As apartment buyers increasingly look beyond the four walls of their residence, the quality and depth of shared amenity has become a defining factor in how developments are designed and experienced, particularly in the high-rise, new apartment development space.

In Southbank, where high-density living continues to evolve, developers are placing greater emphasis on creating environments that support wellbeing, connection, and convenience as part of everyday life.

That approach sits at the heart of <a href="https://www.apartments.com.au/new-apartments/aura-at-melbourne-square-7-hoff-boulevard-southbank-vic-3006">AURA</a>, the latest residential tower in <a href="https://www.apartments.com.au/developers/osk-property">OSK Property</a>’s $3.5 billion Melbourne Square precinct. Rising 67 storeys above Hoff Boulevard, the 673-apartment development has been conceived around what OSK describes as a “vertical wellness ecosystem”, a layered collection of amenities that extends throughout the building rather than being confined to a single podium level.

[smartcode_project:default project_id=151921 project_image_fid=370263]

The amenity offering begins on the seventh level within the AURA Club, a dedicated resident hub focused on health, relaxation, and daily convenience. Here, residents will have access to an indoor swimming pool, cold plunge, spa, sauna, and steam room, alongside a fully equipped gym, reformer Pilates studio, and yoga room.

The wellness facilities are complemented by a range of spaces that acknowledge the changing ways people live and work. Work-from-home lounges and co-working areas sit alongside a library, music room, games room, cinema facilities, and open-air terrace spaces, providing residents with flexible environments that can adapt throughout the day.

[smartcode_project:default project_id=151921 project_image_fid=367468]

Beyond the internal amenity, AURA introduces a series of Japanese-inspired gardens that form a quieter counterpoint to the tower’s social spaces.

Landscaped retreats feature curated outdoor dining, tranquil courtyard seating, fire pit, and a tea house pavilion. Rather than functioning as simple recreational areas, the gardens have been designed as places for reflection and informal gathering, drawing on principles of balance, nature, and calm that underpin the project's broader design philosophy.

[smartcode_project:default project_id=151921 project_image_fid=367810]

The social amenity continues to evolve as residents move higher through the building. Levels 49 and 50 house the Meridian Club, where a lounge bar, conservatory spaces, and private dining rooms take advantage of elevated city views. At the summit of the tower, the exclusive Cumulus Club spans Levels 66 and 67, offering additional lounges, private dining, and meditation and treatment rooms positioned above Melbourne’s skyline.

For OSK Property, the extensive amenity offering reflects a broader focus on wellbeing as a core component of apartment living rather than an added feature.

“Aura stands tall as an exemplar of holistic wellness – its focus on social, physical and mental health culminate in a building that is calming, restorative and relaxing, where residents will have their own sanctuary within the well-connected and sought-after Southbank,” says OSK Property CEO Chong Boon Woon.

[smartcode_project:default project_id=151921 project_image_fid=367796]

AURA’s amenity strategy extends beyond the tower itself through its integration with the wider Melbourne Square precinct.

Residents will have direct access to Kennedy Park, Southbank’s 3,745 sqm landscaped public park, alongside a full-line Woolworths supermarket, childcare centre, hospitality venues, and approximately 1,600 sqm of additional retail planned within AURA’s lower levels. Together, these elements create a highly connected residential environment where daily needs, recreation, and wellness are woven into the fabric of the community.

[smartcode_project:default project_id=151921 project_image_fid=370253]

As Melbourne’s apartment market continues to mature, developments are increasingly judged by the lifestyle they provide beyond individual residences.

Through its combination of wellness facilities, landscaped retreats, social clubs, and precinct-wide amenity, AURA represents a shift toward a more comprehensive model of vertical living, one where shared spaces play as significant a role as the homes themselves.

[smartcode_project_cta:default project_id=151921]

Joel Robinson

AURA elevates amenity living at Melbourne Square

Builder-developer Scion is the latest to target Sydney's booming Hills Showground Metro precinct, filing plans for more than 100 apartments within walking distance of the station.

Scion has lodged a concurrent rezoning and State Significant Development Application for <a href="https://www.apartments.com.au/new-apartments/27-33-middleton-avenue-castle-hill-nsw-2154">27–33 Middleton Avenue</a>, where it plans to replace four existing homes with an 11 and 14-storey mixed-use development comprising 109 apartments, six affordable housing dwellings, and a ground-floor café.

Designed by BHK Architects, the proposal includes three levels of basement parking with 174 spaces, more than 1,200 sqm of communal open space, and extensive landscaping across the 3,791 sqm site.

The development has been designed as two buildings connected by a recessed wintergarden spine, with the 14-storey building positioned to the south and the 11-storey building to the north.

<img alt="Scion" data-entity-type="file" data-entity-uuid="64dc359d-736b-43b8-87a8-70a8285cab47" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-25%20at%208.47.01%E2%80%AFPM.png?VersionId=PXh.m8id_aevBPHEckPf88wQ2RQThPos" />

The apartment mix has been weighted towards owner-occupiers, with 13 one-bedroom apartments, 55 two-bedroom residences, 31 three-bedroom apartments, six three-bedroom lofts, and four four-bedroom homes. Six apartments will be dedicated as affordable housing in line with the NSW Housing SEPP.

According to the Architectural Design Report by BKH, the proposal seeks to create "a place-responsive architecture" inspired by the natural landscape surrounding Cattai Creek, while strengthening the public domain through landscaping, active frontages and a neighbourhood café.

Atlas Urban, in its Urban Design Report, says the proposal takes a different approach to increasing density around Hills Showground Station by favouring a more slender, vertically articulated built form over a conventional mid-rise outcome. The report argues this allows for greater deep soil planting, improved solar access and a better public domain outcome, while still delivering additional housing close to rapid public transport.

The site sits around 500 metres from Hills Showground Metro Station, within a precinct earmarked for significant residential intensification following the opening of the Sydney Metro Northwest line. Planning documents accompanying the application note that Greater Sydney's population has grown by more than one million people since planning for the precinct first began, reinforcing the need to accelerate housing delivery around existing transport infrastructure.

Scion is expanding its development pipeline which also includes <a href="https://www.apartments.com.au/new-apartments/chatham-west-ryde-2-6-chatham-road-west-ryde-nsw-2114">Chatham in West Ryde</a>, 62 apartments which are approaching completion. They also have a State Significant Development Application with the NSW Government's Housing Delivery Authority for <a href="https://www.apartments.com.au/new-apartments/96-anzac-avenue-west-ryde-nsw-2114">145 apartments on Anzac Avenue</a>, also in West Ryde.

First look: Scion plots Castle Hill apartment development near Hills Showground Metro Station

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>&nbsp;has unveiled its scaled-back plans for a pair of towers rising up to 49 storeys directly opposite Bella Vista Metro Station.

The builder-developer will deliver 674 apartments and a new mixed-use hub at the gateway to the station precinct.

The State Significant Development Application has been lodged under the Housing Delivery Authority pathway for the 6,979 sqm site at <a href="https://www.apartments.com.au/new-apartments/9-11-mawson-avenue-bella-vista-nsw-2153">9-11 Mawson Avenue</a>, with the apartments sitting above a mixed-use podium. Initial plans were for closer to 900 apartments across two 40-storey towers.

