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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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With only 15% of Australians feeling confident about the property purchase process last year, Mortgage Choice has released a list of six manageable steps to successful property ownership.
The first step is to start saving early.
Belinda Williamson of Mortgage Choice says most lenders require a deposit of at least 5% of the property’s value, but bigger is better as is may help you avoid costly lender’s mortgage insurance.
“The discipline of budgeting and saving regularly is also great preparation for managing the ongoing costs of property ownership,” says Williamson.
Secondly, it is important to know your home loan options to set realistic savings targets and timeframes.
Williamson says it is crucial to set aside time with a professional mortgage broker to explore the loan types available to you, including how much you can borrow and the deposit size needed.
Thirdly, you can get ahead by having your finance pre-approved.
Those who have their finance pre-approved may be more attractive to sellers.
“Loan pre-approval lets you head into the purchase process knowing the maximum amount you have to spend on the property,” says Williamson.
Williamson says this gives you confidence to buy at auction or negotiate on price to save you time looking at places that aren’t in your price range.
“Keep in mind pre-approved finance is typically a limited time offer and it does not lock you into a loan,” says Williamson.
It is important to look carefully at the sale contract and to make sure there is enough time for pest and building inspections.
Williamson says to look if the contract includes a cooling off period or is subject to a finance clause.
Williamson says in order to finalise your finance you need to have all of your up-to-date financial details on hand.
This includes verifying your current income, savings and assets as well as liabilities – including any outstanding debts or loans.
“In preparation for unconditional loan approval, your mortgage broker will provide a list of all the documentation you will need to have ready so that the application proceeds as quickly as possibly,” says Williamson.
Lastly, Williamson says to gather useful information about the property before settlement, such as electricity and gas suppliers.
Williamson says to know when the strata and/or council rates are due, if there are any priority repairs or maintenance or any other associated costs.
“There will always be eventualities that can’t be planned for but if property buyers start with the aspects of the property purchase process that are within their control then the sale will typically run smoothly,” says Williamson.
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ntrotman-Et3xWpamVh

Six manageable steps to successful property ownership: Mortgage Choice

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The absence of complimentary stamp duty concessions is likely to be a stumbling block for Wayne Swan's budget initiative of assisting age pensioners to downsize their homes.
The new pilot scheme follows the Panel for Positive Ageing having identified housing as one of the major challenges of an ageing population.
The age pension assets test doesn't measure the value of a family home, but after it is sold the cash proceeds can trigger a reduced pension eligibility.
"We will trial a new measure at $112.4 million in funding to assist senior Australians to downsize to a home more suitable to their needs without reducing their age pension," Mr Swan said.
From 1 July 2014, senior Australian homeowners who have owned their family home for at least 25 years and who decide to downsize will have the option to invest surplus funds (up to $200,000) in an account.
Its been suggested there will be 30,000 seniors able to sell up and have their home proceeds protected from the age pension means test if they place the bulk of their sale proceeds into a special bank account.
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.
Only the ACT provides expressed incentives when it comes to downsizing.
Pensioners living in the ACT could act as a litmus test in the trial, because the ACT exempts older people from paying stamp duty, pensioner groups have noted.
NSW flirted with a scheme for seniors, but was underwhelmed by the result, so that it didn't get extended beyond July 2012.
The funds invested in the account and earned interest, will be exempt from the age pension means test for up to 10 years.
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The age pension is the largest item of expenditure in the Federal Budget each year.
The means-tested pension commencing at age 65 for males and (currently) 64 for females but is set to be adjusted to age 67 over the next decade.
As at March 2012, the full age pension was $695.30 a fortnight for a single person and $1,048.20 a fortnight for a married couple. There was also a pension supplement for singles of $60.20 a fortnight ($90.80 for couples). The assets test is updated several times annually.
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The means testing that is applied to the pension consists of an income test and an asset test. The payment received is the lower amount determined by the two tests. The family home is exempt from the assets test.
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Currently a single homeowner with assessable income less than $152 per fortnight, and assets outside the family home of less than $192,500, is entitled to receive the full pension of $695 per fortnight plus a pension supplement of $60.20 per fortnight.
Every dollar of income above the income test threshold reduces the pension entitled by 50 cents per fortnight, and every $1000 of assets above the asset test threshold reduces the amount of pension by $1.50 per fortnight.
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A recent Rice Warner actuaries reports noted a partial pension was payable for home owning couples with earnings up to close to $2,500 per fortnight and with over $1,000,000 in non-housing assets.
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"For example, a couple who are homeowners with non-housing assessable assets of $750,000 and assessable income of $45,000, are eligible for a considerable part age pension payment of over $10,000 per annum, and those with even higher income and $1 million in non-housing assets are still eligible for a partial pension," it noted.
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"Apart from the overly generous exemptions for home ownership, the means testing provisions generally ensure that those who are relatively well off do not receive a full age pension.
"However, means-testing has become a complex and inconsistent system,' it added.
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jchancellor-FAypfDUnLy

