A trio of Queensland property groups have unveiled plans for a $300 million mixed-use redevelopment of the former Noosa Bowls Club site, a proposal that would deliver more than 200 new homes in one of the Sunshine Coast's most supply-constrained markets.

Kilter Property, Frank Developments and Calile Malouf Investments are behind the plans for the 1.8-hectare site at <a href="https://www.apartments.com.au/new-apartments/99-noosa-drive-noosa-heads-qld-4567">99 Noosa Drive</a>, which would transform the long-vacant site into a new residential precinct featuring 208 apartments, retail, hospitality and public space.

The proposal comes as Noosa continues to grapple with housing affordability and a shortage of permanent accommodation, particularly for key workers. The site's location in Noosa Junction, close to shops, public transport and employment, aligns with the direction of Noosa Council's Housing Strategy, which encourages higher-density housing within established activity centres rather than continued urban expansion.

The draft plans include 48 affordable-by-design apartments and 48 rooming accommodation units aimed at key workers. Around 2,000 sqm of ground-floor retail and food and beverage space would activate the street frontage, alongside a new public town square and landscaped open space.

<img alt="Noosa" data-entity-type="file" data-entity-uuid="2dd02f53-1360-4e51-801e-bfd61a6c980e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-26%20at%208.44.34%E2%80%AFPM.png?VersionId=x1iNs3BSMN6Jy7YUwaBZMHRrrKX2hMpy" />

&nbsp;

Frank Developments Founder and Director Frank Licastro said the development would continue the company's focus on architecturally-led residential projects while addressing one of the region's biggest challenges.

"Not only will this project exude a sense of luxury, it will also enhance not only the built environment but also the surrounding community," Licastro said.

"Noosa's success relies on the people who live and work here. Providing well-designed accommodation for key workers is critical to supporting the local economy and ensuring the Shire can continue to thrive."

Kilter Property Co-Founder Huw Williams said the focus was on delivering additional permanent housing while creating a mixed-use destination that benefits both residents and the wider community.

"Our focus is on delivering a well-considered mixed-use project that provides more permanent housing options, supports local workers and businesses, and delivers an exceptional product for the local market," Williams said.

"The redevelopment vision aligns with the long-term evolution of Noosa Junction as a vibrant activity centre, creating a destination that enhances the area's character while delivering significant economic and community benefits."

Calile Malouf Investments, best known for its role in Brisbane's James Street precinct and The Calile Hotel, will bring its place-making experience to the project. The company recently commenced construction on The Calile Noosa hotel and says the residential development will complement its growing investment in the region.

CMI Director Cal Malouf said the aim was to create a walkable precinct combining housing, retail and hospitality while remaining true to Noosa's character.

"We see a similar opportunity in Noosa to deliver a vibrant, walkable destination that combines exceptional housing, hospitality and retail in one integrated project," Malouf said.

Brisbane-based Cavill Architects has been appointed to design the project.

Joel Robinson

Noosa Bowls Club to be redeveloped into mixed-use apartment precinct

One of Brisbane's last major riverfront redevelopment opportunities has taken a significant step forward, with Lendlease selected as the Queensland Government's preferred development partner for the former Visy site in South Brisbane.

The seven-hectare industrial site, positioned between South Bank and West End and 1.3 kilometres from the Brisbane CBD, will be transformed into a mixed-use precinct expected to deliver more than 4,000 new homes alongside extensive public open space and riverfront parkland.

The project is one of the largest urban renewal opportunities currently planned in Brisbane and is expected to play a key role in accommodating the city's growing population ahead of the 2032 Olympic and Paralympic Games.

Plans for the precinct include a network of riverfront promenades and boardwalks, new public plazas, parkland, amphitheatre-style gathering spaces and shared pedestrian and cycling links designed to reconnect the long-isolated site with the Brisbane River.

The Queensland Government is targeting delivery of the first homes and key public spaces before the 2032 Games, allowing the precinct to begin contributing new housing and public amenity well before the broader masterplan is complete.

The redevelopment is also expected to support more than 3,000 jobs across planning, construction and ongoing operations.

For Lendlease, the appointment adds another major urban regeneration project to its Queensland portfolio. The developer has operated in the state for more than 70 years and has delivered a number of large-scale mixed-use precincts in partnership with government.

Lendlease Development CEO Claire Johnston said the project represented one of Brisbane's most significant redevelopment opportunities.

"The transformation of the former Visy site represents a rare opportunity to reimagine one of Brisbane's most significant riverfront locations, deliver thousands of much-needed homes, and create long-term legacy," Johnston said.

"In partnership with the Queensland Government, we have the opportunity to create a new riverside destination that will help shape Brisbane's growth and how people experience the city for decades to come.

"This is exactly the type of large-scale, city-shaping development that will provide lasting benefits for Queensland, bringing together housing, jobs and world-class public spaces."

Deputy Premier and Minister for State Development, Infrastructure and Planning Jarrod Bleijie said the riverfront transformation would deliver a thriving new community precinct.

“The Crisafulli Government is delivering this golden opportunity to unlock a riverfront jewel for all Queenslanders,” Deputy Premier Bleijie said.

“This is a once-in-a-generation moment to reshape a significant slice of Brisbane and deliver lasting benefits – thousands of new homes, and public spaces for all Queenslanders to enjoy well beyond the 2032 Olympic and Paralympic Games – unlike Labor’s plan which would have delivered zero benefits and zero new homes.

“Queensland is well and truly open for business and through partnership with the private sector, we are accelerating delivery while ensuring strong housing, community and economic outcomes."

Early works on the precinct are expected to commence in April 2027.

Lendlease selected to deliver transformative South Brisbane riverfront precinct

Eddy Haddad's <a href="https://www.apartments.com.au/developers/level-33">Level 33</a> is levelling up its approved Wollongong development, as the coastal city south of Sydney continues to prove popular in the high-density development space.

Level 33, a longtime developer in the Wollongong area, has gone through the NSW Government's Housing Delivery Authority to upsize its approved two-tower development on the corner of Crown Street and Gladstone Avenue, just 100 metres from Wollongong Station.

The developer currently has approval for 252 apartments across two buildings rising to 19 storeys. It is now seeking approval for 33 and 38-storey towers that would deliver 467 apartments, including 67 affordable homes.

Designed by <a href="https://www.apartments.com.au/architects/bka-architecture">BKA Architecture</a>, the development would comprise apartments above a three-level podium with around 1,100 sqm of retail space, along with basement parking for 448 vehicles.

According to the Urban Design Report by BKA, the proposal has the capacity to "reinforce the precinct's identity by strengthening links between health, education, and transport services, while also contributing to Wollongong's ongoing evolution as a key regional centre."

