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

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

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

Vitale breaks Byron Bay records with EADE sales flurry 

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

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

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The strong Australian dollar is hurting tourism and exporters, but it’s having a positive impact on the industrial property sector, according to experts.
Michael Fenton, national head of industrial at Jones Lang LaSalle, says there is a growing demand from retailers for warehouse space as they take advantage of the favourable exchange rate to purchase imported items online.
“More imported goods means more storage space is needed,” Fenton says.
Fenton says online shopping club Oz Sales is one example of a company that has increased its warehouse requirements. Fashion retailers are also in the market for more industrial space, he says.
The link between a stronger dollar and increased online shopping was revealed in research by consumer research consultancy Directional Insights. It found that when the Australian dollar was at $A0.97 to the US dollar, 25% of consumers said they would be buying gifts online. When the dollar hit parity, this figure rose to 28%.
Earlier this year, the RBA announced that online spending accounted for about 10% of domestic credit card payments, with this figure predicted to grow.
In addition to the strength of the dollar, industrial reports by Colliers and NAB for the first half of 2011 suggest the retailing sector is having a positive impact on the industrial property market.
According to Colliers’ Brisbane report, Kmart is expected to complete construction of a new 57,800-square-metre warehouse and distribution centre in the next 12 months, and discount grocer Aldi is expected to build a 14-hectare distribution centre in Brendale, Queensland, by 2012.
Furthermore, in its Sydney industrial market report, Colliers notes that pre-lease activity is making a slow return, “with a number of large retailers looking to increase the size of their distribution centres”.
This boost from retailers is set to add more momentum to the sector, which is already starting to rebound and attract interest from investors (both institutional and offshore) and businesses looking to own their own warehouses, rather than lease them.
NAB’s Industrial Market report for the March 2011 quarter notes the impact retailing is having on the warehouse sector, with Victoria and Tasmania the stand-out performers in industrial property, “supported by demand from major retailers and strengthening port trade”.
NAB predicts industrial rent rises over the next two years led by strong tenant demand in WA and in NSW/ACT.
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lschlesinger-FZcF9M3vE6

Strong dollar, retail boosts warehouse market

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The number of people 30 days or more behind on their mortgage payments has reached a record high and could climb further if the RBA raises rates as anticipated in the coming months.

The Fitch Dinkum Index recorded that 30+ days delinquencies in the Australian prime RMBS sector reached a record high of 1.79% in the first quarter of 2011, up 42 basis points from the December 2010 quarter.
Fitch analysts believes delinquencies have peaked in the current cycle and expects them to "fall slightly in either quarter two, 2011 or quarter three, 2011 as the usual seasonal effect dissipates, borrowers affected by flooding are expected to receive financial support and for business conditions to stabilise".
However, this forecast is based on interest rates remaining unchanged, an unlikely scenario given that banks like the CBA expect to pass on at least two RBA interest rate rises to customers this year.
James Zanesi, analyst at Fitch Ratings, told SmartCompany this forecast only holds so long as conditions remain the same. "We have not factored in any interest rate rises," he says.
"If the RBA increases the cash rate by 25 bps and the banks pass on 50 bps, delinquencies will increase," he says.
According to Zanesi, increasing household sensitivity to interest rate rises is reflected in the Analytical Living Cost Index (ALCI), which currently stands at 4.9% year on year, significantly higher than CPI, at 3.3%.
The ALCI reflects "out of pocket" living expenses including interest paid on mortgages, a cost not included in the CPI calculation.
Commenting on the report, Janusz Hooker, executive chairman of LJ Hooker, says it must be born in mind that it only covers mortgage backed securities, which account for less than 10 per cent of the market, represent borrowers with a slightly higher risk profile, and only based on those 30 days in arrears.
“We would look at 90 days in arrears and at the broader market before drawing any conclusions. It could be a leading that there is more stress out there, but it’s too early to say for 90 per cent of borrowers,” he says.
“It will stress certain parts of the market – but it won’t worry two thirds of the market,” he adds. According to Hooker, the majority of borrowers can absorb 100 or even 200 basis point increases.
Any increase in rates would take at least two months to feed through to the Dinkum Index, given the time it takes lenders to apply mortgage payment increases and the fact that only loans that are more than one month in arrears are reflected in the index.
In a speech delivered today, deputy Governor of the RBA Ric Battellino, said while the household sector as a whole continued to show a "good deal of resilience in meeting loan repayments, the increase in indebtedness over the past 15 years does mean that households are now significantly more sensitive to changes in interest rates."
Fitch analysts anticipated the record increase in the first quarter of the year due to the "usual seasonal negative impact that Christmas spending and holidays have on delinquencies in the first quarter of the year" as well as the November 2010 cash rate rise and recent natural disasters, but did not expect arrears to increase to the extent that they have.
Fitch says the impact of natural disaster such as the floods in Queensland and Victoria and cyclone Yasi was especially felt in the 30-59 days bucket.
"Borrowers affected by natural disasters may fall behind in their scheduled payments while requesting or receiving financial help. Self-employed borrowers whose business has been affected by the floods may also take longer to cure their delinquency status, depending on how bad their business has been affected and the degree of available financial help," it says.
Those borrowers 30-59 days in arrears increased to 0.79% in the first quarter of 2011 from 0.54% in the fourth quarter of 2010, in turn contributed to the rise in overall 30+ days arrears.
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Mortgage delinquencies at record high and could climb further: Report

