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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

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Confidence in the property market will grow at a more rapid pace after the federal election says McGrath Real Estate Agents chief executive John McGrath.
That’s provided there is a decisive victory for either the Coalition or the Labor Party.
McGrath says he agrees with the views of Aussie Home Loans founder John Symond, who said at the recent Australasian Real Estate Conference on the Gold Coast that “most Australians will feel they have a government that can make decisions in their own right and that will boost confidence”.
McGrath said the business sector would benefit the most following the federal election and a “government that can govern in its own right” as part of blog for Switzer.com.au.
“Although consumer confidence is improving in our markets, business confidence is fluctuating and issues of national governance have a direct impact on this,” says McGrath.
McGrath believes the election will be a “game changer” particularly as it is scheduled at the start of the busiest spring selling season.
He expects the market will continue to improve between now and the election, with the recovery picking up pace once the election is over and the result known.
“There won’t be a huge spike in prices but we’ll probably see a change of pace and heightened urgency among buyers."
{module Do you think any decisive federal election result will contribute to a stronger property market?}
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lschlesinger-FZcF9M3vE6

Do you agree with John McGrath who tips a pick-up in property market confidence after the federal election?

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In 2009 the NSW Government released a new policy that has been well accepted by most property owners, including investors and owner occupiers alike.
The Affordable Rental Housing - State Environmental Planning Policy (SEPP) is encouraging people to build more granny flats and Property Bloom has introduced this as an affordable development strategy that may help you to grow your property portfolio.  
If the council allows complying development on the property (check your section 149 planning certificate in the sales contract), then you can fast track the approval process and have a private certifier issues approval within ten days.  
As one of the development strategies we offer, Property Bloom finds properties suitable for a complying development. 
We’ll then manage all the fine details to create a high yielding investment for our clients.  
The policy introduced by the NSW Government is a fabulous strategy as it allows more property owners to add value to their homes or investments in the short and long term. 
From a development perspective, it can be a quick and easy way to build your property portfolio and create high rental yields.
Owners can benefit from cash-flow from the rent on two dwellings and also receive good depreciation benefits on the new flat (if being rented).  This means people can keep moving forward with their investment strategy. 
Unlike buying a single apartment for instance around Sydney which is likely to be negatively geared, adding a granny flat to a property with an existing dwelling can result in a cash-flow positive situation.  
In the past granny flats were only permitted in certain residential zones, but this SEPP has opened up a whole new real estate door. The aim of the granny flat is to boost the supply of affordable rentals by providing housing for the elderly so families can support each other, as well as the younger generation who are living at home and are not in a position to move out just yet.  
 
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Government projections show us that single-person households are likely to be the fastest growing sector over the next 20 years, so demand is definitely there.
Small secondary dwellings are an attractive option for singles and couples who don't need a lot of room and are the most likely people to be under rental stress.
Young people are also staying at home longer and granny flats can provide extra space for them and be a lifesaver for Baby Boomers who were hoping to empty their nest some time soon.
This policy means that if you have a block over the size of 450sqm you are able to build a granny flat no larger than 60sqm on your existing property, you may get approval in approximately 10 days, as long as it is complying with the council’s regulations.  
Property Bloom focuses on developing property, including granny flat developments, in the Hunter Region on NSW due to its affordability and strong, diverse economy. 
The area is earmarked for long term growth in the NSW government’s Lower Hunter Regional Strategy. The 25 year plan, provides for 160 000 new residents and 66 000 new jobs.
Local industry includes manufacturing, mining, retail, construction and tourism.  
In the Hunter, Property Bloom locates properties priced around $250,000 that may need a small cosmetic renovation.
With the addition of a two bedroom granny flat, which we build for around $105,000; it’s a really affordable investment and a great way to dip your toe into property development.  These projects are creating a 7-9% gross rental yield.  This type of development suits someone starting out in developing or an investor looking to create a cash flow positive investment.
To take advantage of the NSW Government’s Affordable Rental Housing - State Environmental Planning Policy (SEPP) the regulations include:
<ul>
<li>
Granny flat must be no more than 60sqm in size
</li>
<li>
Land must be more than 450sqm
</li>
<li>
Can only be one house and one granny flat on the land
</li>
<li>
The land cannot be subdivided
</li>
<li>
It meets the requirements of the Building Code of Australia
</li>
</ul>
For more information go to:
<a href="https://propertybloom.com.au/property-granny-flats">https://propertybloom.com.au/property-granny-flats.html</a>  
Jo Chivers is director of <a target="_blank" rel="nofollow" href="https://www.propertybloom.com.au/" title="Property Bloom" style="font-size: 14px;">Property Bloom</a>, which manages property development.
      
