Developer Tian An LFD has been given the green light from the NSW Government's Housing Delivery Authority to go ahead with its new Chatswood apartment development, <a href="https://www.apartments.com.au/new-apartments/hammond-greens-chatswood-5-9-gordon-avenue-chatswood-nsw-2067">Hammond Greens</a>.

The 35-storey mixed-use tower at 5-9 Gordon Avenue, on the edge of the Chatswood Bowls Club, will comprise 91 apartments, 22 of which will be affordable homes managed by Link Wentworth. They will sit above a two-level podium with retail and commercial space.

The plans were upsized from the early 25-storey scheme which proposed 64 apartments, following the Government's new planning provisions under the Housing SEPP that gave developers the opportunity to increase heights and floor place in exchange for an affordable housing component.

&nbsp;

The design by <a href="https://www.apartments.com.au/architects/fjc-studio">FJC Studio</a>&nbsp;builds on the concept first presented when the firm won the site’s design competition, describing Hammond Greens as “a unique form of vertical living that belongs on the North Shore - drawing on the vernacular and materiality of suburban living, and integrating native landscaping between the narrow tower forms”.

At ground level, 1,500 sqm of retail and commercial space will activate the podium, supporting a hybrid work environment and creating a stronger connection with the local community. Residents will also have access to an outdoor pool deck, yoga room, golf simulator, and landscaped gardens designed by <a href="https://www.apartments.com.au/landscape-architect/sturt-noble-landscapes">Sturt Noble Associates</a>.

&nbsp;

Located less than 500 metres from Chatswood Transport Interchange, the project contributes to the suburb’s growing pipeline of high-density development. It joins the likes of Changfa's recently launched The Anderson and Billbergia's Chatswood Grand Residences.

Hammond Greens is the first of two towers Tian is planning in Chatswood. They have a sister project, dubbed Hammond Place, just one street away at 15-19 Nelson Street. That will have around 110 apartments.

[smartcode_project_cta:default project_id=142900]

Joel Robinson

Tian An LFD greenlit for Hammond Greens apartments in Chatswood as project launches

The sought-after Latent Defects Insurance policy, offering off the plan apartment buyers peace of mind for 10 years post-completion, has made its way to Sydney’s harbourside. Boutique developer <a href="https://www.apartments.com.au/developers/toohey-miller">Toohey Miller</a> has secured this insurance for its newly launched Elizabeth Bay development, <a href="https://www.apartments.com.au/new-apartments/barncleuth-square-elizabeth-bay-4-4a-barncleuth-square-elizabeth-bay-nsw-2011">Barncleuth</a>. This marks the developer’s second project in the area, following the success of No. 1 Onslow Place.

Latent Defects Insurance, offered by <a href="https://www.apartments.com.au/news/resilience-latent-defects-insurance">Resilience Insurance</a>, provides cover for structural or waterproofing defects in new apartment buildings. It is a policy that only the developer or builder can take out, not the apartment purchaser.

Located just&nbsp;off Macleay Street, one of Sydney’s most desirable high streets, Barncleuth offers a rare collection of only 10 residences. With just two per floor, each oversized floorplan has been designed by SJB specifically for the owner-occupier.

[smartcode_project:default project_id=140184 project_image_fid=356342]

The five-storey building captures views over Rushcutters Bay and Paddington, blending contemporary brickwork with the expressive silhouettes of its Art Deco neighbours.

Inside, the residences, designed by David Hicks, prioritise generous scale and enduring quality, with a mix of two- and three-bedroom layouts. Expansive terraces and cross-ventilated interiors maximise light and airflow, while sustainable features such as a green roof and locally sourced materials reflect SJB’s commitment to long-term liveability.

[smartcode_project:default project_id=140184 project_image_fid=356341]

Developer Toohey Miller, led by Nick Couloumbis, says the design aims to bring lasting quality to an area long celebrated for its apartment heritage.

"It's a stone's throw from the best restaurants in Sydney. Some people call it the Soho of Sydney," Couloumbis told Apartments.com.au when the project was approved.

[smartcode_project:default project_id=140184 project_image_fid=356337]

By securing <a href="https://www.apartments.com.au/news/resilience-latent-defects-insurance">Resilience Latent Defects Insurance</a>, Barncleuth joins a growing group of premium Sydney projects adopting the gold standard in building protection.&nbsp;

The cover, provided before construction begins, ensures any hidden structural or waterproofing defects are repaired immediately, without lengthy litigation or fault disputes.

Resilience Insurance CEO Corey Nugent said the product has been a catalyst for renewed confidence in the off the plan market.&nbsp;

“Ultimately what we’re trying to do is build better buildings consumers can trust. When buyers take possession, they have full insurance protection from day one, for 10 years,” Nugent explained.

Unlike traditional policies such as strata or construction insurance, Resilience LDI is a first-resort, strict liability policy, meaning repairs are covered immediately without needing to prove negligence. Coverage extends to foundations, load-bearing walls, and waterproofing, the elements most critical to long-term structural integrity.

Regarded construction firm Jasara has been appointed to deliver Barncleuth. They are forecasting an early 2027 completion.

[smartcode_project_cta:default project_id=140184]

Toohey Miller brings 10-year Latent Defects Insurance to Elizabeth Bay as Barncleuth apartments launch

<a href="https://www.apartments.com.au/developers/golden-sedayu">Golden Sedayu</a> has unveiled plans for the next phase of its landmark $4 billion <a href="https://www.apartments.com.au/new-townhouses/burswood-point-saintly-entrance-burswood-wa-6100">Burswood Point</a> project, just 3.5km from the Perth CBD at the Belmont Racecourse site.

The Local Development Plan Application has been lodged for a world-class mixed-use hub (Precinct B) on the previously untouched 2.5km stretch of Swan River foreshore.

Designed by Skidmore, Owings &amp; Merrill (SOM), recognised for their work on the world’s tallest skyscraper, Burj Khalifa in Dubai and the One World Trade Centre in New York, Precinct B will feature 15 buildings, offering a mix of residential and commercial spaces including a shopping centre up to 30,000 sqm in size.

