For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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Three more surplus government-owned property at Millers Point have been listed.
They are all on Kent Street including<a href="https://www.mcgrath.com.au/buy/house-millers-point-nsw-2000/257134/?searchID=49852710" target="_blank" style="line-height: 1.3em;"> 51 Kent Street</a> (pictured above), which is an 1855 terrace. 
The Georgian-style terrace is listed for 14 May auction through Peter Starr at McGrath Estate Agents.
The terraces at 39 and 49 Kent Street are also for sale. The 39 Kent Street was built for solicitor/politician Sir George Wigram Allen
The 47 Kent Street was auctioned last year at $1.64 million.
Properties sold late last year included 24, 28 and 32 Argyle Place fetching $2.3 million, $2.35 million and $2.15 million respectively.
The NSW government is proceeding with plans to sell the remaining 284 properties so funds can be reinvested back into the public housing system.
The government-owned properties in Millers Point secured a total of $21.9 million from the initial nine sales.
 
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jchancellor-FAypfDUnLy

Millers Point state government terrace sell-off resumes post-election

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Eastern suburb house rentals are Sydney's strongest rental market, in the most recent March quarter and historically, according to CoreLogic RP Data.
And they'd have to be to keep up for the land tax bills.
Sydney's northern beaches has the next strongest quarterly rental growth with its summer surge.
Click to open in new window:
<a href="/images/2015/04/10/sydney-april-13-one.jpg" target="_blank"><img src="/images/2015/04/10/sydney-april-13-one.jpg" alt=""></a>
<a href="/images/2015/04/10/sydney-april-13-two.jpg" target="_blank"><img src="/images/2015/04/10/sydney-april-13-two.jpg" alt=""></a>
Source: CoreLogic RP Data.
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po-LsXgBTHBmX