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jochivers-wq5Bp59R5a

How a granny-flat can add value to your home: Jo Chivers 

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As the housing market recovery continues in a fairly sedate manner, I thought it would be interesting to compare some of the key housing market metrics that we follow to observe the differences in the current market recovery compared with market conditions back in 2009/10 which was the previous recovery/growth phase post-GFC.
The analysis provides some explanation about why the rate of capital appreciation is so much lower over the current cycle compared with the previous growth cycle.
The series of graphs below trace each indicator from the commencement of the cycle in 2009/10.
The series commences from January 2009 (the first month where dwelling values started rising post-GFC according to the <a target="_blank" href="https://www.rpdata.com/news_research/property-indices">RP Data Rismark Home Value Index</a>) through to October 2010 which was when the housing market broadly peaked.
The 20012/13 cycle commences from June 2012 which was the first month of value growth in the most recent cycle and goes through to the most recent data which is available for each indicator.
From the graphs below which track dwelling values based on the capital city RP Data – Rismark Index, it is clear there is a substantial difference in the performance of the housing market between these two periods.
Capital city dwelling values increased by 14% over the first thirteen months of the 2009/10 cycle compared with a 3.8% lift in dwelling values over the same period in the current cycle.<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Cumulative-recovery-trend1.jpg"><img height="160" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Cumulative-recovery-trend1-580x197.jpg" alt="Cumulative recovery trend"></a>
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Rolling-three-month-change-in-capital-city-dwelling-values.jpg"><img height="171" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Rolling-three-month-change-in-capital-city-dwelling-values-580x211.jpg" alt="Rolling three month change in capital city dwelling values"></a>
 
<hr class="system-pagebreak">
The lower rate of capital gains over the most recent thirteen month period comes at a time when vendors are still discounting their asking prices to a greater extent.
Over the past 12 months the level of vendor discounting has averaged 6.7% compared with a 6.2% rate of discounting over the same period of the previous growth cycle.
A year into the growth cycle during 2009, the average rate of vendor discounting was recorded at 5.5% compared with the current rate of 5.8%.
Clearly vendors are discounting their price expectations to a greater extent currently than they were at the same time in the previous cycle.
Looking at the trend in vendor expectation, which has recently been improving quite rapidly and we may see discounting conditions move in line with where they were over the previous phase over the next few months.
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Average-level-of-vendor-discounting.jpg"><img height="173" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Average-level-of-vendor-discounting-580x214.jpg" alt="Average level of vendor discounting"></a>
The average selling time over the current growth period has moved virtually in line with the previous growth phase apart from the seasonal hump which shows up in the most recent phase’s data (average selling time tends to blow out in January and February).
Twelve month’s into the current growth cycle we are seeing the typical capital city home sell in 43 days compared with 42 days at the same state in the 2009/10 recovery.
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Average-days-on-market.jpg"><img height="166" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Average-days-on-market-580x205.jpg" alt="Average days on market"></a>
 
<hr class="system-pagebreak">
Clearance rates are also broadly in line with the previous growth phase indicators at the same time.  Currently over the past few weeks the weighted average clearance rate has been recorded around the 67% mark while clearance rates were averaging closer to 70% at the same time over the previous phase.
There are going to be some seasonal difference in the comparison points here.
However, the rate of auction clearance suggests that buyer and seller expectations are converging similar to what occurred during the 2009/10 growth period.
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Auction-clearance-rates.jpg"><img height="177" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Auction-clearance-rates-580x218.jpg" alt="Auction clearance rates"></a>
Now for some of the big differences in housing market conditions.
Firstly, looking at the average loan size we can see that there hasn’t been anywhere near the same level of uplift in the value of home loans being committed to which helps to confirms the lower rate of dwelling value growth.
One point to make though is that the average loan size didn’t really start to escalate swiftly until the eight months into the previous growth phase (see second graph below, ‘Average loan size (indexed).  We haven’t seen anything like that in the current phase to date.
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Average-loan-size-000.jpg"><img height="174" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Average-loan-size-000-580x215.jpg" alt="Average loan size ($,000)"></a>
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Average-loan-size-indexed.jpg"><img height="176" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Average-loan-size-indexed-580x217.jpg" alt="Average loan size (indexed)"></a>
 