ACT public servant mandarins most likely to benefit from federal budget downsizers scheme as stamp duty the major hurdle for seniors in other states

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The decision to allow Perth shops to trade on Sundays helped push up the performance of Federation Centres' WA portfolio of shopping centres, the group has revealed in its March quarter update.
The new laws were introduced on August 26 last year allowing all general retail shops in the <a target="_self" href="https://www.commerce.wa.gov.au/consumerprotection/PDF/Misc/Metropolita_area_map.pdf">Perth metropolitan area</a>, including major supermarkets and department stores, the right to open their doors on Sunday between 11am and 5pm.
“Following the introduction of Sunday trading in August 2012, the performance of our WesternAustralian portfolio was particularly strong, recording moving average turnover growth of 4.9% at the end of the period," said Federation Centres chief operating officer Mark Wilson.
The performance of the WA portfolio was substantially better than annual retail sales growth of 2.4% and the performance of Federation Centres shopping malls in other states.
"Our NSW portfolio also showed encouraging signs, with moving average turnover growth of 2.5%.
"The portfolio located in NSW and Western Australia represents approximately 50% of the total by value.
"Trading conditions in Victoria and Queensland however remained more subdued, with moving average turnover growth of only 0.3% and 1.2% respectively over the period," he said.
Overall Federation Centres reported a "solid" first quarter of the year with occupancy at a rate of 99.4%.
Overall annual sales growth increased to 2.4% at 31 March 2013 from 2.0% at 31 December 2012, with specialty retailers continuing a positive trend to show annual sales growth of 2.5%.
Federation Centres, formely called Centro Retail Australia, has a portfolio of 46 shopping centres worth $4.4 billion.
It has recently sold over $200 million worth of non-core shopping centre assets held in Centro syndicates, while also acquiring the <a href="/news">Centro at Gympie for %63.8 million</a>.
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lschlesinger-FZcF9M3vE6