Located around 30 metres from the Bella Vista Metro Station entrance, the development is intended to act as a catalyst for the long-planned Bella Vista Station Precinct, transforming a vacant site into a transit-oriented residential and commercial destination.

Planning documents describe the project as delivering "a high-density mixed use destination that combines housing, retail and community-serving uses in a highly accessible setting."

<img alt="First look: Urban Property Group plans 674-apartment Bella Vista towers opposite Metro station" data-entity-type="file" data-entity-uuid="21c08216-589e-490d-ad08-2d88b6fa62d9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bella%20vista%20podium.png?VersionId=3TnwjjQCNwTsmyQRaWnFrLTSAF0CJeka" />

Designed by <a href="https://www.apartments.com.au/architects/turner-studio">Turner</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, the project comprises 674 apartments, including 102 affordable housing dwellings representing 15 per cent of the residential floor space. The housing mix spans studios, one, two and three-bedroom apartments, alongside a collection of townhouse-style residences integrated into the podium levels. The development also includes specialist disability accommodation and an elevated provision of adaptable and liveable housing.

The mixed-use podium has been designed to create an active urban centre around the Metro station, incorporating a 1,423 sqm supermarket, a 3,029 sqm gym, specialty retail spaces, a 100-place childcare centre and a publicly accessible "city room" community space. A secondary laneway, active frontages and landscaped public areas are intended to improve pedestrian connectivity through the site and strengthen links between the station precinct and surrounding neighbourhood.

In the project's design report, Turner said the proposal responds to Bella Vista's emerging role as a higher-density centre within Sydney's north-west growth corridor.

"The project transforms a strategically located site into a high-density mixed use destination that combines housing, retail and community-serving uses in a highly accessible setting," the report states.

"Active frontages, a publicly accessible city room, a secondary laneway and a mix of uses including a local supermarket, child care centre and gym create a more complete and socially useful urban environment for residents, workers and the wider community."

<img alt="First look: Urban Property Group plans 674-apartment Bella Vista towers opposite Metro station" data-entity-type="file" data-entity-uuid="0fde6220-82de-4f6a-9b63-d0fd8157acc9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bella%20vista%20da.png?VersionId=7hEmuSutH8plTd_RqqdmPu055F6qe554" />

Urban Property Group has been one of the busiest developers across Greater Sydney this year.

The developer is progressing around 1,000 apartments across <a href="https://www.apartments.com.au/news/nsw/first-look-urban-property-group-plans-next-major-wollongong-tower">two projects in Wollongong</a>, with several thousand more homes in the pipeline across Newcastle, Castle Hill, Little Bay and Penrith.

First look: Urban Property Group plans 674-apartment Bella Vista towers opposite Metro station

Burwood's southern town centre precinct is set for another major injection of housing, with <a href="https://www.apartments.com.au/developers/holdmark-property-group">Holdmark</a> unveiling plans for three mixed-use towers containing 900 apartments above new retail and commercial space.

The State Significant Development Application covers a consolidated 10,265 sqm site at 36-46 George Street and 16-26 Elsie Street, immediately south of Burwood's commercial core and within walking distance of Burwood Station, Westfield and Burwood Park.

The proposal comprises <a href="https://www.apartments.com.au/new-apartments/36-46-elsie-street-burwood-nsw-2134">three mixed-use towers</a> ranging between 32 and 43 storeys.

<img alt="First look: Holdmark unveils 900-home mixed-use precinct for Burwood town centre" data-entity-type="file" data-entity-uuid="84b90b18-a54c-426d-885b-6f205bc2b883" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/burwood%20da1.png?VersionId=cJrb7Snn7qNpRzgXBOXK13PKF2CK021Z" />

Designed by <a href="https://www.apartments.com.au/architects/studiosc">Studio.SC</a>, the scheme is positioned as a significant extension of Burwood's evolving high-density centre. The project would be delivered across two interconnected development parcels, replacing existing commercial buildings and creating a new pedestrian-focused precinct linking George Street, John Street, Elsie Street and Railway Crescent.&nbsp;

The design report describes the proposal as "a contemporary response to this evolving urban condition," adding that it seeks to "reinforce George Street's role as a human-scaled, active street while contributing to the broader rhythm and grain of the town centre."

The development features a mix of residential, commercial and retail uses, with activated ground-floor frontages intended to strengthen pedestrian connections between Burwood Station, Burwood Place, Westfield and the wider town centre.&nbsp;

The proposal also incorporates extensive communal facilities, landscaped open space and new through-site links designed to encourage public movement across the precinct.&nbsp;

<img alt="First look: Holdmark unveils 900-home mixed-use precinct for Burwood town centre" data-entity-type="file" data-entity-uuid="89a6bccc-b78b-4a97-a49f-cac1761f34b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/burwood%20podium%20a.png?VersionId=6HBYg_pKxAc3yCND_wDKZmfMfzfneHmz" />

Studio.SC said the project draws inspiration from Burwood Park and the area's mature tree canopy, with "warm, earthy tones and robust materials such as brick and sculpted concrete" used to anchor the buildings within their urban context.

The scale of the proposal reflects Burwood's growing role as one of Sydney's key metropolitan centres. Planning documents note the suburb's strong population growth, high apartment living rates and increasing transport accessibility, particularly with the future Burwood North Metro station expected to further strengthen the area's connectivity. The development is designed to capitalise on those transport links while introducing a substantial amount of new housing stock into the town centre.

Burwood is expected to see a development boom, with the NSW Government rezoning the Burwood North Metro Precinct, a move expected to deliver around 15,000 new homes surrounding the new station.

Earlier this month, Nascon lodged plans for a <a href="https://www.apartments.com.au/news/nsw/first-look-nascon-targets-burwood-growth-corridor-with-112-unit-apartment-tower">100-apartment development on the edge of the town centre</a>.

Holdmark's broader portfolio includes plans for nearly 800 new homes at Macquarie Park, currently before the NSW Government's Housing Delivery Authority. The developer is also behind a significant portion of the Melrose Park masterplanned redevelopment, as well as the former Caddens Corner drive-in site, where around 500 homes are planned.

First look: Holdmark unveils 900-apartment, mixed-use precinct for Burwood town centre

<a href="https://www.apartments.com.au/developers/hyecorp-property-group">Hyecorp</a> has completed construction of Audrey, its parkside apartment development in St Leonards South, becoming the first residential project within the St Leonards South Precinct to reach completion.

Residents are expected to begin moving into the Canberra Avenue development at the end of June, making Audrey the first opportunity for buyers to take up residence within the emerging precinct.

Positioned at the highest point on Canberra Avenue, directly opposite Newlands Park, the project enjoys protected parkland outlooks and district views that cannot be built out as the precinct continues to evolve.

Unlike many of the larger developments planned across St Leonards South, Audrey comprises just 102 residences, making it one of the more boutique offerings within the precinct. The smaller scale has enabled Hyecorp to place a strong focus on owner-occupier design, resident amenity, and long-term liveability.

[smartcode_project:default project_id=110379 project_image_fid=368333]

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, Audrey comprises a mix of three-bedroom apartments and a double-storey five-bedroom townhouse, with many residences positioned to capture views toward the Sydney CBD and Harbour Bridge. The project has been underpinned by a strong focus on design continuity, with Hyecorp working alongside interior designers <a href="https://www.apartments.com.au/interior-designers/jackson-teece">Jackson Teece</a> and landscape architects <a href="https://www.apartments.com.au/landscape-architect/site-image">Site Image</a> to shape both the private residences and shared amenity spaces.

