For the first time in a long time, Australia's inflation story is starting to look more like a landing than a fight.

The latest Consumer Price Index figures from the Australian Bureau of Statistics showed annual inflation eased to four per cent in May, down from 4.2 per cent in April. On the surface, that might not seem like a major move. Inflation remains above the Reserve Bank's target range and some categories continue to record stubborn price growth.

But the significance of this result lies less in where inflation sits today and more in what it means for where interest rates are likely heading next.

The biggest takeaway is that inflation continues to move in the right direction.

Markets had been bracing for another sticky result after a period where progress appeared to stall. Instead, headline inflation came in softer than expected, helped by falling fuel prices and easing transport costs. Annual transport inflation halved from 6.6 per cent in April to 3.3 per cent in May, while automotive fuel prices fell 11.9 per cent during the month following lower oil prices and the impact of reduced fuel excise measures.

While petrol prices don't solve Australia's affordability challenges, they are one of the most visible and immediate costs for consumers. Falling fuel costs feed through the economy quickly, helping ease pressure on household budgets and business operating expenses.

The ABS data also showed headline inflation is now sitting at its lowest annual level in several months, reinforcing the broader trend that price growth is gradually moderating.

That trend is important because it aligns with what many economists and lenders have been saying for the last month.

Prior to this week's inflation data, ANZ, NAB and Commonwealth Bank had all shifted their forecasts, now believing the Reserve Bank had likely reached the peak of the interest rate cycle. Following the May inflation release, ANZ reaffirmed that view.

In its latest economic update, ANZ said it expects quarterly trimmed mean inflation to come in at 3.7 per cent for the June quarter, slightly below the Reserve Bank's forecast of 3.8 per cent. Importantly, the bank said that outcome, when combined with slowing economic activity, "supports our view that the cash rate has peaked".

The Reserve Bank has spent the better part of three years attempting to bring inflation under control through higher interest rates. If Australia's major banks are correct and rates have now peaked, the conversation shifts from how much higher rates could go to when they might begin coming down.

Westpac's caution comes from underlying inflation. The trimmed mean, the measure most closely watched by the Reserve Bank, increased from 3.4 per cent to 3.6 per cent annually. Housing inflation remains elevated at 6.5 per cent, reflecting ongoing increases in rents, electricity costs and new dwelling construction.

Electricity prices remain particularly problematic, rising 21.1 per cent over the past year following the removal of government rebates.

Housing construction costs are also showing signs of renewed pressure. ANZ noted new dwelling costs rose 0.9 per cent in May and are now running at an annualised pace of 8.6 per cent over the past three months. Builders continue to face higher labour, fuel and material costs, a reminder that inflationary pressures have not completely disappeared.

Housing affordability has deteriorated largely because of higher interest rates rather than higher property prices alone. Even modest reductions in mortgage rates would improve borrowing capacity, increase buyer confidence and reduce repayment pressure on existing homeowners.

While August is far from a certainty, the latest inflation result has strengthened the view that the next move in rates is more likely to be down than up. For borrowers, buyers and the development sector, that alone represents a significant shift from the conversation that dominated much of the past two years.

Joel Robinson

The inflation result the property market was waiting for

Commercial property group FiveX is doubling down on its move into the residential space.

The group, founded by Joshua and Marko Berger more than five decades ago, has followed up its plans for a 39-storey tower on North Sydney's Alfred Street with a proposed 61-storey tower in Chatswood.

The new tower at <a href="https://www.apartments.com.au/new-apartments/815-pacific-highway-chatswood-nsw-2067">815 Pacific Highway</a>, which would be one of the tallest proposed in Chatswood in recent years, will comprise 490 apartments, 76 of which will be dedicated affordable housing and managed by Evolve Housing for a minimum of 15 years.

The project will replace the long-standing Panorama Building, originally known as the BMA Tower, a 14-storey office building completed in 1972 and designed by Hungarian-born architect Hugo Stossel. At the time of its completion, the building was the tallest structure in Chatswood and became a local landmark due to its distinctive curved form and external glass lift.

<img alt="FiveX" data-entity-type="file" data-entity-uuid="956bd299-3864-47a0-8ea6-162b5524c5d8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.02.03%E2%80%AFPM.png?VersionId=EWx7teUr7RcYrI9mgRytwppwt5AdUDtb" />

fjcstudio is behind the designs. Its Architectural Design Report argues the ageing commercial building no longer reflects Chatswood's role as one of Sydney's key strategic centres and that the site is ideally positioned to support significantly higher residential density.

"The site is located at the heart of Chatswood, within the TOD accelerated rezoning area that supports higher density development around the new Metro station," the report states.

"The site's role within a walkable 400-metre radius catchment is where housing, employment, retail and community uses are encouraged to cluster in support of transit-oriented living."

<img alt="fjc" data-entity-type="file" data-entity-uuid="8d198f5e-cc71-4175-9357-be6ec7207473" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%201.18.27%E2%80%AFPM.png?VersionId=5WUFc3IYBPvhQMBUYLCsjJhzdcVeYodE" />

The proposal has undergone two rounds of review by the NSW State Design Review Panel, with the design evolving through an extensive assessment process focused on design excellence, public realm outcomes, residential amenity and the integration of affordable housing.

fjcstudio says the residential component provides a diverse mix of apartment typologies, supporting a broad demographic and contributing to housing supply in a highly accessible location close to major transport, employment and retail infrastructure.