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A lot of fuss is being made about house prices doing nothing. For the record, this is the outcome we have correctly predicted since early 2010. Year-on-year, Aussie dwelling prices have not budged (off -0.6%). In the first quarter of this year, they have not moved at all either in raw or actual value terms (-0.4%). Seasonally adjusted, the first quarter has been weaker, down about 2%. But the seasonally adjusted data is simply a relativity, adjusted to reflect conditions that normally prevail at this time. Actual house prices are not down 2%. Having said that. I would not be in the least bit concerned if they were. If the doomsayers on the domestic economy are right, rates are not going anywhere (I obviously don't agree with them). In this case, we will get mild nominal house price growth over 2011, which will likely underperform inflation (i.e., real declines, as we have seen for the past year).  If rates do rise a few times this year (as I expect), nominal dwelling prices will go nowhere or retrench modestly (e.g., 0-5% year-on-year), depending on the number of hikes. That's not a bad thing at all. The underlying demand/supply fundamentals are very strong. The dwelling price-to-income ratio and rent-to-price ratios will keep on improving, which is a great thing for future buyers. The labour market is fully employed, and household income growth is robust. The only thing that will change any of this is something the RBA controls: interest rates. No growth in asset prices, or some small declines, is a handy reminder that no asset class is a one-way bet, as Glenn Stevens presciently pointed out at the start of last year. To be sure, anyone defaulting on a home loan with say, a 7.6% mortgage rate (i.e., another 50bps on top of the current 7.1% discounted rate) should not have a home loan in the first place.  The fundamentals will likely continue to solidify as household formation-driven demand escalates via better-than-expected population growth combined with weak new supply coming online. This would be our base-case.  When interest rates do eventually fall, as they will, there will be an enormous affordability dividend dropped on the housing market, which will likely trigger strong upward movements in prices (in late 2012-14) as the market signals to builders that they need to get their arses into gear and start constructing more housing. In the interim, the RBA is going to be left to deal with significant rent inflation (chart via Citi).  And if worst comes to worst, and the Chindia story implodes, or the global economy has a repeat of 2007-08, the RBA will slash interest rates, with the chief beneficiary being the housing sector, just as it was during the GFC. Nothing happening here, people.
<img src="/images/stories/rentscpi2.jpg">
 
<div>Christopher Joye is a leading financial economist, and works with <a href="https://www.rismark.com.au/" title="Rismark International" target="_blank">Rismark International</a>. Rismark and RP Data provide house price analytics products, and solutions that enable investors to go long and/or short the housing market. The above article is not investment advice. </div>
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chrisjoye-JYhJsTrNRC

Relax, a flat market is not so bad

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When you're just starting out, your main aim is probably just trying to secure a worthwhile property.
However, to be truly successful, you need to have a master plan.
 This may sound a little strange when you are only just about to buy the property. However, you should be looking forward and anticipating things like emerging trends; your lease expiry dates; changing economic circumstances; and the timing of any significant expenditure that will be required on the property down the track.
 You need to care, but not too much. In other words, never fall in love with the property. If circumstances change, then you need to be prepared to part with it – without having any remorse.
 Don’t look to "trade" commercial property in the same way you might do with shares.
When you make your initial assessment to purchase, always have a four-year time frame in mind.
 Many passive investors would prefer to buy a commercial property and then squirrel away the paperwork in their filing cabinets. But every four years you should carry out out a formal review of where your property sits within the marketplace. That won't necessarily mean you need to sell, but it could. What's important is for you to make a considered decision to hold the property for another four years, or sell it, if market conditions are right.
 With commercial property, things will change over time. A history of good performance in any one sector doesn't always mean that will continue. You need to understand how cycles vary for each of the sectors (office, retail, leisure and industrial).
 You'll discover ongoing improvement in value results from two key factors: regular increases in your net rental, and a fall in the capitalisation rate over time. Keep a close eye on things like a looming over-supply of space within that sector, interest rate movements (particularly for retail), and your current position within the growth cycle.
 Investing in commercial property isn't difficult, it simply requires a little forward thinking. And in much of that will come with experience. Alternatively, you can shorten that process by having a team of trusted consultants.
Chris Lang is a commercial property investor and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment. 
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chrislang-EQKojcgJPV