<a href="https://www.apartments.com.au/buildings/audrey-st-leonards-13-19-canberra-avenue-st-leonards-nsw-2065">Audrey</a>’s interiors feature open-plan layouts, floor-to-ceiling glazing, oak timber flooring, bespoke joinery, and large-format stone finishes throughout the kitchens and bathrooms. Integrated Miele appliances, brushed metal tapware, and concealed cabinetry detailing were specified across the residences, reflecting Hyecorp's emphasis on quality and owner-occupier appeal.

The upper levels of the building are home to the Tiffany Collection, a premium offering occupying Levels 12 to 15. The residences include upgraded appliance packages, fluted standalone bathtubs, heated bathroom flooring, custom walk-in robes, and larger internal layouts ranging from 155 to 159 sqm.

[smartcode_project:default project_id=110379 project_image_fid=367164]

Backed by a 30-year legacy, Audrey reflects the experience of Hyecorp, an Australian family-owned developer with an award-winning track record across Sydney. As locals, Hyecorp understands the needs of local communities, creating homes and precincts designed for long-term liveability, connection, and lifestyle.

Despite its boutique scale, Audrey delivers an extensive suite of amenities typically associated with much larger developments. Residents have access to an indoor lap pool and spa, personal training studio, private cinema, music room, rooftop entertaining terrace, residents lounge, and private dining room overlooking the Sydney skyline.

The rooftop terrace and communal lounge spaces were conceived as extensions of residents' homes, supporting a lifestyle-focused environment that encourages wellbeing, flexibility, and community connection.

The project also incorporates a ground-floor café and an integrated daycare centre, adding to the growing mixed-use character emerging across the St Leonards South precinct.

[smartcode_project:default project_id=110379 project_image_fid=198680]

Audrey arrives as <a href="https://www.apartments.com.au/developments/st-leonards-nsw-2065">St Leonards</a> continues its transformation into one of Sydney's most strategically located urban renewal areas. The precinct's proximity to Royal North Shore Hospital and the broader health, research, and commercial corridor has made it increasingly attractive to medical professionals, healthcare workers, and owner-occupiers seeking housing close to employment and transport infrastructure.

Residents are within walking distance of St Leonards Station and the Crows Nest Metro, while nearby retail includes Mall 88, Forum Plaza, Woolworths, and the recently opened Coles supermarket. Nearby green spaces including Newlands Park, Gore Hill Oval, and Naremburn Park further reinforce the area's lifestyle appeal.

As the first completed project within the precinct, Audrey demonstrates the direction of St Leonards South's evolution, combining higher-density living with generous amenity, strong transport connectivity, and access to green space.

A limited collection of premium residences remains available, including spacious three-bedroom apartments, a four-bedroom townhouse and a selection of penthouses.

[smartcode_project_cta:default project_id=110379]

Hyecorp completes Audrey, first project to welcome residents in St Leonards South Precinct

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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GUEST OBSERVATION 
It was no April fool’s joke when the <a href="https://www.rockefellerfoundation.org/" target="_blank">Rockefeller Foundation</a> announced it will phase out funding for the <a href="https://www.100resilientcities.org/" target="_blank">100 Resilient Cities</a> network. The foundation’s <a href="https://www.100resilientcities.org/update-from-100rc/" target="_blank">message</a> was a <a href="https://www.citylab.com/environment/2019/04/rockefeller-100-resilient-cities-climate-philanthropy-end/586522/" target="_blank">surprise for many participating cities</a>, including Melbourne and Sydney, and for its partnering non-governmental organisations, businesses and academics.
<a href="https://www.youtube.com/watch?v=fk6B8PJAB4M" target="_blank">100 Resilient Cities</a> is a global network designed to increase urban resilience, <a href="http://www.100resilientcities.org/resources/" target="_blank">defined</a> as: "the capacity of individuals, communities, institutions, businesses, and systems within a city to survive, adapt, and grow no matter what kinds of chronic stresses and acute shocks they experience."
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j.ballantyne1990-6AQqhLzZaK

What next after 100 Resilient Cities funding ends?

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EXPERT OBSERVER
Economies are constantly changing – just ask the Reserve Bank hierarchy. A year ago the Reserve Bank thought that the next move in interest rates would be up. But, encouraged by tame inflation, the Reserve Bank has just cut interest rates, concluding that the economy can grow faster and create more jobs.
Twenty-five years ago the situation was far different. The economy was accelerating, creating the risk of higher inflation. In August 1994, the Reserve Bank lifted the cash rate from 4.75% to 5.50%. By the end of the year the cash rate stood at 7.5%. Inflation hit 5.1% in the second half of 1995.
While economies will always fluctuate in the short term, the more important issue is whether the standard of living is enhanced over time. Certainly the standard of living is much a much broader concept than merely focusing on changes in economic variables. But it is still an important part of the equation.
Arguably those in their mid-40s and above – ‘Baby boomers’ and Generation X – have experienced a tremendous improvement in economic and financial circumstances over the past 25 years. Wages have soared in real terms, together with the value of assets like shares and homes. Inflation is low, unemployment is near decade lows and interest rates are the lowest since the mid-1960s. And the record economic expansion is in its 28th year.
The improvement in economic fortunes have occurred under Labor and Coalition governments, and despite a raft of global challenges like the Asian Financial Crisis, Technology boom and bust and the Global Financial Crisis.
<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/2019/6/11/CBA2.jpg" alt="">
Higher wealth has led to changes in spending
Arguably the extent of the improvement in economic circumstances has been almost unprecedented. Lack of consistent longer-term data prevents economists from declaring the improvement as the best ever.
But clearly the gains in real income and wealth have caused changes in how Aussies spend their money. Housing costs – paying the rent or the mortgage – now occupy a bigger share of household spending. Over time the relative cost (or affordability) of so-called essential items like food, clothing, cars and household goods has fallen, allowing Aussies to buy bigger and better homes.
And importantly the rising value of homes has added to household wealth and incomes and allowed ‘Baby boomers’ and GenX to embrace more discretionary goods and services over time.
<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/2019/6/11/CBA4.jpg" alt="">
Over the past 25 years, Aussies have increased their share of spending on housing, insurance, education, health, medicines and electricity/gas. But Aussie consumers have trimmed the share of spending devoted to food, clothing, furniture, household appliances and the purchase of cars and operation of cars.
Lower tariffs, globalisation and technology have served to reduce the relative cost of goods such as cars, fridges, furniture and floor coverings. With extra disposable income, Aussies have chosen to upgrade homes, the schools their children attend and their elected doctors, hospitals and specialists. Higher prices have lifted the share of spending going to utilities. The ageing of the population has also lifted relative spending on health and insurance.
Income &amp; wealth
Over the past 25 years wages have risen by 165%, well ahead of inflation, up just over 85%. Over the same period, household income per capita (per person) has lifted by 181%, ahead of per capita consumer spending, up 176%. And wealth per capita has lifted by 326%, not far from the greatest generational lift in wealth that occurred just over a year ago with a 370% per capita lift in wealth.
Over the past three years there has been a slowdown in income and wealth gains, arguably from an unsustainable pace. With globalisation serving to restrain inflation, wage growth has also eased. Consumers have drawn down on savings to adjust to the slower growth environment. On average household income grew at a 2.9% annual rate over the past three years, behind a 3.9% lift in spending.
<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/2019/6/11/CBA3.jpg" alt="">
Also making it difficult for Aussie consumers, taxation has risen at a 5.7% annual rate over the past three years. Tax now takes 14.7% of household income – a near 13-year high – reflecting ‘bracket creep’ and tougher enforcement by tax authorities.
What are the implications for investors?
Australia has one of the highest standard of living in the world. Income has outpaced inflation over time and wealth has soared. The lift in income and wealth have prompted many to upgrade their homes. People can afford more expensive and better quality homes because interest rates have fallen to record lows and a smaller proportion of household budgets now goes to ‘essentials’.
Advertisements from 1994 highlight some of the gains made in affordability over time. Beer and meat are more affordable now than 25 years ago and chicken is one item that can be purchased at a cheaper price now than in 1994.
The current generation of 20-30 year old Aussies are faced with more expensive homes but also enjoy the same smaller proportion of spending devoted to ‘essentials’ than in the past. But GenZ and Millennials also have different priorities, favouring travel, ‘experiences’ and smaller homes.
The question being asked by many across the globe is whether we have entered a new era of lower inflation, lower interest rates and lower growth of both income and wealth. The faster that people adjust to a lower growth environment, the lower the risk of economic shock.
Companies are having to adjust to the new realities of global competition and slower growth of sales and incomes. The risk is that some companies may over-react by cutting expenses too far (particularly wages and employment) rather than seeking to maintain or increase market share.
Investors may also need to adjust to the new realities of slower growth of share prices and dividends. Over the past three years dividends have increased at a 1.5% annual rate. From 2013-2016, annual growth of dividends averaged 3.7%.
Craig James is the chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec</a>. 
<ins id="aswift_0_expand" data-ad-slot="3195360564"></ins>
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jonathanchancellor-7SQnKwU6yx

