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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Consumers in WA are being warned about free property investment seminars being offered by east coast “property investment spruikers” a day after ASIC banned a Melbourne-based property investment adviser, also calling him a “spruiker”.
With the ominous heading of “Beware property investment spruikers”, WA’s department of consumer protection is urging potential investors “who may be lured into attending so-called ‘free’ property investment and wealth creation seminars to carefully consider what’s being offered before signing any contracts”.
It follows officers from consumer protection attending a number of these seminars to gauge the content and message being presented to potential investors.
WA commissioner for consumer protection Anne Driscoll said seminar attendees were subject to “high pressure sales tactics that promote coaching and mentoring programs costing between three and ten thousand dollars".
East coast property investment spruikers most likely see WA, with its cashed-up beneficiaries of the money boom, as easy targets for their investment programs.
The WA warning comes a day after ASIC banned<a href="https://www.propertyobserver.com.au/industry-news/property-investment-smsf-spruiker-matthew-george-director-of-money-choice-banned-by-asic-for-multiple-compliance-failures/2013051561378?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank"> Melbourne-based property investment adviser Matthew George, director of Money Choice</a> and labelled him a “spruiker” as part of its crackdown on advice in relation to self-managed super fund property investments.
Last month a letter obtained by the Australian Financial Review revealed that <a href="/news">four Melbourne businesses running seminars on investing in real estate through self-managed super fund</a>s are being investigated by ASIC over the potentially misleading nature of flyers, advertisements and online ads promoting these seminars.
Consumer protection officers have attended three separate seminars recently and report that all followed a similar formula:
<ul>
<li>The seminars were free to attend but were mainly a forum to sell expensive mentoring and coaching programs</li>
<li>Downplay the risks and costs involved in property investment</li>
<li>Claim to offer the secrets to financial success</li>
<li>Offer hints or teasers at the seminars, but participants had to pay for programs to get any further information</li>
<li>“Special” rates for the programs were offered if attendees signed up on the day</li>
</ul>
“The advertising of these seminars give the impression that those who attend simply receive free information about how to secure their financial future but, in fact, they are subjected to high pressure sales tactics that promote coaching and mentoring programs costing between three and ten thousand dollars ,” says Driscoll.
“The presentations highlighted the benefits of investing while downgrading the risks involved in securing the financial future of participants. They also appear to exaggerate the potential gains from property and other investments by following the promoter’s programs.
“The seminars appear to be just a clever sales tactic to get people into a room for many hours with the hope that they will sign up to expensive training courses, but very little information is offered for free. The question to ask is what would be the benefit to a promoter of holding a ‘free’ seminar if they didn’t sell something at the event.
“We believe some of the courses and programs on offer are just the next stage to get investors to make large financial investments that will be of benefit to the promoter, or simply a way to sell their coaching and mentoring packages.”
“I am concerned that the practice of offering special discounts to sign up on the day is designed to prevent the participants from having time to think carefully about their decisions and getting some independent professional advice,” the Commissioner said.
“We warn attendees to resist the pressure to sign any contracts or pay any fees when attending these events, without first getting proper independent advice from financial advisers and property investment professionals. Consumers should be wary about any ‘get rich quick’ claims being made.
“Consumer Protection has reviewed advertising material and seminar content and is preparing to issue substantiation notices to ensure promoters are able to justify the claims and representations that they make to members of the public.
“Promoters will be asked to justify their claims including the financial resources investors need to buy a property, the potential profit they could make within short periods of time and the substance of the course content.
“In certain instances, people may have rights to a 10 day cooling off period if they signed up for something they were not aware would be offered to them when agreeing to attend the seminar. If people believe they have been pressured into buying something under those circumstances, they can contact Consumer Protection to have their cases reviewed and to ascertain their rights.”
WA consumers with inquiries, concerns or complaints about property investment seminars can contact Consumer Protection on 1300 30 40 54 or email: <a href="mailto:consumer@commerce.wa.gov.au">consumer@commerce.wa.gov.au</a>.