Be a man or woman with a plan

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Nothing lasts forever, especially buildings, which is great news if you’re in the building industry but not so great if have to pay the bill.
Under Australian tax law a repair is not a simple matter of contacting a carpenter, plumber or builder to come and fix the problem and “Bob’s your uncle”. If you do more than merely repair the item and make improvements along the way, the expenditure is capital in nature and not a tax-deductible expense. There is often a fine line as to whether a job is one or the other.
What is a repair?
According to judicial authority, a repair is the replacement of worn-out parts with new parts in order to restore the item being repaired to its formal level of efficiency without changing its character. According to the Tax Office, “a repair for the most part is occasional and partial”.
With these rules in mind, if you plan to roll up the sleeves and do some repairs, make sure you merely restore the item to its previous condition by replacing any worn-out parts with new parts, and don’t improve its efficiency or change its character along the way. Otherwise the Tax Office could come down on you like a ton of bricks (excuse the pun!).
For example, suppose you decide to replace a couple of rusted galvanised roof sheeting with new ones. Under these circumstances, it’s clearly a repair, as you’re merely replacing worn-out parts with new parts and restoring the efficiency of function of the galvanised roof without changing its character. But if you decide to go the whole hog and replace the entire galvanised roof with terracotta tiles that are more efficient and durable, the expenditure is capital in nature and not tax-deductible. Although you’ve effectively fixed the problem, under tax law you’ve replaced the roof in “its entirety” and changed its original character. But all is not lost! If you can’t claim the expenditure as a repair, you can claim it under the capital works deductions provisions and write it off over a 40-year period at the rate of 2.5% per annum.
Initial repairs
There is a well-established principle under tax law that you can’t claim “initial repairs” Initial repairs are repairs you make to a newly acquired property that you intend to lease. For example, if you decide to spend $25,000 on fixing up faulty plumbing and painting all the faded walls to make your property more attractive to a potential tenant, the expenditure is capital in nature and not tax-deductible. This is because the need to do these repairs did not arise during the time you owned the property. But the good news here is if you can’t claim the expense as a repair, you may qualify for a tax deduction under the capital works provisions.
 
Jimmy B Prince is a tax specialist and author of <a href="https://au.wiley.com/WileyCDA/WileyTitle/productCd-0730375528" target="_blank">Tax for Australians for Dummies and Property &amp; Taxation</a> (Wiley Publishing Australia Pty Ltd)
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cknowlton-QnEa6ntUYP

Is your repair tax-deductible?

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So you own an investment property or you are just about to buy one, and your friend says: “You don’t need a property manager – save yourself the money and do it yourself. Seriously, how hard can it be?”
It always makes me laugh when I hear such comments. I wonder if these people also do things such as change the brakes on their cars, or give themselves an annual health check-up. Property management is a professional field, and doing it yourself can cost you money, in addition to countless frustrating hours.
Let me give you a run-down of what a property manager might do in a typical week.
<ul>
<li>Photograph and market properties</li>
<li>Negotiate new leases and lease renewals between tenants and owners</li>
<li>Negotiate rent reviews and rent increases between tenants and owners</li>
<li>Counsel tenants who fall into arrears</li>
<li>Counsel owners during the tougher times of owning an investment property</li>
<li>Plan maintenance now and into the future</li>
<li>Understand the many different aspects of maintenance, including general repairs, insurance claims, warranty issues, building maintenance, etc.</li>
<li>Prepare and lodge landlord insurance claims</li>
<li>Understand the terms relating to landlord and building insurance policies</li>
<li>Offer financial assistance and planning for owners and tenants </li>
<li>Evict tenants who have failed to pay rent</li>
<li>Understand all relevant legislation – for example, you must know the Residential Tenancies Act 1997 and the VCAT Act &amp; Owners Corporation Act 2010 in Vicroria</li>
<li>Prepare notices and applications and present documents and cases within a tribunal or courtroom should disputes arise</li>
</ul>
I don’t know about you, but I think that’s a lot to know and deal with on a day-to-day basis. And after being in the industry for 17 years, I know there are some really poor property managers out there who would be lucky to return a telephone call let alone attend to half the items on the list above – but there are also some amazing property managers.
 