Complementing this, an internationally acclaimed five-star hotel, and a high-end pedestrian-friendly retail boulevard with vibrant day-and-night retail, dining, and entertainment venues, will provide exciting new ways for Perth residents to connect with the riverfront.

This latest milestone signals continued construction and expansion momentum across Perth’s premier riverfront community, which is set to attract local, national and international visitors.

[smartcode_project:default project_id=142314 project_image_fid=263304]

The masterplan features 110,000 sqm of public open space, which is comparable to other Perth landmarks including inner-city Langley Park and South Perth foreshore. The riverside precinct will be brought to life through a visionary landscape concept by globally renowned architectural practice Grant Associates.

With an impressive international portfolio, including Gardens by the Bay and Funan Mall in Singapore and Barangaroo South in Sydney, the firm brings expertise in creating environments that harmonise with surrounding amenity.

At 38 hectares, Burswood Point is one of the largest urban development projects ever undertaken in Australia, and one of Perth’s most transformative mixed-use developments.

Golden Sedayu Managing Director Andrew Sugiaputra said the company was working closely with SOM, Grant Associates and the Government of Western Australia to ensure Burswood Point’s design responds sensitively to its surroundings, reflecting and enhancing the character, history, and natural features of the local environment.

[smartcode_project:default project_id=142314 project_image_fid=1817]

“West Australians enjoy a privileged outdoor lifestyle and the Swan River is central to their enjoyment,"&nbsp;Sugiaputra said.

"We’re proud to be creating something truly spectacular and unique for the city, a place that feels alive from sunrise to sunset, a place where people can stay, shop, dine, and celebrate life on the river."

Precinct B builds on the outstanding success of Burswood Point’s first residential stage, which has been met with exceptional market demand. Somerset Residences, a two- tower luxury apartment development, and the exclusive riverfront homes collection are under construction and selling fast. As the number of Perth houses listed for sale remain at or near record lows, Burswood Point will deliver 4,500 new homes over the next 10 years.

“Golden Sedayu is dedicated to delivering on our promises,"&nbsp;Sugiaputra added.

"Our clients can buy with confidence, knowing that the price is fixed throughout construction. In an industry that has faced challenging market conditions, we’re proud to provide our clients complete peace of mind and confidence in the value of their investment."

&nbsp;

[smartcode_project_cta:default project_id=142314]

Golden Sedayu reveals next 15 buildings in Perth's $4 billion Burswood Point precinct

Rising at the base of The Remarkables,&nbsp;diversified New Zealand developer&nbsp;<a href="https://www.apartments.com.au/developers/safari-group">Safari Group</a>'s Mountain Oak Apartments presents a foothold in Frankton, one of Queenstown’s most dynamic and fast-growing locales.&nbsp;

Surrounded by soaring alpine scenery and year-round tourism drawcards, Mountain Oak Apartments is a masterplanned precinct that perfectly balances accessibility with lifestyle amenity.

<img alt="Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Frankton has emerged as a strategic growth zone just seven kilometres from Queenstown’s CBD, popular among both residents and investors for its proximity to the airport, the region’s two premier ski fields, Coronet Peak and Cardrona Alpine Resort, and an expanding network of shops, services, and recreation options. The apartments enjoy immediate access to the popular Market Street dining hub, as well as Five Mile Shopping Centre and the seasonal Remarkables Market, where locals gather for fresh produce and artisan goods.

The location also places residents near the gateway to South Island adventures. Scenic trails, golf courses, and Lake Wakatipu’s edge are within easy reach, while the historic village of Arrowtown, renowned for its preserved gold rush-era charm and walking routes, is a short drive away. Local transport connectivity is supported by the nearby airport and arterial roads, ideal for frequent travellers and short-term guests alike.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Living_WEB.jpg?VersionId=3LglY20Jp_MAzQYdvwODRWvtjL.cZcqI" />

Tourism-driven demand underpins strong investment fundamentals in Queenstown, with a noted shortage of short- and long-term accommodation stock. Mountain Oak’s 365-day visitor accommodation consent directly addresses this need, offering a rare opportunity to serve Queenstown’s dual population of holidaymakers and hospitality workers.

Construction of the 141 residences began in June 2025, with completion anticipated by mid-2027. Apartments range from one-bedroom to penthouses, with pricing from NZ$639,000. Dual-key options and low-maintenance finishes support a flexible rental model with strong gross return potential.

Staff Writer

From slopes to markets: Mountain Oak connects residents to the best of Queenstown

Deicorp is doubling down in the Hills Showground Station Precinct, the rapidly growing area surrounding the Castle Hill Metro and one of the state’s largest transit-oriented urban renewal sites.

Having launched Hills Showground Village several years ago, and now about 70 per cent through its build, Deicorp has brought another mini-masterplan to market just a few streets away.

The developer has now released the first of 873 residences in <a href="https://www.apartments.com.au/new-apartments/showground-pavilions-castle-hill-3-andalusian-way-castle-hill-nsw-2154">Showground Pavilions</a>, five new buildings located just 500 metres from the Metro, which connects Castle Hill residents to Martin Place in around 37 minutes.

[smartcode_project:default project_id=150067 project_image_fid=351416]

The mix includes one, two, and three-bedroom apartments, as well as a limited release of garden terrace homes with studies.

Designed by <a href="https://www.apartments.com.au/architects/turner-studio">Turner Studio</a> and <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a>, the residences are configured around a network of landscaped courtyards and podium-level gardens, with additional rooftop terraces offering views across the district.&nbsp;Communal amenities include a 3,500 sqm public park, playgrounds, shaded seating areas and walking and cycling paths.

[smartcode_project:default project_id=150067 project_image_fid=351416]

Interiors feature flexible layouts with oversized living areas, deep balconies, SMEG kitchen appliances and floor-to-ceiling glass to maximise light and airflow.&nbsp;

Many apartments include a study space, while select residences offer private outdoor areas. A total of 44 apartments have been designated as affordable housing for key workers, such as nurses, teachers and police officers.

