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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 embattled residential building sector is forecast to recover strongly over the next three years, with the catalyst being low interest rates. 
However, the strong growth phase won’t extend to the non-residential building sector with only “modest growth forecast” while there will be a contraction for engineering construction as the mining investment boom slows and big resource projects are completed.
Masters Builders Australia (MBA) forecasts the value of residential building work done, in real terms, to grow from $46.2 billion in 2012-13 to $60.9 billion in 2015-16. 
Over this same time frame, dwelling starts are predicted to rise to 164,000 in 2013-14, 179,000 in 2014-15 and 183,000 in 2015-16 – more than a decade after dwelling starts peaked at around 175,000 in 2004. 
This follows a number of years of contractions with many high-profile building companies collapsing including Kell &amp; Rigby, St Hilliers Construction, Reed Construction, Baseline Constructions and <a href="https://www.propertyobserver.com.au/industry-news/nahas-construction-latest-aussie-home-builder-to-enter-administration/2012112057964" target="_blank">Nahas Construction</a>.
A NSW government inquiry into the sector last year found that <a href="https://www.propertyobserver.com.au/industry-news/one-in-three-nsw-company-collapses-are-building-firms-state-building-inquiry/2012080955940" target="_blank">one in three company collapses in the state were building companies</a>.
MBA chief economist Peter Jones says the forecasts indicate there is “light at end of a very long tunnel for the residential and commercial building sectors, but does not herald a return to boom era levels”. 
The building and construction industry group basis these bullish forecasts on the underlying assumption that low interest rates will work to “release significant pent up demand after a long period of under-building that occurred at the same time as Australia experienced strong population growth”. 
The forecasts have been developed by Master Builders in collaboration with Independent Economics. 
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/05/mbamay21one.gif"><img src="/images/stories/2013/05/mbamay21onethumb.gif"></a>
“The stronger performing states are forecast to be Queensland, New South Wales and Western Australia,” says Jones. 
“The key risks to the forecasts are frail consumer confidence, economic uncertainty, asset price volatility and ongoing softness in the labour market. 
“The improvement in the residential building outlook comes from a very low base and the challenge remains for policy makers to address supply side inefficiencies and impediments that have contributed to the nation’s growing housing shortfall,” he says. 
Non-residential building work done is predicted to decline further in real terms in 2012-13 followed by modest growth in the following years. 
Growth is expected to be driven by commercial and industrial building sectors, contrasting with weakness in social and institutional sectors and education related building. 
“For non-residential building, strongest performing states are forecast to be NSW, Queensland and Victoria, with industrial, retail and office building leading the way. 
“The key headwinds and risks are poor cash flows, low margins and tough lending criteria. Investor confidence also remains low reflecting current economic conditions,” Jones says. 
In the engineering construction sector, activity is forecast to increase 5.4% in real terms to $122.1 billion in 2012-13 before falling back 12% to over the following three years to a level of $108.0 billion. 
“After very strong growth, engineering Construction activity in the Northern Territory, Western Australia and Queensland are forecast to fall back, albeit remaining at extremely high levels in an historical context. Victoria and Tasmania look set to benefit from stronger infrastructure spending,” Jones said.
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lschlesinger-FZcF9M3vE6

Low interest rates to spur strong residential building recovery over next three years: MBA

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Marina Adelaide, South Australia’s only fully integrated marine precinct, has hit the market offering a rare opportunity to invest in the rapidly growing area of Largs North.

Situated just 17 kilometres from the Adelaide CBD, the marina covers 133,610 square metres with a further 31,663 square metres available for development.
<img src="/images/stories/2013/05/marinamay20two.jpg" width="470" height="317" alt="marinamay20two">

CBRE’s Ben Younger and Philip Rundle are in charge of the sales campaign.

