<p>One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.</p>

<p>Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.</p>

<p>The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" /></p>

<p>Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.</p>

<p>Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.</p>

<p>The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.</p>

<p>Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.</p>

<p>The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.</p>

<p>That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.</p>

<p>The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.</p>

<p>"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.</p>

<p><img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" /></p>

<p>Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.</p>

<p>The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.</p>

<p>The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.</p>

<p>According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.</p>

<p>The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.</p>

<p>A significant component of the proposal is the revitalisation of Blue Street Plaza.</p>

<p>The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.</p>

<p>Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.</p>

<p>Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.</p>

<p>Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.</p>

<p>Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.</p>

<p>The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.</p>

<p>Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.</p>

<p>&nbsp;</p>

<p>FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.</p>

<p>Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.</p>

<p>Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.</p>


Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

<p>Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.</p>

<p>The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.</p>

<p>The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.</p>

<p>The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.</p>

<p><img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" /></p>

<p>The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;</p>

<p>PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.</p>

<p>The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.</p>

<p>Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.</p>

<p>"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.</p>

<p>Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.</p>

<p>A major focus of the design has been the public domain.</p>

<p>The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.</p>

<p>The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.</p>

<p data-end="239" data-start="66">Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.</p>

<p data-end="442" data-start="241">Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.</p>

<p data-end="661" data-start="444">Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.</p>

<p data-end="909" data-start="663">Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a></em></p>

<p data-end="1339" data-start="1019">Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.</p>

<p data-end="1339" data-start="1019">[smartcode_project:default project_id=30959 project_image_fid=292863]</p>

<p data-end="1398" data-start="1341">It has since quietly assembled its next wave of projects.</p>

<p data-end="1805" data-start="1400">Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.</p>

<p data-end="1805" data-start="1400">[smartcode_project:default project_id=152095 project_image_fid=373685]</p>

<p data-end="1991" data-start="1807">The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.</p>

<p data-end="2303" data-is-last-node="" data-is-only-node="" data-start="1993">Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.</p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a></em></p>

<p><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a></em><br />
&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

<p data-end="492" data-start="327">Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.</p>

<p data-end="843" data-start="497">At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.</p>

<p data-end="1109" data-start="848">The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.</p>

<p data-end="1109" data-start="848">[smartcode_project:default project_id=152022 project_image_fid=375528]</p>

<p>Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.</p>

<p>The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.</p>

<p>"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375531]</p>

<p>The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.</p>

<p>The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375524]</p>

<p>Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.</p>

<p>Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.</p>

<p>[smartcode_project:default project_id=152022 project_image_fid=375530]</p>

<p>The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.</p>

<p>The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.</p>

<p>The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.</p>

<p>"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.</p>

<p>"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."</p>

<p>Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.</p>

<p>[smartcode_project_cta:default project_id=152022]</p>


Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

<p>Not all apartment amenities are immediately visible.</p>

<p>Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.</p>

<p>Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.</p>

<p>Online shopping has been one of the biggest drivers of that shift.</p>

<p>Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.</p>

<p>For apartment residents, however, receiving those deliveries isn't always straightforward.</p>

<p>Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.</p>

<p>Australia Post's Parcel Locker network is one response to that shift.</p>

<p><iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe></p>

<p>Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.</p>

<p>The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.</p>

<p>That growing presence reflects a broader change in how apartment buildings are being planned.</p>

<p>Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.</p>

<p>It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.</p>

<p>For buyers comparing apartments, these everyday details are becoming part of the decision-making process.</p>

<p>Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.</p>


Parcel delivery is joining the apartment amenity checklist

<p data-end="471" data-start="164">Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.</p>

<p data-end="777" data-start="473">The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.</p>

<p data-end="976" data-start="779">Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.</p>

<p data-end="1119" data-start="978"><a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.</p>

<p data-end="1399" data-start="1121">"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.</p>

<p data-end="1399" data-start="1121">"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."</p>

<p data-end="1605" data-start="1401">The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.</p>

<p data-end="1852" data-start="1607">The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.</p>

<p data-end="1852" data-start="1607"><img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" /></p>

<p data-end="2031" data-start="1854">Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.</p>

<p data-end="2299" data-start="2033">"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.</p>

<p data-end="2588" data-start="2301">Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.</p>

<p data-end="4143" data-start="3991">Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.</p>

<p data-end="593" data-start="417">Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.</p>

<p data-end="789" data-start="598">New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.</p>

<p data-end="1053" data-start="794">IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.</p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a></em></p>

<p data-end="4143" data-start="3991"><em>Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a></em></p>


First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

<p>Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.</p>

<p>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;</p>

<h2>What is the Help to Buy Scheme?</h2>

<p>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.</p>

<p>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).</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

<p>To qualify for the Help to Buy Scheme, applicants must meet the following conditions:</p>

<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>

<p>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.</p>

<p>The scheme is expected to commence in NSW in late 2025, as part of a national rollout.</p>


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

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.</p>

<h2>New South Wales First Home Owner Grant</h2>

<p><strong data-end="252" data-start="225">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="413" data-start="389">Stamp Duty Benefits:</strong> Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.</p>

<h2>Victoria South Wales First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.</p>

<p><strong>Stamp Duty Benefits</strong>: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.</p>

<h2>Queensland First Home Owner Grant</h2>

<p><strong data-end="920" data-start="893">First Home Owner Grant:</strong> 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.</p>

<p><strong data-end="1162" data-start="1135">Stamp Duty Concessions:</strong> Provides additional concessions for properties valued up to $800,000.</p>

<h2>Western Australia First Home Owner Grant</h2>

<p>&nbsp;</p>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Concessions:</strong> Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.</p>

<h2>Australian Capital Territory First Home Owner Grant</h2>

<p><strong data-end="1617" data-start="1590">First Home Owner Grant:</strong> Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.</p>

<h2>South Australia First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> 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.</p>

<p><strong>Stamp Duty Relief:</strong> Available for new homes and vacant land purchases.</p>

<h2>Tasmania First Home Owner Grant</h2>

<p><strong>First Home Owner Grant</strong>: Offers a $10,000 grant for new homes and off the plan purchases.</p>

<p><strong>Stamp Duty Exemption</strong>: 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.</p>

<h2>Northern Territory First Home Owner Grant</h2>

<p><strong>First Home Owner Grant:</strong> The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.</p>

