Australia’s housing debate has rarely been more urgent. The National Housing Supply and Affordability Council forecasts the country could fall around 262,000 homes short of housing needs by 2029, underscoring the scale of the challenge facing planners, governments and developers.

In response, much of the conversation has centred on high-density towers around transport corridors and strategic centres.

Diversified developer Coronation Property, while also focused on well-located, strategic sites, is incorporating an arguably underutilised typology, the terrace.

Difficult to integrate into true high-rise developments, terraces have become a defining feature of Coronation’s lower-rise portfolio, including projects in Ashbury and Erskineville. <a href="https://www.apartments.com.au/buildings/ashbury-terraces-165-171-milton-street-ashbury-nsw-2193">Ashbury Terraces</a> places a stronger emphasis on this housing type, forming part of a broader community mix.

At its Erskineville development, <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, terraces are more limited, with just a handful&nbsp;included within the wider, predominantly apartment-led precinct, one of the first developments to launch in Erskineville in several years.

[smartcode_project:default project_id=135149 project_image_fid=368392]

Terrace residents at Lillian benefit from many of the same advantages as apartment owners, the lock-up-and-leave lifestyle and access to shared amenities like the rooftop wellness space, but with significantly more space.

Spanning multiple levels, the terraces also feature front and rear courtyards, providing direct access to the central landscaped gardens within the precinct.

<h3 data-end="212" data-section-id="1n97jye" data-start="191">The terrace model</h3>

Terrace housing has long been part of Australia’s urban fabric. From Paddington and Surry Hills to Glebe and Annandale, rows of terrace homes have shaped neighbourhood streets, offering a housing form that sits between detached houses and apartments.

The contemporary terrace, however, addresses many of the limitations of older designs, where narrow staircases and constrained layouts often compromised liveability.

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“Terraces represent one of the city’s most intelligent housing models,” says Joe Nahas, Managing Director of Coronation Property.

“They deliver density without losing the human scale that makes neighbourhoods liveable. In many ways, they provide a bridge between the Sydney we know and the Sydney we need to build. If Sydney is going to grow well, it can’t rely on towers alone.”

<hr data-end="1090" data-start="1087" />
<h3 data-end="1124" data-section-id="1a7l0gw" data-start="1092">The evolution of the terrace</h3>

That thinking has shaped Coronation’s approach at Ashbury Terraces, where the terrace typology has been reinterpreted for modern living.

Designed by SJB, the project recently received recognition at the 2026 Better Future World Design Awards, acknowledging its architectural clarity and response to the surrounding suburban context.

SJB Director Adam Haddow says the intent was to evolve a familiar housing form rather than reinvent it.

“The terrace is one of Sydney’s most familiar housing forms, so our approach at Ashbury was to reinterpret that typology in a contemporary way,” Haddow says.

“The homes are designed to sit comfortably within the existing neighbourhood while introducing more light, landscape and shared spaces that support modern living.”

Ashbury Terraces combines terraces, apartments and penthouses across a series of low-rise buildings, integrating contemporary architecture with landscaped communal spaces and resident amenity.

That same typology is now being carried into Coronation’s Lillian development in Erskineville, where a smaller number of terraces sit within a predominantly apartment-led precinct.

<hr data-end="2269" data-start="2266" />
<h3 data-end="2289" data-section-id="cazuws" data-start="2271">Buyer response</h3>

Coronation’s decision to include terraces at Lillian was informed by strong buyer feedback from Ashbury Terraces, where purchasers were drawn to the flexibility and scale the housing type offers.

One resident, Sweta Pursem, purchased a terrace as a single buyer, citing its long-term versatility.

“As a single buyer, it might seem surprising that I chose a terrace over an apartment, but I was thinking long term,” Pursem says.

“The terraces are incredibly versatile, catering to a range of lifestyles while still offering the space and privacy of a house.”

For Pursem, the multi-level layout provides a level of functionality not typically found in apartment living.

“Having a separate living area from the bedroom and home office makes everyday living feel both functional and comfortable. When friends and family come to visit, the layout gives a sense of privacy while still feeling open and spacious.”

Her terrace also supports a more connected, lifestyle-driven way of living.

“I love entertaining, and the courtyard is ideal for relaxed weekend drinks with friends. I tend to use each level differently throughout the day, it creates a natural rhythm between work, downtime and entertaining, which I didn’t have in apartment living.”

Ashbury Terraces is now complete and ready to move in, while Lillian in Erskineville is under construction and expected to welcome residents in mid-2027.

Joel Robinson

Coronation champions terraces as a key piece of Sydney’s housing mix

Private equity real estate firm Conquest has entered into a $220 million partnership with Woolworths’ development arm, Fabcot, to deliver its long-awaited Waterloo project on Bourke Street.

The Bourke Street development was first flagged by Fabcot back in 2021 as part of its push into Sydney’s residential market. However, progress has since stalled, with no activity on site amid a number of design revisions in consultation with the City of Sydney.

<a href="https://www.apartments.com.au/developers/conquest">Conquest</a>, which is actively planning more than $6 billion worth of new developments, predominantly mixed-use precincts, is now set to move the project forward.

The current plans include between 110 and 120 apartments across two buildings designed by Bates Smart at <a href="https://www.apartments.com.au/new-apartments/923-935-bourke-street-waterloo-nsw-2017">923 Bourke Street</a>. The scheme will incorporate a portion of apartments reserved for key workers, alongside premium commercial space at ground level, including a full-line Woolworths supermarket.

Construction is expected to commence in the second half of 2026.

Michael&nbsp;Akaawi, CEO of Conquest, said the partnership reflects the firm’s commitment to "convenience-led" urban renewal."

"We are preparing to commence construction in the second half of this year," Akaawi says.

"Along with Woolworths, we look forward to delivering the first major supermarket to the growing Waterloo community, integrated with premium new apartments and specialty retail shops. Our focus is on creating a seamless lifestyle hub where essential services are at the doorstep, saving residents time and enhancing their quality of life."&nbsp;

<img alt="Conquest" data-entity-type="file" data-entity-uuid="d8beee83-ef9b-446b-a3b3-1e2fe596512b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-01%20at%2011.08.46%E2%80%AFAM.png?VersionId=raYhGepiLUJfx4InLPRRJduA3ftDJ_kS" />

The news comes just a week after Conquest went to the NSW Government to upsize its plans for Castlecrag's Quadrangle Shopping Centre.