<hr class="system-pagebreak">
The number of first home buyers in the market currently is also radically different, as is the level of market stimulus for first home buyers.  Back in the early phases of the 2009/10 growth phase first time buyers were taking advantage of the <a target="_blank" href="https://www.firsthome.gov.au/%E2%80%8E">First Home Buyers Grant Boost</a> as well as stamp duty concessions and low interest rates.
Over the first eleven months of the current growth phase, according to ABS housing finance data, there were just under 83,500 first home buyer housing finance commitments.
Over the same period of the 2009/10 growth phase there were nearly 176,000 first home buyer commitments.  That’s a big difference.
Arguably, first home buyers tend to push prices higher, not just because of the grants that were/are available, but also because their behaviour can be more emotional than other segments of the market.
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Number-of-first-home-buyer-commitments.jpg"><img height="163" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Number-of-first-home-buyer-commitments-580x201.jpg" alt="Number of first home buyer commitments"></a>
First home buyers currently represent just 14.3% of the overall market compared with 24.8% at the same stage of the 2009/10 recovery phase.
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Percentage-of-first-home-buyer-commitments.jpg"><img height="171" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Percentage-of-first-home-buyer-commitments-580x211.jpg" alt="Percentage of first home buyer commitments"></a>
Investors, on the other hand, are currently showing a larger presence in the housing market compared with the same stage of the cycle during the previous growth phase.
The value of investor loans is currently higher than what was recorded at the same stage of the market back in 2009/10.
Counter to first home buyer behaviour, investors tend to be more clinical in their purchasing and less emotional which is potentially another reason for the restrained level of value appreciation in the current cycle.
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Monthly-value-of-investor-housing-finance-commitments.jpg"><img height="161" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Monthly-value-of-investor-housing-finance-commitments-580x199.jpg" alt="Monthly value of investor housing finance commitments"></a>
 
<hr class="system-pagebreak">
There is also the factor of fewer active buyers.  Looking at the number of house and unit sales in the market, although there has been a decent uplift in numbers over the past year or so, there were substantially more home sales taking place at the same stage of the previous growth phase.
That additional level of buyer demand was also likely to be one of the factors that was pushing values higher at a faster rate compared with the current cycle.
<a rel="wp-prettyPhoto[g2194]" href="https://blog.rpdata.com/wp-content/uploads/2013/07/Number-of-dwelling-sales.jpg"><img height="160" width="470" src="https://blog.rpdata.com/wp-content/uploads/2013/07/Number-of-dwelling-sales-580x198.jpg" alt="Number of dwelling sales"></a>
Overall, many of the indicators are quite similar in the current market conditions when compared with the market at the same stage of the previous growth cycle.
The most significant difference is the more subdued rate of growth which can probably be attributed to lower overall demand, fewer first home buyers, more investors and less appetite for debt.
There are plenty of other factors I haven’t touched on there. 
The federal election is probably having a dampening effect on demand and of course consumer confidence is shakier than it was in 2009 due to the current economic uncertainty, not to mention that consumer behaviour has seen a sustained change with household savings ratio averaging 9.8% for the past five years and private sector housing credit growth at near record low levels.
Tim Lawless is national research director of <a rel="nofollow" href="https://www.myrp.com.au/" target="_blank">RP Data.</a> This aricle orininally appeared on <a href="https://propertyupdate.com.au/why-arent-dwelling-values-increasing-at-the-same-pace-as-the-last-growth-cycle-tim-lawless/" target="_blank">propertyupdate.com.au</a>.
 
