Not all apartment amenities are immediately visible.

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.

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.

Online shopping has been one of the biggest drivers of that shift.

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.

For apartment residents, however, receiving those deliveries isn't always straightforward.

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.

Australia Post's Parcel Locker network is one response to that shift.

<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>

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.

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.

That growing presence reflects a broader change in how apartment buildings are being planned.

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.

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.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

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.

Joel Robinson

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

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.

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.

<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.

"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.

"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."

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.

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.

<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" />

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.

"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.

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.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

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.

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.

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.

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>

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>

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

Seasoned Victorian apartment developer <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a> has logged more than $400 million in sales in its luxury apartment project Palmera Residences at Northcliffe on the Gold Coast.&nbsp;

Central Equity Director Karl Kutner said the sales result reflected a combination of location, product quality and delivery certainty with the project already under construction by building powerhouse Multiplex.&nbsp;

"Surpassing $400 million in sales since launch is a significant milestone and an outstanding endorsement of <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera Residences</a>,” he said.&nbsp;

"We believe one of the key reasons for this strong result is the confidence purchasers have in knowing the project is under construction with Multiplex. Buyers are increasingly looking for certainty. They want to know that the project they commit to today will be delivered by an experienced team with a proven track record."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365782]

Kutner said it was clear there was still high demand for luxury projects that offered certainty of delivery.&nbsp;

“We are in a market where many residential developments have faced delays due to rising construction costs, labour shortages and financing challenges,” said Kutner.&nbsp;

"But having construction underway has provided our buyers with resounding confidence backed by more than 40 years of development delivery by Central Equity combined with construction by one of Australia's most respected construction companies."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365785]

Central Equity is one of Australia's most experienced privately-owned property developers. Over more than four decades, the company has delivered in excess of 85 residential developments including 10,000 apartments and many thousands of stand alone homes.&nbsp;

Located on Garfield Terrace at Northcliffe, between Surfers Paradise and Broadbeach, Palmera Residences occupies one of the Gold Coast's most sought after beachside locations. The development has been designed to appeal to owner occupiers seeking premium residences that combine generous living spaces and resort style amenities.&nbsp;

Palmera Residences will feature an exceptional collection of resort style amenities, including two swimming pools: a generously sized family pool with safe shallow zones for relaxed recreation, and a 20 metre lap pool positioned to maximise all day sunlight.&nbsp;

Residents will also enjoy exclusive access to wellness and recreational facilities including a magnesium pool, sauna, yoga studio, expansive fitted gymnasium, resident lounge, outdoor BBQ’s&nbsp;and indoor and outdoor dining areas, together with a dedicated concierge and luxurious hotel inspired entrance foyer.&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365767]

A unique feature at Palmera Residences has been designed to enhance the Gold Coast lifestyle which includes both indoor and outdoor gymnasium facilities, together with thoughtfully designed indoor and outdoor dining and entertaining areas. A corner café has also been incorporated to provide residents with a destination for their everyday needs.&nbsp;

Kutner said buyer demand had been broad based with purchasers attracted from interstate as well as throughout South East Queensland.&nbsp;

"We're seeing strong interest from owner occupiers, lifestyle buyers and people relocating to the Gold Coast. Many purchasers have been searching for a premium beachside residence where quality, design and delivery are equally important."&nbsp;

[smartcode_project:default project_id=108274 project_image_fid=365771]

Kutner said the sales milestone was an important achievement, but the focus remained firmly on delivering an exceptional development.&nbsp;

"While reaching $400 million in sales is an important milestone, our priority remains delivering a project that exceeds purchaser expectations,” he said.&nbsp;

"Palmera Residences has been designed to become one of the Gold Coast's landmark residential addresses, and we look forward to welcoming our purchasers to their new homes."&nbsp;

There are a limited number of residences remaining in selected configurations with pricing from $2,950,000 to $8,950,000. Palmera Residences is also crowned by expansive penthouses with wrap around views.

[smartcode_project_cta:default project_id=108274]

Construction certainty and strong buyer demand drive major sales result for luxury Gold Coast development

Palmera Residences fly out the door as sales pass $400 million

National property developer <a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has appointed BINAH as its construction partner for Quartet, its new Brisbane apartment development in the undersupplied suburb of <a href="https://www.apartments.com.au/developments/milton-qld-4064">Milton</a>.

Located just two kilometres from the Brisbane CBD and moments from key 2032 Olympic precincts, <a href="https://www.apartments.com.au/new-apartments/quartet-milton-33-manning-street-milton-qld-4064">Quartet</a> will deliver 131 one, two, three, and four-bedroom apartments priced from $1 million to $4.2 million, combining elevated design with a wellness-focused lifestyle offering.&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=368000]

Goldfields’ Chief Executive Officer, Lachlan Thompson, said the appointment of <a href="https://www.apartments.com.au/builders/binah-constructions">BINAH</a> marked an important milestone for the project.&nbsp;

“Bringing BINAH on board as our construction partner will allow us to bring our vision for Quartet forward with a team that has a proven track record of delivering high-quality residential projects,” Thompson said.&nbsp;

“We’ve taken a considered approach to progressing the site because we wanted to deliver the whole package. Buyers ultimately back great developers, great projects and great builders, and with Quartet, we’ve made sure all three line up.