Wollongong is somewhat in vogue. Between Level 33 and Urban Property Group, the two developers have several thousand apartments planned across the city.

Level 33 is currently delivering Easterly Wollongong, one of its most boutique projects to date with just 21 high-end apartments, as well as Atchison &amp; Kenny, a 329-apartment development due for completion later this year.

The developer plans to redevelop the 13,088 sqm WIN Grand megasite into <a href="https://www.apartments.com.au/new-apartments/crown-square-216-238-keira-street-wollongong-nsw-2500">Crown Square</a>, a new $500 million precinct with nearly 600 apartments. It also has more than 900 apartments planned for the former Bunnings Warehouse site at the intersection of Gipps and Flinders streets.

Urban Property Group is also playing a major role in the city's transformation. Its five-tower Keira Place precinct will deliver more than 800 homes, and it has recently lodged plans for a further 300 apartments near Wollongong Station.

First look: Level 33 upsizes Wollongong apartment towers

Just a week after filing plans for the final stage of its major Keira Place masterplan, <a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has unveiled another significant housing proposal in Wollongong, this time targeting a prominent site opposite North Wollongong Station.

The developer has lodged a State Significant Development Application for a 38-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/4-4a-flinders-street-north-wollongong-nsw-2500">4-4A Flinders Street</a>, around one kilometre north of the <a href="https://www.apartments.com.au/new-apartments/keira-place-wollongong-120-122-smith-street-wollongong-nsw-2500">Keira Place precinct</a> currently taking shape on the edge of the CBD.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="2b6428f1-6405-4038-8476-897de440e90d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium.png?VersionId=QLqEvK0OuCEwRC47oHNftrw2B1YqaHF8" />

Designed by Studio.SC, the proposal comprises a 38-storey mixed-use development containing 303 apartments, including 45 affordable housing units, alongside 174 co-living residences. The scheme also includes ground-floor retail space, extensive landscaping and public domain improvements.

Studio.SC noted in the proposal it "outlines a vision for a landmark transit-oriented mixed-use development centred around North Wollongong Station, designed to support the city’s future growth while responding to the NSW Government’s housing and planning reforms."

The architecture firm said the proposal responds to the opportunities and constraints shaping future growth within the 400-metre catchment of the station and represents "a coordinated and future-focused approach to urban intensification, contributing to the long-term evolution of North Wollongong as a connected, walkable and high-density station precinct."

The site occupies a strategic corner bounded by Flinders Street, Station Street, Stafford Street and the Princes Highway, directly opposite North Wollongong Station.

<img alt="First look: Urban Property Group plans 38-storey North Wollongong tower as Keira Place expansion gathers pace" data-entity-type="file" data-entity-uuid="7863adad-1f71-4022-b850-f44b252738fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/flinders%20podium%20a.png?VersionId=WsU7av0g8_8R2tGHWxgHeFSlhu7yeY1V" />

The proposal follows Urban Property Group's recent submission for the second and final stage of Keira Place, which would deliver a further three buildings comprising 657 homes opposite Beaton Park. It builds on the first stage, which features 150 apartments across two towers and recently commenced construction.

Urban Property Group CEO Patrick Elias said breaking ground on the first stage marked a significant milestone for Wollongong and reflected the developer's long-term commitment to regional cities.

"Today's groundbreaking is about turning approvals into homes and moving quickly to deliver much-needed housing in Wollongong's city centre," Elias said.

"Keira Place will provide a diverse mix of homes close to jobs, transport and services, while setting a high benchmark for quality, durability and consumer protection."

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/urban-property-group-unveils-trio-of-towers-for-next-stage-of-new-wollongong-precinct-keira-place">Urban Property Group unveils trio of towers for next stage of new Wollongong precinct, Keira Place</a>

First look: Urban Property Group plans next major Wollongong tower

<a href="https://www.apartments.com.au/developers/arada">Arada Australia</a> has wasted little time expanding its ambitions in Campsie, lodging plans for a second major project in the rapidly transforming town centre just months after unveiling its three-tower One Campsie proposal on Beamish Street.

The UAE-backed developer has now taken aim at one of the suburb’s most strategically positioned sites, filing a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/10-north-parade-campsie-nsw-2194">33-storey mixed-use tower</a> at 10 London Street and 43 North Parade, directly opposite the future Campsie Metro Station. The proposal is currently on public exhibition and represents another significant vote of confidence in Campsie's emergence as one of Sydney’s key transit-oriented growth centres.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the development would deliver 156 apartments above a podium containing retail and commercial space, creating a new residential and commercial gateway to the town centre. The scheme also includes a four-level above-ground parking podium and a dedicated residential amenity floor featuring wellness and recreation facilities. At least 10 per cent of the apartments would be allocated as affordable housing for a period of 10 years.

The proposal occupies a 1,631 sqm site bounded by London Street, North Parade and Dispensary Lane, immediately adjoining the future Metro station precinct and just metres from Beamish Street’s retail and dining strip. According to the Urban Design Report, the project seeks to deliver "a great place that prioritises human-scaled experience and provides spatial improvements to the area."

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="175a8324-015b-4856-abe3-ce6f23199fa7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium%20campsie.png?VersionId=742UGwXFhFBX4GEl6wX4PYIWREAgn6il" />

Woods Bagot describes the tower as a key marker within Campsie's next phase of growth.

"Located directly opposite the new Campsie Metro Station on North Parade, 10 London Street is a thoughtfully composed 33-storey mixed-use tower that contributes to the ongoing transformation of the town centre," the Architectural Design Report states. The report says the project is intended to provide "high-quality homes within a vibrant, connected urban environment, while helping define Campsie's future skyline."

A strong emphasis has been placed on the public realm. The ground floor incorporates over 500 sqm of retail space and active frontages along both London Street and North Parade, while the podium is wrapped by extensive landscaped planting intended to soften the building's scale and strengthen the pedestrian experience. The development would also widen surrounding footpaths and improve connections between the Metro station and the broader town centre.

Above the podium, residents would have access to more than 1,400 sqm of communal amenities, including a pool, gym and landscaped recreation spaces. A distinctive green-wall treatment extending across four podium levels forms a major architectural feature, helping differentiate the project within the emerging high-density precinct.

The tower's design is closely tied to the broader Campsie Town Centre Master Plan and the arrival of Sydney Metro. The Urban Design Report notes the proposal "directly supports the Campsie Town Centre Master Plan by delivering new homes in a location explicitly identified for growth, improved accessibility, and high-quality urban renewal." It adds that the project contributes to the master plan's vision for a strengthened town centre supported by thousands of new homes around the future Metro station.