Eastern suburb house Sydney's strongest rental market: CoreLogic RP Data

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Property buyer's agent Pete Wargent gets a <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2015-04-15/housing-shortage-not-as-certain-as-we-think/6395326" target="_blank">zinging</a> from Michael Janda of ABC News today. No probs with that, I've been a long-time fan of Mike's work.
Below is my chart which initiated the debate on Sydney's housing shortage (or otherwise), which shows that over the past nine years, population growth in New South Wales has accelerated while dwelling completions have remained at or below their long run averages.
<img src="https://1.bp.blogspot.com/-Qyzz354APPQ/VRPWZSpyqyI/AAAAAAAAT-o/RgOP6BmiWes/s640/Dem9.jpg">
What Mike is arguing is that over the long run, New South Wales has built enough homes, and he has the <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2015-04-15/housing-shortage-not-as-certain-as-we-think/6395326" target="_blank">data</a> to back this up. 
Of course, in one sense this is inarguable - there aren't tens of thousands of people living on the streets in Sydney, so by definition the market has coped, and there is no easily quantifiable "housing shortage".
Housing markets are complex beasts, however, and my point is rather more nuanced.
In the simplest terms if Greater Sydney's population growth continues as it has been of late (<a href="https://petewargent.blogspot.com.au/2015/04/the-decline-of-regional-australia" target="_blank">massively outstripping regional New South Wales</a>), and as is projected, then based on historical dwelling completions data the market is likely stuffed, particularly at the granular level.
As I'll explore below, the reason is related to a mismatch of supply within Sydney's relatively confined boundaries.
<img src="https://4.bp.blogspot.com/-MxJUxCxWRI4/VRoinS4zV7I/AAAAAAAAUFc/c3Oq6k4IoXI/s640/RPG.jpg">
As alluded to above, the notion of a housing shortage is something of a nebulous concept, but here are three shortages that I believe do exist.
Shortage 1 - Land available for development
Over the past six years, in aggregate residential land values in New South Wales have increased by <a href="https://petewargent.blogspot.com.au/2015/02/sydney-land-it-goes-ballistic-supply-is" target="_blank">37%</a>.
<img src="https://3.bp.blogspot.com/--1QHYuB7c8Q/VS5BVDTdqTI/AAAAAAAAUkY/WuE-soJgDjA/s1600/Janda1.jpg">
But as Mike points out in his ABC piece, the use of averages can lead one to very average conclusions, and this figure disguises the intense pressure on Sydney's drip-fed land supply.
While regional Australia has generally only experienced benign land price inflation, lot prices in Sydney have been going ballistic, exploding <a href="https://petewargent.blogspot.com.au/2015/02/sydney-land-it-goes-ballistic-supply-is" target="_blank">19.7% higher in 2014</a>.
In some suburbs such as Kellyville land price inflation is bordering upon out of control, with prices rising 38.2% in 2014 alone, up to $912 per square metre. Median prices in Glenmore Park rose by 30.6%, in Riverstone by 20.2%, and in Pitt Town 26.4%. The median price of land in the south west soared by 25% to $350,000, while prices in Sydney's west, where lot sizes can be larger, rose by 8.3% to $410,500. Extrapolating existing trends Dr. Andrew Wilson of Domain Group expects Sydney's median land prices to increase by another $40,000 in 2015 until "the chronic undersupply of residential development land is effectively addressed". The system is not functioning as it should. Land supply in Sydney is in dire straits <a href="https://petewargent.blogspot.com.au/2015/02/sydney-land-it-goes-ballistic-supply-is" target="_blank">as I considered in more detail here</a>. Shortage 2 - Appropriate dwelling stock
Over FY14 Greater Sydney saw a measly 6,793 dwelling approvals in its inner suburbs, and only 18,610 in the middle ring suburbs (5 kilometres to 20 kilometres radius from the Central Business District).
There were a further 13,670 approvals in the outer and fringe suburbs, but as highlighted by the <a href="https://petewargent.blogspot.com.au/2014/05/rba-on-housing" target="_blank">Reserve Bank</a>, job density is increasing faster in the inner city areas, and thus so too is demand for residential property.
The <a href="https://petewargent.blogspot.com.au/2015/03/grattan" target="_blank">Grattan Institute</a> has arrived at similar conclusions highlighting how although nearly 60% of jobs are created with 10 kilometres of Australia's CBDs, the percentage of jobs which can be reached within 60 minutes by public transport quickly evaporates as one travels outward, making outer suburban living ever less desirable as traffic congestion increases.
The result, as found by both AHURI and the Reserve Bank, is that the <a href="https://petewargent.blogspot.com.au/2015/04/do-house-prices-rise-faster-close-to-cbd" target="_blank">gradient of house price growth</a> has remained skewed towards the inner Sydney suburbs, both over the long term and over the past decade.
Moreever, while there may be "enough" dwellings in aggregate, all that has really happened in terms of the supply response is that since 2010 we have been approving previously unthinkable volumes of "shoebox apartments" in high rise complexes (see the green line in the graphic below).
<img src="https://3.bp.blogspot.com/-rYuFPcmQ3MA/VS5Hj4AZMDI/AAAAAAAAUk4/SdbvE1Qyg00/s1600/Janda3.jpg">
Much of this stock is sold offshore to Asian investors, and in my opinion the underlying demand for it domestically is likely to be weak, both from tenants and home buyers. Meanwhile we are building far fewer houses, two-storey dwellings or stock which is actually like housing than was ever the case before.
The recent experiences of Melbourne suggest that this dynamic may not impact housing markets or housing affordability in the positive way that many expect.
Shortage 3 - A shortage of ideas
What I haven't seen any compelling evidence of is how Sydney is planning to absorb its projected 8 to 9 million population of 2061 effectively. 
<img src="https://4.bp.blogspot.com/-h-IfKvfV-qU/VS5Eb1zNC-I/AAAAAAAAUkk/qt1gvkZmEFg/s1600/Janda2.jpg">
I don't even know where to start with this as the numbers are mind-blowing. Are there realistic plans for public transport or infrastructure? Any encouragement for corporates to relocate their headquarters to regional centres? Or indeed, any genuine investment in regional employment growth at all?
I have believed for years that Sydney will end up as a housing affordability disaster zone, and while the property crash warnings keep coming as regularly as the tides at Bondi (or the traffic congestion reports from the Harbour Bridge), over the longer term I haven't yet seen anything to change my view.
That said, it's not all doom and gloom.
It's not so fashionable now that markets are so much tighter than they once were, but in times past it be said that a market "in equilibrium" should have a vacancy rate of 3% - and Sydney doesn't have anything like that yet, <a href="https://petewargent.blogspot.com.au/2015/04/vacancy-rates-rise-in-darwin-and-perth" target="_blank">sitting at just 1.6%</a>.
<img src="https://4.bp.blogspot.com/-QWGY4ErVhvQ/VRcVTWnxWDI/AAAAAAAAUB4/_7ftk2qsucA/s640/SQM%2Bvr.jpg">
However, vacancy rates are finally being nudged higher around a few key construction hubs, which will ultimately put upwards pressure on apartment vacancy rates and an equivalent downwards pressure on unit rents.
These include certain suburbs in the inner west (Erskineville), the inner south (Mascot, Green Square), north Sydney (Chatswood, North Sydney), and the surrounds of Olympic Park (Homebush Bay, Rhodes), to name a few.
In that sense, then, there is no actual "shortage" of dwellings, which I think on balance is Mike's point - in a downturn some of these investor hotspots could get clobbered, leading in turn to unanticipated adverse outcomes through the wider market.
The wrap
Mike is also correct that the current boom is now being led by demand. No arguments there, it's been largely an investor-led phenomenon through this cycle, although the latest data suggested that owner-occupiers are now gearing up due to a fear of missing out.
 <img src="https://3.bp.blogspot.com/-UP8AnS5iB2Q/VS5RmaVyEqI/AAAAAAAAUlI/tDnWAGJsvjM/s1600/LF1.jpg"> 
Supply can tackle housing affordability over the longer term, though I'm not convinced of how effective this will be. Over the shorter term only restricting credit and curbing or discouraging demand can work quickly. Over to APRA.
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>.
His book '<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>' is out now.
 