“People want certainty, they want to know the project will be built, that the homes will be delivered as promised, and that the developer stands behind the quality of what they create. That’s something Goldfields has built its reputation on over many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367993]

BINAH’s Managing Director, Khalil Hafza, said the company was proud to be partnering with Goldfields to deliver Quartet.&nbsp;

“Quartet is an exciting project to bring to life, particularly given the level of detail in the residences and the extensive rooftop amenity planned for the building,” Mr Hafza said.&nbsp;

“Our focus is on delivering a high-quality build that brings that design vision to life and creates homes residents will enjoy for many years.”&nbsp;

[smartcode_project:default project_id=108736 project_image_fid=367999]

The facilities at Quartet have been feared towards the roof, with a&nbsp;25 metre lap pool, spa, sauna and cold plunge, and a communal barbecue area and alfresco.

Town planning was designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and brought to life by Melbourne-based architecture firm Cera Stribley.

<a href="https://www.apartments.com.au/interior-designers/cera-stribley">Cera Stribley</a> Co-Founder and Managing Principal, Dom Cerantonio, said the project responds to both its riverside setting and Brisbane’s evolving urban character.&nbsp;

“Quartet has been designed to sit comfortably within its riverside context, offering a refined take on urban living through well-planned, generously proportioned residences that will stand the test of time,” Mr Cerantonio said.&nbsp;

“An emphasis on natural light, natural textures and carefully selected finishes from timber and marble to premium appliances, creates calm, considered interiors designed for comfort and long-term liveability.”&nbsp;

Construction of Quartet will commence in July 2026, with completion anticipated in Q4 2028.

[smartcode_project_cta:default project_id=108736]

Construction to commence on 131-residence tower designed around wellness-focused living

Goldfields appoints BINAH for Quartet apartments in Milton

The first partnership between national developer <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> and Adelaide-based developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> has made a strong start, with the pair securing $21 million in unconditional sales at <a href="https://www.apartments.com.au/new-apartments/one-four-four-hutt-adelaide-144-hutt-street-adelaide-sa-5000">One Four Four Hutt</a>&nbsp;on the edge of the Adelaide CBD.

Over a third of apartments have been snapped up in the boutique 44-apartment project on the corner of Hutt Stret and Wakefield Road. Local downsizers and owner-occupiers wanting to remain in Adelaide's tightly-held southeast quarter have been the most prominent purchasers.

The DKO-designed, mixed-use development is one of the few new apartment projects in the precinct, an area where new housing supply has remained limited despite continued demand from buyers wanting to stay close to the CBD, Victoria Park and Adelaide's established east-end amenities.

[smartcode_project:default project_id=151233 project_image_fid=375378]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

"The level of early commitment reflects the confidence local buyers have in the Hutt Street precinct," Dendrinos said.

"Many purchasers are long-term east-end residents who love the area and want to stay connected to the neighbourhood. They recognise the value of a well-designed, well-located development.

"Our partnership with Otello has been central to this success, and the number of unconditional sales at this stage only strengthens our confidence in the South Australian market."

[smartcode_project:default project_id=151233 project_image_fid=375379]

Otello Director Daniel Harris said the sales result also highlighted the lack of new apartment opportunities within the Hutt Street precinct.

"One Four Four Hutt has clearly resonated with buyers, with strong early sales reflecting both the appeal of the Hutt Street corridor and the lifestyle on offer," Harris said.

"The activated ground-floor retail has also been a key drawcard, with purchasers responding to the vision of a more vibrant and connected streetscape, not just the residences themselves."

One Four Four Hutt will deliver 44 one, two and three-bedroom apartments, alongside a collection of penthouses, above a ground-floor retail offering designed to further activate the Hutt Street precinct.

Construction is scheduled to commence in the third quarter of this year, with completion anticipated in 2028.

[smartcode_project_cta:default project_id=151233]

Fortis Head of Development SA Arthur Dendrinos said the early sales reflected both the strength of the local owner-occupier market and confidence in the Hutt Street location.

Fortis makes Adelaide debut with Otello as One Four Four Hutt records strong early sales

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

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

The ACT will become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, with no income caps and no property price thresholds from 1 July.

The move, announced as part of the ACT Budget, completes a key election commitment from the Barr Government and removes what Chief Minister Andrew Barr described as one of the biggest barriers to entering the housing market. The reform forms part of the ACT's long-running transition away from transaction taxes and towards a broader-based property tax system.

"This budget marks a major milestone in our long-term tax reform program," Barr said, adding that the government had maintained a sustained focus on removing barriers to home ownership. He said stamp duty had long been one of the largest upfront hurdles facing buyers and that from July, "that barrier is gone" for first home buyers in the Territory.

[smartcode_project:default project_id=139989 project_image_fid=350986]

The changes come alongside a range of measures designed to encourage new housing supply, including support for the delivery of so-called "missing middle" housing such as terraces, townhouses and low-rise multi-unit developments.