Conquest purchased the site for just shy of $70 million last year, with existing plans in place for a mixed-use residential and retail precinct comprising 38 luxury apartments.

Those plans have now been significantly expanded, with the developer lodging a State Significant Development Application with the NSW Government’s Housing Delivery Authority for 150 apartments across two 11-storey buildings. The apartments will sit above a four-storey podium, incorporating specialty retail tenancies and five levels of basement car parking, on the 5,166 sqm site at&nbsp;<a href="https://www.apartments.com.au/new-apartments/100-edinburgh-road-castlecrag-nsw-2068">100 Edinburgh Road</a>.

Conquest has been increasingly active in the development space in recent years. The group acquired the&nbsp;<a href="https://www.apartments.com.au/developments/eastlakes-nsw-2018">Eastlakes</a>&nbsp;Shopping Centre redevelopment, where it plans to deliver more than 1,000 apartments above a new retail precinct, and has also lodged a $900 million State Significant Development Application for a&nbsp;<a href="https://www.apartments.com.au/news/nsw/conquest-unveils-900m-stanmore-village-vision-for-landmark-inner-west-site">mixed-use precinct in Stanmore</a>.

Conquest partners with Woolworths to deliver mixed-use Waterloo project

A shift away from Sydney’s industrial past has left parts of the inner south defined by contrast, brick warehouses repurposed into dining precincts, former factory streets softened by landscaping and pedestrian activity.

Rosebery is one of those suburbs. Over the past decade, it has undergone significant gentrification, anchored by The Cannery, which has helped reposition the area as one of the inner city’s most sought-after lifestyle pockets.

What hasn’t kept pace with that transformation is new residential supply, which has remained relatively limited. Builder-developer Deicorp identified that gap early, securing a site in 2019 and delivering what is now one of the suburb’s most architecturally distinctive developments.

To realise the vision, Deicorp engaged Candalepas Associates to design The Rothschild, a project that is immediately recognisable from the street.

Completed in 2025, The Rothschild comprises two buildings across Rothschild and Mentmore Avenues, delivering 176 apartments. The development replaces a former industrial site, retaining a material and structural dialogue with its past while introducing a more resolved residential framework. The scale is deliberate but not monolithic, broken into forms that engage both street frontages, with retail at ground level and two levels of basement parking below.

[smartcode_project:default project_id=106843 project_image_fid=221665]

From the street, the architectural intent is clear. Off-form concrete columns run through the façade, establishing a repeated structural rhythm that gives the building its visual weight. These are paired with deep-set arches and sections of exposed brickwork, creating a layered elevation that reads less like a typical apartment block and more like a reinterpretation of industrial architecture.

The material palette is intentionally restrained, with concrete left exposed and brick used to define mass rather than decoration. The result is a building that stands out through proportion and repetition, rather than height or glazing.

This approach continues internally. A central landscaped courtyard sits between the two buildings, anchored by an olive grove that acts as both a visual and spatial focal point. Rather than functioning as residual space, the courtyard is designed as a shared ground plane, where circulation paths, seating areas and planting come together to create a usable communal environment. Its positioning allows natural light to penetrate deep into the site while maintaining separation between residences.

[smartcode_project:default project_id=106843 project_image_fid=221666]

Within the apartments, the planning follows a clear and functional logic. Entry points lead directly into open-plan living areas, with kitchens positioned as central elements alongside dining and lounge spaces. These zones extend to balconies or external openings, maintaining a visual connection to either the courtyard or the street.

Kitchens prioritise practicality, with generous bench space, ample storage and European appliances configured for everyday use. Bedrooms are typically set back from the main living areas, creating quieter zones within each residence, with separation achieved through layout rather than material change. Bathrooms are compact but efficient, incorporating mirrored cabinetry and integrated storage to maximise space. Across all residences, the emphasis is on clarity of movement and functional planning.

[smartcode_project:default project_id=106843 project_image_fid=221669]

At ground level, retail and hospitality uses extend the building’s presence beyond its residential function. A café or restaurant space, alongside communal amenities such as a music room and rooftop areas, positions the development as part of a broader urban network rather than a standalone project. These shared spaces reinforce a lifestyle where the building operates as an extension of the surrounding neighbourhood.

Rosebery’s proximity to Green Square, The Cannery and nearby parklands supports this model of living, where much of daily life is within walking distance. The Rothschild sits comfortably within that network, contributing to the streetscape through its distinctive architecture, while internally organising space around light, structure and communal use.

The Rothschild is now complete and ready to move in, with limited residences remaining.

[smartcode_project_cta:default project_id=106843]

The Rothschild reinterprets Rosebery’s industrial DNA into residential form

KTQ has unveiled&nbsp;<a href="https://www.apartments.com.au/new-apartments/casilia-16-marine-parade-coolangatta-qld-4225">Casilia</a>, the final residential release within the Kirra Point precinct which really kicked off the boom in the area back in 2019.

The final stage comprises&nbsp;87 residences and marks the culmination of a long-term, family-led vision for Kirra Point, as the precinct moves toward completion in tandem with the development.

Around $100 million in sales have been achieved already, close to 35 per cent of the residences secured ahead of launch. There have been a significant number of buyers returning from the first stage of the development, Miles Residences, securing another property within Kirra Point.

[smartcode_project:default project_id=152295 project_image_fid=368410]

Selling agent Tim Keenan from Keenan Byrne said the response reflects both the scarcity of the offering and Kirra’s growing reputation as a premium coastal market.

“This is effectively Kirra’s final act, the last release within what has become one of the Southern Gold Coast’s most tightly held beachfront precincts,” Keenan said.

“We’ve seen exceptionally strong pre-sale interest, from VIP waitlists through to off-market enquiry, which speaks to both the quality of the product and the confidence buyers have in the precinct. What’s particularly compelling is the number of buyers returning from Miles, either upgrading or investing again, which is a strong signal of how the precinct has been received."

Keenan adds that at the same time, north-facing beachfront remains exceptionally rare in Australia, limited to places like Noosa, Byron and Kirra, which is underpinning long-term value.

[smartcode_project:default project_id=152295 project_image_fid=368415]

Positioned along one of Australia’s few true north-facing beaches, Casilia offers a mix of two and three-bedroom residences with pricing ranging from $1.87 million to $7.15 million and two exclusive penthouses. Residences are oriented to capture varying outlooks, from uninterrupted Pacific Ocean views across Kirra Beach to hinterland vistas, with upper levels and shared amenity taking in sweeping perspectives along the Gold Coast coastline.