 
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tlawless-5VLUrbAk9s

Why aren’t dwelling values increasing like the last growth cycle?: Tim Lawless

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The value of Australian residential property purchased by Chinese-based buyers reached $5.4 billion in the 2013 financial year, according to figures from Chinese property portal Juwai.com.
This is around a 25% increase on US$4 billion ($4 billion to $4.2 billion in local currency) of Australian property purchased by Chinese buyers in 2011.
"Chinese make up the fastest growing buyer group in an otherwise relatively slow Australian real estate market,” says Simon Henry, co-CEO of <a href="https://www.juwai.com/" target="_blank">Juwai.com</a>.
"The properties that will have the most success with Chinese buyers are located in major metropolitan areas or in growing mining areas, are working farms or are new developments.
"Resale properties appeal to Chinese buyers who know Australia already, including those who already have one or more properties here."
Dominic Ong who heads up a new <a target="_blank" href="/news">Knight Frank team targeting high-net worth Chinese investors</a> and those who may qualify for the $5 million significant investor visa, recently told Property Observer that he was regularly showing Asian-based buyers around some of the most expensive waterfront property in Sydney.
Ong says they are looking in the $30 million to $50 million price range.
“They want the best properties on the waterfront with a private jetty, harbour bridge view, swimming pool and many car parks.
“They want homes they can use for private functions and for entertaining,” he says.
Queensland remains a hotspot for Chinese residential investment.
According to the Foreign Ownership of Land Register, Chinese buyers are now the biggest foreign property buying group in the state.
Juwai records that the Chinese bought more than $530 million worth of Queensland property in the past three years and now own more Queensland real estate than buyers from any other foreign country with their rate of acquisition in dollar terms up almost 60% year-on-year.
Juwai.com claims that some Australian luxury properties receiving more views in China on its portal than on Australia’s biggest real estate portal, realestate.com.au.
Examples include a five bedroom property at 29 Norseman Court, Paradise Waters in Southport listed for $2.85 million through Gold Coast prestige property agent Dominique Corbett of Corbett &amp; Co, which had 3,834 views on Juwai.com, nearly eight times more than the 484 views it has had on realestate.com.au.
Despite the interest, the property remains listed for sale and has been on the market since April 2011, according to RP Data. It is listed for auction this weekend through Renee Morgan of Executive Realtors - Broadbeach Water.
Dominique Corbett says her vendors increasingly ask her to list their properties valued at $6 million to $15 million or more on Juwai.com.
Other properties she has listed on Juwai.com have attracted four and five times as many hits on the Chinese portal compared with hits on realestate.com.au.
"Vendors believe the Chinese have the money for these properties right now, while Australians don't," she says.
“We also can act as a bespoke buying agent for private clients."
Corbett’s prestige listings on her website include a small Chinese flag, which links through to listings on Juwai.com. She has also visited China to meet up with potential buyers.
Juwai.com has teamed up with software provider Rex to assist Queensland agents and other listing their prestige offerings on the Chinese property portal.
It also recently signed a partnership in Australia with LJ Hooker, in Canada with the Real Estate Channel and in France with Previsite.
The June quarter NAB Residential Property survey found that the proportion of new houses and apartments being purchased by foreign buyers has doubled in the space of two years.
Foreign buyers now account for between 12% and 13% of all new residential property purchases, according to the views of around 300 property participants surveyed as part of the <a target="_blank" href="https://www.propertyobserver.com.au/residential/property-prices-to-rise-just-24-over-next-two-years-as-sentiment-weakens-nab-survey/2013071163168?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">June quarter NAB residential property index.</a>
“Asian investors (mainly Chinese) have been driving this trend according to the latest data from the Foreign Investment Review Board," says NAB chief economist Alan Oster.
“A number of factors are driving Chinese investment into Australian property, including initiatives to curb real estate speculation in China, diversification for Chinese property investors and immigration potential.”
'Beach' image courtesy of australia.com and has been digitally altered.
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Chinese appetite for Australian residential property hits $5.4 billion as demand for luxury property rises