Mr Rundle said Marina Adelaide represented a significant investment opportunity which would appeal to both interstate and offshore investors.
The leasehold offers buyers the option to purchase as either a whole or partial sale with the added opportunity to acquire up to a 50% equity share in Marina Adelaide Pty Ltd.
The state-of-the-art ISO 14001 certified marina boasts refueling facilities, extensive boat storage, shipyard facilities and boat ramps, as well as commercial, retail and industrial precincts.
<img src="/images/stories/2013/05/marinamay20one.jpg" width="470" height="215" alt="marinamay20one">

While state government body Renewal SA own the freehold, Marina Adelaide Pty Ltd have negotiated a one-off upfront sum for a leasehold term in the land for a 75-year term, meaning no annual rental payments are required for the entire 75-year period since 2007.
Younger said the property still has development opportunities available with current approvals for the development of dry stack facilities, boat storage, office, retail, cafe and service buildings.
With Adelaide Marina’s close proximity to the inner-harbour area of Port Adelaide, currently undergoing a major makeover in the $1.5 billion Newport Quays project, the area is expected to become home to nearly 4,000 new residents earmarking the marina precinct for significant future growth.
Expressions of interest close on May 23.
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gdwyer-vyxhMDDW5L

Marina Adelaide hits the market

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Some advisers recommend the PIE buying formula – P.I.E. being Population growth, Infrastructure and investment, and Employment opportunity and diversity.  
The theory is that a location with those three elements at work will deliver real estate growth. As a method of reducing principles down to a digestible and easily-understood formula, it’s a reasonable approach.  
But some base their investment strategies on the P only. They believe that following population growth is the key to successful property buying. That is not only simplistic, it’s dangerous.  
I often receive emails from investors questioning why certain high population growth areas don’t feature is my hotspotting reports. They’re bemused because someone has advised them to buy in the population boom locations.  
They're making the mistake of looking at only one side of the equation - demand. The other side of that equation is supply - and that's where the problem lies.  
Developers invade the high-population-growth places - and often build too much new product. No matter how high the population growth rate, it won’t create capital growth if developers generate an over-supply.
That’s why many of Australia’s leading population growth areas have some of the worst-performing property markets. You could almost argue that rampant growth in resident numbers is a signal for property buyers to stay away.
The Gold Coast is the most obvious example. It has been a national leader on population growth for 20 or more years, but is a habitual under-achiever on capital growth thanks to over-building by developers. It is currently showing glimmers of recovery, after five dreadful years, but I would hesitate to recommend it to investors because we can be confident developers will do it all over again, as they have many times in the past.  
Five years ago I was interested in the Wyndham and Melton municipalities in Melbourne, because they had many of the growth-generating factors I look for in a hotspot. After initially delivering good real estate performance, they declined as developers moved in and over-supplied those markets with house-and-land packages.  
Today, both those locations have poor capital growth rates, well below city averages. Over-building has meant vacancy rates have been 6% or 7% or higher for much of the past three years (although more recently vacancies have come down to more acceptable levels in both Melton and Wyndham).  
The same syndrome is now impacting a couple of Queensland’s boom cities. Both Gladstone and Mackay have sharply rising vacancies, despite their myriad growth factors, because developers have overshot again.  
Both places have strong futures, thanks to their links to the resources sector and their expanding export facilities, but right now investors need to be cautious and selective.  
The overall message for investors is that they need to look beyond population growth and ask deeper questions – including questions about vacancy factors and the amount of new housing supply in planning.    
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

