New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

Joel Robinson

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

The long-planned transformation of Brisbane's historic Shafston Estate has taken another major step, with Capella Hotel Group announced as the luxury hospitality partner behind what will become Brisbane's first branded residences.

The project, to be known as Capella Residences Brisbane, is being delivered by Verso Projects at the landmark Kangaroo Point riverfront estate, with completion targeted for 2029.

The announcement follows a series of planning changes to the project over recent years. The site was originally approved in 2023 for a 15-level, 37-apartment development designed by Rothelowman for Burgundy Group before Verso Projects took over the 10,070 sqm riverfront holding and lodged revised plans with Kerry Hill Architects to increase the development to a 25-level tower with 51 apartments.

The latest announcement confirms Capella Hotel Group will bring its branded residential offering to the project, marking just the second Capella Residences development globally after Seoul, and the group's first branded residential project in Australia.

The <a href="https://www.apartments.com.au/new-apartments/23-castlebar-street-kangaroo-point-qld-4169">Castlebar Street development</a> will centre around the restoration of the heritage-listed Shafston House, one of Brisbane's oldest residences, originally constructed in 1851 by Reverend Robert Creyke as a single-storey cottage known as Ravenscott.

<img alt="Capella" data-entity-type="file" data-entity-uuid="2b9f4ce5-638f-4d6b-8082-3ca7e4b75fca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-09%20at%207.20.41%E2%80%AFAM.png?VersionId=f7aeqsW_DzOJI4FymWb3lD8NptSfsP7q" />

Capella said the project aligns with its focus on heritage-led developments, with the Brisbane estate combining the restored historic residence with a new luxury apartment tower and hospitality-inspired resident amenities.

Residents will have access to the Capella Living Room, a concierge-led communal space inspired by the group's luxury hotels, alongside landscaped gardens, six swimming pools, wellness and recreation facilities.

The broader estate will also include two riverfront homes, a six-berth private marina, porte cochère arrival experience, secure basement parking and a new section of public riverwalk along the Brisbane River frontage.

The heritage Postal Depot Building will also be retained and repurposed as a guest house, in line with the revised development plans.

The project represents another evolution for the site, which Kerry Hill Architects previously described as a rare opportunity to restore one of Brisbane's most significant heritage estates while creating a new benchmark for apartment living.

"The Shafston Estate provides a once-in-a-generation opportunity to restore one of Brisbane's finest heritage precincts and to reinstate residential use as a unique site perched on the edge of Kangaroo Point," Kerry Hill Architects said in its Urban Context Report accompanying the planning submission.

"The project will celebrate excellence in sub-tropical residential design, setting a new benchmark for vertical living in Brisbane."

Verso Projects, which now has an $8.5 billion development pipeline spanning more than 6,000 dwellings across apartments, townhouses, retail and commercial projects, said the partnership with Capella would elevate the development beyond a traditional residential project.

"We feel honoured to be restoring Shafston Estate to its former glory, elevating it to new heights of luxury and excellence underpinned by Capella's distinctive service ethos and design philosophy, and making it a standout landmark in Brisbane," Verso Projects CEO Steve Laffey said.

"By partnering with Capella, globally recognised for its refined approach to luxury hospitality and deep respect for cultural and historical context, we will elevate this project beyond a residential offering into a world-class destination."

Capella Hotel Group President Roland Fasel said Brisbane's emergence as a global city made it the right location for the company's Australian residential debut.

"Brisbane is a city on the cusp of something remarkable, and Capella Residences is our commitment to being part of that story," Fasel said.

"The Capella residential experience is more than luxury. It is about a sense of belonging to a place with deep meaning."

Private appointments have now opened for the project, with a display suite expected to open in late 2026 ahead of the planned 2029 completion.

Capella to launch Brisbane's first branded residences at Shafston House, Kangaroo Point

Lewis Land's latest apartment release within its <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan is targeting one of the Gold Coast's fastest-growing buyer groups, with almost a third of apartments at Solis priced below $1 million.

The seven-storey building at Biggera Waters will comprise 91 apartments, including 24 one-bedroom residences starting from $778,000, a price point Lewis Land says is aimed squarely at first home buyers struggling to enter the Gold Coast market.

<img alt="Harbour Shires" data-entity-type="file" data-entity-uuid="e7486e37-22f6-4c92-b212-9b0622070b8f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.34%E2%80%AFAM.png?VersionId=W8MJwJUCf6HkIyl_EVSksnd.QI6MZryY" />

<a href="https://www.apartments.com.au/developers/lewis-land-group">Lewis Land</a> Head of Development Michael Long said the developer deliberately allocated a significant proportion of the project to more affordable apartment types.

"First home buyers have been priced out of many parts of the Gold Coast, and we saw a clear opportunity to address this and play our part in a longer-term housing solution," Long said.

"That's why 24 of the 91 apartments being delivered at Solis have been designed and priced for the city's next generation of homeowners, quality one-bedroom apartments, half of which include an additional multipurpose room to maximise space and flexibility.

"This approach places 30 per cent of apartments in Solis under $1 million, and with close proximity to Harbour Town's future light rail extension connecting residents to the city's major employment and knowledge hubs, it's a win for buyers looking to secure their first property."