Perth Sunday trading delivers boost to Federation Centres WA malls

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In the current economic climate tenants in the commercial property market – rather than landlords – have the upper hand.
Tenants are increasingly looking at the bottom line and with landlords keen to retain tenants, there are opportunities for tenants to negotiate a better deal.  
Tenants are continuing to examine their entire business to identify where cost savings can be generated and given that one of the major costs to all businesses is the premises they operate from, this is a good place to start. The current economic conditions have created a tenants’ market, so now is the time for tenants to examine every space their organisation occupies and explore the strategies available to reduce risk, maximise operating efficiency and drive down costs.  
This market provides the perfect opportunity for tenants to reposition and enhance their businesses and this can be done primarily through workplace improvement and upgrades.  
There are several ways in which office tenants can benefit in the current market, and the best way to capitalise on the opportunities is to outsource property requirements to experts. Tenants need to be aware of what is on offer so they do not simply exercise an option or sign another long-term lease without looking at the options available.  
In this type of market landlords are keen to retain or secure tenants on long-term leases to guarantee income and extend their Weighted Average Lease Expiry (WALE), so any tenant with two years or less remaining on their lease should look to engage with a tenant representative now to ensure the best outcome. There are opportunities, for instance, for tenants to renegotiate or restructure their lease and receive a significant cash incentive from their landlord for extending. There are numerous examples recently where 100 % of a tenant’s new fitout was covered by well negotiated incentives.  
In addition, there are often additional incentives left over from the fitout to be contributed towards rent reductions or rent free periods. Many tenants whose fitout, building and location meets their needs may elect to allocate the entire incentive towards rent to drive down operational costs.  
The best opportunities for tenants at the moment are in the Sydney and Melbourne CBDs, as this is where incentives for office space were proving to be the highest. Incentives in the Sydney CBD range from 22% to 30%, with B-grade space in the southern precinct having the highest incentives of 28% to 30%. There are instances in particular buildings with large vacancy where incentives are pushing above 30%.  
The Melbourne and Brisbane CBDs are not far behind, with incentives ranging from 20% to 30%. Meanwhile, incentives in the Adelaide CBD range from 5% to 20%, in the Perth CBD they range from 5% to 10% and in Canberra they range from 8% to 20%.  
While tenants clearly secure a benefit from incentive arrangements, it is not only the tenant who benefits. It is a win-win for the tenant and the landlord, as the landlord retains or secures a tenant on a long-term lease, locking in their cash flow with no let-up time. The opportunity cost of a tenant vacating is significant, with let up time for larger space between six to 18 months in addition to building upgrades required to attract new tenants.  
As well as securing incentives, office tenants also have the opportunity to negotiate on clauses in their lease agreements that are more difficult in an environment that favours landlords, such as rent reviews, expansion/contraction clauses and ‘make good’ provisions. This type of flexibility is essential for tenants in the current economic climate to enable growth and contraction to meet an organisation’s changing needs. The office environment will need to be able to adapt to the changes in the business over the entire lease term, which includes being able to expand or contract the head count in the same amount of space.  
Tenants have a further opportunity to approach landlords to make upgrades to their buildings – for instance bathroom, air conditioning, lighting, carpet or lobby upgrades. Landlords are likely to cooperate when it comes to these requests, given their desire to retain tenants and ensure their asset remains competitive in the market.  
One of the other major benefits of the current market for tenants is the opportunity to snare a newly refurbished space for great commercial terms. Due to an increase in new supply in most markets over the next two years, a major trend will be an increase in backfill space due to large tenants consolidating their operations and moving into new developments providing superior quality accommodation. We will see this for instance with Westpac, and KPMG moving in to the Barangaroo development. As large tenants move to new spaces, landlords will be forced to upgrade their buildings through refurbishment to attract new tenants and they will also be forced to offer high incentives for the backfill space to attract tenants.  
Over the past six months we have already been witnessing a significant increase in activity in the sublease market - better sublease space is being made available in the wake of major companies reducing headcount and seeking operational cost savings. Consequently this space is competing with new space that is available at greatly reduced rentals, often with high quality fitouts included in the offering.  
In addition to negotiating with their landlords to get a better deal, tenants looking to save money should also look at reconditioning the workplace to potentially create greater efficiency and reduce the space required to operate. Lease expiries give tenants the opportunity to reconsider their accommodation needs and explore ways to reduce their footprint to save costs.  
Tenants looking to consolidate their operations should look at how their existing workplace supports their business strategy and consider whether their work settings actually support the ways their teams work. For instance, it might be worth evaluating whether every employee actually needs a designated desk. We find that typically, just over half the available desks are in use at any one time in an office. It is rare for staff numbers to break an 85% occupancy rate, which means many businesses may have more space than they actually need.  
Workplace technology is another area where businesses can make savings. For instance, most organisations will only update their telephony systems and update their network infrastructure when they are relocating. This means long-term occupiers could be losing their competitive edge by failing to provide technologies that enable workplace mobility. Technological mobility is a major consideration for businesses looking to consolidate as it allows greater density within an existing footprint.  
Simon Crouch is national director of tenant representation at <a href="https://www.colliers.com.au/" target="_blank">Colliers International</a>.
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scrouch-jEaruuK9Wi

Tenants have the upper hand in the current commercial property market: Simon Crouch