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Investors in some Quest Serviced apartment developments should expect yields to rise to close to 8% over the next three years.
Using the example of a high-yielding one-bedroom apartment in Quest Launceston, Quest anticipates that gross yields will reach 7.8% by 2015, based on annual rent increases of 4%.
Annual rent increases of 4% are built in to every Quest lease with a market review taking place at the end of each five year term.
<div align="left">
<table style="width: 470px;" summary="&amp;&amp;&amp;" cellpadding="0" cellspacing="1" border="1">
<thead>
<tr>
<td colspan="5">
LAUNCESTON 1BR Apartment $280,000
</td>
</tr>
<tr>
<td width="99">
Year
</td>
<td width="99">
2012
</td>
<td width="99">
2103
</td>
<td width="99">
2014
</td>
<td width="99">
2015
</td>
</tr>
</thead>
<tbody>
<tr>
<td>
Annual Rent
</td>
<td>
$19,400
</td>
<td>
$20,176
</td>
<td>
$20,983
</td>
<td>
$21,822
</td>
</tr>
<tr>
<td>
Rent Increase
</td>
<td>
4%
</td>
<td>
4%
</td>
<td>
4%
</td>
<td>
4%
</td>
</tr>
<tr>
<td>
Gross Yield
</td>
<td>
6.9%
</td>
<td>
7.2%
</td>
<td>
7.5%
</td>
<td>
7.8%
<div></div>
</td>
</tr>
</tbody>
</table>
</div>
The latest Quest serviced apartment stock list shows that yields currently range from just over 6% to 7.3%.
The strongest returns are in the recently refurbished Quest Wagga apartment block, with gross yields of around 7.29%.
Two apartments measuring 88 square metres with two bedrooms remain available for purchase in Quest Wagga for $399,000 returning annual rent of $29,095.
Yields in excess of 7% are also currently on offer for serviced apartments in Quest Darwin (though no apartments are currently available), in Quest Gladstone and in Quest Launceston.
A report by UK-based Travel Intelligence Network identified Quest as the fastest growing player globally in the serviced apartment market with a 28% increase in rooms in its network over the past two years.
Quest is now second only to Mantra in terms of serviced apartment room numbers.
In February, Quest announced plans to build  ten new apartment buildings in NSW by 2014.
According to the same report, the serviced apartment sector continues to expand in Australia and New Zealand with a 14.5% increase in supply since 2011.
A separate report by Jones Lang LaSalle (JLL) Hotels found that of the 3,712 hotel rooms under construction in September 2012, a third were serviced apartments.
Serviced apartments available for purchase in Quest Gladstone start from $294,000 for a 53 square metre one-bedroom apartment and from $280,000 in Launceston for a one bedroom apartment measuring 58 square metres.
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Quest serviced apartment yields rising with Tasmania, Gladstone and Wagga yields near 8%

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Hi Margaret,
I have read your response to the question raised on <a target="_blank" href="https://www.propertyobserver.com.au/residential/ask-margaret-should-i-buy-off-the-plan-or-an-existing-property/2013062862801.">should you buy off the plan or existing dwelling for investment</a>.
After reading this I had some questions of my own. My current situation is that I'm 23 and looking at buying my first investment, obviously to also take advantage of the first-home owners grant (FHOG) &amp; stamp duty exemptions as well. My strategy was live in the apartment for 6 months and then rent it out.
I have done quite a bit of reading about buying an investment property, the risks of negative gearing, buying property off the plan and all the other jazz. I've also done some speculative/assumption modeling for buying off the plan and investing but I don't want to be disillusioned by my own thinking.
Since I was wanting to take advantage of FHOGs I’m limiting myself to new and off the plan apartments, so from a risk perspective I tried to lower the risk by investing in a blue chip/boutique suburb such as Lane Cove North (there’s about 5 other developments in the area too).
A lot of the developers already include commissions/the gov grant included in their pricing matrix so buying off the plan I will already be overpaying for a property in Sydney.
Say my investment strategy is for the long term and I’m willing to hold on the apartment, would it still be worth it to invest in off the plan (taking advantage of the $15,000 and all stamp duty exemption)?
Regards
David
 
