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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 decision by the ACT government to withdraw the $7,000 first-home owner grant on August 31 and replace it with a $12,500 grant for new homes only from September 1, means six states and territories have shifted their incentives in favour of what Ray White boss Brian White says is effectively a “builders’ grant”.
NSW, Victoria, Queensland, South Australia. Tasmania and the ACT have all withdrawn (or will withdraw in the coming months) their handouts for first-home buyers who buy an established home.
The Real Estate Institute of Australia's (REIA) campaign for these states and territories to honour the “uniform” nature of the original InterGovernmental Agreement struck in 2000 that “an eligible home will be new or established” is unlikely to succeed.
For first-home buyers, these are the grant handouts available in their state and territory markets currently as well as what’s about to change in the coming months:
(Click on the state names for links to the relevant state revenue office pages).
<a target="_blank" href="https://www.osr.nsw.gov.au/benefits/first_home/">NSW</a>
The NSW state government offers a $15,000 grant for first-home owners who purchase or build a new home valued at up to $650,000. The grant was available until December 31, 2013, reducing to $10,000 from January 1, 2014, but the 2013 State Budget<a target="_blank" href="/news"> extended the availability of the $15,000 </a>until January 2016.
<a target="_blank" href="https://www.sro.vic.gov.au/sro/sronav.nsf/alltitle/First%20Home%20Owners?open">Victoria</a>
The Victorian government offers a $7,000 first-home owner grant for both new and existing homes until from June 30. The grant is available if the price of the property or construction of the home does not exceed $750,000. From July 1 a new $10,000 grant for newly constructed homes under $750,000 begins.
<a target="_blank" href="https://www.osr.qld.gov.au/first-home-owner-grant/index.shtml">Queensland</a>
The Queensland government offers a $15,000 great start grant for first-home buyers buying or building a new home valued under $750,000.
<a target="_parent" href="https://www.finance.wa.gov.au/cms/content.aspx?id=344">Western Australia</a>
The WA government offers the $7,000 first-home owner grant for both existing homes and new homes. A cap limits the total value of properties (i.e. total value of home and land) to $750,000 or less, or if the home is located north of the 26th parallel to $1,000,000 or less.
<a target="_blank" href="https://www.revenuesa.sa.gov.au/fhog/index">South Australia</a>
The South Australian government offers a FHOG of $15,000 for new homes. It also offers a maximum Housing Construction Grant (HCG) of $8,500  to all home buyers (FHBs and non-FHBs) who are purchasing or building a new home with a market value of under $400 000. Above $400,000 to a maximum of $445,000 the grant decreases in increments of $5,000.
For first home buyers buying an existing home there is a First Home Owner Grant (FHOG) of $5,000.
The Housing Construction Grant expires on June 30 2013. The $5,000 FHOG grant for existing homes expires on June 30 2014.
<a target="_blank" href="https://www.revenue.act.gov.au/home_buyer_assistance">ACT</a>
The ACT government offers a $7,000 grant to first home buyers buying both existing and new homes capped at the total value of home and land of $750,000 or less. This expires on August 31. From September 1 first-home buyers in the ACT will receive $12,500 if they buy or build a new home or buy one that has been substantially renovated.
<a target="_blank" href="https://www.sro.tas.gov.au/fhog">Tasmania</a>
The Tasmanian government currently offers a one-off FHOG payment of up to $7,000. The grant is not means tested and there is no cap on the value an eligible home.
There is also a First Home Builder Boost (FHBB), a payment, in addition to the FHOG, of up to $8 000. It is available for eligible applicants, purchasing a newly built home or who are owner-builders between 1 January 2013 and 30 June 2014 and who meet the required time frames for commencement and completion of the house.
Both these grants will end on June 30, 2014.
From July 1 2014, Tasmanian first-home buyers who build or buy a new home (including off-the-plan) will be entitled to a $7,000 FHOG.
<a target="_blank" href="https://www.treasury.nt.gov.au/TaxesRoyaltiesAndGrants/HomeOwnerIncentives/Pages/default%20220213.aspx">Northern Territory</a>
The Northern Territory offers a first-home owner grant for both new and established homes that remains ongoing.
FHOG is not means tested however, from 1 January 2010 eligibility ceases to apply if the consideration for, or the value of the home is more than the transaction eligibility threshold (see table below). This includes the unencumbered value of the land on which a home is to be built. The amount of the transaction eligibility threshold is determined based on the commencement date of the eligible transaction.
The commencement date of an eligible transaction is:
for a contract to purchase or construct a home, the date when the contract is made; or
for an owner builder, the date the laying of the foundations commenced.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td width="318" valign="top">
Commencement date of eligible transaction?
</td>
<td valign="top">
Transaction eligibility threshold?
</td>
</tr>
<tr>
<td width="318" valign="top">
On or after 4 December 2012?
</td>
<td valign="top">
$600 000?
</td>
</tr>
<tr>
<td width="318" valign="top">
From 1 January 2010 - 3 December 2012?
</td>
<td valign="top">
$750 000?
</td>
</tr>
<tr>
<td width="318" valign="top">
Prior to 1 January 2010?
</td>
<td valign="top">
No threshold applied?
</td>
</tr>
</tbody></table>
The amount of the grant increased on 4 December 2012 in relation to eligible transactions that commenced on or after that date. From that date, the amount of the grant also varies depending on the type of transaction and location of the property.
If the commencement date of the eligible transaction is on or after 4 December 2012, the amount of the grant is the lesser of the consideration actually paid for the eligible transaction, or:
a) $12 000 if the home is an established home in the urban area;
b) otherwise - $25 000
If the commencement date of the eligible transaction is before 4 December 2012, the amount of the grant is the lesser of the following:
a) the amount of consideration actually paid for the eligible transaction;
b) $7000
An established home is one that has been previously sold or occupied, and is lawfully fit for occupation.
An urban area means all land located wholly within the boundaries of:
<ul>
<li>the Darwin, Palmerston or Litchfield municipalities;</li>
<li>Wagait Shire;</li>
<li>the Darwin Waterfront Precinct;</li>
<li>the “prescribed area” for the Darwin Rates Act.</li>
<li>any other area prescribed by regulation.</li>
</ul>
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lschlesinger-FZcF9M3vE6