How the Australian economy has changed over the past 25 years: CommSec's Craig James

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GUEST OBSERVATION
Loneliness is increasingly recognised worldwide as a critical social issue and one of the <a href="https://www.propertyobserver.com.au/https://www.ncbi.nlm.nih.gov/pubmed/25910392" target="_blank">major health hazards of our time</a>. Our <a href="https://www.publish.csiro.au/book/7269/" target="_blank">research</a> shows older private renters are at high risk of loneliness and anxiety. This is a growing concern as <a href="https://theconversation.com/why-secure-and-affordable-housing-is-an-increasing-worry-for-age-pensioners-69350" target="_blank">more Australians are renting housing later in life</a>. By contrast, only a small proportion of the <a href="https://housing.vic.gov.au/social-housing" target="_blank">social housing</a> tenants we interviewed said they were lonely.
The links between housing arrangements and loneliness could have profound <a href="https://www.psychology.org.au/for-members/publications/inpsych/2018/December-Issue-6/The-impact-of-loneliness-on-the-health-and-wellbei" target="_blank">implications for our health</a>. As former US surgeon general Vivek H. Murthy <a href="https://www.washingtonpost.com/news/on-leadership/wp/2017/10/04/this-former-surgeon-general-says-theres-a-loneliness-epidemic-and-work-is-partly-to-blame" target="_blank">said</a>:
"The reduction in life span [for people experiencing loneliness] is similar to that caused by smoking 15 cigarettes a day, and it’s greater than the impact on life span of obesity … Look even deeper, and you’ll find loneliness is associated with a greater risk of heart disease, depression, anxiety and dementia."
What causes loneliness?
The causes of loneliness are multifaceted and <a href="https://www.sciencedirect.com/science/article/abs/pii/S0167494305000361" target="_blank">complex</a>. The <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/2071.0%7E2016%7EMain%20Features%7ESnapshot%20of%20Australia,%202016%7E2" target="_blank">number of people living alone</a> in Australia is <a href="/news">clearly a factor</a>. In 2016, just under one in four households (24.4%) were single-person households. That’s up from one in five in 1991.
<a href="https://www.kff.org/other/report/loneliness-and-social-isolation-in-the-united-states-the-united-kingdom-and-japan-an-international-survey/" target="_blank">Research</a> suggests low-income individuals are more likely to experience loneliness. So, too, are people who have a serious mental or physical health condition or have had a serious disruptive event (financial or job loss, illness or injury, or relationship breakdown) in the last couple of years.
The <a href="/news">impact of housing tenure on loneliness</a> has received little attention. While recognising that there are no definite associations, we interviewed about 80 older (65-plus) private renters and social housing tenants who depended on the <a href="https://www.humanservices.gov.au/individuals/services/centrelink/age-pension" target="_blank">Age Pension</a> for their income. These in-depth interviews indicated that their housing tenure was a critical factor in their risk of experiencing loneliness.
Many older private renters are lonely
Many older private renters have little disposal <a href="https://www.publish.csiro.au/book/7269/" target="_blank">income</a>, because the cost of housing uses up much of their income. They also live with the constant possibility that they may be asked to vacate their <a href="https://www.propertyobserver.com.au/https://journals.sagepub.com/doi/10.1177/1440783317707833" target="_blank">accommodation</a>. Their limited budgets mean they often end up living in a poorly located property. These features, individually or in combination, create fertile ground for anxiety and loneliness.
Their dire financial situation was often an obstacle to social activities. One interviewee told of how she had to choose between food or breaking her isolation by using public transport.
"Well, you sort of think what you can do with $2.50. That’s a loaf of bread type of thing." – Beverley *
A 72-year-old woman living by herself said she could not afford the outings organised by her church.
"There’s quite an active social club at the church for over-55s but I can’t go to any of those … Sometimes I think it would be nice to go on something that appeals to me, yes. And they might have an afternoon at somebody’s home and you’re asked to bring a plate [of food]. You see, I couldn’t afford to do that."
Peter, 67 and divorced, had left the workforce prematurely due to ill-health.
"I’ve become very isolated. I used to, before I had the hip operation, I used to play tennis and I loved to play tennis … but I really can’t afford it. I’ve found a few clubs that I could go and play in. I’d like to get back to it, but they say, ‘Ah, the fees are this and you pay it annually,’ and I can’t come up with $150 or $200 or whatever."
Lack of money and insecure tenure were sources of enormous distress and anxiety, which further discouraged social contact. Brigette (67) was brutally honest:
"You do get depressed and I believe that’s why people suicide … And there have been times when I’ve thought, what is the point to life? I really have thought this can’t go on, you know … I feel sorry for people because it is hard, and once you stay in it’s like crawling out of a slime pit … I have to say, ‘Get up and go out, go up the shops … Pretend you need potatoes or something.’"
Not all of the private renters interviewed experienced loneliness. These interviewees usually had strong family ties or had managed to find affordable and secure accommodation.
Social housing tenants feel less isolated
In sharp contrast, only a small proportion of the social housing tenants interviewed said they were lonely. Almost all were adamant they did not experience loneliness and felt they had strong social ties. Their affordable rent, security of tenure, long-term residence and having neighbours in a similar position meant they could socialise and were not beset by anxiety.
An 85-year-old long-established social housing tenant’s response to the question about loneliness and isolation was typical:
"I do like it around here. I know where everything is and I know all the people, especially around these units you know. I know everyone and they know me. I like it around here. This is my home, you know. This is a community, I think. Like I know all the people and we’ve become really good friends. I couldn’t think of being anywhere else." – Kay
Pam, who had been a private renter before being allocated social housing, reflected on how her life had changed:
"Well, it is changed because I’m happier and I think I’m healthier and I have a lot of new friends. I also have a lot more people around me for support if anything does happen. If I get sick and if they don’t see me for a few days someone will come and say, ‘Pam, are you OK?’ In private housing there was nobody."
The <a href="https://www.propertyobserver.com.au/https://journals.sagepub.com/doi/abs/10.1177/1440783313500856?journalCode=josb" target="_blank">residualisation</a> of social housing meant some tenants were living in what they perceived to be unbearable conditions. However, they generally were able to deal with their situation. Patricia coped with her very challenging neighbours by going to the local community centre.
"No, I hate it [public housing]. I live here [at the community centre] every day. Yes, I’m on the committee here and I do things every day. This is my home, my family. Everybody is friendly with everybody. We have outings and things."
What the interviews indicate is that the housing tenure of age pensioners often plays a fundamental role in whether they are able to escape the experience of loneliness. Older private renters are far more likely to experience loneliness than their counterparts in social housing and that loneliness can be acute.
* All the names used are pseudonyms.
Alan Morris, Research Professor, University of Technology Sydney
Andrea Verdasco, Research Associate, University of Technology Sydney
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/i-really-have-thought-this-cant-go-on-loneliness-looms-for-rising-numbers-of-older-private-renters-118046" target="_blank">original article</a>.
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Loneliness looms for rising numbers of older private renters