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pwargent-M4siyDbqQY

Sydney's housing shortage is about a mismatch of supply: Pete Wargent

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Just 2.4% of Sydney resales in the December quarter made a loss, according to CoreLogic RP Data.
The effects of Sydney's boom seemed to fade at the edges of the city. Central Coast regions Wyong (6.8%) and Gosford (6.0%) recorded the highest proportions of loss-making resales of any Sydney region (CoreLogic RP Data includes Central Coast suburbs in its Sydney analyses). Pittwater also recorded a 6% loss rate.
Just two council areas had a 100% success rate over the quarter: Hunters Hill and Botany Bay.
In the latest Pain and Gain report, CoreLogic RP Data noted that the chance of making a gross profit increased with a home's holding time. Profit-making properties were held by the vendors by an average of 10.2 years, and homes that sold for over double their purchase price were held of an average of 16.8 years.
In Hunters Hill, the average hold period for homes sold in the December quarter was 10.5 years. The median profit made on resales was $680,000.
Similarly, the average hold period for a Botany Bay house sold in the final 2014 quarter was 11.3 years. The median profit there was more modest, at $299,500.
Botany Bay
The Botany Bay council region includes Botany, Botany Bay, Banksmeadow, Daceyville, Eastgardens, Eastlakes, Hillsdale, Mascot, Matraville, Pagewood and Rosebery.
The median price of a <a href="/news">Botany</a> house was $971,500 in January 2015, according to CoreLogic RP Data, while the median unit price was $700,000.
The vendors of <a href="https://www.realestate.com.au/property-house-nsw-botany-118577511" target="_blank">29 Brighton Street in Botany</a> (pictured above) sold it for $865,000 in December last year. They paid $525,000 for the three bedroom house in September 2007, with last year's sale resulting in a gross profit of $340,000.
<a href="https://www.realestate.com.au/property-house-nsw-botany-118926799" target="_blank">6 Livingstone Avenue in Botany</a> was another property that sold for a gross profit recently.<img src="/images/2015/04/10/Picture%2046.png" alt="" style="font-size: 12.1599998474121px; line-height: 1.3em;">
Source: CoreLogic RP Data
In February, the property sold for $1,175,000 after being held for 36 years by the vendors, who purchased the home for just $42,500 in 1979.
Hunters Hill
The Hunters Hill local government area includes Henley, Hunters Hill, Huntleys Cove, Huntleys Point and Woolwich.
Houses in the suburb of <a href="/news">Hunters Hill</a> sold for a media price of $1,909,000 in January 2015, while units sold for a median price of $1,085,000.
<a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-118110583" target="_blank">62 Park Road in Hunters Hill</a> sold for $1,890,000 in November. The vendors paid $410,000 for the character home on a 803 square metre block in 1992. Over their 22 years of ownership, the home's value increased by 361%.
The vendors of <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-118164419" target="_blank">42 Bonnefin Road in Hunters Hill</a> held their home for a much shorter time, selling it in November 2014 after five years of ownership.
The two storey home sold for $1.89 million late last year. The vendors paid $1,585,000 in December 2009, with last year's sale resulting in a gross profit of $305,000.
Almost a third of Sydney homes sold in the December quarter sold at least double their purchase price.
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jrichardson-uRX5hFdKfN

Hunters Hill and Botany Bay sales have 100% success rate in December quarter: CoreLogic RP Data

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It's the Central Coast's surprise $70,000 block of land auction.
The vacant residential land holding is at Spencer, about 30 minutes off the M1 near Gosford.
There is a $70,000 plus estimate for its 12 April auction.
Set 20 minutes by boat from Brooklyn, Spencer is a small community on the banks of the Hawkesbury River.
The elevated half acre block is 300 metre from boat facilities.
The sloping 2,169 square metre block with bushland district views.
"All this for the price of an inner city car space," <a href="https://www.mcgrath.com.au/buy/land-spencer-nsw-2775/257062/?searchID=49296383" target="_blank">its McGrath listing agent Tim Eaton said</a>.
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Central Coast's surprise $70,000 block of land auction at Spencer