<img alt="First look: Arada doubles down in Campsie with 33-storey Metro-front tower plans" data-entity-type="file" data-entity-uuid="bfd17654-253e-489a-bade-6278d63db412" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/base%20campsie.png?VersionId=3roJPMQGs36dazpkhvpvbDDP73Ld.Ica" />

The application follows Arada Australia's recently lodged One Campsie project at 124–142 Beamish Street and 16–18 Ninth Avenue, where the developer is seeking approval for 346 apartments across three towers rising 24, 32 and 39 storeys. Together, the two proposals would cement Arada Australia as one of the most influential developers shaping Campsie's future urban form.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-arada-files-for-trio-of-apartment-towers-in-campsie-town-centre">First Look: Arada Australia files for trio of apartment towers in Campsie town centre</a>

Arada Australia entered the Australian market in 2024 and has rapidly assembled a significant development pipeline across Sydney. Alongside its Campsie holdings, the developer is soon to launch <a href="https://www.apartments.com.au/new-apartments/wattle-green-2-fishburn-crescent-castle-hill-nsw-2154">Wattle Green</a> in Castle Hill, and has expanded its local operations following its acquisition of construction firm Roberts &amp; Co.

Located around 14 kilometres south-west of the Sydney CBD, the site sits at the centre of one of Sydney's fastest-changing middle-ring precincts. The Metro conversion of Campsie Station, combined with Canterbury-Bankstown Council's master planning framework, is driving significant residential intensification around Beamish Street and North Parade, with thousands of new homes expected over coming decades.

First look: Arada Australia doubles down in Campsie with 33-storey Metro-front tower plans

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

The inflation result the property market was waiting for

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HIA welcomed the Government’s introduction of the National Housing Finance and Investment Corporation Bill (NHFIC) providing a platform to establish the First Home Loan Deposit Scheme announced during this year’s Federal election.
The organisation believes that the introduction of legislation by the Treasurer, Josh Frydenberg, to support the home ownership aspirations for 10,000 first home buyers is a key milestone in delivering their election commitment.
HIA Managing Director Graham Wolfe said “The First Home Loan Deposit Scheme, scheduled to commence in January, addresses one of the greatest hurdles facing those enthusiastically saving to purchase their first home. Saving for a home deposit can take up to ten years or more."
The new First Home Loan Deposit Scheme will save an average first home buyer in Sydney, with less than 20 per cent deposit, an estimated tens of thousands of dollars over the life of their loan.
Mr Wolfe added, “The Government’s progress in bringing the Scheme to market is exciting news for first home buyers. “
"HIA also applauds the Government’s commitment to housing supply under NHFIC. Planning for the next 20 years of housing supply to match Australia’s population growth and demographic change, and funding the delivery of infrastructure to support new communities, requires national coordination and leadership."
“The Commonwealth Government has a key role in working with the states and territories to ensure that we can accurately forecast Australia’s housing and community based infrastructure challenges and manage the supply needed to meet the future demand,” Mr Wolfe concluded.
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j.ballantyne1990-6AQqhLzZaK

First Home Loan Deposit Scheme will save first home buyers tens of thousands: HIA

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A Willoughby, South Australia mortgagee cottage listed six times in the past five years has had its asking price reduced again.
The two bedroom one bathroom cottage is situated on 139 hectares of primary production zoned land.
Paul Gibson of Cliff Hawkins is currently marketing the property.
The earliest indicator of its mortgagee status came in December 2018.
Situated at <a href="https://m.realestate.com.au/property-house-sa-antechamber+bay-109768556" target="_blank">2332 Cape Willoughby Road</a>, the holding is listed for $450,000 and according to Realestate.com.au is now under offer.
The asking price is a $330,000 reduction on what it originally sought back in July 2015 of $780,000.
Featuring two dams, one being spring fed a large working shed/garage and 5 rain water tanks, the property has views from the cottage with decking on three sides.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
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Much listed Willoughby, SA mortgagee holding slashed $330,000 and under offer

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A new apartment development in Melbourne’s western suburb of Williams Landing has been completed.
ASX-listed developer Cedar Woods Properties’ Lancaster Apartments, which was designed by Designed by DKO Architecture, has settled.
Lancaster is Cedar Woods’ third development in the area after the sold-out Newton and Oxford Apartments, with a fourth, Lincoln Apartments, on the way.
According to a recent Urbis report, the median price for an apartment in the area has nudged over $400,000 - an increase of 15.4% over three years.
Weekly rents have increased by 5.4% in the past year, with vacancy rates sitting at 5.5%, the Urbis report said.
Williams Landing benefits from transport, amenity and infrastructure links, Cedar Woods’ state manager for Victoria, Lloyd Collins, said.
 “Rental demand is, of course, one of the key indicators of the financial health of investment properties, so we are pleased to see that newly completed apartments are achieving low rental vacancies,” says Collins.
<img src="https://www.urban.com.au/images/2019/9/2/Lancaster_Entrance.png" alt="">
Ela Caglayan, a 23-year-old buyer’s assistant at Target Australia – which relocated its headquarters to Williams Landing at the end of 2018 – has recently moved into Lancaster as a first home buyer.
“I’ve always wanted to live in an apartment,” said Caglayan.
“Once Target relocated from Geelong to Williams Landing, I saw the opportunity to finally invest in my first property, which not only suited my lifestyle but was also affordable and allowed me to take advantage of the first home owners grant.”
“Now I’m able to live close to work, which is definitely a bonus, but I also saw strong growth prospects for Williams Landing – the investment was too good to pass on. I’m looking forward to watching the suburb develop.
“A few of my family and Target colleagues have already moved to the area, and I think more are interested in buying into the community.”
 
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New Williams Landing development Lancaster Apartments completed