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The future of Australia’s retail investment sector is positive, despite mounting noise suggesting otherwise, according to Savills.
Savills Australia’s Ben Parkinson and Rick Silberman have responded to the prevalent negative commentary, saying that the existing demand for retail-grade investment property was as strong as they had seen.
Silberman maintains a positive outlook, referring to various neighbourhood shopping centre transactions, including the recent sale of Coburg North Village on a yield of 4.74 per cent.
“Despite the consistent doom and gloom commentary regarding the retail landscape, much of the negative bias needs to be taken with a grain of salt,” he said.
“At the coalface, the demand for quality retail investment property is as strong as we can recall, as the fundamentals in most cases remain strong – land-rich assets and quality, reliable tenants with long, secure leases.”
Silberman went on to say that the “retail naysayers” failed to consider the full retail context. “Every retail asset needs to be assessed on a case by case basis,” he said.
“The retail investment market covers many subsects and is therefore much too broad to paint with the same brush.
“The demand for certain retail assets continues to be strong, which we do not see abating any time soon.
“We need to delve a little deeper to understand what works and what doesn’t – while some retail assets might be struggling due to overexposure to fashion and discount department stores, there are others that provide quality tenant mixes in ideal locations with non-discretionary offerings, and those that tick these boxes continue to be sought after and considered as secure retail investment opportunities.”
Ben Parkinson, Savills national head for retail investments, cited the recent RBA announcement, which cut interest rates to a record low of 1.25 per cent, and said this was likely to fuel more demand and activity.
“There is a significant amount of capital from privates and syndicates looking for a home,” he said.
“Their money isn’t doing much in the bank and retail investment provides sound returns for these investors.”
Parkinson said he and Silberman regularly spoke to buyers with a strong interest in securing neighbourhood shopping centres, standalone supermarkets and single-tenanted retail assets, which were widely considered to be the most tightly held assets across all commercial sectors.
“This area of retail remains a highly sought-after asset class that provides quality covenants and long leases,” he said.
“Quality retail investment assets offer a secure cash flow, high occupancy rates and, in most cases, are land-rich assets that are suitably zoned to offer future potential – three critical factors on most wish lists for commercial real estate investors.”
Silberman said that the investment fundamentals of well-located sites with strong underlying land values and underpinned by top-20 ASX-listed covenants on long leases could not be overlooked.
“Investors are seeing huge opportunities in the current retail market, given the yield spread compared to other asset classes, and the attractive income returns available for quality retail assets,” he said.
“The difference between prime commercial and industrial yields and quality retail yields is simply too great to ignore.”
For more information from Savills, <a href="https://www.savills.com.au/" target="_blank">click here</a>.
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jrobinson-rf4aSBido9

Australia’s retail landscape not all “doom and gloom”: Savills

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A rare freehold trophy asset in the Double Bay village has hit the market. It has long been the outlet of the owner occupiers Florida Drycleaners.
The low rise property on the busy Cross Street has a tenancy mix of boutique retailers, cafe and office space.
Colliers International agents Miron Solomons, Matt Pontey and Nick Lumley are marketing 10 Cross Street for July 11 auction on behalf of the Gordon family.
“This is a generational asset held by a private family linking the two main arteries of Double Bay; Knox and Cross Street,” said Solomons.
“We are expecting a great deal of demand for this asset, driven by the intrinsic value of freehold property in Sydney’s most prestigious waterside suburb as well as the property’s diverse income streams and future development potential.” 
Matt Pontey said Double Bay continues to drive demand for investors.
The five retail shops plus a first-floor commercial office have a net income of $162,829.50 per annum.
The flexible B2 Local Centre Zoning comes with a FSR of 2.5:1 and a height limit of 14.7 metres.
“Double Bay is buzzing with activity with the redevelopment of Double Bay and Cross Street carpark, as well as developments such as 1788 by SJD Property and The Hunter by Toga. 
"The area has seen substantial development activity over the last 12 months, with developers competing for luxury residential sites along Cross Street.”
“This is an opportunity to buy a freehold asset with part ownership of the pedestrian thoroughfare linking Double Bay’s two iconic retail streets, Cross &amp; Knox Street.”
Solomons and Pontey sold the neighbouring property 12 Cross Street, in 2018 to the Hong Kong media family, the Ma’s, achieving a record yield of 1.8% return. 
CoreLogic put the 10 Cross street site as 329 sqm.
 
