<a href="https://www.apartments.com.au/developers/abadeen">Abadeen</a> and <a href="https://www.apartments.com.au/developers/perifa">PERIFA</a> have celebrated the topping out of <a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf,</a> marking a significant milestone in the delivery of one of Syd​ney's most anticipated waterfront communities.

Located on Sydney's harbourfront at <a href="https://www.apartments.com.au/developments/putney-nsw-2112">Putney</a>, the project has now reached its highest structural point, with construction progressing strongly towards completion in 2027. 
&nbsp; 
The milestone was celebrated on-site with project partners Phoenix Property Investors, Mitsubishi Estate Asia, Versatile Construction, <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, consultants and stakeholders, to recognise the collective effort behind the transformation of the historic waterfront site into a vibrant new residential, marina and lifestyle destination.

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&nbsp; 
<a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> will deliver a mix of waterfront residences and terraces, complemented by a private 36-berth marina, waterfront dining opportunities and a revitalised foreshore designed to reconnect the community with the river's edge. 
&nbsp; 
Abadeen Executive Chairman and Founder Justin Brown said the project represented a rare opportunity to create the next chapter in Sydn​ey's long history of successful waterfront precincts. 
&nbsp; 
"Throughout Sydney, some of the city's most sought-after addresses have emerged from carefully considered waterfront precincts such as Woolloom​ooloo Wharf, Walsh Bay and Breakfast Point," Brown said.

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&nbsp; 
"What makes these places so successful is that they become much more than residential developments," Brown said.

"They bring together homes, hospitality, marina facilities, public spaces and a strong sense of community in locations where future supply is incredibly limited."

Brown has long described absolute waterfront land in Sy​dney as "finite."

"Once these opportunities are developed, they are rarely replicated. That's why Syd​ney's waterfront precincts have consistently demonstrated strong demand and long-term value growth over many decades. 
&nbsp; 
"<a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> is one of the few remaining opportunities to secure a residence within a masterplanned waterfront community that combines direct water access, marina ownership opportunities and a genuine village lifestyle just moments from the Sy​dney CBD."

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&nbsp; 
PERIFA Founder and Managing Director Fabrizio Perilli said the project reflected a shared commitment to delivering exceptional places that create long-term value for residents and the broader community. 
&nbsp; 
"The topping out milestone is a significant achievement for the Versatile Group and a testament to the collaboration between all project partners, consultants and contractors involved," Perilli said. 
&nbsp; 
"Beyond the residences themselves, <a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> will establish a new waterfront destination that celebrates the history, character and lifestyle of this unique location while creating a lasting legacy for future generations."

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&nbsp; 
Construction is being delivered by <a href="https://www.apartments.com.au/builders/versatile">Versatile Construction</a>, with structural works now substantially complete across the precinct. Attention will progressively shift to the construction of the waterview terraces, apartment façades, services and interior fit-out works over the coming months. 
&nbsp; 
With limited residences and marina berths remaining, <a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> continues to attract strong interest from owner occupiers and downsizers seeking a premium waterfront lifestyle within close proximity to Putne​y Village, Rh​odes, Top Ry​de and the Syd​ney CBD. 
&nbsp; 
As one of the last opportunities to secure a residence within a new masterplanned waterfront community on Sy​dney Harbour, <a href="https://www.apartments.com.au/new-apartments/putney-wharf-harbourfront-precinct-20-waterview-street-putney-nsw-2112">Putney Wharf</a> is expected to remain a highly sought-after address for years to come.

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Joel Robinson

Abadeen, PERIFA, top out Putney Wharf harbourfront precinct

Kew has long been regarded as one of Melbourne's premier residential suburbs. It's a location defined by its grand period homes, leafy streets and some of the city's most prestigious schools, yet it has often sat just outside the spotlight cast on neighbouring Hawthorn and Camberwell.

Increasingly, however, buyers are recognising that Kew offers much of what draws people to those suburbs, with a quieter residential setting, exceptional amenity and long-term owner-occupier appeal.