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EXPERT OBSERVATION
After the biggest fall in at least 40 years – with a 10.2% top to bottom fall between September 2017 and June this year - average capital city home prices have turned up again.
I thought prices would fall further with a 15% top to bottom fall led by around 25% falls in Sydney and Melbourne. But the facts changed from May – with the election removing the threat to negative gearing &amp; the capital gains tax discount, earlier than expected interest rate cuts &amp; a relaxation of APRA’s 7% interest rate test all pushing prices up again. So, where to from here?
Extreme property views
There are basically two extreme views amongst “property experts”. On the one hand, some real estate spruikers still wheel out the old “property will double every seven years” line. On the other hand, property doomsters say it’s hugely overvalued and over-indebted with massive mortgage stress and so a 40% or so crash is inevitable.
The trouble with the former is that implies home price growth of 10.3% pa, so even if wages growth picks up to 3.5% (a big ask!) it implies that the average price to income ratio of Australian housing will rise to around nine times over the next seven years from around six times now and in 14 years’ time it will be 14 times!
The trouble with the doomsters is that they’ve been saying that for 15 years and we’re still waiting for the crash.
In between, first home buyers are wondering why it’s so hard to do what my and my parent’s generation took for granted: be part of the Aussie dream with a quarter acre block.
The reality is it’s far more complicated than these extremes. Here’s seven stylised “facts” regarding Australian property.
First – it’s expensive
This has been the case since early last decade and remains so despite the recent correction in prices:
<ul>
<li>According to the 2019 Demographia Housing Affordability Survey the median multiple of house prices to income is 5.7 times in Australia versus 3.5 in the US and 4.8 in the UK. In Sydney it’s 11.7 times &amp; Melbourne is 9.7 times.</li>
<li>The ratios of house prices to incomes and rents relative to their long-term averages are at the high end of OECD countries.</li>
<li>The surge in prices relative to incomes has seen household debt relative to household income rise from the low end of OECD countries 25 years ago to the high end now.</li>
</ul>
<a href="https://www.propertyobserver.com.au/images/2019/9/11/house%20price%201.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/11/house%20price%201.jpg" alt="">
These things arguably make residential property Australia’s Achilles heel. But that’s been the case for 15 years or so now.
Second – it’s diverse
While it’s common to refer to “the Australian property market”, in reality there is significant divergence between cities. This divergence has been extreme over the last five years with Perth and Darwin seeing large price falls in response to the end of the mining investment boom, as other cities rose.
<a href="https://www.propertyobserver.com.au/images/2019/9/11/house%20price%202.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/11/house%20price%202.jpg" alt="">
The divergence is also evident in gross rental yields that range from 8.7% in regional WA units to 3.1% in Sydney houses.
Third – talk of mortgage stress is overstated
Headlines of excessive mortgage stress have been common for over a decade now.
There is no denying housing affordability is poor, household debt is high and some households are suffering significant mortgage stress. But most borrowers appear to be able to service their mortgages.
And despite some seeing negative equity and a significant proportion of borrowers switching from interest only to principle &amp; interest loans (which has seen interest only loans drop from nearly 40% of all loans to 23%) there has been no surge in forced sales and non- performing loans.
Non-performing mortgages have increased but remain low at around 0.9%.
While Australia saw a deterioration in lending standards with the last boom, it was nothing like other countries saw prior to the GFC.
Much of the increase in debt has gone to older, wealthier Australians, who are better able to service their loans.
Low doc loans are trivial in Australia and the proportion of high loan to valuation ratio loans has fallen as has the proportion of interest only loans.
<a href="https://www.propertyobserver.com.au/images/2019/9/11/house%20price%203.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/11/house%20price%203.jpg" alt="">
Fourth – it’s been chronically undersupplied
Annual population growth since mid-last decade has averaged 373,000 people compared to 217,000 over the decade to 2005, which requires roughly an extra 75,000 homes per year.
Unfortunately, the supply of dwellings did not keep pace with the population surge (see the next chart) so a massive shortfall built up driving high home prices.
Thanks to the surge in unit supply since 2015 this is now being worked off, but it follows more than a decade of accumulated undersupply which is the main reason why housing has remained relatively expensive in Australia.
Not tax breaks or low rates – all of which exist in other countries with far more affordable housing!
<a href="https://www.propertyobserver.com.au/images/2019/9/11/house%20price%204.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/11/house%20price%204.jpg" alt="">
Fifth – house prices go up and down
After several episodes of price declines ranging from 5 to 10% across various cities over the last 15 years and 15%, 21% and 31% for Sydney, Perth and Darwin respectively in recent years home buyers should be under no illusion that prices only go up.
Sixth – the housing market remains rate sensitive
While it varies from city to city, despite much scepticism recent rate cuts have helped push up the property market again.
Finally – house price crashes are not easy to forecast
The expensive nature of Australian property and associated high debt levels have seen calls for a property crash pumped out repeatedly over the last 15 years.
In 2004, The Economist magazine described Australia as “America’s ugly sister” thanks in part to soaring property prices.
Property crash calls were wheeled out repeatedly after the Global Financial Crisis (GFC) with one commentator losing a high-profile bet that prices could fall up to 40%.
In 2010, a US newspaper, The Philadelphia Trumpet, warned that “Los Angelification” (referring to a 40% slump in LA home prices around the GFC) will come to Australia. Similar calls were made a few years ago by a hedge fund researcher and a hedge fund: “The Australian property market is on the verge of blowing up on a spectacular scale."
Over the years these crash calls have often made it on to 60 Minutes and Four Corners.
But our view remains that to get a national housing crash – as opposed to periodic falls in some cities – we need much higher unemployment, much higher interest rates and/or a big oversupply.
But while the risk of recession has increased it remains unlikely, aggressive rate hikes are most unlikely and while property supply still has more upside it’s unlikely to lead to a big oversupply as approvals to build new dwellings are now falling.
As we have seen for years now overvaluation and high debt on their own are not enough to bring on a crash.
So where to now?
The rebound in buyer interest since May has seen auction clearance rates in Sydney and Melbourne rise to around 75% and prices lift nearly 2%, albeit other cities are mixed.
<a href="https://www.propertyobserver.com.au/images/2019/9/11/house%20price%205.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/11/house%20price%205.jpg" alt="">
 
This has so far come on low volumes, but they now look to be rising. Our base case is that house price gains will be far more constrained than the 10-15% implied by current auction clearance rates.
Compared to past cycles debt to income ratios are much higher, bank lending standards are tighter, the supply of units has surged with more to come and this has already pushed Sydney’s rental vacancy rate above normal levels and unemployment is likely to drift up as economic growth remains soft.
So, we don’t expect to see a return to boom time conditions and see constrained gains through 2020 – eg around 5% or so. There are three key things to watch:
<ul>
<li>The Spring selling season – if auction clearances remain elevated as listing pick up then it will be a positive sign that the pick-up in the property market has legs.</li>
<li>Housing finance commitments – these have bounced but will have to pick up a lot further to get 10-15% price rises.</li>
<li>Unemployment – if it picks up significantly in response to slow economic growth then it will be a big constraint on house prices and could result in another leg down in prices.</li>
</ul>
We don’t see the rebound in the Sydney and Melbourne property markets as a barrier to further monetary easing, but it may reduce the need as it turns the wealth effect from negative to positive. And if it continues to gather pace then expect a tightening of the screws again from bank regulators.
Implications for investors
Over long periods of time residential property provides a similar return to shares (at around 11% pa) but it offers good diversification as it performs well at different times to shares so it has a role to play in investors’ portfolios.
The pull back in prices in several cities in the last few years provides opportunities for investors, but just bear in mind that rental yields remain relatively low in Sydney and Melbourne and be wary of areas where there is still a lot of new units to hit.
There is probably better value to be found in regional centres and Perth, and Brisbane looks attractive in offering reasonable yields, a low vacancy rate and improving population growth.
Key points
<ul>
<li>
The Australian housing market remains far more complicated than optimists &amp; doomsters portray it to be.
</li>
<li>
Yes, it’s expensive and heavily indebted but talk of mortgage stress is overstated &amp; it’s been undersupplied.
</li>
<li>
The combination of rate cuts, the election and a modest regulatory relaxation have helped turn property prices back up, but the upswing is likely to be constrained.
</li>
</ul>
Dr Shane Oliver is Head of Investment Strategy and Chief Economist AMP Capital.
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soliver-smf6LQXgW9

