Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

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?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<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/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" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<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_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
The W Hotel brand could set its foundations in Australia soon if local developer Jinshan Investments has its way.  
The developer has proposed to build a 30-storey W Hotel on 20 Bourke Street (pictured below), which is currently occupied by century-old music venue Palace Theatre.  
<img src="/images/stories/2013/07/w-hoteljuly30.jpg" width="470" height="277" alt="w-hoteljuly30">
The project will cost $180 million, and will see 205 hotel rooms and 145 luxury apartments managed by the Starwood Hotel group added to Bourke Street’s east end.  
According to a Resort Publishing report, Jinshan Investments purchased the Palace Theatre at auction last year after former owners Kefi Nominees went into administration. Kefi Nominees were granted a short-term lease to continue holding concerts.  
Music fans are opposing the proposed development. At present, an <a href="https://www.thepetitionsite.com/381/189/786/save-the-palace-theatre/" target="_blank">online petition</a> has garnered some 24,000 signatures to save the Palace Theatre. In addition, a Facebook page named “<a href="https://www.facebook.com/savethepalacemelb" target="_blank">Save the Palace Theatre – Melbourne</a>” has attracted some 28,000 “likes”.  
The Melbourne Heritage group has expressed its concern about the fate of the Palace Theatre.
In a <a href="https://melbourneheritage.org.au/2013/07/07/palace-theatre-on-bourke-st/">statement</a> posted on their website, they have called for the preservation of both the 1950s art deco façade and the 1916 interiors of the theatre because of its heritage significance.  
They also emphasised the cultural importance of the iconic venue, citing its evolution “from Edwardian theatre to revivalist church to nightclub to its latest incarnation as the Palace Theatre.”  
In addition, Planning Minister Matthew Guy has told ABC news that "the developer is dreaming if he thinks the government is going to approve this in the form in which it has been submitted. It is too tall, it is in the wrong location."  
While the Starwood Group said they were not in a position to answer queries with regard to the proposed closing of the Palace Theatre, they told Property Observer, “Starwood Hotels &amp; Resorts is very excited to be involved in the Bourke Street project and bringing the W brand back to Australia.”
</body></html>

dleow-BGaNPbHWyK

W Hotel set for site of Melbourne's iconic Palace Theatre

<html><body>
Australian Property Monitors senior economist Dr Andrew Wilson predicts Sydney residential price growth was set to exceed 7% and could reach 10% over the course of the year.
Dr Wilson expects prices will steadily increase until the Christmas break.
He has told his Fairfax Media blog readers that there is a real prospect that before year's end, the median price for Sydney houses will exceed $700,000.
He suggests the median price for Sydney units will exceed $500,000.
APM had Sydney house prices up 2.7% over the June quarter and 6.1% over the year to a median of $694,064.
APM had Sydney unit prices up 2.4% over the June quarter and 4.9% over the year to a median of $491,845.
 
</body></html>

jchancellor-FAypfDUnLy

Real prospect Sydney's median house price will exceed $700,000 during spring selling season: APM's Dr Andrew Wilson

<html><body>
A US bank says a bad GPS navigator was the reason it repossessed the wrong house.
Its homeowner Katie Barnett was away for a fortnight from her McArthur, Ohio, home which was wrongly repossessed.
She returned to the house, and climbed through the window, with the locks changed and many of their belongings taken in the foreclosure cleanout.
Ms Barnett is now battling the First National Bank of Wellston to give her $US18,000 ($19,400) for the lost items, but the bank wants her to show receipts for everything that's missing.
The bank says the house it meant to clean out was on the same street, just opposite.
Foreclosure properties in the neighbourhood include the $US29,900 three bedroom ranch on 2,4 hectares at 62529 Dunkle Creek Rd, Creola, OH.
Katie Barnett says she's even not a borrower with the First National Bank in Wellston who foreclosed on her house.
“They repossessed my house on accident, thinking it was the house across the street,” Barnett said.
“They told me that the GPS led them to my house,” Barnett said. “My grass hadn’t been mowed and they just assumed,” she told her local television station, 10TV.
<a target="_blank" href="https://money.msn.com/now/post--ohio-bank-repossesses-womans-home-by-mistake">MSN Money </a>says the same thing happened to <a href="https://www.lasvegassun.com/news/2010/jan/02/they-forclosed-wrong-house/">Nilly Mauck</a> of Las Vegas in 2010 and twice in 2012 to a <a href="https://abcnews.go.com/Business/wells-fargo-mistakes-home-neighboring-foreclosed-home/story?id=17185239">retired California</a> couple.
</body></html>

