A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Joel Robinson

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

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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{yoogallery src=[images/stories/july19cullen]}
68 Cullen Bay Crescent, Larrakeyah, NT, 0820
In the Darwin suburb of Cullen Bay, this six-bedroom, three-bathroom house would be perfect for yachties and those who love messing about in boats, as it has marina frontage and a 10-metre berth. The lagoon-style pool overlooks the marina, and the house has low-maintenance tropical gardens. The 931-square-metre property is within walking distance of many of Darwin's attractions. The house is being marketed by<a href="https://www.raywhite.com/nt/cullen-bay/493227/" title="Ray White Darwin" target="_blank"> Ray White Darwin</a> agent Warren Pope with price hopes of $2.5 million plus. 
 
{module 238}
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cknowlton-QnEa6ntUYP

Messing about in boats in Cullen Bay

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As food guru Jamie Oliver prepares for the September opening of his new restaurant at leased premises in 107 Pitt Street in the Sydney CBD, demand for retail space from restaurants, cafes and takeaways continues to remain strong and defy the overall retail trend.
Oliver is currently refitting his first Jamie's Italian in Australia, which will cater to up to 200 guests at the Pitt Street location.
According to CB Richard Ellis agents James McNeill and Leif Olson, the arrival of the English restaurateur will enhance the city's array of international eateries.
In its latest report on the NSW retail market, CBRE notes that the café, restaurant and takeaway subsector has achieved annual sales growth of 5.8% for the year to June 2011.
In contrast to the fashion sector, down 5.2% for the year, Olson says the food sector is up as NSW households have “wined and dined their way through the first half of the year”.
As a result CBRE retail is fielding “a number of enquiries from noted Sydney establishments seeking opportunities in the lower north shore and eastern suburbs”.
This growth has come against a backdrop of lacklustre overall retail growth in Sydney, with prime rents falling by 11% over the previous year to an indicative $2,473 per square metre and further rental reductions expected in the short term as national retailers closed underperforming stores to focus on Pitt Street Mall locations.
BlackRock Property Trust, landlord of the building at 107 Pitt Street, where Oliver has lease space, notes that it has been successful in concluding leasing transactions throughout the March quarter of 2011.
The café, restaurant and takeaway subsector is further benefiting from City of Sydney’s introduction of the Liquor Amendment (Small Bars and Restaurants) Bill 2007, designed to stimulate the CBD’s laneways.
“Sydney’s western corridor is a particularly popular small bar precinct, as the location captures foot traffic from the surrounding offices. Among recent additions to the western corridor are Shirt Bar and Grandmas Bar,” McNeill says.
Commenting on the launch of his Sydney eatery, Oliver says Australia has always been close to his heart since he first visited around a decade ago.
“I get a lot of wonderful tweets and emails from Australians who have eaten at Jamie’s Italians in the UK, so now to have a Jamie’s Italian open in Sydney is really special for me,” he says.
Other notable food retail openings include Westfield's Food on Five food court in the new Pitt Street Mall flagship mall, Cuban restaurant and bar La Bodeguita Del Medio at 125 York Street and Stitch Bar at 61 York Street.
Development applications have also been lodged for a new Fratelli Fresh in the basement of the Burns Philp building at 7 Bridge Street and a new Pie Face store at the corner of Bridge and George streets.
John Bowie Wilson, director of CBD sales and investment services at Colliers, told the Sydney Morning Herald the expansion of the food and beverage offerings was ensuring owners of inner-city buildings were able to fill vacancies left by traditional retailers.
"While traditional retailers are losing market share to websites, food and beverage operators still need shopfronts," he says "The lower price point of cafes and restaurants and the non-discretionary nature of food sales mean that turnover has not declined to the extent of other retail categories.”
Other recent sales of restaurants and cafes have included the Spicy Sichuan Restaurant in Cunningham Street for $4.3 million; Fratelli Fresh store and cafe in Hickson Road for $3 million; 8 Quay Street in Haymarket for $8.2 million and the Belgium Beer Cafe in Harrington Street for $4.2 million.
Colliers has also noted increasing inquiry levels from international operators who viewed the Sydney economy as more robust than other global centres.
According to the CBRE report, consumers are continuing to adopt a “wait and see” approach to retail expenditure with fashion retailing, one of the harder hit subsectors.</body></html>

