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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Good grief. Another state government, for want of an original idea, has decided to pursue the same first-home buyer strategy that has failed elsewhere.  
Victoria's political leaders, whose only motivation in government appears to be appeasing friends and donors in the development industry, has announced a small grant for first-home buyers, but only those opting for a newly constructed dwelling.  
Victoria is following the lead of Queensland, New South Wales, South Australia and Tasmania, but is being less generous than most of the those states.  
The problem is, the (more generous) schemes in other states aren't working. Queensland, faced with a poor response to its handout for first home builders, recently had a stroke a genius and re-launched the same scheme with a new name.  
Victoria's Treasurer Michael O'Brien seems to think his version, despite being less benevolent than the ones that have failed in other states, will kick start a building boom.  
O'Brien, in describing the "benefits" of this policy fart, has inadvertently explained why it won't work. He says the combination of the grant and the stamp duty concessions will mean a $16,500 boost for first timers building the average new house, which costs around $400,000 in Melbourne.  
The key factor is the $400,000. There are lots of places around Melbourne where young buyers can find existing a houses and apartments for considerably less than that. In many cases, for $100,000 less.  
As the REIV points out, in criticising the government decision to restrict the benefits to buyers of newly constructed homes, most first timers buy existing homes. They're a lot cheaper and often better located. Across Australia, 85% of first-home buyers opt for established dwellings.  
If state governments want to help young Australians seeking a first home, why are they assisting only 15% of them?  
The answer: there's no benefit to the developers who are a prime source of donations to the major political parties and who have way too much influence on the decisions of the Victorian state government.  
Another valid question: if you really want to stimulate the building industry, why only first home buyers? They're a tiny portion of the market and handouts to an insignificant minority  will not create a construction revolution.  
To have a meaningful impact, grants need to be a lot larger than $10,000 and they need to be extended beyond first time buyers. And rather than a stamp duty concession, the tax needs to be eliminated altogether. That was supposed to happen with the introduction of the GST.  
But even then, at best, the only outcome would be a small short-term distortion of the market. Grants are not, and have never been, the answer.  
Politicians continue to tinker at the fringes of the real estate industry. Some think they can solve the affordability problem by releasing more land. Other think small handouts to young buyers will make a difference. Others believe removing tax breaks for investors is the answer.  
None is willing to face the real issue: the impact of taxes and charges at all levels of government on the cost of housing.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank" rel="nofollow">hotspotting.com.au</a>
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Victoria's new FHB strategy follows in the footsteps of other states' failed efforts: Terry Ryder