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Household consumption – three-fifths of gross state product – strengthened noticeably in NSW over 2014 (+4.1% year on year) alongside faster growth in household income and dwelling prices.
FIGURE 1. POSITIVE GROWTH OUTLOOK FOR NSW
<img src="/images/2015/03/24/anz-mar-24-one.jpg" alt=""> Source: ABS, ANZ Research
Discretionary spending, which is particularly sensitive to the economic cycle, grew strongly over 2014 (Figure 2). Spending on household goods strengthened in line with the pick-up in dwelling construction. Discretionary spending on services – recreation activities and hotels, cafés, and restaurants – also increased significantly over the year.
FIGURE 2. DISCRETIONARY HOUSEHOLD SPENDING HAS STRENGTHENED
<img src="/images/2015/03/24/anz-mar-24-two.jpg" alt=""> Source: ABS, ANZ Research
Consumer spending growth may be less robust this year as labour market conditions outside of Sydney remain challenging (see below) and house price growth is expected to moderate somewhat – retail sales growth in NSW has slowed considerably over the past six months or so (Figure 3). Nevertheless, strong population growth will provide ongoing support to spending and the lower currency will also direct a larger proportion of spending to local businesses.
FIGURE 3. NSW RETAIL SALES AND SYDNEY DWELLING PRICES
<img src="/images/2015/03/24/anz-mar-24-three.jpg" alt=""> Source: ABS, Core Logic RP Data, ANZ Research
INVESTMENT HAS BEEN WEAK OUTSIDE OF HOUSING
Dwelling investment in NSW has grown significantly over the past couple of years following a prolonged period of very low levels of building despite solid population growth (Figure 4). This has been driven by new housing construction, with renovations activity remaining subdued as it has nationwide. In contrast, business and public investment has been weak.
FIGURE 4. NON-RESIDENTIAL INVESTMENT HAS BEEN WEAK
<img src="/images/2015/03/24/anz-mar-24-four.jpg" alt=""> Source: ABS, ANZ Research
Residential construction is expected to grow further in the near term and then remain at a high level for a prolonged period (Figure 5). This would be very different to the typical boom-bust cycles in the past. This time, activity should continue to be supported by strong population growth, pent up demand, very low interest rates and ongoing house price growth in Sydney. Nevertheless, our analysis suggests that a sizeable net housing deficit will remain in NSW (Figure 6).
FIGURE 5. DWELLING INVESTMENT AND COMMENCEMENTS
<img src="/images/2015/03/24/anz-mar-24-five.jpg" alt=""> Source: ABS, ANZ Research
FIGURE 6. NSW HOUSING MARKET DEMAND AND SUPPLY
<img src="/images/2015/03/24/anz-mar-24-six.jpg" alt=""> Source: ABS, ANZ Research
In contrast to the strength in housing construction, business and public investment has been subdued in NSW. Equipment investment has been weak, like it has been nationwide and despite a substantial amount of non-residential building activity in and around the Sydney CBD, overall underlying non-residential construction in NSW declined by 8.1% year on year in 2014.
Falling mining investment has weighed on overall business investment (Figure 7). In contrast, non-mining capex has improved but the outlook remains very uncertain. Encouragingly, non-residential building approvals have risen to a high level and the pipeline of public engineering construction remains healthy despite the equivalent private pipeline weakening (Figures 8 &amp; 9). Office market fundamentals have begun to improve as well.
FIGURE 7. NSW CAPEX &amp; EXPECTATIONS
<img src="/images/2015/03/24/anz-mar-24-seven.jpg" alt=""> Source: ABS, ANZ Research
FIGURE 8. PRIVATE NON-RESIDENTIAL BUILDING APPROVALS
<img src="/images/2015/03/24/anz-mar-24-eight.jpg" alt=""> Source: ABS, ANZ Research
FIGURE 9. NSW ENGINEERING WORK YET TO BE DONE
<img src="/images/2015/03/24/anz-mar-24-nine.jpg" alt=""> Source: ABS, ANZ Research
This article continues on the next page. Please click below.
<hr class="system-pagebreak">
INFRASTRUCTURE SPENDING COULD HANG IN THE BALANCE
The NSW government has proposed a large pipeline of public infrastructure projects in recent years, particularly roads, highways, bridges and rail. Of critical importance is the impact that the upcoming election will have on the Government’s infrastructure plans.
The current pipeline of projects under construction and committed to in the Budget will go ahead under a Labor government. But Labor will not commit to stage 3 of WestConnex, a tunnel designed to link the planned M5 East tunnel at St Peters to the future M4 East tunnel near Rozelle. Moreover, the building of a second harbour rail crossing would not begin until 2022 under Labor (it is slated for construction as early as 2017 under LNP). The Coalition has tied $11.3 billion to urban roads and urban public transport, $4.1 billion for regional transport, and $3.5 billion for social infrastructure projects to the proposed asset sales.
Labor has committed around $10 billion less than the Liberal National Coalition to infrastructure as it is opposed to the ‘poles &amp; wires’ privatisation and has a reluctance to increase debt.
FIGURE 10. NSW MAJOR PROJECTS PIPELINE
<img src="/images/2015/03/24/anz-mar-24-ten.jpg" alt=""> Source: BREE, company reports, Deloitte Access Economics, Infrastructure NSW, state government budget papers, ANZ Research
LABOUR MARKET DATA POINTS TO A DIVERGENT ECONOMY
Labour market conditions have been weak outside of Sydney. While the unemployment rate in Sydney has remained within earshot of 5% for some time, the regional unemployment rate has risen sharply to nearly 8% (Figure 11). This will reflect mining-related weakness in some regions but also the lack of property boom seen in Sydney.
FIGURE 11. LABOUR MARKET CONDITIONS ARE WEAK OUTSIDE OF SYDNEY