The application follows FiveX's plans for a 39-storey tower at <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">275 Alfred Street</a>, which it <a href="https://www.apartments.com.au/new-apartments/275-alfred-street-north-north-sydney-nsw-2060">submitted through the same NSW Government pathway</a> in December. That's for 184 apartments.

Recent activity in Chatswood includes Hyecorp launching its Archer Street project, Celine, and Develotek securing approval for a 34-storey tower.

First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans

Bridgewell Capital and SLD Development seem to be bullish on the Killara apartment market, filing plans for a second new development next to the Killara Golf Club.

The new plans are for 79 apartments across an amalgamated 4,989 sqm site on Buckingham Road.&nbsp;The project has been designed by BKA Architecture and is being assessed under the NSW Government's Low and Mid-Rise Housing and Infill Affordable Housing reforms. It is just 300 metres from&nbsp;Killara train station.

The majority of the apartments are three-bedrooms (46), with 23 two-bedroom apartments, seven one-beds, and three four-bedroom apartments. 17 of the apartments&nbsp;are proposed as affordable housing, representing 15 per cent of the project's gross floor area, allowing the development to access additional floor space and height incentives available under the NSW Housing SEPP.

There will be 131 resident and visitor car spaces, and more than&nbsp;1,450 sqm of communal open space. Landscaped areas would account for approximately 45 per cent of the site.

<img alt="Killara" data-entity-type="file" data-entity-uuid="75ef5ef7-a53b-4932-a8f1-38f63169eec9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-24%20at%2011.04.00%E2%80%AFAM.png?VersionId=d_lG1A1StDaMQilljy25Fr8SF1BnAmKE" />

The site currently contains three detached dwellings and occupies a prominent position on the eastern side of Buckingham Road, with frontage to an area that has already begun transitioning towards higher-density housing. Existing apartment buildings of up to six storeys surround the site, while the Killara Golf Club forms its southern boundary.

The application has been lodged as a State Significant Development due to the affordable housing component and the scale of the project.

According to the design report, the proposal has been shaped by the area's evolving planning framework, which is encouraging greater housing density around transport infrastructure.

"The site sits along a growth area anticipated to undergo transformation in line with broader trends across New South Wales, driven by the implementation of the Low and Mid-Rise and Transport-Oriented Development State Housing Policies," the report states.

"Being within 800 metres walking distance to Killara Train Station, the project seeks to provide high-quality apartments designed for various family sizes, located in a vibrant landscaped setting."

The Upper North Shore suburb has become one of the most closely watched testing grounds for the NSW Government's housing reforms. A number of developers have moved quickly to consolidate sites around railway stations across suburbs including Killara, Lindfield, Gordon and Roseville, where the new planning settings are creating opportunities for apartment developments that would previously have been difficult to achieve.

The likes of Aqualand, Hyecorp, Holdmark and Vermont Property Group have projects in the region.

Bridgewell has several developments in the pipeline. Last September they submitted plans for <a href="https://www.apartments.com.au/news/nsw/bridgewell-capital-seeks-55-apartment-project-in-killara">55 new apartments</a> at&nbsp;23-25 Lorne Avenue in Killara, just the other side of Regimental Park from their new project. In May they filed for <a href="https://www.apartments.com.au/news/nsw/first-look-bridgewell-plots-120-apartments-and-childcare-centre-in-maroubra-town-centre">120 apartments in Maroubra</a>.

&nbsp;

&nbsp;

&nbsp;

First look: Bridgewell, SLD Development double down on Killara Golf Club

Sydney developer&nbsp;<a href="https://www.apartments.com.au/developers/central-element">Central Element</a>&nbsp;is doubling down in Drummoyne, lodging plans for a boutique apartment development on St Georges Crescent, only one-kilometre down the road from its first Drummoyne development, Bianca.

The new project at 15A-21 St Georges Crescent,&nbsp;a&nbsp;1,701sqm north-facing site overlooking Iron Cove, will have 45 apartmnts across 10 levels. Eight of the units will be dedicated to affordable housing.

The site sits within walking distance of Drummoyne Village, Birkenhead Point, ferry services and the Bay Run, and offers harbour views towards the Sydney Harbour Bridge and CBD skyline.

Designed by MHN Design Union, the development will deliver a mix of one, two and three-bedroom apartments, alongside resident amenity including a gym, landscaped communal open space and three levels of basement parking.

The project has been lodged under the NSW Government's Low and Mid-Rise Housing reforms, with Drummoyne Village identified as a town centre capable of accommodating additional housing supply.

Central Element acquired the site earlier this year as part of its continued expansion across Sydney's eastern suburbs, lower north shore and inner west.

The developer's current pipeline includes luxury apartment projects Pearl Bondi and a separate development on Lamrock Avenue in Bondi, a residential project in Barry Street, Neutral Bay, and a mixed-use seniors living community in Greenwich.

Central Element Managing Director Nathan Chivas said the project would address a shortage of new owner-occupier housing opportunities in Drummoyne.