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We got a letter recently from a woman who wanted to engage us to buy a family home, but whose husband was sceptical about whether it would be worthwhile.
“My husband says I am crazy to think about engaging a James Buyer Advocate when all deals are about is 'he who has the most money wins',” she wrote.
The idea that whoever has the most money always wins the deal is a common line of thinking – but it’s not actually true.
Over the last five buying weeks in a very competitive market in early 2013, we have bought 90% of the 22 homes we have gone after at auction and private sale and expressions of interest, the large majority of which have been over $2 million.
That figure should be balanced with the fact we have pursued less than 5% of the more than 300 homes we have assessed – which is the time to say no to price. So these were properties we and our clients were confident were worth the price we felt they were going to achieve.
But in each of these negotiations there were others who were also prepared to pay around that price.
So – are we just lucky that we were hired by the people who had the most money on almost every home?
No. The truth is that most buyers have around the same resources when they go after a home. Most people looking at $3 million homes have got around $3 million to spend, and most $5 million homes have $5 million buyers looking at them and so on.
So if buyers for a particular home are generally prepared to commit around the same resources, then the argument that the one with the most money always wins doesn’t quite hold water.
In fact, in our experience in buying over 1000 family homes, how much money you have is around number 7 in terms of what determines whether you get to buy the home you really want.
Here are the others:
No. 1 – Relationships
Successful deals depend on your relationships with the agents you are dealing with – how long you have known them, whether they “own” you or whether you are “owned’ by another agent, and whether you have a house to sell yourself.  Many of our relationships with agents are good, solid, professional ones that are into their second decade. You as a buyer may struggle to make up the ground against a competent advocate or a more qualified buyer with one or two open for inspections, a phone call and an email or two – no matter how smooth or smart you are. Off-market sales are further evidence of the need for good relationships.
No 2 – Preparation
What do others think the home is really worth i.e. other agents, the vendor, and the market? Who is your real competition? What are the issues connected to this home – our favourite catch cry is “no surprises in negotiations”. Buying a home is all about doing the preparation. Not to mention legal, council, architectural and building inspections and so on.
No 3 – Understanding Processes
Rarely does anything run entirely to a plan. You need to be able to second-guess what may happen in a<a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with negotiation" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/negotiation-2/">negotiation</a>. If you don’t know how the other side works then you won’t know when to zig and when to zag in that very real game that is “dealing with agents”. The number of buyers who think buying a home in <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Top End" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/top-end/">Top End</a>Melbourne is the same as buying at a lower price range or in a different area is surprising. Normally it takes those buyers a few misses before they get an idea of how things really work. At the <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Top End" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/top-end/">Top End</a> when good stock is tight this can mean years of searching, or worse – missing out on what you really want.
No 4 – <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Clarity" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/clarity/">Clarity</a> of Purpose
When the going gets tough you need have the mindset to get going – especially on the good homes in <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with inner melbourne" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/inner-melbourne/">Inner Melbourne</a>. You need to have a clear focus on your desired outcome. Determination will win out over money any day – it’s the same in <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with inner melbourne" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/inner-melbourne/">inner Melbourne</a> home buying as it is in life. And for many, Clarity can only come with assistance and guidelines.
No 5 – Strategy
In a number of deals we had exactly the same resources as the other side. Sometimes they were also represented by advocates, but their strategies resulted in missing out on the purchase – especially when it came to situations like boardroom auctions. We have been successful in the last dozen or so boardroom auctions, ranging in amounts from $2m to over $10m. Why is that? It can’t be money alone, given that we have faced more than 30+ opponents during that time. Our clients can’t have had more money than all of them. It’s the same with Expressions of Interest. If you enter an EOI negotiation thinking it’s just a matter of opening your chequebook that is naivety in the extreme. And if you think that strategy at auction is irrelevant – let’s be clear: having bought hundreds of homes at auctions, I can tell you absolutely that that is a false statement.
No 6 – Will and <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with nerve" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/nerve/">Nerve</a>
Many people could make the putt Adam Scott made to win the Masters – but how many would have known how to get there and hold their nerve on the once-in-a-lifetime opportunity, on that specific green and at that specific time, when there was no second chance?  In home-buying, there may be another, but the fight will still be as hard and the prize won’t be the same.
Our clients hold their nerve – they do so through clarity and through natural inner strength. This happened in two recent high profile boardroom auctions, and at an auction in <a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with Albert Park" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/albert-park/">Albert Park</a> last Saturday when our clients held their nerve at $4.3 million in front of nearly 300 people with three bidders over $4 million proving the true market<a style="border: 0px; margin: 0px; padding: 0px; text-decoration: none; color: #000000;" title="Posts tagged with value" rel="tag" class="st_tag internal_tag" href="https://marketnews.com.au/tag/value/">value</a> against the quote of $3 million.  Experience in these situations is worth more than money.
No 7 – Money
How much money you have is important. And yes if you’re prepared to spend $5m on a $3m home then you will often buy it – but the chances are you won’t keep that $5m for long if you make too many decisions like that.
Mal James is principal of<a rel="nofollow" target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
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The buyer with the most money doesn't always win: Mal James

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Japanese retailing giant Daiso, having recently opened a new store in the Myer Centre in Brisbane, has leased 1,800 square metres of office space at Level 1, 2 Elizabeth Street, across from Flinders Street station for a new store.
The gift and homewares retailer, promising "everyday life solutions for one price of $2.80" and which has 3,200 shops in 25 countries, will convert office space to first floor retail with escalators from Flinders Street providing access to the store.
The rent has not been disclosed but Daiso will pay more than $200 per square metre over office rents.
The building, recently vacated by long-standing tenant the Commonwealth Bank is known as "Riverview House" and is owned by Fivex Commercial Property, which plans to redevelop it.
According to Fivex spokesperson Joshua Berger, Melbourne City Council plans to convert the Elizabeth Street block from Flinders Lane to Flinders Street to a pedestrian mall.
The planned conversion from office to retail comes as BIS Shrapnel forecasts the office vacancy rate in Melbourne to reach 10% by the end of the year, which could see other office landlords consider a similar strategy, if space remains vacant.
The lease was negotiated by Michael Di Carlo and Jeremy Marmur from Savills alongside Ben Tremellen, Colliers International retail leasing manager and , Tim Boyce, Daiso property executive, who said the owner has added significantly to the income and capital value of the property by undertaking the conversion.
"Traditionally, retailers have had a strong preference for ground floor shop fronts, but as vacancy across the Melbourne CBD remains tight I believe we will see an increase in what we call vertical retailing, particularly with big box international retailers,” said Tremellen. 
“At Colliers International, we are working with numerous landlords to activate multiple levels for retail use. This new Daiso store will be one of the largest Level 1 retail offerings in the Melbourne CBD when it opens later this year.
Daiso launched in Australia in 2010 with a store in Abbotsford and also has stores at Westfield Doncaster, Highpoint Shopping Centre and on Bourke Street in the Melbourne CBD.
Daiso’s Australian CEO, Kit Cheong – a former senior executive at the Coles Group and Pacific Brands – says there are plans for up to another dozen stores to open this calendar year along the east coast.
It sells everything from potholders to pencils, lollies and locks.
It has 2,500 stores in Japan with 500 in 25 countries.
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Japanese retailer Daiso to convert Elizabeth Street office space into shop after recent Brisbane opening