<hr class="system-pagebreak">
 
So the next time you are out looking at employing a new property manager, find a great one. Don’t haggle over the difference in management fees, which is no more than the price of a cup of coffee a week. You will always find people who will do it for a cheaper price, and at the end of the day you get what you pay for.
Funnily enough, in the past two weeks, I have been referred clients who have been paying low management fees and are unhappy and frustrated with the lack of service they have been receiving
A great property manager will not only save you money in the long run, but will also make you money. Isn’t it worth paying that little bit extra?
 
Leah Calnan is the director of <a href="https://www.metropm.com.au" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.  
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leahcalnan-pwE6GD6KY9

No, you can't manage it yourself – or at least not well

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A drastic undersupply of housing to accommodate Australia’s growing population has led to extremely low rental vacancy rates. The national vacancy rate is hovering around 1%, and in some places it is even lower.
Investors are beginning to come back into residential property, believing it to be a landlord’s market. But experts are urging caution, as house prices are expected to fall this year, particularly at the lower end of the market.
Here are some points to consider before diving into the residential housing market.
1. Understand that the undersupply is not going to be addressed quickly.
Angie Zigomanis, industry analyst and economic forecaster for BIS Shrapnel, says there are simply not enough properties for rent, which is forcing up rents and yields.
“There is a deficiency of stock in most capital cities," he says, "with Sydney most of all."
Despite strong construction in capital cities such as Melbourne, developers have still not been able to meet demand caused by Australia’s fastest population growth since the baby boom of the 1950s and ‘60s.
2. Understand that the best buying time has passed
Matthew Bell, economist for Australian Property Monitors (APM), says the best time to buy was a few years ago, when interest rates and prices were at their lowest. 
Louis Christopher, managing director of property adviser and forecaster SQM Research, agrees now is probably not the best time to get into the market, especially as prices aree likely to level out or fall over the next year.
3. Think about the movement of interest rates
With interest rates at 4.75% and many experts predicting they will rise even further, investors should be wary of biting off more than they can chew.
4. Check relative yields
While yields on rental properties are high, Christopher suggests would-be investors compare the higher yields on such alternative investments such as fully franked shares.
5. Realise that vacancy levels are not low across the board
“There are significant areas where vacancies are rising," warns Christopher. Do your research, because if you buy an investment property in an area with a vacancy rate of more than 3% it will be almost impossible to raise the rent.
6. Consider impact of banks requiring higher loan-to-valuation ratios
"By default, this will reduce the number of borrowers [in the lower end of the market]," Christopher says. In turn, this could be detrimental for prices.
However, although Bright says higher loan-to-valuation ratios will prevent many first home buyers from entering the market, that could strengthen the property market because there would be fewer forced sales.
7. Don't overlook the effect of the cutting of concessional super contribution caps.
The reduction of the caps on these contributions, which include salary-sacrificed, SG and tax-deductible contributions by the self-employed, is expected by some financial planners to encourage more investors to gear non-superannuation investments including residential property.
8. Choose your investment buy carefully
Bright says the best buys for investors are a step up from first-home buyer points. For example, he says the best buys in Sydney are those of $750,000 and above, in particular the $1 million to $2 million bracket.
9. Think about what will appeal most to tenants
Bright says in general, quality properties are near transport, activity centres, shops, entertainment centres and business centres, particularly in cities.
"Other factors such as a secure building, pleasant outlook and a balcony are highly desirable," he says, "while off-street parking can be a deal-maker or breaker, particularly in the very busy suburbs close to the city centres."
He warns investors to stay away from areas with an oversupply of properties for rent, unless they can secure sites with a point of difference, like a penthouse with knockout views.
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mlaurence-vhAHaLZT8y