At rooftop level, a north-facing pool deck captures expansive, uninterrupted views over Kirra Beach and north towards Surface Paradise. The space incorporates a heated resort-style pool, mineral spa, sun lounges and a covered BBQ cantina.

Buyer profiles are broad, typically aged between 40 and 70, with a strong skew toward second-home ownership, drawn by a combination of lifestyle, relative value, proximity to Gold Coast Airport and lower congestion compared to more established markets such as Byron Bay and Noosa.

[smartcode_project:default project_id=152295 project_image_fid=368414]

The project is being delivered by <a href="https://www.apartments.com.au/developers/ktq-group">KTQ Group</a>, a family-owned Australian property group with a diverse portfolio spanning residential, hospitality and commercial developments. The group has delivered a number of notable projects across sectors, including the award-winning Elements of Byron resort, demonstrating its depth of experience across both hospitality and residential development.

Known for its long-term approach to place-making, KTQ Group retains a vested interest in its projects, often holding assets within its portfolio, which has also helped build trust among buyers and reinforced confidence in both the vision and delivery certainty of the precinct.

“Casilia represents the final opportunity to secure a residence within Kirra Point and brings to market the last release within our long-term vision for the precinct," KTQ Group's Jeremy Holmes said.

"Kirra Point has been more than a decade in the making, and that timeframe reflects the care behind each decision, it takes listening, balance and vision to arrive at something that feels right for the location.

“Our approach has always been to deliver Kirra Point as a destination in its own right, a connected coastal neighbourhood integrating residential, hospitality and wellness, rather than a standalone project. It’s a vision that respects place, pace and permanence, and contributes to a sense of community that feels authentic to Kirra.”

[smartcode_project:default project_id=152295 project_image_fid=368411]

Once complete, the Kirra Point masterplan will incorporate a mix of dining establishments, bars and cafés, alongside the Kirra Point Health Club and a future 91-room independent resort hotel, creating a walkable, integrated lifestyle precinct.

Architecutue and interiors at Casilia have been designed by the experienced design houses of <a href="https://www.apartments.com.au/architects/little-boat-projects">Little Boat Projects</a> and O’Neil Architecture &amp; Interior Design, The design moves beyond the conventional coastal apartments, instead taking cues &nbsp;from the surrounding landscape - layering natural materials, soft curves and warm textures to create spaces that respond to light, airflow and the rhythms of coastal living.

Residences are designed with an array of floorplates, generous proportions and intuitive flow, while at ground level Casilia connects into the broader precinct, where future laneways, retail and hospitality offerings will contribute to a neighbourhood defined as much by how people live day-to-day as its beachfront position.

[smartcode_project_cta:default project_id=152295]

The final residential release within the Kirra Point masterplan is set to launch, as strong pre-sales signal sustained demand for the Southern Gold Coast

A decade in the making: KTQ launches Casilia at Kirra Point

South East Queensland developer&nbsp;<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a>’s entry into the Gold Coast apartment market has progressed from pipeline to market, with its Chevron Island project Bronze on Chevron now formally available to purchase ahead of a planned 2029 completion.

The 119-apartment development on Mawarra Street marks the Brisbane-headquartered builder-developer’s first residential play in the Gold Coast, following its expansion south from Brisbane and the Sunshine Coast.

<a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-surfers-paradise-qld-4217">Bronze on Chevron</a> comprises a mix of two-, three- and four-bedroom residences, with pricing starting from just over $1.5 million. The project is being delivered under Gardner Vaughan’s fully integrated model, with the group acting as both developer and builder, a structure it has consistently applied across its South East Queensland portfolio.

[smartcode_project:default project_id=107520 project_image_fid=367182]

Architecture has been designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jeremy-ferrier-landscape-design">Jeremy Ferrier</a>. The building presents as a single-tower scheme, with a focus on maximising outlook across both the Surfers Paradise skyline and the Nerang River.

Apartments have been planned with open-plan living zones extending to generous balconies, a response to the site’s dual-aspect positioning between river and ocean. Interiors follow a restrained coastal palette, with two colour schemes offered, and an emphasis on natural light and cross-ventilation.

[smartcode_project:default project_id=107520 project_image_fid=367181]

Resident amenity is concentrated across more than 1,250 sqm and includes a resort-style pool, gym, yoga lawn and rooftop entertaining areas. A function space with catering facilities forms part of the upper-level offering, alongside north- and south-facing outdoor areas.

Ground level will incorporate two retail tenancies, intended to extend the existing village character of the surrounding streets.

&nbsp;

[smartcode_project:default project_id=107520 project_image_fid=367200]

The project sits within walking distance of Thomas Drive’s established dining strip, while maintaining proximity to <a href="https://www.apartments.com.au/developments/surfers-paradise-qld-4217">Surfers Paradise</a> beach and broader Gold Coast amenity. The location, positioned on Chevron Island between the river and coastline, has increasingly attracted mid- to high-density development in recent years as the precinct evolves beyond its low-rise origins.

Gardner Vaughan’s move into the Gold Coast was first signalled in 2025, with the group identifying the region as a natural extension of its operations. Chief Executive Officer Simon Betteridge described the expansion as both “strategic and natural”, citing demand for well-designed apartments in lifestyle-driven markets.

Construction is expected to complete in early 2029.

[smartcode_project_cta:default project_id=107520]

Gardner Vaughan brings Bronze on Chevron to market as Gold Coast debut

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?

Nearly a year after purchasing the former Leo's Fine Food &amp; Wine supermarket in Kew for a reported $52 million, Melbourne developer <a href="https://www.apartments.com.au/developers/orchard-piper">Orchard Piper</a>, in a consortium with billionaire James Packer, has filed development plans for the site.

The proposal includes just under 200 apartments on the 6,835 sqm block, which spans <a href="https://www.apartments.com.au/new-apartments/26-36-princess-street-kew-vic-3101">26-36 Princess Street and 11-15 Brougham Street</a>. Approval is being sought through the Department of Transport and Planning’s (DTP) Development Facilitation Program (DFP).

The buildings, designed by Wardle, will vary in scale and rise up to 18 storeys. One-, two-, three- and four-bedroom apartments will be offered, along with townhouses. Ten per cent of the total dwellings will be allocated to key worker housing.

