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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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The property management arm of ASX-listed Ariadne has been fined by the Brisbane Magistrates Court for <a href="https://www.smartcompany.com.au/superannuation/056124-former-company-director-charged-with-fraud-for-dishonestly-inducing-smsf-investors" target="_blank">defrauding landlords</a>, after finding the property and investment group guilty of 231 counts of dishonestly converting trust money for its own use.
The court found StayMint, which trades as Mint Hotels, wrongfully converted $141,466 of money – that should have gone to landlords – into its own trust account.
The landlords owned apartments in a Broadbeach complex, Carmel by the Sea.
David Stevens, chairman of the Carmel by the Sea body corporate committee, said problems began when Mint tendered for management rights and tried to take over the rentals by offering a "lease back" where the landlords got a fixed amount from the property manager to let their unit at prices "far in excess" of anything offered before.
"The guests would arrive and they would put them into other owners' units which were not on their list of lease backs," Stevens says.
Mint then leased the units regardless of whether they were being rented, ensuring the apartment owners who signed up had a constant income stream.
But the landlords then discovered people had stayed in their apartment, but the stay was not recorded in the monthly statement to the owner, and the rent not paid.
<a rel="nofollow" href="https://www.brw.com.au/p/business/gold_coast_based_ariadne_subsidiary_YIkg0rfpDJIBiuGZVBfK8K" target="_blank">According to BRW</a>, the irregular financial records were discovered after the Office of Fair Trading commenced an investigation and raided Mint's office, seizing a hard drive and trust account records.
The court found Mint booked tenants into rooms in Carmel by the Sea and then, after the guest had checked out, changed the records to indicate the guest had stayed in a leaseback unit.
Ariadne chief executive Murray Boyte said Ariadne executives did not have any knowledge the scam was taking place.
"This was a flagrant breach of our policies by an employee. They were acting outside of our authority," he says.
Boyte says the Office of Fair Trading investigation confirmed Ariadne's directors were unaware of the employee's actions, which went undetected by the regular and mandatory independent audits of the trust account records.
"The directors were shocked to learn of the employee's conduct," Boyte says.
"As soon as they were made aware of the allegations, they ordered a thorough internal investigation into the matter to determine the extent of the employee's unlawful activities."
Boyte says Ariadne has cooperated fully with the Office of Fair Trading and worked to ensure owners were compensated for the misallocation of funds.
Ariadne's co-operation with the OFT and its unblemished record were taken into account by the court in imposing a fine of $50,000 after Ariadne repaid $75,000 of the misappropriated money owed to 34 affected unit owners.
But David Stevens, chairman of the Carmel by the Sea body corporate committee, says the fine is disappointing as the maximum penalty available was in excess of $3 million.
"[Ariadne] has pleaded guilty to the charges as a company but nobody has been charged as an individual," he says.
"But as the magistrate said, Ariadne will pay a very heavy price in public opinion."
Stevens says the result is a victory for the landlords but the penalty could have and should have been more.
"Ariadne is a big company with deep pockets and they have given us six years of hell," he says.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Property manager StayMint fined for defrauding landlords