9 things to consider before buying investment property

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With rumblings in the media about the Australian property bubble bursting and prices starting to come down, it might seem like the time to find yourself a property bargain. But property forecaster Louis Christopher says bargains are thin on the ground.
Christopher, managing director of property adviser and forecaster SQM Research, says even though it is slowing down, the Australian property market is not ripe for bargain-hunters. Many segments of the market are overvalued, and the withdrawal of the first-home buyer’s grant combined with higher interest rates are likely to result in a lacklustre 2011. However, that doesn’t mean there is not good value anywhere.
Potential bargains now on the market include these three examples, taken from the Home Discounts Report, published by <a href="https://www.sqmresearch.com.au/homediscounts/">SQM Research</a>.
<ul>
<li>A three-bedroom house in the Adelaide suburb of Elizabeth Grove with a huge backyard, on the market for $159,950. This is 53% less than its asking price when it first came on the market more than 500 days ago.</li>
</ul>
<ul>
<li>A five-bedroom house in good condition in Dunalley, Tasmania, with water views, beautiful gardens and a dam on a 7.37-hectare site is listed at $395,000. The price was cut by 47% during its more than 800 days on the market.</li>
</ul>
<ul>
<li>A four-bedroom waterfront property on Russell Island in Queensland is selling for $449,000. The property, which has a huge backyard with mature trees, has been on the market for more than 900 days and the price has come down 39%.</li>
</ul>
Here are eight top tips for bargain-hunters:
1. Only fools rush in: “Look now, don’t rush,” Christopher suggests. “The only trouble in trying to theoretically work out whether you have a bargain is that it may be a bigger bargain tomorrow because the market continues to fall.
2. Time it right: The best time to buy is at the bottom of a market trough, just before prices start to rise again. But as Christopher rightly points out: “No one rings a bell at the bottom of the market.”
However, that does not mean it is impossible to know when the right time is to buy. “Potentially, there could be bargains towards the end of this year [if most national markets have stopped falling by then],” Christopher says.
Buyers should study the market closely now to be ready to buy when the time is right and they have found the right property to suit their needs.
3. Be especially wary in over-priced areas: Darwin is “massively over-valued,” according to SQM, and properties in south-east Queensland and Perth are selling for far more than they should. Christopher says housing markets in these and other over-valued regions will remain sluggish or will continue to correct. If interest rates rise again this year, that could cause prices to fall further.
4. Everything is harder in Sydney – but that does not mean impossible: Sydney prices are rising, making bargains even more difficult to find. “In the next three years, I am not expecting any dramatic falls in Sydney,” Christopher says.
But that does not mean it is impossible to buy in Sydney. There are fewer bargains than in other capitals, but there is also much less risk that the price of an apparent bargain will fall after purchase – provided that you buy into a sought-after suburb.
“When a market is on the move, what someone paid for a very similar property a month or two ago can look like a bargain,” Patrick Bright, chief executive of buyers’ agent EPS Property Search in Sydney, says.
Bright says most deals that seem too good to be true usually are. He warns that buyers of properties with “something that’s not good about them” will either have to fix the fault or flaw or will have to sell the property at below market rates for the area.
However, some properties are listed at below market value because owners had initially asked too much and have cut the price out of desperation to sell.
What types of properties should savvy Sydney bargain-hunters look out for? “Stick to the inner ring, three to 15 kilometres from the CBD,” Bright says. He says buyers should look for properties close to beaches or those with harbour views.
“Correct property selection for the particular suburb is critical,” says Bright, “if you want to achieve a better-than-average return.”
Dennis Kalofonos, director of Sydney Property Finders, urges caution. “It is too early [in the year] to predict whether a property is a bargain or not,” he says.
“I think there needs to be a few more weeks and a couple more auction phases to go through to get a really good idea of where the pulse of the market and the direction it’s going.”
Kalofonos says suburbs with houses with large gardens that are still close to the city could be good value. He says these markets have risen dramatically as couples with young children move out of the inner city and into the closest suburbs to the CBD with big backyards.
“There’s no lawn in Paddington and Queens Park [inner eastern Sydney suburbs] and those suburbs are so expensive,” Kalofonos adds.
5. Watch for desperate vendors: Christopher says some vendors in areas with falling prices become desperate to sell and lower their prices below market rates.
6. Look for properties on the market a long time: Prices will sometimes fall on properties that have been on the market for more than two months.
Marketing of these properties often follows a pattern: vendors start off asking too much; agents lose interest, sometimes even warning prospective buyers that the house is overpriced and the vendor is difficult; vendors become desperate to sell; vendors cut the price heavily, sometimes below market value.
7. Monitor housing supply levels: When the supply of housing is rising sharply, buyers are in a much stronger position to negotiate for good deals.
According to figures compiled by SQM Research, the number of listings in Australia rose by more than 40% last year. Sydney had the lowest rise in housing supply, at 19.5%.
8. Future rezoning can increase value: Kalofonos says that housing with views over industrial areas could be worth buying, as they will be much more expensive if the land is rezoned to residential and new housing is built on former factory land.
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How to find property bargains 