Within a few minutes' walk, residents can access Kew Junction, one of Melbourne's most established village centres. Cafés, bakeries, restaurants, supermarkets, boutique retailers and everyday services are all on the doorstep, with local favourites including Centonove, Adeney Milk Bar Cafe, and Frank &amp; Harri creating the type of walkable lifestyle that has become increasingly difficult to find in Melbourne's inner east. Beyond the immediate neighbourhood, Glenferrie Road's renowned shopping and dining precinct in Hawthorn and the retail, dining and entertainment offerings of Camberwell Junction are both just a short drive or tram ride away.

The suburb is equally well connected. Tram routes 48 and 109 provide direct access to the CBD, while High Street and Cotham Road connect residents to the wider inner east.&nbsp;Nearby access to the Eastern Freeway also places the Yarra Valley, Mornington Peninsula and Melbourne Airport within easy reach, adding another layer of convenience for weekend travel.&nbsp;It's a rare combination of connectivity and tranquillity, where quiet residential streets sit just moments from some of Melbourne's most established shopping and lifestyle precincts.

For families, Kew remains one of Melbourne's most tightly held addresses. Carey Baptist Grammar School, Xavier College, Methodist Ladies' College, Trinity Grammar, Ruyton Girls' School and Genazzano FCJ College are all nearby, while the Yarra River parklands, walking trails and sporting clubs provide another layer of lifestyle appeal.

It's within this established pocket that developer Ricdanic is delivering <a href="https://www.apartments.com.au/new-apartments/wimba-ave-kew-9-11-wimba-avenue-kew-vic-3101">Wimba Ave</a>, a boutique collection of just 13 residences across two buildings named after its location on the tree-lined Wimba Avenue,&nbsp;within one of Kew's most prestigious pockets where homes have been known to sell up to and above $8 million.

[smartcode_project:default project_id=140755 project_image_fid=354809]

The residences prioritise the space that buyers are increasingly searching for but struggling to find in established suburbs. Living areas extend beyond five metres in width, ceiling heights range from three to five metres, and apartments open onto private gardens averaging around 125 sqm. Selected residences also feature balconies of approximately 60 sqm, while premium inclusions include Miele appliances, double-glazed windows, EV readiness, fully electric systems and a 7.2 NatHERS energy rating.

Architect Chris Idle says opportunities to deliver homes of this scale within established suburbs have become increasingly uncommon.

"There are very few opportunities to do these kinds of developments in leafy, established suburbs," he says. "To get this level of amenity, natural light, and architectural freedom in such a setting is extremely rare."

[smartcode_project:default project_id=140755 project_image_fid=366267]

The architecture draws on Kew's established character through the use of handmade Krause bricks, while landscaping by John Patrick introduces 23 plant species, including nine native varieties, creating an environment which focuses just as much on nature as it does the building.

Construction on Wimba Ave is well underway by renowned high-end builder Sinjen, with completion expected in late 2027. Prices start from $2.22 million.

[smartcode_project_cta:default project_id=140755]

The enduring appeal of Kew's tree-lined streets and village lifestyle

"For me, it's the location." That was the first thing Chris pointed to when reflecting on why he and his wife Marita decided to purchase at Candela Ivanhoe, the under-construction new apartment development by Salter Brothers in the heart of the north-eastern M​elb​ourne​ suburb. ​

"We've lived here before… everything is here," Chris said.

"Our doctor is around the corner, there's dentists, pilates, everything we need, restaurants, fast food places, two train stations, Ivanhoe and Darebin, both in walking distance. You don't need anything else."

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Just 10 kilometres from Melbo​urn​e's CBD, Ivanhoe combines direct city connectivity with the amenity of an established village community. Residents have access to highly regarded schools, expansive parklands, public transport, and a thriving retail and hospitality precinct centred around Upper Heidelberg Road, all within a neighbourhood that has retained its leafy character despite its proximity to the city.

<a href="https://www.apartments.com.au/new-apartments/candela-ivanhoe-40-upper-heidelberg-road-ivanhoe-vic-3079">Candela Ivanhoe</a> sits within the heart of this established landscape, positioned just moments from Ivanhoe Village and within walking distance of many of the suburb's most sought-after amenities.