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Australian CBD office sales turnover rose by 24% over the past financial year compared with the previous 12 month period with demand being driven by unlisted wholesale funds, syndicates and AREITs.
“Emerging as a clear trend in 2013 was the return of the domestic buyer,’’ says Knight Frank’s national research director Matt Whitby.
Knight Frank found a significant increase in activity by unlisted funds and syndicates, rising from 23% of sales in 2012 to 44% of CBD deals in 2013 - a total value of around $3.08 billion in 2013.
Also, the listed AREITs’ share of the buyers' market jumped from 17% to 30% and, for the first time in many years, was clearly the biggest net purchasers of CBD office stock.
<img height="391" width="373" src="/images/stories/2013/larry_uploads/cbd_office_sales.jpg" alt="cbd_office_sales">
Source: Knight Frank
The Knight Frank research reveals that offshore groups have often been outbid over the past year, with domestic groups such as Mirvac, Investa, Charter Hall, DEXUS, GPT and the Motor Accident Commission of SA acquiring the lion’s share of the trophy office assets, although in most cases partnering with offshore investors.
Due to this stronger domestic demand for product, acquisitions by offshore groups have fallen from 37% to 18% over the past year.
“Due to the recent sharp fall in the Australian dollar and global share market corrections, this buyer group - although remaining active and seeking increased exposure - may remain in somewhat of a holding pattern until there are concrete signs of a stabilisation,” Whitby says.
He said following the $2.63 billion trough in 2009, there has been a consistent upward trend in CBD office sales volumes since then, reaching around $6.96 billion over the past financial year.
The Knight Frank research found a big increase in the number of CBD office sales greater than $100 million over the past few years, with the worst being in 2010-11 when only seven deals were clinched, compared to 20 over the past year.
This larger transaction activity has also been evident in non CBD/suburban markets, with four major office sales greater than $100 million over the past year - the highest in five years.
Whitby says the rise in transactions over $100 million reflected the recent trend towards local superannuation, AREITs and unlisted wholesale funds, as well as offshore groups, acquiring core, prime assets whether through joint ventures, capital partnering or directly.
‘’The return of the domestic listed groups to acquisition mode, assisted by their lower cost of capital, has allowed income accretive acquisitions. Notwithstanding the recent correction in share prices, AREITs are again raising equity to fund many of their recent purchases,” he says.
Despite the number of non-CBD/suburban office transactions sales increasing modestly, the total turnover by value is down 7% on last financial year.
“This is not surprising as purchasers have been seeking core, passive, mainly CBD assets over the past year, however, it should be noted that there was an increase in the number of large suburban office deals over the past 18 months.’’ Whitby says.
These include the Hines Global purchase of 825 Ann Street, 144 Montague Street and 100 Brookes Street in the Brisbane Fringe, and 465 Victoria Avenue in Chatswood. Groups such as Cromwell, REST, DEXUS and MGPA have also acquired large suburban assets.
“Unlisted and syndicates continue to be the biggest buyers of non CBD/suburban stock, acquiring $696.03 million and a third (33%) of all non CBD sales over the past year, while the always prominent private investors increased their exposure over the past year, climbing to 26% ($554.76 million) of sales compared with 17% last year,” Whitby says.
Knight Frank managing director of commercial sales, Paul Henley, says the increase in private investors has been driven predominately by markets such as St Kilda Road and Richmond in Melbourne, and North Sydney.
There has also been an increase in offshore buyers in non-CBD markets - from 16% to 25% - due to offshore institutional purchasers, such as Hines Global and MGPA, alongside Asian developers.
“Investment in the Melbourne non CBD/suburban market almost doubled over the past year, from $329.27 million to $635.21 million, increasing from a share of 15% to 30% of the Australian non-core total, primarily due to St Kilda Road and Richmond activity.
However, Sydney’s non-core office sector remains the standout by volumes, making up almost half (46%) of all transactions by value at almost $1 billion over the 2013 financial year,” Henley says.
 
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staylor-63KgDrKwoY

Domestic buyers return to Australian CBD office market: Knight Frank

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Sydney remains Australia’s most expensive city for office occupancy, but a significant value shift towards the Perth market has decreased the gap between the two cities, according to a survey by CBRE Global Research and Consulting.
The semi-annual prime office occupancy costs survey ranks 127 cities throughout the world according to the cost of office occupancy, including rent plus local taxes and service charges.
Hong Kong was ranked the most expensive at US$235.23 per square foot, per annum, followed by London and Beijing.
As for Australian cities, Sydney ranked 13th in the world at US$119.23 per square foot, per annum (just behind 10th placed Manhattan), followed by Perth, in 21st place, at US$97.09, Brisbane in 29th at US$79.10, and Melbourne in 49th at US$61.89.
The cheapest Australian capital cities for office occupancy were Adelaide, in 71st place and Canberra, in 93rd place.
<img height="296" width="470" src="/images/stories/2013/larry_uploads/most_expensive_office_markets.jpg" alt="most_expensive_office_markets"> 
Source: CBRE
Sydney also topped the list for the most expensive market for office space in the Pacific Region.
Perth was ranked 16th in the list of cities that experienced the highest growth in the cost of office occupancy.
CBRE’s head of research for Australia, Stephen McNabb says this shows a “value shift” to the Perth market.
“The increase in terms of trade driven by high commodity prices has boosted income in the WA market relative to other Australian states.
“This has supported capacity to pay higher rents in Perth,” he says.
The survey shows the office occupancy rates for prime office spots in 127 cities worldwide, as of March 31, 2013.
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jrobertson-4NasGYvWhc