David,
Before I answer the question, let’s get a few things straight.
The FHOG is a sum of money available to homebuyers who wish to acquire an owner occupied property. 
It is not for those who wish to buy an investment property, and who are planning to live in it only for the minimum 6 months to keep the grant. The 6 month minimum (which must occur within 12 months of settlement) is provided for those who genuinely access the grant, intending for the property to become an owner occupied one, and then have changed circumstances which require them to move out.
If your aim is to use the grant to buy an investment property, you will run the risk of having that grant revoked in the future, should there be any evidence that you never intended for the property to become your own home.
If you buy an investment property without accessing the grant, this grant remains available to you for your first home purchase, as long as you never live in any properties you buy before that time.  So, not using it will not result in you losing it if you buy a property purely for investment.
You talk about ‘blue chip’ suburbs, but this term has little meaning any more. 
Originally used to describe shares of long standing, well- established companies, this term was then applied to those long held, established areas where it was believed that growth would always be better and bigger. 
Much has changed about how property performs and this is largely attributed to the urban sprawl, and the capacity of larger regional areas to meet the lifestyle and employment needs of a more diverse range of people.
In other words, some areas which used to be considered ‘country towns’ are now thriving metropolises in their own right. 
If you use old time thinking to invest today, you may well make a very large mistake. In the past 20 years we have seen some lacklustre performances indeed from what has always been referred to as blue chip suburbs, and I’d say this is because their values, having already hit fairly high levels, have little room to move when you consider the average buying power of the majority of the population.
And so; if your aim is to buy an investment, then you will see a far better short term yield and likely a better long term return in terms of growth, if you can find those areas which have not had large gains yet, but which have an abundance of growth drivers. 
You don’t have to take the risk involved in buying off-the-plan, where you cannot confirm true market value and where often those commissions are built in to make them overpriced.  You should be casting your net more widely and looking for areas where population is growing faster than the national average, diversified employment opportunities exist and property is still affordable to the greater portion of the buyers. 
Property such as this is more exposed to the demand factors which push up prices and result in better growth for you, and these same properties generally have a better rental yield in relation to purchase price, making it easier to hang on to as the cost to you is minimised.
Most importantly David, do nothing until you become educated.  Attend a good course (like Destiny’s Essential Property Education) and take no action until you are better trained.  It makes no sense to make such a large investment if you haven’t got the knowledge and skills to get it right.
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel onYour Money, Your Call, both on Sky News. She is the founder of <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank" rel="nofollow">Destiny</a>.
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mlomas-KC9MUPZ6Ca

Ask Margaret: Does the first-home owners grant make it worth the risk to buy off-the-plan?

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ASIC has sought orders in the Queensland Supreme Court that liquidators from PricewaterhouseCoopers be appointed to wind up the $326 million LM First Mortgage Income Fund (FMIF).
The fund was one of seven registered investment schemes managed by collapsed Gold Coast fund manager and property developer LM Investment Management.
ASIC made its submission in a court hearing to decide the future of the fund.
The proceedings were started by two investors of the FMIF seeking orders for the appointment of Trilogy Funds Management Limited as responsible entity of the fund.
The current responsible entity, LM Investment Management Limited, opposed this application.
‘ASIC took this action as it believes that the appointment of receivers to the FMIF will allow the winding-up to proceed in the most efficient and cost effective way to provide the best chance of achieving the maximum return for investors,’ says ASIC commissioner Greg Tanzer.
‘As such, ASIC believes that the persons responsible for winding-up the FMIF should be appropriately independent. ‘It is ASIC’s view that the protracted litigation surrounding the FMIF is not in the best interests of investors and wishes to see the matter resolved as soon as possible.’ Before this week’s proceedings <a target="_blank" href="https://www.propertyobserver.com.au/residential/lmim-founder-peter-drake-under-pressure-to-repay-%2417-million-loan-as-receivers-appointed-to-%24326-million-mortgage-fund/2013071163189">Deutsche Bank, a secured creditor of the FMIF, appointed McGrathNicol as receiver of the FMIF. </a>
If appointed, ASIC proposes that the incoming receivers work in conjunction with Deutsche Bank's receiver for an orderly realisation of the assets of FMIF. Justice Dalton reserved her decision in the matter.
LM Investment Management (LMIM) collapsed in March this year.
It is the responsible entity of seven registered managed investment schemes including FMIF. It also operates the $350 million LM Managed Performance Fund (LMMPF).
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ASIC seeks orders to wind up $326 million LM mortgage fund and realise assets