The announcement has renewed debate around whether the ACT's approach could provide a blueprint for improving housing affordability nationally.

New research from OurTop10.com.au, conducted by Primara Research, suggests the Territory's decade-long reform agenda has produced outcomes unmatched elsewhere in Australia.

While stamp duty costs have increased by an average 67 per cent nationally over the past decade, the ACT has recorded growth of just 15 per cent, the lowest increase of any jurisdiction.

The Territory has also emerged as one of the strongest performers on housing delivery. Based on population-weighted housing targets, the ACT is sitting less than one per cent behind its target. Victoria is the next closest at seven per cent behind, while the national average sits 25 per cent below target. New South Wales is tracking 39 per cent behind.

The latest reform removes one of the final barriers facing first home buyers in Canberra.

[smartcode_project:default project_id=139989 project_image_fid=359152]

The average Australian home buyer currently pays $61,714 in stamp duty. In the ACT, that figure is $38,399 despite the Territory having the third-highest median house price in the country.

Until now, the ACT's first home buyer concession scheme only applied to purchases up to $1.02 million, around $51,000 below Canberra's median house price of $1.071 million. In practical terms, many first home buyers were unable to access the median-priced home without losing the concession.

From July, those restrictions disappear.

Every first home buyer in the ACT will pay no stamp duty, regardless of income or purchase price.

Canberra remains one of Australia's most expensive housing markets, with dwelling values increasing 82 per cent over the past decade. However, that growth ranks only 11th among Australia's 15 major housing markets, suggesting affordability pressures have been less severe than in many other parts of the country.

Simon Ma, CEO of OurTop10.com.au, said the latest reforms recognise that many first home buyers have simply outgrown thresholds set years ago.

"Many first home buyers aren't just looking for a way onto the ladder, they want a home their family can actually live in," Ma said.

"In a market where the median house price is over a million dollars, a concession scheme that cuts out at $1.02 million was never going to get them there.

"Removing the ceiling entirely means ACT first home buyers can now pursue the home they actually want, rather than limiting themselves to a price point designed for a very different market."

Whether other states follow remains to be seen. But at a time when most jurisdictions are struggling to improve affordability while also increasing housing supply, the ACT has quietly become the national test case for both.

15% stamp duty growth. Just 1% off the national housing target. Zero stamp duty for FHBs. Is the ACT the blueprint for the great Australian dream?

ACT abolishes stamp duty for first home buyers

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The ‘feel good’ furore surrounding Australia’s real estate market continues to grow.
In Melbourne, news that overall turnover is some 15% above that recorded this time last year and a collective year-to-date clearance rate of 69% has been welcome news for those that work in the real estate industry and make their money from promoting the ‘buy now’ mantra – a phrase that doesn’t carry as much weight when prices are flat or falling.
In annual terms, both owner-occupation and <a target="_blank" href="/?option=com_googlesearch_cse&amp;q=investment%20lending">investment lending</a> in Victoria have increased by 2.5% and 18.6% respectively – proving the attraction real estate continues to hold as an ‘appreciating’ asset.
We’re once again witnessing increased competition around favoured stock that motivates the old angst amongst buyers, of ‘get in quick before it’s too late’ – a feeling Melburnians are all too used to seeing in a heated auction atmosphere which, out of all the states, Victoria rules.
However, whilst the positive data has provided an interesting ‘told you so’ moment from some of our popular property commentators (who are again trying to convince us that property can continually go up in value and effectively double in a time span of  anywhere between 7 – 10 years, depending on their stance) there is plenty of data that should pose a warning for those thinking we’re simply back in the same cyclical atmosphere which leads us through the ebb and flow of the oft-quoted ‘property clock’ where growth can forever outpace the rate of inflation.
John Edwards from Residex was one voice to highlight that sales transactions remain very low nationally, with January and February’s data <a target="_blank" href="/#more-3121">“the lowest seen on an Australia-wide basis since 1999.”</a>
This is a concern, because whilst the population continues to expand and new households inevitably form, we once again have to yearn for an improvement in the construction sector for any indication that the trend of demand to live and invest in established urban areas – which has played a part in disproportionately inflating capital city values – can be moderated through de-centralisation, the process of which is hopelessly hamstrung due to lack of investment in outer suburban infrastructure and ‘inelastic’ policy responses to demand/supply factors.
Notwithstanding, considering our relatively short-term existence, it’s easy to view Australia’s recent inflationary history as the ‘norm’ – imagining the patterns witnessed over a lifespan can repeat ‘forever more.’
Such is the claim of property investors who have ‘lived’ through 2 or 3 ‘cycles’ and foresee a future not much different from their immediate past.
However, if you delve back into the long-term history of house prices, it’s clear how the past 50 years is completely new in relation to the decades that preceded the hearty capital gains we’ve grown accustomed to achieving – gains which hit their peak in 2010 and are once again on the road to recovery – and gains which have shown a disproportionate inflationary trend which could never have eventuated from population growth alone.
Rather our recent historical gains have been primarily fuelled through a massive burden of private debt conjured up through the ‘magic money tree’ of liberal bank lending – far outside of the fabled deposit ratios we were fooled into believing in high-school economics.
I’ve previously written about the <a href="https://www.propertyobserver.com.au/residential/the-centuries-old-crystal-ball-that-proves-australia-s-housing-price-growth-cannot-outpace-inflation-forever/2012111957939/Page-2?utm_campaign=observers&amp;utm_medium=aida&amp;utm_source=po" target="_blank">Herengracht</a> index which charts a 360 year history of house and rent growth along an established strip of prime real estate in Amsterdam; the results of which concluded that outside periodic market volatility caused by wars, famines, and population factors - prices didn’t stray far from the rate of inflation – in real terms, they remained broadly unchanged.
Once completed, the study prompted respected analyst Robert Shiller to conduct his own long-term analysis of USA house prices, after which he stated – pre-GFC (2006) – that we can’t use the past 20 years to predict the future 20 years – a longer time frame is necessary if we’re to establish how sustainable our inflationary environment really is. In 2006 Shiller commented:
“The news is not good for homeowners. According to our data, homeowners face substantial risk of much lower prices that could stay low for a long time after.”
 