"While we're seeing a significant shift across Canada Bay as major infrastructure investment, population growth and planning reform drive a new chapter for the region, in suburbs like Drummoyne there remains a genuine shortage of new boutique luxury housing opportunities for owner occupiers," Chivas said.

"Sites of this nature are increasingly difficult to secure, particularly those that combine a north-facing aspect with direct water outlook. Our St Georges Crescent project responds directly to the market demand, offering a level of exclusivity, outlook and lifestyle in the highly sought after suburb."

The development application has been lodged with the City of Canada Bay Council, with the project expected to launch to market in early 2027.

&nbsp;

Central Element seeks second Drummoyne apartment development

The NSW Government has unveiled plans that could deliver around 1,300 new homes across Nowra and Kiama, continuing its push to unlock housing in well-located regional centres along the South Coast.

The proposals, now on public exhibition, would pave the way for around 830 homes in Nowra and a further 450 homes in Kiama, while also introducing affordable housing requirements and increased building heights in key locations.

The larger of the two proposals is centred on Nowra, where the NSW Government is seeking to rezone land within the Mandalay and Riverfront precincts.

The Mandalay sub-precinct, located close to Shoalhaven Memorial Hospital, Nowra Library and the city's aquatic centre, could accommodate around 530 new homes. Around 30 per cent of housing delivered on Homes NSW-owned land would be dedicated to social and affordable housing, equating to roughly 100 homes. Building heights would increase from the current two-storey limit to between three and six storeys.

A separate rezoning proposal for the Nowra Riverfront Precinct would unlock a further 377 homes while creating stronger connections between the Shoalhaven River and the CBD. The plans include building heights ranging from five to 12 storeys, floor space ratios of up to 2:1 and a requirement for two per cent affordable housing.

Together, the two proposals would deliver more than 900 homes across the broader Nowra area, reinforcing the city's role as one of regional NSW's key growth centres.

The housing push builds on previous infrastructure commitments in the Shoalhaven, including government funding aimed at supporting thousands of future homes in West Nowra through upgrades to water and wastewater infrastructure.

Further north, the NSW Government is also progressing plans for the former Kiama Depot site, a two-hectare parcel near Kiama's town centre.

The rezoning proposal would transform the former industrial site into a residential community capable of delivering up to 450 homes. Buildings would range between six and eight storeys, with at least 10 per cent of homes allocated as affordable housing. The proposal also includes approximately 600 parking spaces and improved walking and cycling connections.

Planning Minister Paul Scully said the proposals are designed to increase housing supply in locations close to jobs, transport and services.

"For too long, families have struggled to find somewhere to live, and activating underutilised sites allows us to deliver the new homes these families need," Scully said.

"The Minns Labor Government is getting on with the job of unlocking well-located sites close to transport, jobs, and town centres and building the homes our communities need.

"These rezonings are about removing barriers to housing delivery and making sure land is put to better use so more people can find a place to call home within the communities they choose."

The latest rezonings form part of the Minns Government's broader strategy to accelerate housing delivery across NSW, particularly in established centres where existing infrastructure can support additional population growth.

Community consultation on the proposals is now underway, with feedback set to inform the final planning controls before the rezonings are determined.

Around 1,300 new homes earmarked for Nowra and Kiama as NSW Government pushes housing supply

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>

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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?

Kassis Homes has reached a significant milestone in the development of its Grand Reve apartment project in Castle Hill.

They've officially topped out the two-tower, 185-apartment development, planting an olive tree on the roof and a barbeque lunch for the site team, consultants, the project marketing team at&nbsp;<a href="/project-marketer/mcgrath-projects">McGrath Projects</a>, and special guest Councilor Mark Hodges.

Construction by iCIRT-rated builder <a href="/builders/dasco-australia">Dasco</a> continues steadily to ready and deliver the apartments on track for a late 2024 move-in.

Service installations began in January 2024 and are around halfway completed.&nbsp;Interior fittings and fixtures commenced in February, with material procurement now reaching up to level seven.

[smartcode_project:default project_id=94147 project_image_fid=197727]

Grand Reve is the debut apartment development by&nbsp;<a href="/developers/kassis-homes">Kassis Homes</a>, a long-time luxury home builder in the area.

The project offers 37 different floor plans, ranging from studios to three-bedroom units and townhouse-style dwellings.&nbsp;

Grand Reve also emphasises outdoor space, with 2,300 square meters dedicated to landscaped communal gardens.

[smartcode_project:default project_id=94147 project_image_fid=203072]

The project has garnered attention from various buyer demographics, including downsizers, first-home buyers, upsizers, and investors.

The development's popularity is attributed to the growing interest in <a href="/developments/castle-hill-nsw-2154">Castle Hill</a>, driven by the new North West Metro and Hills Showground Precinct redevelopment.

<a href="/buildings/grand-reve-castle-hill-8-18-garthowen-crescent-castle-hill">Grand Reve</a> provides prospective buyers with the option to secure an apartment with a $10,000 deposit in partnership with Coposit and includes 10-year structural defect insurance.&nbsp;

Prices start at $570,000 for studios, making it an attractive option in the in-demand Hills District housing market.

