Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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The further reduction in interest rates by the RBA boosts the prospects of the residential construction industry mounting a sustainable recovery.
As we enter mid-2013 there is still no evidence of a sustainable national recovery in residential construction, despite such evidence being crucial to a successful rebalancing of Australia's economic growth.
Today’s move is therefore welcome news for the industry and a prudent decision by the RBA.
Australia's banks now need to pass this 25 basis point cut on in full and in rapid time, to business as well as household customers.
Meanwhile, the federal government needs to act decisively to complement easier monetary policy by using next week’s budget to begin reforming the excessive tax and regulatory cost base which acts as a major constraint on new housing activity.
Policies to reduce inefficient taxation and excessive regulation on new home building will unlock billions of dollars of economic activity and generate much needed revenue for the government.
A 1% reduction in red tape would alone generate $1.15 billion worth of economic activity per annum while obviously improving the nation's productivity.
A week out from the federal budget it is disappointing that amidst the fiscal options available, the silence around reform measures that could boost the nation’s revenue base is deafening.
Harley Dale is chief economist at the <a target="_blank" href="https://hia.com.au/">Housing Industry Association</a>.
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RBA rate cut will help residential construction: HIA's Harley Dale

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Melbourne packaging magnate Raphael Geminder has put an industrial portfolio with a combined worth of $80 million on the market through his PACT Group Pty Ltd subsidiary company, Centralbridge.
The trans-Tasman portfolio comprised of four properties, described as a combination of passive investment properties and redevelopment opportunities, has locations in Moorabbin, (VIC) Condell (NSW), O’Connor (WA) and East Tamaki, (New Zealand).  
CBRE who have been appointed the campaign for the sale, say they expect to attract strong local interest given a relatively stable economy and appealing borrowing rates.  
Mr. Geminder, whose subsidiary companies also include Alto Packaging Australia, Viscount Plastics and VIP Packaging, said that the improved state of the industrial market indicated an ideal time to divest part of Centralbridge’s portfolio.  
With exception to the O’Connor property (which will be offered on a short term lease, or with vacant possession), all properties are to be sold subject to long term 12 year leases to subsidiaries of Geminder’s PACT Group.  
CBRE’s Chris O’Brien said; ““This long term secure income underpinned by the high land values will only enhance the potential performance of the assets over the investment horizon.”  
The portfolio is being offered for sale via an expressions of interest campaign closing 14 June 2013.  
CBRE’s Victorian Industrial Investments team of Chris O’Brien, Matt Haddon and Rory Hilton will be in charge of the campaign.
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Raphael Geminder's Centralbridge trans-Tasman industrial portfolio listing