The seven things you need to know about the Australian property market: Shane Oliver 

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Caltex Australia has put 25 properties to market in the first tranche of a 50 property divestment strategy. 
The 25 service station/convenience store properties include 16 in New South Wales, seven in Victoria, one in WA, and one on the Gold Coast.
Caltex chief development officer, David Bridger, confirmed the strategic release of the first tranche of the sale of 50 freehold metropolitan sites was aimed at the apartment and mixed use market. 
The properties will be sold through CBRE and Stonebridge with purchasers having options to buy individual sites, sites in any combination or the offering as a whole. 
Locations include Surfers Paradise, Bondi, Mascot, Box Hill, and Perth.
CBRE Director Investments, Mark Wizel said the portfolio offered an opportunity for apartment, mixed use, retail, hotel and build-to-rent developers. 
"These sites are being offered at a time of strong ongoing demand for low to medium rise apartments which are now in short supply, due to the lack of development site opportunities within metro areas, particularly in Melbourne and Sydney," Wizel said. 
"The fact that the bulk of the sites are extremely well located to transport, schools and town centres make them ideal for apartments but for the same reasons they are also well suited to a range of other uses."
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/9/Caltex%20Brunswick%20East.jpg" alt="">
He said the offering had also come at a time when developers were looking to the suburbs for well-located low/medium rise opportunities. 
"Coincidentally those type of projects are ones which the banks are now much more amenable to providing funding for," Wizel said. 
He said market drivers such as the improving domestic residential clearance rate, low interest rates, and ongoing population growth would also be top of mind for prospective purchasers. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/9/Caltex%20Clayton-2.jpg" alt="">
Recent CBRE research revealed an almost 30% rise in Asian buyer’s total spending from $880 million in 2017/2018 to $1.135 billion over the 2018/2019 financial year in Melbourne alone with nearly 80% of investment sales since June 1/2019 involving Asia-based investors. 
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Caltex puts 25 development sites on the market

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EXPERT OBSERVER
<div class="page" title="Page 1">
<div class="layoutArea">
<div class="column">
The introduction of legislation giving effect to the Commonwealth Government’s deposit gap scheme is the first step in easing the pathway to home ownership.
The scheme – promised on the eve of the federal election – helps reduce barriers to home ownership by closing deposit savings requirement and effectively reducing mortgage insurance costs. 
We welcome introduction of the legislation and said the next critical step was getting design features right. 
UDIA has been actively engaging with the National Housing Finance and Investment Corporation (NHFIC), which has carriage of the scheme’s design, implementation and ongoing management. 
The scheme rightly recognises that saving for a deposit is arguably the biggest hurdle most homebuyers face in trying to enter the market. 
The rapid escalation in house prices in the past decade has widened the deposit gap, so the Commonwealth’s decision to effectively go guarantor on a portion of the loan makes sense. 
It sits well alongside other initiatives to improve housing affordability – like retention of negative gearing and capital gains tax arrangements, and improved loan serviceability assessment rules. 
The next challenge is to ensure the design principles of the scheme reflect the reality of house prices in different markets. 
The draft legislation proposes variable price caps for different capital cities and regions, which is a perfectly logical step. 
We would also urge however that the same flexibility apply to income thresholds, particularly in the most expensive capital cities like Sydney and Melbourne. 
Our research shows that singles in particular on the proposed income threshold of $125,000 would not be able to access housing in large tracts of Sydney and Melbourne. 
The other recommendation we would make is to limit access to the scheme to newly-constructed properties, which has the benefit of spurring construction activity at a time the economy needs a boost.
We also welcome provisions in the legislation to expand the mandate of NHFIC to examine housing supply, demand and affordability. 
The renewed research capacity will give the Government deeper insights into the policy barriers to improved housing production and better affordability. 
UDIA National looks forward to working further with Government on the precise design of the new mandate for NHFIC. 
CONNIE KIRK is the UDIA National Executive Director.
</div>
</div>
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jrobinson-rf4aSBido9

Deposit gap scheme opens the door to home ownership: UDIA's Connie Kirk

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EXPERT OBSERVER
Sydney’s Inner West Council has a new policy that it is reported means “residents will no longer need to seek council approval to prune or remove trees within three metres of an existing home or structure”.
Hold on, don’t reach for that chainsaw yet, because <a href="http://www.aecom.com/content/wp-content/uploads/2017/04/Green-Infrastructure-vital-step-brilliant-Australian-cities.pdf" target="_blank">research shows</a> good green infrastructure – trees, green roofs and walls – can add value to your home.
 
