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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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No one has ever succeeded in property investment without knowledge gathered from thorough research. But, for many wannabe investors, research consists of skimming headlines. 
   I’ve done five seminar presentations in three states in the past couple of weeks and 90% of the questions I’ve received have been based on skinny knowledge, vague impressions and misinformation.   “I’ve just bought a new house-and-land package in Gladstone – how come I can’t find a tenant?”   “I read that the resources boom is over. Do you think I should sell all my properties?”   “I was planning to buy in Brisbane but I saw a report that said there had been no price growth in Brisbane – what should I do?”   It’s scary, really, how little people know as they consider spending hundreds of thousands of dollars.   You have to dig a little deeper.   The major research sources publish generalised data about the major cities. They generally ignore the regions and they publish a single price figure for a city of many millions. It may be interesting but it doesn’t help anyone make an intelligent investment decision.   The latest report from the Real Estate Institute of Australia records a 2.3% decline in Brisbane’s median house price in the March quarter and annual growth of just 0.7%.   Does that mean there’s no growth in Brisbane? No, it doesn’t mean that, not if you look behind the generalised figures. The report fine print shows that median price for the outer ring suburbs rose 2% in the March quarter and is up 4.4% on a year ago. Similarly, the median for the inner-city suburbs rose 1.5% in the quarter and is up 6.5% on a year earlier.   The generalised median unit price for Brisbane dropped marginally in the March quarter and is up only 1.1% in annual terms, but hidden behind that data is a 15.7% annual rise in the median unit price for the outer ring suburbs of the Queensland capital.   Adelaide appears to have delivered nothing much in the way of rental growth in the past year but big a little deeper and you find the median rent for three-bedroom houses in the inner ring suburbs rose 5%. Rent for one-bedroom units are up 6.1% in the inner city and 6.8% in the middle ring suburbs.   Sydney overall recorded a 1.6% decrease in the median unit price in the March quarter and only 1.7% growth over 12 months, but the median unit price for the outer ring suburbs is up 5.7% in annual terms.   The median unit price for Melbourne apartments has dropped in the inner-city areas – not surprisingly, given the vast over-supply – but median price for the middle-ring suburbs is up 3.5%.   There’s never a single market situation in any of our cities. There are different scenarios playing out in different price ranges, product types and geographical areas.   To succeed, you have to go deeper, look behind that shallow analysis of economists and property research firms, and understand what’s happening at a more micro level.   A little knowledge is a dangerous thing, nowhere more so than in property investment.     Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a>
 
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terryryder-YECXbqmri2

It’s scary, really, how little people know as they consider spending hundreds of thousands of dollars: Terry Ryder

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Property developer Keith Levett, the director of Kitchen World Australia, and his wife, Jillian, have listed their Dolans Bay residence with boatshed and jetty for July 1 expressions of interest.
The five-bedroom house sits on the 2950 sq m Port Hacking Road estate that incorporates the 1930s mansion, Windemere, the former Sisters of Mercy convent which Levett bought 16 years ago.
Completed 11 years ago, <a href="https://www.mcgrath.com.au/buy/house-dolans-bay-nsw-2229/167147/?searchID=29539975" target="_blank">it has been listed by McGrath agent Sean Egan</a>.
In 2007 there were $7.5-million-plus hopes. They are now seeking $6 million plus.
The suburb's record has stood at $3.37 million since 2007.
<img alt="trophyhomesstrapone" src="/images/stories/2013/05/trophyhomesstrapone.jpg" width="470" height="57">
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jchancellor-FAypfDUnLy