[smartcode_project:default project_id=150067 project_image_fid=351413]

On top of its strong connectivity to the city, Deicorp has delivered significant new amenity to the area. The developer recently opened the 9,500sqm, four-level retail precinct at Hills Showground Village, which includes 26 specialty retailers and a 1,400sqm public plaza, creating a new community hub for shopping, dining, fitness, and everyday convenience. Castle Towers, one of Australia’s largest shopping centres, is also just one Metro stop away.

Between Hills Showground Village and Showground Pavilions, Deicorp is delivering more than 1,300 new homes to the rapidly growing Castle Hill precinct, representing a $2 billion investment in the suburb.

Showground Pavilions is one of several Metro-linked projects in Deicorp’s pipeline, joining developments at Tallawong Village, Zetland, Five Dock, Macquarie Park and Crows Nest.

[smartcode_project_cta:default project_id=150067]

Deicorp expands Castle Hill footprint with Showground Pavilions launch

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.

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?

Preliminary data by research giant Charter Keck Cramer reveals a 54 per cent decline in Build to Sell apartments across Australia's capital cities, while the Build to Rent boom continues with a 378 per cent increase over the last five years.

Charter Keck Cramer's upcoming National State of the Market Report - Key Metropolitan Areas, scheduled for release in September, will reveal&nbsp;a dramatic transformation in apartment supply patterns across Australia's capital cities between FY2016-2020 and FY2021-2025.

The Build to Sell (BTS) apartment sector has experienced a substantial contraction, with total supply falling by 54 per cent compared to the previous five-year period. The decline represents a reduction of 149,200 apartments across all capital cities.

<img alt="BTS Charter Keck Cramer" data-entity-type="file" data-entity-uuid="3db2ddf3-e7c0-481f-b8b9-63efb365cb80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.26.34%E2%80%AFAM.png?VersionId=bsQl8inhZA7FeiPamnGvw1tse0obBdSd" />

Sydney led the downturn with a decrease of 73,600 apartments, followed by Melbourne (-42,800) and Brisbane (-26,800). Perth and Adelaide also recorded significant declines of 6,400 and 2,400 apartments respectively. Only Gold Coast and Canberra bucked the trend, with modest increases of 500 and 2,300 apartments.

In stark contrast, the Build to Rent (BTR) sector has emerged as a major force in the apartment market, recording a remarkable 378% increase in supply. This growth added 8,590 apartments across the capital cities during FY2021-2025. Melbourne dominated BTR growth with 6,160 additional apartments, while Sydney contributed 2,100 units. Brisbane and Canberra also recorded growth of 800 and 330 apartments respectively. Gold Coast and Perth recorded minor declines, while Adelaide maintained steady levels.

<img alt="BTR CKC" data-entity-type="file" data-entity-uuid="ca13ffd4-ab93-4828-afd2-4c3dccbd2b51" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-20%20at%2011.28.54%E2%80%AFAM.png?VersionId=SXNnpcJuFD36ViWOwF6izBBqcQc3NWao" />

“These preliminary findings indicate a fundamental shift in Australia's apartment development landscape, with traditional Build to Sell models giving way to institutional Build to Rent developments,” said Richard Temlett, Charter Keck Cramer’s National Executive Director of Research.

"This transition reflects changing investor preferences, regulatory environments and housing affordability challenges across major metropolitan areas.”

The complete Charter Keck Cramer National State of the Market Report – Key Metropolitan Areas will provide comprehensive analysis of these trends, their underlying drivers and implications for developers, investors and policymakers when released in September.

Build to Sell apartment supply drops 54% in five years across Australian capital cities

Ahead of the Australian federal election in early May, both the Labor and Liberal parties have announced their plans to tackle Australia's housing crisis, if elected.

Their approaches reflect broader ideological divides—Labor leaning toward government-backed initiatives and equity access, while the Liberals counter with a market-based approach focused on deregulation, migration control, and leveraging super savings.

<h2>Labor’s Housing Vision: Build Big and Back Buyers</h2>

The Albanese Government has laid out an ambitious housing reform agenda with a two-pronged focus: enabling easier access to homeownership and ramping up housing supply.

5 per cent Deposit Guarantee for All First Home Buyers

At the heart of Labor’s policy is a major expansion of the Home Guarantee Scheme. The government will guarantee part of the loan for any first home buyer, allowing them to purchase a home with just a five per cent deposit and avoid Lenders Mortgage Insurance – regardless of their income. There are no caps on the number of places, and property price limits have been significantly raised.

"It means a Sydneysider can buy a $1 million apartment with a $50,000 deposit, or a Queenslander an $850,000 home with $42,500 upfront," the government announced.

Labor claims this initiative has already helped over 150,000 Australians step into homeownership sooner.

$10 Billion Housing Supply Boost

To address the long-term housing shortfall, Labor is investing $10 billion to build up to 100,000 new homes in partnership with state governments and developers. These homes will be reserved exclusively for first home buyers.

The government points to its broader $43 billion Homes for Australia Plan, which includes:

<ul>
	<li>55,000 social and affordable homes (28,000 already underway),</li>
	<li>A 45 per cent increase in rent assistance for one million low-income renters,</li>
	<li>Nationwide efforts to improve renters’ rights.</li>
</ul>

Labor also touts progress in easing builder shortages and increasing building approvals, positioning this as the biggest housing build since the post-WWII boom.

<h2>Liberal’s Alternative: Cut Red Tape, Fund Infrastructure, Manage Migration</h2>

The Coalition has framed Labor’s housing woes as the product of mismanagement, blaming high inflation, red tape, and an unsustainable migration surge.

Unlocking Land and Infrastructure

The Coalition pledges to unlock up to 500,000 new homes by investing $5 billion in essential infrastructure (water, sewerage, power) to make development-ready land viable.