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We are driving less. Our per capita travel by private vehicle has been dropping over the last ten years.  
For mine, the cost of petrol is an obvious reason, though I think technology has something to do with it too, what with the dramatic impact it has on our ability to stay put while connecting (well, if you want to call it that) with just about anyone, anywhere, anytime – without even having to sit upright.  
But what’s on the mind of many of us actually driving is traffic congestion.  
Alleviating congestion has become a focus of city planners, but how congested, really, are our cities? Some science behind the whinge might help matters.  It usually does.  
And to the rescue comes the Dutch manufacturer of automotive navigation systems, TomTom (without the Lone Ranger), which has undertaken extensive studies on congestion levels in urban areas around the globe and has come up with the TomTom Congestion Index on traffic movement by location, time and day.  
Here are a few pertinent stats for Australia and New Zealand (yes they do have traffic there too!) and if you want to download the complete study, you can <a target="_blank" href="https://www.tomtom.com/congestionindex">go here</a>.  
Most congested cities – Sydney and Perth.  
Least congested cities – Brisbane (hard to believe hey!) and Canberra.  
Congestion levels – Sydney’s overall score is 33%, the same as Los Angeles – the most congested city in the United States – and far less than the most congested city in Europe – Moscow 66%.  
Perth gets 30%; Melbourne and Adelaide 28%; Brisbane 25% and Canberra 18%.  This compares to Auckland and Christchurch 28% and Wellington 24%.  
Congestion here is measured 24/7 and not just during peak hours.  
Morning peak hour – Sydney wins most congested and rises to 70% which even exceeds LA’s 56% (we feel your pain, Sydney); Melbourne moves into second place (56%); followed by Perth (55%); Adelaide (50%); Brisbane (45%; and Canberra (41%).  
Top three increasing in congestion – Perth, Melbourne, Sydney.  
Top three decreasing in congestion – Auckland, Christchurch and Brisbane (It still doesn’t help when stuck in traffic on Moggill Road!)  
Likely delay per hour driven in peak periods – Brisbane 28 minutes; Canberra 22m; Adelaide 28m; Melbourne 33m; Perth 33m; Sydney 40m.  Across the ditch: Auckland 40m; Christchurch 30m; Wellington 36m.  
So I assume from this that Brisbane’s traffic congestion is kinda okay, until shite hits the fan somewhere, and it gridlocks up, causing, on average, 28 minute delays, during peak periods.  
Best peak periods of the week – For Brisbane, Adelaide, Melbourne, Perth and Sydney, the best peak periods occur Mondays pm and Fridays am.  For Canberra, best peak periods are Fridays am and pm – in other words, they only work a four-day week in the nation’s capital.  
Worst peak periods of the week – Tuesdays am for all cities except Canberra (Wednesdays am); and Thursdays pm for all cities except Perth (Wednesdays pm) and Sydney (Fridays pm).  
My comments  
The market is placing much higher value on convenience.  Travel times are part of this.  But I think living downtown or closer to an urban centre, has more to do with amenity and being able to walk to things, rather than the time saved when it comes to driving to work, shopping, schools etc.  
We are seeing this when it comes to new subdivisions.  Those developments that spruik easy access to surrounding facilities, are not as attractive as those projects which offer the amenity within the development itself or within a pleasurable walking distance.  
We will not give up our cars.  We might not drive them as much, but far too many things can only be accessed by private vehicle.  Urban consolidation doesn’t equate to fewer actual cars, just fewer and shorter driving trips.  
The market (both buyers and renters) still places a premium on cars.  It is very difficult to sell a new one-bedroom apartment in inner Brisbane without a car parking space for over $350,000.  But buyers pay well over $400,000 for a one-bedroom apartment with a car space.  The premium for the car space within a new inner Brisbane development ranges depending on location, but averages close to $75,000.  The apartments with car spaces – being one space for a one-bedroom apartment and on those rare occasions these days, two spaces for a two-bedroom apartment – mostly sell first.  
Don’t believe me?  Well you ask a downsizing baby boomer couple - who are looking to leave suburbia and live a more urban lifestyle and who can only afford to buy a two-bedroom/one car space apartment – who is going to forego their car? Icy silence.  And wave bye-bye to that sale.  
Where are the Lone Ranger and Tonto when you need them?  
“Hey Kemosabe, maybe a townhouse might do the trick!”
Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/" rel="nofollow" style="font-size: 14px;">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read<a target="_blank" href="https://www.matusikmissive.com.au/" rel="nofollow" style="font-size: 14px;">Michael’s Blog</a> or follow him on <a target="_blank" href="https://www.facebook.com/ThinkMatusik?fref=ts" rel="nofollow" style="font-size: 14px;">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow" style="font-size: 14px;">Twitter</a> or connect via<a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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Despite traffic congestion, we will not give up our cars: Michael Matusik

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Sydney remains the preferred location of choice for Australia's biggest companies with around 36% of the companies listed on the S&amp;P ASX 300 headquartered in the city.
And it is set to grow in prominence in the coming years with the S&amp;P ASX All Ordinaries Index up 23% from May 2012 to mid-February 2013.
"Historically, there is a lag of between one and three years from movements in the All Ordinaries to net absorption in the Sydney CBD," according to a new Sydney office report by Andrew Ballantyne and Tim O’Connor of Jones Lang LaSalle.
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Perth, with its mining boom attracting resource companies to lease in the city, is not far behind Sydney with about 80 of the S&amp;P 300 based in the WA capital city.
Melbourne is third and Brisbane fourth, according to Knight Frank.
"Sydney is the headquarters of corporate Australia.
"As such, Sydney is the finance and administrative heart of Australia. 
"The market capitalisation of the Australian Stock Exchange is $1,400 billion, making it the ninth largest stock exchange in the world.
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Sydney CBD remains the capital for big business headquarters: Chart of the week