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From Candela, residents can access cafés, grocers, wine bars, restaurants and essential services on foot, while Ivanhoe Station and Darebin Station provide direct connectivity across Mel​bour​ne. The development is also surrounded by some of the suburb's best-known lifestyle destinations, including Pinkie, Laurent, Enni, Docasa and Woodfire Pizza e Cucina, alongside Ivanhoe Plaza, Woolworths, pharmacies and specialty retailers.

Green space is another defining feature of the suburb. Darebin Parklands, Ivanhoe Park, Nellie Ibbot Park and the Yarra River trail network provide extensive opportunities for recreation, while Ivanhoe Golf Course and Ivanhoe Tennis Club continue to underpin the area's long-established lifestyle appeal.

The suburb's education offering further strengthens demand. Ivanhoe Grammar School, Ivanhoe Girls' Grammar School, Mary Immaculate Primary School and Ivanhoe Primary School have helped establish the area as one of Melbou​​rne's most sought-after schooling precincts, attracting families and downsizers alike who want to remain connected to the area.

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While location was the priority for Marita and Chris, the project itself also needed to meet their expectations.

"Whilst location was paramount, I was also looking at design of the environment and Candela ticked every box," Marita said.

"We're just thrilled with our choice."

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Developed by <a href="https://www.apartments.com.au/developers/salter-brothers">Salter Brothers</a>, Candela Ivanhoe has been designed to complement its village setting, with an emphasis on generous floorplans, natural light and practical everyday living.

Residents will have access to a range of shared amenities, including a communal rooftop garden and dedicated residential lounge, complemented by a ground-floor café and lifestyle wellbeing centre, helping foster the sense of community already emerging among future owners.

That approach has resonated strongly with the market. More than 90 per cent of purchasers at Candela Ivanhoe are owner-occupiers, with buyers ranging from downsizers and second-home buyers to young families and first home buyers, creating a genuinely multi-generational community of grandparents, parents and children. It reflects a broader shift across Melbo​​urne's apartment market, where buyers are increasingly prioritising neighbourhood quality, lifestyle amenity and long-term liveability.

Currently under construction by Ironside, Candela Ivanhoe comprises 58 apartments. Candela Ivanhoe is scheduled for completion in the coming months, and residents can move in from September. One to four bedroom residences, prices from $649,000 and limited opportunities remaining.

[smartcode_project_cta:default project_id=342]

Location and lifestyle drive demand at Candela Ivanhoe

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]

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

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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EXPERT OBSERVATION
Retail sales rose 0.1% in January, a disappointing result compared to consensus expectations of a 0.3% gain. Retail was coming off a 0.4% fall in the final month of 2018, so the muted January rise speaks to continued weakness carrying into early 2019.
Annual sales growth has slowed to 2.7%yr with the trend pace over the last six months closer to 2%yr.
The detail showed gains were confined to food sub-categories – both basic food and cafes &amp; restaurants up 0.3%mth – with non food categories down 0.1%mth on a combined basis. Within the latter: department stores booked another sizeable decline (–2.1%mth following –1.3% in Dec and a muted 0.4% gain in Nov); clothing was down 0.3% coming off a 3% fall in Dec but a strong 4.4% gain over Oct-Nov; and household goods retail was flat, coming off 0.8% gains in Nov and Dec. The 'other retail' category - mainly 'small ticket' discretionary items – posted a 0.7% gain.
The picture by state did have one slight positive with a solid 0.7% rise in NSW. The state had shown a much weaker finish to 2018, raising concerns that wealth effect drags were starting to bite harder. The Jan gain pares that weakness back a bit although trend sales are still weaker, flat lining vs slight 0.2% a month gains in most other states.
Looking by channel, online sales look to have posted a 2-3% gain for the month, with retail ex online down slightly (–0.1%mth).
By retailer size, small retailers reported a 0.6% fall with non food retailers driving the monthly gain amongst larger retailers. Despite this, large food retailers have still seen the best growth over the last year, sales up 4.9%yr on a combined basis, some of which relates to firmer pricing.
Separate data on vehicle sales have been mixed in early 2019. Our estimates suggest monthly seasonally adjusted sales rose in Jan but slipped back a touch in Feb. Seasonal adjustment is more problematic around this time of year so these moves should be treated with caution. Sales are still down about 10%yr. The Q4 national accounts detail showed a 1.5%qtr decline in consumer vehicle purchases, tracking a 6% annual pace of declines over the last three quarters of 2018.
Overall the slight gain in January retail sales indicates that the soft spending conditions over the second half of 2018 have extended into 2019. While sales may not be contracting in nominal terms they are likely to be down in volume terms once price changes are excluded.
MATTHEW HASSAN is a Senior Economist for Westpac
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Australian retail sales tick up, just: Westpac's Matthew Hassan