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A prospective tenant of a Melbourne house recently offered management agent Melanie Dennis $50 a week more than the $400/week rent being asked at the property to try to secure the tenancy.
Dennis, the managing director of real-estate agency Domain Property Advocates, says offers of this kind are not unusual in the cutthroat under-$600/week rental market. With vacancy rates hovering around 1% across Australia and rents expected to rise by about 7% this year in capital cities, some renters are desperate to get a toehold in.
But despite a market that favours landlords, Dennis says she does not recommend a property owner necessarily accept the highest rental bidder. She says she always checks references carefully to ensure quality tenants. Additionally, bidding above the advertised rent levels could be illegal in some states.
Property Observer offers eight strategies to make the most of increasing rents – without losing highly prized, reliable tenants.
1. Give tenants notice of rent increases far in advance
Landlords in Victoria and NSW are required by law to give tenants 60 days’ notice before a rent increase. Landlords are also not allowed to increase rents during a lease.
Gary Triganza, senior property manager for inner-city Sydney agency Kelly &amp; Sons, says it could be beneficial to a landlord to give 60 days’ notice of a rent hike well before a lease expires.
Dennis suggests that landlords begin to think about increasing the rent three months before the lease expires in order to give them time to check market rents and get advice from agents on current market values. This all takes time.
“You will want any rent increase to lock in from the first day that the lease expires,” Dennis says.
2. Sometimes keeping good tenants is more important than getting the highest possible rent
Triganza says landlords should think about keeping rent slightly below market rate in order to keep a really good tenant. “Landlords can then go to the full market rent with the next tenant,” he says.
This strategy could actually save landlords money in the long term. “If a tenant looks after a property, it might need painting, say, every nine or 10 years instead of every, say, five years,” Triganza says.
Dennis says charging a tenant, say, $10 a week less than the market rate amounts to a valuable saving of $520 for the tenant, which might keep him or her in your property for longer. This in turn saves the landlord money, as rental income is not lost while searching for another tenant and the property is not being damaged with furniture being moved in and out.
3. Don’t charge rents above what the market will allow
Rents that are too high will scare off prospective tenants, leaving the landlord with no source of income, Triganza warns.
Dennis adds: “Every week that a property with a market rent of $350 a week, for example, sits vacant, the landlord is losing $350 a week.”
She also warns that tenants who are willing to pay above-market rates may be offering more because they have a poor tenancy history.
4. Make sure the agent checks all references
“Don’t take it for granted that your agent has checked the references of people who want to rent your property,” warns Dennis.
“I check a minimum of five references for each property. I won’t put a bad tenant into a property; I have to manage it.”
5. Insist on a rent-rise clause in leases longer than a year
Dennis says rent-rise clauses are especially crucial in markets when rents are increasing rapidly.
Triganza says in such tight rental markets landlords should consider offering six-month leases. Shorter leases enable landlords to raise rents more quickly. However, he says some landlords prefer the security of a long-term lease to the potential extra income from being able to raise rents frequently.
6. Let go of bad tenants
Due to the shortage of rental units and competitive rental market, Dennis says you do not have to put up with a tenant who is late paying rent, fails to keep the property clean or causes damage.
She suggests landlords tell tenants about any problems with their conduct, and if necessary, give them notice to vacate, even if the lease is not yet up.
However, she recommends that landlords try to maintain good relations with tenants by ensuring properties are in good condition. Tenants are more likely to look after properties that are well-maintained.
A well-maintained property is also more lucrative than a neglected one, as it can bring in hither rent. “Keep the property up to scratch, but I am not suggesting major renovations such as extensions,” Dennis says.
7. Review rents regularly
Fitzpatricks Real Estate property manager Lynette Kimball, who works in the regional NSW city of Wagga Wagga, suggests landlords review rent levels ever six months and try to keep rents at market rates.
8. Be aware of the effect of below-market rent on capital values
Kimball, who is chairwoman of the property management chapter of the Real Estate Institute of NSW, says keeping rents significantly below market rates for four or five years can backfire, because although it may ensure good tenants stay in the property, it can damage the resale value.
Kimball says she has seen instances when properties did not sell for expected prices because landlords were not able to show a history of satisfactory rents. “Consider not just today but the capital growth in the future,” she advises.
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