GPS leads US bank foreclosure team to wrong Ohio house - or why you should always mow your front lawn

<html><body>
Quest serviced apartment hotels has plans to build a serviced apartment hotel to accommodate for the growing demand for accommodation at Melbourne airport.
The building will be located on the corner of South Centre Road and Annandale Road, in the airport's business park precinct.
It is due for completion in October 2014.
The hotel (pictured below) will provide 97 serviced apartment rooms, for people involved in “airport or aviation related business and training activities.”    
<img alt="questjuly30one" src="/images/stories/2013/07/questjuly30one.jpg" width="470" height="235">
“Providing more accommodation choice for people who are doing business at the airport, or are undertaking aviation training in the airport precinct, will support the future growth of airport and aviation related businesses in our local region,” said Melbourne Airport chief, Chris Woodruff.
“With more than 14,000 people directly employed in airport related roles, and around 200 different businesses operating from the airport precinct, Melbourne Airport is a major centre of employment and economic activity in Melbourne’s North West,” said Quest executive Andrew Weisz.
“Development of a new domestic terminal is underway and a new runway and a new road system to significantly ease congestion on the terminal precinct are just examples of the projects we are currently planning,” Mr Woodruff said.
The Melbourne Airport achieved six percent total passenger growth for 2012/13.
“The draft master plan highlights the economic and social importance of Melbourne Airport and how its future growth will continue to drive the Victorian economy, including more than doubling spending by interstate and international visitors from $8.5 billion to $18 billion by 2033.
It forecasts an increase in the number of jobs directly related to airport operations from more than 14,000 now to 23,000; and more than doubling the airport’s contribution to gross state product from $1.47 billion to $3.2 billion over the next couple decades.
</body></html>

gwestgarth-UNyZGFyQQF

Quest to build Tullamarine, Melbourne airport serviced apartments 

<html><body>
Melbourne’s cheapest auction sale price on the weekend was in the south east suburb of Glen Huntly, according to Australian Property Monitors.
It sold for $288,000, through Tom Grieve and Lachlan Chirgwin of Ray White.  
The ground floor 1/13 Wattle Avenue apartment features one bedroom, one bathroom and car port and sits on 45 square metres.
The block's last reported one bedroom sale was in 2009 when competition between investors and first home buyers pushed the sale price of 12/13 Wattle Avenue to $307,500.
“Modern with the opportunity to bring it into today, this ideal starter or investment is just moments to train, bus, parkland, outdoor pool and Glen Huntly and North Road shops,” pitched the agents at Ray White.
The unit caught the eye of four registered bidders. It was bought by an investor looking to renovate.
Its potential income was estimated as $270 weekly after renovation, which would reflect a yield of about 4.88%.
The cream rendered apartment is fully enclosed by fences and features access by intercom and automated double gates.
The bedroom boasts a view through the windows and glass door, into the front garden set off with a mature silver birch.
Neighbouring Caulfield and Carnegie, the median unit price in Glen Huntly sits at $422, 500, according to RP Data.
Glen Huntly’s median unit value has risen over the past five years by 17%.
Its median asking rental is $360 per week, according to RP Data, which reflects a 4.4% gross rental yield.
</body></html>

Glen Huntly $288,000 sale the cheapest weekend Melbourne auction result

<html><body>
Melbourne estate agents Brad Teal Real Estate sold eight out of nine properties at auction over the past weekend - a clearance rate of 89%.
This was well above the overall 71% clearance rate for Melbourne as measured by the Real Estate Institute of Victoria (REIV) from 506 auctions.
Director Brad Teal tweeted its auctions success to his 309 followers: 
<a target="_blank" href="https://twitter.com/BradTealRE"><img alt="brad_teal_tweet" src="/images/stories/2013/larry_uploads/brad_teal_tweet.jpg" width="470" height="85"></a>
</body></html>

po-LsXgBTHBmX

Brad Teal sells eight out of nine in Melbourne: Tweet of the Day

<html><body>
Dr Kim Hawtrey, associate director at BIS Shrapnel and author of its Building in Australia 2013 report, says Australia faces a critical 12 month period as the Australian economy transitions away from mining investment into non-mining sectors.