<img alt="Sores" data-entity-type="file" data-entity-uuid="550526d3-73ba-4710-9739-c5f4294a30ef" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-08%20at%209.09.29%E2%80%AFAM.png?VersionId=cQQdXHt9wS0UXwZEm5Py5bH_3kAmzyhu" />

Designed by BDA Architecture, Solis will deliver a mix of one, two and three-bedroom apartments, with residences ranging up to 232 sqm. Apartments feature generous balconies and contemporary finishes, while residents will have access to Harbour Shores' lagoon pool, clubhouse, tennis court, gym, yoga studio and sauna.

The focus on first home buyers resonated with purchaser Holly Humphreys, who said she and her boyfriend spent more than a year searching for their first property before shifting their attention from houses to apartments.

"We fell in love with the first house we bid on and got our hopes up, but after repeated knockbacks we learned not to get too attached," Humphreys said.

"We offered at the high end of price guides, but sales kept going even higher. That's where we really struggled and we needed to re-evaluate our budget and our expectations. Standalone houses were off the table, and we pivoted to apartments and townhouses."

Humphreys said it was encouraging to see developers recognising the growing demand from first home buyers.

"There's a growing number of young buyers looking to enter the market earlier because they understand that getting in now can make a real difference as prices continue to rise," she said.

"It's fantastic to see a developer recognise this and then actively take measures to deliver an apartment with us in mind."

Solis is the first development planned within the second stage of the Harbour Shores masterplan, with early works expected to commence in September 2026.

[smartcode_project_cta:default project_id=113271]

Lewis Land targets first home buyers at latest Harbour Shores release, Solis

Luxury apartment developer Abadeen has recorded $19.25 million in apartment sales across two of its Lower North Shore developments in the lead-up to the end of the financial year, headlined by the sale of a $6.75 million penthouse at <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-5-rodborough-avenue-crows-nest-nsw-2065">KOYO in Crows Nest.</a>

The transactions also included the sale of a newly completed three-bedroom apartment at <a href="https://www.apartments.com.au/buildings/park-residences-cremorne-2-sutherland-street-cremorne-nsw-2090">Park Residences in Cremorne</a> for $6.35 million, with the residence selling shortly after the project's first public inspections following completion.

The sales come as completed, owner-occupier-focused apartments continue to attract strong demand across Sydney's Lower North Shore, particularly from buyers looking for certainty and immediate occupancy.

The penthouse at KOYO spans 491 sqm across a single level and was designed by architect Koichi Takada. The development is one of Abadeen's flagship boutique projects in Crows Nest.

[smartcode_project:default project_id=108800 project_image_fid=370093]

Abadeen Executive Chairman and Founder Justin Brown said buyer activity lifted noticeably in the lead-up to the end of the financial year.

"We saw a clear increase in enquiry levels, inspection numbers and buyer engagement across our completed projects leading into the end of the financial year," Brown said.

"Buyers have become far more decisive over the past six months. The combination of improving confidence, limited supply and the ability to physically inspect completed residences is creating strong competition for premium apartments in the best locations."

Brown says the&nbsp;response to Park Residences following completion has been particularly strong.

"Buyers want certainty and are responding positively to the opportunity to walk through a finished product, inspect the quality firsthand and move in immediately," Brown suggested.

"Projects such as Park Residences and KOYO demonstrate that when the product is exceptional and the location is irreplaceable, buyers are prepared to act quickly."

[smartcode_project:default project_id=114246 project_image_fid=370116]

Abadeen CEO Joe Tack said quality continued to differentiate projects in the current market.

"Today's buyers are incredibly discerning," Tack said.

"They are seeking larger floorplans, premium finishes, walkability, lifestyle amenity and confidence in the developer delivering the project. Well-designed boutique developments continue to outperform because they offer something genuinely difficult to replace.

"The enquiry we are seeing across our completed and recently completed Lower North Shore portfolio is very encouraging, and we expect this momentum to continue into spring."

The sales follow increased enquiry across Abadeen's Lower North Shore portfolio which also includes <a href="https://www.apartments.com.au/buildings/northcote-collective-naremburn-2-northcote-street-naremburn-nsw-2065">Northcote Collective in Naremburn</a> which also completed recently.

KOYO penthouse headlines Abadeen's $19.25 million EOFY sales flurry

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?

Luxury developer-builder <a href="https://www.apartments.com.au/developers/lowe-living">Lowe Living</a> has achieved a new Victorian benchmark for an off-the-plan apartment, with the sale of two penthouses at its ultra-exclusive Maison Savoy development in Brighton.

The two penthouses achieved a combined sale rate of $49,926 per sqm. Both transactions eclipsed the previous identified Victorian off-the-plan price-per-square-metre benchmark, set by the 449 sqm apartment at Como Toorak, which sold at $46,659 per sqm.

[smartcode_project:default project_id=140818 project_image_fid=366473]

<a href="https://www.apartments.com.au/new-apartments/maison-savoy-brighton-150-esplanade-brighton-vic-3186">Maison Savoy</a>, Lowe Living's redevelopment of the former Brighton Savoy Hotel on absolute beachfront land at 150 The Esplanade, Brighton, has gained significant momentum since launching just eight weeks ago. Around 30 per cent of the project's 19 residences have already been secured, generating approximately $45 million in sales.