 
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jchancellor-FAypfDUnLy

Cross Street, Double Bay drycleaner retail premises hits the market

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EXPERT OBSERVER
Half a million Australians aged 50 and over lost their homes in the first decade of this century.<a href="https://theconversation.com/profiles/rachel-ong-viforj-113482"> </a>
The number of mature age Australians carrying mortgage debt into retirement is soaring.
And on average each mature age Australian with a mortgage debt owes much more relative to their income than 25 years ago.
Microdata from the Bureau of Statistics <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6541.0.30.001Main+Features12013-14" target="_blank">survey of income and housing</a> shows an increase in the proportion of homeowners owing money on mortgages across every home-owning age group between 1990 and 2015. The sharpest increase is among homeowners approaching retirement.
<h2>More mortgaged for longer</h2>
For home owners aged 55 to 64 years, the proportion owing money on mortgages has tripled from 14% to 47%.
Among home owners aged 45 to 54 years, it has doubled.
<hr>
<a href="https://images.theconversation.com/files/278480/original/file-20190607-52741-1gvtikf.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/278480/original/file-20190607-52741-1gvtikf.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> <a class="source" href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6503.0Main+Features12015-16">Source: Authors’ own calculations from the Surveys of Income and Housing</a>
<hr>
Meanwhile, the average mortgage debt-to-income ratio among those with mortgages has pretty much doubled across every home-owning age group.
In the 45-54 age group the mortgage debt-to-income ratio has blown out from 82% to 169%.
For those aged 55-64 it has blown out from 72% to 132%.
<hr>
<a href="https://images.theconversation.com/files/278619/original/file-20190610-52758-wdha1w.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/278619/original/file-20190610-52758-wdha1w.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Among mortgage holders. Source: Authors’ own calculations from the Surveys of Income and Housing
<hr>
<h2>Three reasons why</h2>
The soaring rates of mortgage indebtedness among older Australians have been driven by three distinct factors.
First, property prices have surged ahead of incomes.
Since 1970 the national dwelling price to income ratio <a href="https://www.ceda.com.au/CEDA/media/General/Publication/PDFs/HousingAustraliaFinal_Flipsnack.pdf" target="_blank">has doubled</a>.
<hr>
<a href="https://images.theconversation.com/files/278624/original/file-20190610-52780-1hzmy9f.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/278624/original/file-20190610-52780-1hzmy9f.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Prices and wages in 1970 are assigned an index of 100. <a class="source" href="https://www.ceda.com.au/CEDA/media/General/Publication/PDFs/HousingAustraliaFinal_Flipsnack.pdf" target="_blank">Sources: Treasury, ABS, Committee for Economic Development of Australia</a>
<hr>
Despite weaker property prices, the ratio remains historically high. This means households have to borrow more to buy a home. It also delays the transition into home ownership, <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/4130.0%7E2015-16%7EMain%20Features%7EAcross%20the%20Generations:%20Twenty%20years%20of%20housing%7E10003" target="_blank">potentially shortening</a> the the remaining working life available to repay the loan.
Second, today’s home owners frequently use flexible mortgage products to draw down on their housing equity as needed for other purposes. During the first decade of this century, one in five home owners aged 45-64 years increased their mortgage debt <a href="/news">even though they did not move house</a>.
Third, older home owners appear to be taking on bigger mortgages or delaying paying them off in the knowledge that they can work longer than their parents did, or draw down their superannuation account balances.
<h2>Super could be changing our behaviour</h2>
For mortgage holders aged 55-64 years, there is evidence to suggest that larger debts <a href="/news">prolong working lives</a>.
In 2017 around <a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6238.0" target="_blank">29% </a> of lump sum superannuation withdrawals were used to pay down mortgages or purchase new homes or pay for home improvements, up from <a href="https://www.pc.gov.au/research/completed/superannuation-post-retirement/super-post-retirement-volume1.pdf" target="_blank">25%</a> four years earlier.
In the Netherlands, where a mandatory occupational pension scheme along the lines of Australia’s super scheme has been in place for much longer, <a href="https://opendata.cbs.nl/statline/#/CBS/nl/dataset/81702NED/table?ts=1539244705047" target="_blank">over one-half</a> of home owners aged 65 and over are still paying off mortgages.
<hr>
<a href="https://images.theconversation.com/files/278784/original/file-20190611-52780-kg72kd.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/278784/original/file-20190611-52780-kg72kd.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> The base is the total number of uses of lump sums rather than the number of people taking lump sums. <a class="source" href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6238.0" target="_blank">ABS 6238.0 Retirement and Retirement Intentions</a>
<hr>
<h2>The implications are huge</h2>
Internationally, studies have found that indebtedness <a href="https://www.sciencedirect.com/science/article/abs/pii/S0277953615001203?via%3Dihub" target="_blank">adds to psychological distress</a>. The impacts on wellbeing are more profound for older debtors, without the ability to recover from financial shocks.
Debt-free home ownership in old age used to be known as the <a href="https://www.ceda.com.au/CEDA/media/ResearchCatalogueDocuments/PDFs/27922-CEDATheSuperChallengeofRetirementIncomePolicySept2015FINAL.pdf" target="_blank">fourth pillar of the retirement incomes system</a> because of its role in <a href="https://link.springer.com/article/10.1007/s10901-010-9187-4" target="_blank">reducing poverty in old age</a>. It allowed the Australian government to set the <a href="https://melbourneinstitute.unimelb.edu.au/assets/documents/hilda-bibliography/conference-papers-lectures/2013/Haffner-Ong-Wood-ENHR2013-Paper.pdf" target="_blank">age pension at relatively low levels</a>.
Growing indebtedness will increase after-housing-cost poverty among older Australians and create pressure to <a href="/news">boost the age pension</a>.
Mortgage debt burdens late in working life will also expose home owners to unwelcome risks, as health or employment shocks can ruin plans to pay off their mortgages.
During the first decade of this century, around <a href="/news">half a million</a> Australians aged 50 years and over lost their homes.
<h2>Taxpayers will be under pressure to help</h2>
Those losing home ownership are often forced to rely <a href="https://www.propertyobserver.com.au/https://journals.sagepub.com/doi/abs/10.1177/0042098014550955" target="_blank">on rental housing assistance</a>. Moreover, as older tenants they are <a href="https://www.propertyobserver.com.au/https://journals.sagepub.com/doi/abs/10.1177/0042098014550955" target="_blank">unlikely to ever leave housing assistance</a>. This will put pressure on the government to boost spending on housing assistance, which is likely to further boost <a href="https://theconversation.com/when-falling-home-ownership-and-ageing-baby-boomers-collide-102846" target="_blank">demand for housing assistance</a>.
Super and government housing assistance could become the safety nets that allow retirees to escape their mortgages.
It wasn’t the intended purpose of superannuation, and wasn’t the intended purpose of housing assistance. It is a development that ought to be front and centre of the <a href="https://www.afr.com/news/policy/tax/retirement-incomes-face-review-20190524-p51qsi" target="_blank">inquiry into the retirement incomes system</a> announced by Treasurer Josh Frydenberg.
It is a change we’ll have to come to grips with.
<a href="https://theconversation.com/profiles/rachel-ong-viforj-113482" target="_blank">Rachel Ong ViforJ</a>, Professor of Economics, School of Economics, Finance and Property, <a href="http://theconversation.com/institutions/curtin-university-873" target="_blank">Curtin University</a> and <a href="https://theconversation.com/profiles/gavin-wood-113723" target="_blank">Gavin Wood</a>, Emeritus Professor of Housing and Housing Studies, <a href="http://theconversation.com/institutions/rmit-university-1063" target="_blank">RMIT University</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/more-people-are-retiring-with-high-mortgage-debts-the-implications-are-huge-115134" target="_blank">original article</a>.
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More people are retiring with high mortgage debts. The implications are huge