Look beyond population growth to supply side criteria: Terry Ryder

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John Symond has delivered a bullish speech on the outlook for the housing market over the next few years forecasting "steady" price gains as one of the keynote speakers at the Australian Real Estate Conference (AREC) on the Gold Coast today.
He also inspired delegates – many of whom tweeted from the conference – of how he had worked as a kid in a fruit shop and then overcome near bankruptcy to establish the Aussie Home Loans business.
Titled ‘It all starts with a big dream’ the Aussie Home Loans founder said the next 12 months to two years would be a good time to be in the property market.
He said house prices had bottomed out and the market would turn the corner after the federal election in September - when more certainty returned to politics - with house prices rising at a steady rate rather than leaping ahead.
"If you want to pick a time to get into housing, you can't get a much better time than now," Symond told a huge industry gathering.
Highlights of his speech were tweeted by those in attendance, including Property Observer blogger Leanne Pilkington, general manager at Laing &amp; Simmons:
<img src="/images/stories/april23tivoli/leanne_pilkington_tweet.jpg" width="470" height="95" alt="leanne_pilkington_tweet">
Sunshine Coast real estate agent Simon Thomas, was also inspired tweeting the following along with a photo of John Symond at the conference:
<img src="/images/stories/april23tivoli/simon_thomas.jpg" width="470" height="89" alt="simon_thomas">
<img src="/images/stories/april23tivoli/john_symond.jpg" width="470" height="292" alt="john_symond">
Quest Real Estate was also buoyed by the speech, tweeting Symond’s positive outlook and post-election expectations:
<img src="/images/stories/april23tivoli/quest.jpg" width="470" height="153" alt="quest">
Symond told delegates interest rates were at their lowest on record, and could head even lower.
He said there was evidence that house prices were rising all across Australia.
He was particularly bullish about the outlook after the election.
"After the election, most Australians will feel they have a government that can make decisions in their own right and that will boost confidence,” said Symond, reported News Limited, co-sponsors of the conference.
"It is very difficult for any government to govern efficiently when they have to rely on splinter groups and a coalition of interests."
He encouraged first-home buyers to act on “market signals” and not to wait for further incentives from governments, highlighting that home loans were available at below 5%.
He said affordability was it its best in many years.
Symond quoted RP Data research showing the number of suburbs where it was more affordable to buy a home under $500,000 than rent had grown from 500 two years ago to 796.
But he highlighted that property was a long-term investment and not a “quick kill”.
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Next two years a good time to be in property with “steady” house price growth expected: John Symond

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Property prices are forecast to rise 5% nationally in 2013 moderating to 3.5% in 2014, according to Westpac senior economist Matthew Hassan.
He says the current recovery in Australia's housing markets has been "slow to form and despite a quickening in early 2013 remains uneven across segments and states".
"We expect more of the of the same going forward.
"Price expectations suggest current positive momentum is well-entrenched but ‘consumer caution’ and a reluctance on the part of buyers to stretch themselves financially will remain a major ongoing restraint.
"Concerns around job security remain high and although lower interest are easing pressures on existing borrowers and improving affordability for those looking to enter the market, the mining investment downturn and associated labour market weakness will continue to inhibit buyers," says Hassan.
He expects wide divergence in property market performance across capital cities "with a variety of state-specific forces at work". 
"Sydney and Perth are expected to lead the way initially but with activity likely to wane in the west as the mining downturn gathers momentum.
"'Supply' factors are expected to be become more of a drag in Melbourne, but are expected to diminish in Brisbane where rental markets have already tightened up rapidly.
"Dwelling construction will also be uneven with solid but unspectacular growth forecast nationally – an 8.9% over the two years to the end of 2014," he says.
"Sydney and Perth will continue to lead the way although the mining slowdown and a stretched starting point for affordability are expected to become more of a constraint in the west," he says.
"Despite the solid start to 2013, the Melbourne market will tend to under-perform, particularly as a large pipeline of dwellings currently under construction comes onto the market (including 20,000 units approved for inner Melbourne over the last 2yrs).
"Brisbane, which has been the weakest market over the last 3yrs, is expected to remain soft near term but improve a little in 2014.
He expects lower interest rates to take the pressure off Queensland's weakest sub-markets - the Gold Coast and Brisbane’s southern fringes.
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Uneven housing market recovery to slow down from 5% rise in 2013 to 3.5% in 2014 with Perth and Sydney strongest: Westpac's Matthew Hassan