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The number of companies operating in Australia at a loss <a target="_blank" href="https://www.smartcompany.com.au/tax/049437-number-of-smes-trading-at-a-loss-rises-ato-statistics-show-2">has decreased</a>, according to the latest figures from the Australian Taxation Office.
But those positive figures, which cover the 2010-11 financial year, also coincide with a rise in insolvency statistics from the same time. That trend has continued, with insolvency numbers recorded by ASIC now at record highs.
The ATO figures have also revealed a trove of data regarding corporate tax receipts. The number of non-taxable companies – those companies not making a profit – decreased from 61.2% to 59.3% during the year, while total income rose 8.2% to $2.44 trillion.
The number of companies trading at a loss decreased from 35.1%, or 273,690 businesses, to 34.1%, or 269,215 businesses.
Although the number may seem small, a change of 4475 businesses is significant enough for tax and accounting analysts to take note.
However, while the results indicate a better year for companies, the coinciding insolvency statistics show the year kicked off a string of corporate collapses.
The figures from 2010-11 show the number of companies entering some form of external administration rose from 9281 in the previous year to 9829.
That trend has continued. The figures from 2011-12 show 10,757 companies entered external administration, while 2013 is set to near that with as many as 7013 appointments recorded by February.
The figures appear to be at odds – despite the number of companies turning a profit increasing, along with fewer companies operating a loss, more apparently entered administration than the year before.
But Dissolve liquidator Cliff Sanderson says the figures aren't contradictory, especially as they tend to lag from when the pain first started.
Sanderson says for businesses in the 2010-11 year, they may have started feeling financial trouble as early as 2007 or 2008, when the global financial crisis first started.
"Insolvency numbers show a lag from when companies get into financial difficulty," he says. "There was a bad year in 2008, so there was clearly a delay there."
"The figures are driven by small companies, and when an economy hits significant amounts of trouble, the first cards to fall are usually the smaller businesses."
Micro-businesses, which the ATO states have incomes between $1 and $2 million, make up the vast majority of businesses. The number of micro businesses increased from 257,994 in 2009-10 to 274,022 in 2010-11 – representing 77.4% of all companies.
Sanderson says given the number of insolvency appointments still being recorded, the trend could continue.
"When a company gets into trouble, the last thing they want to do is put the business in liquidation. They fight until the bitter end, and that can take years."
The ATO statistics have revealed a treasure trove of information.
They show the mining industry had the highest proportion of non-taxable companies to total companies at 72.2%, while the number of companies which lodged returns actually increased by 1.2% to 788,983.
The statistics also <a target="_blank" href="https://www.propertyobserver.com.au/tax/landlords-tax-deductions-rise-to-%24386-billion-or-%2423000-per-tax-return-ato-figures/2013050160918" rel="nofollow">showed Australia has a total of 1.76 million landlords</a>, with each claiming an average $19,000.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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ATO stats show fewer businesses are trading at a loss

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Established house prices, including those in Sydney, stagnated over the first three months of the year with just a 0.1% gain across the eight capital cities, according to preliminary estimates of the latest ABS house price indexes. 
The results show that established capital city housing markets are operating at different speeds with the strongest performers over the March quarter being Perth (+1.2%) and Darwin (+1.9%). 
"Clusters with median prices below $800,000 contributed most to the rise in the March quarter 2013," says the ABS of the Perth increase with the Darwin increase attributed to clusters with median prices below $600,000.
Sydney recorded no change in its established house price index, with small gains in Melbourne (+0.2%) and Canberra (+0.2%) over the quarter and small corrections in Brisbane (-0.3%), Adelaide (-0.1%) and Hobart (-0.3%). 
The ABS said clusters with median prices between $680,000 and $1,100,000 contributed most to the small rise in Melbourne house prices.
While of a preliminary nature and subject to revisions, the quarterly results may be factored into the RBA's decision on the cash rate, due to be announced at 2.30pm today.
Annually, house prices rose in Darwin (+8.0%), Perth (+6.1%), Sydney (+3.6%), Canberra (+1.5%), Brisbane (+1.4%), Melbourne (+1.1%) and Adelaide (+0.9%) and fell in Hobart (-1.9%).
The stagnation in house prices in the first three months of the year follow the ABS recording a revised 2% gain in its established house price index over the December quarter having previously reported a 1.6% gain in preliminary figures.
The positive movement in the December quarter 2012 was the result of rises in Sydney (+2.3%, unchanged), Melbourne (+1.8%, revised from +0.7%), Perth (+3.1%, revised from +2.9%), Brisbane (+1.0%, revised from +0.7%), Adelaide (+1.1%, revised from +0.8%), Canberra (+2.8%, revised from +2.1%) and Darwin (+3.0%, revised from +2.6%). This was partially offset by a fall in Hobart (-0.5%, revised from -1.4%).
The ABS figures contrast sharply with RP Data-Rismark figures, which recorded a 2.9% rise in detached house values across the combined capital cities over the March quater with Hobart the best performing capital city with a 6% gain and Adelaide the worst, falling 0.8%. 
RP Data had a cumulative capital gain in dwelling values in the year to March at 2.4% and up 4.7% since the market bottomed out in May last year.
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Established house prices stagnate in March quarter, but with good gains in Perth and Darwin: ABS