[smartcode_project_cta:default project_id=94147]

The project has garnered attention from various buyer demographics, including downsizers, first-home buyers, upsizers, and investors

mikah.m@urban.com.au

Dasco tops out Kassis Homes' Grand Reve, Castle Hill apartment development

The City of Boroondara has approved a new 12-level mixed-use development that will become the second tallest building in the area.

The project, at 697-699 Burke Road, <a href="/new-apartments/camberwell-vic-3124">Camberwell</a>, has been designed&nbsp;by <a href="/architects/cera-stribley-architects">Cera Stribley</a> for boutique property developer <a href="/developers/above-zero">Above Zero</a>&nbsp;and will have 36 apartments set above five levels of office space and retail on the ground level.

There will be a mix of 18 two-bedroom apartments, 13 three-beds and five four-bedroom units toward the top of the building.

The approval follows an extensive planning process that has been ongoing site 2015 when the&nbsp;City of Boroondara first refused a 15-level, 62-unit development on the 1,950 sqm site. A year later there was an application to reduce the building to 12 levels, and the number of apartments down to 53, which was also refused.

Local residents, particularly those from the nearby Aerial building, had raised concerns about the building’s height and parking provisions.

The final design, which gained support from both the council and previous objectors, includes office spaces on levels one to five, apartments on levels six to eleven, and a communal rooftop terrace on level 12.

<img alt="Cera Strib" data-entity-type="file" data-entity-uuid="56497ad5-4fd1-4353-9ef4-46e4a46c72af" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Cera%20Stribbely%202.jpg?VersionId=lBEwKI09LeWXQFszZofQbHYBk7_0vmb7" />

The Camberwell Junction area is expected to need a further 1,500 additional new dwellings by 2051 to keep up with population growth, the planning documentation suggested.

Council said that while the&nbsp;maximum building height set at 10 storeys in the structure plan, the design detailing and setbacks of any levels above that are extremely relevant and critical to their acceptability.

"We have consistently argued that the maximum building height on the review site is dependent on many factors, including retaining the visual primacy of the Aerial towers in the Junction’s skyline. These factors were exhaustively debated and examined in various VCAT orders, which found that a 12-storey form was acceptable on the subject site, keeping in mind that back then, the site was considerably smaller comprising 699 Burke Road only."

The Camberwell Junction area is expected to need a further 1,500 additional new dwellings by 2051 to keep up with population growth, the planning documentation suggested

Camberwell set for Cera Stribley-designed mixed-use development after green light

The Malinauskas Labor Government will officially abolish stamp duty for all first homebuyers who buy or build a new home, and extend the First Home Owner Grant to all eligible first homebuyers as part of the 2024-25 Budget.

To further boost housing supply and help more South Australians into home ownership, the 2024-25 Budget will abolish property value thresholds for both the stamp duty exemption and First Home Owner Grant at a cost of $30 million over four years.

With the abolition of property value limits, a first homebuyer who purchases a new dwelling broadly in line with the median house price of $750,000 will receive a benefit of over $50,000, including the First Home Owner Grant of $15,000.

The stamp duty exemption will be available to all first home buyers who buy a new home (including a house, flat, unit, townhouse or apartment), an off-the-plan apartment, a house and land package or vacant land to build a new home.

The initiative builds on the tax relief announced as part of the 2023-24 Budget, which saw the Malinauskas Labor Government abolish stamp duty for first home buyers purchasing a new dwelling up to a property value of $650,000 while also aligning the property value cap for the $15,000 First Home Owner Grant to this limit.

South Australian Premier, Peter Malinauskas, said we are amid a national housing crisis borne of successive governments failing to do enough to build new homes.

"In the last budget, we abolished stamp duty for some first home buyers who build new homes. Now we are making that tax relief available to all of them.

"Every new home built in our state benefits the rest of the housing market. Every first homebuyer that can move into a new home means one less buyer or renter competing for existing stock."

First home buyers building a home can also save thousands with a two per cent deposit home loan available through HomeStart, a Malinauskas Government election commitment delivered this year.

Stephen Mullighan, South Australia's Treasurer, says the&nbsp;Malinauskas Government is acutely aware of the barriers facing young people who are looking to enter the housing market, and are determined to do all they can to assist young people into homeownership.

"That is why we have taken the step to abolish the property value cap on the stamp duty exemption for first home buyers who buy or build a new dwelling to ensure all first home buyers who choose this option no longer have to pay stamp duty."

Master Builders SA CEO Will Frogley said it&nbsp;is a great day for any South Australian who dreams of owning their own home.

"It’s also a great day for builders, tradies, suppliers, apprentices and all of the more than 80,000 South Australians directly employed in our industry. As house prices have risen over the years so too has stamp duty.

"This vital policy change by the Malinauskas Labor Government will incentivise South Australians to build their own home, fuel job creation and keep our economy strong."

South Australia scraps stamp duty for first home buyers who buy off the plan or new builds

Lower North Shore developer WINIM has been one of the most active in taking up the new 10-year Latent Defects Insurance offered to developers by Resilience Insurance.

<a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">Latent Defects Insurance</a>, or LDI, the new game-changing policy that has just made it to Australia, covers an off the plan property buyer for 10 years post-completion for any costs associated with structural defects in their new apartment and the building as a whole.