Remodelled convent at Dolans Bay listed as $6 million trophy home

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Melbourne-focused Asian development group Far East Consortium has acquired the remaining majority portion of the former headquarter of The Age at 250 Spencer Street for $75 million.
The site has approval for an <a target="_blank" href="https://www.propertyobserver.com.au/developments/ispt-looking-to-sell-majority-of-spencer-street-site-formerly-occupied-by-the-age-newspaper/2013060661961">$800 million six-tower apartment development.</a>
The property development group announced the acquisition in a statement to the Hong Kong Stock Exchange over the weekend, where it is listed.
The purchase is subject to Far East Consortium being granted approval by the Foreign Investment Review Board (FIRB).
Far East Consortium is currently building the $1 billion Upper West Side project which features four residential towers of 2,600 apartments near The Age site. One tower is already completed with a second under construction.
The latest acquisition continues the trend of Asian-based property developers acquiring Melbourne CBD development sites for residential high-rises.
Current Asian projects in Melbourne include Hengyi Australia, the Australian arm of the mainland Chinese developer which is developing serviced apartments at The William at 199 William Street opposite the Supreme Court.
In December Malaysian developer Mammoth Empire secured a prime development opportunity on Elizabeth Street opposite a 55-storey residential tower it already has under construction.
<a target="_blank" href="https://www.propertyobserver.com.au/victoria/melbourne-cbds-tallest-residential-tower-crown-tussle/2013022858541">Singapore developer Chip Eng Seng </a>has received the go ahead for CEL Australia’s $170 million Tower Melbourne which will boast 555 apartments (and townhouses) across 71 storeys.
The 11,750 square metres portion of the 15,200 square metres site (nearly a whole city block)  acquired by Far East Consortium was put up for sale by ISPT last month with expectations of between $70 million and $80 million.
The smaller eastern portion of the site was sold to Melbourne apartment developer Central Equity for $17 million in 2010.
Far East Consortium has completed around a dozen projects over the past 20 years.
ISPT acquired the site for $66 million in 2007.
Colliers International agent Tim Storey negotiated the ­off-market campaign.
 
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lschlesinger-FZcF9M3vE6

Hong Kong-listed Far East Consortium acquires ISPT’s Spencer Street site for $75 million

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I’ve been interested in the commentary about the Aussie dollar’s loss of value against the US dollar.
At the start of May, one Australian dollar could buy $1.05 American; this week it was down to buying US.93¢.
The portents have all seemed grim, but what does the Australian dollar actually mean?
For a starters, the relative value of our currency is not always a bellwether on how we are doing as a nation.
In June 1998, Australia’s economy was growing at 3.9% and John Howard called us the 'strongman' of Asia, yet the Aussie dollar could only buy US.58¢.
In mid-June 2006, the Aussie dollar traded at US.73¢ during a time when the government had surpluses, unemployment was low and we had an equities boom.
What lifted the value of Australian dollar above US$1.00 from late 2010 to May of this year was our trade performance relative to the US economy: resources were being exported in large quantities and at high prices at a time when the US economy was flat.
For most readers this phase meant significant purchasing power when traveling overseas and very good terms from online American retailers.
But life isn’t all about cheap holidays and cut-price Nikons. Our manufacturing sector suffered under a high dollar because it was cheaper for Australians to source goods overseas, while local companies found it hard to export because the exchange rate favourable to Australia made the goods expensive for the importing nations.
Over the past two years we saw a ‘two speed’ economy, where resource exporters could thrive regardless of the high Aussie dollar because what they were exporting was in high demand, while local manufacturers went backwards.
Our domestic energy consumption has flattened due in part to manufacturers operating at under-capacity or going out of business during this phase.
Now that the Aussie dollar is buying less than one American dollar perhaps we should remind ourselves why it is not so bad for our local manufacturing, hospitality and tourism.
With a weakening dollar, Australia looks like a reasonably-priced destination for international tourists and a place where Aussies will holiday rather than going overseas. This also gives the tourism ancillaries – cafes, pubs, restaurants and accommodation – a boost.
These industries are not to be trifled with: the services economy is larger than mining, contributing to around 70% of our GDP and about 75% of employment.
And with the Aussie dollar not so high, Australian manufacturers – many of whom operate at a quality and price premium compared to Asian competition – can find opportunities again where the high dollar is not a hindrance.
There is an argument that the resources boom was actually a market distortion, and that a strong dollar and repressed manufacturing was the price to pay.
Now that the resources boom is passing, perhaps the accompanying lower Aussie dollar is better for a much larger slice of the economy than the high dollar was aiding.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" rel="nofollow" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
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mbouris-tauSvXGAM2