<img src="/images/2015/03/24/anz-mar-24-eleven.jpg" alt=""> Source: ABS, ANZ Research
THE HOUSING MARKET
The Sydney housing market is very strong. The median dwelling price has risen 30% since January 2013 and sales activity has picked up strongly. Housing investor activity in NSW has been much more pronounced than in other states (Figure 12). Foreign investment has also been strong. In contrast to the Sydney market, regional NSW house price growth has been more moderate (Figure 13).
While Sydney dwelling prices now look to be around fair value, we see further gains of around 8-10% over 2015 amid low interest rates and as demand continues to outstrip supply.
FIGURE 12. HOUSING INVESTOR ACTIVITY VERY STRONG IN NSW
<img src="/images/2015/03/24/anz-mar-24-twelve.jpg" alt=""> Source: ABS, ANZ Research
FIGURE 13. HOUSE PRICE GROWTH MUCH SLOWER OUTSIDE OF SYDNEY
<img src="/images/2015/03/24/anz-mar-24-thirteen.jpg" alt=""> Source: Core Logic RP Data, ANZ Research
THE BUDGET OUTLOOK – RIDING ON THE PROPERTY MARKET
Unlike other states and territories, NSW does not publish a fiscal outlook during the election campaign, which means it is more difficult to ascertain the most up-to-date fiscal outlook for the state.
However, it is expected the state will deliver strong revenue from residential turnover and rising house prices. Figure 14 shows that residential transfer duty has increased sharply after a brief slow-down in the first half of 2014.
FIGURE 14. NEW SOUTH WALES TRANSFER DUTY
<img src="/images/2015/03/24/anz-mar-24-fourteen.jpg" alt=""> Source: NSW Government, ANZ Research
The outlook for housing turnover and house prices suggests that the NSW Government should benefit from elevated levels of residential transfer duty for some time. An easing policy cycle and strong house price growth will continue to spur existing property turnover and encourage the construction of new housing.
The mid-year review revised up the government’s expectations for residential turnover growth to 12% in 2014-15, driven mainly by higher house prices. Given the recent rate cut by the RBA and the expectation for a further cut next month, we would not be surprised if annual growth in residential transfer duty for 2014-15 exceeds this forecast.
The cyclical nature of the government’s own-source taxation revenue means that it needs stable funding to execute long-term infrastructure upgrades. Asset recycling is one way to go about this.
Neither party’s fiscal plans imply deterioration to the AAA stable outlook from both major rating agencies.
NSW SEMI GOVERNMENT BONDS
The aftermath of the Queensland state election saw a significant repricing in the level of Semi government bonds to both the ACGB curve and the swap curve. Queensland Treasury Corporation (QTC) bonds widened by around 20bp in the 10 year part of the curve. NSWTC issues also seem to be affected by this dynamic. Investors have been concerned with the shifting sands of the Australian electorate and this has been reflected in the level of Semi government spreads. It has clearly been a negative for NSWTC, as the first state to face an election since the Queensland poll in late January.
As Figure 15 shows, the spread of NSWTC bonds to the ACGB curve is at the widest point since the Queensland election. This surprises us to an extent for a number of reasons. Firstly, the NSWTC credit rating is stable at AAA. In the case of Queensland, market expectations had priced bonds to reflect the probability that the LNP would be elected. Furthermore, one ratings agency continues to hold a negative outlook on Queensland’s rating.
NSWTC bonds have also come under pressure due to investor preference for the debt of the Supranational borrowing entities from Europe. These borrowers, such as Germany’s KfW and Rentenbank, as well as the European Investment bank (EIB), have seen a strong performance in recent months after the ECB announced they would be bought as part of the ECB’s QE program.
Domestic investors have been better overall sellers of Semi government bonds to buy the Supranational bonds given the yield pick-up and the potential for outperformance of these names.
We believe the underperformance in NSWTC bonds is unwarranted and that the recent widening of spreads would be arrested by a strong mandate for asset sales.
FIGURE 15. WIDENING OF NSWTC BONDS AGAINST THE COMMONWEALTH
<img src="/images/2015/03/24/anz-mar-24-fifteen.jpg" alt=""> Source: Bloomberg, ANZ Research
In the event of a strong election win for the incumbent government, we believe NSWTC bonds should tighten by 8-12bp against the ACGB curve. The borrowing requirements for NSW remain low, with $4.6 billion of term issuance for the FY 2014-15. Moreover, as outlined above, the NSW economy is in a robust position which should be reflected in the spread to other borrowers.
We also see the potential performance of the NSWTC index linked issuance. Much of the issuance of NSWTC’s index linked bond curve comes from electricity assets. In the event of asset sales, the need for this issuance would be reduced and should see the NSWTC index linked curve tighten against both the nominal and the ACGB curve.
FIGURE 16. WIDENING OF NSWTC LINKERS AGAINST THE COMMONWEALTH
<img src="/images/2015/03/24/anz-mar-24-sixteen.jpg" alt=""> Source: Bloomberg, ANZ Research
FIGURE 17. NSWTC INFLATION BREAKEVEN SPREAD
<img src="/images/2015/03/24/anz-mar-24-seventeen.jpg" alt=""> Source: Bloomberg, ANZ Research
Kirk Zammit is an economist with ANZ Research.
Justin Fabo is senior economist with ANZ Research.
Cherelle Murphy is senior economist with ANZ Research.
Martin Whetton is senior rates strategist with ANZ Research.
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Economy is strong, but little investment outside of housing: ANZ Research's NSW scorecard