<p><strong>Stamp Duty Exemption</strong>: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).</p>

<p><em>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.</em></p>


Every First Home Owner Grant for new property by state

<p>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.</p>

<p>Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.</p>

<p>Some systems assess individual building components, while others provide an overall rating for the entire structure.</p>

<p>A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.</p>

<p>NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.</p>

<p>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.</p>

<h2>What is NatHERS?</h2>

<p>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;</p>

<p>NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;</p>

<p>NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.</p>

<p>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.</p>

<h2>How NatHERS Ratings Work</h2>

<p>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.</p>

<p>The tools can model complex effects of building mass, insulation, window size, and other elements.</p>

<p>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.</p>

<p>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;</p>

<p>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.</p>

<p>Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.</p>

<h2>Benefits of Higher NatHERS Ratings</h2>

<p><strong>Energy Efficiency:</strong> 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.</p>

<p><strong>Cost Savings:</strong> 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.</p>

<p><strong>Environmental Impact:</strong> 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.</p>

<p><strong>Improved Comfort: </strong>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.</p>

<p><strong>Market Value and Desirability:</strong> 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.</p>

<p><strong>Compliance with Building Codes:</strong> 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.</p>


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?

<p>Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.</p>

<p>Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.</p>

<p>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.</p>

<h3>Convenience and accessibility</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=114215 project_image_fid=204874]</p>

<p>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.</p>

<h3>Vibrant lifestyle and community</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=107714 project_image_fid=214122]</p>

<p>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.</p>

<h3>Potential for higher rental yields and property value appreciation</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=139989 project_image_fid=212887]</p>

<p>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.</p>

<h3>Enhanced security and maintenance</h3>

<p>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.</p>

<p>[smartcode_project:default project_id=108019 project_image_fid=212658]</p>

<p>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.</p>

<h3>Live-work-play balance</h3>

<p>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.</p>

<p>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.</p>


alisonwarters@gmail.com

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

<p style="line-height: 1.38;">When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.</p>

<p style="line-height: 1.38;">Often the largest outlay, after the deposit which goes to the bank, is stamp duty.</p>

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

<p>Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.</p>

<p>It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.</p>

<p style="line-height: 1.38;"><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></p>

<h2>Who pays Stamp Duty?</h2>

<p>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.</p>

<h2>How much does Stamp Duty cost?</h2>

<p>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.</p>

<p>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!</p>

<p>Overall, the stamp duty you need to pay will depend on:</p>

<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>

<p style="line-height:1.38">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.</p>


Ellen Walker

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

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<div>The latest APRA figures showed that loans with redraw and offset facilities have continued to flourish and become more popular than ever before. </div>
<div> </div>
<div>But check these two charts out below. </div>
<div> </div>
<div>Firstly, a massive $44 billion of loans of $96 billion new residential housing loans written in the June quarter were accounted for by interest only products.</div>
<div> </div>
<div><a href="/images/2015/08/26/IO2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div><img src="/images/2015/08/26/IO2.jpg" alt=""></div>
<div> </div>
<div><span>And secondly, to put this in its recent historical context, $44 billion reprsents an incredible 45.8 per cent of new loan exposures written.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/26/IO1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
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<div><span><img src="/images/2015/08/26/IO1.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<div class="separator">In summary, it is true that offsets and redraw facilities are included in new loan products more than has ever been the case before.</div>
<div class="separator"> </div>
<div class="separator">However, with somewhere now approaching half of new loans written not requiring immediate repayments against the loan principal there appears to be an increasingly heavy reliance on borrowers managing their personal finances responsibly.</div>
<div class="separator"> </div>
<div class="separator">
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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pwargent-M4siyDbqQY

Interest only loans boom: Pete Wargent

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<p><strong><em>Hi Margaret,</em></strong><br><br><strong><em>I've recently purchased commercial real estate in the last 30 days in VIC (settlement has been completed).</em></strong><br><br><strong><em>I registered it under company "1 PTY LTD", however I wish to change this to a different company (I remain as the company director of the new company).</em></strong><br><br><strong><em>Stamp duty cost me 100k+ (I don't wish to pay this again).</em></strong><br><br><strong><em>Is the above possible without attracting stamp duty on the building if a mistake was made?</em></strong></p>
<p><span> </span></p>
<p><span><span>It may be hard for you to convince the office of state revenue that you made a mistake on this one - when you received the contract it would have asked for the purchaser's detail, the documents would have been signed by you as that purchaser and the State Revenue Office would have relied on these documents for the purpose of assessment of duty.</span><br><br><span>As this one is outside of my own area of expertise I consulted Paul Sande from Asset Conveyancing.  He is an expert in conveyancing in all states, as this area is markedly different from state to state.</span><br><br><span>He believes that there may be another avenue available to you.</span><br><br><span>Sec 250A of the Duties Act 2000 provides for an exemption from duty for an eligible transaction where there is a legitimate reconstruction of corporate groups. An eligible transaction is any of the following that occurs on or after 1 January 2004:-</span><br><br><span>1. A transfer of dutiable property from one member of a corporate group to another member of the group;</span><br><span>2. A relevant acquisition by a member of a corporate group from another member of the group to which Sec 83 of the Duties Act applies;</span><br><span>3. A declaration of trust to dutiable property the specification of which forms part of the declaration of trust or part of the transaction constituted by the declaration of trust by one member of a corporate group under which the dutiable property is held on trust for another member of the group; or</span><br><span>4. Any other transaction that results in the beneficial ownership of dutiable property moving from one member of a corporate group to another member of the group.</span><br><br><span>Paul says that the Commissioner needs to be satisfied, amongst other things, that the eligible transaction does not arise from arrangements or a scheme devised for the principal purpose of taking advantage of the benefit of the corporate reconstruction exemption.</span><br><br><span>In your case you did this inadvertently and so there was no intent to gain any particular advantage here. Your best course of action is to consult your office of state revenue, explain that you wish to reconstruct the corporate group to have this property held by another member of that group, and see what they say about this.</span></span></p>
<p><span><span><em>Have a property question?       <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a></em></span></span></p>
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mlomas-KC9MUPZ6Ca