A lower Aussie dollar isn't all bad news: Mark Bouris

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Once again, Melbourne is producing ‘healthy’ results with the clearance rate now residing at 70% for the year to date (up from 68% in April) and the latest REIV house price index posting a 1.4% increase for the month of May.
According to the REIV, this is the eighth consecutive month of house price increases, with unit prices also showing a moderate boost - up 0.9% for the month – which is the third consecutive monthly rise.
Not surprisingly, the biggest gains have been recorded in the inner and middle regions of the city – principally, the ‘auction-dominated’ terrains – with the outer suburbs remaining stable.
Most sales in Melbourne are conducted private treaty with a rough 80/20 percentage split – 80% being private sales and 20% for sale by auction and although as a percentage of total sales, the share of auction transactions is down on this time last year, in raw numbers we are marginally ahead. When I last checked, year to date there have been approximately 11,719 auctions, compared to 10,742 for the same time in 2012.
When confidence improves and auction results start to ‘openly’ surpass their reserve, the number of vendors opting to sell using this method increases. As reported by the REIV - by the end of June approximately 3,175 auctions will have been held. Only once in the past decade (2010) have there been more auctions in June, and in the inner and middle ring suburbs there is no perceptible sign of the market weakening, if anything the reverse is occurring.
Evidently, the majority of auctions I watch are selling under the hammer. However, it should be noted I filter the auctions I attend, concentrating primarily on listings which attract a wider buying market due to location and type - albeit, in some instances, those sales are exceeding reserve by as much as 10%, and on occasion more.  As we’ve seen previously, this cannot be sustained over the longer term.
It’s not quite the rampant atmosphere experienced in 2007 during which the ‘lending frenzy’ leading up to the GFC was pushing excessive amounts of easy credit into the market. Prices are still well below their peak and results patchy.
Albeit, whilst the aggregated data shows only moderate gains, in areas where auction sales predominate (such as Bentleigh, Hawthorn, Glen Iris for example) a number of economic and social factors have combined to push it well and truly into a sellers' domain.
The somewhat robust turnaround has produced a point of confusion in recent media articles.  Confidence is still waxing and waning, with the Westpac-Melbourne Institute Index down 7% in May to 97.6 – below the ‘critical’ 100 point bench mark - and although a bounce back in June was welcomed, we’re still on a rough equal split between those who think the cup is half full, or empty.
Also, news of job losses have been filtering in over the past few months, initially from Ford and Holden and most recently Target – not to mention some of Victoria’s fruit growing regions following cutbacks by SPC Ardmona.  All of this will produce a drag on Victoria’s employment data over the months to come, with unemployment currently sitting at around 5.6% (in trend terms.)
The recent drop in the cash rate, provided buyers will a little more spending power, however the 70% year to date clearance rate with overall turnover increasing and prices swinging past the reserve, is more to do with the effect public auctions have on buyer confidence than anything else.
 
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I have written about the chain reaction this method of sale has on the market as a whole previously. The last time we had an auction rally was back in 2010 during which clearance rates were in the 80s.  I’m still coming across buyers who, to date, having bought at ‘peak’ under competition, three years later, cannot sell for purchase price.
In other words, regardless of low interest rates and ‘improved affordability’, their property sits in negative equity with new data from Melbourne Institute’s federally-funded Household, Income and Labour Dynamics in Australia survey backing it up. It shows one in every 40 families with a mortgage in 2010 owed the bank more than their home was worth, with senior economist Shane Garrett commenting that negative equity rates were likely to be the same now as in 2010.
Is it ever OK to say it’s not a good time to buy? Quite clearly, yes!
The physiological impact when bidding against competition for an emotional asset has been well documented - and when confidence improves, this method of sale does result in higher prices – prices which would be extremely difficult to negotiate in a private sale scenario during which there would be no undisputed evidence to the leading buyer that a competitor is willing to pay more.
Not unlike sports gambling, a well-staged auction actively encourages buyers to lose a sense of considered rationality, with a trained auctioneer pushing the ‘players’ to stretch their budgets past their pre-established limit, which when combined with a strong desire to 'win' at all costs, can result in a potentially dangerous set of circumstances.
Without adequate knowledge of where we started, taking full advantage of sales data for the duration of the ‘to-date’ 12-month time span, the possibility of overpaying on the back of a short term auction ‘rally’ is ever prevalent and the resulting rise in vendor’s expectation as they see neighbouring properties sell at a higher price, is not quickly corrected.
Furthermore, in some of these key regions stock is dropping – particularity good stock – which is fairly typical of a rising market.  After all, who wants to sell when the perception remains that a vendor can get more if they hold and wait for further gains? Especially as additional rate cuts are still widely anticipated.
Therefore, considering the clear reality that the market shows no current sign of weakening, it’s somewhat of a surprise to find RP Data’s daily index for the month of May posting a -4.4% drop in Melbourne unit prices whilst at the same time, there has been a 3.7% rise in house prices for the same period. Overall, RP Data’s recorded monthly drop for Melbourne is -2.1% and in light of the information above, it should be questioned.
It’s not the only surprise to be found in RP Data’s monthly index. Take Canberra for example – according to RP Data, dwellings were up 3.8% for the March quarter – yet just two months in to the second quarter they have dropped by -1.5%.
Hobart’s unit market has all but ‘crashed’ with prices -8.5% – whilst on the other hand; the housing market has posted a rather ‘healthy’ rise of 3.4%.
 
