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

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

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

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

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.

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

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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The businesswomen Roxy Jacenko didn't get to sell her investment cottage, and former home, at 12 Nelson Street, Woollahra following its August auction listing.
She'd been told she could get an ambitious $3.5 million.
So she has dropped her initial listing agency and gone with <a href="https://www.alisoncoopes.com" target="_blank">Alison Coopes</a>.
Coopes is telling prospective buyers the more realistic $3 million price likelihood.
Jacenko listed her investment property as she's been looking to purchase a commercial property to house her business, Sweaty Betty PR.
The 329 square metre property – with the two-bedroom, two-bathrooms was bought in 2006 for $2.8 million.
Interior designer Blainey North fitted out the double fronted, one story, residential home which was previously for sale in 2011 with a $3 million price tag.
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Roxy Jacenko adjusts price and appoints new listing agent for her Woollahra investment cottage

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Sydney's first known real estate purchase by a significant investor visa holder has been to an $8.5 million Vaucluse mansion buyer.
The ultra-contemporary five-bedroom Captain Pipers Road house (pictured below) was bought by Minqin Wang, whose husband runs a mining transportation company in the Shanxi province, south-west of Beijing. Last month, on approval but before this week's purchase, she told News Ltd papers she wanted to move to Australia because of the weather, her friends who live here, and Australia's strong ties to her home country. Her grandchildren study in Sydney.
"Australia is strongly linked with China - it has a stable economy and social security is stable, it's better than other countries," she said.
{yoogallery src=[images/stories/2013/09/04/vau]}
The Wangs are one of less than a dozen approved holders of the significant investor visa which encourages overseas applicants with $5 million or more to invest, typically through Commonwealth, state or territory government bonds, ASIC-regulated managed funds, or Australian proprietary companies. It comes with an entitlement to eventual permanent residency.
Australia's first significant investor visa was granted in May this year to a Chinese toy manufacturer, who invested $5 million in Victorian state government bonds.
To date the much vaunted SIV-effect has been more agent's hype than reality. It will certainly come, but all in good time. The Chinese especially like to take their time.
 The property now sold was actually listed last October through Marion Badenoch of Richardson &amp; Wrench Double Bay when passed in at auction at $8.2 million. And in the interim its street address was changed to a luckier number.
The family was introduced by luxury property specialist Monika Tu of the Black Diamondz agency (???????) to the house designed by architect Kieran McInerney. The vendor was builder Drew Spring who replaced the former red brick apartment block which cost $3.25 million in 2007.
Property Observer recently noted the Immigration Department had received 305 applications for the visa as of last month, with 138 of those in NSW.
It is understood fewer than a dozen have been approved to date.
Some estate agents especially operating at the prestige end of the Sydney and Melbourne markets have been talking about the impact the visa will have on sales and prices for most of this year, but without backing it up with results.
It could be because the government department seems to have almost intentionally dragged the chain on approvals so as to not precipitate local concerns. The Department of Immigration says it will take between six to nine months to process applications.
But the trickle might yet become a torrent as property listings websites are attributing large spikes in searches for Australian property <a style="font-size: 14px; text-align: left;" target="_blank" href="/news">in part to the ‘SIV-effect’</a>. Direct property investment does not qualify as the $5 million investment, but presumably most successful applicants will then have a prestige home on their shopping list.
It then has the capacity to change the housing dynamic of select suburbs in select capital cities across Australia.
The scheme is being heavily promoted throughout China with the Bank of China recently completing a SIV road show of Chinese cities.
The NSW government has been vocal in its support of the scheme given it requires investors put a third of the required $5 million into NSW Investor Migrant Waratah Bonds – the only state to have such a requirement.
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SIV trickle might yet become a torrent  and change the Australian prestige housing market dynamics

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Brookfield Multiplex has marked the handover of the $152 million Royal Randwick Grandstand to the Australian Turf Club, with a time-lapse animation of its construction.
 