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A Malaysian-investor has paid $6 million for a car park on Flinders Lane in the Melbourne CBD.
There were 14 separate offers to purchase lodged at the close of the expressions of interest campaign with the sales price well in excess of the vendor’s expectations.
The sale on a yield of 6.4% comes soon after the Victorian state government announced it would <a href="https://www.propertyobserver.com.au/victoria/melbourne-cbd-drivers-hit-with-parking-levy-increase/2013042960816" target="_blank">significantly expand and increase its levy on car parks in Melbourne’s CBD.</a>
The levy has increased 37% from $950 per year to $1300 per year and will now include short-term parking-bays for the first time.
The costs are expected to be passed on to car park users, equating to around $1 per day extra per car space.
The car park at  the base of the Katherine Square office building at 517-537 Flinders Lane comprises  106 bays on 99 individual titles and is managed by Wilson Parking on a lease term expiring in May 2014.
It brings in net income of around $385,667 per annum.
The sale price equates to $56,600 per car space.
The sale was negotiated by Clinton Baxter and Nick Peden from Savills, who said the property attracted "exceptionally strong interest from numerous local, interstate, and offshore investors, with many competitive offers being received".
Baxter said the 6.4% yield was a record for the Melbourne CBD.
The vendor was a local investor.
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Melbourne car park sells to Malaysian investor on record 6.4% yield

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GPT has confirmed the sale of its 50% interest in the Erina Fair shopping centre, on the NSW Central Coast, for $397.1 million.
Previous media reports had named the buyer as <a href="https://www.propertyobserver.com.au/retail/south-korean-pension-fund-set-to-acquire-gpt-s-half-of-erina-fair-mall-for-%24400-million/2013051561394" target="_blank">the National Pension Service of South Korea</a>.
GPT did not name the buyer saying only that it sold to a client of Lend Lease Investment Management, a Singapore-based division of the property development giant.
The sale was negotiated by Simon Rooney of Jones Lang LaSalle, who said the sale "reflects a current situation of deep, liquid capital markets - backed by swelling demand from various domestic wholesale and superannuation investors, together with offshore pension and sovereign wealth funds - as they continue to up-weight their exposure to core, direct real estate in Australia". 
"Since the start of 2011, these investors have acquired $5.7 billion worth of part interests in major retail assets at or above book value.
"A-REITs have been the primary driver on the sell side – as they implement the strategy of selling down part shares in major assets while retaining management and development control, in order to redeploy capital into their development pipelines and subsequently, drive the return on their equity invested," Rooney says.
Lend Lease Investment Management has a portfolio under management of around $13.2 billion comprising property assets across unlisted funds, joint ventures and separate mandates in Asia, Australia and Europe.
Australian Prime Property Fund – Retail, a Lend Lease unlisted wholesale fund, owns the remaining 50%, with the mall managed by Lend Lease. CEO and managing director Michael Cameron said GPT had capitalised on the strong interest from domestic and overseas investors in quality Australian property assets. “This solid demand has allowed GPT to realise the value of this asset and continue to progress its strategy to move to a more balanced portfolio weighting,” Mr Cameron said. “In the past year we have effectively executed this remixing strategy moving retail from 61% of the portfolio to 54%, inclusive of this latest transaction. We continue to investigate further opportunities for investment in Office and Logistics &amp; Business Parks,” he said. 
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GPT confirms sale of half stake in Erina Fair shopping centre to Asian interests for $397.1 million