Green infrastructure offers significant, economic, social and environmental benefits. Urban greening is particularly important in dense urban areas like Sydney’s Inner West. Among its benefits, green infrastructure:
<ul>
<li><a href="https://theconversation.com/how-urban-bushland-improves-our-health-and-why-planners-need-to-listen-72876" target="_blank">improves air quality</a></li>
<li>provides <a href="https://theconversation.com/many-people-feel-lonely-in-the-city-but-perhaps-third-places-can-help-with-that-92847" target="_blank">space for social interaction</a>
</li>
<li><a href="https://theconversation.com/more-than-just-drains-recreating-living-streams-through-the-suburbs-83345" target="_blank">manages stormwater</a></li>
<li><a href="https://theconversation.com/why-are-cities-warmer-than-the-countryside-53160" target="_blank">reduces the urban heat island effect</a></li>
<li>provides space for <a href="https://theconversation.com/three-ways-cities-can-help-feed-the-world-without-costing-the-earth-112186" target="_blank">urban food production</a>
</li>
<li>
<a href="https://theconversation.com/the-small-patch-of-bush-over-your-back-fence-might-be-key-to-a-species-survival-108672" target="_blank">improves biodiversity</a>.</li>
</ul>
Some of these benefits accrue to owners/occupiers, whereas others provide wider societal benefits.
A <a href="http://www.aecom.com/content/wp-content/uploads/2017/04/Green-Infrastructure-vital-step-brilliant-Australian-cities.pdf" target="_blank">2017 study</a> focusing on three Sydney suburbs found a 10% increase in street tree canopy could increase property values by A$50,000 on average. And the shading effect of trees can <a href="http://www.gallagherstudio.com.au/blacktown-cool-streets-pilot-project" target="_blank">reduce energy bills by up to A$800 a year in Sydney</a>. So retaining your green infrastructure – your trees, that is – can deliver direct financial gains.
On a larger scale, a <a href="https://opus.lib.uts.edu.au/bitstream/10453/121458/1/Ghosh_Yung-Full-paper-Ecocity-Summit-2017-Final.pdf" target="_blank">collaborative project</a> with Horticulture Innovation Australia Limited compared carbon and economic benefits from urban trees considering different landuses along sections of two roads in Sydney. Higher benefits were recorded for the Pacific Highway, with 106 trees per hectare and 58.6% residential land use, compared to Parramatta Road, with 70 trees per hectare and 15.8% residential.
For the Pacific Highway section, total carbon storage and the structural value of trees (the cost of replacing a tree with a similar tree) were estimated at A$1.64 million and A$640 million respectively. Trees were also valuable for carbon sequestration and removing air pollution.
Tree species, age, health and density, as well as land use, are key indicators for financial and wider ecosystem benefits. Specifically, urban trees in private yards in residential areas are vital in providing individual landowner and collective government/non-government benefits.
<a href="https://images.theconversation.com/files/290832/original/file-20190904-175710-thqcje.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/290832/original/file-20190904-175710-thqcje.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
Take away the trees close to these houses in Marrickville, in Sydney’s Inner West, and how much would be left? <a class="source" href="https://en.m.wikipedia.org/wiki/Henson_Park" target="_blank">Graeme Bartlett/Wikipedia</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/" target="_blank">CC BY-SA</a>
<h2>Challenges of growth</h2>
As populations grow, cities increase density, with less green infrastructure. The loss of greenery affects the natural environment and both human and non-human well-being.
<a href="https://images.theconversation.com/files/290809/original/file-20190904-175682-j6pcza.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/290809/original/file-20190904-175682-j6pcza.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a>
Tree canopy cover across Greater Sydney plummets closer to the city centre. <a class="source" href="https://www.greater.sydney/metropolis-of-three-cities/sustainability/city-its-landscape/urban-tree-canopy-cover-increased" target="_blank">© State of New South Wales through the Greater Sydney Commission. Data: SPOT5 Woody Extent and Foliage Projective Cover (FPH) 5-10m, 2011, NSW Office of Environment and Heritage</a>
Trees and other green infrastructure reduce some impacts of urban density. However, policies, government incentives and national priorities can produce progress in urban greening or lead to setbacks. In the case of the Inner West Council, for instance, the inability to fund monitoring of changes in tree cover could lead to reductions at the very time when we <a href="https://www.greater.sydney/metropolis-of-three-cities/sustainability/city-its-landscape/urban-tree-canopy-cover-increased" target="_blank">need more canopy cover</a>.
<a href="https://theconversation.com/if-planners-understand-its-cool-to-green-cities-whats-stopping-them-55753" target="_blank">Key concerns</a> include installation and maintenance costs of green infrastructure (trees, green roofs and walls) in property development, and tree root damage. Knowledge and skills are needed to maintain green infrastructure. As a result, developers often consider other options more feasible.
In the short and long term, multiple performance benefits and economic and environmental values are needed to establish the viability of green infrastructure.
<h2>Learning from Stockholm</h2>
Stockholm shares many issues found in Australian cities. Stockholm houses over 20% of Sweden’s inhabitants, is increasing in density and redeveloping land to house a growing population. Aiming to be fossil-free by 2050, Stockholm acknowledges the built environment’s role in limiting climate change and its impacts.
In a research project we intend to use <a href="https://theconversation.com/au/topics/virtual-reality-5439" target="_blank">virtual reality</a> (VR) and <a href="https://www.healthdirect.gov.au/electroencephalogram-eeg" target="_blank">electroencephalogram</a> (EEG) technology to assess perceptions of green infrastructure and reactions to it in various spaces.
Our project combines VR with EEG hardware, which measures human reactions to stimuli, to learn how people perceive and value green infrastructure in residential development.
<h2>Identifying all the value of green infrastructure</h2>
The many benefits of green infrastructure are both tangible and non-tangible. Economic benefits include:
<ul>
<li>those that directly benefit owners, occupants or investors – stormwater, increased property values and energy savings</li>
<li>other financial impacts – greenhouse gas savings, market-based savings and community benefits.</li>
</ul>
The various approaches to evaluating net value present a challenge in quantifying the value of green infrastructure. The most common – cost-benefit analysis, triple bottom line, life cycle assessment and life cycle costing – are all inadequate for evaluating trade-offs between economic and environmental performance. Conventional cost-benefit analysis is insufficient for investment analysis, as it doesn’t include environmental costs and benefits.
This is salient for green infrastructure, as owners/investors incur substantial direct costs, whereas various shareholders share the value. Perhaps, in recognition of the shared value, a range of subsidies could be adopted to compensate investors. Discounted rates anyone?
Recent efforts to evaluate the business case for green infrastructure include attempts to identify and quantify the creation of economic, environment and community/social value. However, an approach that includes a more comprehensive set of value drivers is needed to do this. This is the gap we aim to fill.
The results of experiments using VR and EEG technology and semi-structured interviews will provide a comprehensive understanding of green infrastructure. This will be correlated with capital and rental values to determine various degrees of willingness to pay.
With this knowledge, property developers in Sweden and Australia will be able to make a more informed and holistic business case for increasing green infrastructure for more liveable, healthy cities.
Maybe we can then persuade more people, including those in the Inner West, to hang onto their trees and leave the chainsaws in the garage.<img src="https://counter.theconversation.com/content/122710/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/sara-wilkinson-14186">Sara Wilkinson</a>, Associate Professor, School of the Built Environment, <a href="http://theconversation.com/institutions/university-of-technology-sydney-936" target="_blank">University of Technology Sydney</a>; <a href="https://theconversation.com/profiles/agnieszka-zalejska-jonsson-823679" target="_blank">Agnieszka Zalejska-Jonsson</a>, Researcher, Division of Building and Real Estate Economics, <a href="http://theconversation.com/institutions/kth-royal-institute-of-technology-3258" target="_blank">KTH Royal Institute of Technology</a>, and <a href="https://theconversation.com/profiles/sumita-ghosh-485400" target="_blank">Sumita Ghosh</a>, Senior Lecturer, School of the Built Environment, <a href="http://theconversation.com/institutions/university-of-technology-sydney-936" target="_blank">University of Technology Sydney</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/trees-can-add-50-000-value-to-a-sydney-house-so-you-might-want-to-put-down-that-chainsaw-122710" target="_blank">original article</a>.
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Trees can add $50,000 value to a Sydney house, so you might want to put down that chainsaw