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lschlesinger-FZcF9M3vE6

WA government warns consumers about east coast “property investment spruikers"

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The national residential vacancy rate lifted from 1.9% to 2% in April with all capital cities except for Darwin recording a rise in their vacancy rates, the latest SQM Research figures show. 
SQM Research managing director Louis Christopher says this is the first time that national vacancies have reached the 2% mark excluding seasonal months (December) since September 2009, “suggesting that the rental crisis is truly beginning to ease”. 
“While the rental market is unlikely to blow out to an oversupply situation in this cycle, we do believe an easing of what has been an extended period of tight conditions for tenants, will now come into existence. 
“It means rent rises which have been running at above inflation for the past five years now, will now slowdown to be more in line with CPI and indeed this is already occurring according to our newly released weekly rents index," he says. 
SQM Research records there were 56,973 properties available for rent across the eight capital cities in April compared with 52,931 in March and 50,884 in April last year. 
The vacancy rate lifted by 0.2 percentage points in Sydney from 1.5% to 1.7% with 9,631 rental properties available over April while Melbourne remains the most favourable capital city market for tenants with its vacancy rate rising from 2.6% to 2.7% with 11,609 properties for rent.
Click to enlarge
<a href="/images/stories/2013/05/sqmmay16one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/05/sqmmay16onethumb.gif"></a>
Key points:
<ul>
<li>Darwin has recorded the tightest vacancy rate of the capital cities, revealing a vacancy rate of 1.1% and a total of 272 vacancies.</li>
<li>Canberra has recorded the highest yearly increase in vacancies. Climbing 0.7% to 1.5% since the corresponding period of the previous year (April 2012) and coming to a total of 753 vacancies.</li>
<li>Hobart has recorded the largest yearly decrease in vacancies, falling by 0.3% to 2.5% since the corresponding period of the previous year (April 2012) and coming to a total of 699 vacancies.</li>
<li>Hobart has however, recorded the highest monthly increase in vacancies, rising by 0.5% during April 2013.</li>
</ul>
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.  
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Rental crisis easing as national residential vacancy rate rises to 2%: SQM

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The federal government has called on state governments to introduce stamp duty concessions for seniors to help encourage them to downsize.
Federal ministers Jenny Macklin and Mark Butler released a joint statement announcing the <a target="_blank" href="https://www.propertyobserver.com.au/demographics/federal-budget-s-trial-program-encouraging-downsizing-to-smaller-homes-without-affecting-aged-pensions/2013051461357?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=latestnews">$112 million pilot scheme</a> to encourage seniors to downsize and calling for stamp duty concessions to make it work.
“We would also like to see state governments move to assist seniors who wish to downsize by introducing or improving concessions on stamp duty, and therefore removing a further impediment to downsizing,” they said.
The federal budget announcement on Tuesday included a scheme to make it easier for pensioners to downsize their family home by excluding any profits from means-testing for the pension.
Those eligible will be able to invest up to 80% of the net gain from downsizing, up to a limit of $200,000, in a special account which is excluded from means testing for 10 years.
The scheme has been cautiously welcomed by representative bodies but they say that stamp duty remains the biggest impediment to downsizing for seniors.
Groups say stamp duty costs are prohibitively expensive and make downsizing an expensive choice even with this scheme.
The REIA’s Peter Bushby says the scheme is a positive move but it doesn’t go far enough.
“It is most unfortunate that stamp duties as an impediment to downsizing have again been ignored,” Bushby said.
“The Budget has called on the jurisdictions to reform inefficient state taxes including stamp duty. This pays lip service to the need for reform and ignores the leadership role that the Commonwealth should be taking.”
<a target="_blank" href="https://www.propertyobserver.com.au/economy/act-to-lead-federal-budget-downsizing-seniors-home-scheme-given-stamp-duty-concession-availability/2013051561368">ACT is the principal leader in stamp duty concessions for seniors</a>.
Groups are also <a target="_blank" href="https://www.propertyobserver.com.au/demographics/seniors-group-say-swan-s-seniors-house-downsizing-pilot-unlikely-to-work/2013051461362">criticising the stringent restrictions on the budget</a>.
The scheme is only available to people who have owned their home for 25 years or longer.