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A property in artist Margaret Olley’s estate has been listed for sale in Newcastle.
Located on <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="https://www.walkom.com.au/buying/search/detail.aspx?id=WLS72501499&amp;wlid=01326ba9-f553-4719-aba3-17d1f1159885" target="_blank">Church Street</a>, the three-storey terrace is one of eight properties Olley owned in The Hill precinct in the 1960s.
It was the only one she held onto until her death in July 2011 aged 88.
Set on 120 square metres of land, the property has been divided into two self-contained flats.
The street level unit comprises of four bedrooms, one bathroom and a north facing enclosed balcony with harbour views and a courtyard.
The self-contained basement flat includes one-bedroom, one-bathroom and a private courtyard.
Estate agent Sonia Walkom of Walkom Real Estate says the property can easily be restored to one residence.
In terms of any traces of the renowned artist, Walkom says there aren't any.
"Margaret hasn't lived there since the 60s or 70s and has held the property as an investment," says Walkom.
Walkom says Olley once used the basement as her studio.
The property is due to go under the hammer on May 25 with $600,000 hopes and has a rental income of around $600 per week.
Olley’s Paddington home where she spent most of her time will be gutted and transported to create the $4.5 million Margaret Olley Arts Centre in <a style="outline-style: none; outline-width: initial; outline-color: initial; text-decoration: underline; color: #6888b1;" href="/news" target="_blank">Murwillumbah</a>.
The regional NSW centre is designed by architect Bud Brannigan and will include exhibition space, an education workshop facility, library, collection storage, multi-media areas and a standalone studio for artists.
It was also include recreations of Olley’s home and studio, including the Hat Factory and the Yellow room.
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Artist Margaret Olley's Newcastle terrace to go under the hammer

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While most other Australian states continue to experience a real estate lull, the WA market has bounced back strongly to the point where it is hard to argue the case for another interest rate cut.
I know there are many people who would argue with me on this point, but if real estate sales in the rest of the country were as strong as they are here in WA currently I’m sure the Reserve Bank board would not be considering dropping rates.
Of course, there are other sectors of our WA economy, especially retail, that do continue to need assistance to boost trade. However, the last thing we need in WA is for our real estate market to overheat.  
The sub-$600,000 segment of the WA market has been strengthening for some time fired up by latent first-home buyer demand and this activity is now beginning to feed through to the higher prices as people upgrade to second and third homes.  
Obviously, a strong property market is always a good thing, but a short term boom fertilised by “irresistible” interest rates can only result in another long period of stagnation such as the 2008 to 2012 down market.
History shows that when the property market is down, everything is down because when people see their home value affected they lose confidence and are much less enthusiastic about spending elsewhere so this is another reason to avoid a boom and bust environment here.  
It’s a big call but, because the states can be so different economically there is almost an argument for rates to be adjusted to suit each market rather than a one size fits all approach.
Geoff Baldwin is managing director at <a target="_blank" href="https://www.remaxwa.com.au/">RE/MAX WA</a>.
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Hard to support an interest rate cut in strong WA property market: Geoff Baldwin

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The latest ABS retail sales figures for March will disappoint retail property landlords, particularly those with a high proportion of fashion-related tenants.
Following a rise of 1.3% rise in February,  retail turnover fell by a seasonally-adjusted 0.4% in March 2013.
This was well below expectations of a modest 0.1% gain in March.
The largest contributor to the fall in March 2013 was clothing, footwear and personal accessory retailing (-4.2%) followed by household goods retailing (-1.5%), other retailing (-1.0%) and department stores (-0.1%).
These falls were partially offset by rises in food retailing (0.8%) and cafes, restaurants and takeaway food services (0.2%).
Over the longer term, the largest contributor to growth was food retailing (up 0.5% in trend terms). 
Through the year, Australian retail turnover rose 3.2% in March 2013, seasonally adjusted, compared to March 2012. 
The drop in retail sales come as inflation rose 0.3% in April after a 0.2% rise in March, according to the TD Securities–Melbourne Institute Monthly Inflation Gauge, leaving inflation 2.1% up for the year, well within the RBA's target inflation band of 2% to 3.%.
ANZ comments that the fall in March retail sales was likely impacted by the timing of Easter this year (and the associated seasonal adjustment difficulties), but that March retail sales were 2.2% higher than at the end of last year.
"Together with the improvements in house prices, these data suggest that some interest-rate sensitive parts of the economy are beginning to improve. However, despite better consumer confidence and spending, there has been no notable improvement in business conditions and the non-mining investment outlook remains soft," says ANZ.
The trend estimate for Australian retail turnover rose 0.4% in March 2013. This follows a rise of 0.4 per cent in February 2013. Through the year, the trend estimate rose 3.3% in March 2013 compared to March 2012.
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Food better than fashion as retail sales fall by an unexpected 0.4% in March: ABS