Read more:&nbsp;<a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?</a>

In a short space of time, WINIM has taken the policy out on two of its latest residential developments, and it now forms a strong part of its business model,&nbsp;WINIM's Senior Development Manager Peitra Creak says.

Creak says the team were completely sold on the insurance once they understood the intricacies of the policy and how it works for both the purchaser and the developer.

Creak underscores its value as having a "dual benefit," for both developer and purchaser.

"First and foremost, Resilience LDI is a purchaser-led policy that protects off the plan property buyers and will drive confidence in our industry," Creak says, adding that there are significant benefits to the developer that make it even more attractive.

[smartcode_project:default project_id=143528 project_image_fid=253689]

"The last few years have been such a wild ride and we can't have predicted what has happened in terms of builder insolvencies, but we can learn lessons from it. We believe having Resilience LDI, as well as partnering with an iCIRT-rated builder, we're pre-empting and avoiding future issues in the built environment."

Creak says one of the biggest bonuses of Resilience LDI is that they get another set of eyes during the build process, something that can prove invaluable during the construction phase.

"The insurer is there to de-risk the project, and they do so by partnering with developers with a track record, strong finances, and consistently being a part of the build process. They have their teams on site before a shovel has been put in the ground, undertaking technical inspection services at frequent intervals."

[smartcode_project:default project_id=142292 project_image_fid=228505]

The fact Resilience LDI is a first right insurance was also another value add.

"With it being a first right insurance, we can factor it into our feasibility well before we start building the project. It also means that action is taken as soon as an issue occurs during the build, rather than at the end of construction.&nbsp; That means for buyers they don't have to pay a penny if there's any sort of rectification order, and, if it ever came to it, they would have accommodation paid for if they couldn't occupy the building."

Creak says they think developers could fall behind if they don't have Resilience LDI.

"If there are two similar, competing projects in the same area, then the buyer is definitely going to opt for the one with LDI over the one that doesn't have the policy."

WINIM has several new developments on the way, in Lane Cove and Neutral Bay, that they intend on taking out the Resilience Latent Defect Insurance policy on.

<h2>What is Resilience LDI?</h2>

Resilience LDI is the first Latent Defects Insurance policy in Australia. The insurance provides off the plan apartment buyers with a 10-year warranty on their new apartment and the building it's situated in.

The cover is purchased by the property developer/builder (pre-construction) and is designed to protect owners against any immediate or future problems with the structural components of their new property, from leaks to cracks and everything in between.

For more information about Resilience LDI,&nbsp;<a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">click here</a>.

Why WINIM has embraced Resilience LDI

Abadeen is continuing to double down on Melbourne's premium owner-occupier market, grabbing a parkside development site in <a href="/developments/caulfield-north-vic-3161?sort=">Caulfield North</a>.

Having opened up shop in Victoria last year off the back of Abadeen's success in Sydney's Lower North Shore for the last two decades, <a href="/developers/abadeen-group">Abadeen</a>, led in Melbourne by industry veteran Andrew Leoncelli, beat out several other developers to secure 1,060 sqm on Caulfield Park.

The site at <a href="https://www.apartments.com.au/new-apartments/the-parker-219-balaclava-road-caulfield-north-vic-3161">219-229 Balaclava Road</a> is north-facing and offers uninterrupted views to the north and northwest, over the park and out to the city.

It was offered by JLL with permit-approved plans for a new seven-level apartment development designed by CHT Architects (below). The permit was for 29 two and three-bedroom apartments, a four-bedroom penthouse, two ground-floor retail spaces and a home office.

<img alt="Abadeen" data-entity-type="file" data-entity-uuid="24e257c8-bcb0-429b-a43b-1e3e18b53735" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screen%20Shot%202024-06-06%20at%2010.23.49%20am.png?VersionId=OSPk6HkveA7cBN14SwLc0Mdst97TNeMe" />

Abadeen VIC will go back to the drawing board and is engaging a leading architect to tweak the plans to make the apartments larger, but they will stay within the same envelope of what's been approved.

Leoncelli says the timing is right for a high-quality product to come to the local market.

“This market hasn’t had something of the quality that we’re looking to deliver," Leoncelli says.

“We want to do something bigger than what’s been delivered before to cater to the sophisticated, wealthy, local owner-occupier.

"The building envelope is excellent but we feel the product should be larger and of a higher quality especially given the incredible north-facing Caulfield Park, City and Bay view lines."

<img alt="abadeen" data-entity-type="file" data-entity-uuid="912395dd-3ab0-4922-bd8e-55804b4013ab" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screen%20Shot%202024-06-06%20at%2010.23.39%20am.png?VersionId=8WDEAS_ndB64HRdLt_hIy5tccDe9dBYB" />

The site was bought on long settlement terms, which should see construction commence toward the back end of 2025. It borders St Aloysius Church and two different tram routes are on its doorstep.

"The project continues Abadeen’s push into the east and south-eastern suburbs of Melbourne’s owner-occupier, high-end apartment market," Leoncelli added.