Ask Margaret: Convincing the Office of State Revenue

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<p>Given the impact of technology on our everyday life it’s not surprising that any list of the world’s top brands is tech dominated.</p>
<p>If you own a smartphone you might well interact with one of these brands as the first and last thing you do every day, as you check the time or check your emails. As you might already have guessed currently the world’s number one brand is Apple, followed by Microsoft, Google, Coca Cola and IBM, it’s the tech brands that dominate the top 50 brands.</p>
<p>Ikea is the highest ranked brand that could be related to homemaking, however the value of a successful brand is an important part of property marketing. One reason is that as more of us continue to live in cities we are also looking to secure our identity, and where we live is central to this. The branding of suburbs, apartment buildings, housing estates, different states and right on to brand Australia, all of these tie into the essence of our marketing and as a marketing tool and part of the sales path, this topic deserves a lot attention.</p>
<p><strong>House Names to Brand Australia</strong></p>
<p>Perhaps the most common property related brand would be the name given to individual houses, this has been a long tradition in many countries including Australia. While house names might have originally helped the postman deliver the mail, they are a popular part of our residential history.</p>
<p>It does appear, and perhaps not surprisingly, that Australian house names are often associated with the sea, or at least an association with being near to or having a view of water. Some of the more obvious examples include Driftwood, Bay Cottage, Lakeview, Seaview, Waterfront and Seacrest, and at least a few of these have been recycled as names and brands for apartment blocks. I am sure we have all at least seen more than one Seaview or Waterfront apartment project name!</p>
<p>House names and terrace row names are really living history and add interest and colour to many an inner-city suburb across Australia. Then as far as real estate is concerned we have brand Australia itself.</p>
<p>Brand Australia has some both familiar, and some lofty aspirations and these include core values like: friendly people, an attractive natural environment, resources, quality lifestyle, sunny, confident, creative, outward looking and talented, grand and impressive!</p>
<p>In a very matter-of-fact but interesting way, many of these same values are the very attributes that attract offshore buyers to our country and our local property market. Such brand values are almost priceless but they do underscore beyond the dollars and bricks and mortar why we are such a popular market with offshore buyers.</p>
<p><strong>Creating Brand Value</strong></p>
<p>Brands aim to create a personality, brand awareness and it’s an ongoing and complex task. I am not an expert, here my aim is to acknowledge how important brands are in project marketing. For the actual success of projects, in the eyes and mind-set of buyers, for developers and for the marketing agents, we all benefit and can I suggest <em>need</em> strong brands, and this also extends to personal brands. In today’s world a personal brand is no longer something just for a handful of personalities.</p>
<p>I think it’s useful if we tick off some of the key ways any brand is created and sustained. Firstly there is a need to create energy around the process and the wide participation of all team members. Creativity is not something you can buy in a bottle or a neat package, that’s why team involvement in particular with a major project is a good idea. While there has to be a lead taken, to avoid an endless round of likes and dislikes, involving the project team never does any harm and is usually positive.</p>
<p>There are also some well-regarded measures for how the success of a brand is measured and this includes longevity, a brand that is easy to remember, is unique, keeps things fresh, reflects passion and must have consistency.</p>
<p>For buyers there might also be another test. If you happen to live in a block of 100 or 200 apartments you want the brand to be well regarded, in particular that’s important when it comes time to sell.</p>
<p><strong>I Can’t Imagine Living Anywhere Else!</strong></p>
<p>If every buyer we have dealt with was happy to say these words, then in every respect we have doubtless created a building or a new estate with a great brand.</p>
<p>When thinking about a residential project brand, one aim is to create and build the project’s reputation, to humanise the brand and encourage a strong word of mouth connection.</p>
<p>While there are graphic and design considerations, the appeal of a brand should also aim to reinforce key aspects of a project’s lifestyle. Inspiration can come from how potential residents might interact with the environment, for example by having a morning ritual or relaxing at or near home.</p>
<p>The creation of a strong brand that reflects all of the key aspects of a project can have considerable appeal and will also aid social media and can directly help create more web traffic. For larger, longer-term projects this sort of brand awareness has big up-side advantages.</p>
<p>There is also strong synergy between individual project brands and the brand qualities of the developer because the two are intertwined. Strong brand values for any developer will pay off handsomely as they help sustain off-the-plan sales, where the buyer’s trust in the end product is important.</p>
<p>Buyers, the future residents of a building or an estate are not only attracted by brands that represent the height of fashion, the core idea is to create ownership of the project in the most positive light. The brand can also then galvanise and give focus to all aspects of the project.</p>
<p><strong>Gentrification A Good Example</strong></p>
<p>Looking for a good example we need to look no further than how clever branding has been used to re-cast the gentrification of many former industrial areas on the fringe of many of our capital cities.</p>
<p>In areas like Sydney’s south-east entire groups of suburbs have been ‘re-branded’ with a great mix of residential, commercial and social infrastructure and innovative building design to create very desirable areas. The combination of facilities has been important in building the brand in these areas, and new shops, cafes and even supermarkets with extended trading have all played their part. This process of gentrification is perhaps one of the best examples I could use to show the power of brands in our field.</p>
<p><em>Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.</em></p>
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pchittenden-eLqUUC8TWW