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Fears of being gazumped are on the rise in Sydney as buyers face increased competition for properties in the improving market.
Gazumping occurs when a buyer has a verbal agreement with an agent or seller to buy a property at an agreed price but the property is sold to someone else for a higher price.
The incidence occurs in private treaty sales or when offers are made prior to auction. Auctions are binding sales and therefore absent of gazumping.
Raine &amp; Horne CEO Angus Raine says rebounding values could result in greater incidences of gazumping.
“Already I have received my first telephone calls from consumers beaten to the punch for a property, and this is historically a sign the market is hotting up,” Raine advised last month.
“In NSW, a home is still for sale until a prospective buyer and a vendor have exchanged contracts, and a deposit, which is usually 10% of the purchase price, has been paid.”
To avoid missing out, Raine advises aspirant buyers to familiarise themselves with the steps involved in buying a property.
“I’d also urge committed buyers to be quick to exchange contracts and pay a deposit, once they hit upon a suitable, well-located home, for the right price,” he says.
REINSW CEO Tim McKibbin says gazumping occurs more in “hot markets” where there is a shortage of property and there is greater competition among buyers.
He told News Limited weekend papers that buyers could protect themselves from gazumping by should ensuring contracts were signed as quickly as possible by both parties or to buy at auction.
NSW Fair Trading stresses that a property sale is “generally only binding on the vendor and buyer when contracts are exchanged between the two parties”
“Exchange occurs when the vendor signs their copy of the sale contract; the purchaser signs their copy, and the two parties ‘exchange’ their signed contracts. It is usual at this time for the purchaser to pay a deposit, usually 10% of the purchase price,”
“If you are gazumped, neither the agent nor the vendor is obliged to compensate you for any money you may have spent on legal advice, inspection reports, finance application costs or inquiries. However, your ‘expression of interest’ payment (if you have paid one) must be refunded to you in full” says Fair Trading in a special page on the topic on its website.
Real estate consumer advocate Neil Jenman warns buyers not to get their hopes up until a contract has been signed
“Buyers can count on nothing being certain until the sellers sign a legally binding contract. Between the time the sellers verbally agree to sell and the time they sign the contract, lots of things can happen. The sellers may get a better offer, they may decide not to sell or they may decide to increase the price,” he writes.
Tips from Neil Jenman to prevent being gazumped:
<ol>
<li>Consider making their highest offer rather than lowest offer and be prepared to walk away if they lose out. “It is tragic to lose the home you love because you bluffed too hard,” he says.</li>
<li>Try to meet the sellers. “It is hard for sellers to gazump you if they know you and like you and if they believe you have been fair with them”.</li>
<li>Insist that the agent informs you if another buyer offers more. </li>
</ol>
Raine &amp; Horne tips to avoid being gazumped
<ol>
<li>Have your finances pre-approved before making an offer</li>
<li>Obtain a copy of the Contract of Sale promptly, and pass it to your solicitor or conveyancer</li>
<li>Research your market so that you can be confident of putting forward a winning offer – then be prepared to move quickly to exchange contracts</li>
<li>Put an offer in writing – the law requires real estate agents to present all offers to the vendor</li>
<li>Signing a cooling-off period gives buyers time to organise a building and pest inspection without being gazumped. However if you don’t proceed, you will forfeit 0.25% of the purchase price to the vendor.</li>
</ol>
NSW Fair Trading tips for buyers to avoid being gazumped
<ol>
<li>Always have your loan finance pre-arranged, and ensure you can pay the 10% deposit, by Bank Cheque or a deposit bond so there is no delay before attempting to exchange contracts on a property.</li>
<li>Obtain a copy of the sale contract as soon as possible and have it examined by either your licensed conveyancer or solicitor.</li>
<li>Seek to exchange contracts with the vendor as soon as possible. Anyone puchasing residential property has a five-day cooling off period commencing from the time of exchange of the contracts. Only the purchaser can waive the cooling off period and it can be extended by agreement. During this time, you can do a building and pest inspection and have the contract examined. However, if you rescind the contract during this period, you forfeit .25% of the purchase price to the vendor, as the property has been taken off the market for a period of time. The amount forfeited is recovered from the deposit you paid under the contract. If the amount of the deposit is insufficient, you will have to provide the necessary additional funds. You should find information relating to the cooling off period in your contract.</li>
<li>Negotiate firmly with the vendor or real estate agent. Insist on the agent passing your bona-fide offers to the vendor and obtain written proof of this occurring. The law requires agents to do this. Be ready to exchange with a signed copy of the contract and follow through on the exchange process yourself or with another trusted person to ensure exchange. If you are advised that other offers have been made, demand to see written evidence. If you are certain that you want the particular property, be ready to possibly increase your purchase offer to the vendor.</li>
<li>Be aware that the vendor is not generally compelled to sell to any specific person and can change their mind at any time prior to the exchange of contracts. Vendors may not necessarily sell to the highest offerer, but may accept a lower offer from a prospective purchaser.</li>
</ol>
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‘Gazumping’ fears arise in Sydney: 13 tips to protect unlucky buyers