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GUEST OBSERVATION
Housing in Australia is broken. Across the country, <a href="https://anglicare-ras.com/" target="_blank">only 2% of private rentals are affordable for a person on the minimum wage</a>. Less than 1% are affordable for a single person on the pension. There are 650,000 households who can’t afford housing at market rates in Australia right now and this figure is projected to reach <a href="https://cityfutures.be.unsw.edu.au/documents/522/Modelling_costs_of_housing_provision_FINAL.pdf" target="_blank">over a million by 2036</a>.
The abject failure to meet the housing needs of lower-income households is partially due to <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861" target="_blank">decades of underfunded social housing</a> by government. Since the 1960s, the proportion of public housing in Australia has almost <a href="https://www.propertyobserver.com.au/https://www.tandfonline.com/doi/abs/10.1080/08111149608551610" target="_blank">halved from 8% </a><a href="https://www.aihw.gov.au/reports/housing-assistance/housing-assistance-in-australia-2018/contents/social-housing-dwellings">to 4.6%</a> of total housing stock.
Scott Morrison’s newly re-elected government made no election statements relevant to social housing. That suggests this situation is unlikely to change soon.
Leaving it to the private sector
As governments have stepped away from directly delivering affordable housing, more emphasis has been placed on the private sector and market forces to deliver this social good. Internationally, policies like <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/Understanding-inclusionary-zoning" target="_blank">inclusionary zoning</a> require developers to provide a portion of affordable housing in return for planning permission.
For example, in San Francisco inclusionary zoning has been in place since 1992. This policy has <a href="http://default.sfplanning.org/legislative_changes/inclusionary_affordable_requirements/Section_415_amendments_Case_Repost_adoption-042717_FINAL.pdf" target="_blank">generated 4,600 permanently affordable units since 2002</a>. Developers received no incentives in return for being required to deliver this housing.
<a href="https://www.churchilltrust.com.au/media/fellows/Hodyl_L_2014_Social_outcomes_in_hyper-dense_high-rise_residential_environments_1.pdf" target="_blank">In Vancouver</a>, developers wishing to build above a 3:1 plot ratio (for example, three storeys on 100% of the site, or six storeys on 50% of the site) in the CBD must provide social housing or other community amenities.
In contrast, the state of Victoria has very few regulations that encourage or enforce affordable housing or other community benefits in return for development permissions. The rezoning of Fisherman’s Bend for development is <a href="https://www.theage.com.au/national/victoria/lowend-buyers-shut-out-of-fishermans-bend-20141101-11fh5p" target="_blank">one particularly egregious example</a> in Melbourne.
Victoria’s plan for negotiations
In 2018, the Victorian government took some initial steps towards involving private developers in providing affordable housing. It <a href="https://www.planning.vic.gov.au/policy-and-strategy/affordable-housing" target="_blank">changed the Planning and Environment Act 1987</a> to designate affordable housing as a valid planning objective and created a mechanism for negotiated affordable housing agreements.
Local councils can now ask for affordable housing as part of planning approval processes. While these negotiations will inevitably generate a wide range of outcomes through a variety of arrangements, one likely permutation is shown below.
The local council and developer will enter into a negotiation and decide on a “reasonable” affordable housing contribution. In this instance, the developer will sell, “gift” or lease a number of units to a not-for-profit housing provider, which will manage the units and ensure eligible, low-income households occupy the home.
<a href="https://images.theconversation.com/files/274240/original/file-20190514-60560-1xpbo4n.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/274240/original/file-20190514-60560-1xpbo4n.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
A negotiated path to delivering affordable housing. Author provided
The difference between many international examples and Victoria is that these negotiations are voluntary. The argument is that voluntary negotiations avoid a one-size-fits-all solution and allows for flexibility and creativity in negotiations.
On the other hand, <a href="https://rsa.tandfonline.com/doi/abs/10.1080/02697459.2015.1008793#.XOd5qogzaUk" target="_blank">international research</a> suggests voluntary programs often generate uncertainty and inequitable outcomes. They tend to generate less affordable housing than mandated systems. And they do so in <a href="https://www.lincolninst.edu/sites/default/files/pubfiles/thaden_wp17et1_0.pdf" target="_blank">more opaque ways</a>.
Think about it: why would a developer voluntarily give up potential profit by selling or renting a property at a below-market rate? Such contributions would need to be enforced and/or incentivised.
What can negotiation theory tell us?
<a href="https://journals.sagepub.com/doi/abs/10.1177/0739456X07311074" target="_blank">Negotiation research</a> can help us to understand the likely outcomes of these arrangements. It offers insights into stakeholder interests, the potential for mutual gains, and access to knowledge.
Stakeholder interests
Interests are the underlying values and priorities that motivate stakeholders’ demands or positions in negotiations. Interests in this context relate to the degree to which state government, local councils, or developers feel it is their responsibility to provide affordable housing. It relates to views on “valid” profit margins for developers and concerns about reputation.
It also relates to the priorities and strategies of the community housing providers, who are most likely to own and manage the housing delivered through these negotiations.
We know most developers don’t feel it is their responsibility to deliver affordable housing. Similarly, while some councils have <a href="http://www.portphillip.vic.gov.au/councils-role-affordable-housing.htm" target="_blank">explicit statements on affordability</a>, this is not the case across Victoria.
Mutual gains
In places like San Francisco where affordable housing is required in all developments over a certain size, these requirements are built into feasibility calculations from the outset. Therefore, no incentives are included.
This also creates an even playing field for all developers in the consideration of land and development. As there is no negotiation or incentive that could shift the profit margin, the required approach places everyone on the same starting line. Further, the cost considerations are the same for all, when considering the purchase of a site and undertaking an analysis of the feasibility of a proposed project.
Voluntary negotiations only work when the parties at the negotiating table are interdependent – they must have something to gain and something to contribute in the negotiation or they wouldn’t be there. In places where negotiations are voluntary, incentives are often “bundled together” as sweeteners to offer to developers in the negotiation process. Possible incentives include car park waivers, increases in permissible developable area (i.e height or density bonuses) and fee reductions or waivers.
In Victoria, key incentives like allowing an increase in the floor area of a development – so-called <a href="/news">floor area uplift</a> – are difficult to implement in most local government areas. And expedited planning approvals are politically contentious and have limited impact on developers.
Inconsistency between councils may also allow developers to “shop around”. They are likely to avoid local government areas with a reputation for pursuing contributions.
As negotiations take place across Victoria the capacity for mutual gains for local communities and developers will be a key component in deciding how much affordable housing is provided and at what cost.
Access to knowledge
In negotiations, money and knowledge is power. Stakeholders are likely to hide or manipulate information in negotiations to support their own arguments and interests. This is particularly likely when there is little established trust between parties. Not only does this lead to undemocratic decisions made in a “black box”, it also creates opportunity for exploitation.
Negotiations will centre on trade-offs to achieve economically feasible developments that also include affordable housing. To engage in such discussions, a high degree of knowledge about development economics is required to allow for informed debate. While this is the bread and butter for developers, local councils are often far less resourced to engage in these discussions. There is work to be done in building the capacity of local councils in this area.
Acknowledging this, the authors of this article have <a href="https://msd.unimelb.edu.au/research/projects/current/transforming-housing/affordable-housing-tools/affordable-housing-calculator" target="_blank">built a calculator </a> to help communicate many of the basic premises behind development economics and affordable housing trade-offs.
Have your say on affordable housing
We don’t know yet enough about interests, mutual gains or access to knowledge to fully understand the landscape of this change to Victorian housing policy. And that is why we are surveying the affordable housing industry to gather this feedback.
If you are a private developer, local or state government representative with involvement in residential development or affordable housing policy, a not-for-profit housing provider, or consultant to the housing industry, then we want to hear from you.
Please <a href="https://melbourneuni.au1.qualtrics.com/jfe/form/SV_br4iiTkcQ0CYCnr" target="_blank">click here</a> to take the survey.<img src="https://counter.theconversation.com/content/116829/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
Katrina Raynor, Postdoctoral Research Fellow, Transforming Housing Project, University of Melbourne
Georgia Warren-Myers, Senior Lecturer in Property
Matthew Palm, Postdoctoral Research Fellow, University of Toronto
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/if-its-voluntary-for-developers-to-make-affordable-housing-deals-with-councils-what-can-you-expect-116829" target="_blank">original article</a>.
Main photo: The City of Port Phillip is unusual in having an explicit position on the council’s role in providing affordable housing. City of Port Phillip
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If it’s voluntary for developers to make affordable housing deals with councils, what can you expect?