The development will also include 19 new retail premises, comprising a mix of shops, restaurants and cafés, including a dedicated space for a high-quality produce offering similar to Leo’s.

<img alt="Kew" data-entity-type="file" data-entity-uuid="67cc85a5-a9d8-4eaa-95ae-fd93762d3297" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-29%20at%208.15.07%E2%80%AFAM.png?VersionId=_p57VJNE2w16xNXB4ISvu3mnVHDDk86R" />

Orchard Piper noted the development is "designed to revitalise the Junction with high-quality housing and retail, while also improving the public realm."

"Assembling an expert team, we've been working with leading architects Wardle and landscape architects Oculus on a site-sensitive design. Wardle is one of Australia's pre-eminent architectural practices, and its founder, John Wardle, is a former long-term Kew resident with an intimate knowledge of the area.

"After close to a year refining the plans, our current opposition embodies Kew's unique character and meets the community's needs, including detailed consideration of the surrounding building design, streetscape conditions and broader planning context."

On top of the extensive retail component, the opportunity to deliver offsite public realm works, involving the council owned land to the south, would include a comprehensive new landscaped laneway strategy that connects Athenaeum Place into the site, a new public park, and the relocation of the public parking currently on the site to the adjoining council land.

<img alt="Kew" data-entity-type="file" data-entity-uuid="02da73ff-e9d9-4e6a-8b6c-75c6f4cb3b01" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-29%20at%208.15.12%E2%80%AFAM.png?VersionId=NXlzip8H0suSqc.X2H6nLKZr6LB1joJ." />

Orchard Piper, led by Luke Mckie and Rick Gronow, is currently delivering The Carter building on St Kilda Road and One Toorak Place in Toorak village.

Kew has been a popular suburb for new development in recent years. The likes of Piccolo, ANGLE, and Carpe are delivering projects in the area.

&nbsp;

&nbsp;

First look: Orchard Piper, James Packer's Kew development revealed

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Those keen to get their property renovated or updated through the spring period are being warned to stay vigilant about the labour they choose by nationals member for Lowan, Hugh Delahunty.
“Spring can be a great time to renovate and maintain your home but look out for travelling con men, who prey on homeowners with cheap deals for odd jobs that you may not even need,” Delahunty said.
Today-only deals are one of the techniques that Consumer Affairs Victoria and Crime Stoppers Victoria are pushing an awareness about, that often pressure home owners into making poor decisions.
“Travelling con men become much more active as spring arrives and homeowners start looking at ways to fix and upgrade their homes.  They door-knock for work such as painting, roof restoration, driveway work and tree-lopping and put you under pressure to agree to get the work done immediately. Sometimes they even drive you to an ATM to get payment up-front,” he warned.
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Renovators beware: Travelling con men

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This article is the first in our series taking an in-depth look at the Melbourne suburb of <a href="/news">Fitzroy</a>.
The real estate market in Fitzroy is having a good time of it, according to long time agent Andrew Bennison, of Bennison Parker. "I’ve been here 13 years and this is probably the best 12 months I can remember," he said.
"Interest rates are low and there’s an expectation they will fall once again before Christmas."
Bennison said the area had many positives: "People are looking for a better lifestyle here with the vibrant cafe culture, the handy proximity to the city, and good public transport.’’
Those moving in are often the younger set and also the empty nesters. Bennison said the "top end" of Fitzroy – with its substantial modern properties and older, but modernised, terraces – attracted the older demographic. Prices could be as high as $2 million.
Renters, usually in the younger demographic, pay around $550 to $600 a week for two-bedroom apartments or terraces. Yields are around 3.5%.
Nelson Alexander Fitzroy’s Janine Ballantyne agreed the market was strong. "We are doing pretty well," she said, "especially with single fronted terraces."
The average price for these popular designs, built in the 1880s and 1890s, is $850,000-$1 million for those on 150 square metres or more.
Ballantyne’s comments were borne out during the auction of <a href="https://www.realestate.com.au/property-house-vic-fitzroy+north-114938795" target="_blank">80 Best Street, Fitzroy North</a> last Saturday. The sale price of $988,000 trounced pre-auction estimates of $750,000 to $825,000 – no doubt leaving the owners and agents delighted.
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The single fronted brick terrace has a new verandah and garden. It has a functional floor plan with two double bedrooms opening from a double-arched hallway, spacious living room and large kitchen and dining room.
A central period-style bathroom with claw-foot bath and shower opens to a central courtyard. Features include polished timber floors, period detail and gas heating. There’s a pergola covered brick-paved courtyard with right-of-way access. The tightly-held precinct is close to St Georges Road, Edinburgh gardens and the Inner Circle bike path.
Collins Simms’ long time agent Stephen Whitelaw said there was strong demand for real estate with his firm achieving a 95% auction success rate so far this year. "Demand for properties of all sorts is steady, particularly in the lower and middle sectors."
Prices of $800,000-$1.2 million are common with many potential buyers looking for apartments, terrace homes and townhouses.
Whitelaw said the middle to upper sector was not as "robust". Buyers here are seeking better located single fronted houses or renovated family homes, with the best price paid so far this year being around $2 million. Rentals are "price sensitive".
Agents Belinda Lindsay and Angela Coates, of Collins Simms Real Estate, will auction <a href="https://www.realestate.com.au/property-house-vic-fitzroy-115062555" target="_blank">164 Nicholson Street, Fitzroy</a> (pictured below) on Saturday, November 2 at 10:30am.
{yoogallery src=[images/stories/2013/10/21/fitz3]}
The ornate Italianate terrace is adjacent to the Carlton Gardens. I has a triple-arched facade and impressive interior. The Italianate Victorian balcony terrace has an arched hallway, four bedrooms (or three and large lounge room), formal sitting and dining rooms and family/meals area opening onto a deck. There’s a granite kitchen with European appliances, two bathrooms, laundry, marble open fireplaces, magnificent ceilings, polished floorboards, attic storage and right-of-way.
It’s just a walk to Lygon and Brunswick streets, the CBD and Melbourne University.
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"Best 12 months I can remember": Fitzroy agents revel in the good times