They also propose:

<ul>
	<li>A freeze on changes to the National Construction Code for 10 years,</li>
	<li>Incentives for 400,000 apprentices and trainees to boost the building workforce,</li>
	<li>Deregistering the CFMEU to reduce union-driven costs and delays.</li>
</ul>

Supercharged Super Access

In a move targeting young Australians, the Liberals would allow first home buyers to access up to $50,000 of their superannuation to buy their first property. The withdrawn amount must be repaid upon selling the home to preserve retirement savings.

Migration Cuts to Ease Demand

The Coalition links housing demand pressures to record migration and pledges a dramatic overhaul:

<ul>
	<li>A two-year ban on foreign investors and temporary residents purchasing existing homes,</li>
	<li>A reduction in permanent migration to 140,000 per year (down from 185,000),</li>
	<li>Reforms to international student visa numbers and fees.</li>
</ul>

They claim these changes would free up 40,000 homes in the first year and over 100,000 in five years.

Economic Management to Tame Inflation

Finally, the Coalition connects housing affordability with monetary policy, arguing that Labor’s “wasteful spending” is fueling inflation and interest rates. By restoring economic discipline, they say, housing costs can be brought under control.

<h2 data-end="3855" data-start="3822">Key Contrasts at a Glance</h2>

<table data-end="5020" data-start="3857">
	<thead data-end="4002" data-start="3857">
		<tr data-end="4002" data-start="3857">
			<th data-end="3890" data-start="3857">Policy Area</th>
			<th data-end="3946" data-start="3890">Labor</th>
			<th data-end="4002" data-start="3946">Liberal</th>
		</tr>
	</thead>
	<tbody data-end="5020" data-start="4149">
		<tr data-end="4294" data-start="4149">
			<td data-end="4181" data-start="4149">Deposit Support</td>
			<td data-end="4238" data-start="4181">5% deposit with government loan guarantee</td>
			<td data-end="4294" data-start="4238">Access up to $50k super for deposit</td>
		</tr>
		<tr data-end="4439" data-start="4295">
			<td data-end="4327" data-start="4295">Housing Supply</td>
			<td data-end="4384" data-start="4327">100,000 homes via $10B investment</td>
			<td data-end="4439" data-start="4384">500,000 homes via $5B infrastructure fund</td>
		</tr>
		<tr data-end="4584" data-start="4440">
			<td data-end="4472" data-start="4440">Migration Impact</td>
			<td data-end="4529" data-start="4472">No cap changes announced</td>
			<td data-end="4584" data-start="4529">Cuts to migration and foreign property buyers</td>
		</tr>
		<tr data-end="4730" data-start="4585">
			<td data-end="4617" data-start="4585">Rental Support</td>
			<td data-end="4674" data-start="4617">45% increase in rent assistance; renter protections</td>
			<td data-end="4730" data-start="4674">No specific rental measures announced</td>
		</tr>
		<tr data-end="4875" data-start="4731">
			<td data-end="4763" data-start="4731">Construction Workforce</td>
			<td data-end="4820" data-start="4763">Addressing shortages with general industry support</td>
			<td data-end="4875" data-start="4820">400,000 new apprentices and SME incentives</td>
		</tr>
		<tr data-end="5020" data-start="4876">
			<td data-end="4908" data-start="4876">Red Tape &amp; Regulations</td>
			<td data-end="4965" data-start="4908">No construction code freeze mentioned</td>
			<td data-end="5020" data-start="4965">10-year freeze on code changes; union crackdown</td>
		</tr>
	</tbody>
</table>

Both parties acknowledge the severity of the housing crisis, but their paths to solving it couldn’t be more different. As the nation approaches another federal election, housing will remain a central battleground – and voters will need to choose which vision best fits their dream of owning a home.

Both parties acknowledge the severity of the housing crisis, but their paths to solving it couldn’t be more different

Australian Federal Election 2025: How Labor and Liberal plan to fix the housing crisis

The Reserve Bank has cut the official cash rate for the first time since the COVID pandemic.

The pandemic saw rates shoot down to record 0.1 per cent lows, before they were quickly increased over a short period to try and tackle rising inflation.

The hikes stopped at 4.35 per cent, where the cash rate has been since November 2023. Now inflation is returning to the RBA's two to three per cent target band, they've cut the cash rate by 0.25 per cent to 4.1 per cent.

The Big Four banks have already cut their interest rates on the back of the decision, while most believe there are several more cuts to come in 2025.

<h2>What does this mean for the off the plan market?</h2>

The off the plan market functions quite differently from the established property market. Prospective homeowners don’t take out a mortgage until the property is completed. This means that the current interest rate may become irrelevant if the building is not expected to finish for several years—your borrowing capacity will be based on the rate at the time of settlement.

That said, new developments are completed every month, and those nearing completion will see buyers settle based on the current interest rates.

Lower interest rates allow buyers to borrow more, as their ability to service a loan increases when the cost of borrowing decreases due to the lower rates.

How it will impact the off the plan apartment market is the level of demand for property as a whole. Lower interest rates increase confidence in the property market which drives demand, and demand drive price increases.

Expect to see more transactions across both the established and new property markets in 2025 and 2026 compared to the previous two years.

RBA cut interest rates amid inflation decline

Buying off the plan isn't for everyone.

Every building begins as a new build before aging into the secondhand property market, much like cars transition from the showroom to the used car lot. While most Australians purchase established homes—akin to the prevalence of used cars on our roads—the majority of property buyers are more familiar with existing real estate.

While the concept of off the plan purchasing has been around for decades, the trend only really gained momentum in Australia in the 2000s, following a recovery from the early 1990s recession. As the market stabilized, property developers increasingly saw opportunities in multi-residential developments, particularly in major cities like Sydney, Melbourne, and Brisbane.

As urban centers grew, there was rising demand for apartments, particularly in inner-city areas. The trend toward apartment living grew as people sought more affordable and convenient living options close to city centers.