lschlesinger-FZcF9M3vE6

Jamie Oliver's Sydney premises highlights appetite for eatery space

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An oversupply of grapes, changes in retail conditions, overseas competition and the strong Australian dollar are the key reasons Cheviot Kirribilly Vineyard Property Group (CKP) is selling its 953-hectare South Australian vineyard portfolio.
Cheviot is one of several vineyard owners forced to sell this year due to the deteriorating market conditions.
“When CKP group … was conceived, there was a greater equilibrium of grape supply and demand and the ability to sell fruit on multi-year supply contracts to established winemakers,” Cheviot said in an ASX note dated July 13.
According to CKP, the return-on-capital model that the industry has operated under for the past 15 years has broken down.
“In crude terms grape growers must now ‘find a route to market’ for their products,” Chevriot says in its ASX note.
The properties are being marketed by Colliers agents Tim Altschwager and Nick Dean, with expressions of interest closing on August 16.
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" colspan="4" width="609">
Cheviot Kirribilly Vineyard Portfolio
</td>
</tr>
<tr>
<td valign="bottom" width="180">
Property
</td>
<td valign="bottom" width="128">
Region
</td>
<td valign="bottom" width="150">
Total Area (approx.)
</td>
<td valign="bottom" width="150">
Vineyard Area (approx.)
</td>
</tr>
<tr>
<td width="180">
Kirribilly Estate Stage 1
</td>
<td width="128">
Clare Valley
</td>
<td width="150">
251ha
</td>
<td width="150">
214.81ha
</td>
</tr>
<tr>
<td width="180">
Tullymore Vineyard
</td>
<td width="128">
Clare Valley
</td>
<td width="150">
199.90ha
</td>
<td width="150">
148.83ha
</td>
</tr>
<tr>
<td width="180">
Angas Creek Vineyard Stage 1
</td>
<td width="128">
Adelaide Hills
</td>
<td width="150">
78.01ha
</td>
<td width="150">
59.48ha
</td>
</tr>
<tr>
<td width="180">
Angas Creek Vineyard Stage 2
</td>
<td width="128">
Adelaide Hills
</td>
<td width="150">
64.56ha
</td>
<td width="150">
48.34ha
</td>
</tr>
<tr>
<td width="180">
Birchmores Vineyard
</td>
<td width="128">
Langhorne Creek
</td>
<td width="150">
293.44ha
</td>
<td width="150">
268.15ha
</td>
</tr>
<tr>
<td width="180">
Woodstock Road Vineyard
</td>
<td width="128">
Langhorne Creek
</td>
<td width="150">
66.80ha
</td>
<td width="150">
41.17ha
</td>
</tr>
<tr>
<td width="180">
TOTAL PORTFOLIO
</td>
<td width="128">
 
</td>
<td width="150">
953ha
</td>
<td width="150">
780ha
</td>
</tr>
</tbody></table>
Source: Colliers
“Due to the quality of the portfolio and premium locations within regional South Australia, we expect strong interest from offshore investors, particularly those that are looking for an established vineyard asset, strategically positioned in relation to the other tourist destinations including the city of Adelaide,” Altschwager says.
In the week since beginning to field expressions of interest, Dean says inquiries have been restricted to local industry participants.
As a general rule, he says vineyards have been selling at discounts of 30% to 50% off the values achieved four years ago.
CKP has not disclosed sales prices or valuations but expects “sales prices will be well below the last public valuations provided in June 2009”.
In June 2009 Knight Frank valued the six vineyards at $42.3 million, a reduction of $3.2 million (7%) due to conditions prevailing in the industry at the time.
Dean says the market is now improving but it is still a buyers’ market.
“The market is coming off a very low base. This time last year there was no market,” he says.
“There is an important segment of buyers who think things won’t get any worse.”
The CKP portfolio consists of six vineyards, the biggest being the 293-hectare Birchmores Vineyard in Langhorne Creek.
The portfolio is for sale by private treaty either as a whole or as separate vineyards, with expressions of interest closing August 16 at 11am.
Each of the vineyards have natural (Adelaide Hills) or licensed water rights (Clare and Langhorne Creek). Dean says location and water assets are important to investors.
“The Langhorne Creek vineyards are highly efficient producers of good-quality fruit, the Adelaide Hills vineyards are renowned for their chardonnay and sauvignon blancs, while the Clare Valley vineyards are efficient producers based in cool climates,” Dean says.
Dean and Altschwager would not reveal price expectations for the South Australian properties, but price expectations for the 45-hectare Pettavel vineyard in Victoria, being sold by Knight Frank agents Michael Hede and Leigh Morris on behalf of receivers, are between $5 million and $6 million
Prices of between $2 million and $3 million are expected for the 129 hectare Strathmore Vineyard also being sold by Hede and Morris.</body></html>