Mary Wood, executive director of the Retirement Living Council, says “25 years is overly onerous and don’t reflect the needs and circumstances of most aged pensioners”.
Michael O’Neill, chief executive of Nation Seniors Australia, says the special account is restrictive and means pensioners won’t be able to use the money for daily expenses.
The three year trial will commence on July 1, 2014 where senior Australian homeowners who downsize when buying another home will have <big>an option to invest</big> at least 80 per cent of surplus funds remaining (up to a cap of $200,000) <big>in a special account</big>. The funds invested in the account would be exempt from the age pension means test for up to 10 years. The scheme would only be available to Australians over age pension age who have owned their home for at least 25 years.
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awalsh-7Ub9EypybQ

Federal government calls for state government stamp duty concessions for downsizing seniors

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Fast-expanding serviced apartment group Quest has listed its Sydney Olympic Park apartment hotel for sale seeking around $39 million.
The group is looking to free up cash to fund the development of more than a dozen new serviced apartment projects and tap into growing investor demand for Australian hotels and serviced apartments, particurlarly from Asian investors.
Total hotel sale activity for 2012 was in excess of $1.25 billion, an increase of 30% on the total value for 2011 and the strongest since 2007, according to Colliers International.
Asian-based funds accounted for more than 70% of all sales, with investors from Malaysia, Hong Kong and Singapore the most prevalent.
The largest hotel transaction to occur so far in 2013 is the sale of the 4.5 star Holiday Inn on Flinders in Melbourne, which sold to New Zealand based Priscilla David Ltd for $50 million. Going against the recent trend,  the hotel was sold by an Asian investor, Singapore-listed Lasseters International Holdings. 
Last year, the largest single hotel property sale was the purchase of the <a href="https://www.propertyobserver.com.au/leisure/sydney-shangri-la-hotel-sells-to-hong-kong-shangri-la-asia-group-for-record-%24352-million/2012062555249">Shangri-La Hotel in Sydney for $330 million </a>by Hong Kong based Shangri-La from the Government of Singapore Investment Corporation.
Should the sale of the Sydney Olympic Park hotel prove successful, Quest will look to sell a further $170 million worth of apartment hotels to fund $220 million of new Quest projects.
In February, Quest announced plans to build <a href="https://www.propertyobserver.com.au/commercial/quest-to-build-10-new-serviced-apartments-buildings-in-nsw-over-next-two-years/2013020659191">ten new apartment buildings in NSW by 2014</a> in addition to three new properties that will open in Queensland, one in outer Melbourne, one in regional Victoria and another in the Adelaide CBD this year.
The group currently has over 150 serviced apartment properties in Australia, New Zealand and Fiji, located in CBDs suburban and regional areas.
The Sydney Olympic Park property, featuring 140 studio, one, two and three-bedroom apartments, each with kitchen and laundry facilities as well as a café, gym, conference room and basement car park.
It is being sold by Mark Durran and Peter Harper of Jones Lang LaSalle.
It opened in October last year, built at a cost of $30 million with the aim of tapping into the growing Olympic Park business hub, which attracts around 10,000 employees a day.
The newness of the building means it is being offered “with substantial depreciation benefits”.
Meriton paid a <a target="_blank" href="https://www.meriton.com.au/blog/meriton-buys-olympic-park-site/">reported $22 million plus to buy a 15,000 square metre</a> site with plans for 300 apartments in Sydney’s Olympic Park in February this year.
Quest at Sydney Olympic Park is the only serviced apartment in the area.
Quest has a long-term lease over the property.
Earlier this month, Quest said it would target the growing number of extended-stay business travellers in Queensland, with five new properties across the state to open in the next 12 months.
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Quest lists Sydney Olympic Park serviced apartments as appetite for Australian hotels rises

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GPT looks to have found a buyer for its half share in the Erina Fair shopping centre on the Central Coast.
National Pension Service of South Korea has been named by both The Australian and Australian Financial Review as the likely buyer, though this has not yet been confirmed by ASX-listed GPT.
The shopping centre and commercial property landlord and manager was seek around $400 million for its half share in the 113,700-square-metre centre, which was valued at $392.9 million as of June last year and is the largest mall on the Central Coast.