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International jewellery brand So Good has leased a vacant shopfront on Swanston Street in the Melbourne CBD, where rents range from $3,500 to $4,000 per metre.
The retailers will open their first Melbourne store at 215 Swanston Street on a long 10-year deal.
The two-level freehold has a ground floor area of 105 square metres and first floor area of 105 square metres.
The leasing deal was negotiated by Fitzroys leasing executive Harry Curtis, who says the new tenants will be paying a 20% increase on the previous tenant’s annual rental, with 4% annual rent increases and a six-month bank guarantee.
So Good has begun moving into the premises and will commence their own fit out shortly.
"The retailer was attracted to the property’s prime location near the corner of Swanston and Little Bourke Streets, within the heart of the hustle and bustle of Melbourne’s CBD,” says Curtis
Fitzroys is currently seeking tenants for the ex-Zamels site on the corner of Swanston and Little Collins Streets, which has a wide 28-metre frontage.
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International jewellers take up prime space on Swanston Street

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Sydney’s residential rental market remains tight, according to data by the Real Estate Institute of NSW. Its June 2013 vacancy rate survey found no change in the number of vacancies in the Sydney metropolitan area at 2.1%, despite a third increase in a row of availability in the inner suburbs.
In June last year, all major metropolitan centres across NSW recorded increases in the percentage of available rental properties. Vacancy rates in Sydney rose 0.1% to 1.8%.
In June this year the survey found:
•       Inner suburbs (0-10km from CBD) up 0.3% to 2.2%
•       Middle suburbs (10-25km ring) steady at 1.9%
•       Outer suburbs (more than 25km out) down 0.2% at 2.1%
In June last year:
<ul>
<li>
Inner suburbs (0-10km) up 0.2% to 1.8%
</li>
<li>
Middle suburbs (10-25km) up 0.1% to 1.8%
</li>
<li>
Outer suburbs (25km or more) down 0.1% to 1.8%
</li>
</ul>
“The rise in the inner suburbs - and the decline in vacancy rates in the outer suburbs - have cancelled each other out during June 2013, leaving availability at 2.1% across the Sydney metro area,” REINSW president Christian Payne says.
In June last year, the vacancy rate in Sydney rose 0.1% to 1.8%, with Wollongong recording the biggest increase, up 0.4% to 3.2%. This year it rose 0.3%. Wollongong’s rise continues a trend of vigorous growth in available rental properties.
Last year Payne reported the rate as being more than three times the 0.9% level of June 2011. Newcastle in 2012 increased by 0.1% to 1.7% and the Central Coast rose by 0.2% to 2.8%.  
“While we are pleased that vacancy rates have not declined, we were hoping for a continued increase in availability in what is still a very tight market,” Payne says of the 2013 figures.
Across the state, the Hunter region remains steady for the month at 2.9%, despite an increase of 0.1% in Newcastle at 2.2%. The Illawarra had a rise of 0.4% to 2.5%. The Central Coast continued its steady rise with a jump of 0.6% to 3.2% and the Mid North Coast added 0.5% to 2.9%.
Coffs Harbour – at 3.7% - remains the easiest place to find rental accommodation - despite a decline of 0.3%. Last year Coffs had the state’s highest rental vacancy rate at 5.1% - and the Orana District the lowest at 1.2%. 
Vacancy rates remained steady in Albury at 1.8%, while the South Coast and South East were both at 3.1% with declines of 0.3% and 0.4% respectively.