<a target="_blank" href="https://www.propertyobserver.com.au/residential/residential-building-recovery-to-transition-from-high-rise-to-bungalows-as-nsw-picks-up-victorias-slack-bis-shrapnel/2013072863615?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">“We’re in for a real nail biter,” </a>says Hawtrey.
Do you think Australia can do it successfully?
Today we ask:
{module Can the Australian economy successfully transition away from mining investment into non-mining sectors (including the residential building sector) over the next 12 months?}
</body></html>

Can we transition from mining to non-mining in the next 12 months?

<html><body>
The outlook for the residential building sector is mixed with growth expected in the previously underperforming states of NSW, Queensland and WA, but Victoria to weaken as the Melbourne apartment market cools.
Overall, residential building is forecast to decline 2% in the 2013 financial year, before picking up 9% in 2014/15 and 4% in 2015/16.
Nationally, the recovery will see private detached house starts grow by 2% in 2013/14 and 12% in 2014/15. Another lift of 6% will follow in 2015/16.
At the same time private multi-residential dwelling starts will initially fall by 5% in 2013/14 as the Melbourne apartment market cools, before a bounce back of 5% begins in 2014/15 and a further 1% rise the year after.
However, then a cyclical decline will set in with a 5% contraction in 2016/17 followed by an 8% fall in 2017/18.
“[2013/14] will be a year of change in the mix – from Victoria to NSW, and from high rise to bungalows – before gaining strong traction the following year, in 2014/15,” says Dr Kim Hawtrey, associate director at BIS Shrapnel and author of its Building in Australia 2013 report.
The report forecasts a critical 12 month period for the Australian economy as it transitions away from mining investment into non-mining sectors.
“We’re in for a real nail biter,” says Hawtrey.
“We see an upswing in building but it will be uneven and slower to get going than usual.
“The next 12 months will be a critical test of how quickly the construction sector can take on more of the heavy lifting, and the Australian economy will remain balanced on a knife edge.”
The strongest upswings will occur in the prevously underperforming NSW new home building market and in the the two ‘mining’ states of Western Australia and Queensland.
However, Victoria, South Australia, Tasmania and the ACT are all expected to post declines in 2012/13 and this will continue into 2013/14.
Victoria will undergo an “inevitable correction following several record years of phenomenal home building".
“These markets are generally in oversupply, notably Victoria,” says Hawtrey. 
Overall, BIS Shrapnel says that building, especially home construction, is not responding to low interest rates as might be expected.
“Home building has been punching below its weight and normally low mortgage rates would be stimulating the sector toward clear recovery by now.
"But the antibiotics are taking longer to work this time around.
“High household debt, concerns about the global economy, planning restrictions in some states and lack of land supply are among the factors that explain this new phenomenon," says Hawtrey.
Figures for the financial year to date has residential outperforming expectations over 2012/13, with strong results in the September and December 2012 quarters boosting the calendar 2012 result to 147,970 commencements.
The emergence of tentative growth in NSW, Queensland, Western Australia and the Northern Territory as well as a softer than anticipated fall in Victoria are behind the positive results.
Leading indicators suggest that growth in these markets will continue and this fits with BIS Shrapnel’s expectations based off its longer term analysis.
However, despite the low interest rates (set to remain low for the immediate future) and improved housing affordability, BIS Shrapnel notes that the recovery in residential building activity has not been as strong or as quick to set in as some commentators would have expected.
“Although the Australian economy has shown more resilience than many other developed economies, it has faced its own struggles,” says Hawtrey.
“Outside the resources sector, activity has been subdued, with many industries struggling with the higher dollar and the public sector pulling back on spending.
“As investment in the mining sector begins to decline economic growth will weaken and unemployment will pick up. This has already begun to happen and is weighing heavily on confidence.
BIS Shrapnel expects that a fall in residential building in Victoria’s will “basically neutralize the rise in NSW” resulting in an overall 9% pick-up in residential construction in 2014/15 and 4% in 2015/16.
“Momentum will build in the undersupplied states of New South Wales, Queensland and Western Australia driving the national total, whilst declines in Victoria will level out, and South Australia and Tasmania will return to growth off their low levels,” says Hawtrey.
The overall outlook for building (residential and non-residential) is weak with the value of national building commencements is forecast to grow 3% in 2013/14.The sector will then stabilise in 2015/16 (0%) and record falls in 2016/17 and 2017/18.</body></html>