The cash injection might help fund a higher offer for Australand – with negotiations between <a target="_blank" href="/news">Australand and GPT set to resume</a>.
GPT co-owns the mall with Lend Lease’s Australian Prime Property Fund Retail (APPRF). Lend Lease is the manager of the mall.
The sale is being handled by Simon Rooney of Jones Lang LaSalle.
It paid in excess of $80 million to acquire its half share of the mall in June 1992 from the Capita Statutory Fund and has been refurbished twice – in 2003 and 2009.
It reportedly put up its half-share for sale in February, though it has not publicly stated its intention to sell the mall.
However, in June last year, GPT revealed plans to “reweight the retail portfolio to 50% and increase the weighting in office and logistics &amp; business parks to 35% and 15% respectively".
GPT sold stakes in two Brisbane Homemaker centres – bulky good stores – at Jindalee and Aspley in January for $91.7 million and has also sold half-stakes in malls in Canberra and Darwin.
The Korean pension fund investment is part of a wave Asian institutions buying up Australian malls, hotels and office spaces, including <a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/singapore-s-bright-ruby-seeks-out-more-sydney-office-acquistions/2013022059457">Singapore-based investment house Bright Ruby</a> and Chinese conglomerate HNA Group, which paid $117 million for 1 York Street from Colonial First State in 2011 in the Sydney CBD.
Recent smaller deals include a Gold Coast-based Singaporean investor buying the Harbour Town shopping centre at Biggera Waters for $10.3m in a deal negotiated by Colliers International.
In its latest retail market update, Jones Lang LaSalle’s head of retail Tony Doherty painted a mixed picture for the sector.
“While there has been a modest recovery in underlying retail spending, and some reasonably positive signs for the short term outlook, market rents continue to remain under downward pressure,” he said.
He also highlighted a growing trend of capital partnering to unlock funds for future development following Coles and property superannuation fund ISPT announced a joint venture transaction, involving the sale of a 75%t interest in an initial portfolio of 19 Coles-owned shopping centres across Australia valued at $532 million, delivering proceeds to Wesfarmers of approximately $400 million.
The portfolio included 18 neighbourhood shopping centres and one sub-regional.
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South Korean pension fund set to acquire GPT's half of Erina Fair mall for $400 million

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Today I’d like to talk about asset bubbles, but first a little about collectors’ items.
Back in 1986, a company called Pannini released an amazingly popular sticker collection book by the name of Football ’86.  
The idea was that for a few pence (ahh, inflation) youngsters could buy a packet of stickers bearing the photos of soccer players from all the major British teams and the respective trophies for which they competed. The goal, of course, was to fill the entire book and show off proudly to your mates.
Cleverly, Pannini often gave away the actual books for free in order that eager kids then felt compelled to buy the stickers. It worked a treat!
Whether or not it was true, there were always rumours that Pannini printed fewer stickers of certain players, and these elusive few became hugely sought after.  A few stickers were made in a special silver colour, such as the ‘FA Cup’, and these also became must-have stickers.
After a while the craze passed, strangely to be replaced by ‘spinners’, which was how the ever-creative Coca-Cola company cleverly re-branded one of the simplest of all toys, the yo-yo.
If you still own a completed Football 86 book in mint condition it would retain some value (£40) as a collectors item, but the market today has once again become relatively small.  
Tulip mania
The search for Pannini FA Cup stickers paled into insignificance when compared to what was perhaps the first ever great economic bubble, the Dutch tulip mania.
The tulip mania peaked in 1637, when the price of a single tulip had become as expensive as ten times an annual skilled salary!
While it may seem ridiculous in retrospect, at the time landowners were prepared to offer many acres of land in exchange for the in-demand item: the humble tulip. Such manias tend to be characterised by wild price volatility and hugely irrational exuberance.  