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Overall, the combined capital city index declined 1.2% over the month of May after falling by 0.5% in April.  In other words, we’re on a downward slope with Rismark’s CEO Ben Skilbeck commenting that it could be “driven by vendors reducing their initial expectations in order to meet buyer offers.”
However, to come to this conclusion, you need to do more than simply theorise on the results as they’re set out on a spreadsheet.
I’ve had the advantage of negotiating with vendor’s over the past six months, and can quite confidently confirm, there has been no such decline in expectation – unless the property is compromised by location or interior design, most are enjoying a relative windfall in relation to last year’s expectations. And according to <a href="https://www.sqmresearch.com.au/graph_median_weeks.php?region=vic%3A%3AMelbourne&amp;type=c&amp;t=1" target="_blank">SQM’s weekly “vendor sentiment index,”</a> asking prices are – if anything – trending upwards which once again suggests there is demand in the market currently meeting expectation.
I’ve cautioned previously about this short term approach to statistics and I’m by no means alone in doing so. There has been plenty of criticism aimed at RP Data’s daily index for the apparent ‘mis match’ with other market indicators.
It seems the general consensus of opinion revolves around ‘lagging’ results which are collected and shuffled into the index at a later date.  This would make sense in light of the strong gains that were posted in the first quarter, but not immediately evident ‘on the ground’ – and it should be remembered that the ‘daily index’ is not seasonally adjusted, so data can be ‘noisy.’
RP Data have recently claimed they <a href="https://news.domain.com.au/domain/real-estate-news/are-house-prices-rising-or-falling-20130603-2nlqd" target="_blank">“ring up agents</a>” to get information of private sales, which would be a mammoth task considering most agents are highly unlikely to prioritise the reporting of private treaty sales information as soon as a contract is signed – if at all.  And yet this is what the accuracy of daily index relies upon – prompt agent reporting.  Without it, the results lag until the official ‘settled’ sales data filters through from the government (some three months ‘plus’ later.)
With this in mind, the degree of concentration given over to the index should be questioned.  Furthermore, until missing results have been collected, correlated and adjusted for seasonal distortions, it’s clearly not a reliable or timely indicator.
However, it’s fair to suggest the underlying fundamentals of our “to date” ‘market recovery’ are at best - weak. Credit growth has been hobbling along (in part due to the trend to ‘pay down’ debt) and although ABS April data shows the highest monthly uptake of home loans since November 2009, Westpac best summed it up best when they suggested the gains to be ‘underwhelming,’ commenting on the 0.7% decline (excluding refinancing) for owner occupiers, albeit year to date, they are up 11.4% (not a great result in light of the current low interest rate environment.)
Data from the Department of Sustainability &amp; Environment shows more mortgages in Victoria are being discharged than lodged and turnover – although moderately up with <a target="_blank" href="https://www.macrobusiness.com.au/2013/06/vic-transfers-mortgage-demand-still-depressed/">168,029 transfers taking place in the year to May 2013, up from the record low 167,200 transfers in the year to March 2013</a> –remains 13% below the decade average.
So what’s the fuel pushing both clearance rates and prices past reserve? Well – in a word (or two) – primarily speculation and a rush to invest anywhere that provides a greater return than stashing cash in a long term deposit account.
It’s clear, investors remain the most active demographic, with the value of investor finance commitments up by 1% in April, and 18% over the year - the highest level since January 2008, which would have a beneficial roll over effect for those relying on sales to ‘upgrade’ (which it should be noted, increases spending power without the need to increase borrowing levels.)
In a recent survey conducted by Mortgage Choice of a sample 1000 mortgage holders, 83% (roughly four out of five) voiced consideration to use the equity in their principle place of residence to purchase an investment property – the trend is strong.
With this in mind, you have to wonder how long the current ‘recovery’ in Melbourne (and for that matter some of our other states) will last – especially as questions of oversupply still hang on the horizon. Or perhaps Steve Keen best summed it up when he termed it a ‘suckers' rally?’
All in all let’s face it, as it stands, the market is imbalanced, with a proportionally lower percentage of first-home buyers, a desperate bid from investors for advantage from short term gains, and a construction industry calling out - somewhat desperately - for another rate cut.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
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Despite recent signs of recovery the Melbourne property market remains imbalanced: Catherine Cashmore

