>, the vendors of the most discounted property in Australia seem to have lowered their asking price a further $20,000, down to $380,000. This is a tad more reasonable then the property's original asking price of $700,000!
There have been a variety of opinions surrounding not only this particular property but others like it that have been grossly overvalued and/or overpriced. Much of the blame has been pinned on agents for spruiking inflated valuations and making unattainable promises to vendors.
What we have to remember as potential investors is that we can't always blame the agents in these particular cases. Often it is the vendor who has a misguided, delusional idea of what the property is worth, and in the end it is the vendor that has the final say when it comes to pricing.
 1
 <a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106966579" target="_blank" title="1350 Wynnum Road, Tingalpa" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">1350 Wynnum Road, Tingalpa, 4173</a>
On the market since: November 6, 2010
Initial asking price: $700,000
Current asking price: $380,000
Reduction: 46%
Days on market: 203
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;"> </h2>
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106550670" target="_blank" title="1/21 Ocean Drive, Coogee" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">1/21 Ocean Drive, Coogee, 6166</a>
On the market since: May 23, 2010
Initial asking price: $2,700,000
Current asking price: $1,600,000
Reduction: 41%
Days on market: 371
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">3</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106766036" target="_blank" title="16/153 Kensington Street, East Perth" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">16/153 Kensington Street, East Perth, 6004</a>
On the market since: August 21, 2010
Initial asking price: $845,000
Current asking price: $529,000
Reduction: 37%
Days on market: 280
 
4
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007562500" target="_blank" title="232-234 High Central Road, Macleay Island" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">232-234 High Central Road, Macleay Island, 4184</a>
On the market since: January 11, 2009
Initial asking price: $279,000
Current asking price: $175,000
Reduction: 37%
Days on market: 868
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614" target="_blank" title="25 Vicary Street, Triabunna" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">25 Vicary Street, Triabunna, 7190</a>
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 301
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">6</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295" target="_blank" title="290 Viveash Road, Swan View" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">290 Viveash Road, Swan View, 6056</a>
On the market since: June 5, 2008
Initial asking price: $2,290,000
Current asking price: $1,500,000
Reduction: 34%
Days on market: 1089
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">7</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D105832903" target="_blank" title="3 Boolari Road, Gosford West" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">3 Boolari Road, Gosford West, 2250</a>
On the market since: July 8, 2009
Initial asking price: $990,000
Current asking price: $650,000
Reduction: 34%
Days on market: 689
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">8</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106138206" target="_blank" title="1/16 Dewar, Ledge Point" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">1/16 Dewar, Ledge Point, 6043</a>
On the market since: November 15, 2009
Initial asking price: $375,000
Current asking price: $250,000
Reduction: 33%
Days on market: 559
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">9</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D107052447" target="_blank" title="56 Ellen Street">56 Ellen Street, Kingston, 4114</a>
On the market since: December 11, 2010
Initial asking price: $285,000
Current asking price: $200,000
Reduction: 30%
Days on market: 168
 
<h2 style="outline-style: none; outline-width: initial; outline-color: initial; font-size: 18px; font-family: Georgia, Utopia, Palatino, 'Palatino Linotype', serif; line-height: 21px; padding: 0px; margin: 0px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008305411" target="_blank" title="5/24 Georgina Street, Woody Point">5/24 Georgina Street, Woody Point, 4019</a>
On the market since: April 11, 2010
Initial asking price: $310,000
Current asking price: $220,000
Reduction: 29%
Days on market: 413
 
Louis Christopher is the managing director of SQM Research. More information on discounted properties can be found in the free SQM weekly newsletter or on the <a href="https://www.sqmresearch.com.au/news.php" style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;">SQM Research website</a>.
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louischristopher-TWpYcZDLBK