Bitcoin bubble
The latest craze of the last four years or so has been the ‘bitcoin’, a virtual currency which owners can store in electronic ‘wallets’. Confusing? Yes, it is a little, although this article has a game stab at explaining the concept. Back in February, bitcoins were trading for only $20, but since then…
<img width="470" src="https://1.bp.blogspot.com/-CVqRg-kqfNQ/UWjfdXx3rGI/AAAAAAAAJC8/ATcA-TyD4_c/s1600/bitcoin.jpg">
Since this chart was produced, over the last weeks, bitcoin prices have been all over the place. From a peak of well over US $200, the price quickly swung to a low of just $105, yet by Wednesday the price had rebounded to $175 before plummeting again to $120 on Thursday.
The extreme volatility caused one major exchange to call a 12 hour halt to trading and has caused skeptics to question whether an item with such wild swings in prices can even be referred to as a “currency” at all.
The total supply of bitcoins in circulation today is said to be worth around $1.3 billion. Where that figure will be in 6-12 months time is anybody’s guess.  
The end of the gold standard
The problem with a virtual currency is that its value only holds up while those trading it hold a faith in its enduring value.
One of the greatest challenges facing us as individuals today is that our actual currency – our dollars and cents – are in a similarly precarious position. Since money is no longer backed by the gold standard, over time there is a risk that the value of cash diminishes materially.
History has shown us that over time, our currency becomes severely devalued as its worth is destroyed by the ‘silent thief’ inflation.
This is no accident, for the <a href="https://rba.gov.au/" target="_blank">RBA</a> in Australia has a targeted range of inflation of 2-3%: it is actually the policy to devalue our currency over time.
Confusingly, this presents us with a dilemma, and Ben Bernanke in the US highlighted how we often spend more time thinking of where to put our money (to avoid its value being inflated away) than we do thinking of how to put our money to productive use.  
What to do? Assets of enduring value
With the gold price having been hammered by 23% since September 2011 and the great gold price bubble of the last 12 years finally appearing ready to deflate, investors are finding a need to look elsewhere.
The reason holding shares in the industrials index can be a smart idea is that profitable companies will always have value.
Every day people will up and eat their cornflakes, and as an owner of shares in all of Australia’s major food companies, you can breathe a great sigh of relief.
Others turn to <a href="https://propertyupdate.com.au/" target="_blank">residential property</a> as another example of a ‘tangible asset’ in which to store their wealth. It is certainly a proven investment strategy, but I’ll add one caveat: real estate, just like bitcoins and tulips, is only worth what someone else is prepared to pay for it. Therefore, you should only own property where there is a huge demand and a growing population.
In recent years, some groups have tried to organise a “homebuyers strike” in protest against house prices being expensive in the major capital cities (at least, I assume they refer to those capital cities, because elsewhere in Australia, property prices can often be reasonably cheap).  
The logic is flawed…
One might as well try to organise a strike on breathing.
People will always need somewhere to live close to employment and city centres, and as the population booms, so does the demand for quality property.
Surely the future for Australia’s housing affordability should be focussed on transport and infrastructure so that we can use the vast size of the country more effectively as the population looks set to increase from 23 million to a staggering 40 million by 2050.
But while we continue to obsess over how we can shoehorn millions more of us into a handful of popular beachside and inner-city suburbs, prices will continue only to move in one direction.
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/" rel="nofollow">Get a Financial Grip – a simple plan for financial fr</a><a target="_blank" href="https://petewargent.blogspot.com.au/" rel="nofollow">eedom.</a>
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Real estate is only worth what someone else will pay for it: Pete Wargent

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It’s amazing how a significant national decision or event can bring investor decision-making to a dead stop.
My experience of seven years with a property investment website is that any interest rate decision, whether up or down, causes a temporary shutdown of normal business.
A federal budget has the same effect. So too does an election.
So there was a perceptible pause when last week’s interest rate change was following a week later by Wayne Swan’s budget.  
None of these things should have that impact but experience shows that they do – not because the reaction is realistic but because the perception exists and perceptions matter.  
When Julia Gillard gave unprecedented warning earlier this year of the impending federal election – a case of dead woman walking if ever I’ve seen it – the speculation began instantly about how it would cause the recovery in property markets to stall.  
So the Hotspotting team did some digging and asked a range of people who do real research, rather than indulge kneejerk speculation, what they had found.  