Now, off the plan buying in Australia is widespread and growing, and the type of purchasing has become favorable for those who are willing to wait for construction to complete on their new home. It favors first home buyers who want to get into the property market but aren't ready to make repayments or are increasingly frustrated by being outbid at auctions in the more traditional established market.

Downsizers have been the biggest movement in recent years. These buyers typically purchased their family home decades ago and are now ready to move into something closer to the city from the suburbs they've lived in. They seek properties that are low-maintenance and “lock and leave,” ideal for travel in retirement, and prefer buildings with high levels of amenities for added convenience.

While there are many factors that contribute to the popularity of off the plan buying, in this article, we’ve looked at eight of the biggest reasons why people choose this option.

<h2>Floorplans designed for 21st-century living</h2>

The majority of Australia's apartment buildings, particularly the classic 'walk-up' apartments, were built four or five decades ago.

While these properties present at a more affordable price point compared to brand-new developments, they don’t have the modern floorplan configurations that today's buyers expect for 21st-century living.

Many of these older buildings still feature communal coin-operated laundries, carport parking, and lack modern intercom systems for security.

New apartments now typically feature integrated study nooks (a response to the growing work-from-home trend), concealed internal laundries, balconies to extend the main living area, and kitchens with floating islands that create additional prep or dining spaces.

<h2>Customisation</h2>

Off the plan buyers often have the option to customise their apartments. This could be as simple as selecting a color scheme or upgrading appliances, or as significant as combining two apartments to create a larger unit or changing internal walls to adjust room configurations.

For an owner to do this in an established apartment, a renovation of that scale could cost hundreds of thousands of dollars, and it may not even get past the strata committee, which can be notoriously difficult when it comes to apartment renovations.

Read more:&nbsp;<a href="/news/vic/why-the-ability-to-customise-is-a-crucial-offering-in-the-off-the-plan-apartment-market">Why the ability to customise is a crucial offering in the off the plan apartment market</a>

<h2>Sustainability</h2>

New apartment buildings have a responsibility to focus on sustainable practices.

Most state governments enforce sustainability requirements, and now buildings have to be 7-star NatHERS rated, which means they must include energy-efficient features like double glazing and better insulation.

While it's a positive for the environment, it's also a benefit for new apartment buyers. Energy-efficient appliances and standard practices like solar panels and rainwater harvesting can save thousands on electricity and water bills every year.

You’d be hard-pressed to find an apartment building built before 2000 with solar panels.

<h2>Technology</h2>

Developers today go the extra mile to set their developments apart, and a small feature they often include is advanced technology.

Some developers offer keyless entry systems, whether through keypad door handles or facial recognition, as well as smart home capabilities like routine-driven lights or Wi-Fi-controlled air conditioning. Many fixtures in an apartment, from blinds to air conditioning and lighting, can be controlled remotely via an app, whether at home or not.

This enhances both the functionality and security of living in these buildings.

Developers creating large towers or masterplanned communities in particular understand they're not just building homes, but fostering a community. They&nbsp;go as far as offering a mobile phone application, which, depending on the project, can be used to reserve any of the bookable facilities, request concierge services, or see what community events are taking place.

<h2>Facilities</h2>

One of the biggest differences between apartment buildings from the 1960s and those of today is the level of facilities.

While the facilities offered vary depending on the size of the apartment building, developers dedicate significant resources and floorspace to ensure that residents are well-catered for within the building.

At a minimum, developers allocate large portions of the site for walkable gardens, often landscaped by a professional. Smaller boutique buildings, which may not have a pool or gym, often feature rooftop communal spaces with barbecue facilities and alfresco dining areas.

Larger skyscraper towers go all out with luxury facilities. It's no longer enough to have just a pool and a basic gym. Now, towers are offering facilities that rival those of high-end hotels.

Lap pools, accompanying spas, and daybeds are now standard. Gyms are often replaced with wellness centres that include saunas, hot and cold plunge pools, and rooms reserved for classes or yoga.

Private dining spaces with large communal kitchens have become common, and many developers in Brisbane and the Gold Coast orient these facilities on the rooftop to take advantage of the warmer climate.

In recent years, some towers have even included golf simulators, cinemas, and karaoke rooms. The majority now feature co-working spaces. Buildings with a prominent street presence often include a ground-level café, while those on larger sites may offer multiple hospitality and retail venues at street level, along with office spaces on the lower floors.

Parking is also becoming more innovative, with license plate recognition systems that sometimes eliminate the need for key fobs.

<h2>Location</h2>

The location of new developments tends to be more strategically selected than older buildings.

Developers nowadays ensure their sites are close to major transport links or local amenities like parks, beaches, and shopping areas. Buyers are less willing to compromise on location when they’re paying more than ever before for a new apartment.

<h2>The fact it's brand new</h2>

Much like the customisation reason, the fact that the apartment is brand new is a huge selling point.

There’s no need to upgrade any fixtures or fittings once the apartment is complete. New apartments feature top-of-the-line appliances, typically from brands like SMEG or BOSCH, with some luxury apartments offering Gaggenau appliances.

Additionally, improvements in flooring materials, like engineered timber and stone benchtops, provide durability and a modern finish that is resistant to wear and tear.

<h2>Financial benefits</h2>

Buying off the plan comes with several financial advantages, including potential stamp duty savings in certain states, which can significantly reduce costs on completion.

Additionally, the staggered payment structure in the off the plan market allows buyers to secure a property at today’s prices while saving for settlement during the construction period.

Generally, buyers pay 10 percent upon going unconditional on the contract, with the remaining 10 percent due on completion. Many developers, however, offer flexible deposit terms, which could be as low as five percent.

The deposit is placed in a protected trust account by the developer, ensuring that the money is safe and untouched, while also generating interest during this time. That interest is handed to the buyer upon completion.

Eight reasons why people buy an off the plan apartment

In Australia, a significant percentage of real estate transactions involve properties bought off the plan, yet this approach remains unfamiliar to many buyers.