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A seven-bedroom Eastwood house sold on the weekend for $1,695,000.
The 25 Denistone Road house (pictured below) had been listed with $1.5 million-plus hopes.
{yoogallery src=[images/stories/2013/06/june17eastwood]}
It was completed by an owner builder over the past two years.
Its McGrath selling agent Wayne Vaughan marketed <a href="https://www.mcgrath.com.au/buy/house-eastwood-nsw-2122/138103/?searchID=28746230" target="_blank">it as offering a contemporary abode of 55 squares on a 1,088 square metre block in walking distance to the Eastwood centre</a>.
There was competitive bidding for the home from families seeking multi-generational abodes.
It sold to a young couple of Chinese descent  with two young children. They also have family coming to live with them utilising the downstairs  area at the front of the home.
Another seven-bedroom house to sell recently was at Saratoga. The 105 Steyne Road house - with views over Brisbane Water from its deep waterfront holding - fetched $1,775,000 last week also through McGrath Central Coast agent Mat Steinwede.
He described it as a three level house with impressive outdoor leisure areas. The seven bedrooms included "massive main with spa ensuite and deck." There was also five modern bathrooms, a large home theatre and games room. The 743 square metre block cost $360,000 in 2007.
Arlington, a seven bedroom Galston house sold recently. The 36 Crosslands Road house (pictured below) sits on five acres.
{yoogallery src=[images/stories/2013/06/june17galston]}
There was a <a href="https://www.realestate.com.au/property-house-nsw-bella+vista-113475551" target="_blank">six bedroom Bella Vista house </a>also recently sold through Starr Partners Bella Vista for $1,135,000. The 85 Edgewater Drive house, which was built in 2005 after the block cost $530,000, also comes with a study. There were four fully tiled bathrooms. The master bedroom had a walk in wardrobe and en-suite and three bedrooms came with en-suite and walk in wardrobe.
{yoogallery src=[images/stories/2013/06/june17bellavista]}
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Seven-bedroom Eastwood home sale proves desire for multi-generational Sydney family homes

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The Toorak property, 16 St Georges Road is one of Melbourne’s most significant homes.
It sits on just about an acre, the home of LU Simon building company director Peter Devitt and his wife Jo and their family for many years.
It is being marketed internationally via a website and a <a href="https://www.16stgeorges.com/" target="_blank">short film</a> with a sound track called Beautiful Rose by composer Alex Khaskin. The lead actors were professionals, Gary Glenn and model/law student Millie Davis. Not sure about the labrador.
All co-ordinated by market leaders Goldeneye Media whose campaign secured 33,000 views in its first week.
Agent Ross Savas was talking around $20 million for the property on its listing late last year.
The Devitt's are off to a St Kilda Road apartment.
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The beautiful rose, 16 St Georges Road, Toorak remains listed

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A quick update on where the largest declines in residential property values have been experienced and where the largest capital gains have been recorded across the country.
The bar charts below show the top 30 statistical divisions nationally for the largest ‘peak to current’ decline in dwelling values (i.e. change in house and unit value from their respective market peak through to the end of May 2013) and the largest annual capital gains over the past five years (based on compounding growth rate).
The largest corrections have clearly been recorded across the coastal and lifestyle markets;  more particularly the largest declines are most concentrated across unit dwellings within these regions.  There are a variety of factors that have caused values to fall substantially in these areas:
<ul>
<li>Unit dwellings within the lifestyle regions generally show a larger proportion of investor owners and holiday home / second home owners.  In times of financial distress, the investment property or second home will often be the first to be divested.  A large number of properties were added to the market in these areas at a time when buyer demand was virtually non existent.</li>
<li>Additionally, unit dwellings within these markets are often more reliant on short term holiday rentals or long term rental demand from service workers associated with the tourism and retail sectors, both of which have shown weakness post GFC.</li>
<li>These markets were prime beneficiaries of the ‘sea change’ phenomenon where retirees or prospective retirees were driving migration and housing demand in these locations.  I would expect that this trend (and hence housing demand) has slowed substantially as many retirees and prospective retirees look to rebuild their wealth post GFC before embarking on their sea change.</li>
<li>There’s also the fact that most of these markets recorded a strong run up in values pre-2008 and were arguably overvalued.</li>
</ul>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2013/06/lawlessjune17one.jpg" alt="lawlessjune17one" width="407" height="580">
For those individuals who have aspired to own a holiday home or relocate to one of these lifestyle markets the buying opportunities are now looking much more affordable than they were back in 2007.
 