Professor Jakob Madsen of Monash University said he had “searched for evidence that elections affect the housing market but found nothing”. Michael Matusik of Matusik Property Insights said there was no historical evidence that election campaigns impacted on housing markets. And Louis Christopher of SQM Research said: "The only quantifiable impact of a federal election occurs on the actual day of the election."
Yet economists and other attention seekers continue to babble about markets slowing down because an election is looming.  
Any change in interest rates, whether up or down, makes consumers stop to reconsider their plans while they ponder what’s behind the change.  
Changes in interest rates should be irrelevant to property investors. In the past 20 years we’ve had 52 changes in the official cash rate, including 25 reductions and 27 increases. We can be sure that the next 20 years will have a similar pattern, with many changes in concert with movements in the economy, inflation and world events.  
Yet people contemplating a mortgage that will span the next 20 to 30 years delay decisions to await the next Reserve Bank meeting.  
What these kinds of reactions tell us is that very few people have anything resembling a long-term plan. No one should approach property investment without goals and strategies for achieving them but, in my experience with investors, very few have a coherent game plan.  
The sensible minority who have their plan of attack sorted are unlikely to be swayed by RBA meetings or political shenanigans or speeches by the federal treasurer.  
Anyone with a strategy, a belief in the future of Australia and a devotion to research would be just getting on with business.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank" rel="nofollow">hotspotting.com.au</a>
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Sensible investors are unlikely to be swayed by RBA meetings or political shenanigans: Terry Ryder

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Melbourne was the only capital city in RP Data's combined five capitals index to see a rise in home values in the week to May 12.
Melbourne also leads the index with a 3.1% year-to-date rise, although Sydney and Perth lead the index in terms of annual change, with 5.5% and 5% rises respectively. 
<img alt="rpdatavaluesmay13one" height="258" width="470" src="/images/stories/2013/05/rpdatavaluesmay13one.gif">
<img alt="rpdatavaluesmay13two" height="187" width="470" src="/images/stories/2013/05/rpdatavaluesmay13two.gif">
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Melbourne moves mildly ahead as capital city home values tread water in early May: RP Data

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The Melbourne CBD's last remaining heritage horse stables property has been sold to a Melbourne-based property developer for $8.5 million with plans for a $100 million apartment project.
The narrow 36-40 LaTrobe Street site, measuring 569 square metres, is the former premises of the Burton Livery and Bait Stables built in 1890, but more recently modified as offices, though still retaining its Victorian-era facade.
The site has a permit for an Elenberg Fraser-designed 35-level tower featuring 243 apartments (pictured below).
<img src="/images/stories/2013/05/latrobemay16one.jpg" width="400" height="828" alt="latrobemay16one">
The sale was negotiated by Fitzroys agents Charles Emmett and Rob Harrington in conjunction with Daniel Wolman and Matt Stagg from Colliers International.
The sale price reflected a sales rate of $8,500 per square metre.
The sale continues a recent trend of strong East End sale prices over the past month such as the former Cancer Council site (circa $16m) and Glass headquarters at 50 LaTrobe St (circa $4.6m).
A further three prime development sites in the Melbourne CBD have been listed for sale as part of a $76 million portfolio divestment by Melbourne private investor Jimmy Goh through Colliers International’s John Marasco and Matthew Stagg, in conjunction with CBRE’s Mark Wizel and Josh Rutman.
The prized asset is expected to be the 3,197 square metre LaTrobe Street site comprising a 689-bay 10 storey commercial car park operated by Wilson Parking directly opposite Melbourne Central, the CBD’s largest shopping centre.
There are two ground floor retail tenancies fronting LaTrobe Street and three fronting Little LaTrobe Street, with a combined net lettable area of 852 square metres.
It is expected to sell for in excess of $40 million.
“This property has substantial development upside. It has the potential to accommodate several major high-rise buildings as well as providing enormous scope for multi-level retail tenancies.  It will provide the successful buyer with an opportunity to create the Melbourne CBD’s next landmark building,” says Wizel.
“The East End of the CBD has proven to be a very popular precinct with residential apartment developers such as Chip Eng Seng who have recently sold out at 33M and PDG Corporation who are close to completing Abode,” said co-selling agent Daniel Wolman.