The role of brands in marketing projects: Peter Chittenden

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<p>Another fascinating week with Australia experiencing a significant stock market correction followed by the National Reform Summit which in all probability won’t amount to anything given the responsibility rests with our politicians. When it comes to anything economic in Australia we see a typical allergy where they are too frightened to come into contact with these issues.</p>
<p>Since 2013, the internet population grew approximately 20% – from 2.4 billion to 3.2 billion people yet for some strange reason we still struggle to understand data, or is it that the data we should be seeing is withheld? Australia’s misunderstood property markets are a prime example – with Sydney well ahead of the country in terms of inaccuracy in reporting.</p>
<p>One of the main areas for concern to come from the National Reform Summit was productivity where many believe Australia has come to a grinding halt which is replicated with our present GDP growth rates. For some time now I have been carefully watching property growth rates which (wait for it) closely resemble our GDP results.</p>
<p>To further explain we closely looked at sales data from 2009 to 2014 for house and apartment sales in Seaforth, Mosman, Cremorne, Neutral Bay, Cammeray and Northbridge where the total number of households equates to 39,227.<em>Source CoreLogic RP Data.</em></p>
<p>We need to bear in mind that when you closely examine individual suburb markets at five (5) per cent turnover per annum the market turnover is normal and slightly under-performing. When it gets to ten (10) % per annum turnover the market is considered strong and when the market hits fifteen (15) % turnover per annum that is a boom. The last time we witnessed the market hitting 15% was in 1988.</p>
<p>So we took the six year averages for sales and this is what we found.</p>
<ul>
<li>Seaforth – Average number of sales from 2009 to 2014 per annum – 120 houses which equates to 5.1% of the total market on a per annum basis.</li>
<li>Seaforth – Average number of sales from 2009 to 2014 per annum – 16 apartments which equates to 4.7% of the total market on a per annum basis.</li>
<li>Mosman – Average number of sales from 2009 to 2014 per annum – 312 houses which equates to 5.3% of the total market on a per annum basis.</li>
<li>Mosman – Average number of sales from 2009 to 2014 per annum – 492 apartments which equates to 4.9% of the total market on a per annum basis.</li>
<li>Cremorne – Average number of sales from 2009 to 2014 per annum – 62 houses which equates to 4.6% of the total market on a per annum basis.</li>
<li>Cremorne – Average number of sales from 2009 to 2014 per annum – 278 apartments which equates to 5.0% of the total market on a per annum basis.</li>
<li>Neutral Bay – Average number of sales from 2009 to 2014 per annum – 55 houses which equates to 4.95% of the total market on a per annum basis.</li>
<li>Neutral Bay – Average number of sales from 2009 to 2014 per annum – 323 apartments which equates to 4.8% of the total market on a per annum basis.</li>
<li>Cammeray – Average number of sales from 2009 to 2014 per annum – 56 houses which equates to 5.6% of the total market on a per annum basis.</li>
<li>Cammeray – Average number of sales from 2009 to 2014 per annum – 147 apartments which equates to 5.5% of the total market on a per annum basis.</li>
<li>Northbridge – Average number of sales from 2009 to 2014 per annum – 88 houses which equates to 4.3% of the total market on a per annum basis.</li>
<li>Northbridge – Average number of sales from 2009 to 2014 per annum – 28 apartments which equates to 5.5% of the total market on a per annum basis.</li>
</ul>
<p>When one takes into account that the cash rate at the beginning of 2009 was 3.25% and dropping to 2.50 at the end of 2014 we would have expected the number of properties to be rapidly increasing – which has not been the case. Moreover this reaffirms that business is not doing that well given households are not that interested in taking on more debt, which certainly resonated with a lot that was presented at the National Reform Summit.<br>.<br>The burning question is what is Canberra going to do about this?</p>
<h5>Mosman Houses Sold – Total Number 5,890 Houses</h5>
<p>2009 – 303<br>2010 – 325<br>2011 – 264<br>2012 – 276<br>2013 – 355<br>2014 – 350</p>
<h5>Mosman Apartments Sold – Total Number 10,020 Apartments</h5>
<p>2009 – 523<br>2010 – 453<br>2011 – 474<br>2012 – 443<br>2013 – 543<br>2014 – 514</p>
<h5>Cremorne Houses Sold – Total Number 1,135 Houses</h5>
<p>2009 – 71<br>2010 – 65<br>2011 – 56<br>2012 – 56<br>2013 – 66<br>2014 – 59</p>
<h5>Cremorne Apartments Sold – Total Number 5,481 Apartments</h5>
<p>2009 – 339<br>2010 – 302<br>2011 – 288<br>2012 – 218<br>2013 – 267<br>2014 – 255</p>
<h5>Neutral Bay Houses Sold – Total Number 1,109 Houses</h5>
<p>2009 – 61<br>2010 – 69<br>2011 – 51<br>2012 – 51<br>2013 – 61<br>2014 – 40</p>
<h5>Neutral Bay Apartments Sold – Total Number 6,638 Apartments</h5>
<p>2009 – 411<br>2010 – 362<br>2011 – 287<br>2012 – 283<br>2013 – 308<br>2014 – 286</p>
<h5>Cammeray Houses Sold – Total Number 1,275 Houses</h5>
<p>2009 – 58<br>2010 – 50<br>2011 – 50<br>2012 – 56<br>2013 – 64<br>2014 – 61</p>
<h5>Cammeray Apartments Sold – Total Number 2,610 Apartments</h5>
<p>2009 – 156<br>2010 – 194<br>2011 – 156<br>2012 – 107<br>2013 – 135<br>2014 – 137</p>
<h5>Northbridge Houses Sold – Total Number 1,914 Houses</h5>
<p>2009 – 88<br>2010 – 63<br>2011 – 68<br>2012 – 89<br>2013 – 102<br>2014 – 94</p>
<h5>Northbridge Apartments Sold – Total Number 504 Apartments</h5>
<p>2009 – 32<br>2010 – 33<br>2011 – 20<br>2012 – 23<br>2013 – 35<br>2014 – 27</p>
<h5>Seaforth Houses Sold – Total Number 2,317 Houses</h5>
<p>2009 – 113<br>2010 – 109<br>2011 – 113<br>2012 – 121<br>2013 – 138<br>2014 – 127</p>
<h5>Seaforth Apartments Sold – Total Number 334 Apartments</h5>
<p>2009 – 21<br>2010 – 11<br>2011 – 10<br>2012 – 14<br>2013 – 17<br>2014 – 26<br><em>Source – CoreLogic RP Data</em></p>
<h5>MOSMAN – 2088</h5>
<p>• Number of houses on the market this time last year – 69</p>
<p>• Number of houses on the market last week – 53</p>
<p>• Number of houses on the market this week – 65</p>
<p>• Number of apartments on the market this time last year – 51</p>
<p>• Number of apartments on the market last week – 41</p>
<p>• Number of apartments on the market this week – 42</p>
<h5>CREMORNE – 2090</h5>
<p>• Number of houses on the market this time last year – 7</p>
<p>• Number of houses on the market last week – 2</p>
<p>• Number of houses on the market this week – 4</p>
<p>• Number of apartments on the market this time last year – 15</p>
<p>• Number of apartments on the market last week – 15</p>
<p>• Number of apartments on the market this week – 18</p>
<h5>NEUTRAL BAY – 2089</h5>
<p>• Number of houses on the market this time last year – 5</p>
<p>• Number of houses on the market last week – 4</p>
<p>•Number of houses on the market this week – 2</p>
<p>• Number of apartments on the market this time last year– 36</p>
<p>• Number of apartments on the market last week – 25</p>
<p>• Number of apartments on the market this week – 30</p>
<p> <em><span>ROBERT SIMEON</span> is a director of </em><em><a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> </em><em>and has been selling residential real estate in Sydney since 1985. <br>He has also been writing real estate blog </em><em><a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> </em><em>since 2000. </em></p>
<p><em> </em></p>
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Data doesn’t lie when you keep misreading it: Robert Simeon

