The partnership between Commonwealth Bank and Oxford Properties Group (Oxford) will contribute to the construction of one of Australia’s most sustainable high-rise residential buildings.

Delivered and managed by Indi, the development is set to be a 5 Star Green Star building, carbon neutral in operations.

Indi Sydney City will also be the first to achieve a NABERS energy rating for build-to-rent developments.

To qualify for the green loan, Investa - owner of Oxford and Indi - collaborated on a Green Financing Framework with borrowings transparently earmarked for eligible green assets. 

The framework was developed in line with Green Loan Principles which is accepted as a primary guideline for issuing green loans globally.

Indi Sydney City adopts sustainability outcomes throughout design, construction and operation through material choices, onsite renewable generation and rainwater reuse.

Group Executive of Institutional Banking & Markets at Commonwealth Bank, Andrew Hinchliff, said supporting the development of green infrastructure required for the economy of tomorrow was a strategic priority for the bank.

"The way Australians live, work and play is changing and people will be seeking new, more flexible modes of living that can put them closer to their jobs," Mr Hinchcliff said.

"Build-to-rent properties will play a key part in Australia’s future."

Staggering land prices leave Aussies pondering next move

The Housing Industry Association (HIA) reported the cost of blocks of land has risen twice as fast as building materials.

HIA Chief Economist, Tim Reardon, said while building costs have contributed to 4% of the total cost of home building in the past financial year, land prices added 8.5%. 

"Land supply has been in tight supply for the past two decades and the surge in demand in 2020 has seen land prices in Sydney rise 27.1% in the past year alone," Mr Reardon said.

The strength of demand for land is set to continue throughout 2022 and into 2023 according to Mr Reardon.

"As land is a key component of housing, this increase in price has been a key driver of the rising cost of homes and the decline in housing affordability," he said.

CoreLogic's research director Tim Lawless said HomeBuilder brought forward demand, with land sales surging through the back half of 2020.

"The lift in land prices and residential construction costs along with the value of establish housing rising rapidly, is set to add further pressure to housing affordability challenges that are becoming increasingly apparent," Mr Lawless said.

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Building a home? This table below features construction loans with some of the lowest interest rates on the market.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.14% p.a.
6.20% p.a.
$2,047
Interest-only
Variable
$0
$835
70%
6.43% p.a.
6.68% p.a.
$2,143
Interest-only
Variable
$0
$530
90%
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
6.43% p.a.
6.68% p.a.
$2,143
Interest-only
Variable
$0
$530
90%
6.45% p.a.
6.20% p.a.
$2,515
Principal & Interest
Variable
$0
$1,520
60%
6.74% p.a.
6.42% p.a.
$2,247
Interest-only
Variable
$0
$600
90%
6.92% p.a.
6.95% p.a.
$2,307
Interest-only
Variable
$0
$300
80%
6.94% p.a.
7.19% p.a.
$2,313
Interest-only
Variable
$0
$530
80%
7.09% p.a.
7.45% p.a.
$2,363
Interest-only
Variable
$0
$500
80%
7.81% p.a.
7.84% p.a.
$2,882
Principal & Interest
Variable
$0
$600
69.99%
8.29% p.a.
8.62% p.a.
$3,016
Principal & Interest
Variable
$0
$0
80%
8.56% p.a.
8.58% p.a.
$2,853
Interest-only
Variable
$0
$600
69.99%
8.68% p.a.
8.75% p.a.
$2,893
Interest-only
Variable
$0
$800
95%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Pawan Kawan via Unsplash



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