Sydney remains Australia's most expensive office market, but Perth catching up: CBRE

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Centuria is preparing for a possible July float of its listed property trust after taking over as responsible entity of the North Sydney Property Trust, which comprises the Northpoint Tower office and retail complex in North Sydney.
Northpoint stands at 100 Miller Street at the corner of the Pacific Highway and Miller Street, comprising two retail levels, 32 office floors and a 432 space car park over six basement levels.
It last sold for $114 million in 1987.
The trusteeship was acquired by Centuria's property funds management entity Centuria Property Funds Limited, which controls property assets totalling some $1.1 billion and is led by chief executive Jason Huljich.
It replaced the North Sydney Property Trust (NSPT Pty Ltd), a now de-registered managed investment scheme which has been trustee since developer Terry Agnew took control of the tower in 2008, reported the Australian Financial Review.
Centuria says it is anticipated that the $300 million trust will be the entity which will comprise Centuria’s first listed real estate investment trust to be run by former Mirvac chief executive Nick Collishaw.
"Centuria will now seek to register the trust as a managed investment scheme in preparation for a public listing at some point in the future," Collishaw tells Property Observer.
It is expected that Centuria will seek grow the proposed A-REIT with other acquisitions once it floats.
Centuria chief executive John McBain said that it is pleasing to see solid progress towards our three level property funds management strategy, being direct, listed and wholesale offerings.
McBain told Property Observer in April that Centuria was <a target="_blank" href="/news">working very hard sounding out institutional investors</a> and has offers out in the market for a “few hundred million dollars of real estate” which will form the core of the new listed trust.
Centuria also announced this week a “reasonable expectation” that the group profit for the year to June 30 will “exceed the group profit for the previous financial year by a material amount”.
A minimum statutory net profit after tax of $6.9 million is forecast for 2013 compared with $1.97 million in the 2012 financial year.
Centuria also revealed that Centuria Property Funds Limited has successfully closed the capital raising for the Centuria 10 Spring Street Fund and settled the $91.6 million acquisition prior to June 30.
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Centuria prepares for A-REIT float with trusteeship of North Sydney trophy asset amid expectations of strong 2013 results

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A Victorian era 1889-built brick office building in Melbourne’s iconic Hardware Lane has undergone some tenancy changes recently following an upgrade.

Located at<a href="https://www.realcommercial.com.au/property-offices-vic-melbourne-500251949" target="_blank"> 67-73 Hardware Lane</a> (pictured below), the recently refurbished building boasts boutique-styled offices with timber floors, as well as French doors leading to Hardware Lane.
<img src="/images/stories/2013/07/hardwarejuly3one.jpg" width="470" height="300" alt="hardwarejuly3one">
Creative communications agency Lavender Communications, who currently occupies the second level, will be moving within the same building to level three from July 1. 
Their new premises offers a larger 182 square metre space, which will be able to accommodate a growing business. 
They have signed a two-year lease at a gross rate of $505 per square metre. The lease was negotiated through Rory White of Gray Johnson Melbourne. 
In addition, a modest rent-free incentive of two months is attached to the transfer of offices, said White. 
Level two has also been leased by Gray Johnson Melbourne, to IT business Magnetised Markets. The company will be moving from 121 Flinders Lane to the new space. Their lease stipulates a gross rate of $475 per square metre.
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Tenancy changes for iconic Hardware Lane building