lschlesinger-FZcF9M3vE6

Residential building recovery to transition from “high rise to bungalows” as NSW picks up Victoria’s slack: BIS Shrapnel

<html><body>
According to the RP Data-Rismark Home Value Index results for June 2013, combined capital city home values increased by 3.8% over the 2012/13 financial year. 
The growth in home values has been moderate, as we have noted in recent weeks, the response to the low mortgage rate environment has not been as strong as in the past.  This begs the question: where to from here?
<img alt="cap city values" src="https://blog.rpdata.com/wp-content/uploads/2013/07/cap-city-values.jpg" width="470" height="171">
The June results of the RP Data-Rismark Home Value Index showed a variety of performances across the capital cities and as I see it, the performances of individual capital city housing markets are likely to continue to diverge based on their own unique circumstances. 
We also know that<a href="https://www.propertyobserver.com.au/economy/july-19-observer-cameron-kusher/2013071963428" target="_blank"> activity is being driven by investors</a> (who can be fickle and exit the market quickly) and upgraders whose activity is most likely linked to the recent pick-up in consumer sentiment and in some instances the recent pick-up may not continue based on the direction of the economy from here.
Broadly speaking, I can’t see anything in the current housing or broader economic conditions that will see the market’s performance return to what we saw prior to the financial crisis for a number of reasons.
Firstly, household debt to disposable income currently sits at 147.3%. 
No doubt Australian households have a large amount of debt, most of which (133.2%) is housing debt.  If you look at the chart below, you will see that the debt to disposable income ratio has been virtually unchanged since the end of 2005, which is seven and a half years ago now! 
Clearly households have reached the limits to how much debt they can take on.  Whether this limit continues into the future remains to be seen but at the moment it is clear we largely don’t want to take on more household debt and around 90% of this debt is related to housing.
<img alt="household debt to disposable income" src="https://blog.rpdata.com/wp-content/uploads/2013/07/household-debt-to-disposable-income.jpg" width="470" height="173">
Secondly, and which directly relates to the first point, households have increased their level of savings and shown less of a propensity to spend. 
The national accounts data includes an item for the household saving ratio and looking at this over time (below) provides valuable insight. 
Over the past 12 months, the household savings ratio has been recorded at 10.5% and over the past five years it has been recorded at an average of 9.8%. 
The level of household savings currently is at its highest level since late 1987 (25 years ago now) and the recent trend of higher savings has reversed a 30 year trend over which time savings by households continued to deteriorate.
<img alt="household saving ratio" src="https://blog.rpdata.com/wp-content/uploads/2013/07/household-saving-ratio.jpg" width="470" height="172">
 