<hr class="system-pagebreak">
Whilst Robert Shiller’s prophecy is currently playing out in the USA – although exaggerated due to their irresponsible and unregulated system of sub-prime lending, we’ve yet to see any significant or comparable effect on prices in Australia, outside of a relatively short-term blip in median data, amidst various government-imposed measures to keep stimulating (propping up) prices.
Notwithstanding, the trend that Eichholtz’s study on the Herengracht index and Shiller’s of USA prices highlighted, is consistent with other long-term data – most notably data collected and analysed by Nigel Stapledon from The Australian School of Business, who in 2010 put together a detailed paper charting the history of house prices in Australia between <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1711224">1880-2010</a>.
Stapledon gathered the information for his study from various sources – including early advertised price ranges in print media during periods in which more detailed information was unavailable.
He then spliced this together with more recent house price indexes, producing a paper which clearly highlights how unprecedented – on a broader time scale – the comparatively recent, and for the most part unbroken, price hikes in residential real estate outside the rate of CPI inflation, has been.
Click to enlarge
<a href="/images/stories/2013/04/cashmoreapril8one1thumb.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/04/cashmoreapril8one1.gif"></a>
 
Stapledon points out a series of seven ‘major economic cycles’ which include the two great depressions of the 1890s and 1930s, the gold rushes in the 1850s and 1860s, along with various and significant fluctuations in population growth throughout the analysed time scale.
Each played a part in the consequential boom and bust cycles to 1970, however when smoothed out, price growth to this date broadly tracked the rate of inflation changing little in real terms.
Even from 1970 to the most recent boom, prices stayed relatively stable, rising on average only 3% per annum.
However, the latest boom, which peaked in 2010, has dwarfed anything seen prior or since, and in this respect it’s worth quoting Stapledon in full:
“While much has been written about the excesses of the 1880s boom, in terms of magnitude of cyclical upswings in house prices, the price rises of the 1880s pale next to those of the last cycle starting in the 1990s. This last cycle has seen house prices rise by 111% in real terms versus, by comparison, a modest 33% in the 1880s.”
Yes – over the past 20 years, we’ve had the “mother of all property booms” in residential real estate and consequently, we have an asset class well suited to rampant speculation.
Property currently makes up 15% of the total value of assets held by Australian SMSFs and with the government threatening to dip its sticky fingers into super funds, along with evidence that median values are once again on the up, an increased move towards negative gearing is inevitable.
 