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Most people wouldn’t have heard of Bruce Rock.  I asked my wife and she thought it might be the name of a rock singer (that’s Kid Rock…).  Bruce Rock is actually a council region located 254 km east of Perth.  According to the <a href="https://www.brucerock.wa.gov.au/" target="_blank">Bruce Rock council web site</a>, it’s quite a nice place to visit:

The Shire of Bruce Rock and its townsite are situated in the heart of the Wheatbelt, 254km east of Perth.  It has a population of approximately 700 people, with 1200 people in the shire.  Bruce Rock ‘leads the way’ to open spaces and an agricultural experience to be enjoyed by all.  We welcome visitors to enjoy the picturesque main street, gardens, amphitheatre and sculpture park, historic buildings, museums, federation style verandahs and great facilities.
Unfortunately, it’s also one of two council’s recording the fastest rate of population decline over the past year.  According to the recently released regional population statistics from the Australian Bureau of Statistics, the population of Bruce Rock fell by 2.7% over the year to June 2012.  In raw number terms that equated to a loss of only 27 people; but when you have a population of less than 1,000 people to begin with, I’m guessing you would want to retain as many people as possible.
The <a href="https://www.hay.nsw.gov.au/" target="_blank">council region of Hay</a>, located in the Riverina region of NSW, also recorded a decline of 2.7% in population over the year to June 2012.  Hay is quite a bit larger than Bruce Rock with an estimated residential population of 3,013 residents (that’s taking into account the 84 fewer people over the year).  Hay Shire is noted as being one of the flattest places on earth.  More importantly, the region is part of one of the most important agricultural centres in the country.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/05/lawlessmay3one.gif" title="Click to enlarge"><img src="/images/stories/2013/05/lawlessmay3onethumb.gif"></a>
Looking across the council regions that have recorded the most significant rate of population decline it shouldn’t come as a surprise that they are generally rural locations and more often than not, they have an economy centred around agriculture with tourism often cited as a secondary industry.
I suspect the challenge for these regional communities is retaining the younger cohorts of the population.  A quick look at the Census data for the top five council regions based on the largest percentage fall in population shows an average age which is considerably higher than the national average which supports this notion. There has been plenty of research done on the regional population drain across Australia which a Google search will uncover.
As an aside, I thought this <a href="https://www.computerworld.com.au/article/427437/nbn_stop_rural_brain_drain/" target="_blank">article from Computerworld titled ‘NBN to stop the rural brain drain</a>’ was quite an interesting perspective on one of the benefits of how high speed internet access may help to sustain populations across regional communities.
Looking at areas where population growth has been the fastest, the regions tend to be across the outskirts of the capital cities and to a lesser extent the inner city areas where densification is driving population growth.  The fastest growing council region in the country is the Shire of Serpentine-Jarrahdale located on the outer southern fringe of the Perth metro area.  In fact, thirteen of the top 20 fastest growing council regions are located in Western Australia.
 