"Securing two of the three penthouse sales at this stage, within eight weeks of launching to market speaks to the confidence our clients place in Lowe Living," Lowe Living co-founder Emma Lowe said.

"They know we'll be with them through every stage of the journey, and that assurance is something we've worked hard to earn and never take for granted."

[smartcode_project:default project_id=140818 project_image_fid=366474]

Lowe said Maison Savoy was conceived as a genuine alternative to a prestige Brighton home, combining house-scale proportions with the convenience, security and lock-up-and-leave appeal of apartment living.

Lowe Living co-founder Tim Lowe said the early sales success demonstrated the resilience of Melbourne's prestige market and highlighted the growing demand for house-sized apartments among ultra-high-net-worth buyers.

"The Melbourne market has definitely been tested in recent years, with interest rates and global economic factors all creating a period of uncertainty across the real estate sector. The sales success at Maison Savoy however demonstrates that confidence remains exceptionally strong at the top end of the market.

"The prestige market is being driven by long-term lifestyle decisions rather than short-term market sentiment, which continues to create a level of certainty that befits an absolute beachfront property in a blue-chip location like Brighton.

"Brighton's fundamentals remain among the strongest in Melbourne, with limited new supply, enduring demand from an overwhelmingly local owner-occupier market, and a rare combination of beachfront amenity and proximity to the CBD."

[smartcode_project:default project_id=140818 project_image_fid=374378]

According to Cotality, Brighton remains one of Melbourne's most tightly held prestige suburbs, with an average ownership tenure of 15.3 years for houses and 12.3 years for units, while more than 73 per cent of homes are owner-occupied.

Tim Lowe said selling two of the project's three penthouses so early in the campaign was an uncommon result.

"This sales result is a reflection of quality and understanding the local market. It's incredibly rare to transact the penthouses so early in a sales campaign in any project so to have sold two of the three penthouses at Maison Savoy so soon after launch, all in-house without any external sales agency appointed, is reflective of our careful consideration of our buyers' needs and lifestyle.

"This is knowledge that is accumulated not just from data and demographic analysis, but via a deeply embedded understanding of how this type of buyer wants to live and feel in their home. We pride ourselves on getting to know our clients personally, and over the last 10 years we have been able to refine our product offering by talking one-on-one with our clients about their design and floorplan preferences.

"Being a fully integrated developer-builder with an in-house design and sales team allows us to lead every part of the process and ensure the highest quality of product and service at every touchpoint. It's a really important part of our DNA and the recent sales success at Maison Savoy indicates that our clients and purchasers are resonating with this point of difference.

"It reinforces that demand remains strong for thoughtfully designed residences that offer rarity, lifestyle and long-term value in tightly held locations, which ultimately validates Maison Savoy's positioning as creating a new benchmark for house-scale, wellness-led apartment living on Brighton's beachfront."

&nbsp;

[smartcode_project:default project_id=140818 project_image_fid=366480]

The residences at Maison Savoy start from 295 sqm, with most enjoying uninterrupted views across Port Phillip Bay. The project sits moments from the Brighton Bathing Boxes, Royal Brighton Yacht Club, Middle Brighton Baths and Church Street's retail and dining precinct.

A key feature of the development is its private residents-only bathhouse, curated by the founder of Aurora Spa &amp; Bathhouse and modelled on traditional European bathing rituals and the award-winning Sorrento bathhouse.

The wellness offering includes a hydrotherapy pool, salt room, sauna, steam room, cold plunge pool, foot activation zone and a Vichy rainfall bed, one of only a handful in Australia. Residents will also have access to a Technogym studio, lounge spaces and a dedicated concierge service offering everything from morning coffee delivery and restaurant bookings to dry cleaning and home coordination.

"Wellness-led design has become a defining factor for luxury buyers," Emma Lowe said.

"Purchasers increasingly value homes that enhance wellbeing through thoughtful design, private amenity, privacy and liveability."

The penthouse purchasers are now undertaking a bespoke customisation process curated personally by architect Pete Kennon and the Lowe Living team, one of the developer's signature service offerings.

Construction on the $160 million transformation of the former Brighton Savoy Hotel site commenced last month, with completion expected in early 2028. The project has secured funding from NAB alongside development partner Monark.

Just one penthouse remains available, along with a limited number of two and three-bedroom residences starting from $3.75 million.

Lowe Living currently has eight projects on the market across Melbourne and recently celebrated its 10th anniversary, having grown a $1 billion development pipeline alongside a $350 million construction pipeline.