First-home owner grants: a state-by-state guide

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People who pay thousands of dollars to attend investment seminars in the belief this will help them get rich quick are only fooling themselves, Yellow Brick Road founder and Celebrity Apprentice host Mark Bouris has warned.
Bouris says there are no “shortcuts” or “secrets to success” - only “pure hard work”.
His says his message is aimed at “those people who pay tens of thousands of dollars to find out things like the seven secrets to success”.
“It’s all BS. There is no such thing as a secret to success,” said Bouris in an interview on a Channel Nine Saturday morning breakfast show.
“There are no secrets other than work hard, be committed and having a purpose.”
This message may equally apply to those who attend <a href="/news">property investment seminars</a>, with ASIC currently clamping down on dodgy spruikers.
Usually the initial investment seminar is free - accompanied by a free lunch - but follow up one-on-one consultations come with a hefty financial investment requirement.
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No shortcuts to investment success: Mark Bouris

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Brisbane’s inner-city apartment market is having its best time in almost a decade.  
Two research reports confirm that sales in the March quarter were the highest since September 2004, boosted by the release of six new projects.  
Reports from Place Advisory and Colliers International tell similar stories and not only of a rising tide of buyers for CBD and near-city units.
Among the many messages hidden within these reports are these:-  
<ul>
<li>
More and more buyers are choosing apartments.
</li>
<li>
Small units are popular.
</li>
<li>
A market recovery is well under way in Brisbane.
</li>
<li>
Sales volumes rise first, and prices follow later.
</li>
<li>
Government grants to first-time buyers don’t work.
</li>
<li>
Brisbane has a much healthier unit market than does Melbourne.
</li>
</ul>
The report by Place Advisory’s Lachlan Walker records 625 off-the-plan sales in inner Brisbane in the March quarter – double the number in the December 2012 quarter, 40% up on the same quarter last year and the best result since the 2004 boom. The quarter’s sales of new units totalled $324 million.  
Walker says the results must be analysed with caution – and it would be helpful if more commentators and writers acknowledged that one good period doesn’t make a trend, rather than placing undue significance on a single research result (RP Data spreads misinformation by publishing monthly price data, usually before the month is even finished).  
“This substantial increase in sales could be a quarterly aberration, resulting from a significant number of new and successful project releases,” he says. “We do not foresee this level of transactions to be a consistent result moving forward – but rather an indicator that there is significant market depth and demand for apartments in Brisbane.”  
The results do, however, reflect the growing preference among buyers for apartments over houses. The market share of apartments nationwide has risen from 30% of new dwellings four years ago to almost 40% this year.  
They also suggest growing popularity of small apartments. The sales in the March quarter included 49% one-bedrooms apartments and 48% two-bedders. “Historically, consumers have always had an inherent preference for two-bedroom apartments,” Walker says. “However, sentiment and price has driven demand and sales for one-bedroom stock in recent years.”  
The most active price point is the $350,000 to $450,000 sector, representing 37% of all deals.  
This makes nonsense of banks’ traditional dislike for financing small unit purchases.  
The market is displaying the usual pattern in which sales volumes rise first and prices react later. While the number of unit sales is up markedly, the weighted average price ($518,000) is just 2% higher than a year ago. I would expect price rises to follow later in the year.  
Colliers’ report indicates there are about 2,300 units for sale in the Brisbane inner-city market, with another 3,000 or so to be released in the next 12 months. This suggests Brisbane is in a much healthier position than Melbourne where, according to analysts Charter Keck Cramer, around 19,000 new apartments are under construction in 180 inner-city projects, with another 16,000 being actively marketed.  
The Colliers report also questions the effectiveness of the state government grant for first-home buyers (but only for those buying a new dwelling). “The number of buyers from the first-home-buyer segment has declined in Queensland,” it says. “The number of first-home buyers approved for finance has been declining each month since October 2012, when the grant first came into effect.  
“In contrast, non-first home buyer loan approvals have increased 31%.”  
Terry Ryder is the founder of <a target="_blank" href="https://www.hotspotting.com.au/">hotspotting.com.au</a>
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terryryder-YECXbqmri2