The Caulfield North project will be Abadeen third in Melbourne. They announced themselves on the scene in the Melbourne off the plan apartment market with <a href="/new-apartments/malea-94-burke-road-malvern-east">Maléa</a>, just seven luxury apartments on <a href="/new-apartments/malvern-east-vic-3145">Malvern East's</a> Central Park where they've recently started construction.

They also have a development application with Stonnington Council for another development at 646 High Street in Prahran. They're planning 26 apartments in a striking Carr-designed building that curves around a listed Smooth Bark Apple tree.

Leoncelli says the feedback from the application has been positive.

Read more: <a href="/news/vic/first-look-abadeen-lodge-plans-for-second-melbourne-apartment-development">First look: Abadeen lodge plans for second Melbourne apartment development</a>

Abadeen VIC will go back to the drawing board and is engaging a leading architect to tweak the plans to make the apartments larger

Exclusive: Abadeen grab next Melbourne off the plan apartment development site

The Sydney suburb Eastlakes, a gateway to Australia’s most sought-after region for real estate, often gets overlooked by some of its more well-known Eastern Suburbs and inner-east neighbours.&nbsp;

In recent years however, the suburb has undergone a huge transformation, led by Crown Group who identified Eastlakes as the perfect place to develop a $1 billion mixed-use precinct.

They completed the first stage of the precinct at the start of 2022, winning the <a href="/news/urban-taskforce-australia-says-ia-report-reinforces-the-need-for-urban-densities">Urban Taskforce Australia</a> Development Excellence Awards in the Mixed-Use Development category the same year, one of the most prestigious awards a development can get in Australia.

Now, following the provisional liquidation of <a href="/developers/crown-group">Crown Group</a> late last year, the final apartments remaining in the first stage, known as <a href="/buildings/the-grand-residences-eastlakes-16-evans-avenue-eastlakes">The Grand Residences</a> Eastlakes, have been released to the market, at a price point unheard of in the Eastern Suburbs. Furthermore, every apartment at The Grand Residences has at least one parking space.

[smartcode_project:default project_id=7652 project_image_fid=262590]

Both the price point and the position of The Grand Residences Eastlakes will be difficult to replicate given the soaring costs of building since the pandemic, as well as the boom in real estate values in Sydney’s East.&nbsp;

Residents of The Grand Residences Eastlakes will find themselves in the heart of the suburb, providing easy access to a wide range of amenities to suit all lifestyles. It’s surrounded by parks, golf courses, beaches, sports facilities, top schools and universities, and is a short commute to the Sydney CBD. Eastlakes' connectivity is enhanced by easy access to major roadways like the Eastern Distributor Motorway and the Sydney Bus Network, which connects to extensive light rail, train, and metro services.

The Grand Residences Eastlakes is surrounded by four premier golf courses and multiple community parklands. To the north across Gardeners Road is The Australian Golf Club, while to the east across Southern Cross Drive are Eastlakes Golf Club, The Lakes Golf Club, and Bonnie Doon Golf Club.

Reserves like Bridget Tight and Jack Mundey Reserve are just a short three-minute walk away, with larger parks like Astrolabe Park accessible within a three-minute drive.

[smartcode_project:default project_id=7652 project_image_fid=262592]

Large stretches of parkland, golf courses and green spaces surrounding The Grand Residences Eastlakes are complemented with a short trip to world-renowned beaches like Coogee, Bronte, and Bondi, as well as the City of Sydney’s new Gunyama Park Aquatic and Recreation Centre.

The Grand Residences Eastlakes also benefits from easy access to vibrant suburbs like Waterloo, Zetland, Surry Hills, and Alexandria, offering residents a variety of excellent retail, eateries, and cafes, including popular spots like Three Blue Ducks, Black Star Pastry, Gelato Messina, and Da Mario in Rosebery, all within a 10-minute drive.

There is also the highly-rated Common Cafe and Go Go Gozleme at The Eastlakes Shopping Centre just a stone’s throw from the apartments, while Westfield Eastgardens, home to Woolworths, Coles, Myer and Kmart among a further 200 other retailers and several more restaurants and cafes, is only a nine-minute drive from The Grand Residences.&nbsp;

[smartcode_project:default project_id=7652 project_image_fid=262602]

Families are also well catered for at The Grand Residences Eastlakes. From its privileged position, the development is only within a 10-minute drive to Eastlakes Public School, St Therese Catholic Primary School, JJ Cahill Memorial High School, and highly-ranked high schools like Sydney Girls High School and Sydney Boys High School.&nbsp;

Since the apartments have been released to market through McGrath Projects and Crown Property Agency, there has been a diverse range of buyers, from first home buyers to investors and upsizers.

[smartcode_project_cta:default project_id=7652]

Since the apartments have been released to market through McGrath Projects and Crown Property Agency, there has been a diverse range of buyers, from first home buyers to investors and upsizers

The prime Eastern Suburbs location of The Grand Residences, Eastlakes

ASX-listed developer Lendlease have some of Australia's most impressive projects under their banner.

Their focus is primarily on Australia's largest gateway cities of Sydney, Melbourne and Brisbane, creating landmark, precinct-style developments that change the skyline of each city.