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What have we learnt since the financial crisis? RBA's John Simon

The housing market and the economy: RBA Governor Philip Lowe

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EXPERT OBSERVATION 
In the lead up to the NSW election the calls by politicians to stop funding Registered Training Organisations (RTO’s) are not only wrong, but will substantially harm the residential building industry in NSW substantially.
HIA is fully supportive of policies that encourage people to take up a skilled trade, as it is vital that Australia has steady supply of tradies people to build the homes of tomorrow and increase the supply of housing in NSW.
However, recent calls to stop all RTO’s from receiving government support will make the problem of skills shortages worse.
Private RTO’s, in particular industry association RTO’s like HIA, have a long and successful track record delivering training products that are designed specifically for industry.
This allows students the option of choosing training that is tailored to their experience and delivered with flexibility to align with their working hours, and provides the crucial element of on the ground training.
There is no doubt that some Private RTO’s have abused funding in the past, however The Australian Skills and Qualifications Authority (ASQA) has made a concerted effort to crack down on the ‘dodgy’ RTO’s in recent years.
If ASQA audits a Private RTO and is satisfied they meet the necessary requirements, why would a state government believe differently?
HIA has helped hundreds of both young and adult apprentices complete their apprenticeship and get trade qualified over 15,800 students received their qualifications at an RTO in 2017.
It has also helped hundreds get their certificate in building or in other career pathways, and taken mature age apprentices through their journey to realising a new career, last year over 40% of all certificates achieved in Australia were achieved through RTO’s.
Instead of pitting TAFES against RTO’s Politicians in NSW would do better to put funds into promoting trades, to show that a trade is just not a plan B career choice but a legitimate and rewarding career that provides a vital service to the residential building industry and economy as a whole.
In fact, it seems lost on many politicians that industry groups like HIA work hand in hand with TAFE all the time in their apprentices.
HIA would also like to see more money directed towards mature age apprentices entering the work force as their expertise and life experience makes them a valuable asset to the residential building industry.
Any incoming NSW government needs to create meaningful policies to address skills shortages and provide flexibility in choice for students via a contestable market.
Simply using a populist argument and pitting RTO’s against TAFES doesn’t help anyone.
DAVID BARE is the Executive Director of HIA NSW
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Populist policy doesn’t solve skills problem: HIA's David Bare