<div class="stream-item-footer">
{qtube vid:=D6T01TDLf4U&amp;feature=youtu.be}
 
</div>
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po-LsXgBTHBmX

Royal Randwick Grandstand construction time-lapse 

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While some areas of Sydney are seeing regular increases in rents, the inner city isn’t faring so well, according to a property manager in the area.
Let’s Rent director, Lisa Indge, said that rents are beginning to drop in the more prestigious areas that her office covers and she believes it may actually be due to the upcoming election.
“We’re not seeing properties racing off the books and we’re actually reducing rents,” Indge told Property Observer.
Top end rental properties in Balmain, such as around the $1,500 per week mark, are seeing $100 taken off of the weekly rent.
“Perhaps the demographic around here is more politically aware or feel they may be more affected by this change in government,” Indge suggested, pointing to the fact that the tenant demographic includes small business owners.
With mixed reactions from investors to the news of a softening in the rental market, Lisa Indge is currently warning investors to be aware of the importance of avoiding vacancies, even if it means reducing the rent.
In the inner-middle ring of Sydney, such as around Dulwich Hill, enquiries are still high for rental properties particularly in the $700 to $750 mark.
“Suburbs close into the city are a little bit nervous while those further are doing a bit better,” Indge said.
Properties weathering through the decline well in terms of tenant interest are that are still  in good condition and have been well renovated.
Two-bedroom properties with parking are also still in high demand. 
“I think parking is going to be more and more of an issue for renters particularly, and therefore investors. You have to pay more but the percentage of rental value attributed to parking as time goes on is going to increase. We’re currently looking at a much higher percentage now than before.”
<a target="_blank" href="/news">Scheduled auctions across the capital cities are the lowest they’ve been in some time</a>, with a total of 916 auctions scheduled this week, according to RP Data.
Across the country <a target="_blank" href="/news">Darwin leads the nation when it comes to price recovery</a> since the market trough, followed by Perth, according to RP Data Rismark.
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jduke-EHk3XBmHkn

Election may be cause of inner city rental decreases

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Investors are better off buying and operating vending machines than building a granny flat, according to Gavin McPherson, the head of property investment firm Oasis Property Group.
He says granny flats are for poorly informed investors in inferior areas and they attract bad tenants.
“The people that peddle this product trade on the lowest rung of investor,” McPherson told Property Observer. “Smart money knows better and doesn’t touch it.”
In NSW regulations only allow granny flats to be built on properties with a 14 metre frontage which McPherson says is only possible in the suburbs which aren’t ideal for investors.
“The stronger inner urban areas (i.e. the eastern suburbs, the north shore and inner west) thrive because it doesn’t allow this.”
“The bi product also of this is YES it does breed a very low class tenant.
“Cash flow is fine, but if you really are searching that hard for cash-flow – work an extra two to four hours a week (without the granny flat investment that does nothing for your capital value of land) or buy coke vending machines.”
But Jo Chivers, director of development firm Property Bloom, says it can add value to a home or investment in the short and long term.
“From a development perspective, it can be a quick and easy way to build your property portfolio and create high rental yields.” <a href="/news">she wrote in July.</a>
“Owners can benefit from cash-flow from the rent on two dwellings and also receive good depreciation benefits on the new flat (if being rented).  This means people can keep moving forward with their investment strategy.
“Unlike buying a single apartment for instance around Sydney which is likely to be negatively geared, adding a granny flat to a property with an existing dwelling can result in a cash-flow positive situation.”
She says small secondary dwellings are an attractive option for singles and couples – one of the fastest  growing sectors of the population.
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Granny flats worse investments than vending machines: Gavin McPherson

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Proposed changes to Sydney’s Growth Centres are a welcome boost to small developers and property buyers in the area, according to the Urban Development Institute of Australia (UDIA).
Sydney’s North West and South West Growth Centres have been identified as requiring a shift in planning policy to allow for a broader range of properties on smaller lots, a recent announcement by planning minister Brad Hazzard outlined.
UDIA NSW chief executive, Stephen Albin, said that the changes to the creation of small-lot housing had been long-called for.
“Proposed changes to the planning requirements can’t come soon enough for industry, and first home buyers looking to get into the market,” Albin said.
The changes include facilitating of townhouse and villa-style housing across more areas and studio dwellings located above garages in new housing developments that are strata subdivided from the main house so they can be sold separately.
Minimum lot sizes will also be changed to 225sqm as opposed to 250sqm to 360sqm at present, while in areas even more capable of supporting higher densities, 125sqm will be considered.
Another potential introduction includes the concept of a ‘Manor Home’, where a corner block property is built that looks like a two-storey home but actually includes four separate units.
“It will streamline approvals and cut costs and delays, helping homebuilders and renovators realise their dreams,” Hazzard said.
“All of the proposed changes will add to new housing opportunities in the Growth Centres by making building homes more financially feasible,” he said.
Albin pointed to development levies as the next issue to require attention.
The proposals are currently on exhibition until October 14.
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Policy changes to Sydney Growth Centres planning are a boost for developers: UDIA