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I recently came across a method of property purchasing common to the people in Brazil who are interested in buying residential property in their home country.
The concept was initally foreign to me so I felt compelled to write about it, because I've never come across anything like it in my property life.
It is the concept or rather, practice of Consórcios (literally translated, means ‘Consortiums’). This is where would-be property buyers who perhaps either struggled to get a mortgage on their own from a lender, or did not see the value in paying wasted ‘interest’ dollars, or should I say ‘Reais’ (pronounced ‘hay-ice’) to a lender, group together with other like-minded folks, in the interest of a common goal; home ownership.
Instead of approaching lenders for loans, the group do not use loans. Instead, they use a lawyer and an administrative company who, for a fee, underwrite a sound contract between all participants of the consortium. The price of a single property is then agreed between all parties and is kept the same. The value of all properties is added together and split into monthly instalments.
From month #1 onwards; each participant must pay their fee. After a very short time, there are enough fees paid for one property. So who gets the first one?
A lottery is drawn at random and whoever is luckiest gets their property purchased outright – mortgage-free. Participants (including the now lucky new home owner participant) continue paying their monthly allotments for the remainder of the contract. Each month another name gets drawn and a property is bought for that ‘winner’.
I will divulge the flaws and risks in such a plan later on, but astute readers can probably quite easily identify a few challenges with this concept already.
<a imageanchor="1" href="https://4.bp.blogspot.com/-HKcy_PKWD8M/Uc6Hy1OPa-I/AAAAAAAAAfk/R77e36vuC9Q/s531/Brazil+consorcio+group+buying+Australia+property+investment+alternative+buying+approaches.JPG"></a>
There is more granular detail on Consorcio schemes <a target="_blank" href="https://thebrazilbusiness.com/article/consorcio-in-brazil">here</a>.
So let me work with some real numbers as an example, before this gets confusing. Let’s say 10 would-be property buyers group together and form a Consortium. Let’s say they each agreed they wanted a property costing $400,000 each. So that is $4 million of overall property value.
The Consortium Administrator divvies up $4 million dollars across say a 10-year period, into monthly instalments that each participant must pay, month in, month out; regardless of who ‘wins’ their property bought at every annual draw (remember it is annual because in this example, there are 10 participants buying 10 properties over 10 years; to keep it simple; so – one per year).
 
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For the purposes of this example let’s ignore the inclusion of any legal/admin fees for now and just focus on the concept. So, $4 million/10 years/12 months/10 participants = $3,333.33 cost-per-month-per-participant. Not too bad when you consider that this is you fixed monthly repayment for ten years, and then after ten years you own the property outright, huh?
However, this is where the risks and element of chance/gambling comes in to it. Each year, a participant is pulled out of the hat and awarded a property. Because $400K is collected every 12 months, a property can be purchased outright (cash), each 12 months.
So, the best case scenario you could find yourself in, in such an arrangement, would be to be pulled out after 12 months, or maybe in year #2 or #3. This means that you get to move into your new home the fastest, and you ‘own’ it instantly (but of course are committed to 9, 8, or 7 more years of payments like everyone else). It also means that you can ‘go shopping’ for a $400K property when the property you want is actually worth $400K at the time.
Clearly then, the ‘losers’ in this scheme are those who are drawn in years #8, #9, and #10.
Not only have you had to fork out payments on everyone else’s properties for 8-10 years depending on the final year you are drawn; but you are stuck with just $400K to spend at the end, just like everything else. Problem is, $400K, ten years down the track, does not buy what it used to! Suddenly the property type that you fancied 8-10 years ago that was $400K, is now hundreds of thousands of dollars more expensive, right?
However, even in this unfortunate circumstance, I would argue that a participants’ position is not entirely weakened. Remember that for almost ten years you have avoided paying interest; only paying capital. If you took out a $400K interest-only loan at a flat interest rate of say 5% per year (which is very conservative and based only on the record-low interest rate environment in July 2013); you would pay around $200,000 in interest anyways.
So, even as a year #10 ‘loser’, and providing you can save up the amount you would have paid in interest, over ten years; you still end up in a very similar position really; you’ll have $600K in your pocket to go shopping then and there; and own a property outright in year ten.
At the end of the day though; as a year #10 loser, you really do lose out. You would have to live every day with not one but three property outgoing costs; you’d be paying rent (you’ll need somewhere to live whilst you wait!), whilst paying consortium commitments every month (remember, I neglected to include the legal and administration fees payable in addition every month; though this is a minute fraction of the cost you’d be paying in interest to a lender), whilst also saving a little extra to safeguard you should you be a year #10 loser, so you can still afford a relevant property by then.
But I guess that is the gamble of such a scheme. Another gray area of the scheme which I could not get specific clarity on; was insurances. What if participants stopped paying after a few years and skipped town? I would imagine the administration fees include insurance schedules, but these premiums would surely come at significant cost.
In the real world, you can enter much safer Consorcios in Brazil, whereby there are not ten members, but thousands (remember, Brazil is a population of almost 200 million people); and the duration of a consorcio may be more flexible than ten years (either shorter or longer). The best part of this is that you can choose different types, from these Consorcio administrations, depending on your risk profile and needs upcoming.
What surprises me most about this concept is how much Banco Central Do Brasil (Central Bank of Brazil); embraces this practice. Consortiums sound like, to me, a massive ‘middle finger’ to the big banks; and offer a way for like-minded property buyers to have a secure means to effectively chip in and pay for each other’s properties whilst avoiding interest repayments for as long as possible.
 