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The heat of the apartment market in the Sydney suburb of St Leonards is apparent in new research from PRDnationwide when it comes to days on market.
Vendors only required 16 days on the market during the fourth quarter of 2014, down from 43 in the previous quarter and a high of 78 days in 2014's second quarter.
But the vendors appear to be over-reaching in price expectation, with the private treaty discount required to secure a sale going up in the December 2014 quarter. 
Rental yields appear to have peaked. 
<img src="/images/2015/03/26/st-leonards-mar-26-one.jpg" alt="">
<img src="/images/2015/03/26/st-leonards-mar-26-two.jpg" alt="">
<img src="/images/2015/03/26/st-leonards-mar-26-three.jpg" alt="">
Source: PRDNationwide
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Sharp drop in days on market in St Leonards: PRDNationwide

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Even if they are struggling to buy a house, Generation Y may have more of an impact on the property market than they think.
While many presume a link between the proximity of train stations and property values, research firm Onthehouse believes that the positive impact of railway infrastructure on property prices is amplified by the presence of so-called 'millennials'.
According to Onthehouse's research, suburbs with a train station generally recorded capital growth rates above the Sydney region's 10 year average. However, suburbs where the median age of residents was below 37 years – the national average – showed a stronger relationship between train stations and price growth.
In Lidcombe, for example, properties within a kilometre of Lidcombe station are valued 2.1% higher than those more than a kilometre from the station, according to Onthehouse. Eliza Owen, Onthehouse market analyst, noted that the suburb has a median age of 33, and more than 22% of the workforce are professionals.
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"Lidcombe is a great example of how millennials are driving up the change in property values in suburbs that have train stations," Owen said.
Onthehouse has picked seven suburbs to watch, based on upcoming rail construction. By 2019, planned railway developments will connect the north western suburbs to the Chatswood line.
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Source: Onthehouse.com.au
According to Owen, the new stations set for the seven suburbs will allow younger residents to access the CBD, and will create thousands of jobs.
"In Kellyville, the building and maintenance of the station, increased dwelling construction and new commercial establishments are expected to create over 3,000 jobs in the area. Whereas in Kingsford, where one third of the residents fall between 20-29 years old, the light rail is expected to be popular with young people and students travelling to the city for entertainment and work outside of study hours," she said.
The house at <a href="https://www.realestate.com.au/property-house-nsw-kellyville-119208983" target="_blank">28 Ikara Avenue in Kellyville</a> sold for $920,000 earlier this month. The three bedroom house on a 696 square metre plot has polished floorboards throughout and ducted air conditioning. Less than two years ago, in September 2012, the house sold for $580,000, reflecting 58.6% price growth in two years.
In mid July last year, it was advertised to rent at $550 per week. Assuming the rent has remained the same, the house sold at a 3.1% yield.
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Sydney's seven suburbs to watch guided by rail and millennials: Onthehouse