Brisbane apartment market heats up as more buyers choose apartments over houses: Terry Ryder

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The Little Bourke Street, Melbourne building that accommodates Longrain Restaurant has been listed with $4.75 million expectations.
There's a 1022-square-metre building on the 511 square metre holding. It has face red brick with a gabled roof, terminated by an elegant parapet.
<a target="_blank" href="https://www.realcommercial.com.au/property-retail-vic-melbourne-500740583">The annual rent is $290,000.</a>
The 1900 building was once the Angliss &amp; Co stables for the butcher William Angliss. 
William Angliss opened his first butcher shop in North Carlton in 1886, before moving to larger premises in Bourke Street in 1892.
Angliss went on to establish a vast empire of pastoral stations and was a dominant force in the local meat and frozen meat export trade, which was centered on his Imperial Freezing Works at Footscray, opened in 1905.
The Bourke Street premises, which operated as a butchers shop, remained the headquarters for Angliss throughout his career.
Heritage Victoria notes in order to provide accommodation for horses and vehicles used in the delivery of meat to city customers, in 1900 Angliss built the substantial two-storied brick stables in Little Bourke Street, close to the rear of his Bourke Street premises.
"Carts and wagons were parked on the ground floor and horses ascended to the first floor via a ramp.
"The first floor had accommodation for about 45 horses. It was claimed afternoon sightseers gathered daily to watch the horses as they were unharnessed and safely mounted up the incline."
No other two storey examples where horses were stabled on the first floor are known to exist.
With leasing options, Longrain seems committed to remain until 2035.
Its previous owners include the Hoffman family and the Schleicher family.
CVA Property Consultants Ian Angelico auctions 40-46 Little Bourke Street June 19 onsite.
Longrain founding chef Martin Boetz is leaving the Sydney and Melbourne restaurants at the end of this month to work his farm on the Hawkesbury River, and his Cooks' Co-op produce business and set up a cooking school for professionals. The 10-hectare Sackville property cost $780,000 in 2011.
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jchancellor-FAypfDUnLy

Longrain restaurant landlords selling on Little Bourke Street, Melbourne

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Darwin has the highest median house price across the nation at $620,000, while Sydney has the highest median unit price, according to RP Data.
Based on private treaty sales, the median house price for Darwin was derived from 17 sales over the four weeks to June 2.
The median unit price in Sydney is $498,000 - derived from 1,023 sales over the past four weeks.
Sydney comes in second place with the most expensive median house price at $605,000, derived from 1,528 sales.
<img height="279" width="470" src="/images/stories/2013/06/rpdatacapitalsjune3one.gif" alt="rpdatacapitalsjune3one">
<img height="208" width="470" src="/images/stories/2013/06/rpdatacapitalsjune3two.gif" alt="rpdatacapitalsjune3two">
Private treaty sales represent around 85% of all dwelling sales across the country. The statistics are calculated across houses and units sold over the most recent four week period.
Records without a valid sale price have been excluded from the analysis and median prices are withheld for cities where fewer than ten sales have been recorded.
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po-LsXgBTHBmX