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From a wider perspective, comparing the capital cities and regional areas across the country, the four largest capital cities (Melbourne, Perth, Sydney and Brisbane) are recording the vast majority of Australia’s population.  In fact, 69% of the national population growth over the year to June 2012 was centred within these four cities.
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<a rel="shadowbox" href="/images/stories/2013/05/lawlessmay3two.gif" title="Click to enlarge"><img src="/images/stories/2013/05/lawlessmay3twothumb.gif"></a>
In percentage terms, the Greater Perth region is punching well above its weight, recording population growth of 3.6% over the year to June 2012.  The other regions recording a rapid rate of population growth are the regional areas of Western Australia, Darwin and Brisbane where the growth rate is higher than 2%.
Just like a declining population poses challenges, so too does a rapidly growing one.  Delivering sufficient infrastructure is always the pain point for regions where population growth is strong.  Pressure for new roads, bridges, public transport, schools and hospitals are high on the agenda in any of these regions and state and local governments are constantly challenged to deliver what is required.
If you’re interested in what is happening with population growth trends, I’ve put together a series of thematic maps based on SA2 boundareis that highlight where population growth is occurring and where are the areas experiencing a population drain.
This key (pictured below) indicates the rate of population growth from 2011 to 2012:
<img alt="lawlesskeymay6one" height="266" width="400" src="/images/stories/2013/05/lawlesskeymay6one.jpg">
<img height="334" width="470" src="/images/stories/2013/05/lawlessmay3threethumb.gif" alt="lawlessmay3threethumb">
<img height="454" width="470" src="/images/stories/2013/05/lawlessmay3fourthumb.gif" alt="lawlessmay3fourthumb">
 
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<img height="469" width="470" src="/images/stories/2013/05/lawlessmay3fivethumb.gif" alt="lawlessmay3fivethumb">
<img height="416" width="470" src="/images/stories/2013/05/lawlessmay3sixthumb.gif" alt="lawlessmay3sixthumb">
<img height="437" width="470" src="/images/stories/2013/05/lawlessmay3seventhumb.gif" alt="lawlessmay3seventhumb">
 
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<img height="458" width="470" src="/images/stories/2013/05/lawlessmay3eightthumb.gif" alt="lawlessmay3eightthumb">
<img height="490" width="470" src="/images/stories/2013/05/lawlessmay3ninethumb.gif" alt="lawlessmay3ninethumb">
<img height="499" width="470" src="/images/stories/2013/05/lawlessmay3tenthumb.gif" alt="lawlessmay3tenthumb">
<img height="460" width="470" src="/images/stories/2013/05/lawlessmay3eleventhumb.gif" alt="lawlessmay3eleventhumb">
Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/" rel="nofollow">RP Data.</a>
 
 
 
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tlawless-5VLUrbAk9s

Australia's four biggest capital cities are dominating national population growth: Tim Lawless