Purchasing a property before it’s built can offer several opportunities, but it also comes with unique risks and considerations. Understanding the ins and outs of the off the plan buying process is crucial for making an informed decision.

In this article, we’ve highlighted the key factors to consider when buying off the plan, ensuring you’re well-prepared for this important investment.

<h2>1. What does "buying off the plan" mean?</h2>

Buying off the plan refers to purchasing a property, such as an apartment or house, that has not yet been constructed or is currently under construction.

Instead of viewing a finished property, buyers base their decision on building plans, designs, and artist renderings provided by the developer.

<h2>2. What are the advantages of buying off the plan?</h2>

<ul>
	<li>Potential Price Savings: Developers often offer competitive prices and incentives to secure early buyers, particularly before construction begins.</li>
	<li>Extended Saving Time: You typically only pay a deposit upfront, giving you more time to save for the remaining balance due upon completion.</li>
	<li>Capital Growth Potential: The property's value may appreciate during the construction period.</li>
	<li>Modern Design and Features: Enjoy new, contemporary designs and the latest amenities.</li>
	<li>Stamp Duty Savings: Some states and territories offer stamp duty concessions or exemptions for off-the-plan purchases, especially for first-home buyers.</li>
	<li>Tax Advantages for Investors: There can be potential tax deductions for investors, such as depreciation benefits.</li>
</ul>

<h2>3. What are the disadvantages and risks of buying off the plan?</h2>

<ul>
	<li>Project Delays: Construction timelines can be unpredictable, potentially leading to extended settlement periods.</li>
	<li>Potential for Value Fluctuations: The property market can change during construction, and the final value may be lower than the purchase price.</li>
	<li>Developer Bankruptcy: If the developer goes bankrupt, completion of the project may be jeopardized, and deposit recovery could be difficult.</li>
	<li>Limited Customization: Changes to the design or finishes might be restricted once construction has commenced.</li>
	<li>Unforeseen Costs: Be cautious of potential hidden costs or variations that can arise during the development process.</li>
</ul>

<h2>4. How does financing work for off the plan purchases?</h2>

Lenders may grant conditional loan approval (pre-approval) based on the projected value of the completed property. However, the final loan approval and amount are contingent upon a valuation conducted closer to settlement.

This final valuation ensures the property's value aligns with the loan amount and assesses any changes in your financial situation.

<h2>5. What is a sunset clause, and why is it important?</h2>

A sunset clause is a provision in the contract that allows either the buyer or the developer to terminate the agreement if construction has not reached a specific stage by a predetermined date. This clause protects buyers from indefinite delays and allows them to potentially recoup their deposit if the project faces significant setbacks.

<h2>6. Can I negotiate the price when buying off the plan?</h2>

Negotiation is possible, especially in the early phases of a development when the developer is seeking to attract initial buyers.

Be prepared to do your research and make a reasonable offer.

<h2>7. What should I check before signing an off the plan contract?</h2>

<ul>
	<li>Developer Reputation: Research the developer's track record and financial stability.</li>
	<li>Contract Terms and Conditions: Carefully review all clauses, paying close attention to payment schedules, sunset clauses, potential variations, and dispute resolution processes.</li>
	<li>Inclusions and Finishes: Obtain a detailed list of inclusions and specifications, including the quality and brand of fixtures and appliances.</li>
	<li>Seek Legal Advice: Consult with a solicitor or conveyancer to ensure you understand the legal implications of the contract before signing.</li>
</ul>

<h2>8. How is my deposit protected when buying off the plan?</h2>

Deposits for off the plan purchases are held in a trust account until settlement. This protects your funds in case of developer insolvency or project failure.

Be sure to understand the specific deposit protection regulations in your state or territory.

Buying off the plan refers to purchasing a property, such as an apartment or house, that has not yet been constructed or is currently under construction

The top eight considerations when buying off the plan

In the dynamic world of insurance, there is a product that has been quietly making waves across the globe for decades – Latent Defects Insurance (LDI).

Originating in Europe, this innovative insurance coverage has now found its way into the Australian market, promising a brighter future for the construction industry.&nbsp;

Latent Defects Insurance, also known as structural defects insurance or building warranty insurance, provides the most comprehensive protection to property owners, covering them against any hidden defects in construction projects. These defects may not be immediately apparent but could manifest months or even years after the completion of the project, leading to costly repairs and legal disputes.&nbsp;

Read more:&nbsp;<a href="/expert-insights/building/the-advantages-of-first-resort-strict-liability-latent-defects-insurance-for-off-the-plan-property-buyers">The advantages of first resort, strict liability, Latent Defects Insurance for off the plan property buyers</a>

The history of Latent Defects Insurance can be traced back to the mid-20th century when it was first introduced in Europe to address growing concerns surrounding construction defects. As the construction industry evolved and became more complex, the need for comprehensive, structural insurance coverage became increasingly apparent.&nbsp;

Over the years, Latent Defects Insurance gained popularity in countries like the United States, Canada, and the United Kingdom, where it became a standard requirement for large-scale construction projects. The insurance industry recognised the value of this product in mitigating risk and fostering a culture of accountability among construction stakeholders.

Now, Latent Defects Insurance is gaining traction in Australia, with nationwide availability transforming the construction landscape. This development marks a significant milestone for the Australian construction industry, offering newfound security and peace of mind to property owners, investors, developers, and builders alike.

Read more:&nbsp;<a href="https://industry.urban.com.au/updates/how-resilience-ldi-helps-off-the-plan-apartment-developers">How Resilience LDI helps off the plan apartment developers</a>

The introduction of Latent Defects Insurance in Australia is already having a transformative impact on the industry, promoting higher construction standards, reducing disputes, and enhancing overall project quality. With this innovative insurance coverage now widely accessible, the future of construction in Australia looks more promising than ever before.