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GUEST OBSERVATION
It’s been widely reported that the coal mining industry is facing a <a href="https://www.smh.com.au/business/carbon-economy/coal-mining-downturn-to-be-prolonged-citi-20140812-1034fi" target="_blank">prolonged downturn</a>, with investment analysts at Citibank telling clients last year not to expect a rapid revival in thermal coal prices, while many Australian coal producers have posted <a href="https://www.theaustralian.com.au/business/latest/aust-coal-industry-facing-weaker-chinese-demand/story-e6frg90f-1227255476299">financial losses</a> in recent years.
That’s why it is surprising to learn of a recent spate of approvals for mine expansions in the coal heartlands of New South Wales. It seems that even in a downturn, the approvals process for new mines – at least in NSW – is continuing to move as fast as ever.
Those mine approvals will leave a lasting legacy. According to the NSW Auditor-General, as of 30 June 2012 there were about <a href="https://www.audit.nsw.gov.au/ArticleDocuments/255/27_Volume_Six_2012_Department_Trade_Investment_Regional_Infrastructure_Services.pdf.aspx?Embed=Y" target="_blank">573 derelict mine sites</a> in NSW (including gold and other minerals, as well as former coal mines). And only a small fraction of those <a href="https://www.resourcesandenergy.nsw.gov.au/miners-and-explorers/programs-and-initiatives/derelict" target="_blank">derelict mines</a> were being rehabilitated.
New mine approvals
Earlier this month, the NSW Planning Assessment Commission (PAC) gave a green light to Rio Tinto’s controversial <a href="https://www.smh.com.au/environment/rio-tinto-wins-planning-nod-for-controversial-warkworth-coal-mine-20150305-13vonn" target="_blank">Mount Thorley-Warkworth extension</a> in the Hunter Valley. The move follows the PAC’s decision last month to approve <a href="https://www.smh.com.au/environment/nsw-gives-green-light-to-two-big-coal-mine-expansions-20150202-1345lg" target="_blank">two other big coal mine expansions</a>, at Moolarben, near Mudgee, and Bengalla, near Muswellbrook.
In each case, the argument hinged on economic benefits, such as the direct and indirect spending associated with the project, the government royalties they will generate, and the jobs they will create and existing jobs they will secure.
The negative aspects of these developments, such as the impact on the local environment and communities, including the way regional landscapes are being scarred by huge holes in the ground, do not seem to have received the same consideration by the PAC and by most in the media.
In the case of <a href="https://www.yancoal.com.au/page/key-assets/mines/moolarben/" target="_blank">Yancoal’s expansion near Mudgee</a>, the <a href="https://www.pac.nsw.gov.au/Projects/tabid/77/ctl/viewreview/mid/462/pac/451/view/readonly/myctl/rev/Default.aspx" target="_blank">PAC acknowledged</a> that 1,534 hectares of land will be cleared (of which 123 hectares is deemed to contain endangered ecological communities).
Meanwhile, <a href="https://www.riotinto.com/copperandcoal/mount-thorley-warkworth-10427.aspx" target="_blank">Rio Tinto’s Mount Thorley Warkworth project</a> is expected to have a significant impact on the community of Bulga and its surrounding environment.
The rules on who’s responsible for mined land
In NSW all exploration and mining activity must be conducted in accordance with approvals under the Mining Act 1992 and the rehabilitation of mined land is therefore covered by law.
Resources and Energy (NSW Trade and Investment) has the responsibility for setting and assessing sustainable rehabilitation outcomes, and the industry must demonstrate to them “best practice ecological rehabilitation” of mined land if they are to recover their mine closure bond. There is therefore a strong financial incentive for miners to do a good job, as they must demonstrate that they have a plan for post-mining land use and mine closure when open-cut mining ceases.
Corinne Unger from the University of Queensland’s Centre for Mined Land Rehabilitation is among those to have raised the question of how Australia should be better managing the <a href="https://theconversation.com/what-should-we-do-with-australias-50-000-abandoned-mines-18197" target="_blank">50,000 abandoned mine sites</a> across the country.
There are more and more of these <a href="https://www.theherald.com.au/story/305968/poll-managing-holes-left-by-mines/" target="_blank">“final voids”</a> – typically meaning huge holes in the ground – being left as a legacy of both former and current opencut mining operations.
<a href="https://www.theherald.com.au/story/305968/poll-managing-holes-left-by-mines/" target="_blank">The Newcastle Herald</a> reported earlier this month that:
"Mining in the Hunter Valley could leave a legacy of more than 10,000 hectares of land consumed as “final voids”, or giant holes left by mines, prompting a push for the state government to investigate their cumulative impacts on the region’s water table and agriculture. The independent Planning Assessment Commission has urged the government to undertake the study, and branded as ‘‘unacceptable’’ mining giant Rio Tinto’s proposal for a 950-hectare final void at its Mount Thorley mine site – an area it notes is … about a sixth of Sydney Harbour.