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<p><span>For the last week of winter, the preliminary auction clearance rate was 75.4 per cent, with 2,583 auctions held across Australia’s capital cities. So far, 2,109 results have been reported to CoreLogic RP Data. </span></p>
<p><span>This week’s preliminary clearance rate is higher than last week’s result of 72.9 per cent and is likely to revise as additional results are reported. One year ago, the final auction clearance rate was also recorded at 72.9 per cent and there were 2,034 residential auctions held across the capital cities. It is expected that auction activity will continue to ramp up as we enter the spring selling season.</span></p>
<p><a href="/images/2015/08/31/20150831-Capital-City.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/31/20150831-Capital-City.jpg" alt="" width="760" height="564"></span></p>
<p> </p>
<p><span>This week, 1,024 </span><strong>Melbourne</strong><span> auctions have been reported, with a preliminary auction clearance of 77.0 per cent. This week’s result is an improvement from last week, when Melbourne recorded its lowest clearance rate since February (74.3 per cent). At the same time last year, Melbourne’s clearance rate was 73.5 per cent. In terms of the number of homes being taken to auction, this week (1,158) saw more auctions held than both last week (964) and last year (901). This week, the Inner sub-region was the busiest for auctions across Melbourne, with 253 homes going under the hammer. Preliminary results show that 68.0 per cent of the 219 reported results were successful.</span></p>
<p><a href="/images/2015/08/31/20150831-Melbourne.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/31/20150831-Melbourne.jpg" alt="" width="765" height="513"></span></p>
<p> </p>
<p><strong>Sydney’s</strong><span> preliminary auction clearance rate was 78.1 per cent this week, increasing from 76.2 per cent last week, however for the first time this year, the clearance rate is lower than the comparable week last year (79.9 per cent). This week, 1,080 Sydney auctions were held, compared to 930 last week and a lower 810 one year ago. There were 6 Sydney sub-regions that recorded an individual clearance rate higher than the city as a whole this week. Eastern Suburbs (87.6 per cent), North Sydney and Hornsby (86.3 per cent) and the Inner West (85.1 per cent) had the highest clearance rates, followed by Blacktown (84.6 per cent), City and Inner South (82.8 per cent) and Northern Beaches (81.5 per cent).</span></p>
<p><a href="/images/2015/08/31/20150831-Sydney.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/31/20150831-Sydney.jpg" alt="" width="746" height="506"></span></p>
<p> </p>
<p><span>Across </span><strong>Brisbane</strong><span> the preliminary clearance rate was 58.2 per cent this week. There have been 110 auctions reported to CoreLogic RP Data, with a total of 158 held across the city. This week’s result was higher than last week (54.5 per cent). For the </span><strong>Gold</strong><span> </span><strong>Coast</strong><span>, 44 results have been reported with a success rate of 61.3 per cent.</span></p>
<p><a href="/images/2015/08/31/20150831-Brisbane.jpg" target="_blank"><span>Click to enlarge</span></a></p>
<p><span><img src="/images/2015/08/31/20150831-Brisbane.jpg" alt="" width="741" height="500"></span></p>
<p> </p>
<p><span>There were 100 </span><strong>Adelaide</strong><span> auctions this week, compared to 90 last week and 88 at the same time last year, showing volumes increased across the city. The cities preliminary clearance rate this week was 64.8 per cent, down from 72.7 per cent last week and 64.9 per cent one year ago.</span></p>
<p><span>Click to enlarge</span></p>
<p><span><img src="/images/2015/08/31/20150831-Adelaide.jpg" alt="" width="780" height="524"></span></p>
<p>This week’s preliminary result for <strong>Perth</strong> was 66.7 per cent, compared to 29.7 per cent last week and 48.0 per cent one year ago.</p>
<p>61.9 per cent of the reported auction results for <strong>Canberra</strong> were sold this week, down from 71.2 per cent last week and 74.3 per cent at the same time last year.</p>
<p>There were 4 <strong>Tasmanian</strong> auctions reported to CoreLogic RP Data this week, with 3 sales.</p>
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Final week of winter returns high auction volumes: Corelogic RP Data's Shana Miller