The evolution of Latent Defects Insurance, from a niche product to a mainstream offering, is a testament to its effectiveness in addressing the complex challenges of the construction industry. As latent defects insurance continues to expand its reach, the future of construction worldwide, and especially in Australia, looks brighter and more secure than ever.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/uV-8Z3O3qH4?si=B-LsOmHGJeBM4JHj" title="YouTube video player" width="560"></iframe>

The pioneering insurance firm, the only insurer who can offer Latent Defects Insurance in Australia, is Resilience Insurance.

Resilience Insurance CEO Corey Nugent says the insurance benefits both the purchaser and the developer.

“Ultimately what we’re trying to do is build better buildings the consumers can have trust in, but more importantly improve the post-completion and settlement process, so that when buyers take possession, they have full insurance protection, from day one, for 10 years” Nugent says.

“The insurance protects the buyer from any structural defects in the building, and developers who have taken Resilience LDI have reported an uptick in both sales volumes and sale values compared to competing developments that don’t have Resilience LDI.”

To find out more about Resilience Latent Defects Insurance, <a href="/news/resilience-latent-defects-insurance">click here</a>.

Latent Defects Insurance provides the most comprehensive protection to property owners, covering them against any hidden defects in construction projects

The evolution of Latent Defects Insurance worldwide and its nationwide availability in Australia

Three years ago, credit reporting giant Equifax identified a need to provide transparency to the development market in Australia.

In 2022 they launched iCIRT, a voluntary rating tool in which developers, builders and construction consultants all over Australia could apply to become a credited iCIRT rated company.

Since then the likes of Sekisui House, Stockland and Deicorp have all become an iCIRT rated developers.

We recently caught up with Brad Walters, Head of Product and Rating Services at Equifax, to talk more about iCIRT.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/8j54HtqZzBY?si=X5veMco56yCkOT-v" title="YouTube video player" width="560"></iframe>

<h2>What is iCIRT?</h2>

iCIRT stands for the&nbsp;Independent Construction Industry Rating Tool.

iCIRT ratings were developed in consultation with the government, regulators, industry and market associations to help purchasers find trusted residential building professionals.

<h2>How does it help buyers?</h2>

"iCIRT was designed to support and improve transparency and to provide buyers and investors with independent information that they can turn to that could give them confidence," Walters says.

The iCIRT rating system is voluntary for any developer, builder or construction consultant&nbsp;in Australia.&nbsp;

The process of becoming iCIRT-rated involves Equifax undertaking a detailed assessment of the company, from previous developments and experience to financial records and company structure.

Following the assessment, Equifax provide an iCIRT rating for the company between zero to five stars - the more starts, the more confidence in the developer.

A 3-gold star rating or higher indicates a trustworthy business with a demonstrated ability to honour its commitments and fix defects.

<h2>How do I find iCIRT-rated businesses?</h2>

iCIRT has a register&nbsp;<a href="/news/nsw/how-icirt-is-changing-the-off-the-plan-industry-for-the-better-the-sydney-developers-to-first-secure-the-accreditation">of all property professionals</a>, including developers and builders, who are iCIRT rated.

Some 130 companies now have an iCIRT rating.

Michael Bird

How iCIRT is helping build confidence in the off the plan apartment market

For the first time since the Reserve Bank of Australia began hiking rates in May 2022, markets are pricing in four interest rate cuts within the next 12 months. 
 
At the end of each trading day, the ASX publishes its&nbsp;RBA Target Rate Tracker&nbsp;which calculates the probability of changes in the overnight cash rate based upon the implied yields of very short-term (30-day) interest rate futures.&nbsp; 
 
The ASX’s Tracker as at yesterday’s close shows that markets are predicting the RBA will first cut interest rates by 25 basis points in February 2025, with three more in the run-up to August. The RBA meets eight times in 2025 (February, April, May, July, August, September, November, and December). 
 
The RBA’s official cash rate sits at 4.35 per cent.

Any movement in the official cash rate, and most importantly banks passing on those interest rate changes, will help address several challenges in the off the plan apartment space.&nbsp;

The first one is demand. A lower interest rate environment means buyers will have more money to spend due to increased serviceability. Buyers haven't had an opportunity to extend their serviceability in over two years.

For a prospective buyer wanting to take out a $641,000 mortgage, the average mortgage size across Australia according to the ABS, four rate cuts would translate to over $5,000 in savings per year on average, Finder analysis suggests.

On top of lower repayments, there's increased serviceability, meaning a buyer can spend more than they could if the interest rate is higher.&nbsp;

Average Aussie mortgage repayments

<table>
	<thead>
		<tr>
			<th>&nbsp;</th>
			<th>Cash rate</th>
			<th>Average home loan rate*</th>
			<th>Average monthly repayment</th>
			<th>Average monthly decrease</th>
			<th>Average annual repayment</th>
			<th>Average annual decrease</th>
		</tr>
	</thead>
	<tbody>
		<tr>
			<td>September 2024</td>
			<td>4.35%</td>
			<td>7.07%</td>
			<td>$4,296</td>
			<td>-</td>
			<td>$51,552</td>
			<td>-</td>
		</tr>
		<tr>
			<td>1 rate cut</td>
			<td>4.10%</td>
			<td>6.82%</td>
			<td>$4,189</td>
			<td>$107</td>
			<td>$1,284</td>
			<td>$1,284</td>
		</tr>
		<tr>
			<td>2 rate cuts</td>
			<td>3.85%</td>
			<td>6.57%</td>
			<td>$4,083</td>
			<td>$213</td>
			<td>$2,556</td>
			<td>$2,556</td>
		</tr>
		<tr>
			<td>3 rate cuts</td>
			<td>3.60%</td>
			<td>6.32%</td>
			<td>$3,977</td>
			<td>$319</td>
			<td>$3,828</td>
			<td>$3,828</td>
		</tr>
		<tr>
			<td>4 rate cuts</td>
			<td>3.35%</td>
			<td>6.07%</td>
			<td>$3,873</td>
			<td>$423</td>
			<td>$5,076</td>
			<td>$5,076</td>
		</tr>
		<tr>
			<td colspan="5">Source: Finder, RBA, ABS. *Owner-occupier variable discounted rate. Repayments based on the average loan of $641,143 (ABS data analysed by Finder).</td>
			<td colspan="2"><img alt="" data-bit="iit" data-entity-type="" data-entity-uuid="" height="31" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXco5HuNAjqBICpVCvo3HzWGg4p7cL4LNNgRMBhoA67KYJfOqqJQa7ZSRA71Ju988qgvPsCeSbWhwDfAV4E8iSpKXp6wBkUPMclLxe1_IMfwemjiI4eU8l9Q_QrMukqJYMAzm_jSHgst3qtOzFkqULeIMf8?key=iigATMhksU1ODdPeSGzwIA" width="170" /></td>
		</tr>
	</tbody>
</table>

Not only will buyers have more money to spend due to increased serviceability, but the supply of new apartments is likely to increase if borrowing costs for the developers are reduced.