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Six shop premises in the maritime heritage Melbourne suburb of Williamstown have been listed for sale and may appeal to self-managed super fund (SMSF) property investors.
The shops stand at the corner of Stevedore Street and Douglas Parade in the heart of the Williamstown shopping precinct on the former site of the Burke &amp; Co Pty Ltd department store, which operated from 1926 until 2008.
Five out of the six shops are tenanted with one currently vacant and bring in annual rent of between $50,000 and $127,000. All leases contain relocation and redevelopment clauses.
They are being offered separately or as a whole with price expectations in excess of $7.5 million for all six.
Located at 66 Douglas Parade, <a href="https://www.commercialrealestate.com.au/property/2010370396/for-sale/vic/williamstown/retail" target="_blank">the six shops are</a>:
-          Lot 1 – Shop 1, leased to  Jas Stephens – 108 sqm, income of $86 ,614 plus GST
-          Lot 2 – Shop 2 – vacant – 106sqm
-          Lot 3 – Shop 3, leased to Hollywood Nails – 105sqm - income of $86,851 plus GST
-          Lot 4 – Shop 4, leased to Pressto – 87sqm - income of $64,258 plus GST
-          Lot S2 – Shop 5, leased to The Freedom Machine – 175sqm - income of $127,339 plus GST
-          Lot S2 – Shop 6, leased to  Lulu Katon – 69sqm - income of $50,000 plus GST
They are being sold via an expressions of interest campaign that closes on May 9 led by Fitzroys associate James Gregson
“The properties also offer significant multi-level development potential and strong future growth potential,” he said.
They are Zoned Business 1, but Gregson says they could be suited to alternative uses subject to council development approval.
Current projects in Williamstown include the development of the woollen mills on Nelson Place, comprising a number of residential towers up to twelve levels will add an additional 5,000 residents to the immediate vicinity once completed.
Recent retail property sales in Williamstown include a 225 square metre shopped tenanted by BWS Liquor until 2015, which sold for $1.7 million in May last year, a yield of around 7%.
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Six Williamstown shops listed on ‘Burke’s Corner’ and may appeal to SMSF investors

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American bulk-goods chain Costco has received the green light to go ahead with the opening of its first Queensland store, as the company prepares for further <a target="_blank" href="https://www.smartcompany.com.au/retail/054635-costco-confirms-australian-expansion-as-big-box-retail-continues-to-thrive-2">expansion around Australia</a>.

The Queensland government yesterday approved the multi-million dollar Costco development at North Lakes, despite resistance from shopping centre rival Westfield.
The decision follows a report commissioned by the state government into the retailer.
The Australian reported this morning the report by consultancy Foresight Partners found only 40% of Costco’s range was carried by major supermarkets and even less by smaller convenience stores, indicating it would not threaten the <a target="_blank" href="https://www.theaustralian.com.au/news/an-independent-report-has-supported-the-expansion-of-retail-giant-costco-into-queensland/story-e6frg6n6-1226631879906" rel="nofollow">existence of small grocers</a>.
Foresight Partners was contacted for comment this morning, but no reply was received prior to publication.
Costco Australia managing director Patrick Noone said the construction of the centre would create about 350 local retail jobs and 160 construction jobs.
“Costco will bring a new element of competition and retail to the market. We’re also a trade player, so we’ll bring a new level of competition for small business and restaurants too,” Noone says.
Queensland deputy premier and minister for state development Jeff Seeney signed off on the development and said in a statement he’d considered the proposal carefully.
“I did not rush this decision, and I took the time necessary to make sure I was making the right decision for the community and the state.”
“The development will provide new business opportunities in the north Brisbane-Moreton Bay regions and contribute to growing and stimulating the construction industry,” he says.
Seeney said he believes Costco will be good for Queensland.
“I formed the view that this development contributes to the future economic well-being of Queensland, in particular the fast growing south-east region,” he says.
“We need to ensure that applications such as this do not get bogged down in protracted legal proceedings.”
Noone says while development is a bonus for Queensland shoppers, he understands Westfield’s opposition to the store opening.
“Everyone has a right to question the planning laws, it’s just something we work through with the local authorities, and it’s part of the democratic process which we’re happy to be a part of,” he says.
Chief executive of the Retail Doctor Group Brian Walker said Australian consumers have been very supportive of Costco’s arrival.
“Costco perform extremely well in our country. The Melbourne store was one of the best openings in its history worldwide. They’re really the next generation of supermarket. We can expect 15-20 stores in the next five years,” he says.
Walker says current economic conditions have influenced Australians appetite for Costco, especially as it operates on a membership-fee basis.
“A cautious consumer is focused on value. Consumers are currently migrating to Costco and what they do well is there is including an element of the surprise, a super bargain.”
Costco first opened in Australia in 2009 with its Melbourne store. Later this year stores are also opening in the Melbourne suburb of Ringwood and another in Sydney.
Noone says the discount grocer is also looking to open a store in Adelaide.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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US bulk-goods chain Costco plans to open in Queensland next year