Recent sales in Melbourne’s ‘East End’ include the former Cancer Council site (circa $16m) and Glass headquarters at 50 LaTrobe Street (circa $4.6m).
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Heritage Melbourne office property and former CBD horse stables sells to local developer for $8.5 million

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The 2013 federal budget has seen a big shift in government policy away from a focus on returning the budget to surplus to send “a strong message of confidence” (quote from last year’s budget) to focussing on “a strong economy”.
The surplus projection is still there, but thanks to a huge revenue shortfall it’s been pushed out three years to 2015-16 and progress towards it will stall for the year ahead.
While there will no doubt be lots of interest in the individual budget measures, the surplus - or its lack - is the key issue.
Key measures 
As is well known, thanks largely to a circa $16 billion revenue shortfall and a spending blowout, last year’s budget projection for a $1.5 billion surplus this financial year has not been achieved with the government now projecting it will be in deficit to the tune of $19 billion.
And with the revenue shortfall affecting the starting point for future years the government now expects that a surplus won’t be achieved till 2015-16. However, to achieve this it has still had to announce savings, albeit they don’t kick in till 2014-15.
<img alt="olivermay15one1" height="305" width="470" src="/images/stories/2013/05/olivermay15one1.jpg">
The revenue shortfall mainly reflects lower company tax collections reflecting the combination of lower commodity prices, the strong $A and apparently various corporate tax loopholes. To plug the gap and push the budget back into surplus in the next few years the government has announced net savings of $28 billion over five years, but not commencing till 2014-15. Some of the savings were pre announced or well flagged and include:
<ul>
<li>
Various measures to tighten corporate tax loopholes.
</li>
<li>
The cancellation of a rise in family benefit payments and replacement of the baby bonus.
</li>
<li>
Postponing personal tax cuts that were due in 2015 as the carbon price assumption has been lowered.
</li>
<li>
An extension of monthly income tax instalments to large taxpayers.
</li>
<li>
An increase in the Medicare levy to fund DisabilityCare.
</li>
<li>
Superannuation changes as already announced.
</li>
<li>
Cuts to higher education funding.
</li>
<li>
Cuts to planned foreign aid.
</li>
</ul>
These measures were partly offset by welcome spending on roads and rail, the move towards the full start up of DisabilityCare in 2018-19 and increased funding for schools.
The budget deficit - the good &amp; bad 
Given the coverage around the continuing budget deficit it is worth putting it into context. First, some background. Just as with a household, a government’s budget deficit is the difference between the amount it spends (on social welfare, defence, infrastructure, health, etc) and the amount it gets in revenue (from taxes, investment earnings, etc). It has to be financed by borrowing and to do this a government issues government bonds (to investors such as super funds, insurance companies and foreign investors) and the cumulative sum of all such borrowing is its public debt.
While the $19bn deficit for this financial year is a lot of money it needs to be compared to the size of the economy ($1.5 trillion) to put it into context. This puts it at 1.3% of GDP and as can be seen in the first chart is a big fall from 2.9% of GDP last financial year when the deficit was $43bn. This is in fact the biggest reduction in a deficit in modern history. So despite the failure to hit the surplus target (which was always a stretch to achieve anyway) the budget deficit is still going in the right direction.
What’s more, Australia’s budget deficit is tiny compared to other advanced countries. At around 2% of GDP across all levels of government it compares to around 3% of GDP in the Eurozone, 6% in the US and 10% in Japan.
<img alt="olivermay15two" height="304" width="470" src="/images/stories/2013/05/olivermay15two.jpg">  
Similarly, Australia’s gross level of public debt at around 28% of GDP is very small compared to around 95% in the Eurozone, 108% in the US and 245% in Japan. However, comparing ourselves to a bad bunch is not necessarily wise. First, our level of net public debt (ie gross public debt less what the government is owed) is about where Ireland’s was in 2006 before a severe property crash necessitated the Irish government bailing out its banks which saw public debt skyrocket. This is unlikely in Australia, but the Irish experience highlights just how quickly good times can turn sour. Second, after the biggest resources boom in our history, public finances should be in far better shape. Norway is a good example in this regard. Realising that its North Sea oil reserves would not last forever it has been running big budget surpluses (around 10 to 18% of GDP) and putting the money into a sovereign wealth fund for use when their boom is over. As a result Norway’s net public debt is negative, ie it is owed way more than it owes.