&nbsp;

[smartcode_project_cta:default project_id=140818]

Lowe Living set new Melbourne off the plan apartment record

<html><body>
The RP Data – Rismark Home Value Index for Melbourne houses reached a new nominal peak in January after a surprisingly strong 3.7% rise. The latest figures surpass the previous peak in October 2010.
The unit index recorded a more moderate 0.2% rise and reached an earlier peak in December 2013.
Not only was a new peak reached but Melbourne recorded the strongest growth of all capital cities. 
First home buyers are at all time lows; this market is being driven by upgraders and investors in the detached houses market and supported by low interest rates.
With very few auctions in January the rise is also a factor of houses sold through private sale, many of which will have been passed in at auction in December.
This current growth phase is being strongly supported by record low interest rates. Ongoing growth may however be moderated by lower consumer confidence in Melbourne.
It should be noted that the index can show natural volatility on a monthly basis as shown by the rises in September, December and now January against a background of reductions in October and November. However the trend is clear, with rises over the quarter and year.
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
 
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rlarocca-zWhvjay44N

Melbourne house values at new peak and leading the nation for growth

<html><body>Australian Property Monitors (APM) has released a list of results from 53 auctions in Melbourne for the weekend of  February 1. <a target="_blank" href="https://www.homepriceguide.com.au/saturday_auction_results/Melbourne.pdf" rel="nofollow" style="font-size: 14px;">Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

po-LsXgBTHBmX

APM's Melbourne auction results for February 1 weekend

<html><body>
In a recent post I looked at the relative performance of Melbourne investment property from <a href="https://www.propertyobserver.com.au/victoria/melbourne-rental-increases-only-moderate-compared-to-sydney-and-yields-have-stabilised/2014012967390?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=ourobservers:adviceandanalysisforreaders" target="_blank">a rental yields perspective</a>.
Examining yields on a suburb basis provides an interesting metric for investors to consider; the best yields are actually found in the most affordable suburbs.
Of the 10 suburbs with the highest rental yield none have a median house value of more than $350,000.
<a href="/news">Dallas</a> and <a href="/news">Melton South</a> share an indicative yield of 5.7%, well above the city wide yield of 3.4%.
The other suburbs in the top 10 are <a href="/news">Meadow Heights</a>, Coolaroo, <a href="/news">Frankston North</a>, <a href="/news">Carrum Downs</a>, <a href="/news">Melton</a>, <a href="/news">Warburton</a>, <a href="/news">Hampton Park</a> and <a href="/news">Cranbourne West</a>.
At the other end of the spectrum the ten suburbs with the lowest yields, from 1.8 to 2.5% all have median house values in excess of a million dollars, <a href="/news">Portsea</a>, <a href="/news">Toorak</a>, Balwyn, <a href="/news">Kew</a>, <a href="/news">Eaglemont</a>, <a href="/news">Elsternwick</a>, <a href="/news">Canterbury</a>, <a href="/news">Balwyn North</a>, <a href="/news">Kew East</a> and <a href="/news">Caulfield North</a>.
It is interesting to note that while the same rule applies in the unit and apartment market there are a few notable exceptions, such as central <a href="/news">Melbourne</a>, which will be examined in a future post.
Robert Larocca is Victorian housing market specialist for <a target="_blank" href="https://rpdata.com/" rel="nofollow">RP Data</a>.
 
</body></html>

Yield or capital gain: Investors face a stark decision

<html><body>
Median house values in the ritzy Melbourne suburb of Toorak jumped by 55.4% in a year, according to the latest data from the Real Estate Institute of Victoria (REIV).
This included a rise of 19.8% in the December 2013 quarter, to ensure its place as the top growth suburb for houses over 2013.
Of the top 20 growth suburbs listed by the <a rel="nofollow" target="_blank" href="https://www.reiv.com.au/~/link.aspx?_id=4FF20028A7DB491F9728F6DB37B82EFD&amp;_z=z" style="font-size: 14px;">REIV</a>, eleven recorded annual price growth for houses of over 25%; with Toorak, Donvale, Balwyn North, Hawthorn East and Wantrina South making up the top five.
The south-east Melbourne suburb of Prahran recorded the highest quarterly growth in house prices, with a median sales price of $1,155,000, up 25.7% over the December 2013 quarter.
Houses in Toorak sell in a wide price range and hence the median price can fluctuate depending on which end of the scale the sales data is predominately drawn from. For example a three bedroom house at <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/19-ruabon-road-toorak/Property-Details-buy-residential-6604097">19 Ruabon Road</a> (pictured below) is currently on the market with price expectations between $820,000 to $900,000.
{yoogallery src=[images/stories/2014/02/10/too1]}
 
By comparison a five bedroom, four bathroom house at <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/12-albany-road-toorak/Property-Details-buy-residential-2741329">12 Albany Road</a> (pictured below) is currently available for $11.5 million.
{yoogallery src=[images/stories/2014/02/10/too2]}
 