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The former Daniel and Robertson brickworks site in Melbourne's eastern suburb of Nunawading has been listed for sale.
The prominent infill site, at 56-74 Station Street, is expected to attract strong interest from developers because of its residential redevelopment potential.
CBRE and Knight Frank are jointly marketing the property on behalf of the Robertson family through a public expression of interest campaign.
{qtube vid:=yImkORTjmaw}
CBRE’s Paul Tzamalis said the site had been "earmarked for an imminent rezone to support residential development as part of Whitehorse City Council’s Mega Mile structure plan.”
He also said the 4.9 hectare property had a history spanning more than 150 years and would continue to play a pivotal role in the area.
“The brickworks site has been the cornerstone of Nunawading since the late 1800s, giving rise to jobs and infrastructure for the area,” he added.
Nunawading's Mega Mile was identified as a Major Activity Centre under the state government’s Melbourne 2030 strategy – an initiative which aims to guide the future growth of the area over the next 15 years.
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Daniel and Robertson brickworks in Nunawading listed for sale

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Real estate agents Marshall White has signed a six year lease at the old Kay &amp; Burton premises in Melbourne's Albert Park.  
The lease, at level 1, 101-105 Dundas Place, was for 325 square metres and includes five on-site car parks. Marshall White is expanding out of its previous premises of 201 square metres, at 119 Bridport Street. Its lease expiry is January 2015.  
Commenting on the deal, Fitzroys agent Tom Backay said the rate of just over $350 per square metre per annum plus GST reflected "the strength of the rental market in the Albert Park area", where he noted that there were only a handful of office leasing options available at any one time.  
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Marshall White expands to Albert Park premises

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Spring continues to deliver good outcomes for vendors with a clearance rate of 73.8% from 883 auctions results so far this week and a 1.3% increase in home values in the last month. This week’s clearance rate is a moderate rise on the 71.3% last week and 70% so far this year.
 The market is clearly absorbing increased volumes in the auction market with little sign of diminished demand suggesting the record weekend at the end of October, when Melbourne will see 1,500 auctions, will deliver a result on trend. The latest market information from RP Data shows the overall time on market for houses sold at private sale stable at 39 days. The strongest demand in the house market is being recorded around the $500,000 level in the outer east where Croydon Hills, Bayswater North, The Basin, Scoresby, Croydon South, Boronia and Bayswater record the quickest sales in Melbourne.  

<hr>
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
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Spring delivering good vendor outcomes: RP Data's Melbourne weekend auction analysis

<html><body>Australian Property Monitors (APM) has released a list of results from 570 auctions in Melbourne for the weekend of  October 12. <a rel="nofollow" href="https://www.homepriceguide.com.au/saturday_auction_results/Melbourne.pdf" target="_blank" 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>

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APM's Melbourne auction results for October 12 weekend

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We've heard it discussed regularly, and it has been a point of contention for many: Melbourne's potential oversupply.
As usual, we went to our readers first and asked them their thoughts. As the poll doesn't give space for further comment, we were specific about focusing on apartments.
As it turns out, 44.8% believe there is an oversupply "but only in the inner city", while a further 37.3% voted that there is an oversupply generally.
<img width="421" height="239" style="display: block; margin-left: auto; margin-right: auto;" alt="poll-results-oct-11-two" src="/images/stories/2013/10/11/poll-results-oct-11-two.gif">
We took the question to experts that have a vocal opinion about this topic, as well as some of those who have access to interesting data.
We asked the following:
Do you think there is an oversupply issue in Melbourne? Why/Why not?
Here is what they said: 
 
Robert Larocca - Victorian housing market specialist, <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>. <img width="125" height="150" style="float: right;" alt="larocca-profile" src="/images/stories/2013/10/11/larocca-profile.jpg">
DEMAND IS WHAT WE SHOULD FOCUS ON
The Victoria property market has a high number of homes on sale right now, but that’s due to higher levels of supply and lower demand.
It’s often said that real estate is all about supply and demand, and to a large extent that’s true, which is why it’s very difficult to say the market is oversupplied.
You have to consider the demand side. It’s not a fixed amount and is affected by a range of factors including the state of the economy and population growth.
Over the past few years in Victoria there have been historically low levels of demand. Consumers have lacked confidence and stayed away from the market.
At the same time, there has been strong growth in supply. Between 2010 and 2012 there were 167,214 dwellings approved, in the three years before that it was 130,989 and in three years before that only 120,850.
In many ways builders have been increasing supply to counter the demand and this creates a surplus (and improved affordability).
Finally, active listings of homes for sale is running at 60,000 now, down from 64,000 seen last year but still higher than the 30,000 in 2007 which was the all-time high for transactions in Victoria.  
 
Johnny Barnard - Population forecaster, <a target="_blank" href="https://home.id.com.au/">.id</a> (informed decisions)<img width="125" height="150" style="float: right;" alt="bernard-profile" src="/images/stories/2013/10/11/bernard-profile.jpg">
YES, IN THE INNER SUBURBS
It certainly appears that there is in the inner suburbs.
Our organisation, (.id) has recently completed population and housing forecasts for the Local Government Areas (LGAs) of Melbourne, Yarra, Port Phillip and Stonnington.  This involved assessing what has happened since the 2011 Census and what is likely to occur out to 2036. Aerial photography was analysed and all major housing projects assessed as to when they are likely to be constructed.
Based on our review of these sites, we estimate that there are somewhere between 9,000 and 10,000 apartments currently under construction in the four LGAs, the majority of which we estimate to be completed by the 2014-15 financial year. To provide some context, these four LGAs added 19,600 dwellings in the five year period between 2006 and 2011.
Certainly in the period we have been doing this work (15 years) we have not seen anything like the number of apartments now under construction in these four LGAs. Maribyrnong (Footscray area) and Moreland (Brunswick area) are also experiencing a significant number of apartment projects currently under construction, so these numbers actually understate the level of inner city apartment development occurring.
The major driver of population growth in Melbourne in recent years has been net overseas migration. Between 2006 and 2011, Victoria averaged around 63,000 persons per year. In the last two years, the number is likely to average around 56,000. So not much has changed in the last couple of years in terms of changed underlying demand. The fringe has dropped off in the same period but I can’t see a direct transfer of demand, the markets are too different.
It is probably too early to tell exactly what the impact will be of the peak in apartment construction. There are a number of things that could happen. Firstly, many apartments may not be able to be tenanted. Secondly, owners may decide to use their apartments as serviced or short stay apartments for a certain period of time until there is enough demand to absorb the new supply. Time will tell.  
 