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Many first home buyers feel a sense of optimism about commencing their journey into the property market, according to the latest Herron Todd White (HTW) residential report. 
The report notes that obtaining real value for money, affordability (repayments) and wariness of making a mistake are their key concerns.
Many first home buyers can be categorised into two groups:
1. Those who are over the rental roller coaster and the high costs of renting even a modest property in their preferred location
2. Those who want the perceived stability of owning their own home and are intent on building a nest for their existing or imminent family.
"Within the Lismore locality, the affordable end of the market that provides an entry into the property market for let’s say less than $350,000 offers a wider range of choice not available in the beach side or coastal areas," the valuation firm said. 
A three bedroom home at <a href="https://www.realestate.com.au/sold/property-house-nsw-east+lismore-130399394" target="_blank">103 Nielson Street, East Lismore</a> (pictured above) sold for $335,000 earlier this year.
The property is flood free according to Lismore City Council records, is within 50 metres of sporting fields, three kilometres by road from the Lismore CBD and within one kilometre of the Southern Cross University.
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Built in the 1950s and recently internally renovated, this three-bedroom, one-bathroom dwelling is set on a 506 square metre, near-level lot with a single garage and room for a shed at the rear or a carport in front of the single garage.
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<a href="https://www.realestate.com.au/sold/property-unit-nsw-goonellabah-130861762" target="_blank">3/25 Cambridge Drive, Goonellabah </a>(pictured above) sold for $320,000 in April this year.
The property is flood free according to Lismore City Council records, backs on to a bushland reserve and is within one kilometre of schools, parks and Goonellabah shopping centre and aquatic centre.
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Built in 1994 and recently internally renovated, this three-bedroom, one-bathroom unit has a single garage and has been well maintained. 
A paved outdoor area at the rear overlooks bushland. There is scope to further improve this unit and add value by adding a rear pergola and updating the kitchen to suit.
Upgrader home buyers
"Upgraders feel the need to expand their living to cater for growing families, create more comfort and move on up the property ladder.
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"Within the Lismore locality, upgraders from the entry level end of the property market with a budget between $350,000 and $600,000 have a wide range of choice that again is not available in the beach side or coastal areas," the valuation firm noted. 
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A renovated three bedroom home at <a href="https://www.realestate.com.au/sold/property-house-nsw-east+lismore-131185078" target="_blank">45 Barham Street, East Lismore</a> (pictured above) sold for $450,000 in May this year.
The property is well elevated with district views and is within 2.5 kilometres of schools, Lismore golf course, sporting parks and Lismore Square shopping centre.
Built in 1985, it’s a two storey, three-bedroom, one-bathroom, renovated, detached modern dwelling with a two-car detached garage and two-car attached carport. 
The dwelling has room to remodel the lower level rumpus room into more bedrooms or a home theatre room.
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Rendering the external brick skin, expanding the rear pergola to a large deck and adding an infinity edge pool could take this property to the next level and add significant value, but watch the budget!
Prestige-end buyers
"Prestige property in the Lismore area is to be taken in context. This is property that offers features, dwelling size or views that are not available to the upgrade market or first home buyer price levels.
"Whether it be from a win, windfall or just plain hard work, people in this market expect that their property is a cut above the rest and they deserve to be there," the valuation firm said. 
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At a price point above $600,000, local prestige property is available but sells less frequently and sometimes the best properties sell by word of mouth or by an unsolicited approach.
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A 2004-built home at <a href="https://www.realestate.com.au/sold/property-house-nsw-goonellabah-130722654" target="_blank">11 Sophie Street, Goonellabah</a> (pictured above) sold for $618,000 in May this year.
The property is well elevated in a modern estate with local views and is within three kilometres of schools, sporting parks and Goonellabah shopping centre.
Built in 2004, this two storey, four-bedroom, two- bathroom, detached two-level modern dwelling has 213 square metres of living area, large rear deck, a double lock up garage, extensive landscaping and a below ground pool all on a 788 square metre allotment. 
Features include:
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Additional storage area under the dwelling could be used to further expand the living area, but all that really needs doing to this property is just to keep it well maintained and tidy.
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A four bedroom home at <a href="https://www.realestate.com.au/sold/property-house-nsw-richmond+hill-130232890" target="_blank">4 Quail Place, Richmond Hill </a>(pictured above) sold for $840,000 in April this year.
The property is well elevated with good rural and distant hinterland views, and is within a ten minute drive of schools and Goonellabah shopping centre.
Built in the 1980s and renovated in 2012, this part two level, four-bedroom, three-bathroom, detached semi-modern dwelling has 278 square metres of living, outdoor areas of 94 square metres and is on a 1.54 hectare allotment.
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The property has room to be improved with a shed, pool, stable or tennis court.
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Lismore first home buyers feel optimistic: HTW Residential 

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EXPERT OBSERVATION
The consumer mood has lapsed back into slight negative territory again with continued pressure on family finances and concerns about the near term outlook weighing on sentiment.
The September survey included additional questions on the tax offset payments the Federal government began making with tax refunds from July 1. Just over 16% of consumers reported receiving a payment.
We estimate that around 30% of households are likely to receive a meaningful rebate so this survey indicates that about half of eligible consumers have already received a payment.
Amongst those that had received a payment, 29% planned to spend it all, and a further 16% planned to spend over half. The remainder (53%) planned to spend less than half including around 25% who planned to save the full payment.
Responses to additional questions on news recall show rising concerns about the economy and the global backdrop. The highest recall for the month was news on ‘economic conditions’ (33%) and ‘international conditions’ (19.8%) – the latter hitting a four year high.
<a href="https://www.propertyobserver.com.au/images/2019/9/11/consumer%20sentiment%201.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/11/consumer%20sentiment%201.jpg" alt="">
 