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EXPERT OBSERVER
Over the 2018 calendar year, the share of sales across the six price points highlighted nationally were: 6.1% under $200,000, 24.8% between $200,000 and $400,000, 28.0% between $400,000 and $600,000, 18.7% between $600,000 and $800,000, 8.7% between $800,000 and $1 million and 13.8% at or above $1 million. 
The most prominent price point for sales was $400,000 to $600,000, while there were more sales of at least $1 million than there were below $200,000 or between $800,000 and $1 million.
The share of sales annually by price point over each five-year period from 1993 to 2018 shows how an overwhelming majority of sales occurred below $200,000 in 1993, compared to virtually no sales below $200,000 in 2018.
Over time, there has been a steady climb in the share of sales across the more expensive price points.
<img src="https://www.urban.com.au/images/2019/3/7/Kush%201.JPG" alt="">
Across the combined capital cities, sales below $200,000 accounted for just 1.8% of all sales, while sales of $1 million properties accounted for 19.5% of all sales.
The dominant price point for sales over the year was $400,000 to $600,000 (28.3%).
The chart clearly highlights the rising prevalence of $1 million sales while supply of stock under $200,000 has reduced substantially.
Sales of properties under $200,000 in regional Australia accounted for 12.9% of all sales over the year, the third largest price point for sales.
The $200,000 to $400,000 price bracket accounted for the largest share of sales over the year (38.1%). Sales of $1 million properties in regional Australia (4.7%) are much less common than they are across the capital cities.
<img src="https://www.urban.com.au/images/2019/3/7/Kush%202.JPG" alt="">
Over the 2018 calendar year, there were virtually no sales under $200,000 in Sydney.
By comparison, 37.0% of all sales were at or in excess of $1 million, which made up the largest cohort of sales.
A decade earlier, $1 million sales accounted for 8.9% of all sales, highlighting the increasing prevalence of million dollar sales in the city over the decade.
30.7% of all dwelling sales in regional NSW in 2018 were between $400,000 and $600,000 closely followed by 30.3% of sales between $200,000 and $400,000.
Sales of million dollar properties had the smallest share of all sales accounting for 6.3% while 9.6% of sales were less than $200,000.
<img src="https://www.urban.com.au/images/2019/3/7/Kush%203.JPG" alt="">
Like Sydney, virtually nothing sold for under $200,000 in Melbourne throughout 2018.
The greatest share of sales occurred between $400,000 and $600,000 (30.4%) and $600,000 and $800,000 (27.1%).
21.7% of all sales were at least $1 million, up from 5.4% a decade earlier.
A decade ago, 51.2% of all sales were between $200,000 and $400,000 compared to just 7.2% last year.
In regional Vic, sales of properties priced between $200,000 and $400,000 were most prevalent over the year (46.7%).
$1 million sales accounted for just 2.2% of transactions, the smallest share of any price point over the past year.
<img src="https://www.urban.com.au/images/2019/3/7/Kush%204.JPG" alt="">
The greatest share of property sales in Brisbane during 2018 occurred at a price between $400,000 and $600,000 (35.6%) followed by $200,000 to $400,000 (28.7%).
Over the year, just 1.7% of sales were below $200,000 compared to 7.8% at or in excess of $1 million.
In regional Qld, there were more sales under $200,000 (9.6%) than there were both five (8.1%) and 10 (7.9%) years ago.
Sales of properties priced between $200,000 and $400,000 accounted for the greatest share of sales (36.6%) followed by $400,000 to $600,000 (29.0%).
While a greater share of sales occurred under $200,000 there has also been an increase in $1 million sales, accounting for 6.0% and up from 2.7% of sales five years earlier.
<img src="https://www.urban.com.au/images/2019/3/7/Kush%205.JPG" alt="">