<img alt="olivermay15three" height="291" width="470" src="/images/stories/2013/05/olivermay15three.jpg">
<country-region>Australia </country-region>is now projected to run budget deficits for 7 years in a row totalling 16% of GDP, which is almost identical the 7 years of budget deficits in the 1990s that totalled 17% of GDP. The problem is that the 1990s episode could be excused on the grounds that it encompassed a deep recession whereas the current episode has seen no recession and the biggest resources boom in our history!
While the fiscal stimulus around the time of the GFC was justified, Australia ideally should have built up a bigger investment in sovereign wealth funds like the Future Fund in the years before the GFC and then cut back the GFC stimulus much faster. Clearly the revenue shortfall has played a role, but spending should also have been cut back more aggressively through 2010 and 2011 after it surged to around early 1990s highs in relation to GDP. See next chart.
<img alt="olivermay15four" height="293" width="470" src="/images/stories/2013/05/olivermay15four.jpg">
Implications for interest rates
While there is a fiscal tightening in the Budget, it is actually zero this year and doesn’t kick in till 2014-15 at 0.4% of GDP before rising to 0.7% of GDP in 2015-16. This makes it somewhat academic (as it may not even occur) given past experience and is unlikely to have any impact on the RBA’s immediate thinking regarding interest rates. That said, our assessment remains that the RBA will cut interest rates again taking the cash rate at least down to 2.5%, with the main drivers being the peaking of mining investment at a time when the rest of the economy remains subdued and inflation remains low.
Against this background and assuming that rates are cut further, the Government’s growth forecast for 2013-14 of 2.75% is reasonable and in line with our own view. However, its nominal GDP growth forecast of 5% may be a little optimistic and we see unemployment pushing up to 6% as against the Government’s 5.75% forecast. Inflation is likely to remain low at around 2.25% as the Government predicts.
Implications for Australian assets
It’s hard to see a major impact on Australian assets.
Cash and term deposits – can’t see much impact here at all. The RBA is likely to cut rates further which is likely to put more downwards pressure on term deposit rates. Expect term deposit rates to fall below 4% in the months ahead.
Bonds – the delay in the return to surplus is probably not enough to threaten Australia’s AAA sovereign rating and continuing low interest rates should ensure bond yields remain low. But, the problem remains that with five year bond yields at 2.8% it’s hard to see great returns from Australian sovereign bonds over the next few years.
Shares – while increased spending on roads and rail may help construction and building material stocks, the impact is likely to be minimal. Its hard to see much impact on the share market overall, where we see the broad trend remaining up thanks to reasonable valuations, easy monetary conditions and prospects for stronger profits.
Property – property prices are likely to continue gaining at a modest pace on the back of low interest rates and as domestic growth starts to pick up.
The $A – while the initial response to the Budget saw the $A fall 0.5%, the announcements in the Budget alone are not radical enough to have much of an impact on the $A. In the very short term the $A was oversold after last weeks sharp fall. However, with the commodity price boom fading, the interest rate differential in favour of Australia falling and the $A overvalued on a purchasing power parity basis, the trend in the $A is now likely to be down.
Concluding comments
The good news is that the government has found ways to fund its commendable Gonski education reforms and DisabilityCare and superannuation has been left alone beyond what was already announced.
But it would have been desirable to have a least some of the budget savings kick in this year to provide more confidence that a surplus will eventually be achieved. As it turns out we are now looking at a budget deficit blowout of virtually the same size as that seen in the 1990s despite having a much stronger economy than back then.
To be sure, Australia’s public finances are in good shape compared to other advanced countries. But having seen the biggest resources boom in our history we should have been able to put more aside for the inevitable rainy day.
Dr Shane Oliver is the head of investment strategy and chief economist at <a href="https://www.ampcapital.com.au/home" target="_blank">AMP Capital</a>.
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