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<div><span style="line-height: 1.3em;">I'm in the midst of what will ultimately be my most comprehensive research project to date, and henceforth will aim to share a few high level viewpoints and findings on this blog page along the way.</span></div>
<div> </div>
<div>There are of course a multitide of factors which impact and drive housing markets ranging from macroeconomic drivers to monetary policy, and from consumption patterns to construction rates. </div>
<div> </div>
<div>But for today let's look briefly and specifically at Australia's demographics.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Population pyramid</span></strong></div>
<div> </div>
<div>Looking below at an Australian population pyramid - which for the purposes of this blog post I have flipped on its side - representing the estimated resident population as at 2014, we can immediately observe a couple of salient points.</div>
<div> </div>
<div>Firstly, although Australia does have an ageing population, in part thanks to our immigration program the demographic profile of Australia is markedly different to those found in some other developed countries, and considerably less "top heavy".<br><br>With skilled migration in particular often having favoured those in the 21-30 age bracket, there is presently a relative dearth of people in my age bracket, that being the 31 to 38 year old cohort (see Point A on the below chart).</div>
<div> </div>
<div><a href="/images/2015/08/31/PP1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/PP1.jpg" alt=""></div>
<div> </div>
<div>
<div>Depending upon your preferred information source the average or "typical" age of first homebuyers in Australia now ranges anywhere from 31 to 34 years of age, and that figure could potentially levitate further due to a combination of lifestyle factors and increasingly stretched deposit gaps in the two major capital cities.<br><br>Of course, an "average" covers a wide range of ages and strains of buyer, but recent data has suggested that a comfortable majority of first homebuyers are now in their 30s or 40s.<br><br><strong><span style="text-decoration: underline;">Investors in the ascendancy...for now</span></strong><br><br>
</div>
<div>The shape of the first chart above may therefore go some of the way to explaining the comparatively low volumes of homebuyers in the market through this cycle, with investors dominant to an an unprecedented degree, particularly in the largest capital city markets.<br><br>Naturally other factors have played a role here, particularly looser monetary policy which has encouraged those with existing equity generated through housing market ownership to redeploy it in a faithful manner.<br><br>Not only is there a relative paucity of 31 to 38 year olds where we might expect to find the bulk of first homebuyers, there is also an evident weak spot in the traditional "big spender" cohort.<br><br>Which is to say, there is a proportionate lull in the number of executives, senior managers and business owners commonly aged from around 45 to 55 (refer to Point B on the above chart).</div>
<br><div>While the wave of first homebuyers predominantly impacts dwelling prices at the entry level, it is those in these middle working years that are the heaviest spenders in the housing market, making their most material dwelling purchases at that stage in life.</div>
<div> </div>
<div>As you can see in the graphic above, the demographic pyramid does not present too kindly in respect of either cohort at the current time...and nor is it likely to do so for some years.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Looking swell (2021-2027)</span></strong></div>
<div> </div>
<div>In fact, rolling the chart packs forward by calendar year we find that it is not until around around 2021 that the number of potential first homebuyers reaches a critical mass which might be considered compelling, with the number of 31 to 38 year olds in particular mushrooming to a total of more than 3.1 million (from around only 2.6 million in 2014).<br><br>In the period through to 2027, that number is projected to have expanded further still to more than 3.3 million. </div>
<div>
<br>As this effective "spending wave" passes through 2021, therefore, the demographic factors for Australian housing market growth look to be particularly favourable from that year until around 2027 inclusive.<br><br>As you can see in the second chart below, not only will the total population of Australia have swelled significantly by 2021 to around 26.5 million, the clamour of potential purchasers in the 31 to 38 year old age bracket (Point A below) really begins to amplify.<br><br>Furthermore there will be a coinciding wave of Australians approaching the latter half of their fourth decade (Point B below), the time of life at which they are likely to make their most consequential home purchases. </div>
<div> </div>
<div><a href="/images/2015/08/31/PP2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/PP2.jpg" alt=""></div>
<div> </div>
<div>
<div>This isn't to suggest here that the demographics for homebuyer activity then deteriorate after 2027 as such, rather that the projected figures then plateau for a period of time and thereby stop improving so impressively.<br><br><strong><span style="text-decoration: underline;">City winners and losers</span></strong><br><br>Drilling down to the next statistical level, it can be found that from around 2021 the demographic waves will become very favourable for Sydney, Melbourne, Brisbane and and <span style="text-decoration: underline;">particularly</span> Perth (assuming the superfluity of mining boom migrants opts to stay put, and interstate migration away from Western Australia doesn't begin to bite).<br><br>Hampered by an interstate migration "brain drain" these demographic waves do not suggest a favourable environment for the Adelaide housing market, with barely any improvement discernible over the same time horizon.<br><br>Meanwhile the latest projections suggest that Tasmania's housing market demographics could potentially worsen quite appreciably in the years leading up to 2035, although such longer term projections by their very nature tend to be less than reliable.<br><br><strong><span style="text-decoration: underline;">Dwelling starts</span></strong>
</div>
<div>
<br>While this is a blog post predominantly concerned with demographics, it's worth considering for a moment how the above findings tie in with the dwelling construction cycle.<br><br>Two of the "X-factors" which have impacted this housing market cycle have been an explosion in the volume of Asian capital invested in the Australian market and a hitherto unseen shift towards multi-unit construction.<br><br>Although 2015 will likely prove to be the market peak for dwelling starts, dwelling <em>completions</em> will remain elevated for the next few years.<br><br>In combination with a slowing rate of population growth, this will be one of the factors together with an erosion of yields which will eventually bring the current growth cycle to its end.</div>
<div> </div>
<div><a href="/images/2015/08/31/HIA.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/HIA.jpg" alt=""></div>
<div> </div>
<div><span>Since natural population growth and net overseas migration will take some time to absorb the excess dwelling stock, this also points broadly towards 2021-2027 as a likely period for housing market growth.</span></div>
<div><span> </span></div>
<div><a href="/images/2015/08/31/AW1.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2015/08/31/AW1.jpg" alt=""></span></div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">Long run demographics are healthy</span></strong></div>
<div> </div>
<div>While the latest data suggests that over the short term Australia's populaton growth is likely to continue to slow, over the very long run the demographics of Australia are exceptionally compelling, with the population potentially set to almost double by over the next half century.<br><br>Also note that immigration is projected to keep the headcount in the potential homebuyer age brackets expanding to heights that agents and other industry participants can only dream of today.</div>
<div> </div>
<div><a href="/images/2015/08/31/PP3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2015/08/31/PP3.jpg" alt=""></div>
</div>
<div> </div>
<div>
<div>
<strong><span style="text-decoration: underline;">The wrap</span></strong><br><br>With life expectancies increasing there will evidently be a greater number of residents living well beyond the traditional retirement date in the decades ahead, although in time we might expect to see more folk working beyond the traditional retirement age too.</div>
<div> </div>
<div>The chart above implies that with the demand for capital city property likely to approximately double over the very long run, the likelihood of capital city land values in the landlocked inner- and middle-ring suburbs remaining anything less than singularly expensive appears quite remote.<br><br>Of course, it isn't possible to forecast or time markets so accurately, but over the near term there could easily be a relatively weak period ahead for housing markets as dwelling completions overtake demand, before a potentially strong rebound running broadly between 2021 and 2027. </div>
<div> </div>
<div>The most interesting and useful findings are those which incorporate the shifting composition of net migration at the suburb level, though I don't post detailed suburb research on my blog. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
<div> </div>
</div>
</div>
</div>
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Making waves in the Aussie housing market: Pete Wargent