SA vineyards up for sale as downturn puts the squeeze on wineries

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During a tour of the besieged agricultural districts of the Liverpool Plains, Gunnedah and Armidale in the north of NSW last week, Wentworth MP and opposition spokesman for broadband Malcolm Turnbull has suggested Australians need not worry too much about foreign ownership of farmland.
But Turnbull says they certainly should worry about how rural land is being used.
"The more important question is not the national identity of who owns the land but what they are doing with it," he says.
"Now, if land is being used in a way that undermines the productivity of that land, that puts at risk the water resources, then it's really the use of the land that is the issue."
The rich agricultural district of the Liverpool Plains is currently being challenged by the twin issues of foreign companies and coal mining, with the trigger point being Shenhua Watermark Coal, a subsidiary of the world's biggest coal company, Shenhua Energy, seeking approval for a coalmine that would eventually produce $40 billion tonnes worth of thermal coal for Chinese power stations.
Shenhua Watermark has bought land in the Liverpool Plains for up to $8000 per hectare. The company has bought significant farmland from 34 vendors ranging in price between $1.1 million to $18.3 million between June 2009 and December last year, totalling $160 million. There were also several properties bought in the town of Gunnedah for between $190,000 and $550,000.
The company paid an upfront $300 million to the NSW government for a minerals exploration licence covering 19,500 hectares.
The company has promised to confine its activities to hill areas and not to mine within 150 metres of the productive "black soil" farming country.
Turnbull says Australia's understanding of its groundwater resources is embarrassingly inadequate. He says Australia must gather more science on its underground aquifers, or run the risk of destroying them for good.
"The problem is we have not done nearly enough research on it, and interfering with ground water resources without really understanding them is like jumping into a pool of water head first without knowing how deep it is," he told ABC radio rural reporter Catherine Clifford.
"It's very, very dangerous, and you've got to be prudent, and you've got to be careful, and you've got to do your homework first."
Turnbull says foreign companies have owned agricultural land in Australia since European settlement.
But he says when the activity on that land threatens Australia's long-term economic future something has to be done.
In 2007 the federal MP for New England, Tony Windsor, sought a meeting with Federal Water Minister Penny Wong, after the apparent collapse of a Commonwealth commitment to fund a groundwater study of the Liverpool Plains.
Former environment minister Malcolm Turnbull promised stakeholders before the 2007 election was called he would provide almost $5 million for an independent study into the effects of coal mining on ground water aquifers.
Windsor says Turnbull then failed to give a direction to his department after the election.
"Malcolm Turnbull said it was a commitment of government and not an election promise," Windsor says.
"He's subsequently written to the National Water Commission during the campaign saying he'd like to come forward with a proposal, not endorsing the proposal the Liverpool Plains land management people had put before him."
The Liverpool Plains, 450 kilometres north east of Sydney, is considered by many to be the best farming country in the world.
Its fertile black soils have a high water holding capacity with reliable summer and winter rainfall.
Over the past four decades there have only been four occasions where it twice-yearly crop productions have failed.
Its grows a diverse range of crops such as wheat, sorghum, oats, soybeans, barley, corn, sunflowers and cotton.
It has a beef industry. It also produces chickpeas, soybeans, mungbeans, canola, olives, turkeys, chickens, pigs, lamb and wool.
It has been estimated that the Liverpool Plains contribute $332 million to the GDP annually.
The Liverpool Plains also boast an estimated 300 billion tonnes of coal.
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jchancellor-FAypfDUnLy