<hr class="system-pagebreak">
Monique Sasson Wakelin - Director, <a target="_blank" href="https://wakelin.com.au/">Wakelin Property Advisory</a><img width="125" height="150" style="float: right;" alt="wakelin-profile" src="/images/stories/2013/10/11/wakelin-profile.jpg">
MODERATE FOR HIGHRISE INNER CITY
The answer, in part, depends on how you define oversupply. Is it empty states and streets full of unsold, uninhabitable, decaying properties? Or a situation where there are large numbers of properties in a very tight geographical precinct that take longer to sell, often require price discounts to close the deal and deliver little if any capital growth over a several-year holding?
There are no empty estates in Melbourne. But using the latter criteria, there is a moderate oversupply of high rise property in the inner city locations such as Docklands, Southbank and St Kilda Road. Carlton is over-supplied with student accommodation and there are too many McMansion-type housing developments on the fringes of suburban Melbourne.
In contrast, demand exceeds supply for older style properties and for some boutique-sized new developments in the inner ring suburbs (around two-to-12 kilometres from the CBD). The market is balanced in the middle ring.
We’ve noticed that the oversupply of new apartments in places like Port Melbourne and Richmond has moderately dampened the established market in these localities – more in terms of capping rents rather than suppressing capital growth. That is an exception to the usual rule that established property and new developments are distinct markets. It may be that in certain localities, investors need to be more cautious.
By and large, much of the moderate oversupply is cyclical. Most of it will be absorbed by growing demand should the market recovery be sustained into 2014.  However, there are more structural challenges for the inner city and outer fringe market. Although Melbourne’s projected population growth should soak up current over-supply in a few years, it is inevitable that developers will continue to over-build, so expect the issue to persist.    
 
Todd Hunter - Director and location researcher, <a target="_blank" href="https://www.wheregroup.com.au/">wHeregroup</a><img width="125" height="150" style="float: right;" alt="todd-hunter-profile-2" src="/images/stories/2013/10/11/todd-hunter-profile-2.png">
ABSOLUTELY, NUMBERS DON'T LIE
Absolutely… sure in some niche property types there may be a small shortage but the city tells a different story  
But don't let me try and convince you, there is a simply way to find out for yourself, simply google realestate.com and search the following locations. Leave the surrounding suburbs button ticked and don't put a price point in on houses, (by not putting a price point you are covering multiple price points of buyers, not just first home owners):
·     Werribee, Tarneit, Wyndham – 3,150 for sale
·     Pakenham – 2,000 for sale
·     Melton – 1,600 sor sale
·     Whittlesea, Mernda, Doreen, Sth Morang – 3,600 for sale
·     Point Cook – 2,300 for sale
·     Roxburgh Park, Craigieburn – 1,550 for sale
Then do the same for units and search Docklands - 1,800 for sale  
As you can see there are literally thousands of properties for sale.  
Now do the same exercise and search the same suburbs for properties for lease and see that there are literally thousands of properties for lease. This is why Melbourne currently has a very low yield on investment properties, there is simply too much choice. There are 2,300 units for lease in and around Docklands!  
Now to make that even scarier, many of the adverts advertise multiple properties in one add making those numbers even higher and with 15,000 more units due for construction in the inner city area, along with more land releases in the next two years, this problem is not going away any time soon.  
 
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Andrew Wilson – Senior economist, <a href="https://apm.com.au/" target="_blank">Australian Property Monitors</a> <img width="125" height="150" style="float: right;" alt="AndrewWilson-profile" src="/images/stories/2013/10/04/AndrewWilson-profile.jpg">
SUPPLY MAKING PRICES MORE AFFORDABLE 
Melbourne remains Australia’s engine room of housing construction. Over the past year Melbourne has approved 38,394 dwellings for building or 32.4% of all capital city home approvals according to ABS data. This compares to Australia’s largest capital Sydney that accounted for just 26% of all dwelling approvals over the same period.
Melbourne’s supply-side advantage over the other state capitals through its outstanding construction performance has translated into relatively cheaper accommodation for its residents. Melbourne’s median house price is $150,000 lower than Sydney’s and also is lower than a number of the smaller capitals – Perth, Canberra and Darwin.
Melbourne’s tenant-friendly rental market is also a product of consistently solid levels of new supply. The latest median rent for Melbourne houses is $370 a week well below Sydney’s $500 and lower than all capitals with the exception of Adelaide and Hobart.
Melbourne has experienced an unprecedented surge in new apartment construction over the past two years particularly in the inner city and CBD precincts. High levels of apartment construction have been an important ingredient in keeping the local economy healthy.
Burgeoning numbers of new inner city and CBD  apartments may be moving ahead of demand with the prospect of an emerging oversupply similar to what that market experienced in the late 1990’s and early 2000’s.
Low interest rates have activated the Melbourne housing market this year with house prices now at or close to their previous peaks recorded three years ago. Unit prices however remain 5% below those recorded in 2010.
Latest data reveals that Melbourne CBD unit prices fell by 10% over the six months ending September this year with Docklands down by 6.4% and Southbank unit prices also down, falling by 1.2% over the same period.
 
Enzo Raimondo - Chief executive officer, <a target="_blank" href="https://www.reiv.com.au/">Real Estate Institute of Victoria</a> (REIV)<img width="125" height="150" style="float: right;" alt="enzo-profile" src="/images/stories/2013/10/04/enzo-profile.png">
SHORT PERIODS OF OVERSUPPLY ARE NORMAL
The property market moves in cycles and from time to time, there can be short periods where supply can outstrip demand and vice versa. At the moment, the market as a whole is relatively balanced having readjusted from a broad oversupply in 2011 and 2012. There are still a few pockets, particularly in the inner suburbs that are still readjusting. Having said that, this balance could potentially change with the recent increase in demand and the continued slowdown in building activity.
The past two years of low transactions and moderate price growth is evident of a market that was readjusting from a general oversupply. Obviously there are many other factors at play such as consumer confidence, interest rates, unemployment, and broader economic developments but the supply and demand equation remains fundamental.
Victoria experienced a building boom in 2009-11, in part driven by government stimulus. We went from having around 40,000 building approvals per year in 2009 up to around 60,000 building approvals in 2011. This has now come down to around 50,000 approvals per year and continues to fall. Considering that the average household size in Victoria is around 2.6 people, we were building for around 156,000 new people at its peak.
On the demand side of the equation, population growth slowed down considerably during the building boom period. We went from having 120,000 new people in Victoria in 2009 down to around 80,000 people by 2011. The most recent population statistics show that growth has since increased and we have added around 100,000 people over the past year, the highest of any state. Victoria continues to be an attractive place to live and population growth is once again on the way up.
So is Victoria in an oversupply now? No, but it did just come through a period of oversupply and readjusted accordingly. The higher number of sales, price growth, and increase in clearance rates are all signs that demand is coming back into the market fairly strongly. Building activity is yet to pick up and if this continues to be the case, in time this balance could change.    
 