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Sydney’s latest five-year housing supply forecast, written by the NSW Department of Planning and Environment, anticipates a solid pipeline of construction.
NSW Department of Planning and Environment Executive Director, Justin Douglas, said the new forecast shows almost 192,000 new dwellings will be built across the city during 2018/19 to 2022/23.
Douglas said Sydney needs to build 725,000 new homes in the next 20 years, or around 36,000 per annum, to accommodate a growing population.
"We’re forecasting to meet that demand over the next five years, with just over 38,000 homes per year on average planned for the city," he said. 
He believes it's good news for first home buyers as supply levels are strong and there are more purchasing options.
The forecast shows the top five local government areas where additional new homes will be built over the next five years are Parramatta (22,100), Blacktown (18,300), Sydney (14,850), Liverpool (11,950) and The Hills (11,700).
<img src="https://www.urban.com.au/images/2019/6/7/Supply%20hotspot.JPG" alt="">
"The forecast helps to inform decisions on future land use zoning to ensure there’s a solid pipeline of new housing supply," Douglas said. 
"It takes account of current residential developments under assessment, approved but not commenced construction, and those under construction, as well as analysis of likely future development under current zoning and planning controls.
"The preparation of the forecast has involved significant input from local government, the development industry, service providers, and state agencies."
Click <a href="https://www.propertyobserver.com.au/images/2019/6/7/local-government-area-forecast-map-2400x1698.jpg" target="_blank">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/2019/6/7/local-government-area-forecast-map-2400x1698.jpg" alt="">
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Parramatta and Blacktown top Sydney’s official housing supply pipeline forecast 

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EXPERT OBSERVER
<div id="post-body-8300417078442297736" class="post-body entry-content">
<div>One of the most important releases of the global calendar, the US nonfarm payrolls, confirmed things are turning back down in the face of slower growth and trade war concerns. </div>
<div> </div>
<div>Earlier in the week there had been a similarly weak indicator from a private payrolls report.</div>
<div> </div>
<div>Nonfarm payroll employment increased by just +75,000 in May 2019 according to the Bureau of Labor Statistics, and critically there were also substantial downwards revisions to March (-36,000) and April (-39,000). </div>
<div> </div>
<div>Combine a weak monthly gain of +75,000 with a combined revision of -75,000 and you get...not very much, although at least this did mark a record 104 consecutive months of gains. </div>
<div> </div>
<div>The 3-month average gain is now just above +150,000, having been above +200,000 for much of 2018 and 2019. </div>
<div> </div>
<div class="separator"><img src="https://1.bp.blogspot.com/-oCxVjG5jgE4/XPrPZcmCKyI/AAAAAAAAwZo/XIaPMHwveNQBQXCQcFF_y92gxVmx3g-7QCLcBGAs/s640/NFP1.jpg" width="640" height="368" data-original-height="800" data-original-width="1389"></div>
 The unemployment rate held steady at 3.6 per cent. <div class="separator"><img src="https://1.bp.blogspot.com/-VV6mk5t6S2Q/XPrPZQdLQBI/AAAAAAAAwZs/3T9WL5W_p5MDtBBnLiuydEN132e6RBW4QCLcBGAs/s640/NFP2.jpg" width="640" height="382" data-original-height="833" data-original-width="1390"></div>
 But annual average hourly earnings growth slowed to +3.1 per cent. <div class="separator"><img src="https://1.bp.blogspot.com/-6K-7SN1xz_A/XPrPZfVYmjI/AAAAAAAAwZw/6CDgCikRDroi5irW2jUAMrfmfWIjNo5_ACLcBGAs/s640/NFP3.jpg" width="640" height="364" data-original-height="790" data-original-width="1385"></div>
<div> </div>
<div> </div>
<div>A couple of Antipodean observations.</div>
<div>
 Firstly, hard though it is to imagine, markets are pricing a 4 in 5 chance of the Fed cutting interest rates as soon as July(!). </div>
<div> </div>
<div>And secondly, looking at unemployment rates from Japan to Germany, Netherlands, the US, UK, Taiwan, and South Korea - all 4 per cent or considerably lower in many cases - it's not hard to imagine that Australia's NAIRU could be much lower than previously assumed. </div>
<div> </div>
<div>For that reason and others, markets are now pricing in two further rate cuts in Australia over the next 12 months.</div>
<div> </div>
<div>I was travelling yesterday and didn't get around to posting the pre-election housing finance figures, which showed a small uptick for homebuyers and a decline for investors.</div>
<div> </div>
<div>Speaking with a few mortgage brokers yesterday, there has been a surge of enquiries since the election, and especially now interest rate cuts are being passed on.</div>
<div> </div>
<div>Importantly, while banks were previously taking up to a couple of months to return documentation, not the figure is back down to about a week, so things are 'back to normal' in that regard. </div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>. </div>
</div>
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pwargent-M4siyDbqQY

Rate hiking cycle crashes and burns: Pete Wargent

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Off-shore investors are making a lot of investments across Melbourne’s eastern corridor property market, with more than $1 billion in acquisitions over the last five years, according to CBRE.
Director Investments, Mark Wizel, said the off-shore buyers accounted for marginally under 50 per cent of buyers (116) of the 234 properties, which sold through CBRE alone, for a total of $2.43 billion over five years from 2014.
Mr Wizel said the bulk of the acquisitions had been sub $30 million however the list included two major acquisitions - the Burwood One Shopping Centre ($181.5m) (pictured in title) which sold to a Hong Kong investor, and 353-383 Burwood Hwy, Forest Hill which was purchased at an undisclosed price by a Chinese buyer.
According to a Fairfax media study from August 2017 based on data from the 2016 Census, the eastern suburbs, and particularly Glen Waverley and Box Hill, are dominated by Chinese migrants as the second most populous group after Australian born residents. In Box Hill, near the centre of the eastern corridor, almost 30 per cent of the population was born in China.
Some of the most recent sales to off-shore investors include:
<ul>
<li>12 Lakeside Drive, Burwood East - $25.5m;</li>
<li>Maroondah Shopping Centre - $18.8m;</li>
<li>941-947 Whitehorse Rd, Box Hill - $13.3 million;</li>
<li>60-62 Maroondah Hwy, Ringwood - $28.3m; and,</li>
<li>42-50 Burwood Hwy, Burwood East - $18.17m.</li>
</ul>
Mr Wizel said, "I expect an equally strong response from the international investment community to several investment opportunities currently on the market including iProsperity Group’s Century City Walk Shopping Centre and the adjoining 200-room Novotel Melbourne hotel on Springvale Road, Glen Waverley."
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