<hr class="system-pagebreak">
Thirdly, consumers are changing the way they spend and doing it with their own money rather than with credit cards. 
Over the 12 months to May 2013, the number of credit card accounts increased by just 2.1%, in comparison debit card accounts increased by 6.2%. Total credit card transactions increased by 6.9% over the year but cash advances fell by -2.4%.  Total debit card transactions increased by 13.9% over the year.  Credit cards had an average outstanding balance of $3,236 and the average credit limit was $9,091. 
On an historical level both are quite high however, the average outstanding balance was down -3.5% over the year which was the biggest year-on-year fall on record and the average credit limit was -1.0% lower on  the year a near record fall.
<img alt="credit card stats" src="https://blog.rpdata.com/wp-content/uploads/2013/07/credit-card-stats.jpg" width="470" height="175">
The previous run-up in home values had been assisted by significant changes to economic conditions such as financial deregulation, significant falls in mortgage rates, a large reduction in unemployment, much lower inflation and strong growth in housing credit.
Mortgage rates are below historic levels currently however the impact of shifting from 17% at the start of the 1990’s to around 7% at the end of the decade is not as significant as a further 1% to 2% reduction.
<img alt="variable mortgage rates" src="https://blog.rpdata.com/wp-content/uploads/2013/07/variable-mortgage-rates.jpg" width="470" height="173">
It’s a similar story for unemployment which shifted from around 11% in 1992 to around 6.5% by the end of the decade.  In fact, an anticipated increase in unemployment from the current low levels is one of the major factors contributing to the changes to consumer behaviour.
<img alt="unemployment chart" src="https://blog.rpdata.com/wp-content/uploads/2013/07/unemployment-chart.jpg" width="470" height="174">
In 1990, annual inflation was running at 7%, by the end of the decade it had fallen to around 2% and today it sits at 2.5%.  The lower level of inflation since the end of the last recession has clearly contributed to the lower mortgage rates which in-turn has assisted the run-up in home values.
<img alt="inflation" src="https://blog.rpdata.com/wp-content/uploads/2013/07/inflation.jpg" width="470" height="173">
Credit growth throughout the early 2000’s was sitting at an annual rate of 16% to 20% as the housing market surged.  Ever since 2004, growth in housing credit has been slowing and over the past year credit has grown at a near record low level of 4.5%.
<img alt="housing credit growth" src="https://blog.rpdata.com/wp-content/uploads/2013/07/housing-credit-growth.jpg" width="470" height="173">
In my opinion, none of these economic measures are likely to shift as significantly as they have in the past and therefore any changes are not as likely to be as conducive to significant growth in home values as they have been in the past.
 
<hr class="system-pagebreak">
Now looking at individual capital city markets we can see my anticipated variances in performance over the coming year.
I suspect Sydney will continue to be one of the standout performers and will continue to see values grow, this is largely due to the fact that value growth has failed to beat inflation over the past decade and dwelling construction remains insufficient.
<img alt="sydney values" src="https://blog.rpdata.com/wp-content/uploads/2013/07/sydney-values.jpg" width="470" height="172">
Melbourne continues to surprise however, it has not had a significant period of value correction as what has been seen across other major capital cities such as Sydney, Brisbane and Melbourne. 
We also know that housing supply is much more sufficient across the city than it is across most other major capital cities.  Although values are currently rising on the back of low mortgage rates I do question the sustainability of the current rises, particularly once mortgage rates start to rise again
<img alt="melbourne values" src="https://blog.rpdata.com/wp-content/uploads/2013/07/melbourne-values.jpg" width="470" height="171">
Brisbane home values are currently -10.8% lower than they were at their peak and to date, values have increased by just 1.6% from their recent low point.  Brisbane has experienced a long period of correction in values, with values currently at a similar level to what they were in late 2007. 
Given this, we do anticipate a pick-up in value growth in Brisbane on the back of the recent increase in sales activity.
<img alt="brisbane values" src="https://blog.rpdata.com/wp-content/uploads/2013/07/brisbane-values.jpg" width="470" height="171">
 