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As the Reserve Bank’s assistant governor Christopher Kent recently noted in his speech “Recent Developments in the Australian Housing Market”, investors need no longer fear any capital loss – effectively waving a 'go ahead, green flag' of encouragement to any still sitting on the sidelines whilst at the same time noting recent rises have been driven by “repeat-buyer owner-occupiers as well as investors.”
Potential first-home buyers suffer the unfortunate haphazard consequence of being born too late to enjoy the leverage party with <a href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;ved=0CEQQFjAA&amp;url=http%3A%2F%2Fwww.ratecity.com.au%2F&amp;ei=sS1eUY33G4Ghige1h4HYDg&amp;usg=AFQjCNGV8GPQJDyl6LzJtOHvOE6ic--M-A&amp;bvm=bv.44770516,d.aGc" target="_blank">RateCity</a> noting the average first-home buyer’s loan size has not only doubled in the past decade, but now sits almost three times higher than the level borrowed 15 years ago - a figure which is apparently 82% above the inflation-adjusted average loan size.
However, those thinking the past 20 years is a good enough cycle on which to base the next 20, best of luck to you because despite our buffers and to some extent fair economic management through a GFC environment, to expect the real price of residential real estate to continually rise outside the rate of inflation has its fate in a shaky end, as history will attest.
It’s easy to look across the expanse of ocean that separates us from both Europe and the USA and come up with a fairly academic case as to why ‘Australia is different’.  We have the mining sector, low unemployment, population growth, supply constraints, wage growth… all of which is used as evidence to calm would-be investors against any thought that we could suffer the same fate. The premise is, whilst we can continue to pay our debts and prop up consumer spending, it’s ‘all alright Jack’… or is it?
Prior to the GFC, any talk of regulation in banking was effectively brushed aside under the concept that policy was well equipped to deal with the resulting consequences.
However, changes which have been ushered in during the post-GFC environment are no buffer against price rises and arguably only offer limited security against a future which must by definition forever be bigger than the past in order to ensure continued capital growth (a needed reality to our current system of banking).
As Giovannu Dell’Ariccia – an advisor in the research department at the IMF – wrote last year, in a detailed paper entitled <a target="_blank" href="https://www.rba.gov.au/publications/confs/2012/dellariccia.pdf">“Property Prices and Bank Risk-taking”</a>, discussing the effectiveness of policy changes in light of the GFC:
“We should recognise at the onset that there is no silver bullet. Each policy entails costs and distortions. And effectiveness is limited by loopholes and implementation problems. Broad-reaching measures (such as a change in the monetary policy rate) are more difficult to circumvent but they typically involve greater costs. More targeted measures (such as maximum LTV ratios) may have more limited costs but they are challenged by loopholes, which may jeopardise their efficacy.”
His analysis is worth reading in full – primarily because it outlines how difficult it is to restrain credit when there is no “unifying theory of how banks behave over the business cycle and react to changes in asset prices, much less a theory about how banks react specifically to real estate market developments”.
Therefore, at the risk of being called a ‘nervous nelly’ – or worse still – a ‘doomsayer,’ reading recent reports that evidence a return to <a target="_blank" href="https://www.brokernews.com.au/news/breaking-news/are-we-witnessing-the-death-of-the-5-deposit-174052.aspx">‘no deposit’</a> lending and suggestions that <a target="_blank" href="https://www.brokernews.com.au/news/breaking-news/hypocrisy-in-loan-application-requirements-has-broker-fuming-174104.aspx?p=1">‘shonky’</a> practices still sit relatively ‘comfortably’ in our newly ‘regulated’ environment should cause concern.
Therefore, whilst increased confidence and rising medians along with ‘on the face of it’ good economic data can calm worries of an imminent crash, we are in no way immune. Retiring with a debt-free roof overhead is preferable. However, when it comes to investment, take my advice and remain well diversified.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
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catherinecashmore-6LXia3pPQj

Don't be made complacent by good recent economic data

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Hi Margaret,   
This is a question about the tax deductibility of break costs on an investment loan for an investment property. My husband and I had a fixed rate investment loan which we broke last financial year. I am wondering whether the break cost associated with this loan is tax deductible in the year it is incurred, or whether it has to be classed as a borrowing cost for tax purposes and deducted over a five-year period. Also, does it make a difference if the break cost was capitalised into the new refinanced loan?   
Thanks in Advance,   
Kirsten
 
Kirsten, one of the main reasons why someone breaks a fixed rate loan is because they can get a better <a target="_blank" href="?option=com_googlesearch_cse&amp;q=ask%20margaret">rate</a> elsewhere and so reduce their expenses, and this may be the reason why the tax office allows you to claim these costs completely in the year they are incurred.
In addition to this, the interest on the money you borrow to finance the $20,000 will also be deductible, but only while the property is used to produce income.  
Make sure that you have a complete record of the exact costs which you incurred and give it to your accountant in plenty of time to make the allowable claims.
 
Margaret Lomas is a best-selling author and writes and hosts the popularProperty Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News. She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Ask Margaret: When are my loan break costs tax deductible?

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Self-managed superfund trustees decreased their cash holdings in favour of fixed interest and direct property investments after rate cuts in the December 2012 quarter, according to the latest Multiport SMSF survey.
Cash holdings fell 1.9% to 24.5% of total SMSF investments over the December quarter while fixed interest holdings increased 0.6% to 11.2% and direct property investment went up 1.1%.
Property now makes up nearly a fifth of SMSF portfolios (18.9%) compared with 17.6% a year ago.
“With cash losing its appeal in the wake of two interest rate cuts for the quarter, SMSF trustees are looking for a new ‘safe’ home for their investments,” AMP’s Philip LaGreca says.
Growth in the allocation of funds to Australian equities by SMSFs was higher than expected over the calendar year. Most SMSF deposits are concentrated in ASX Top 20 companies which outperformed the All Ordinaries by 22% this year.
The survey looks at 1,900 funds, a sample of the SMSFs Multiport administers and the investments they held as of December 31 2012.
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awalsh-7Ub9EypybQ