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The Brisbane median house price decreased 1% to $515,000 over the March quarter, according to the latest figures from the Real Estate Institute of Queensland.
The median price was based on 1,867 sales over the three month period with owner occupiers and investors prevalent but first-home buyer numbers falling sharply.
The top performing suburbs were Norman Park, five kilometres east of the CBD and Stafford, six kilometres north of the CBD, with both recording house price gains of 15.8% over the quarter to medians of $770,000 and $498,000 respectively.
The highest number of sales was recorded in the outlying new suburb of Forest Lake being developed by Delfin, with 61 sales. House priced slipped 3.8% to $369,000.
The most expensive suburb was Ascot, with a median house price of $930,750 from 12 sales.
St. Lucia recorded a 28.8% decline over the quarter to a median of $830,000 from 11 sales. For the year St. Lucia sales are down a more modest 4.9%.
In other prestige suburbs, prices fell 7.4% in Paddington off 17 sales and by 4.6% in Bulimba off 21 sales to medians of $740,000 and $880,000 respectively.
In total 44 Brisbane suburbs underwent house price corrections over the quarter while 30 recorded gains.
There was a more pronounced decline in the greater Brisbane market which recorded a 2.3% fall to a median house price of $430,000 off 3,662 sales.
House prices were up 1.7% in Ipswich to $299,900, but fell 2.7% in Logan City to $321,000.
Moreton Bay recorded a 0.8% gain to $445,000 while house prices fell by 1.8% in Redland City to $445,000.
<img src="/images/stories/2013/05/brisbanemay20one.jpg" width="470" height="134" alt="brisbanemay20one">  The REIQ said the Brisbane housing market remained steady with 12 month figures showing a 1% gain for the year to March for Brisbane City median house prices and 0.9% gain for the greater Brisbane detached housing market.
According to the REIQ, it is owner-occupiers who are leading the way with activity levels up compared to last year.
The estimated numbers of investors in the market also continues to be steady with low vacancy rates likely to encourage more investment activity in the months ahead.
“Unfortunately, first home buyers continue to lag well below historical averages and they are about 50% fewer than the same period last year,” Kardash said.
“First-time buyers usually average about 18% of the market but are currently sitting around the 10% due to the removal of the First Home Owners Grant in mid-October last year.
This was replaced by the <a href="/news">$15,000 Great Start Grant </a>(previously called the first-home owner construction grant) in September last year, available for first-home buyers buying or building a new home valued under $750,000.
First-home buyer had until mid-October to finalise their purchases.
“The importance of first home buyers to the overall health of the property market cannot be under-estimated so we hope to again see some assistance for first-time buyers of established property in this year’s State Budget,” says Kardash.
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Brisbane house prices fall 1% in March quarter as first-home buyer participation dwindles to 10% of market: REIQ

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Quest Serviced Apartments has appointed a new chief executive officer, hired from within the company.
Zed Sanjana, the general manager of the company since 2011, will be the new CEO.
The role of CEO had formerly been filled by executive chairman Paul Constantinou since he founded the business 25 years ago. He will continue as executive chairman.
Constantinou says it was important to separate the two roles because of the rapid expansion of the business over the last decade.
“There comes a point in the life-cycle of every successful business when rapid growth means you must take stock and work out the best way for the business to move forward,” Constantinou says.
“This appointment will enable me to focus on the strategic direction and growth of the Quest Franchise Network, whilst Zed and his team oversee the day-to-day operational aspects of the business.
The business now has more than 150 properties across Australia, New Zealand and Fiji.
Sanjana says he was looking forward to a new challenge.
“The Quest brand is already one of the strongest amongst business travellers. My appointment now leaves Paul free to accelerate the company’s growth while I manage and balance the needs of our franchisees, employees and guests.”
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Quest appoints new CEO

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Melbourne is well known as the real estate auction capital of Australia – and possibly the world.
Year to date, over $4 billion homes have been sold via auction (compared to $2.9 billion for the same time last year), a number which would include properties sold ‘prior to’ and via a ‘passed in’ negotiation, all of which count towards the weekly clearance rate.
In the current atmosphere in which sentiment has improved, larger percentages are gaining enough competition to sell ‘under the hammer’ and this has certainly been so from an anecdotal perspective.
The auction process obviously thrives in an atmosphere where confidence predominates and most selling agents are well educated in the means of manipulation to inspire buyers to openly state their interest in front of a crowd of individuals on a Saturday morning.
If a couple of bidders are brave enough to commence the battle, others have their initial attraction to the property demonstrably ‘fed’ by the competition and join in – conversely, if no-one openly states an interest, the reverse can be the case, leaving potential buyers wondering ‘what’s wrong with the home?’
Each scenario – played out in the public arena – causes a roll-on effect across the market either boosting sentiment, or delaying the onset thereof; however, once confidence does take hold, the 'act now or miss out' frenzy is perpetuated, laying down the foundation for a typical boom bust cycle.
Auctions are marketed as a transparent way to sell real estate; however aside from the openness of the public event itself, the pre-sale process is anything but transparent.
Like a good retail sale, the key for the three week campaign preceding the auction is to get buyers through the home initially which in Melbourne, results in agents encouraging the vendor to withhold their reserve price to enable a “conservative” estimate of value – as either a verbal or published quote range – to glean as much buyer enquiry as possible.
In my own experience, I have seen these ‘conservative’ estimates as low as the nominal value the current vendor paid some six or so years ago – with a ‘+’ thrown in for good measure.
The idea is ‘sold’ to the vendor via explanation of the “buyer pyramid” – it works a little like step quoting – get the lower priced bidders to build momentum during the auction to fuel those bidding with ‘deeper pockets’ to step in at the end.
In reality, real expectation is often a good percentage above the quoted range with excuses such as “the vendor’s reserve can change” used to waylay future complaints.
Without the lower budget bidders, auctions can pull up short without the usual mania that has, in our boom eras of growth, significantly contributed in pushing prices to unsustainable levels.
In a market where auctions predominate, the price multiplier effect buoyed on through the physiological stimulant this method of selling promotes, results in prices gaining much stronger traction that would be possible in most private sale campaigns – something that has been <a target="_blank" href="https://www.sciencedirect.com/science/article/pii/S0749597804000925">well documented</a> in various scientific studies.
 