Darwin has highest private treaty median house price across the nation: RP Data

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Demand for industrial space is rising in Melbourne' east, according to property advisors Herron Todd White.
Melbourne's east comprises the industrial markets of Mount Waverley, Clayton, Croydon, Bayswater, Scoresby and Rowville.
Yields in the east range from 7.75% to 8.5% for prime industrial space and from 9% to 10% for secondary space.
Demand for space is static in other markets.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/06/chartoftheweekjune5one.gif"><img src="/images/stories/2013/06/chartoftheweekjune5onethumb.gif"></a>
Recent industrial sales in Melbourne's East include a factory and office building known as Unit 9 at 28 Ricketts Road, Mount Waverley sold privately by Crabtrees Real Estate for $1,005,000.
Sold with vacant possession the total building area measured 1006 square metres inclusive of 372 square metres of offices and a 688 square metres of factory space.
Overall, Herron Todd White reports that Melbourne is in a strong position to compete for occupiers of industrial property,
This is due to Melbourne's "long-term supply of developable industrial land available in an affordable price bracket."
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Increasing tenant demand for industrial property in Melbourne's east: Chart of the week

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Federation Centres  has entered into a conditional agreement to sell six regional shopping malls to fund manager Challenger for $602 million.
These assets are owned by Federation Centres and certain former Centro syndicates, with a gross value of $1.2 billion.
Federation Centres is the new restructured entity that emerged from the debt-laden Centro Retail Australia business in February.
The portfolio of assets consists of the regional shopping centres at Bankstown and Roselands in New South Wales, and the convenience centres at Toormina and Lennox, in New South Wales, Sunshine in Victoria and Karratha in Western Australia.
The sale was negotiated by Simon Rooney of Jones Lang LaSalle, who successfully negotiated the sale of GPTs sale of a half share in Erina Fair for $397.1 million in May and precedes a number of major transactions to be completed in the near term.
"As a result, total retail transaction volumes are expected to be strong in 2013 with approximately $3.0 billion being recorded year to date, and follows a record year for transaction activity in 2012 ($6.3 billion)," says Rooney. 
“Sovereign wealth funds and pension funds have been major participants in capital partnerships around the globe and are a deep source of liquidity. Demand from these large offshore investors seeking passive investments in core quality Australian retail assets has been the key driver behind many of these large transactions," he adds.
The overall Federation Centres- Challenger transaction equates to a passing yield of 7.42%.


FDC will remain as the manager of these centres and will be responsible for managing their redevelopment program.
Federation Centres has an established relationship with Challenger selling its syndicate-owned Surfers Paradise Centre in Queensland to <a target="_blank" href="https://www.propertyobserver.com.au/retail/challenger-acquires-centro-surfers-paradise-mall-for-%241625-million/2013012058885">Challenger for $162.5 million in January.</a>
“On completion, this transaction continues to deliver on our key objective of introducing select and like-minded strategic parties on a range of larger centres," says Federation Centres managing director and chief executive officer, Steven Sewell
"This facilitates reduced funding costs and supports the recently awarded Standard &amp; Poor’s A- investment grade credit rating for Federation Centre's senior secured bank debt.
"The co-ownership strategy provides Federation Centres with the liquidity and balance sheet flexibility for the future funding of our redevelopment and enhancement program of our portfolio of quality Australian shopping centres," he says.
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Federation Centres sells half stakes in six regional malls to Challenger for $602 million