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Any regular reader of Property Observer will be well aware of the industry-wide aversion to first-home owner grants.
Steven Keen was one of the first to highlight their effect on the market when he aptly named them ‘vendor grants’, and last week Ray White chairman Brian White made a similar call when he termed the increased Victorian stimulus for first-home owners purchasing new accommodation, nothing more than a “builder’s incentive.”
Even the REIV, which has been broadly in favour of retaining first-home owner grants, has expressed frustration at the liberties state governments take when ‘manipulating’ the market through annual ‘tinkering’ with our most price sensitive demographic.
Treasurer Michael O'Brien has suggested “Victorian families (purchasing new accommodation) will be over $16,500 better off with the combination of the increased grant and stamp duty cuts” however; surely no one is under the false conception that this move has anything to do with easing affordability?
It's basic economics – if you channel an increased supply of money by way of ‘candy’ style incentives into any one sector, competition increases and so do prices. Any advantage the grant offers is quickly wiped away and buyers invariably end up paying ‘more’ rather than less.
As an example, in 2008/9 during which the first-home owners ‘boost’ was offering an extra $14,000 on top of State grant of $7,000 for anyone purchasing new accommodation. The rush of buyers to ‘get in quick’ before the grant was inevitably stripped away resulted in prices escalating in excess of 20 % in fringe suburbs such as Tarneit and Werribee South.
If you work out the dollar equivalent on the median house price in these localities, the ‘extra’ paid is in excess of $70,000 - so no saving there – and as with all smarty style incentives, as soon as they’re stripped away, first-home buyers who were encouraged to buy on a “whim” are left sitting on a nice pot of negative equity with no ‘rainbows’ on the horizon.
Of course, state governments are well aware of all these facts – so to openly mislead the public with affordability ‘sound bites’ is at worst, lying, and best insulting – they don’t deserve a seat.
Rather the policy takes advantage of the inexperienced property buyer luring them in with a seemingly ‘generous’ handout, in order to provide a much needed boost to the construction industry which, as indicated by the RBA – is expected to ‘buffer’ any void resulting from a slowdown in the mining sector, and in the near term, will assist in soaking up the oversupply of ‘new’ accommodation prospected to hinder growth in Victoria’s property market, as we traverse through the remainder of 2013.
All such grants which are primarily aimed at the new home market play their part in increasing demand – but they are temporary measures only.  Is it too much to ask for ‘real’ sustainable policies which address the hefty taxes, levies and fees currently making up what the HIA estimate to be 40% of the cost of a new home?
Or am I making the mistake once again of being brainwashed by “policy speak” - imagining our housing market is designed to provide the population with affordable shelter over and above a simple revenue raising tool?
 
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As every Joe on the street will tell you – if you really want to encourage the buying market to 'spread over the land', the simple answer is to raise the dollars needed to fund essential infrastructure – principally roads and public transport – at the start of the process not 20-plus years down the line.
In this regard, economist Leith Van Onselen is at the forefront of ‘good’ ideas when he suggests raising money through bond financing and recouping it from ratepayers over a period of 30 years.
Similar ideas can be found in Houston Texas in which a successful expansion of their city boarders is funded with policies such as ‘MUD’ – a ‘deductable’ Municipal Utility District tax – in which a panel of property owners sit on a government appointed board to oversee utility and infrastructure distribution in the area. The amenities are initially funded by a bond which the residents pay back proportionally over a lengthy period of time. It works as less of a disincentive to migrate outwards than an upfront fee which is piled onto the capital cost of their initial purchase, with residents openly active in allocating where and how the funds are distributed.
Buyers typically follow train lines – if they can commute to existing work places whilst living further afield, the increased population encourages small business and larger job centres away from the centre thus releasing cities from their ‘donut’ outlook.
However, currently, our outer suburbs are developing into what some term would term ‘ghettos’ – on the recently released ABS data which ranks geographic areas across Australia in terms of their relative socio-economic <a target="_blank" href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/2033.0.55.001~2011~Main%20Features~Main%20Page~1">advantage and disadvantage</a>.  A map can be constructed which highlights diversities such as incomes, education levels, occupations, rent and mortgage payments, family structure and unemployment.
<img height="327" width="470" src="/images/stories/2013/05/cashmoremay3one.jpg" alt="cashmoremay3one"> 
The ‘fringe’ suburbs are beetroot red and bright orange and sit well away from the affluent dark blue vicinities.  They are suburbs first-home buyers or families - supposedly ‘moaning’ about inner city house prices - are encouraged to “migrate” to and raise their children - areas without adequate schools, transport, and recreational facilities.
Throughout 2011-2012, the City of Wyndham in Victoria has experienced the biggest population growth of any municipality in Australia - attracting 12,822 people. Point Cook, a suburb of Wyndham which was expanded in line with Melbourne’s 2030 plan – was initially marketed as “A thriving neighbourhood … just 22 kilometres from Melbourne’s CBD” with “convenient access to established schools, shopping, recreational facilities and public transport.”
However, last year Bill Forrest – director of advocacy with the Wyndham City Council – painted the true picture when he was quoted saying "they [the state government] have not kept up with schools, they have not kept up with arterial roads, more than 50% of Point Cook is more than 400 metres from a bus stop."
In response to the long winded cries from residents situated in Melbourne’s outer west, $72 million is to be set aside in this week’s Victorian Budget to upgrade existing roads and infrastructure as the capital of Wyndham – Werribee - continues to expand into what is intended to be a major new ‘job hub’ - East Werribee.
Planning Minister Matthew Guy has stressed the “government is doing everything we can, within budget constraint, to invest in the west," however, whilst the funding is welcome, it’s quite honestly, too little too late. Notwithstanding, the blame sits as much on previous government’s shoulders as much as it does the current.
It’s all very well talking about further land releases – once again under the guise of ‘aiding’ affordability – however, without fixing the above issues we’re simply sitting on a merry-go-round of repeated mistakes. There’s little sense creating new suburbs of sprawling 'McMansions' where the trade-off of a bigger house is of little consequence once you step outside the front door.
 