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Although other states have a larger percentage of private sales, the auction system, when used, is just as opaque. In Brisbane for example, it’s apparently <a target="_blank" href="https://matusikmissive.com.au/2013/05/15/auctions-and-why-the-agent-cant-answer-your-price-question/">‘the law’</a> to dodge any responsibility to give an accurate indication of vendor expectation - with an act that reportedly ‘limits’ what real estate agents are ‘allowed’ to disclose.
As if deliberately designed to confuse buyers – selling agents are ‘unable’ to indicate a likely selling range, any hint of a reserve, or an opinion of value.
I can see this methodology eking its way into Victoria if ever we get to the stage of national licensing, with many agents already using their own liberal interpretations of current published <a target="_blank" href="https://www.consumer.vic.gov.au/library/publications/businesses/estate-agents/guidelines-for-real-estate-salespeople-price-advertising-and-underquoting.pdf">‘guidelines’</a> – and whilst I’m sympathetic to the task an agent undertakes when selling a property, I hold the opinion that vendors – who foot the advertising bill - should take a greater responsibility and ensure published price ranges are updated to accurately reflect the range in which they are willing to negotiate.
I’ve commented previously that the “boom years” of capital growth in Australia’s property market – and in principle the inner and middle ring metropolitan areas of Melbourne (which sits at the top of the ‘boom’ chart see <a target="_blank" href="https://www.propertyobserver.com.au/trends/a-history-of-australian-property-values-in-charts-philip-soos/2013051361302?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=trends">here</a>) – have not been lead by population growth as such, rather speculation, ease of credit, and a general expectation from investors (as well as home buyers), that prices will continue to rise.
This is evident from the amount of investor owned stock in the inner and middle ring city suburbs.  These areas contain a larger percentage of units and townhouses for which well over 50%, and in some states over 70%, is rented and owned typically by ‘mum and dad’ baby boomers buoyed on by the policy of negative gearing.
As mentioned previously, the success of negative gearing relies on speculation of capital increases, ensuring supply and vacancy rates sit at a lower percentage than would be the case if we instead concentrated on strategies to increase the supply of affordable ‘quality’ accommodation – (a subject I’ve explored at length before) – and a policy which goes some way in encouraging the ‘head to head’ investor battles I witness weekly, which significantly inflate the value second hand stock on the suburban streets of Melbourne.
And it’s not all that easy to directly align other market variables such as the unemployment rate, wage growth, or even rising rental prices which many assume in theory, will push a greater number of first home buyers onto the ‘ladder’ - with large movements in property prices.  When there’s a rush to invest, it’s more to do with the gold rush spread of optimism that seems to spread like some infectious disease.
It certainly wasn’t the above general market indicators that inspired four bidders (all investors) at an auction I attended last Saturday for an un-renovated house quoted at ‘$700,000 +’ sell $100,000 above the reserve, which due to the rapid pace of bidding, wasn’t announced on the market until $850,000 – albeit, I suspect had the bidding not been quite as frenetic, the reserve would have been ‘called’ at a lower level.
It was evident from the body language portrayed that the remaining two bidders had pushed far past their limit – based on comparable data, the house itself would have struggled to pass a valuation at the purchase price – yet for future sellers in the surrounding streets, the amount paid will set a new ‘benchmark’ and overall vendor expectation will rise – so too for buyers, who will see it as a comparable sale for a similar property of choice and raise budgets accordingly.
The prices achieved in heated auction markets are unsustainable in the long run, and yet the one thing all bidders have in common when caught up in the momentum of an auction, irrationally stretching their budgets - is a speculative ‘hope’ that at some future date, the next generation will be prepared to pay ‘more’ for the home than they did - enabling them to gain a profit over and above both outlay and inflation.
All are assumptions which work whilst the majority hold the same view and fail dismally when the ‘bubble’ of positive perceptions pops under the pressure of the opposing view – which is never completely absent.
The boom and bust cycle is evoked by the market dynamics of consumer sentiment, as those feeling ‘good’ borrow the ‘most’ possible to purchase with ‘positive’ thoughts in mind about rising prices, whilst the opposite reaction predominates when people avoid buying under the general perception that prices are going to keep falling – is something we were all witness to following the ‘peak’ of 2010 during which transaction levels were back to numbers not evidenced since the late 1990s despite other relatively good market indicators (low unemployment and the comforting ‘myth’ of a surplus – not to mention falling interest rates etc.)
 