Many developers across the country have new apartment projects ready to launch but are waiting for more favorable news on interest rates. It seemed at the start of the year that rates would be going down by mid-2024; however, inflationary pressure has led the RBA to maintain a hold on rates in each of the five meetings this year.

The Board will meet again next week, expecting to hold the official cash rate again at 4.35 per cent.

For a prospective buyer wanting to take out a $641,000 mortgage, the average mortgage size across Australia according to the ABS, four rate cuts would translate to over $5,000 in savings per year on average, Finder analysis suggests

Markets price in four RBA rate cuts in next 12 months: What it means for the off the plan apartment market

Resilience Latent Defects Insurance is changing the way people buy off the plan property in Australia.

This insurance, currently only available through Resilience Insurance, provides off the plan apartment buyers with a 10-year warranty on their new apartment and the building it's situated in.

The cover is purchased by the property developer/builder (pre-construction) and is designed to protect owners against any immediate or future problems with the structural components of their new property, from leaks to cracks and everything in between.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/uV-8Z3O3qH4?si=IHsYgPTGMP5Cb7Td" title="YouTube video player" width="560"></iframe>

<h2>Boosting Confidence in Off the Plan Apartments</h2>

In this evolving market, developers and project managers have a unique opportunity to enhance buyer confidence and drive sales through LDI. Offering a 10-year warranty on structural components of new apartments, LDI covers issues from leaks to cracks, providing a robust solution that has been a global staple for over seventy years.

<h2>Advantages for Developers and Buyers</h2>

LDI is a game-changer for the off-the-plan market. By incorporating LDI, developers ensure buyers receive comprehensive protection from the moment they take possession. This coverage not only addresses post-completion structural defects but also issues arising during the construction phase. Leading developers like Abadeen, Deicorp, Kanebridge, and Coronation Property have adopted LDI, witnessing increased sales and property value.

[smartcode_project:default project_id=112966 project_image_fid=213736]

<h2>Building Market Confidence</h2>

Corey Nugent, CEO of Resilience Insurance and a pioneer of LDI in Australia, emphasises that LDI enhances the construction process and post-settlement phase. With expert partners involved from the beginning, LDI ensures quality and reliability, alleviating concerns about structural integrity. This proactive approach is crucial in a market where trust in delivery quality is paramount.

[smartcode_project:default project_id=114189 project_image_fid=272865]

<h2>Economic Impact and Market Leadership</h2>

According to a survey by MatterFact, 60% of potential buyers are willing to pay over 1.5% of the apartment price for LDI coverage, making it a cost-effective investment for developers. Projects with LDI have reported a 4-5% price increase compared to those without, highlighting the financial benefits for developers. NSW Building Commissioner David Chandler supports LDI, viewing it as a pivotal reform aligned with the state's commitment to improving construction standards and reducing litigation.

For property developers and project managers, integrating LDI into their offerings is not just about insurance—it's about positioning themselves as industry leaders dedicated to quality and buyer assurance. LDI boosts buyer confidence, enhances project marketability, and contributes to resolving Australia's housing crisis by making off-the-plan purchases more attractive and secure.

<h2>Read more about Resilience Insurance Latent Defects Insurance</h2>

<a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?</a>

<a href="/news/nsw/dcn-group-to-develop-first-bankstown-apartment-development-with-latent-defects-insurance">DCN Group to develop first Bankstown apartment development with Latent Defects Insurance</a> 
&nbsp;

For property developers and project managers, integrating LDI into their offerings is not just about insurance—it's about positioning themselves as industry leaders dedicated to quality and buyer assurance

Everything an off the plan developer and buyer needs to know about Resilience Latent Defects Insurance

First home buyers are shrugging off the recent interest hikes with a spike in new mortgages for those looking to enter the market for the first time.

Data from the ABS Lending Indicators showed a 25.8 per cent increase in the value of new loan commitments for first home buyers, up to $5.25 billion nationally.

The value of new loan commitments for investors was rising higher than owner occupier borrowers. Investment lending increased by 18 per cent to reach $9.72 billion while owner occupier new loan commitments were up only 10.6 per cent over the year to reach $17.86 billion in loans.&nbsp;&nbsp;

A total of $27.58 billion in new home and investment property loans were taken out in November, up by a modest one per cent from October and 13.1 per cent over the year.&nbsp;&nbsp;

Investors are up for the month by 1.9 percent, which compares to an increase of only 0.7 percent for owner occupiers.

"You could say investors are back," Canstar’s lending expert Steve Mickenbecker says, with new lending up by 18 percent year-on-year, suggesting they hold a healthy expectation for property prices over the coming few years.

“It’s first home buyers who are leading the way with new lending commitments up by 2.8 percent for the month and 25.8 percent for the year,"&nbsp;Mickenbecker says.

"Looking at the number of buyers, first home buyers’ participation represents 37 percent of all new loans."

The biggest spike in first home buyers was in Queensland, where number of loans issued jumped 10.8 per cent in November. Victoria rose 1.2 per cent and Sydney fell 4.8 per cent, unsurprisingly given the cost of buying property in much higher in the harbour capital.

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