Be wary of how investors use rural land: Turnbull

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About 15% of first-time property investors on the Gold Coast plan to use their self-managed super funds to buy their first investment properties, according to a recent survey.
Nearly 6% intend to use their SMSFs to purchase the property in its entirety, and about 9% expect to use their super to help supplement other sources of funding, according to Mortgage Choice’s First Time Property Investor survey.
Gold Coast SMSF property investment intentions are head-and-shoulders above any other region in Australia, with just 6% of Sydney investors and 5% of Melbourne investors planning to tap into their super funds when making their first acquisition.
A higher proportion of Gold Coast respondents to the survey were baby boomers (38%), compared with 27% nationally. Generation X was also represented more highly on the Gold Coast (53% of survey respondents, vs. 45% nationally).
One baby boomer respondent living on the Gold Coast says: “I think there will be another super drop in the next 12 to 18 months, so feel property is safer”.
“For many people, the older they become the closer ensuring they have enough super for a comfortable retirement moves to the forefront of their financial concerns,” Mortgage Choice spokeswoman Kristy Sheppard says.
According to the survey, Queensland is the preferred destination for 22% of Australian property investors, followed by Victoria at 21%. NSW ranked a joint third with South Australia and WA at 18%.
Leanne Pilkington, general manager of Laing &amp; Simmons, says high prices in Sydney are driving investors to look to markets like Queensland and Victoria.
“Sydney is so expensive. It’s just not affordable, compared, in particurlar, to Queensland,” she recently told the AFR.
“Investors need to look at other options because they can’t invest in Sydney,” she adds.
According to SMSF administrator Multiport, DIY funds allocation to direct property rose to 14% in March 2011 from 12% at the end of March last year, with residential property gaining traction at the expense of commercial properties such as small offices and industrial warehouses.
A similar study carried out in 2009 did not break down the responses into regions, but found that around 4.5% of first-time investors planned to use their SMSF to either to buy an investment property outright or to help fund its purchase.
In 2011, the overall figure is down slightly to 4%.
The most popular properties sought by first time investors are small houses with between one and three bedrooms, followed by larger houses and one- and two-bedroom units.
The survey accumulated responses from more than 1,000 people who plan to buy an investment property by July 2013.
Click to download 16 Questions Self-Managed Super Fund Trustees Should Ask Before Investing in Property.
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Despite downturn, property still popular for Gold Coast super investors

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{yoogallery src=[images/stories/july18mountbarker]}
24 Old Mount Barker Road, Crafers, SA, 5152
This 1917 country mansion is full of space and period detail. Within walking distance to Stirling Village, the seven-bedroom, four-bathroom house has more than 450 square metres of living space and sympathetically updated old-school charm. The house features 3,300 square metres of English-style gardens, five open fireplaces, an inground solar-heated swimming pool and an extensive wine cellar. It is being sold by <a href="https://www.jamespartners.com.au/Index.cfm?MenuItemID=19675&amp;subject=Home" target="_blank" title="James Partners">First National James Partners</a> agent Chris Robson with hopes of $2.35 million.
 
{module 238}
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Historic sandstone mansion in Crafers