They recently settled One Sydney Harbour, their luxury Barangaroo apartment tower that had prices range from $1,515,000 to $140 million, while in Melbourne they're continuing to progress with their multi-stage Collins Wharf development.

We recently caught up with Daniel Dugina, Lendlease Executive Director for Victoria, to chat about Lendlease and how they develop.

<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/4dZGiT6TXTY?si=cEXnRO7cfk-omo8S" title="YouTube video player" width="560"></iframe>

We recently caught up with Daniel Dugina, Lendlease Executive Director for Victoria, to chat about Lendlease and how they develop.

Michael Bird

Lendlease's focus on Australia's biggest precinct developments: Five minutes with Lendlease Executive Director Daniel Dugina

Melbourne-based developer Blue Run is the latest group to jump into the booming South Kingsville market.

They've just started selling&nbsp;<a href="/new-apartments/kings-lane-kingsville-56-new-street-south-kingsville-vic-3015">Kings Lane</a>, a boutique townhouse development comprising just 25 three and four-bedroom townhouses designed by <a href="/architects/rothelowman">Rothelowman</a>.

The two and three-level townhouses will sit on New Street, tucked away conveniently off Blackshaws Road and near Edwards Reserve.

[smartcode_project:default project_id=145042 project_image_fid=279557]

Blue Run Founder and Director Richard Wilkes says not many projects in the Melbourne market can offer a Rothelowman design at this price point

"These townhomes are different to anything else on the market in the area," Wilkes says.

"We’re eight kilometres from the CBD with sustainably designed townhomes by an award-winning architect for&nbsp;under $1 million, which is hard to replicate in the current market never mind in a few year’s time."&nbsp;

LAWD Projects Director Henry Burbury says <a href="/developments/south-kingsville-vic-3015">South Kingsville</a> and the neighbouring <a href="/developments/spotswood-vic-3015">Spotswood</a> is evolving, with several of the country's biggest developers undertaking development in the area.

[smartcode_project:default project_id=145042 project_image_fid=279556]

"<a href="/developers/mirvac">Mirvac</a>, <a href="/developers/stockland">Stockland</a>, <a href="/developers/blue-earth-group">Blue Earth Group</a> and Metro Property have all identified South Kingsville and Spotswood for development. Frasers have also recently launched Bradmill in nearby Yarraville. That speaks volumes as to where they're heading, and that should give buyers confidence that the area is going through a transformation.

"Union Quarter is bringing extensive retail and hospitality spaces, including a health and wellness centre, while a sky rail has been mooted for Spotswood and Newport."

So far Burbury has been fielding interest from buyers from <a href="/developments/southbank-vic-3006">Southbank</a>, <a href="/developments/south-melbourne-vic-3205">South Melbourne</a> and the St Kilda Road precinct, as well as strong interest from interstate.

"They're coming out of apartments and want more space. Similar product in Melbourne's south-east and northern suburbs can be between $1.7 million and $.2 million.

"There's also been a large amount of enquiry from surrounding suburbs like <a href="/developments/footscray-vic-3011">Footscray</a> and <a href="/developments/sunshine-vic-3020">Sunshine</a>, as well as those who have house and land in the likes of Werribee who want to come into the city for greater access to schooling for their growing families."

LAWD recently opened the display suite on-site at 56 New Street, South Kingsville.

[smartcode_project_cta:default project_id=145042]

Launch Alert: Kings Lane townhouses launch in South Kingsville

A difficult apartment development environment across Australia will mean under-supply levels worsen over the next few years and this lack of available stock will force buyers into the pre-commitment market and to pay more for off-the-plan apartments to compensate for higher construction costs.

That's the view from real estate services firm JLL, whose Apartment Market Overview: Australia Q1 2024 Report found apartment supply levels were already falling well short of underlying demand and the situation will only worsen as demand continues to rise and supply stays moderate.

Leigh Warner, JLL’s Head of Residential Research – Australia, said there are many factors supporting growth in apartment demand across Australia.

“Affordability is now being stretched in all our major cities. While it has been the case for a long time that buyers would have to start their housing journey and often stay in an apartment longer in <a href="/new-apartments/sydney-nsw">Sydney</a> because of affordability, the rest of the country is rapidly catching up and this is boosting underlying demand for apartments relative to the past,” Warner said.

“But this trend is being accelerated by current borrowing conditions. Borrowing capacity for most buyers has dropped enormously over the past 18 months and with dwelling prices continuing to rise over this period it has pushed detached houses well beyond the capacity of most first home buyers and indeed many investors.”&nbsp;

Despite positive underlying demand trends, we are building fewer apartments rather than more and conditions remain tough for developers, JLL’s Head of Residential Development Valuations, Bill Fatouros, says.

“Developers have faced one hurdle after another over recent years,” Fatouros said.

“First it was the dramatic slowing of domestic and foreign investor demand denting off-the-plan sales, then we had COVID hit and just as demand prospects improved recently, construction costs sky-rocketed and dented project feasibilities. But at some point, the worm has to turn quickly. There is now very little existing apartment stock available for sale and this means buyers will have no option but to buy off-the-plan and to pay the higher prices required to justify higher build costs."

JLL’s report notes that this is already happening at the higher end of the market for luxury boutique projects where downsizers have continued to drive strong demand.