SMSF holders move away from cash deposits after rate cuts

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Australian economists mostly agree that the Reserve Bank of Australia’s decision to <a href="/news">leave the cash rate on hold at 3% yesterday</a> likely signifies the end of any further rate cuts this year.
They tend to agree too that while the easing phase has come to an end, any cash rate increases are unlikely to happen again soon.
Commsec’s Craig James says, “With home prices and share prices lifting and global risks dissipating, the Reserve Bank would also be loath to keep super low interest rates in place too long”.
But he adds it’s too early for the RBA to be flagging potential rate hikes either later this year or early next year.
He says the easing bias is still appropriate both to highlight the risks that still exist in the global economy and to sustain momentum in the domestic economy.
Commsec expects the RBA will keep rates unchanged for the next six months and says there is a very small chance it will cut the rate again but this is becoming increasingly unlikely.
“If the Reserve Bank was to cut rates in the next few months it would likely be prompted by fresh global turmoil, especially combined with evidence of weaker US and Chinese growth, low domestic inflation and a high Australian dollar,” James says.
“An interest rate hike would only be contemplated if there were solid evidence of stronger US and Chinese economic growth, firmer domestic growth, greater confidence of a lift in investment outside the mining sector and greater upside risks for Australian inflation.”
HSBC chief economist Paul Bloxham described yesterday's rate-hold as “tactically dovish”.
He says given the high Australian dollar, it’s prudent for the RBA to be dovish, but that it doesn’t necessarily mean it will follow through with further cuts.
“With demand already picking up in the interest-rate sensitive sectors of the economy, we remain of the view that the easing phase is done,” Bloxham said
He offered no prediction of how long until the next cash rate increase.
ANZ said the easing bias is increasingly tactical with it increasingly unlikely that they will cut rates again.
ANZ expects the RBA will maintain its bias towards further easing if the non-mining economy does not pick more strongly but it probably won’t cut rates further.
“While we still view a rate cut mid-year as a distinct possibility, in part because this will follow the next read on businesses’ capital expenditure intentions, the chances of a cut occurring appear to have diminished. Nevertheless, we see little risk of a rate rise this year as some are predicting.”
 
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Economists agree RBA easing cycle may be over but increases to the cash rate not imminent

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Dwelling values across Australia's capital city markets rose 2.8% over the March quarter, the strongest result seen since March 2010, according to the RP Data-Rismark March Hedonic Home Value Index Results.
Values were up a strong 1.3% over March.
Every capital city recorded a rise in dwelling values over the month apart from Adelaide, which remained steady over March.
Perth recorded the highest level of growth over the month of March, with dwelling values increasing 3.4% to a median price of $479,000.
However Hobart was the best performing capital city over the quarter with an increase of 6.1% to $332,500 following a 2.5% increase over March.
It still remains the nation’s most affordable capital city market in terms of dwelling values.
Melbourne recorded a 2.5% rise in dwelling values over the quarter and a 0.8% rise over March with a median dwelling price of $475,000.
Sydney recorded a 3.4% rise over the quarter and a 1.5% rise over March and remains the most expensive capital city market, with a median dwelling price of $550,500.
The weakest property market was Adelaide, with values unchanged over March, and down 0.5% over the March quarter.
Adelaide is the only capital city to record a fall in values for the first three months of the year.
 
Year-on-year, the report shows that Darwin has experienced the greatest rise in value of 7.3%.
“The March 2013 result is one of the strongest we’ve seen over the three years since March 2010,” says Rismark International CEO Ben Skilbeck.
“Further, it was the strongest quarterly growth seen since the three month period ending May 2012,” says Skilbeck.
“Since the capital city housing market bottomed out at the end of May last year, we have seen dwelling values rise by 4.7% after falling by 7.4% from their market peak back in late 2010,” says RP Data research Director Tim Lawless.
Lawless says the most significant recoveries have been recorded across Darwin where values have risen 13.9% since bottoming out in January last year, and Perth where values are up 9.4% since November 2011.
“Both cities are recording rental growth higher than 10% year on year which is providing a significantly higher total return compared with other cities,” says Lawless.
According to the index - which factors in the gross yield as well as capital gains – Darwin is recording a year on year gross return of 13.9% and Perth is recording a total gross return of 10.6%.
“Both are significantly higher than the combined capitals average of 6.9% gross,” says Lawless.
The middle priced housing sector is continuing to show the healthiest market fundamentals.
Rismark’s Ben Skilbeck says the investor segment of the housing market is showing greater responsiveness to the low interest rate environment than the owner occupied segment.
“The gross capital city unit rental yields now at 4.9%, and a number of short term fixed rate loans also being offered at these levels, it’s not surprising to see investors responding to these conditions more quickly than owner occupiers,” says Skilbeck.
The report suggests that there are many indications that the housing market recovery will continue.
“Auction clearance rates haven’t been below 55% on any occasion so far this year, and over recent weeks the capital city weighted average clearance rate has been around the 60% mark with Melbourne and Sydney nudging the 70 mark,” says Lawless.
“RP Data’s Mortgage Index, which tracks activity across the RP Data mortgage platforms, reached levels not seen since August 2009, suggesting housing finance commitments are likely to show a decent lift when the ABS publishes the data for February and March later this year,” Lawless says.
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ntrotman-Et3xWpamVh

Capital city dwelling values record highest quarterly rise in three years: RP Data