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For this reason, the real estate industry as a whole makes strenuous endeavours to maintain the perception that prices always rise – or if prices are falling, it’s simply part of the ‘market cycle’ until they start on their upward profit making curve once again.
And they are not the only industry to do so. A vast amount of personal debt is tied up in the property market – not to mention the many retail offshoots that also benefit from rising property prices. Should there ever be a significant downturn – the economy would inevitably suffer as a result.
Therefore, if price rises in our major capital city markets have been primarily inflated through speculative investment, the positive mantra must be maintained to and at the expense of future generations who are going to find it increasingly hard to purchase.
I’ve listened to many an angry agent throw their hands up in pure exasperation at articles produced in the real estate section of The AGE (as one example,) openly remonstrating how any downbeat ‘vibes’ are directly responsible for declines in property prices. Funnily enough, they never complain when the reverse is the case.
And in the USA, where negative equity has affected the larger proportion of home owners, it’s been clearly demonstrated that even occupiers who are employed and own outright, and should arguably be unaffected by a loss in the capital value of their property, resist investing in the general upkeep of their home when values are dropping, spending around <a target="_blank" href="https://insight.kellogg.northwestern.edu/article/housings_albatross/">$200 less on maintenance and improvements</a> per quarter – favouring instead to buy only those items they can ‘take with them’ such as cars and furniture.
The concept that housing is the ‘best investment’ a person can make has been promoted widely throughout the developed world. In the years of boom growth, during which values rose in excess of 200 per cent, the total amount of money banks ‘lent’ into existence through the gradual easing of restrictions surrounding the mortgage lending market, was the core driver of increasing values, aptly benefited those who entered at the start of the lending boom, above those who are now tapping into the bank of ‘mum and dad’ or relying on joint ownership, grants, and a low interest rate environment to push their foot through the door.
The recovery we’re currently seeing is largely lead by the investment sector – with an equal perception that values will maintain their upward trajectory. Albeit, to do so, requires a new generation of bidders to buy into the same speculative mantra – more debt requiring more activity just to maintain the amount of money we have in circulation. Without it, we lose our jobs and our ability to service this growing supply of credit.
Whilst I’m a great advocate for home ownership – particularly for those establishing a family – and recognise the need for investment in the property sector with a long term mindset as part of a diversified portfolio - it’s clear we need to pour a far greater proportion of resources into structuring a plan for effective development, infrastructure being the key.
Albeit, with an historically reducing pool of first-home buyers, an increasing proportion of ‘interest only’ investors, and an ageing population which will provoke the big Australia advocates to hail ‘populate or perish’ - a bit like a doctor telling his patients they will never die, the real estate industry will maintain the myth that prices always rise.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
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