 
<hr class="system-pagebreak">
 
Jeremy Sheppard - Head of research, <a href="https://hotspotcentral.com.au/about-us/our-team/" target="_blank">Redwerks (Hotspotcentral)</a>
<img width="125" height="150" style="float: right;" alt="sheppard-profile" src="/images/stories/2013/10/04/sheppard-profile.png">
MARKET STILL IN BALANCE AS A WHOLE 
I use the demand to supply ratio algorithm (<a target="_blank" href="https://www.dsrscore.com.au/">DSR</a>) to gauge whether a residential property market in Australia has an oversupply or under-supply situation. This compares 15,000 suburbs against eight leading indicators of supply and demand  - property statistics like auction clearance rate -  gleaned from a variety public sources online.  
Just looking at the Melbourne city centre (comprising 16 suburbs) and not the entire Melbourne metropolitan area, the average DSR score for houses was around 22 and for units around 20 for September 2013.  
These figures are both considered to be within the "balanced" range. The ideal balance between demand and supply has a DSR score of 24 out of a maximum of 48. So the Melbourne city market is slightly below average but still in balance.  
The average DSR score Australia-wide for September 2013 was 22.4 so you can see that both the unit and house markets of Melbourne city can't really be considered oversupplied.  
However, looking at individual markets rather than the city as a whole shows a completely different picture. Dockland units have a DSR score of seven for September 2013. This is considered "very poor". In fact, this placed the Docklands unit market in the lowest percentile for the country by DSR score. The housing market for Docklands was a little better getting a DSR score of 11 which is still considered "poor".  
On the positive side both Carlton North houses and Kensington houses scored 29 in September by DSR. This places them in the 14th percentile country-wide which is comfortably above average.
So one could argue that 'Melbourne' is a balanced market but, like all markets, there are markets within a market that are both over-supplied and under-supplied to various degrees.
 
Michael Buxton - Professor environment and planning, <a href="https://www.rmit.edu.au" target="_blank">RMIT University</a> <img width="125" height="150" src="/images/stories/2013/10/11/buxton-profile.png" alt="buxton-profile" style="float: right;">
NO OVERSUPPLY OF LAND AND NO HOUSING SHORTAGE 
The 2010 expansion of the urban growth boundary by 43,000 hectares doubled the outer urban land supply to 30 years at world’s lowest densities. However, even in 2003, doubling the then density of 11 lots per hectare would have increased outer urban land supply by 62% and the amount of greenfield land by 46%.  
A more important figure for greenfield land supply is the amount of land released and zoned for housing. This is largely controlled by a few development companies, who prevent an oversupply of land released. In 2008, the supply of urban zoned land in development corridors ranged from four to seven years. This was a sufficient supply in international terms, but the government took further measures to fast track further urban zonings far in excess of demand.  
The growth boundary expansion coincided with a fall in demand for outer urban housing from almost 26,000 dwelling approvals in 2009-10 to 19,000 in 2011-22. Yet multi-unit dwelling approvals rose from 14,221 to 17,412 over this period. There is an enormous amount of land available for redevelopment in Melbourne in both brownfield and redevelopment sites. When a city wide approach is taken, and higher density is factored in, dwelling land supply in Melbourne is almost unlimited. There is no state or national housing shortage. Claims to the contrary are based on a methodology which counted large numbers of people who did not possess the financial means, or intend to enter the property market.
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Melbourne's potential oversupply: The experts have their say