<hr class="system-pagebreak">
Adelaide home values have shown only moderate levels of growth recently, increasing by 2.7 per cent since values bottomed in July of last year.  I anticipate that increases in home values across the city will remain modest over the coming year.
<img alt="adelaide values" src="https://blog.rpdata.com/wp-content/uploads/2013/07/adelaide-values.jpg" width="470" height="169">
Home values in Perth have reacted strongly to the ongoing lowering of mortgage rates. 
Home values across the city have increased by 6.0% over the past year and are now just -1.6% lower than their historic peak.  The key challenge for the Perth market will be the slowing of the mining and resources sector and what impact that has on the housing market. 
Over recent months we have seen the rate of home value growth and rental growth start to slow and I anticipate the slowdown is likely to continue over the coming months.
<img alt="perth values" src="https://blog.rpdata.com/wp-content/uploads/2013/07/perth-values.jpg" width="470" height="171">
Hobart is the only capital city housing market that has recorded a fall in values over the past year.  With a high unemployment rate and little in the way of economic or population growth it is difficult to see how the housing market in Hobart can, at this stage, build any sort of sustainable recovery.
<img alt="hobart values" src="https://blog.rpdata.com/wp-content/uploads/2013/07/hobart-values.jpg" width="470" height="172">
Darwin has been the standout housing market over the past decade and this has continued with values rising by 6.1% over the past year.  Despite the recent strength, values in Darwin remain -11.1% lower than they were at their peak.  Much like Perth, the Darwin housing market is likely to be impacted by the slowdown in the resources sector.  This is already being seen with slowing rates of rental growth and home values having fallen by -0.4% over the first six months of 2013.
<img alt="darwin values" src="https://blog.rpdata.com/wp-content/uploads/2013/07/darwin-values.jpg" width="470" height="169">
Canberra home values have not recorded the same extent of value falls as most other capital city markets. 
Over the past year, home values in the city have increased by 1.1% however, as the below graph shows there are signs of a recent slowing of market conditions. 
With a looming federal election and likely cuts to the public service we would expect this will adversely affect demand for housing in the city and subsequently may result in some value falls.
<img alt="canberra values" src="https://blog.rpdata.com/wp-content/uploads/2013/07/canberra-values.jpg" width="470" height="171">
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au/" rel="nofollow" target="_blank">RP Data</a>.
</body></html>

ckusher-ujnxiKuFQs

Melbourne property continues to surprise without a significant period of correction: RP Data's Cameron Kusher

<html><body>
People confused about superannuation often ask me how they can make the right decisions about their retirement savings.
As I pointed out <a href="/news">in last week’s column</a>, there are no secret formulas for having enough investments so you can fund a comfortable retirement.
What you should be aiming for is to be able to create an income in retirement that covers around 75% of your working life income.
That’s about the only universal formula for retirement savings, and even then, the mix depends on whether you retire as a couple, retire owning your own home, and how much investment risk you can bear in retirement.
Most retirement strategies are technical and financial. And so they should be.
But retirement savers also need to get their own personalities into the strategy.
For instance, you should <a href="/news">understand your risk profile </a>– preservation, moderate, balanced, growth, aggressive – which helps you decide how much weighting to give to shares, cash, property and fixed interest investments such as bonds.
Then you need to get more personal and understand the impact of your life stage on the financial picture.
With life stages comes decisions and priorities. Here is a guide, based on age, that will help you understand what you should be paying attention to:
-          Aged 25 to 35: you’re in an accumulation phase, taking advantage of higher disposable income and fewer family-related expenses. You have a long investment life ahead of you, so you can and should tend towards ‘aggressive’ asset allocations. Why? You’re young enough to weather downturns in share markets and therefore benefit from long term gains.
-          Aged 35 to 45: you should be paying down a mortgage fast, taking advantage of low interest rates to increase home equity and get ahead of the payment schedule (home owners need less cash in retirement than renters or those with a mortgage). You should be paying more attention to your superannuation and although you’re no longer in your twenties, you should keep your investments in ‘growth’ and weighted to equities.
-          Aged 45 to 55: you should be making additional contributions to your nest egg, taking advantage of tax benefits for salary sacrificing to super. Make eliminating all debt a priority, you don’t want to carry it into retirement. If you haven’t already, meet with a financial planner to begin discussing retirement options
-          Aged 55 to 65: you should shift the majority of your investment to preservation assets – cash, fixed income – and use your last working years to increase personal contributions to super. Consider a strategy for “transition to retirement” which includes a capital preservation strategy rather than chasing growth. Focus on making the right tax decisions and decide which lifetime annuity product suits you best.
Of course, life stages are not definitive on their own. But alongside your risk profile, your goals and your savings strategy, they become useful ways of ensuring your actual life is catered for and you’re always on the right track.
Include yourself in the picture, and good luck.
</body></html>

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News