Top 10 growth suburbs (annual)
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top"></td>
<td width="204" valign="top">
Suburb
</td>
<td width="92" valign="top">
Dec-13 Median
</td>
<td width="92" valign="top">
Dec-12 Median
</td>
<td width="80" valign="top">
Annual Change
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
1
</td>
<td valign="top">
TOORAK
</td>
<td valign="top">
$2,875,000
</td>
<td valign="top">
$1,850,000
</td>
<td valign="top">
55.4%
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
2
</td>
<td valign="top">
DONVALE
</td>
<td valign="top">
$960,500
</td>
<td valign="top">
$691,500
</td>
<td valign="top">
38.9%
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
3
</td>
<td valign="top">
BALWYN NORTH
</td>
<td valign="top">
$1,355,000
</td>
<td valign="top">
$980,000
</td>
<td valign="top">
38.3%
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
4
</td>
<td valign="top">
HAWTHORN EAST
</td>
<td valign="top">
$1,555,000
</td>
<td valign="top">
$1,132,500
</td>
<td valign="top">
37.3%
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
5
</td>
<td valign="top">
WANTIRNA SOUTH
</td>
<td valign="top">
$690,000
</td>
<td valign="top">
$515,000
</td>
<td valign="top">
34.0%
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
6
</td>
<td valign="top">
SURREY HILLS
</td>
<td valign="top">
$1,392,000
</td>
<td valign="top">
$1,049,000
</td>
<td valign="top">
32.7%
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
7
</td>
<td valign="top">
ST KILDA EAST
</td>
<td valign="top">
$1,071,750
</td>
<td valign="top">
$822,500
</td>
<td valign="top">
30.3%
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
8
</td>
<td valign="top">
WERRIBEE
</td>
<td valign="top">
$350,000
</td>
<td valign="top">
$273,500
</td>
<td valign="top">
28.0%
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
9
</td>
<td valign="top">
PRAHRAN
</td>
<td valign="top">
$1,155,000
</td>
<td valign="top">
$908,000
</td>
<td valign="top">
27.2%
</td>
<td valign="top"></td>
</tr>
<tr>
<td valign="top">
10
</td>
<td valign="top">
RINGWOOD
</td>
<td valign="top">
$600,000
</td>
<td valign="top">
$477,000
</td>
<td valign="top">
25.8%
</td>
<td valign="top"></td>
</tr>
</tbody></table>
Top 10 growth suburbs quarterly on next page. Please click below.
 
<hr class="system-pagebreak">
Top 20 growth suburbs (quarterly)
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top"></td>
<td width="204" valign="top">
Suburb
</td>
<td width="92" valign="top">
Dec-13 Median
</td>
<td width="92" valign="top">
Sep-13 Median
</td>
<td width="80" valign="top">
Quarterly Change
</td>
</tr>
<tr>
<td valign="top">
1
</td>
<td valign="top">
PRAHRAN
</td>
<td valign="top">
$1,155,000
</td>
<td valign="top">
$918,500
</td>
<td valign="top">
25.7%
</td>
</tr>
<tr>
<td valign="top">
2
</td>
<td valign="top">
DONVALE
</td>
<td valign="top">
$960,500
</td>
<td valign="top">
$770,500
</td>
<td valign="top">
24.7%
</td>
</tr>
<tr>
<td valign="top">
3
</td>
<td valign="top">
FITZROY NORTH
</td>
<td valign="top">
$1,177,000
</td>
<td valign="top">
$952,500
</td>
<td valign="top">
23.6%
</td>
</tr>
<tr>
<td valign="top">
4
</td>
<td valign="top">
TOORAK
</td>
<td valign="top">
$2,875,000
</td>
<td valign="top">
$2,400,000
</td>
<td valign="top">
19.8%
</td>
</tr>
<tr>
<td valign="top">
5
</td>
<td valign="top">
WILLIAMSTOWN
</td>
<td valign="top">
$1,000,000
</td>
<td valign="top">
$840,000
</td>
<td valign="top">
19.0%
</td>
</tr>
<tr>
<td valign="top">
6
</td>
<td valign="top">
WANTIRNA SOUTH
</td>
<td valign="top">
$690,000
</td>
<td valign="top">
$580,000
</td>
<td valign="top">
19.0%
</td>
</tr>
<tr>
<td valign="top">
7
</td>
<td valign="top">
NORTHCOTE
</td>
<td valign="top">
$971,500
</td>
<td valign="top">
$841,000
</td>
<td valign="top">
15.5%
</td>
</tr>
<tr>
<td valign="top">
8
</td>
<td valign="top">
HAMPTON
</td>
<td valign="top">
$1,400,000
</td>
<td valign="top">
$1,227,500
</td>
<td valign="top">
14.1%
</td>
</tr>
<tr>
<td valign="top">
9
</td>
<td valign="top">
HAWTHORN
</td>
<td valign="top">
$1,686,000
</td>
<td valign="top">
$1,480,000
</td>
<td valign="top">
13.9%
</td>
</tr>
<tr>
<td valign="top">
10
</td>
<td valign="top">
MOUNT MARTHA
</td>
<td valign="top">
$688,000
</td>
<td valign="top">
$605,000
</td>
<td valign="top">
13.7%
</td>
</tr>
</tbody></table>
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
</body></html>

jake-cSmGT7VXVf

Toorak median house price up a whopping 55.4% over 2013, tops Melbourne growth suburbs: REIV