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The decision by Fivex Commercial Property to convert office space on Flinders Street into retail space for <a href="/news">Japanese gift and homewares retailer Daiso</a> is likely to herald a trend across Melbourne as large ground floor retail space becomes scarcer. 
The first floor in Fivex's 'Riverview House” across the road from Flinders Station, and previously tenanted by the Commonwealth Bank, is currently being converted into a Daiso store, accessed via escalators. 
The move is in line with Fivex’s plans to reposition the use of the building with another floor in the building being converted into a gym and another is being transformed into a child-care centre. 
A digital advertising board  was recently wrapped around the first floor of the building on the corner of Flinders Street and Elizabeth Street to generate a seperate source of income. 
The Daiso deal has an upside for both tenant and landlord: the landlord receives a higher rent for the retail space then he would if it were office space while the tenant pays a lower rent then they would if they had leased a ground floor space, though without the passing foot traffic. 
The lease was negotiated by Ben Tremellen, Colliers International retail leasing manager, who tells Property Observer that international retailers are struggling to find large ground floor spaces in the Melbourne CBD. 
He says new international retailers all require at least 500 square metres of space and they all want to be on Collins Street between Elizabeth and Swanston Street or on the Bourke Street Mall. 
“It’s near impossible to find this sort of foot print,” he says. 
“There are definitely a lot of office landlords seeking to activate the ground floor and level one and provide space for those retailers that can’t get a footprint on the ground floor,” he says. 
Converting from office to retail could also become an option for some office landlords who can’t secure tenants in the lower floors of some of their buildings. 
The Melbourne office market is expected to soften further over 2014 and move increasingly in favour of tenants over landlords. 
BIS Shrapnel forecasting the vacancy rate to hit 10% by the end of the year. 
The Property Council of Australia recorded the highest CBD office vacancy rates in Flagstaff (13.9%), the Western Core (8.2%), Eastern Core (7.1%) and Spencer Street (6.9%) in its most recent office market report.
Retailers seeking prime Melbourne CBD space may also not have the appetite for the high rents charged on Bourke Street. 
According to Knight Frank, "super-prime" rents on Bourke Street Mall range from $7,500 per square metre to $10,000 per square metre.
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Office-to-retail conversion a growing CBD trend as ground floor space dries up: Colliers International

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The 2013 Federal Budget has a $112 million pilot to assist age pensioners to downsize their homes.
It will provide a means test exemption of up to $200,000 for ten years.
The new pilot sceheme follows the Panel for Positive Ageing having identified housing as one of the major challenges of an ageing population.
The age pension assets test doesn't measure the value of a family home, but after it is sold the cash proceeds can trigger a reduced pension eligibility.
"We will trial a new measure at $112.4 million in funding to assist senior Australians to downsize to a home more suitable to their needs without reducing their age pension," Mr Swan said.
From 1 July 2014, senior Australian homeowners who have owned their family home for at least 25 years and who decide to downsize will have the option to invest surplus funds (up to $200,000) in an account.
News Ltd papers indicated the Families Minister Jenny Macklin suggested there will be 30,000 seniors able to sell up and have their home proceeds protected from the age pension means test if they place the bulk of their sale proceeds into a special bank account.
Property Observer understands that those moving into residential aged care will not be eligible.
The funds invested in the account and earned interest, will be exempt from the age pension means test for up to 10 years.
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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The age pension is the largest item of expenditure in the Federal Budget each year.
The means-tested pension commencing at age 65 for males and (currently) 64 for females but is set to be adjusted to age 67 over the next decade.
As at March 2012, the full age pension was $695.30 a fortnight for a single person and $1,048.20 a fortnight for a married couple. There was also a pension supplement for singles of $60.20 a fortnight ($90.80 for couples). The assets test is updated several times annually.
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The means testing that is applied to the pension consists of an income test and an asset test. The payment received is the lower amount determined by the two tests. The family home is exempt from the assets test.
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Currently a single homeowner with assessable income less than $152 per fortnight, and assets outside the family home of less than $192,500, is entitled to receive the full pension of $695 per fortnight plus a pension supplement of $60.20 per fortnight.
Every dollar of income above the income test threshold reduces the pension entitled by 50 cents per fortnight, and every $1000 of assets above the asset test threshold reduces the amount of pension by $1.50 per fortnight.
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A recent Rice Warner actuaries reports noted a partial pension was payable for home owning couples with earnings up to close to $2,500 per fortnight and with over $1,000,000 in non-housing assets.
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"For example, a couple who are homeowners with non-housing assessable assets of $750,000 and assessable income of $45,000, are eligible for a considerable part age pension payment of over $10,000 per annum, and those with even higher income and $1 million in non-housing assets are still eligible for a partial pension," it noted.
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"Apart from the overly generous exemptions for home ownership, the means testing provisions generally ensure that those who are relatively well off do not receive a full age pension.
"However, means-testing has become a complex and inconsistent system,' it added.
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Federal Budget's trial program encourages downsizing to smaller homes without affecting aged pensions