"In advice issued to the commission, the Department of Planning has revealed it is “not aware of the total size” of existing and approved voids in the Hunter. But approval had been given for about 30 to be developed that on a “conservative estimate” would cover 7500 to 10,000 hectares," it said.
This has been a long-running issue. Back in 2005, a <a href="https://www.planning.nsw.gov.au/regional/pdf/final-draft1_5.pdf" target="_blank">NSW Department of Planning report</a> found that there would be more than two dozen of these large open holes left on the floor of the Hunter Valley, and that all would become “saline water sinks” without rehabilitation.
The question is: why aren’t these miners required to fill in their final voids as a matter of course, as part of the government-approved mine rehabilitation plan?
One word: cost.
As The Newcastle Herald has <a href="https://www.theherald.com.au/story/2932508/hunters-mining-moonscape-10000-hectares-of-holes/">also reported</a>, a Rio Tinto spokesman said that the final void left behind at the Mount Thorley-Warkworth mine “will be largely hidden from view due to the surrounding landscape and extensive rehabilitation works planned after mining”. But will it be completely filled in? No.
The NSW Department of Planning <a href="https://www.theherald.com.au/story/2932508/hunters-mining-moonscape-10000-hectares-of-holes/">has estimated</a> it would cost at least A$2 billion over the life of the mine to completely fill the void, and said it would “not be reasonable to impose a condition that requires Rio Tinto to completely or even partially backfill the final void”.
The NSW government has a wide range of legislated powers for regulating mine site rehabilitation, including setting environmental management and rehabilitation conditions, requiring rehabilitation security bonds and enforcement powers to ensure lease holders comply with their obligations.
But the regulators now accept that mine voids from current mines are to remain in the landscape once mining ceases, despite their legal responsibility to ensure that miners undertake best-practice rehabilitation, if they are to recover their bond monies.
It seems that rehabilitation of the final void is going a little too far in terms of “best-practice ecological rehabilitation” of mined lands. The cost to rehabilitate the final void should be borne by the industry that has earned income from digging up and selling the coal. It should no longer be acceptable to leave a large hole in the ground as a legacy.
Cleaning up the problem
Later this month, a <a href="https://www.uononlineshop.com/index.php/conference/conferences-events/tom-farrell-institute/mine-rehab-conference-2015" target="_blank">Best Practice Mine Rehabilitation Conference</a> is being held in Singleton, which will feature a panel discussion on the role that final voids could play in the landscape of the Hunter Valley.
In my view, this would not be needed if the industry and regulators were doing the right thing for the community and the environment by requiring that these features be filled in.
As the situation currently stands, the hundreds of mining holes that litter the Hunter Valley represent a significant financial liability to the state.
Very little government funding is available for their ongoing management, let alone their rehabilitation. In 2013-14, the NSW government allocated just A$4.276 million for the rehabilitation of derelict mines – and that amount fell in 2014-15 to <a href="https://www.resourcesandenergy.nsw.gov.au/miners-and-explorers/programs-and-initiatives/derelict">A$4.071 million</a>.
That’s a pittance of the A$1.5 billion that <a href="https://www.nswmining.com.au/getattachment/menu/Media/Publications/2014-15-NSW-Minerals-Council-Pre-Budget-Submission-%281%29.pdf" target="_blank">the NSW mining sector</a> says it paid to the NSW government in 2013-14.
Whoever wins the March 28 election, the next NSW government needs to recognise the financial liability being left to current and future taxpayers not only from derelict sites, but also the current mines being allowed to be left behind in future without complete rehabilitation.
For “best practice” to mean something, this should mean that people living in regional NSW are not left with a landscape blighted with hundreds of holes in the ground.
Phillip Geary is associate professor environmental science at University of Newcastle.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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Disused mines blight New South Wales, yet the approvals continue: Phillip Geary

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CoreLogic RP Data says the Illawarra housing market was a region that had been a strong performer over 2014.
Sales activity across the region is currently sitting 7% above the five year average and median house values have risen by 8.2% over the 12 months to December 2014, while unit values are up 8%.
There were 6,377 Illawarra homes sold over the 12 months to November 2014, just slightly more than the 6,346 homes sold over the preceding year.
Key stats across the region including vendor discounting levels and average time on market had also improved over the year. 
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