<html><body>
This dilapidated home last sold for $15,000 in February 2011, and is now on the market for $20,000, a 25% increase in three years should it sell for its asking price. It's the cheapest we could find currently listed, with a detached house, and as such as us asking whether there's a Property Observer reader keen to have a look.
{yoogallery src=[images/stories/2014/01/29/kor]}
<a href="https://www.eldersrealestate.com.au/office/bendigo/residential/buy/property-house-vic-korong-vale-566293" target="_blank">124 Vernon Street, Korong Vale, Victoria</a> is on 990 square metres of land and offers us a fairly sketchy view through the listing photographs of what is actually inside of the “old derelict house”.
With a fireplace, bare floorboards, a water tank, and what looks like it may be a broken roof, it’s certainly one for doing up or rebuilding.
It’s a short drive from gold mining town Wedderburn and the Wychitella Forest Reserve, walking distance to a general store, children’s playground, golf course and local hotel, and is advertised towards “gold fossickers and nature lovers”.
<a href="/news">Korong Value</a> is about two and a half hours from Melbourne CBD and nearby to Lake Donald, a popular hunting ground.
It is listed with Elders Real Estate in Bendigo.
<a href="mailto:jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
 
 
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jduke-EHk3XBmHkn

The cheapest property currently on the market: A $20,000 home

<html><body>
A judge has ruled against an appeal launched by Taras Pty Ltd, the former land owners of a plot that now houses part of the Victoria Gardens complex in Richmond, regarding an objection decision issued by the Commissioner of Taxation.
<hr>
YOU MIGHT ALSO WANT TO READ: <a target="_blank" href="https://www.propertyobserver.com.au/tax/understanding-capital-gains-tax-terry-hayes/2013040353251">Understanding capital gains tax</a> with Terry Hayes Ask Margaret: <a target="_blank" href="https://www.propertyobserver.com.au/tax/ask-margaret-can-i-avoid-cgt-when-i-sell-my-home/2013020759235">Can I avoid CGT when I sell my home?</a>


<hr>
In the ruling, the judgement stated that Taras made a capital gain in the 1999 financial year after it transferred its land to a joint venture involving the adjacent land holders that would become the Victoria Gardens complex. As such, Taras owed capital gains tax for the transaction, and was also liable for an administrative penalty for claiming a net loss for 2000 and 2002.
In 1995, Taras purchased four lots of land at 27/45 Burnley Street, Richmond, running east from Burnley Street to the Yarra River for $8.5 million, including stamp duty. Two years later, Taras began discussions with two adjacent land holders, about the “possibility of combining the three properties and having them rezoned to permit a multi-use development” which would include a combination of industrial, residential, retail and commercial components.
In 1998 a joint venture agreement – the Victoria Gardens Property Trust – was executed between the three land holders. Taras agreed to execute a transfer of its land to the newly formed Victoria Garden Developments Pty Ltd as a trustee, for a price of $28.5 million (none of the parties involved disputed the fact that $28.5 million greatly exceeded market value).
For the 1999 year, Taras claimed a tax loss of $1.7 million, on the basis that the its transfer of land to Victoria Gardens Developments was on the basis of the new company as a trustee, so no capital gains tax event occurred. They also filed tax returns for subsequent years claiming losses carried forward from 1999.
The Commissioner disagreed. Auditing Taras, the Commissioner of Taxation decided that a capital gains tax event did occur when the joint venture agreement was formed in August 1998, when Taras ceased to become the outright owner of their portion of the land land, and instead became entitled to interest in the land.
Noting that the $28.5 million figure for the Taras land was far above market value, the Commissioner, after some revision, assessed the land’s value as $16.6 million – resulting in a capital gain of $7.6 million for the 1999 tax year.
Taras has objected to the Commissioner’s decision a number of times.
In this appeal, it argued against the market value assessed by the Commissioner, and also claimed that no actual proceeds were made from capital gains until the entire land was later sold to a third party outside of the Victoria Gardens joint venture.
Victoria Gardens Developments, argued Taras, was merely a mechanism to allow the parties to develop the land. Once the land was transferred from Taras to the Victoria Gardens Developments, Taras still remained the sole beneficiary of the trust over that land, and Victoria Gardens Developments held the land solely for Taras.
The Commissioner has claimed that Taras did make a commercial gain from the transfer of its land to the trust, although cash payments were spread out over a number of years. It also argued that capital gains tax legislation must be used according to ordinary interpretations of its terms, rather than “views of ‘commercial reality’”.
<a target="_blank" href="mailto:richardson@propertyobserver.com.au">richardson@propertyobserver.com.au</a>
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jrichardson-uRX5hFdKfN