“Downsizers have generally already done very well out of the housing market and the large amounts of equity they have accumulated means rising interest rates have not had the same impacts,&nbsp;Fatouros added.

Downsizers have been discerning buyers willing to pay the higher prices necessary to compensate for higher build costs in order to secure exactly what they want.

“We firmly believe it is inevitable that the same will happen across the broader apartment market and that a jump in pricing will have to happen to make mass-market projects viable. The recent acceleration in existing apartment price growth in many markets suggests this is getting closer to fruition."

<h2>Affordability the only constraint on rental growth</h2>

JLL’s report also highlights that with very little mass-market apartment stock being developed, there will not be any real supply relief for the already tight rental market where vacancy is already sitting at around one per cent across Australia.

“There are more Build-to-Rent (BTR) completions due over the next few years, particularly in <a href="/new-apartments/melbourne-vic">Melbourne</a>, but the numbers are still small compared to the drop in the overall apartment supply level and it will do very little to alleviate rental market pressures – even in Melbourne,” Warner said.

“The only real constraint we can see on rental growth over the foreseeable future is affordability. This is already being tested in some markets and we are already seeing tentative evidence of a slowing from the break-neck speed of the last few years. But over the medium-term we expect wage growth to become the speed limit for rental growth."

Supported by ongoing low supply levels, apartment pre-sales rates can do little else but rise strongly the next few years


Apartment pre-sales and prices set to rise: JLL

Coronation Property Group&nbsp;has announced an exciting new list of ‘Eat Street’ tenants at Mason &amp; Main, including the renowned inner-city ‘butcher-restaurant,’ Macelleria - providing a superior, new dining precinct for Sydney’s west.

Located in the revitalised Merrylands CBD, Mason &amp; Main features 434 Build-to-Rent (BTR) and 415 Build-to-Sell (BTS) apartments, in studio, one, two and three-bed configurations.

Designed by global architects <a href="/architects/woods-bagot">Woods Bagot</a>, the project offers premium resident amenities such as a resort-style swimming pool, rooftop gardens, a sauna, private dining rooms, cinema rooms and co-working spaces. &nbsp;

Eat Street is part of Mason &amp; Main’s 9,000 sqm dining and retail precinct, comprising more than 25 retail occupants including <a href="/news/nsw/one-playground-expands-into-coronations-mason-main-merrylands-masterplanned-precinct">the first One Playground gym to open in Western Sydney</a>, a childcare centre as well as beauty and health services.&nbsp;

[smartcode_project:default project_id=31751 project_image_fid=161005]

The new dining hub will see inner-city food favourites Macelleria, Peanut Butter Bar, Yuzu Dining, San Churro and Oakberry open their doors alongside a range of exciting new locally inspired eateries including Mase &amp; Co, Hayat Turkish, and Iftar Lebanese to deliver a true ‘destination dining’ experience.

Founder of Macelleria, Peter Zaidan said they have a strong Western Sydney customer base who regularly travels to our Newtown and Bondi stores.

"We’re thrilled to offer those regulars a local option that they can share with their family and friends,"&nbsp;Zaidan said.

“Not only is the location very central with plenty of parking options and close to public transport but we’re very excited about the opportunity to help put Merrylands on the food map."

Macelleria’s innovative restaurant will offer a large selection of high-grade meat cuts, signature sausages, skewers, and burgers. While poultry, seafood, vegetarian options, and freshly baked bread on the premises, round out the menu.

Featuring pedestrian-only laneways, 147 dedicated retail car spaces, EV charging stations and GoGet car share services - all just 350 metres from major public transport networks, the Mason &amp; Main dining and retail precinct will provide a lifestyle destination not yet seen in the area.

[smartcode_project:default project_id=31751 project_image_fid=161017]

Coronation’s Owner, Joe Nahas, said the team was delighted to welcome such a high calibre of retail tenants to <a href="/buildings/mason-main-merrylands-245-merrylands-road-merrylands-nsw-2160">Mason &amp; Main</a>.

“We see Eat Street as a significant opportunity to bring Mason &amp; Main residents, the local community, families and friends together in a shared experience that’s usually reserved for the inner city. Our vision is to introduce diverse dining options to <a href="/developments/merrylands-nsw-2160">Merrylands</a>, for everyone to enjoy."

Rosemary Georges and Maria Moussa, co-owners of local Mase Café on McFarlane Street, are opening a second site within Mason &amp; Main’s Eat Street. Already popular with locals, the new Mase &amp; Co restaurant will offer a modern style menu with a Mediterranean twist, including a fully functional bar.

“We are delighted to join Eat Street and expand on our existing café which has been successfully operating in Merrylands for the past five years - this is doing wonderful things for the local area, and we wanted to be a part of that,” Georges said.

<a href="/developers/coronation-property">Coronation</a>&nbsp;will open Eat Street in September this year.

[smartcode_project_cta:default project_id=31751]

The new dining hub will see inner-city food favourites Macelleria, Peanut Butter Bar, Yuzu Dining, San Churro and Oakberry open their doors alongside a range of exciting new locally inspired eateries including Mase & Co, Hayat Turkish, and Iftar Lebanese to deliver a true ‘destination dining’ experience

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