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<p><em>Hi Margaret,</em></p>
<p><em>My husband and I currently own a house in Macarthur (ACT) and are in negotiations with our neighbor to buy their house next door, before they move to Tasmania next year. The houses are side-by-side and at the end of a cul-de-sac.  </em></p>
<p><em>I'm just wondering what our first step would be if we decided to merge the two blocks of land and sell to a developer for them to build multiple dwellings. We don't want to manage or build ourselves, we just want to sell them as a package.</em></p>
<p><em>How do I know if this allowed in our suburb? Is there a website I can look at or someone I can contact?</em></p>
<p><em style="line-height: 1.3em;">Kind Regards,</em></p>
<p><em>Lisa </em></p>
<p><em> </em></p>
<p><em>Hi Lisa,</em></p>
<p><span>Your first port of call will be to the local council who manages subdivisions in your area. You will need to talk to their town  planning department.  The council will have a town plan in place which will be governed by the territory’s planning scheme. They will be able to tell you about the rules and regulations surrounding subdivisions, or in your case, land boundary changes in your area.</span></p>
<p><span>The reason it is important to start here is because you want to know exactly what you would be left with in the event that such a boundary change (that is the combining of two lots) is allowable. You need to know how many subsequent blocks a developer can achieve from this boundary change.  If they can only achieve the two blocks which you originally had, then there is no benefit to the boundary change and your blocks would be just as easily sold separately as they would combined as one.</span></p>
<p><span>Once you know these details you then have a choice: You can either simply offer your two blocks together for sale as a package, leaving the responsibility for a boundary change up to the potential developer, or you can effect the boundary change yourself, which may make the two blocks more valuable.  </span></p>
<p><span>You should consult an independent town planner, one who works in private practice, to quote you on the potential costs of having the two blocks combined, including his fees and all government charges, and also consult with a local real estate agent to establish whether or not spending this money would result in a suitably increased sale price.</span><span style="line-height: 1.3em;"> </span></p>
<p><span>If you wanted to go all the way you could then do the subdivision into the allowable number of blocks, but as you have seen, past advice I have given in this column has outlined all the potential risks and costs of doing that, and you have said you don’t wish to incur those.</span></p>
<p><span>I will point out to you that one of the difficulties you face is in working out who should get what. If you offer them for sale together, with a condition that both must be purchased, but you price them separately, it’s easy to see how much each person should get. But if you price them as a package, then it’s harder to work out whose property should get the most unless they are identical properties of identical size. In addition to this, you would both have to agree on what you get as a final price, and also on the strategy you would follow in the event that one of you had an offer for their house alone that they want to take.  </span></p>
<p><span>Under these circumstances, tempers can flare and relationships can break down. These are all the kinds of issues you must think about before entering such an agreement, and it’s a good policy to think about all the potential problems, write them down and agree on a solution before they arise.</span></p>
<p><em>Have a property question?        <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a></em></p>
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Ask Margaret: Merging blocks to create multiple dwellings

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<p>The combined capital city weighted average clearance rate increased to 73.4% last week, from 72.9% the previous week, while auction volumes increased from 2,248 to 2,654 which is the highest volumes have been since the last week of May (2,792).</p>
<p>This week, CoreLogic RP Data is tracking 2,335 auctions, higher than the comparable week last year when 1,897 auctions were held across the capital cities.</p>
<p>Below is a brief wrap up of each capital city auction market over the winter months. Despite Sydney’s auction clearance rate beginning to trend lower over recent weeks, the city was still the strongest performer over the three month period, followed closely by Melbourne.</p>
<p><a href="/images/2015/09/03/WinterClearance.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/03/WinterClearance.jpg" alt="" width="815" height="136"></p>
<p><span>Across <strong>Melbourne</strong> this week, 1,007 auctions are scheduled. Melbourne’s clearance rate last week was 76.7% across 1,188 auctions, having increased from 74.3% across 964 auctions the previous week. At the same time last year, 73.5 % of the 901 auctions held were successful.</span></p>
<p><span>Auction volumes are set to fall across <strong>Sydney</strong> this week, with 1,030 homes scheduled for auction. Last week, 1,106 Sydney homes were taken to auction. Sydney recorded its lowest clearance rate for the year last week, with just 75.1% of auctions successful.</span></p>
<p><span>Across <strong>Brisbane</strong>, 139 auctions are scheduled this week, compared to 169 last week and 143 the previous week. Last week Brisbane’s clearance rate fell slightly from 54.5% the previous week to 54.2%.</span></p>
<p><span>There are 68 <strong>Adelaide</strong> homes being taken to auction this week, much lower than the number held last week (102). Last week, 58.1% of Adelaide auctions were successful which, given recent performance, is a weak result for the city.</span></p>
<p><span>In <strong>Canberra</strong>, CoreLogic RP Data is currently tracking 53 auctions, similar to last week when 47 Canberra auctions were held, but lower than at the same time last year (69).</span></p>
<p><span>There are currently 29 <strong>Perth</strong> auctions scheduled this week, down from 34 auctions last week.</span></p>
<p><span>St Kilda in Victoria has the highest volume of auctions scheduled for any one individual suburb this week, with 18 properties set to go under the hammer, followed by South Yarra, also in Victoria, with 17 auctions scheduled.</span></p>
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Volumes stay high for first week of spring: CoreLogic RP Data's Shana Miller