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By completion in about 2025, Docklands is expected to have attracted $17.5 billion in private sector investment.
The whole precinct, on around 200 hectares, and with 44 hectares of that being water, offers a mix of uses including residential, commercial, retail, dining and leisure. It attracts millions of visitors each year.
Construction started in 1997, and, when complete in around 2025, it is tipped to be home to 20,000 residents and 60,000 workers. It will almost double the size of the former Melbourne central business district.
{yoogallery src=[images/stories/2013/10/11/dock]}
Photos: Stephen Taylor
Many people will be surprised to learn that Docklands comprises the area from Spencer Street in the east to the Bolte Bridge in the west, Footscray Road in the north to Lorimer Street in the south. It covers the waterways of Victoria Harbour and three kilometres of Yarra River frontage.
But it’s not all sweetness and light, with Docklands occasionally mired in controversy during its formative years. Many commentators have criticised perceived planning blunders and have labelled the precinct as being ‘’without soul’’. The failure of the observation wheel at Harbour Town exacerbated problems, especially for nearby traders.
A lack of public transport even prompted a Melbourne City Council director of projects in 1999 to criticise the disconnection of the precinct to the CBD, claiming that the lack of transport links, particularly pedestrian, meant Docklands was "seriously flawed".
The problem worsened in 2005 when the pedestrian link between Lonsdale Street and Docklands, proposed in 2001, was cut from the final design of the Southern Cross station development due to budget blowouts.  The Age called this a "wasted opportunity".
In 2008, the City of Melbourne released a report which criticised Docklands' lack of transport and wind-tunnel effect, lack of green spaces and community facilities.
In 2009, Neil Mitchell, writing in The Age, declared Docklands a planning "dud". Then the Lord Mayor, Robert Doyle, who has been openly critical of Docklands, chipped in claiming it lacked any form of "social glue".
In 2010, VicUrban's general manager David Young acknowledged that Harbour Esplanade "doesn't stack up". Kim Dovey, professor of architecture and design at the University of Melbourne, added that Harbour Esplanade was "too big" and claimed that Docklands was "so badly done" that it required a "major rethink".  
Despite this local criticism, Sydney travel writer Mal Chenu, in 2009, described Docklands as "the envy of Sydneysiders".
Wow, that’s a good recommendation anyway.
Key Docklands features include:
<ul>
<li>
Southern Cross Station at the gateway to Docklands provides easy access for metropolitan commuters and regional visitors on V/Line
</li>
<li>
Five city trams as well as the free City Circle tram and free tourist shuttle bus to Docklands via Flinders, Collins, Bourke and La Trobe streets
</li>
<li>
Four bike trails
</li>
<li>
Easy access to the traditional CBD via the Bourke Street pedestrian bridge, Flinders, Collins and La Trobe streets
</li>
<li>
Ferries, charter boat services and corporate cruising vessels drop off and pick up in Victoria Harbour
</li>
</ul>
One person who took advantage of living in Docklands went on to become president of the 180-member community association. A sprightly Roger Gardner (pictured below), in his late 60s, made the move with his wife from Strathmore, in Melbourne’s north, after seeing an advertisement in their local paper. That was eight years ago and they haven’t looked back since.
<img alt="gardner-oct-11-one" height="324" width="470" src="/images/stories/2013/10/11/gardner-oct-11-one.jpg">
Roger Gardner. Photo: Stephen Taylor
‘’We thought then that, ‘this is nice’ and we are glad we made the move,’’ Mr Gardner said. ‘’We love living here and can see it’s getting better all the time as improvements take place.’’
Moving into a ‘separation’ apartment, where bright living areas are separate from the two bedrooms, they have two balconies and eye-catching views. ‘’It’s lovely, especially at night.’’
Property prices are stable since being affected by the GFC in 2009, and as more apartments are built. Still, when things settle down, capital growth is tipped.
Obvious attractions are the restaurants - all with their own food specialities and price levels.
‘’We have proximity to the CBD with the twist of being on the water, having good public transport, a high level of activity – especially at weekends – and great water views. Then there’s the football stadium.
‘’Residents are a mix of all age groups, quite a lot of young people but generally balanced. Many seem to be used to living in high-rise buildings.’’
With his president’s hat on, Mr Gardner lobbies the Melbourne City Council and Places Victoria to fix shortcomings and suggest improvements. These have included speaking out against excessive development - including the proposed hotel on the Waterfront City Piazza - overshadowing, raising transparency in planning, ensuring adequate sunlight and countering wind tunnels, increasing open space and larger gaps between buildings.
Building ‘’cramming’’ is an issue. ‘’At the moment we have 10 high-rise buildings being built in an area of 400 metres by 150 metres. That’s the sort of thing we are up against and want redressed.’’
‘’We are also against serviced apartments which we believe planning minister Matthew Guy is about to legislate against. And we also want to increase the amount of parking.’’
The failure of the Observation Wheel has been a disaster for traders in the Harbour Town commercial precinct. And, unfortunately, there’s no relief in sight until March next year. At present the level of customer inquiry is not adequate for retailers and many are just holding on.
A school would be good too! Plans are in hand and tenders called for a 700-pupil school at Docklands which will attract young families – perhaps the cohort most required for a living, breathing suburb.
Another project that would improve living in Docklands is a ferry service from Federation Square around to NewQuay. A new visitor centre is planned for The Esplanade and a linear park with trees and gardens will separate Etihad Stadium from Victoria Harbour. A new park – Western Park - will also be built at the end of Docklands Drive to address the issue of a lack of open space.
From a corporate point of view Docklands has realigned the centre of Melbourne, Mr Gardner said. Major companies such as National Australia Bank, ANZ, Bureau of Meteorology, Myer, National Foods, Ericsson, Costco and Bendigo Bank are just a few of those based there.
‘’Being on the water is especially nice. We live in a building with about a third of residents owning, a third renting and a third short stayers.’’
Mr Gardner is now a Docklands local; proud of what’s been done in his neighbourhood.
‘’When everything settles down it will be much better – a great place to live.’’
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Docklands: Finding its feet after a difficult conception

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RP Data is expecting 970 auctions in Melbourne this week and 1086 across Victoria.
• Clearance rate week ending October 6: 71.3%
• Melbourne auctions expected week ending October 13: 970
• Melbourne private sales time on market week ending October 6: 38 days (houses)
• Melbourne vendor discounting market week ending October 6: -6.2% (houses)
• Listings being prepared for market are 3.3% higher in month ending October 6  
With school holidays now concluded auction volumes now lift again. The next few weeks are generally the busiest ones of the real estate year.  
Bentleigh East features the highest number of auctions with 20 scheduled. There are also 18 in both Glen Waverly and Reservoir.  
Clearance rates remain higher in Sydney, although the lower volume; 302 auction results compared to 755 in Melbourne can account for some of the difference.  
Activity in the mortgage market continues to rise moderately with a small 0.5% rise over the past four weeks in trend terms in Victoria. This suggests that whilst the market is improving it is only doing so moderately.

<hr>
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
 
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RP Data's Melbourne weekend auction preview for October 12-13

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The number of homes on the market across Melbourne varies depending on the suburb with some areas providing buyers with plenty of choice while simultaneously, properties in other suburbs are being tightly held.
Over the year ending July 2013 the five most tightly held suburbs in Melbourne were <a target="_blank" href="/news">Oakleigh East</a>, <a target="_blank" href="/news">Glen Huntly</a>, <a target="_blank" href="/news">Princes Hill</a>, <a target="_blank" href="/news">Heidelberg</a> and <a target="_blank" href="/news">Clarinda</a>.
The data is based on sales recorded with the Valuer General in suburbs with a minimum of 500 houses.
In these suburbs between 2.2% and 2.6% of homes have been on the market over the last twelve months. In Oakleigh East this resulted in a mere 20 homes sold from 1,417.
When looking at the list in more detail, two interesting clusters of suburbs are apparent. Not only is Oakleigh East tightly held but neighbouring Oakleigh and Oakleigh South are also in the top 20. In those three suburbs there are nearly 9,000 houses of which only 159 have sold.
The other cluster is for houses in Parkville, Princes Hill and Carlton. The most available of those suburbs is Carlton with only 3.1% of homes offered for sale.
The reasons for this will vary and it certainly is not price driven as the median prices in the Oakleigh area are between $560,000 and $640,000 whilst in the other cluster the lowest is $881,000 in Carlton.
These two areas are surely the hardest places to buy a home in Melbourne.

<hr>
Robert Larocca is Victorian housing market specialist for <a rel="nofollow" href="https://rpdata.com/" target="_blank">RP Data</a>.
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