The most discounted properties in Australia at June 7

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The Reserve Bank's announcement that it will leave interest rates unchanged in June at 4.75% and toned-down rhetoric on future rates has been greeted with relief.
A 25 basis points increase, as some economists were predicting, would have meant an increase of $50 per month for a homeowner with a typical $300,000 mortgage and basic variable rate of 7.17% (the average of the four major banks' basic variable rate mortgage).
The rhetoric in the statement following the decision by RBA governor Glenn Stevens suggests further rate rises could be further away than have been forecast.
Stevens pointed to a number of reasons why the bank’s “mildly restrictive stance of monetary policy remained appropriate”.
Most notably, he says that although CPI inflation has risen over the past year (currently at 3.3%), it reflects the effects of extreme weather and rises in utilities prices.
“The weather-affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the next 12 months,” Stevens says.
Bill Evans, chief economist at Westpac, says the RBA's rhetoric indicates that its commitment to an early rate hike has been significantly diluted.
“Indeed, even the May statement was more hawkish than this one today. Most importantly, a paragraph in the May statement that included the observation 'over the longer term inflation can be expected to increase somewhat if economic conditions evolve broadly as expected' was eliminated from this statement,” Evans says.
Aaron Gadiel, CEO of industry lobbying body the Urban Taskforce, draws a similar conclusion. 
According to Gadiel, fears that the RBA has an “itchy trigger finger on interest rates have already caused some building plans to be shelved or delayed".
“We hope the bank will be less keen to raise the spectre of new interest rate rises in future monetary policy statements.”
Real Estate Institute of Australia (REIA) president David Airey says the decision is the right one, given the state of housing affordability in Australia.
Airey says the RBA has “accurately assessed the property market”.
HIA senior economist Andrew Harvey says the decision “reflects a rare bit of good news amidst mounting pressure on home affordability and fast-declining activity in the residential building sector”.
“It just gives a touch of relief to those Australians paying off mortgages and also to those trying to enter the housing market, amidst the less predictable environment households face in the post-GFC era,” he says.
Laing+Simmons general manager Leanne Pilkington also welcomes what she called “the only option available” to the RBA but remains perplexed at “persistent talk of a rise in the next few months”.
“The recent March quarter contraction can be dismissed as being a result of the natural disasters, but the figures are more than just a blip on the radar. 
“Remembering that another consecutive quarter of negative growth places us in recession and the need to support struggling families becomes even more apparent,” Pilkington says.
“House prices are declining in value in some markets, many homeowners are finding themselves in a position of negative equity, and clearance rates are down.”
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Relief greets interest rate decision and RBA’s softer position

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The RBA has kept interest rates on hold in June at 4.75%, marking the seventh month that rates have remained unchanged.
Yesterday a poll of 28 economists by Bloomberg found that just five expected the Reserve Bank to move on rates. An increase in rates is expected over the next few months, with July or August the likely date.
Michael Yardney, director at Metropole Property Investment Strategists, says today’s decision is just a reprieve.
“It’s not a question of ‘if’ but ‘when’ rates go up. Borrowers should be budgeting for another interest rate rise or two later on this year,” Yardney tells Property Observer.
“Three weeks ago people were certain of a rate rise in June or July. Then the latest (March quarter) GDP figures came out. That’s the major thing holding back the RBA now,” he says.
Yardney says the RBA will not want to wait too long to raise rates. “If it leaves it too late, it will have to announce too many increases too quickly. Their approach has been to do things pre-emptively.”
He says future rate rises will depend on the next round of inflation and GDP figures. To date the RBA has managed to keep inflation within the 2% to 3% range.
According to Yardney, market fundamentals remain sound – the economy is good, wages are rising, there is an undersupply of property and a rising population. The issue is weak market sentiment. An increase in rates will only worsen this situation.
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Interest rates hold steady at 4.75%

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As a proportion of Australia's economy, manufacturing and mining contribute more or less the same output.
However, mining's investment spend is currently more than three times that being spent by the manufacturing sector.
All the media attention has mainly been focused upon this disparity. But that doesn't really tell you the complete story — as you can see from <a target="_blank" title="Chris Lang graph" href="/images/stories/langjune7chart.jpg">this graph</a>.
The combined service sector (which includes transport, retail, finance, utilities, communications and the like) creates 60% of Australia's employment opportunities, and almost half of the investment dollars.
Although mining has drawn labour and other resources away from both the manufacturing and service sectors, it is manufacturing that has suffered the most.
And because the service sector has only marginal exposure to overseas trade and currency movements, it actually enjoys a net benefit from any mining boom.
This would help to explain the relative economic stability of Victoria and NSW when compared with what has occurred with the more recent gyrations for WA and Queensland.
Furthermore, this is also being reflected in the level of office vacancies for each capital city — with Victoria having the greatest level of "definite" commitments for investment expenditure.
Bottom Line: While Australia may have been experiencing a two-speed economy between different sectors, you are also seeing a two-speed market geographically with commercial property:
<ul style="padding-top: 10px; padding-right: 0px; padding-bottom: 10px; padding-left: 50px; list-style-type: none; list-style-position: initial; list-style-image: initial; line-height: 18px; margin: 0px;">
<li style="padding-top: 3px; padding-right: 0px; padding-bottom: 3px; padding-left: 0px; list-style-type: circle; list-style-position: initial; list-style-image: initial; margin: 0px;">The action-packed (but unpredictable) rides you'll experience in Brisbane and Perth; and ...</li>
<li style="padding-top: 3px; padding-right: 0px; padding-bottom: 3px; padding-left: 0px; list-style-type: circle; list-style-position: initial; list-style-image: initial; margin: 0px;">The less-exciting (but more sustainable) growth you will be able to extract from the Melbourne and Sydney markets.</li>
</ul>
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