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Plus, the management/administration/legal/insurance costs would need to be paid by all participants, along the way. In many ways, it is the banks genuinely doing people a favour. It is like saying ‘sorry, we won’t approve you for a mortgage with us, but we do offer administration services for consortium arrangements, should you want to participate in one of those, we can help organise it’.
The bank is happy because it takes on additional revenue, but with much less risk associated. Consorcios are actually more commonly used in Brazil for smaller ticket items such as car purchases, than homes, and this makes sound logical sense. Lower risk and exposure for all participants.
<a imageanchor="1" href="https://4.bp.blogspot.com/-23speK2M01c/Uc6Hy5_5uMI/AAAAAAAAAfo/RufZJzp43Ko/s481/Group+Buying+Property+investment+in+Brazil+techniques+for+Australian+investors+Property+Blog.JPG"></a>
Thinking in an Australian context; there are ways you could make this concept work, and it all comes down to scale.
For example, if you entered a smaller scheme such as my example, then the administrator would ensure that seeing as a property needs purchasing only once every year; for the other eleven months of the year; everyone’s contributions would be working hard in a high-interest savings account. This interest would help pay for the legal and administration costs each year; saving the participants money.
You could take this one step further and perhaps park some of the interest earnings from the first say five years, to offset those participants who have to wait for the last five years, to help offset some of the challenges they face when their name is drawn. This would give the ‘losing end’ of the lottery a ‘fair go’ – something very Australian in itself!
Beyond consortiums though, the concept of ‘group buying’ has been around for a long time in various countries, but just never as refined, legally binding, and prescriptive, as Brazil’s system. Thinking again to Australia; this time to the post-WWII Greek-Australian immigrants, arriving to the country for the first time with very little resources behind them.
The Greek community established itself quickly in Australia and brought with them a renewed sense of family closeness and trust that perhaps culturally, the Europeans exercised better than locals. Greek family and family-friend communities would group together across large extended families (so, sometimes up to dozens of cousins, aunts, uncles, nieces, nephews and so on); to ‘chip-in’ to buy each married-off sibling/cousin within the family; a property at the time of marriage, in cash. Then, once the first couple’s property was purchased outright; all family members (including the new property-owning youngster couple) would chip in for the next cousins’ wedding-property.
The problem is; this concept never took off in any formal capacity in Australia, because, well, there was no infrastructure or 3rd party governing body able to reside over these arrangements, making them high-risk and entirely based on human trust.
If we were to add in the element of legal certainty and responsibility, along with insurance and security in; when introducing such a concept in Australia, these costs would add greatly to the participant cost (It is very expensive to do business in Australia in a legally binding, and insurance-covered fashion!). Plus; if a participant skipped town and stopped paying their share; the entire house-of-cards structure would topple if the insurer challenged the consortium or group-buying association’s circumstances.
Still, one must wonder; even with these legal and insurance costs included, it would still be cheaper than paying all that bank interest on each property, over the years, no?
So from my limited understanding of this scheme, I would still argue that, when you consider the first home buyer market in Australia; the relevance and introduction of a practice such as Consorcios would still be conversation worth having.
The truth is that although the motivator Brazilians entering into a consortium versus Australians is very different, it is just as relevant here as it is there. In Brazil, the major barrier to people getting mortgages to buy property is demanding credit rating assessment approval, which sees would-be house buyers not progress through to finance approval.
Usually applicants are hard-working, reliable people; however on paper, the lenders may not agree that their stability is so, well, stable. In Australia it is a different problem. Lenders have more confidence that applicants have stable incomes; it is just that the marketplace here is so expensive; first-home buyers are hard-placed to agree.
For investors it is a different story. Because you may not own a property for many years; you cannot rent it out, meaning it cannot earn income. This does not make for a good investment.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" rel="nofollow" href="https://propertyspectator.blogspot.com.au/">Property Correspondent.</a>
 