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The largest gains have generally been recorded across regional markets around the country, particularly those associated with the mining sector.  The Pilbara region of Western Australia stands out as recording the highest rate of capital gain at 19.8% per annum over the past five years.  This is clearly a spectacular return, however many of these mining regions are now showing a substantial slowdown in buyer demand as the resources sector transitions out of a very strong phase of infrastructure investment and growth.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2013/06/lawlessjune17two.jpg" alt="lawlessjune17two" width="380" height="580">
Tim Lawless is national research director of <a href="https://www.myrp.com.au/" target="_blank" rel="nofollow">RP Data.</a>
 
 
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The pain and the big gains in Australian property values: RP Data's Tim Lawless

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It should be quite obvious by now that most Australians would agree that calling an election six months out has been nothing less than a diabolical economic disaster. On a daily basis consumers are being hit with an avalanche of misinformation which is paralysing consumer confidence within the Australian economy.
There is no better example than the relevance battle as newspapers morph their business models into the more consumer preferred online models. Newspapers will eventually cease Monday to Friday and move to the re-branded weekend editions with online publications broadcasting the working week.
A brand new environment that is fraught with danger given the survival model is based entirely on convincing investors these media initiatives will entice investors and pay wall subscribers. <a title="Media rivals facing a brave new world" href="https://www.theage.com.au/business/media-rivals-facing-a-brave-new-world-20130607-2nvh2" target="_blank">Media rivals facing a brave new world</a> which is a topic I find quite fascinating given if the pay wall strategies fail (which I think they will) the respective brands’ consumer integrity will collapse.
Online technologies are the new consumer addiction – just look at the Samsung vs Apple battle for example where it is abundantly clear that consumer communication is changing on a daily basis.
Last week we read <a title="jobless rate tipped to hit 10 – year high" href="https://www.theage.com.au/business/jobless-rate-tipped-to-hit-10year-high-20130612-2o4b0" target="_blank">jobless rate tipped to hit 10-year high</a> yet ninety minutes later we learn that the frequently compiled jobless rate went down to 5.5%. What we have today is a plethora of bad news which ends up contradicting itself – no better example than Western Australia being in recession (the week before last) only to see a correction a few hours later that it was not in recession.
Having said that I agree what Charlie Aitken wrote last week that – “what we need to put in context is that the East Coast of Australia has been in a “feels like” recession for five years.’’
I blame the federal government for this given in the <a title="March Quarter 2013 CEO Pulse" href="https://www.businessspectator.com.au/sites/default/files/arbitrary_files/456886/Business%20Spectator%20GA%20Research%20CEO%20Pulse%20Report_Qtr1_2013.pdf" target="_blank">March Quarter 2013 CEO Pulse</a> – the nation’s top chief executives’ scorecard for the government’s performance in managing the economy was down to 2.7 out of 10, which was the second lowest point it has been since Business Spectator began CEO Pulse in 2010. The lowest rating was 2.6 in Quarter 3, 2011.
“The World’s Greatest Treasurer” climbed onto his soapbox this week <a title="Swan slams recession talk " href="https://www.businessspectator.com.au/news/2013/6/13/politics/swan-slams-recession-talk" target="_blank">Swan slams recession talk </a>which was an understandable rebuke given in the case of the Australian economy he is to wield the ‘Midas Touch’. The problem for Australia’s treasurer is that <a title="business confidence stuck in a rut " href="https://www.smh.com.au/business/the-economy/business-confidence-stuck-in-a-rut-20130611-2o161" target="_blank">business confidence stuck in a rut </a>with the National Australia Bank business conditions index for May posting a minus 4 which was up from the minus 6 in April – despite a falling Australian dollar with record low interest rates.
Jessica Irvine filed a fantastic article on Business Spectator – <a title="Forty – three ways to boost productivity" href="https://www.businessspectator.com.au/article/2013/6/11/economy/forty-three-ways-boost-productivity" target="_blank">Forty-three ways to boost productivity</a> an amazing critique of the Australian business economy.
<img alt="simeonjune17one" height="357" width="470" src="/images/stories/2013/06/simeonjune17one.jpg">
<img alt="simeonjune17two" height="378" width="470" src="/images/stories/2013/06/simeonjune17two.jpg">
 