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Andy Ruwald, co-owner of the Bucket List bar eatery, has withdrawn a development application for a function centre on the front lawn of Juniper Hall, Paddington.
<a href="https://www.propertyobserver.com.au/commercial/distilling-entreprenuer-seeks-to-turn-juniper-hall-paddington-grounds-into-a-beer-garden/2013082863855?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=jonathanchancellor'spropertyinsights" target="_blank">The landlord, the Moran family had plans to sub-let the garden to Mr Ruwald who sought permission for 350 patrons</a>.
“Due to the extent of the negativity of the neighbours with regards to Juniper Hall, I have stopped the DA,” Mr Ruwald told the Australian Financial Review.
“It was never my intention to disrupt the local area – I was merely trying to help bring Paddington back to life and my foresight for Juniper Hall was never to become a ‘beer garden’ in any sense.”
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Juniper Hall, Paddington "beer garden" application withdrawn

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The Alex Popov-designed Bellevue Hill home of the philanthropic art collector Ray Wilson has been snapped up before its September 9 auction.
Its listing, six years after the death of his partner, James Agapitos, was <a target="_blank" href="https://www.alisoncoopes.com/">through Alison Coopes</a>.
Title Tattle expects the house, which was designed to showcase the pair's substantial art collection, fetched $4 million plus.
Wilson and Agapitos bought the 930 square metre Bellevue Road property in 1994 for $1.06 million.
Popov designed a two-storey house with whole-floor guest retreat.
<img src="/images/stories/2013/08/PO_Strap_new.jpg" width="470" height="60" alt="PO_Strap_new">
Wilson is off to The Residence, the newly completed College Street, Sydney complex. 
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Alex Popov-designed Bellevue Hill mansion sells pre-auction through Alison Coopes

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I was almost tempted not to blog this week on the whole boom, bubble or bust debate. 
At best I think it sounds like a playground game for kids; at worst it could be a late night drinking game!
And like those games I’m not sure there is any real purpose or value to the debate other than to perhaps occupy or distract participants for a short period of time.
And to be perfectly honest I’m not sure that anyone, including myself, really knows exactly what is going on out there right now but the market has undeniably picked up.
So let’s have a look at the options:
At the current rate of exposure I’d suggest any bubble is being inflated as much by the hot air of over excited media and agents as the ongoing record low interest rates. 
However there is no doubt the market is being fuelled by a shortage of stock. Whether that makes a ‘bubble’ I’m not sure, but only a month ago we had fallen to record low stock levels. They’re now slowly starting to increase but I anticipate it could be a while before they return to traditional levels.
Does that mean the bubble will automatically deflate if we all stop talking about it? Or will the chatter continue to rise until the bubble inevitably pops?
In my view neither option is appealing.
A boom?  I’ve said it before -  I hope not. 
Just like a drinking game surely we have all learnt the hard way that after the euphoria of a boom comes the dreaded hangover.
Maybe it’s because I had to deal with the hangover last time that I know it isn’t pretty. 
Let’s drink responsibly this time.


<hr>
Ewan Morton is managing director of the Sydney based <a target="_blank" href="https://www.mortonandmorton.com.au/" rel="nofollow">Morton &amp; Morton</a>. 
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emorton-DecMjPQt5h