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The decision by ASIC to enforce tougher disclosure requirements on the unlisted property sector has thrown the spotlight on the options for investors looking to include property in their portfolios.
According to David Curtis, portfolio manager at A-REITs specialist Reliance Investment, “current market dynamics” dictate that A-REITs are appealing, particularly to retail investors.
“Ultimately, pricing is the biggest reason,” he says.
“You can buy any number of REITs from big, well-known companies (Westfield, GBPT, Dexus, etc) at a reasonable discount to underlying asset backing. This gives investors a little bit of comfort because they’re buying something they know is worth ‘X’ at only 0.8 of ‘X’”
Criticism of A-REITs as a preferred investment vehicle has come from ASX-listed fund manager Centuria, which claims that listed property trusts do not offer much in the way of diversification and are risky.
Curtis disagrees.
“Absolutely, this was the case during the GFC when A-REITs traded like a general equity, but it’s no longer true.”
Curtis says the “beta profile” of A-REITs, which measures volatility, was very similar to the broader equity sector during the crisis, but this has now changed considerably.
“Beta has gone from 1, when it was trading in line with equities, to 0.5, meaning it is now half as volatile as the broader equity market,” he says.
According to Curtis, a big brand A-REIT like GPT, which makes up about 8% of the total A-REIT sector by market capitalisation, offers retail investors access to one of the best-quality, most diversified portfolios in the country.
On the other hand, he contends that retail investors who put their money in unlisted trusts would normally only be able invest in one or two asset funds.
“These may have leases with one or two tenants, so they are in fact less diversified, generally speaking than if they’d invested in A-REITs,” Curtis says.
A-REITs are like equities, says Centuria
In his criticism of A-REITs, Centuria CEO John McBain says listed property as an asset class behaves like equities. Centuria’s wholly owned Centuria Property Funds has more than $1 billion worth of property under management in 29 unlisted property funds.
“In tracking the market and the index alongside the equities in the portfolio they provide no real diversification should the share market begin to slide, as recent performance figures show,” McBain says.
In addition to offering little in the way of diversification, McBain claims a second issue for investors is the “volatility of returns” generated by A-REITs, which he says are “far higher than unlisted [property trusts]”.
“High volatility means that total returns can be greatly diminished by poor timing of purchases and sales by investors who make decisions driven by strong sentiment – as we have seen in the current market,” McBain says.
“So, while in the case of listed property an investor might have the perceived benefit of lower liquidity risk, other risks such as correlation with a volatile sentiment-driven index [and] with a poorly performing index may well countervail it.”
On the other hand, McBain says the performance of unlisted property, while to an extent reliant on the broader property market, is also dependent on two more rational and controllable factors: the quality of the underlying core assets and, just as critical, the quality of its management.
“It is far less volatile and, historically, has offered much steadier returns than its unlisted counterpart.
“Unaligned to an index, the right unlisted vehicle can offer investors the benefit of genuine diversification throughout the investment cycle,” he says.
Current performance
A good benchmark of the current performance of the unlisted sector is the Mercer/IPD Pooled Property Fund Index, which tracks the performance of 17 property funds with a net asset value of $37.2 billion.
Over the quarter to June 2011, the index delivered a total return of 2.2%. Over the year to June 2011, total return was 9.8% after gearing and fees. Of this, distributed income was 6.1% and capital return was 3.6%.
Diversified funds were the top performers, with a total return of 10.5% for the year, followed by office sector funds with 9.7%, retail funds with 9.1% and industrial funds posting 8.9%.
Overall, the average annual distribution yield for the core wholesale property sector as at June 2011 remained steady 5.8%, comparing favourably with the 10-year Australian Government Bond rate of 4.7%.
Commenting on the performance of the sector in the June quarter, Anthony De Francesco, managing director of IPD Australia and New Zealand, said the result “confirms a stabilisation in investment performance for the unlisted core wholesale property sector”.
According to Russell Investments, the outlook for REITs is modest, reflecting a stabilising property market.
In its June market report, the investment firm says the Australian listed real estate sector is currently trading an average discount to net tangible assets of -3.3%
Investment should suit the investor
Curtis concedes that there are both pros and cons to invest in either unlisted or listed property trusts.
“A benefit of A-REITs is that they are liquid, meaning you can buy and sell them at any point when the stock exchange is open for trading.
“For some investors this is really important,” he says.
The downside though is that prices do change and some investors don’t like the volatility.
“Others don’t care about volatility. It all comes down to your personal preferences,” he says.
As for unlisted trusts, he agrees with McBain that the price does not move around as much, but the down side is they are illiquid.
“It can be difficult to get your money out if your circumstances change,” he says.
Such circumstances came to fruition during the GFC, when many investors found they could not withdraw their investments due to funds being frozen.
“This is still the case for some unlisted funds,” Curtis says.
At the end of the day, the key is to have a balanced portfolio and be aware of what you are buying.
“At any point, one will be more appealing than other,” he says. At the moment he believes A-REITs have the edge.
McBain disagrees: “Unaligned to an index, the right unlisted vehicle can offer investors the benefit of genuine diversification throughout the investment cycle.”</body></html>