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The fascination with the Mosman market continues with houses and apartment listings continuing their downward spiral in terms of available properties. These same results are being mirrored in Cremorne and Neutral Bay listings. For those hoping for a post-election property bonanza you should consider this. At this stage the federal election is set for September 14 – on September 20 NSW goes into school holidays which conclude on October 9 so we expect a strong run of new stock in the lead-up to the election with vendors punting on a change of government.
Source: Australian Property Monitors
<h4>MOSMAN – 2088</h4>
• Number of houses on the market this time 2012 – 94 • Number of houses on the market last week – 81 • Number of houses on the market this week – 76 • Number of apartments on the market this time 2012 – 89 • Number of apartments on the market last week – 59 • Number of apartments on the market this week – 60
<h4>CREMORNE – 2090</h4>
• Number of houses on the market this time 2012 – 16 • Number of houses on the market last week – 8 • Number of houses on the market this week – 9 • Number of apartments on the market this time 2012 – 19 • Number of apartments on the market last week – 10 • Number of apartments on the market this week – 9
<h4>NEUTRAL BAY – 2089</h4>
• Number of houses on the market this time 2012 – 17 • Number of houses on the market last week – 12 • Number of houses on the market this week – 13 • Number of apartments on the market this time 2012 – 54 • Number of apartments on the market last week – 32 • Number of apartments on the market this week – 34
Surprise, surprise! For the financial year 2010/11 there was a $39 billion claim by Australian landlords in deductions which was an 18% increase on the previous financial year.
Hence an Australian Taxation Office – <a title="crackdown on landlords after surge in claims." href="https://www.smh.com.au/money/tax/crackdown-on-landlords-after-surge-in-claims-20130611-2o26i" target="_blank">crackdown on landlords after surge in claims.</a>
Parliament sits for the final time next week until the election – I (like many others) expect a spill with another prime minister being appointed – given the previous form guide this will happen next Wednesday night where the Governor General’s son-in-law will be the union chosen one.
The real estate industry will be hoping he calls an August 3 or 10 election.
Robert Simeon is a director of <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a rel="nofollow" target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
 
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Strong run of new real estate stock expected for Mosman, Cremorne and Neutral Bay in lead-up to federal election: Robert Simeon

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The fortunes of Clive Palmer’s five-star Coolum Resort have sunk dramatically, a local tourism operative has claimed.
It follows Palmer renaming of the former Hyatt Regency Resort the 'Palmer Coolum Resort', the reported sacking of hundreds of workers and the loss of its premier event, the Australian PGA, which this year will be played at Royal Pines.
Noel Mooney, president of Coolum Business and Tourism, told The Australian that the original investment by Palmer was treated as a very good for the local economy but that things have since soured.
"Nothing (at the resort) seems to make sense now.
"Nothing flows or matches up. Occupancy there has been down to 2% and 3%
“Before (under Hyatt's management and higher occupancy) the tourists would venture out and spend money in the retail areas,” says Mooney.
Court documents obtained by The Australian from Palmer's battles with Hyatt in the Supreme Court last year reveal it had a much higher occupancy but was losing money when he bought it in mid-2011.
The mining billionaire and now political candidate in the seat of Fairfax <a href="https://www.propertyobserver.com.au/news/mining-magnate-clive-palmer-snaps-up-sunshine-coast-resort/2011070650722" target="_blank">acquired the five star former Hyatt Regency resort</a> and adjoining golf course from Lend Lease at Coolum on the Sunshine Coast in July 2011 and has since renamed it Palmer Coolum Resort.
Last year, Palmer severed ties with the Hyatt group, which had the management rights for the resort for 12 years.
The newly branded resort includes a portrait of the mining magnate in the lobby, a restaurant called the Palmer Grill and most recently, a new car museum with 30 vintage cars from Palmer's private collection including a 1954 Aston Martin.
He has reportedly scaled back plans for a dinosaur theme park.
 
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