Most properties sold in Adelaide during 2018 sold for between $200,000 and $400,000 (37.5%), closely followed by $400,000 to $600,000 (33.1%).
Interestingly, there was a greater share of sales under $200,000 in 2018 (5.3%) than there were in 2013 (4.5%).
Similarly, $1 million sales increased their share from 2.4% in 2013 to 5.1% in 2018.
In regional SA, just 5.0% of all sales in 2018 occurred at prices above $600,000.
By comparison, 32.2% of all sales were under $200,000 and 49.2% were priced between $200,000 and $400,000 with the two accounting for 81.4% of all sales compared to 85.3% five years earlier.
<img src="https://www.urban.com.au/images/2019/3/7/Kush%206.JPG" alt="">
Perth dwelling values have been falling for most of the past five years. Despite these falls, the share of sales of $million properties has increased from 7.8% to 9.3%.
While $million sales have increased as a share over the past five years, so too have sales priced between $200,000 and $400,000, increasing from 24.5% five years ago to 30.7%.
There has also been a slight increase in sales under $200,000 (2.2% to 3.3%).
43.4% of all sales in regional WA in 2018 were priced between $200,000 and $400,000 in 2018 while a further 24.7% were priced below $200,000 resulting in 68.1% of sales under $400,000.
Five years earlier a much lower 57.8% of sales were under $400,000.
<img src="https://www.urban.com.au/images/2019/3/7/Kush%207.JPG" alt="">
With strong value growth over recent years, over the 2018 calendar year 43.8% of all sales in Hobart were under $400,000 compared to 68.8% five years earlier.
Million dollar sales accounted for 3.8% of all sales in 2018, up from 1.4% five years earlier.
In regional Tas housing is quite affordable and most sales occur across lower price points with 77.6% of all sales in 2018 priced below $400,000.
Property sales over $600,000 accounted for 5.1% of all sales in 2018, up from just 2.2% five years earlier.
 <img src="https://www.urban.com.au/images/2019/3/7/Kush%208.JPG" alt="">
Just 30.8% of all sales in Darwin throughout 2013 were under $400,000.
With most of the past five years having seen dwelling values fall, a greater 41.3% of all sales in 2018 were under $400,000.
The share of million dollar sales has reduced over the past five years from 2.8% to 2.2%.
The greatest share of sales in regional NT occurred between $400,000 and $600,000 (39.0%) while $800,000 to $1 million accounted for the fewest sales (0.9%).
Five years earlier, the greatest share of sales were occurring between $200,000 and $400,000 (48.0%).
<img src="https://www.urban.com.au/images/2019/3/7/Kush%209.JPG" alt="">
The greatest share of property sales in Canberra occurred between $400,000 and $600,000 in 2018 (36.7%) while five years earlier the largest price point for sales was also $400,000 to $600,000 accounting for 45.5% of all sales.
There has been a particularly large increase in the share of $million sales over the past five years, up to 8.8% of all sales from 2.8%.
<img src="https://www.urban.com.au/images/2019/3/7/Kush%2010.JPG" alt="">
The clear shift over the past five years has been towards a greater share of sales at higher price points.
While you’d expect this in the markets that have seen strong value growth such as Sydney, Melbourne and Hobart, we have also seen it across markets where value growth has been much weaker.
Values are currently declining fastest across the more expensive properties and over the coming year we would expect to see the share of sales over $1 million to reduce as values continue to fall.
As a result, we’d also expect slightly more sales occurring at lower price points, we don’t expect any material change in the share of sales under $200,000, in fact they may reduce further.
CAMERON KUSHER is a Research Analyst at CoreLogic.
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Million dollar property sales became more common in 2018: Cameron Kusher