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As for the inner suburban locations – our housing market is a private debt laden bubble riddled with a broad demographic of buyers and investors competing for the same golden nuggets of established real estate – typically in the lower to middle median price bracket.
Whilst Melbourne may be making headway in the lead to population supremacy, it’s not the growth that has inflated the cost of our established housing market – rather it’s policy that encourages credit expansion based on speculation. Sydney – which has made fewer inroads to effectively their increasing their housing stock in response to population growth sits in a worst position.
Reports released from the ATO show from the one in seven who own an investment property, whilst one in ten taxpayers’ are negatively geared.
It’s broadly assumed the policy of negative gearing subsidises renters. However, the offset of increased competition in the established market (which is further inflated through capital acquisitions in SMSFs) inflates the price of existing accommodation in a never ending game of musical chairs.
In this respect, negative gearing has done an excellent task of ensuring renters stay renters as lower and middle income individuals find themselves priced out all together – unable to save enough in the race to ‘keep apace.’
Considering the same report highlights a collective lost in excess of $13 billion over the 2010/11 financial year for those who employ the strategy, it’s no wonder the focus centres on the established market with the hope history will repeat itself and enable investors to compensate through the capital growth of their asset, without which there is little sense to the purchase.
Unfortunately, the latest media release from RP Data may disappoint those chasing an increase in the core value of their investment as it seems ‘real’ growth in the Australian property market is at a current or “similar level” to that recorded almost six years ago.
Or to quote RP Data’s research analyst, Cameron Kusher: “Although nominal values have risen over recent years, in real terms, capital city home values are currently at a similar level to what they were in September 2007.”
Once again, it emphasizes the need for investors to adopt a ‘low growth’ mindset as we move into an atmosphere which the RBA have termed in their “Housing and Mortgage market” outlook, to be the ‘new normal’ – principally, lower capital returns that typically track the rate of inflation.
All in all, we make nice puppets for our governing bodies. Bombarded with stats that suggest inflation is well contained, whilst in reality, the cost of living has rocketed with many still waiting for the wage rises for which ‘we’re told,’ have more than compensated.
If nothing else, let’s celebrate the freedom we have to make our distaste for current government policy evident. It’s a tad more satisfying than staring blankly at a ballot paper in September, knowing the next ruling party will no doubt provide more of the same.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
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