Sydney property market being fueled by shortage of stock: Ewan Morton

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The Sydney property market dipped below recorded a 79% auction clearance rate on Saturday, after recording six straight weeks at above 80%, according to Australian Property Monitors.
One auction clearance result at such an elevated level may or may not represent an anomaly, but that’s now seven consecutive weekends where the rate has been at or beyond the so-called ‘boomtime levels’ delineated by the 80% barrier.
I’ve predicted  for the last 18 months that the Sydney property market will be the prime beneficiary of the overriding weakness of many of Australia’s other property markets.
RP Data shows that prices in <a href="https://www.propertyobserver.com.au/south-australia/the-adelaide-property-market-is-stagnating-while-other-capitals-flourish-pete-wargent/2013081564244" target="_blank">Adelaide have waned badly in the last quarter</a> are now lower than they were 12 months ago, despite generational lows in interest rates. Prices have also fallen slightly year-on-year in Hobart.
Brisbane has fared no better than Adelaide over the past half-decade with median prices below levels seen in 2008, and many regional markets have been in a steady decline for several years now.
The same data provider reported back in May this year that house prices in real terms (i.e. when adjusted for inflation) were in the region of 10-20% lower than at their peak across every capital city.
Any lingering doubt that strong price growth would follow increased activity in the hot sectors of the Sydney market (inner west, lower north shore, city and east) has been eliminated.
This week has seen properties in my neck of the woods (Pyrmont, the inner west, city and east) selling at astonishing prices, with full asking prices often being met and <a href="https://www.propertyobserver.com.au/new-south-wales/sydney-auctions-selling-well-above-price-guides/2013081964121" target="_blank">auction results comfortably clearing reserves</a>.
In fact, ask market participants and they will tell you that in favoured suburbs and market sectors price growth over the past 12 months has been comfortably higher than the reported median gains. Sydney’s median dwelling price now sits comfortably above its previous all-time peak, but the apartment market actually broke through to record highs way back in May 2012.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/home-value-increases-currently-driven-by-broad-middle-priced-market-cameron-kusher/2013041060282">RP Data has reported</a> that it is the broad middle-priced market which is racing ahead, likely due to the exaggerated levels of investor activity.
There are a number of common explanations of why markets move in cycles:
-It’s been said that monetary policy, particularly the tightening of interest rates, has been effective in the past at stifling undesirable levels price growth
-Governing bodies have been blamed at times for becoming addicted to the ‘feelgood factor’ or ‘wealth effect’ associated with rising dwelling prices; and
-Construction activity can increase rapidly during a house price boom (and be quelled during times of falling prices) leading to a temporary oversupply (or undersupply) thus exaggerating market downturns (and upturns).
The most compelling factor, in my opinion, however, is the human psychology element. Not only does each new generation see an influx of new market participants who have never experienced a housing bust, humans are emotional creatures: we tend to extrapolate the present into the future in an irrational manner.
 
<hr class="system-pagebreak">
Perhaps unconsciously, we tend to believe that when times are good they will always remain so, and when times are hard we fear they will never improve.
We find it harder than we should to bet against the crowd ("what if everyone else is right and I’m wrong?”) and, most damningly of all, we cannot abide the idea of others profiting when we do not.
It was frequently observed back in the 1930s by George Orwell and others that while unemployment was frequently a devastating or humiliating prospect for millions, the impact was sometimes lessened where every household in the street was enduring the same experience. It seems to be human nature that our happiness and level of contentment is impacted by the successes or tribulations of our immediate peers.
The FOMO rally or the ‘fear of missing out’ is the human psychology most evident during a market price boom: prices which have been rising solidly can suddenly accelerate as the herd mentality kicks in.
George Soros noted in his <a target="_blank" href="https://petewargent.blogspot.co.uk/2012/06/soros-theory-of-reflexivity-applied-to">Theory of Reflexivity</a> that expectations of future price growth can lead to a positive feedback loop and further, perhaps even stronger, price gains. The underlying thought processes are not dissimilar to those involved when I played the UK National Lottery when I left school as a teenager. This phenomenon is more typically associated with pure investment asset classes such as in the equities markets, and yet increasingly residential property is being treated by many as an investment asset as well as being seen as a place for shelter, particularly in the face of unnerving share market volatility.
Of the 49 lads and one lass in the factory I worked in, 48 of them were signed into a Lotto syndicate. I never really thought we had much chance of winning (the odds of an individual ticket taking out the jackpot prize were an outlandish 14 million to one).
Moreover, I simply couldn’t abide the thought of turning up on another freezing winter Monday morning, only to discover that 48 chortling ex-machinists had retired to sun themselves and drink cold cans of Red Stripe by the pool in Barbados (thereby leaving me with the tedious task of grinding tools for 10 hours a day).
Classic human psychology: even at the likely risk of losing, I wasn’t prepared to risk missing out where there was a chance of others gaining significantly.
It’s the fear of missing out which is now driving Sydney’s property markets way past previous peaks. Even those who have previously not shown a remote interest in real estate as an asset class reluctantly begin to consider clambering aboard the bandwagon.
 