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With rumours that Mirvac may be interested in a possible bid for Australand following the exit of GPT, A-REITS analyst Mark Wist provides answers to the key questions behind Australand's decision to sell and what this may mean for the listed property trust sector.
Why is Australand so motivated to sell the business? 
Australand is an A-REIT listed on the Australian Securities Exchange. It has a market capitalisation of just over $2.0 billion. Australand’s major security holder is the Singapore based property group, CapitaLand Limited, which owns approximately 59% of the issued capital. CapitaLand’s stated intention following a business review is to divest its holding in Australand which is a non-core asset.
What aspects of its business would appeal to investors?
Australand has a commercial office and industrial property portfolio of $2.3 billion. It is also possible that some capitalisation rate decreases will see values increase in this portfolio. Australand has a substantial residential development business with development land held on balance sheet mainly in Sydney and Melbourne with completed value estimated at $8 billion.  It also has an office and industrial property development business.
In December 2012, GPT announced an interest in acquiring the investment property portfolio and commercial and industrial business of Australand.
GPT had a particular interest in Australand’s industrial portfolio. An acquisition of a controlling stake in Australand would have given GPT the opportunity to bolster its own industrial portfolio with quality assets, some of which had value-adding potential.
In May, GPT announced that it was no longer pursuing the proposal.
Mirvac had also expressed interest in Australand, however withdrew from the bidding process earlier than GPT.
What would be the concerns for investors?
There are two major components of the business being an investment portfolio and a residential property development business.  The combination does not attract interest from a wide range of potential providers.  Asian investors do consider both activities.
Ultimately it seems that there were two stumbling blocks to a successful conclusion to a sale of CapitaLand’s stake to GPT. First was the price of the acquisition. GPT made it clear that there was a pricing expectation mismatch between it and the vendor. Second was that GPT had little interest in Australand’s residential development business or assets. GPT could not identify a partner to acquire that part of the business and Australand for its part was only considering selling its stake in one transaction without separating the businesses or assets in the portfolio.
What does the potential sale of Australand mean for the AREIT sector?
If Australand was acquired by, it would result in further consolidation among A-REITs. In April 2012 there were 53 A-REITs listed on the ASX. In April 2013 this number had fallen to 46 despite the market capitalisation of these A-REITs increasing from $81 billion to $100 billion.
If acquisition is by cash it would release capital for re-investment prospectively back into the sector. 
Are there likely to be other consolidations in the AREITs space?
A number of A-REITs currently have the balance sheet capacity and support to acquire other A-REITs. However, it is more likely that as the sector is now trading at a premium to net tangible assets, we will see private unlisted funds seeking listing on the ASX to take advantage of the liquidity benefits associated with listing.
Mark Wist is senior asset consultant at <a href="https://www.atchison.com.au/" title="Atchison Consultants" target="_blank" rel="nofollow">Atchison Consultants</a>.
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Australand's residential and commercial mix does not appeal to investors: Mark Wist

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Housing affordability improved by 0.5 percentage points in the first three months of the year with the proportion of income required to meet loan repayments decreasing to 29.9%.
It was the seventh successive quarterly improvement in housing affordability as measured by the Real Estate Institute of Australia (REIA) in partnership with Adelaide Bank.
A year ago, the proportion of income required to meet loan repayments decreasing to 32.7%.
Housing affordability woes peaked at a ratio of family income to average loan repayments of close to 40% in March 2007 just before the start of the Global Financial Crisis when the cash rate hit 7.25%.
<img src="/images/stories/2013/may23abelesauction/REIA_affordabiulity.jpg" width="470" height="290" alt="REIA_affordabiulity">
Source: REIA
Despite the continued incremental improvements in affordability over the past two years, first-home buyers as a proportion of the owner-occupier market dwindled to their lowest level since the June quarter of 2004.
First home buyers made up 14.5% of the owner-occupier market compared with 16.5% in the December quarter 2012, according to REIA figures.
“Affordability has been improving slightly now for seven consecutive quarters, with the proportion of income required at its lowest since the December quarter 2009 and compared to the same time last year, all states and territories saw improvements,” notes REIA president Peter Bushby.
"Investors are returning to the housing market with investment housing representing 36% of total lending in March 2013. Unfortunately this confidence is not shared by first home buyers with numbers plummeting since the First Home Buyer Boost was abolished," he says.
 