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The value of commercial finance commitments rose 1.5% in March to $29.64 billion, following a rise of 0.9% in February, according to the latest seasonally-adjusted data from the ABS.
The rise in March and February followed a 9% fall in January with commercial lending continuing to trend downwards.
In trend terms, loans for commercial purposes were down 1.1% over March.
Revolving credit commitments rose 4.7%, after a fall of 6.3% in the previous month.
Fixed lending commitments rose 0.4%, following a rise of 3.4% in the previous month.
The value of commercial mortgage commitments for the purchase of housing for rent or re-sale trended up 1.4% in March 2013 and the seasonally adjusted series rose 4.6%.
The value of total personal finance commitments (credit cards, personal loans) rose 0.6% in seasonally adjusted terms.
Fixed lending commitments rose 10.1%, while revolving credit commitments fell 11.8%.
The value of total lease finance commitments trended down 0.6% in March 2013. The seasonally adjusted series fell 4.1%, after a rise of 1.6% in February 2013.
Yesterday, the ABS revealed that the number of housing finance commitments <a target="_blank" href="https://www.propertyobserver.com.au/residential/mortgage-lending-surges-up-52-in-march-abs/2013051361314?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">lifted 5.2% in March</a> and 5.8% in value, led by strong gains in NSW and Victoria.
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Commercial mortgage commitments up 1.5% in March: ABS

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Westfield speciality tenants signing new leases in Australian malls have scored an average 5.1% rent reduction than the expired rents, according to the group’s March quarter update.
The shopping centre group completed 380 leasing deals over the first three months of the year across its portfolio of 38 malls in Australia.
Excluding new projects, the leases represented 2.2% of specialty retail space across the Australian portfolio.
The rent reductions were offered against a subdued retail backdrop with comparable specialty sales up just 0.3% for the quarter.
Westfield reported that retail sales in the quarter were negatively impacted by the timing of Easter as well as 2012 being a leap year.
“Whilst retail conditions remain subdued the productivity of the portfolio remains high at $9,863 per square metre (psm) with continuing demand for space from both domestic and international retailers,” said Westfield in its quarterly update.
"Average specialty rent for the Australian / New Zealand portfolio grew by 2.4% from March 2012 with average rent in Australia now at $1,522 psm and New Zealand at NZ$1,127 psm.
"In Australia, for the 3 months over 380 leasing deals were completed. Excluding projects, this represented 2.2% of specialty area, which were completed at rents 5.1% lower than expiring rents," 
Overall, Westfield said performance across the group's global operations over the three months to March 31 was in line with expectations.
It previously reported that <a target="_blank" href="https://www.propertyobserver.com.au/retail/westfield-top-10-malls-westfield-sydney-shines-but-bondi-junction-disappoints/2013040260098">Westfield Sydney and Westfield Liverpool</a> were the top performing mall in its Australia and New Zealand portfolio.
During the quarter, Westfield commenced $700m of new projects including the $400m redevelopment of the Mt Gravatt mall in Brisbane, the US$150m redevelopment at Garden State Plaza in New Jersey and the US$90m redevelopment at Montgomery in Maryland.
It also entered into an agreement with O'Connor Capital Partners to form a US$1.28bn joint venture comprising a portfolio of six Westfield regional malls in Florida while disposing of its joint venture interest in Brazil.
Westfield's global portfolio comprises 100 shopping centres in 4 countries with around 22,000 retail shops, 1.1bn annual customer visits and over $40bn in annual retail sales. 
The global portfolio at 31 March 2013 was 97.4% leased, up 20 basis points compared to the same period last year.
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