Listed and unlisted property trusts offer investors different incentives

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Westpac expects the RBA to cut interest rates by 25 basis points in December, with further cuts expected during 2012 to take the official cash rate down to 3.75% by 2013.
The bank’s expectations are more conservative than interest rate markets, which it says are pricing in a 25-basic-point rate cut by October and a 50% chance of a follow-on move by February next year.
The bank is not alone in its dramatic shift in interest rate expectations.
ANZ now also expects the RBA will not need to raise the cash rate again before early 2012 and says the market is now pricing in rate cuts in 2011 – “a dramatic change from a couple of weeks ago”.
The expectation of a freeze on rates is based on a “bigger than anticipated loss of momentum in the non-resource sectors of the economy and especially in the labour market”.
The change in sentiment follows the release of the Westpac-Melbourne Institute Consumer House, with its price expectations index falling sharply from 37.8 in April to 15.3 in July.
Although most consumers still expect prices to rise over the next year, consumers are much less positive, with the index at its lowest level since May 2009.
Overall, 42% of consumers expect house prices to rise over the next year – the proportion of optimists dropping below the 50% mark for the first time since May 2009, when it came in at just 33%.
Just over 32% of consumers now expect prices to remain steady, with 26% expecting declines – up from 17% in April and the highest proportion since May 2009 when just over a third of consumers expected price falls.
"Consumers haven't turned pessimistic on prices but the shift in momentum bears close attention given the fragile consumer mood more generally," Westpac senior economist Matthew Hassan told The Sydney Morning Herald.
Westpac says the first rate cut is likely to be influenced by offshore factors.
“The catalyst for the first move is likely to be further adverse developments in Europe and their knock-on effects on global financial markets. Among the many other side-effects will be an ongoing negative impact on business and consumer confidence in Australia that is likely to become more pervasive as conditions deteriorate,” writes Westpac chief economist Bill Evans in the bank’s latest interest rate bulletin.
“I recently visited fund managers and central banks in Europe and could not find anyone who expected the current crisis to be resolved without an extended period of financial market turmoil.”
However, he does not expect the cut to be a one-off.
“Interest rates are too high in Australia, given the state of the non-mining sectors of the domestic economy, and a downward adjustment is required to avert a damaging round of contraction. This rate adjustment is likely to take a similar form to previous easing cycles,” he says.
There have been three easing cycles since the deep recession of the early 1990s:
<ul>
<li>July 1996–July 1997 (–250bps); </li>
<li>February 2001–December 2001 (–200bps) and September 2008–April 2009 (–425bps).</li>
</ul>
“These cycles were short and sharp and delivered a considerably larger cumulative cut than we envisage in the current circumstances,” he says.
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Interest rates heading down in December 2011: Westpac

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Investing in a serviced apartment in a major CBD location is a way for residential investors to get a foothold in a hybrid commercial asset.
The most recent tourist accommodation figures put out by the ABS paint a picture of strongly performing serviced apartment markets in the major centres, while those in regional areas appear to struggle.
In Sydney, Melbourne, Brisbane and Perth occupancy rates are all above 80 – higher than their respective state occupancy rates and well above the national average of 66%.
A growing number of serviced apartment guests are spending more money per room per night in CBD apartments than they were a year ago.
This current rise comes on top of extraordinary growth in the sector’s market share over the past decade, with serviced apartments now accounting for 25% of all room nights sold throughout Australia each year, according to research by CBRE.
Demand from the corporate market has fostered more recent development in urban areas.
The CBRE Hotels Traveller Accommodation Development Database shows serviced apartments now represent, on average, just under 70% of all new traveller accommodation to enter the market over the past decade.
Market growth is set to continue with serviced apartments representing 75% of new projects currently planned or under construction.
CBRE Hotels Queensland associate director Paul Nyholt says the growing popularity of the sector has attracted considerable interest from developers – particularly given the current funding constraints in regard to traditional hotel product.
“At a time when it is difficult – if not impossible – to economically support the construction of a new build hotel in one line, serviced apartments are bridging the feasibility divide,” Nyholt says.
Headwinds 
 