 
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An unusual Brazilian property buying scheme that is relevant to Australia: Cameron McEvoy

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Recently I was speaking with an investor who was facing a major dilemma. He had bought an apartment in Abbotsford off-the-plan and now that the property was due to settle he was having problems getting finance approved.  
This was causing him significant stress, as the penalties for not settling are significant. They include losing his deposit and the risk of being sued by the vendor to cover any out of pocket expenses.  
As we discussed his situation it soon became clear how murky his position had become.  
The sales person told him the property had originally been purchased 12 months earlier for $450,000 and was now being on sold prior to completion. Although due to the fact the property had never been settled there was no way to confirm this was correct.  On the surface it appeared to this individual the asking price of $406,000 was a bargain to good to refuse and he signed a contract to purchase the property.  
Prior to signing the contract he had put in place a loan preapproval so he was confident getting a loan would not be an issue and as a result did not buy subject to finance. The next hurdle to clear was to get unconditionally approved. To do this his bank ordered a valuation and this is where his problems started.  
The valuation came back a long way below the contract price at $340,000 and he was being forced him into a position where he would be unable to settle. The real estate mantra of Caveat Emptor, Buyer Beware, meant severe penalties were looming.      
Not all was lost however and like going to a doctor for a second opinion he approached a different bank. Sure enough the valuation came back at the purchase price and his loan was approved.        
So how can one bank value a property so much less than another? The answer lies in the individual bank's tolerance for risk and the kind of property they view as being a safe security.  
The Abbotsford apartment had one bedroom and was only 37m2. Although one-bedroom apartments can make great investments if they are under 50m2 alarm bells start ringing at many banks. A small apartment size is a signal the property maybe a serviced apartment or student accommodation which most banks approach with trepidation.  
In addition banks have postcode restrictions in place that determine their lending policies and these vary from bank to bank. Established apartment markets such as South Yarra and Port Melbourne are more likely to get the nod. However an apartment under 50m2 in an emerging market like Abbotsford is more likely face harsher lending policies.  
Although the valuation is independent the valuer will have an understanding of the banks policy and take this into account. Remember if a valuation comes in too high and the bank loses money on the loan then the valuer maybe legally liable.  
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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The murky waters of bank valuations: Mark Armstrong

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Melbourne CBD office market is moving firmly in favour of tenants, with independent analyst BIS Shrapnel recently reporting an expectation that commercial vacancy in the Melbourne CBD will hit 10% by year end, challenging commercial rental levels and driving greater incentives from landlords. 
With the ball now firmly in the tenant’s court, why then are Melbourne tenants 50% less likely to seek independent advice in negotiating a lease in their own favour?   There has never been a better time for Melbourne’s tenant community to negotiate or renegotiate a commercial lease, but so many unsuspecting tenants are leaving a lot of money on the table by not fighting harder for greater value in their lease negotiations.  
Business owners who might be very commercially savvy, don’t work in the commercial property market day to day, so they are not familiar with the smart ways to work with a landlord to reduce costs and leverage their lease covenants to benefit their organisations”. Melbourne tenants seeking new sites and workplaces are reaching out to us, asking how they can capitalise on the rising vacancy trend they see coming and we are starting to see a significant desire for guidance through the site selection and negotiation process.  
In Victoria, nearly 70% of tenants negotiate their lease without professional help according to PCG.  This is probably expected in a rising market, but as markets fall, tenants become more commercially savvy, and chase greater bang for their buck, so we are watching this trend slowly start to shift. Melbourne’s low representation rates are a disparity with the rest of the country.   In Sydney, more than 95% of tenants are represented by independent tenant advisers, and Brisbane where 75% are represented.  
And evidence shows it is worth their while.  In our experience, engaging a tenant representative to negotiate on your behalf can save between 20 to 30% of the total property commitment cost.  And that money can go right back into the pocket of the tenant… rather than deeper into the Landlord’s pocket.  What everyone forgets is that the commercial or industrial leasing agent is an agent working purely in support of the Landlord. His or her commercial agenda is diametrically opposed to that of the tenant. His or her interest in the tenant extends only to getting the lease done at the maximum price with the lowest incentive possible.    
In other states, a tenant representative is engaged by more than 90% of tenants, which makes more sense given the long term nature of a commercial property lease.  I don’t understand why a tenant wouldn’t seek independent property representation in this day and age… The agent simply isn’t on your team, and there is no industry body that looks after the tenant in Australia.
Even Corenet Global, the industry body for commercial real estate says their charter is about 'Real Estate Professionals' not 'Tenants'.  
But I ask you, who looks after the tenant?  It’s about time somebody did… I guess that’s our job.
Simon Gunnis is the CEO of real estate advisory specialist <a href="https://www.pcg.com.au/" target="_blank">PCG</a>.
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Commercial tenants in Melbourne leave too much money on the table: Simon Gunnis