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A new report has found five Australian cities have placed in the top 50 worldwide in terms of residential price growth. 
The Wealth Report 2019, released by Knight Frank, tracks the movement of luxury residential prices in the world’s top 100 cities.
Last year showed Sydney at the top of the list of Australian cities with 3.1% prime price growth in 2018.
Australia's rankings were: Sydney (30), Brisbane (31), Melbourne (41), Perth (42) and Gold Coast (42).
Manila topped the rankings with 11% growth, attributed to a lack of supply and the Philippines’ thriving economy.
The index saw its lowest rate of annual growth since 2012 with prices rising on average by 1.3% down from 2.1% in 2017. 
According to Knight Frank’s Head of Residential Research, Australia Michelle Ciesielski: “The Australian prime market continues to track above the global average for luxury residential price growth over the year to December 2018, with Sydney topping the list for Australian cities on the PIRI 100 at 3.1% growth; Brisbane at 3%; Melbourne 2.2%; and Perth and the Gold Coast both at 2.1% price growth year-on-year.
“The price growth between prime global markets is converging – and Australia is no exception. The performance in 2018 saw all five Australian prime cities place in the top 50 of Knight Frank’s PIRI 100 – all five cities within 1 percentage point – when three years ago the range was closer to 19 percentage points.”
<img src="https://www.urban.com.au/images/2019/3/6/KF%20Cities.JPG" alt="">
Knight Frank’s Head of Residential, Australia Sarah Harding said: “According to The Wealth Report Attitude Survey, for the second year in a row, Australia has retained its position as the third most popular country for those planning to buy prime residential property globally in 2019 – behind the US and the UK. Australia remains a top destination for the ultra-wealthy due to multiple factors, including lifestyle, education, and political stability.
“Ultra-high-net-worth individuals dedicate a large portion of their wealth to property. This has been confirmed by the growth in the average number of homes owned by wealthy people around the world increasing from 2.9 to 3.6 over the past year. We found Australian UHNWIs owned three residential homes, on average, in 2018.
“Only 6% of ultra-wealthy Australians purchased prime residential property outside of Australia in 2018. This is relatively low when compared with other active countries in the Asia Pacific region such as South Korea (30%), Hong Kong (28%), Malaysia (27%) or China (25%).”
Ciesielski said prime residential growth has become more sustainable in most Australian cities on the PIRI 100.
“In Perth, early signs of business recovery and a strengthening office market had a positive impact with prime residential price growth rising from 1.3% in 2017 to 2.1% in 2018,” said Ciesielski. 
“Properties along the waterfront have remained popular with the downsizing generation, and the city still offers good value relative to other major Australian cities.
“The spotlight in 2019 will remain on the pace of recovery as the Western Australian resources sector continues to build.”
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Five Australian cities in top 50 worldwide for residential price growth: Knight Frank