Victoria Gardens capital gains tax appeal defeated in court

<html><body>
New claims from the not-for-profit body Turf Australia had ears pricking up this morning. They believe that home buyers are prepared to pay up to $75,000 more for a home with a lawn and are urging savvy property owners to consider the addition to boost their profits.
Anthony Muscat, president of Turf Australia, recently released a statement saying that home buyers see that a lawn adds to the look and feel of a home, particularly for families who want a safe space for their children to run around in.
Turf Australia polled 114 real estate agents nationally between November 2011 and January 2012 to come up with the $75,000 figure.
The statistics provided to Property Observer by Turf Australia (note: these are the average added value to a property): Victoria: $79,800 on a $420,000 home New South Wales: $83,600 on a $440,000 home Queensland: $48,600 on a $405,000 home South Australia: $43,200 on a $360,000 home Western Australia: $40,050 on a $445,000 home National: $75,668 on a $420,375 home They also found that house hunters want a lawn primarily as a safe playing area (73%), the look and feel of the property (34%), relaxation (32%) and increasing the re-sale value of the property (25%). The report noted that 95% of buyers want real grass in their backyard, while for 80% of Australians a lawn needs to be at least 30% of their property's total size.
"A garden makeover is a cost-effective and quick way to increase the value of a home before sale. Laying a good quality lawn costs approximately $5-$12 per square metre, depending on the variety, compared to $23.22 per square metre for a bathroom renovation," said Muscat.
"A garden makeover including turf could also last a lot longer than an interior renovation, as it’s less likely to become dated and is cheap and easy to maintain. Most turf varieties have been adapted to suit the Australian climate and withstand extreme conditions. And it’s not as thirsty as most think, with watering costing as little as $3.19 per week during summer," Muscat said.
Turf Australia provided an example of one homeowner in Victoria’s north-east Melbourne suburb of <a href="/news">Doreen</a>. He is looking to spend $2,000 on turf for his four/five-bedroom, two-bathroom, two car garage house bought in September 2012 for $550,000. The expectation is a $20,000 to $30,000 increase in value. The ex-display home is only a couple of years old, and both the front and back gardens were covered in gravel when he moved in to the just-under 700 square metre block.
The equation that investors should "[insert task here] to add $[significant extra value]" is certainly part of the home improvement and renovating vernacular, however it's worth a real property-by-property consideration. Is he likely to receive a 10-fold return for turf?
Speaking to Monique Sasson from Wakelin Property Advisory, she argued that from her experience, qualitatively the opposite is true.
"You don't have to look too much further than the extraordinary heat and the upkeep associated with maintaining even a small lawn to know that, overwhelmingly, people are realising that drought-resistent, low-maintenance gardens are much more desirable in terms of the time and money associated with upkeep and the consumption of resources," she said. "If we lived in a climate where rainfall was abundant and we didn't go through these periods of intense heat and didn't live in a country prone to drought conditions, particularly in the southern part of the country, then go for it and have some lawn. But I think in Victoria, and in any area of Australia prone to fire risk, drought and where consumption of water is a judicious and precious commodity, it probably doesn't make a lot of sense as it is quite impractical," she said.
"To suggest that spending $2,000 installing lawn can add this sort of value is a preposterous claim. They are welcome to their opinion, but I'd like to see the hard sales evidence and how the two are connected from a hard data point of view. Over 20 years of working in the property advisory industry I've yet to see that kind of claim born out.
"In fact, when people look at homes they look at high maintenance water dependant gardens, they often think it's too much hard work."
While Sasson said that irrigation systems can work to maintain beautiful gardens, she also said that huge bills can come into play. Turf Australia pointed to a cost from $3.19 per week minimum in the summer months.
Greville Pabst, CEO of WBP Property Group, who offer valuations as well as advisory, was also less than certain about the claims.
“I would expect the lawn to improve the appearance of the property, however, it is most unlikely to add the $20,000 to $30,000 expected by the owner. Installing turf would result in limited to no increase in the value of an established property if the remainder of the property required renovation or repairs," Pabst told Property Observer. 
"Conversely, a new property without landscaping would benefit in increased value through some basic landscaping and improvement to external appeal, although investing $2,000 into landscaping is unlikely to add the increase estimated by the property owner," he said.
Having looked at the property in Doreen's online 'before' photos (address not disclosed by request), the addition of some turf would almost undoutably increase the appeal aesthetically; the greenery, with gravel and mulch, being the main front and backyard features, in addtion with concrete pavers. The home itself falls into Pabst's 'new property' category, looking fairly pristine inside. However, whether this translates into a $30,000 increase is up for debate.
Have your say on the poll below about general home values and turf.
{module How much will adding turf affect a home's value?}
If you've had any experiences with this type of renovation, we'd be keen to hear your valuation experiences and how much you managed to profit.
<a href="https://mce_host/jduke@propertyobserver.com.au" target="_blank">jduke@propertyobserver.com.au</a>
 
 
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Analysis: Can laying turf really increase your property’s value by $75,000?