Despite the popularity of serviced apartments with business travellers and leisure seekers, investing in the sector presents its challenges.
While serviced apartments represent a relatively cheap investment opportunity – one-bedroom apartments can be bought with spare change from $200,000; two-beds for under $300,000, according to CBRE analysis of the sector – serviced apartments have the potential to underperform, can involve potentially complex strata agreements and are subject to the fluctuations of tourist demand.
“Investors need to understand that they are purchasing an investment that relies on the dynamics of the traveller accommodation market and the ability of that market, the operator and the structure of the offering to support the purchase decision,” says CBRE Hotels regional director Ken Smith
“To counter the poor investment performance of many past projects and to support the sustainability of the sector, future developments will need to be economically supportable not just successfully marketed,” he says.
Serviced apartments must also compete with hotels for clientele.
According to Smith, they can be at a disadvantage due to limited marketing and poorer brand recognition compared to the internationally branded hotels.
Many international markets, he says, are unaware of the serviced apartment product.
Furthermore, while there are relatively clear classifications of hotels to aid consumer choice, Smith says a “lack of consistency and clarity in the categorisation of serviced apartments leads to inconsistently-rated properties and subsequently consumer confusion”.
Searches by Property Observer of cheaper serviced apartments for sale uncovers many that appear to be in shabbier, older-looking buildings, suggesting the potential for higher maintenance and upkeep costs.
Future outlook
 
The most comprehensive survey of the serviced apartment market to date has been carried out by IBIS World.
It forecasts growth for the sector of 1.7% from 2011 to 2016 compared with 3.7% over the previous five years.
Investment in the sector is set to remain strong due to increasing market demand and preferences for serviced apartments as they offer more space and facilities for guests over hotel and motel accommodation.
Guaranteed investor returns on apartment purchases are estimated at 7.5% in 2010-11, according to IBIS World.
The researcher says that while rental fees and utility costs are high and increasing due to increased land costs in recent years, and utility fees are rising, the cost structure of a serviced apartment is not expected to change significantly over the next five years.
Investors, though, should be aware of a number of challenges facing the sector.
“The serviced apartments industry is sensitive to factors that affect domestic travel patterns and the level of international visitors arriving in Australia, such as real household disposable income changes and travel availability time. Another factor is the dollar,” the IBIS World report says.
IBIS World identifies business travellers as key market for serviced apartments – a travel demographic affected by economic conditions, business sentiment, business profit growth and use of communications technology as substitutes for travel.
Like CBRE, the IBIS World report also highlights competition from the hotel sector and says serviced apartments are sensitive to the supply of total accommodation rooms including hotels rooms, which can affect room tariffs in both sectors.
Other global and economic factors including GDP growth in East Asia, the US and Europe and the prevailing consumer sentiment can have significant impacts on the returns generated for investors.
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Growth tipped for CBD apartments, but investors warned to tread carefully

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Mortgage brokers have interpreted a move by St George Bank to reverse its decision to withdraw trail commissions as a sign that lenders are looking to strengthen relationships with the distribution channel.
The bank has decided to reintroduce a 15-basis-point, year-one trail commission.
St George has also increased its upfront component from 50 basis points to 65 basis points, as long as at least 80% of a broker's loan applications are accepted by the bank.
In September 2010, the bank announced it would strip its 0.15% first year trail commission payment altogether, in a move designed to reward elite brokers with higher upfront payments.
The backflip on trail commission has been welcomed by Aussie Home Loans and Mortgage Choice – two of the biggest players in the broker space.
Aussie executive director James Symond told The Australian he had seen a “noticeable difference” in the way lenders interacted with brokers in the last six months. He expects other lenders to look at their credit criteria and commission structure in the current flat market.
Mortgage Choice CEO Michael Russell said the move was pleasing.
"The message from the bank is, we really value the relationship we have with brokers and understand the pain of losing first-year trails," he says.
The changes will see St George approaching the rate it paid brokers prior to the GFC.
The major banks asserted their dominance of the market and the collapse of the non-bank sector to slash upfront broker commissions and in most cases, remove the trail component.
St George, a subsidiary of Westpac, has been almost entirely reliant on mortgage brokers to grow its mortgage book outside its NSW market.
Westpac was the first major bank to reduce broker commissions, in April 2008, with the other major lenders following suit soon after.
Mortgage brokers have been battered by increasing headwinds since the GFC, with the sector undergoing massive consolidation, a reduction in commissions and the introduction of a national licensing scheme.
Despite this, brokers remain a key distribution channel for banks, accounting for up to 40% of their mortgage book originations.
Figures put out by the Market Intelligence Strategy Centre in July revealed the number of mortgage broking firms operating in Australia had contracted by 26% in the year to March 2011.
The figures showed there were 119 broker aggregators and firms, with the total value of business flowing through to those brokers dropping to $11.6 billion due to poor housing construction conditions and a weak economy.
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