<hr class="system-pagebreak">
 Click to enlarge
<a href="/images/stories/2013/06/affordabilityjune5one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/06/affordabilityjune5onethumb.gif"></a>
Source: REIA
The REIA blames the decision by state and territory governments in NSW, Queensland, South Australia, Tasmania and <a href="https://www.propertyobserver.com.au/residential/act-lifts-first-home-owner-grant-to-%2412500-but-for-new-homes-only-from-september-1-fhog-fhb/2013060361890" target="_blank">most recently the ACT</a> to axe the $7,000 first home owner grant for the purchase of existing homes for FHB numbers falling sharply.
“The impact of the decisions by the state Governments is clear in the plummeting number of first home buyers. Despite cuts in the official interest rate by the RBA to levels not seen for decades,the proportion of first home buyers decreased to 14.5% in March 2013," said Bushby in a statement earlier this month.
Renting become slightly less affordable in the March quarter - declining from 23.9% of median weekly family income required to meet weekly rent for a three bedroom house to 24.4% - but is still more affordable than a year ago (24.7%).
The largest improvement in housing affordability was recorded in the ACT where the proportion of income needed to meet loan repayments dropped by 1.4 percentage points to 17.3% driven by weekly incomes rising by $10 to $2,992 while average monthly loan repayments fell by $161 to $2,249.
The second biggest improvement in affordability occurred in NSW with ratio of household income to monthly mortgage repayments improved from 36% to 34.5% - a year ago it was 37.8%.
However NSW, with its high median house prices, remains the least affordable state followed by South Australia (an improvement from 31.4% to 30.6%), Victoria (an improvement from 30.6% to 30.2% and Queensland (an improvement from 28.1% to 27.9%).
Western Australia (up from 22% to 22.6%) and Tasmania (up from 25.2% to 25.6%) where the only two state or territory markets where housing affordability worsened over the quarter.
REIA March quarter figures show the number of loans to first-home buyers in NSW fell 40.6% to 2,647.
“When compared to the figure recorded a year ago, that’s a 5 7.0% drop. This is the largest annual decline in the number of first home buyers’ commitments across the country,” says Bushby.
In Queensland, the number of loans to first-home buyers decreased 43.2% to 2,557 and this is the largest quarterly decline across the nation. When compared to the figure recorded last year, it’s a 49.2% drop.
“The proportion of first-home buyers in the number of owner-occupied housing finance commitments is now at 14.2% and remains persistently low compared to the long-run average proportion of 20.1%,” says Bushby.
Victoria recorded a drop in the number of loans to first home buyers over the quarter, down 15.4%  to 6,053 while South Australia recorded the nation’s only increase, up by 1.8%.
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ACT and NSW lead “slight” improvement in housing affordability in March quarter but FHBs stay away: REIA report

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They don’t use land like they used to.  
Last Saturday a large crowd turned out for the auction of a two-bedroom unit at <a href="https://www.realestate.com.au/property-apartment-vic-hawthorn-113751283" target="_blank">5/52-54 Grove Road, Hawthorn</a> (pictured below).
<img alt="armstrongjune5one" src="/images/stories/2013/06/armstrongjune5one.jpg" width="470" height="347">
After spirited bidding the property sold for $741,000 illustrating strength in this sector. However, when we compare this price with the wider market it soon becomes clear this was an extraordinary result.
The property was held for less than four years after being purchased in October 2009 for $585,000. Based on this purchase price it has been growing by almost 7% compounding each year.
I think this level of growth means the property has performed well as an investment but considering we experienced a slump in 2011 and 2012 the result seems to defy the market.
To put this into context the median value of apartments in Melbourne over the same time frame has grown from $410,000 to $451,000, a compound growth rate of less than 3%. The Grove Road property has more than doubled the growth rate of the wider market for apartments.
In addition it has also proved to be a better investment than houses with the median value growing by only 4.12% from $470,000 to 545,000.
The Grove Road property was built more than 50 years ago at a time when skilled labour was relatively cheap and developer did not have to cram as many apartments onto the block. The property sits on 1500sqm of land yet there are only seven apartments in the development.
If a vacant block of land this size was to come onto the market in this location it would sell for around $3 million. This means each apartment has a notional land value of around $450,000. The vast majority of what the buyer is paying for is the land and this will underpin the capital growth potential because land is an appreciating asset.
There is just no way a developer would do this today.  The aim of a developer is to build as many apartments as town planning will allow.
Take for example this development on <a href="https://www.realestate.com.au/property-apartment-vic-hawthorn-113563607" target="_blank">Riversdale Road, Hawthorn</a>.
<img alt="armstrongjune5two" src="/images/stories/2013/06/armstrongjune5two.jpg" width="470" height="328">
The block of land is a similar size at 1400sqm yet the developer has crammed on 31 apartments that are selling for a similar price to the Grove Road apartment. The notional land value attributed to each apartment in this example is around $100,000. This means the cost of land to the developer for each unit is only $100,000.
When an investor purchasers this property the vast majority of what they are paying for is the construction of the building and the developer's profit.
The notional land value attributed to each unit is a great guide to assist us with the prediction of likely future capital growth. While it does not give an ironclad guarantee of investment potential it should not be ignored.
Properties like Grove Road will continue to defy and out perform the wider market because they are such a unique product. It is just not feasible to produce this product anymore and as a result the supply will never ever grow. Demand on the other hand is only getting stronger and stronger.  
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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