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National housing affordability declined in the December quarter, affecting nearly all states and territories, a new report has found.
Victoria and the Northern Territory were the only places where affordability increased, research from the Real Estate Institute of Australia (REIA) and Adelaide Bank found.
Tasmania was the hardest hit, said REIA President Adrian Kelly.
“Rental affordability, for the quarter, marginally declined across the country,” Kelly said. 
“With the exception of New South Wales, Victoria and Tasmania, rental affordability declined in all states and territories with the largest decline in the Northern Territory. 
“Victoria was the only state or territory in which both housing affordability and rental affordability improved. “Despite the Christmas break, the number of loans has increased across the country by 3.3%, with increases in all states and territories except Queensland. 
Kelly said during the quarter, the number of loans to first home buyers has increased, with increases in all states and territories.
The number of loans to first home buyers as a proportion of all loans has also increased over the quarter.  “Tasmania, the Northern Territory and the Australian Capital Territory all had relatively large increases in loans to first home buyers,” Kelly said.  
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National housing affordability takes a hit in December quarter

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GDP growth disappoints, sliding into "GDP per capita recession": Shane Oliver

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EXPERT OBSERVATION
Over the past month, we have seen a shift in cash rate predictions for 2019 from economists. Some see it holding throughout the year, some anticipate one 0.25 percentage points (pp) cut and major bank Westpac is now projecting two 0.25pp cuts to reach 1.00 per cent by year end.
Looking at these forecasts from a mortgage holder’s perspective, does it still matter if the Reserve Bank of Australia (RBA) holds or cuts the official cash rate given Australian banks have increased their rates in recent times independently of the cash rate?
Since August 2016, the RBA has held the official cash rate steady at a record-low 1.5 per cent; however, during that time the standard variable rate set by the banks has declined once and been lifted twice.
The history
The margin between the standard variable mortgage rate and the RBA’s official cash rate has widened over the past nine years.
At the peak of the post-GFC rate cycle, in November 2010, the RBA lifted rates by 0.25pp to 4.75 per cent. At that point in time, RBA data shows that the standard variable rate for owner occupiers was 7.80 per cent – a difference of 3.05pp compared to the official cash rate. A year later, the RBA dropped the cash rate by 0.25pp to 4.5 per cent and though the variable rate also fell to 7.55 per cent, the difference remained the same.
During the 12 months to November 2012, the cash rate was cut four times to sit at 3.25 per cent. In conjunction, the standard variable rate also fell, but not at the same pace, to 6.63 per cent. This broadened the gap between the two rates to 3.39pp.
Fast-forward to January 2019, the cash rate stands at 1.5 per cent and the variable rate is 5.37 per cent; the highest margin on record of 3.87pp.
The widening gap applies whether standard or discount variable rates are used; and in order to return to the margin of 3.05pp seen in 2010 the RBA would have to lift the cash rate by 0.25pp three times throughout the year.
Considering the Australian housing market is currently going through a period of adjustment and borrowers have been hit with rate hikes due to increasing interest rates in overseas markets, many economists are predicting that the RBA will cut the cash rate even further in an effort to achieve its inflation objective.
<img src="https://www.urban.com.au/images/2019/3/6/RBA%20LJ%20Hooker.JPG" alt=""> 
Impact on mortgage rates
Although banks are generally expected to keep rates in-line with the RBA’s cash rate, it’s not guaranteed; as funding costs for mortgages are based on many economic and financial factors.
One factor is the strength of the Australian economy. Indicators like unemployment and GDP, which determines household wealth and drives changes in the Aussie dollar, influence the demand for home loans which can either propel rates higher or lower. Presently, the RBA is keeping an eye on household consumption, which accounts for approximately 60 per cent of spending in the economy.
Mortgage rates can also be influenced by the banks’ short-term borrowing such as bank bill swap and overnight cash rates, which impacts the funding costs of our major banks. If short-term borrowing rates are on the rise, banks could pass on that savings to mortgage holders by hiking interest rates.
Trends like a narrowing of the credit-deposit gap – the amount of borrowing compared to savings – is another factor impacting interest rates. An ongoing credit-deposit gap would add pressure to short-term funding; and again, the banks could pass that savings to mortgage holders.
In addition, global economies and financial markets impact the cost of funding for our local banks. These include government bond rates and the monetary policy settings of the world’s major economies. All eyes are currently on China as its economy has slowed more than expected and tensions with the United States squeezes finance to the private sector.
What it means for you
A report by Deloitte found that 41 per cent of Australian mortgage holders do not keep track of the cash rate or consider its impact on their home loan. And with the cash rate being at a record-low for 30 consecutive months, Australians can be absolved for underestimating its importance.
As illustrated, banks do not have to keep interest rates in line with the RBA’s cash rate. However, the cash rate will impact the cost of funding for the banks; sequentially, impacting mortgage repayments as banks pass on those costs to consumers. So yes, it’s still relevant for mortgage holders to stay up-to-date on the RBA’s monthly decision.
Despite the cash rate being kept on hold, the regulatory and economic environment has already triggered changes in mortgages rates; hence, why it’s vital for mortgage holders to also be across all major economic news - domestic and global.
MATHEW TILLER (pictured) is the head of research at LJ Hooker
<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/2019/3/6/Mathew%20Tiller.jpg" alt="">
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Is there still relevance in RBA rate watching? Matthew Tiller

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EXPERT OBSERVATION
Housing market stabilisation depends on the response of owner occupiers to improving affordability.
Buyer sentiment provides a rough guide to how this is progressing.
<div>
With the price adjustment in Sydney and Melbourne continuing and investor demand unlikely to return any time soon, an eventual stabilisation depends heavily on the response of owner occupiers to improving affordability. A recovery in buyer sentiment suggests improvements are already gaining some traction.
However, the measures of affordability that align best with sentiment also suggest further improvements will be required to generate a lift in demand. While Westpac now expects interest rate cuts to contribute to better affordability, price moves will need to do more of the ‘work’ than in previous adjustments.
There is little doubt that housing affordability and consumer sentiment towards housing are closely linked. Our previous research established a particularly close relationship between the ‘time to buy a dwelling’ index and an affordability measure that incorporates both deposit requirements and mortgage repayments.
Latest readings on both measures show buyer sentiment lifting a little in response to some easing in affordability pressures, although the gap to long run averages indicates affordability is still not back to ‘normal’.
The chart below shows the evolution of affordability over previous price corrections and the contributions from the three components: prices, mortgage rates and incomes. In each of these, falling rates and income growth provided assistance in restoring affordability. In contrast, the current adjustment is expected to see much less assistance from rates and is occurring against a backdrop of weak income growth.
This implies that price declines will need to do most of the ‘heavy lifting’ to generate an affordability improvement.
We can get some indicative estimates of how much further prices may need to move by looking at the price change required to return affordability to its 20yr average. The results point to about a 5% decline required nationally with more substantive moves in the 5-10% range for NSW and Vic, and milder moves across other states.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/Housing_Pulse/Housing_Pulse_Bites/2019-02/Housing-pulse-bite-2019-02-2.jpg" alt="">  
MATTHEW HASSAN is a Senior Economist for Westpac
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