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staylor-63KgDrKwoY

Sydney’s residential rental market remains tight: REINSW

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The struggling hotel and leisure markets of the Gold Coast and tropical north Queensland appear to be reviving driven by rising domestic and Chinese visitors as the mining capitals of Perth and Brisbane retreat in the wake of fewer business travellers.
Melbourne's hotel market has lifted strongly due to a rise in domestic visitors and the closure of a major hotel while Sydney occupancy rates remained at high levels with room rates rising, according to the latest Deloitte Access Economics Tourism and Outlook report.
The recovery on the Gold Coast is being driven by a pick-up in domestic holidaymakers while in tropical north Queensland a preference among Chinese holidaymakers for smaller cities and regional destinations is driving a pick-up in overseas visitors.
Deloitte reports that since 2008, the Chinse share of visitor nights in Sydney and Melbourne has fallen from 73.1% to 62.8%, with the share of visitor nights in Brisbane, other capital cities and other regional destinations growing by 4.8%, 2.5% and 3.1%, respectively.
Occupancy rates on the Gold Coast have grown strongly over the past 18 months, “reflecting a surge in domestic holiday visitors” says Deloitte Access Economics’ Lachlan Smirl.
Gold Coast occupancy rates for the year to March 2013 reached 71%, a 4% increase to March 2012.
<img alt="deloitte_gold_coast" height="411" width="470" src="/images/stories/2013/larry_uploads/deloitte_gold_coast.jpg">
“Demand for accommodation is highly seasonal on the Gold Coast and while occupancy rates fell in April and May they were broadly on par with last year, averaging 71.1% over the year to May,” Smirl.
Deloitte projects that occupancy rates will continue to grow through 2013 and then stabilise at around 72% by the end of 2015.
“In contrast to occupancy rates, and reflecting the significant capacity that remains in the market, room rates on the Gold Coast have grown relatively slowly over the past two years.
“Consistent with recent trends, room rate growth is projected to average 3.5% per annum over the three years to December 2015, while continued growth in occupancies is forecast to see revenue per available room (RevPAR) grow at an average rate of 4.5% p.a. over the same period,” he says.
International visitor nights on the tropical north Queensland market (places like Cairns and Port Douglas) grew by over 20% over the year to March with the occupancy rate reaching 61.2% in the year to March.
“As with the Gold Coast, occupancy rates in tropical north Queensland are highly seasonal but fell slightly in April and May relative to last year, with occupancy rates averaging 60.9% over the year to May 2013," says Smirl.
Deloitte forecasts continued growth in occupancy rates in tropical north Queensland, with average occupancies projected to increase to 65.6% by the year to December 2015, reflecting the expected growth in international visitor nights – Asian leisure travellers in particular – over the next three years.
“Room rates have been relatively steady over the past two years – with, like Gold Coast, a significant amount of capacity remaining in the market.
“Looking forward, however, room rates are forecast trend upwards, growing at an average annual rate of 4.2% per annum.
“The strong growth in occupancy rate and room rates mean that RevPAR is expected to grow at an average annual rate of 7% over the three years to December 2015,” says Smirl.
<img alt="deloitee_FNQ" height="398" width="470" src="/images/stories/2013/larry_uploads/deloitee_FNQ.jpg">
Nationally, the accommodation market remained broadly on par with its 2012 performance, with occupancy rates averaging 66.0% for the year to May and room rates growing 2.6% per annum.
“While the national picture is a relatively stable one, there has been a significant divergence in performance across the country’s accommodation markets, with notable declines in Brisbane and Perth," says Smirl.
Both suffered from falling demand from domestic business visitors.
“The decline in visitor nights by corporate travellers over the last year has seen occupancy rates soften in the Brisbane market,” says Smirl.
“After sustaining an average rate of 81% over the year to March 2012, average occupancies eased to 79.3% over the year to March 2013 and have softened marginally further since, edging below 79% over the year to May.
“As a result of the forecast increase in supply over the next two years and the recent softening in business travel, occupancy rates for Brisbane are expected to remain relatively stable over the next two years, reaching 80.1% in the year to December 2015.
“This outlook is a downward revision on our first quarter release, reflecting the weakening corporate travel and a strengthening supply outlook.
In Perth, occupancy rates for the year to March 2013 fall to 83.8%, the lowest level since the year to June 2011.
“As the resource-related construction boom in Western Australia peaks, the demand for business travel to Perth will continue to soften,” says Smirl.
“Domestic business travel accounts for 30.6% of total visitor nights in paid accommodation in Perth, with international and domestic business travel combined accounting for 43.6% of visitor nights.”
Occupancy rates picked in Melbourne from 81% in the year to December 2012 to 81.9% over the year to May 2013 attributed in part to a strong increase in holiday visitor nights over the year to March as well as the closing of the Sebel Melbourne in February.
Deloitte forecasts Melbourne hotel occupancy rates to climb steadily to 84.1% by the end of December 2015 resulting in relatively healthy growth in room rates and yields.
The Sydney hotel market remains healthy with a steady outlook.
Deloitte reports that demand for accommodation in Sydney picked up marginally in the first five months of 2013, resulting in occupancy rates improving slightly to 84.8% over the year to May 2013 from the 84.7% recorded over the year to December 2012.
While occupancy rates in Sydney have been relatively flat, room rates have continued to grow steadily, improving 3.5% to $196 over the year to May 2013, while RevPAR grew 3.1% to $167 over the year to May.
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