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Around $3.5 billion of commercial property priced over $5 million changed hands over the first quarter of the year with A-REITs returning to the market, according to CBRE.
This is a 15% increase compared to the same time last year.
CBRE’s head of research for Australia, Stephen McNabb, says the data signals a healthy start to the calendar year.
Domestic investors were prominent over the quarter with the the level of domestic buying 33% higher in the first quarter  of 2013 when compared with  the March 2012 quarter.
However, foreign purchaser activity was down 31% for the quarter.
CBRE national director of capital markets Josh Cullen says the re-emergence of the domestic REIT’s seeking core investments across all property sectors was a positive sign for 2013. 
“In the past week alone we have received in excess of $4.5 billion worth of offers with the closure of sales campaigns for Raine Square in Perth and the GE Core portfolio,” says Cullen. 
“The local REIT’s are well positioned with both balance sheet and wholesale capacity to take advantage of quality offerings in the market place. Leveraging has reduced to around 26% from a peak of circa 40%, which would imply funding capacity of $6 billion if leverage moved back to a still conservative level of around 32%.”
A-REIT acquisitions are up by $1.4 billion over the year to March 27, 2013 compared to the previous year.  
A-REITs  have become net purchasers over the period.
Assuming 10% of the current $30 billion in super fund cash allocations was also directed to domestic property, CBRE estimates that some $3 billion in A-REIT and superannuation money could find its way into the property market. 
However, Cullen says one issue was the lack of quality stock openly available and this was expected to result in cap rate compression for core assets.
Around $14.3 billion in commercial sales have been reported for the 12 months to March 27,  a 1% increase compared with the $14.2 billion recorded in the year to March 2012.
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Commercial property sales up 15% in first three months of the year with A-REITS returning: CBRE

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Canberra house and unit vendors are offering slimmer discounts than their counterparts in other Australian capital cities in order to secure sales, according to the latest information from RP Data.
Figures for the week ending March 10 show Canberra units are selling for an average of 2.5% less than their initial asking price.
Houses in the Australian capital were selling for an average of 4.1% that their initial asking price – a figure matched by Darwin.
<img alt="rpdatavendordiscountingmarch14" height="357" width="470" src="/images/stories/2013/03/rpdatavendordiscountingmarch14.gif">
The rate of vendor discounting is the average percentage difference between the original listing price and the final selling price.
The statistics are calculated across results received by RP Data over the past week and include properties transacted over the past four weeks.
The data is based on private treaty sales only and records without a valid sale price have been excluded from the vendor discount analysis. The analysis also excludes results where there are less than 10 observations.
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po-LsXgBTHBmX

Canberra vendors discounting less than other capitals: RP Data

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Sydney units are spending an average of just 49 days on the market before being sold - a stark contrast to the much longer waits for units in Adelaide, Darwin and Brisbane - according to the latest information from RP Data.
The figures for the week ending March 3 show Adelaide units spend an average of 95 days on market, while Darwin units spend an average of 91 days on market and Brisbane 88 days.
There is less variation among Australian capitals when it comes to house sales, with Brisbane houses spending an average of 87 days on market and Canberra houses spending an average of 65 days on market.
<img height="363" width="470" src="/images/stories/2013/03/rpdataweeklymarch5timeonmarket.gif" alt="rpdataweeklymarch5timeonmarket">
'Time on market' (TOM) is the average number of days between when a property is first listed for sale and the contract date.
The statistics are calculated across results received by RP Data over the past week and include properties transacted over the past four weeks. The data is based on private treaty sales only and records without a valid sale price have been excluded from the vendor discount analysis.
The analysis also excludes results where there are less than 10 observations.
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Sydney units spending least time on market: RP Data

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Total construction work in Australia fell 0.1% in December, according to Australian Bureau of Statistics figures released yesterday, defying economists' more optimistic expectations.
It had been previously predicted construction jobs would rise by 1.5% for the quarter, but the results suggest the construction industries woes are not yet over.
The latest Australian Securities and Investment Commission statistics indicated the construction industry had the highest number of insolvencies in 2012, making up over a fifth of the total 10,632 companies.
Savanth Sebastian, market analyst at CommSec noted while construction work eased in the December quarter, work done was still up 11.9% on a year ago and just holding shy of the record highs reached in the September quarter.
"In addition September quarter construction was revised up from 1.7% to 1.9%," he said.
Commercial building work done rose by 2% in the December quarter with residential work up 1.7% while engineering work fell by 1.3%.
South Australia (down 9%) and Western Australia (down 7.5%) lead the declines.
"The modest decline in construction activity is hardly anything to be concerned about," Savanth Sebastain said.
"The weakness in the latest result was largely driven by the pullback in engineering activity driven by the mining services sector late last year and confined to Western Australia and South Australia.
"Given the subsequent improvement in Chinese activity and rebound in commodity prices some of the weaknesss in engineering activity would be reversed in coming months.
"Residential building work rose for the second straight quarter and while it is starting off a low base the improvements are certainly encouraging.
"The housing sector is showing signs of life given the low interest rate environment and the fundamentals remain sound for a healthy pickup in residential construction.
"Low interest rates, pent up housing demand, strong population growth, and low unemployment coupled with state and federal govenement grants should ensure that residential construction coninues to improve over the coming year," he said adding the Reserve Bank would be encouraged by the pickup in residential activity.
 