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There were 20 CBD office sales above $100 million each recorded over the final quarter of the 2013 financial year, according to Knight Frank.
It was the fourth successive June quarter that sales of offices over $100 million have risen.
The biggest sale over the course of 2013 was Charter Hall forming a partnership with a local super fund and a Canadian pension fund to acquire Bankwest Place and the associated Raine Square shopping centre in the Perth CBD for $458 million.
<img alt="knight_frank" height="282" width="297" src="/images/stories/2013/larry_uploads/knight_frank.jpg">
Source: Knight Frank
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Major CBD office sales continue to surge: Chart of the week

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What would a city look like if you got to rebuild it from scratch? And how would you incorporate more than 100,000 ideas from the people who matter the most – the stoic individuals who continue to call Christchurch home?
During a holiday visit to my hometown of Christchurch in late April, I sat down with the man charged with rebuilding New Zealand’s second largest city and discovered a city on the cusp of rebirth.
More than two years before, however, I remember standing in the lunch-room of the REIQ’s Brisbane office on 22 February 2011 and watching as the Christchurch Cathedral crumbled on live television right before my very eyes.
Just six weeks after the Queensland floods and Cyclone Yasi, another natural disaster – this time earthquake – had befallen my life and I watched through tears and an almost overwhelming sense of fear for my family and friends as the place I used to call home was almost wiped from the map.
More than two years – and thousands of after-shocks – later, Christchurch continues to be mostly unrecognisable. One in two roads in the entire Canterbury province reportedly needs repairing so patience is a virtue that is an absolute necessity for anyone driving around the region. In fact, orange witches-hats and mesh fences are ubiquitous.
The central city has, for the most part, been reopened but it is an eerie experience to drive through what was once a thriving CBD populated by thousands of people. More than 1,000 buildings are being demolished in the central city and for someone like me, who remembers clearly the way it used to be, that means I often found myself rather discombobulated with no sense of where I was at all. Indeed, sometimes it felt like I was driving on the moon.
But it is not the moon, it is New Zealand’s second largest city and it must rise from the ashes for the sake of the country’s economy, and for the sake of hundreds of thousands of courageous souls who are waiting and watching for their home to be reborn.
Warwick Isaacs is the man whose shoulders this heavy burden now rests but to him it’s not a burden it’s a privilege. He heads up the Christchurch Central Development Unit (CCDU), a government-created unit, charged with rebuilding the city between the four avenues which have long defined the inner-city precinct of Christchurch.
For a man with such a task ahead of him, he is a relaxed, easy-going individual, who was also happy to sit down with an ex-Kiwi from across the ditch to explain the unique opportunity now available to civic leaders, developers and residents alike.
“The devastation by the earthquake has been quite extreme in the central city,” he says as we sit in the CCDU offices located in one of the few commercial buildings to survive the 2011 earthquake.
“If you look at the central city it’s almost like someone has pointed an arrow and said: ‘That’s where we want to hit’ because that’s the impact.
“Between these four avenues there is in excess of 1,000 buildings being demolished and the very heart as you would have seen, the landscape is almost back to Ground Zero.
“What the recovery plan is about is, there were over 100,000 submissions from people in Canterbury and businesses and people from afar as well, that went to the council process – it was called Share an Idea.
“New thinking has come to Christchurch. There are opportunities the earthquakes have given us – it’s been a tragic thing – but there are opportunities to reinvigorate and revitalise, and set the tone for Christchurch as a future city rather than a city that’s still evolving from its past heritage.”
Nicola McDougall is the <a href="https://reiqblog.com/" target="_blank" rel="nofollow">REIQ</a>’s executive manager of corporate affairs.
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