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<p>Cities are ever changing environments that are continuously evolving and they reflect the varied and always developing needs of the population.</p>
<p>The complexity of the population is naturally reflected in the make-up of the housing market and while fashions change, our underlying housing preferences appear to be somewhat more rigid than might be expected. And so the question will always be – are we matching demand and how we market to this audience<em>? </em></p>
<p>It appears that at times we have a disconnection between where we live and where we would like to live. Work, family, finances and lifestyle balance all play their part, alongside our national, still very dominant desire to have our own homes. This area is still driven by emotion and aspiration. There’s a lot of emotion in almost all parts of the housing market and the desire for homeownership is also closely tied to a feeling of achievement, personal growth and self-worth.</p>
<p>In almost any casual conversation we are often asked, where do you live? And where do you work and what do you do? Where we live in particular is very much seen as part of who we are, and so the character of the housing market is a constant source of fascination.</p>
<p><strong>A Large House Near The City</strong></p>
<p>In research published by the Grattan Institute, a large house near the city was seen as the most desirable goal for many people, but the actual structure of our housing market is somewhat different.</p>
<p>Homeownership is falling, and the numbers of people renting is on the rise. Both trends were evident. When measured in the last census in 2011, homeowners (either owned or with a mortgage) was around 67%, and rental accommodation sat around 29.6%, but the falling trend among homeowners has been constant and was closer to 75% in the 1960’s.</p>
<p>At the same time rents and mortgage repayments have been on the constant increase, and one particular measure remains on an upward trend and that’s the number of households where rent or mortgage payments are taking more than 30% of incomes, with rents at 10.4% and mortgage loan repayments at 9.9%. It’s a trend that the 2016 census is bound to see continue as house prices have increased over recent years.</p>
<p>There’s also a link between the size of families and their incomes and the ability to buy a home. Couples and sole parents with children account for 60.5% of households with both parents being employed either full or part-time making up 25.4%, with only 15.7% being households with just one parent working full-time, and even less with one parent in part-time employment at just 5.4% supporting the household.</p>
<p><strong>Most of Us Still Live in Detached Homes</strong></p>
<p>Where we live and the impact that has on household size and the importance of location also shows some related trends. As the figures above might help reinforce, families are more concerned about the size of a home.</p>
<p>The split is currently 75.6% living in detached homes, but that figure is gradually falling, 9.9% then live in semi-detached and 13.6% in apartments, with both are on an upward trend. The fall in the numbers of people living in detached homes is shown by the fact that in 1976 the figure stood at 78%, and while the decline is not huge, it’s now a constant trend and may well be more marked with recent trends towards the popularity of apartments.</p>
<p>What is somewhat a surprise is that evidence points to the popularity and demand for medium density housing, in reality the supply of semi-detached homes and townhouses has been falling way behind demand. Medium density sits somewhere between high-rise apartment living and the larger more traditional detached home and this would help explain, not surprisingly why these homes are so popular. And when it comes to size, we see that 3-bedroom and 4-bedroom homes together account for 73.9% of housing stock, with the demand for 4-bedroom homes on the increase.</p>
<p><strong>When Location Is Key</strong></p>
<p>While for families home size and the number of bedrooms are the most important factors, location is much more important as we get older and it’s also the same for singles.</p>
<p>While families are concerned about house size, as we get older we look for closer connections to work, being closer to family and facilities like transport, and the same goes for singles as they look for wider community connections. For these groups a central or CBD location and all that it entails is driving demand and pushing prices as sites are absorbed.</p>
<p>Then we also find that across all groups affordability always comes into the picture. This will then influence size, condition, access to transport and the key suburbs people are most attracted to. Our housing preferences are well-established but changing.</p>
<p>However as is clearly demonstrated by some of the shortages being experienced in Sydney, meeting all aspects of household demand isn’t easy. There are many layers that add time, cost and complexity to meeting demand. Finding suitable sites in very popular areas, the time to deliver the finished projects, planning delays and the costs involved will explain why in some markets demand is not being met.</p>
<p>Demand is being seen from the inner-city to major new growth regions on the city fringe. Then some housing preferences, like the demand for more mid-range medium density housing may be falling short. There’s a fine balance between location, cost and size that all buyers have to navigate when making a choice of where to live, and prices are reflecting the key areas of demand.</p>
<p><em>Peter Chittenden is managing director for residential of Colliers International. He can be contacted <a href="https://www.projectagenda.com.au/" target="_blank">here</a>.</em></p>
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Where we like to live: Peter Chittenden

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<div>Total housing finance came in at a seasonally adjusted $32.8 billion in July, which represented a 1.5% increase on the June result - following on from a 3.6% increase in June - but remained slightly below the record high of $33.1 billion seen in April this year.</div>
<div> </div>
<div>On a trend basis total housing finance ticked up to a new high of $32.6 billion to be 15% higher than one year ago.</div>
<p><a href="/images/2015/09/10/HF1.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/10/HF1.jpg" alt=""></p>
<div>Investment loans increased moderately to $13.6 billion in July, but this was also slightly below the April high of $14 billion, suggesting that APRA's cooling measures are beginning to take hold.</div>
<div> </div>
<div>On a rolling annual basis investment loans have continued to shoot the lights out through an unprecedented surge, with investors accounting for more than half of loans written excluding refinancing.</div>
<div> </div>
<div>Although this is inevitably forcing prices higher in some cities, we are now increasingly seeing more landlords than prospective renters in some locations, and rents in these locations will stagnate or fall.</div>
<div> </div>
<div><a href="/images/2015/09/10/HF2.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2015/09/10/HF2.jpg" alt=""></div>
<p> </p>
<div><strong><span style="text-decoration: underline;">State versus state</span></strong></div>
<div> </div>
<div>At the state level there were increases in owner-occupier commitments in most states and territories in seasonally adjusted terms in July, but declines were seen in the Northern Territory and the ACT.</div>
<div> </div>
<div>Driven by a fear of missing out, Sydney homebuyers are thrusting New South Wales loan values off the top of the chart with more than $73 billion of lending over the past year. A huge boom.<br><br>With APRA measures dialling back riskier investment lending as sure as night follows day lenders will be targeting homebuyers, with home loan products now available from interest rates of around just 4%. </div>
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<div><a href="/images/2015/09/10/HF3.jpg" target="_blank">Click to enlarge</a></div>
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<div class="separator"><img src="/images/2015/09/10/HF3.jpg" alt=""></div>
<p><span style="line-height: 1.3em;">Brisbane's owner-occupier commitments have continued their studious recovery, with loan values at the state level ticking up to their highest level since March 2010 on a 12mMA basis, although mining and resources regions are continuing to weigh heavy acting as a drag on the state data. </span></p>
<p><a href="/images/2015/09/10/hf4.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2015/09/10/hf4.jpg" alt=""> </p>
<div>As for New South Wales in July, at $7.5 billion of owner-occupier commitments in July there has never another month like it it any state or territory, with commitnents accelerating to be tracking an enormous 28% higher than one year go.</div>
<p><a href="/images/2015/09/10/HF5.jpg" target="_blank">Click to enlarge</a></p>
<div class="separator"><img src="/images/2015/09/10/HF5.jpg" alt=""></div>
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<div>The incredible Sydney property boom evidently has some steam left in it yet.<br><br>
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<div>Despite this apparently indefatigable Sydney largesse, with inflation and now total housing finance apparently both under control in recent months, any further increase in the unemployment rate is likely to be met with calls for further rate cuts.</div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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