 
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jchancellor-FAypfDUnLy

Housing sector signs of life, but total construction work fell 0.1% in December: ABS

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After showing a consistent upwards trend, the proportion of homes selling at a loss across the country has eased over the final quarter of 2012.  Based on all dwelling sales over the December quarter 2012, 12.5% of all properties sold for less than their initial purchase price compared to 32.1% of homes selling for more than double their original purchase price.  The result highlights that many vendors continue to enjoy a significant profit on the sale of their home, with 45.1% of all home sales over the quarter realising a profit of more than 50% greater than the purchase price.

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As the above graph shows, the instance of homes selling at a loss has eased over recent months, but on an historic basis the trend remains at elevated levels.  On the other hand, the proportion of homes selling for more than double their purchase price is at low levels after trending lower over recent times.  The proportion of homes sold at a loss has eased from an historic high of 13.5% of all sales over the three months to September 2012.  Although 13.5% of properties sold at a loss over the September 2012 quarter, 30.9% of all homes still sold for more than double their initial purchase price.

The important thing to note with this data is that just because a person has sold at a loss it doesn’t necessarily indicate financial strain.  Some vendors are obviously willing to take a loss on the sale of their home if they are re-purchasing at what they perceive to be a lower price.  The most recent housing loan arrears figures published by the Reserve Bank showed that around 0.6% of all loans across the country were past 90 days due.  Nevertheless, there are regions across the country which are of concern because of the high proportion of homes selling at a loss.

Across individual capital city housing markets, the proportion of homes sold at a loss over the December quarter 2012 ranges from 5.3% of homes in Canberra and Darwin to 18.9% in Brisbane.  On the other hand, the instance of homes selling for more than double their initial purchase price was as high as 43.0% in Perth and as little as 26.4% in Sydney.  It is, of course, a concern that almost one in five homes sold in Brisbane over the quarter sold at a loss. However, the majority of homes still showed a profit on sale.  Across the combined capital cities, the instances of loss are much lower than those nationally.  Over the December 2012 quarter, 9.9% of capital city house sales were made at a loss, compared to 33.2% of sales at prices that were greater than double the original purchase price.

<a href="https://blog.rpdata.com/wp-content/uploads/2013/02/Capital-city-table.jpg" target="_blank"><img height="223" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/02/Capital-city-table.jpg" title="Capital city table" class="aligncenter size-full wp-image-1937" id="_x0000_i1026"></a>

Throughout non-capital city housing markets the instances of loss has been quite varied.  Coastal markets which are associated with tourism and were formerly popular with ‘sea changers’ have typically incurred the greatest proportion of loss-making home sales.  Conversely, regions linked to the mining and resource sector have typically been much less inclined to incur a significant loss on the sale of a home.

Queensland’s Gold Coast, Sunshine Coast and Far North (which includes Cairns) regions have recorded the greatest proportion of homes selling at a loss over the quarter.  These three regions have recorded 39.4%, 34.5% and 33.8% of homes respectively selling at a loss over the quarter.  Most of the other regions which have realised the greatest proportion of sales at a loss are prominent coastal housing markets.

<a href="https://blog.rpdata.com/wp-content/uploads/2013/02/Greatest-instance-of-loss-regional.jpg" target="_blank"><img height="402" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/02/Greatest-instance-of-loss-regional.jpg" title="Greatest instance of loss - regional" class="aligncenter size-full wp-image-1938" id="_x0000_i1027"></a>

Regional markets that are linked to the mining and resources sector have generally seen the lowest instances of loss over the quarter.  It is important to note that the turnover of stock in many of these regions is quite low due to limited housing stock across these markets.  The Far West region of New South Wales has recorded no sales at a loss over the quarter while Western Australia’s Pilbara region has only seen 2.3% of all sales at a loss and North Western New South Wales has recorded 4.3% of all home sales at a loss.

<a href="https://blog.rpdata.com/wp-content/uploads/2013/02/Lowest-instance-of-loss-regional.jpg" target="_blank"><img height="405" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/02/Lowest-instance-of-loss-regional.jpg" title="Lowest instance of loss - regional" class="aligncenter size-full wp-image-1939" id="_x0000_i1028"></a>

Overall, in certain areas there has been a high proportion of homes sold at a loss over the quarter. However, it is encouraging to see that the instances of loss broadly across the country is falling.  The regions most susceptible to losses are the coastal markets, which were very popular with ‘sea changers’ in the lead up to the financial crisis, as well as being popular locations for holiday homes.  As demand has fallen, vendors have had to significantly drop their prices in order to sell in these regions. This is reflected in the fact that certain markets are seeing a large proportion of homes selling at below their previous purchase price.  The better news is that there is not one region across Australia where the majority of sales are occurring at a price below the previous purchase and subsequently most vendors are realising some form of profit on the sale of their home.
Cameron Kusher is senior research analyst at <a rel="nofollow" href="https://www.myrp.com.au/" target="_blank">RP Data</a>.
Photo by John Nuttall, courtesty of Flickr
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