These proportions are up significantly from a year ago (20.5% and 8.3% respectively). News on both was widely assessed as more unfavourable, with the proportion reporting ‘unfavourable’ doubling over the year. There was a comparable lift in the proportion reporting employment news as ‘unfavourable’ as well.
These concerns about the state of the economy; the international backdrop; and employment are seeing consumers become more cautious about their finances. The sub-index tracking expectations for ‘finances, next 12 months’ declined 2.2% to be down 9.4% since June and at a four year low.
The sub-group detail suggests a range of factors may be contributing including concerns around jobs, persistent weak wages growth and low returns on financial assets weighing on sentiment amongst those at or nearing retirement age.
Consumer assessments of current finances also deteriorated slightly. The ‘finances vs a year ago’ sub-index declined 2.5% to 84.3. While that is above the low of 80.2 registered back in April, it is still a weak read, below long run averages.
It is particularly disappointing given the support that should be coming from the combined effect of policy – interest rate cuts and tax relief – and from stabilising housing markets.
A weaker near term outlook for the economy has also weighed on sentiment. The ‘economy, next 12 months’ sub-index is down 3.1% The disappointing June quarter national accounts update – released in the middle of the survey week – undoubtedly had an effect.
The report showed annual growth slowing to just 1.4%yr, the weakest pace since the GFC. Despite this, expectations for the economy are still comfortably above their July low, when the RBA’s back to back rate cuts appear to have badly rattled consumers.
Interestingly, consumers’ longer term expectations for the economy have been both steadier and more positive.
The ‘economy, next 5 years’ sub-index was the only component to post a rise this month, up 2.1% and up 6.7% since July to a level still comfortably above its long run average. That may be an indication that some of the difficulties currently facing the economy are expected to dissipate over time.
Consumer attitudes towards spending dipped in September. The ‘time to buy a major household item’ sub-index declined 2.8%, unwinding all of last month’s modest gain and taking the sub-index well below its long run average again. Spending on discretionary and big ticket durable items has been particularly weak over the last year.
Consumers’ job loss fears remained slightly elevated. The Westpac-Melbourne Institute Unemployment Expectations Index was essentially unchanged, holding at 133.5 in September, a touch above the long run average of 130 (recall that higher readings indicate that more consumers expect unemployment to rise in the year ahead).
The Index remains about 10% above the levels prevailing late last year, a clear sign of cooling conditions in the labour market.
Housing-related sentiment recorded a more mixed month after the clear positive response to interest rate cuts seen in June-July-August.
The ‘time to buy a dwelling’ index declined 2.9%, reversing most of last month’s gain. At 123.3, the index is still above its long run average of 120 and near a five year high. That said, the sizeable 7-8% declines in Sydney and Melbourne suggest the nascent recovery in prices in these markets may already be starting to dampen buyer enthusiasm.
In contrast, consumers’ house price expectations have continued to firm. The Westpac-Melbourne Institute Index of House Price Expectations Index posted a further 3.9% in September to be up a spectacular 45.8% since May. All major states recorded a lift in price expectations this month. Expectations posted a particularly strong 6.7% gain in NSW.
Responses to additional questions on the ‘wisest place for savings’ show a slight easing in risk aversion although it remains very high by historical standards. Consumers still heavily favour ‘safe options’, 61% nominating deposits, superannuation or paying down debt as the best place for savings, compared to 64% in June.
The proportion favouring real estate nudged up, but only slightly from 10% to 12% and the proportion favouring shares dipped slightly from 10% to 9%. Perhaps most tellingly, some 9% of consumers simply nominated ‘don’t know’ – the highest reading on records going back to 1974.
The Reserve Bank Board next meets on October 1. Westpac expects the Board will decide to cut the cash rate by a further 0.25% from 1% to 0.75%.
In August the Reserve Bank released a revised set of forecasts which showed a downgraded outlook for the unemployment rate; a further extension to the time when the inflation rate is expected to move into the 2-3% band; and a downward revision to the outlook for wages growth.
All of these forecasts were based on ‘market pricing’ for the interest rate path at the time which included one more rate cut in 2019 and a second move in early 2020.
Month to month timing of RBA moves is imprecise but with the case for lower rates quite clear and both US Federal Reserve and European Central Bank likely to be easing policy in the next week or so the next meeting in October seems a sensible time for the Reserve Bank to deliver the next rate cut.
Westpac expects a second cut in February 2020, which we believe will follow further cuts from the Federal Reserve by year’s end.
<a href="https://www.propertyobserver.com.au/images/2019/9/11/consumer%20sentiment%202.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/11/consumer%20sentiment%202.jpg" alt="">
Read full report '<a href="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/file/Australia/2019/September/er20190911BullConsumerSentiment.pdf" target="_blank">Westpac-MI Consumer Sentiment September' (PDF 128klb)</a>
BILL EVANS is Chief Economist for Westpac
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bevans-rYk9SxEa4r

Sydney and Melbourne's nascent recovery may already be starting to dampen buyer enthusiasm: Bill Evans 

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EXPERT OBSERVER
<div>Some blessed relief for housing investors as the number of interest-only loans was finally off the lows in the June 2019 quarter. </div>
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<div>Following changes to serviceability rules further increases should hopefully be observed in the second half of 2019. </div>
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<div>The stock of interest-only loans continued to decline sharply to 21.8 per cent of total mortgages, however - comfortably the lowest share on record - having been at 39 per cent of the stock of outstanding mortgages by value as recently as early 2017. </div>
<div> </div>
<div>This shows how dramatically effective the interest rate differential was in lending and borrowing behaviours, alongside caps and certain other restrictions. </div>
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<div>Despite all the hype, there have been comparatively few signs of forced selling to date, with most borrowers managing the transition comfortably. </div>
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<div>In fact, new stock listings have remained exceptionally low. </div>
 
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<div>There has been an impact on consumption, though, and NAB now forecasts three further interest rate cuts over the next nine months, as indeed does ANZ. In fact, NAB also sees a chance of unconventional measures on top of these cuts. </div>
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<div>Of the remaining interest-only loans Westpac retains the largest stock.</div>
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<div>Finally, the 5-year squeeze on higher-LVR lending has finally eased a little, with the majors steadily writing more loans at 80-90 per cent LVRs, which is also a relief to see.</div>
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Non-banks wrote a fair chunk of the loans at above 90 per cent LVRs, but there have been fewer exceptions reported as a share of total lending.
<div>Brink of crisis</div>
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<div>Overall, there are some tentative signs that banks are somewhat more willing and able to write mortgages, half a decade after the prudential tightening began. Investment lending is now only about half of what it was at the peak, and some loosening is welcomed to allow first homebuyers an opportunity to buy, with prices also lower over the past two years. Moreover, the banking Royal Commission brought Australia to the brink of a recession and a related banking crisis. At the last count monthly building approvals have crashed to 12,944 (with unit approvals down 44 per cent year-on-year), which is a diabolical leading indicator for activity in the economy, while credit growth is also dreadfully weak. Despite these atrocious numbers, there's often a palpable complacency evident in the housing market commentary. A banking crisis can still be averted, but only if banks can get some credit flowing again...and soon. </div>
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