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South Yarra accountant, Mark Ronald Letten, 60, today pleaded guilty to 27 criminal charges of operating 21 unregistered managed investment schemes.
Letten, the former director of LGH Holdings Ltd, which is in liquidation, and principal of accounting firm Lettens Pty Ltd - formerly The Letten Group - has admitted to dishonestly using his director position using investor funds totalling up to $550,000, and of operating a financial services business without an Australian financial services licence.
The guilty plea came following an ASIC investigation.
Between 1998 and 2010, more than $100 million was placed in commercial investment property schemes in Australia and New Zealand by more than 1,000 investors. Letten managed and promoted the projects through a number of companies, including the aforementioned.
These companies and unregistered schemes were then wound up after a number of ASIC applications in the Federal Court of Victoria, from 2010 onwards.
He was charged in December 2011, to face trial following a committal hearing in December 2012.<a target="_blank" href="mailto:jduke@propertyobserver.com.au"></a>
Schemes managed by Letten included the Healesville Walk Shopping Centre Joint Venture in Victoria, Reef House Resort in Palm Cove, Queensland and the Yarra Valley Golf Joint Venture in Chirnside Park.
Property Observer previously reported about <a target="_blank" href="https://www.propertyobserver.com.au/industry-news/melbourne-property-developer-mark-ronald-letten-facing-criminal-charges-over-alleged-unregistered-investment-scheme/2011121452844">Letten's appearance in the Melbourne Magistrates Court</a>.
In March, it was noted that <a target="_blank" href="https://www.propertyobserver.com.au/victoria/interim-payment-likely-for-mark-letten-property-scheme-investors-kpmg-receivers/2013030559723">those who had placed money in these schemes were potentially able to receive an interim payment</a>. There is further information available for investors and creditors on <a target="_blank" href="https://www.kpmg.com/AU/en/services/Advisory/Transactions-Restructuring/Restructuring/Letten/Pages/Default.aspx">a dedicated site here</a>.
<a target="_blank" href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a>
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Accountant who placed 1,000 investors into investment property schemes pleads guilty: ASIC

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Melbourne renters have seen only moderate rises in rents over the past year, especially when compared to Sydney. At the same time investors have seen static yields but potentially benefited from improved capital growth.
Over the past year the median weekly rent for a house in Melbourne has risen by $10 and by $8 for units. Currently the median rent for a house is $437 per week and $389 for a unit.
This compares to a rise of $23 per week in Sydney to $582 for a house and an $18 rise for units to $509.
It is certainly less expensive to rent in Melbourne than in Sydney and renters have been faced with more moderate increases.
In part, the lower weekly rent explains why rental yields are lower in Melbourne than in Sydney. The yield for a house in Melbourne was 3.4% in December last year and 4.2% for units. In Sydney, the comparable figure was 3.9 and 4.7% respectively.
Over the past two years, yields have not changed substantially for houses in Melbourne with a change from 3.5% 3.4% recorded. Property owners over that time have benefited from capital growth.
Units, which have a higher yield, have recorded a similar change, from 4.3 to 4.2%.
It is interesting to note that over the longer term, yields for both houses and units in Melbourne have stabilised at a lower level. From 2003 to 2005 investors benefited from yields of around 4.4% for houses and 4.9% for units.
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
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Melbourne rental increases only moderate compared to Sydney and yields have stabilised

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In the December quarter last year the median value of a house in Melbourne rose by 2.6% to $542,053. Over the last year the increase was 10.7% from $489,696.
A similar increase was recorded for units. The median value of a unit rose by 2.3% to $442,043. Over the last year the increase was 9.8% from $402,440.
This confirms that 2013 was a good year for real estate in Melbourne. Values rose as demand increased and more people bought and sold residential real estate.
The market remains below its previous nominal peak underscoring that we are in a recovery phase.
In the houses market the strongest growth in values over the year was recorded in <a target="_blank" href="/news">Kew East</a>, <a target="_blank" href="/news">Balwyn North</a>, <a target="_blank" href="/news">Caulfield</a>, <a target="_blank" href="/news">Maribyrnong</a> and Balwyn. Value growth was also recorded in the more affordable sub $500,000 segment with the highest growth occurring in <a target="_blank" href="/news">Watsonia</a> where values rose by 12.3% and above the city- wide rise.
<a rel="wp-prettyPhoto[g2835]" href="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table1.png"><img height="301" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table1-580x371.png" alt="Change in values between September 13 Q and December 13 Q - Houses"></a>
The strongest growth over the quarter was concentrated in the more affordable suburbs of <a target="_blank" href="/news">Hastings</a>, <a target="_blank" href="/news">Knoxfield</a>, <a target="_blank" href="/news">Mitcham</a>, <a target="_blank" href="/news">Keilor East</a> along with <a target="_blank" href="/news">Camberwell</a>. This suggests that the substantial rise in auction volumes (the more prevalent sales method in the inner city) acted to moderate price growth.
<a rel="wp-prettyPhoto[g2835]" href="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table2.png"><img height="256" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table2-580x316.png" alt="Change in values between September 13 Q and December 13 Q - Houses"></a>
In the unit market the highest growth over the year was recorded in <a target="_blank" href="/news">Malvern East</a>, Balwyn, <a target="_blank" href="/news">Northcote</a>, <a target="_blank" href="/news">Bentleigh East</a> and <a target="_blank" href="/news">Balwyn North</a>.
<a rel="wp-prettyPhoto[g2835]" href="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table3.png"><img height="257" width="470" src="https://blog.rpdata.com/wp-content/uploads/2014/01/vic-blog-melbourne-housing-values-table3-580x317.png" alt="Change in values between December 12 Q and December 13 Q - Units"></a>
Taking a broader view of the Melbourne market the data shows that inner eastern suburbs of Balwyn and <a target="_blank" href="/news">Balwyn North</a> recorded the strongest demand across all property types.
Looking forward to 2014, it is clear that the market is primed to move from a recovery to growth phase whilst economic conditions, consumer confidence and monetary policy remain favourable.
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
 
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