<hr class="system-pagebreak">
I’ll admit I didn’t rate the description of the Sydney’s property market experiencing a “mini-cycle” through the financial crisis and beyond. After all, prices can only really go in three directions – they can go up, down or track sideways.
While mini-cycles may always appear to be taking place, the true nature of a cycle only really becomes clear as it recedes in the rear-view mirror.
And yet, at the distance of a few years, it does appear that Sydney’s market responded rapidly to stimulatory policies with a burst of activity through 2009 and 2010, before quickly levelling off.
<img height="319" width="400" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6bl-dwelpri-small.gif?accessed=2013-08-04-11-51-02" alt="Dwelling Prices graph" class="aligncenter" style="display: block; margin: 0px auto 10px; border: 4px solid #eeeeee; padding: 1px; max-width: 570px;">
In fact, it was a compressed version of a textbook market cycle. First there were the predictions of a 40% market crash. Then, commentary subtly shifted towards “prices falling in real terms”.
And finally, with conflicting market data sporadically suggesting possible strong price growth, it was concluded by bearish commentators that “we should judge on the ABS data”.
And as at June 2010, so we did, when the ABS showed detached dwellings in Sydney as having jumped by 21.4% in 12 months.
And here we are again: rinse and repeat. Since 2010, <a href="https://www.propertyobserver.com.au/residential/those-who-called-a-property-crash-got-its-hopelessly-wrong-pete-wargent/2013072963654" target="_blank">there have been countless Sydney housing bust predictions, but to date, they could hardly have been more wrong</a>.
As the market bottomed out with moderate falls through to around May 2012, the predictions once again gradually shifted towards “price falls in real terms”, and finally news articles are now surfacing by the week belatedly predicting new record market highs.
RP Data shows that Sydney dwelling prices have increased since their trough by around 10% in nominal terms. Due to the high levels of leverage involved in residential property, this has resulted in an increase in equity on a median priced dwelling of more than $60,000. That’s a troubling figure which the average Sydneysider might take half a working lifetime to save in today’s consumer-focused world.
On closer examination, RP Data’s oft-maligned Daily Home Value Index now shows Sydney’s solid median dwelling price gains as having accelerated rapidly of late, increasing by 5.32% in less than 60 days.
<img height="211" width="470" src="https://2.bp.blogspot.com/-LXQB8zRy4LY/Uf4tbXUGgsI/AAAAAAAAJ9U/zofEaLJn1MI/s1600/RPData+12+month.jpg" class="aligncenter" style="display: block; margin: 0px auto 10px; border: 4px solid #eeeeee; padding: 1px; max-width: 570px;">
Traditionally, this is the shortest phase of the market cycle as the crowd joins the party late and quickly pushes prices to previously unthinkable levels – the fear of missing out for many simply becomes too great, despite the associated risk of losing.
 
<hr class="system-pagebreak">
It’s easy enough to sit out of the market when all the talk is of a “huge, market-wide crash” or “an inevitable housing bust”, and even moderate gains don’t tend to create too much fuss.
When homebuyers begin to talk about their house having “gone up by 10%”, this can become mildly worrying.
But what really grates is when the smug, highly-leveraged property speculator with half a dozen investment units to his name starts to crow confidently about how he is seeing accelerating 25-30% gains right across his entire portfolio since 2009, while savings account and term deposits look set to continue delivering woeful yields.
Remember, this property market recovery has largely been an investor-led rather than a homebuyer story, and this is particularly the case in Sydney.
Housing finance data shows that around half of housing finance activity in the city is related to investors.
Wary of high transaction costs, and armed with their trusty ‘buy-and-hold’ mindset, a proliferation of investors discourages frequent turnover of stock, clogging up the middle-priced and medium-density sector of the market, thereby potentially exacerbating any potential shortage of appropriate dwellings in desirable locations.
Of course, investment risk increases together with prevailing market prices. The entry price is a key input when calculating the absolute returns on any property investment – entry price and investment risk cannot be decoupled.
Thus the market is de-risked when prices are lower, but correspondingly becomes riskier as prices increase.
Throw into the mix lagging construction of appropriate and well-located dwellings together with a city population increasing at ~60,000 persons per annum, and I expect to see a further interest rate cut send Sydney’s property markets into a relatively short-lived but nevertheless rampant speculation phase.
This phase of the cycle must necessarily be short for price growth surely cannot continue at such a furious pace for too long, but new entrants are now being lured into the market at ever-higher prices.

<hr>
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 new 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 released on 1 September 2013.
 
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