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New Zealand merino wool adventure-wear brand Icebreaker opened its first Australian store last night in Melbourne’s Chadstone shopping centre.
While it’s the first Australian store for the brand, it entered the Australian market in 1999 through a distributor and in 2003 established its own brand here and has since been stocked in 210 retail stockists.
The opening of an Australian brand comes as brands such as North Face, Kathmandu and Rebel have continued to enjoy strong success even during tough times for retailers.
But founder James Moon says businesses should rethink the way they view physical stores – and start offering a “deeper range” of products, but with fewer brands.
“To compete, stores need to be offer a deeper range of products, but fewer brands so they can be seen as experts. They must also be competing on customer service. But, they can use their customer data-base established in-store to grow the online business,” he says.
“Consumer expectations have been reset. That’s a fact of life. But success depends upon the core principles of the business and the quality of the product you create. The more unique the product is you create, the less likely you are to have to discount.”
It took three years for Icebreaker to make its first profit of NZ$800, but now the store is turning over more than $NZ200 million.
Moon says Icebreaker intends to expand further in Australia by increasing its investment here.
“We will be growing the wholesale and the online business here and really trying to get all of the channels to integrate around making it more fun and easy for Australian customers to explore Icebreaker.
“It’s a really important long-term pathway for us,” he says.
Icebreaker first entered the Australian market through a distributor. Chief executive of the Retail Doctor Group, Brian Walker, says the business established a presence in the country first without the risk of a bricks-and-mortar investment.
“By going through a distributor, you get to understand the local market without having to go through the logistical challenges. Without opening in the market, you get to see what sells and what doesn’t; what consumers like and don’t like.”
However, while going through a distributor helps you to research a new market, Walker says there are disadvantages to doing so.
“Going through a distributor tends to adds costs and reduces margins typically,” he says.
“There has become a real question mark over time as to the role of distributors. Now, brands could just offer their products online into the Australian market and this would give the same benefits of consumer research and data,” he says.
Walker expects Icebreaker’s expansion in Australia will be successful, but it’ll face “pretty strong competition”.
“North Face, Kathmandu, Rebel and enthusiast stores like Paddy Palin have all done good business in that outdoor adventure-wear, so there is certainly customers who really enjoy this, there is a demand for these products,” he says.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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NZ adventure brand Icebreaker launches first Australian store in Melbourne's Chadstone

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The housing market retraced some of the gains made in the first three months of the year with dwelling values falling 0.5% to a median of $485,000 over April, the latest RP Data Rismark index shows.
This follows a cumulative gain of 2.8% in property values over the March quarter.
For the three months to April, capital city house values are up 1.1% and 2.7% year-on-year with total gross returns on investment properties (capital growth and rental income) of 7.1%.
The most notable capital city decline was in Perth, where property values retreated 2.5% over April to a median of value of $499,000 with smaller declines recorded in Sydney (-0.4%, median of $565,000), Melbourne (-0.5%, $491,000) and Brisbane (-0.7%, $425,000).
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Outside of the mainland states, Hobart property values fell by 3.1% to a median of $311,500.
Adelaide was the best performing capital city property market over the month with values up 3.1% to a median of $375,000.
It also had the best performing market across houses and units over the month, with Adelaide house values up 3.1% over April to a median of $393,500.
Darwin remains the best performing capital city housing market over the past three months, with values up 5% to a median of $475,000.
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RP Data’s director of research, Tim Lawless, said the April results represented “more of a stumble along the path to recovery than a sign of a renewed trend in value falls”.
“When viewed in line with other metrics such as auction clearance rates, private treaty indicators and some improvement in housing finance demand, it is likely that the negative April result will be a blip along the path to recovery.
“We weren’t expecting that the high rate of growth evidenced over the first three months of the year would be sustained into April. A more measured pace of growth is a much more realistic outcome for the Australian housing market, especially considering that the first quarter is typically the strongest for value growth,” he said.
Rismark CEO Ben Skilbeck said the April  pullback was “seasonally typical of a market pause, meaning that if one were to take seasonal movements into consideration the market is not currently showing any downward trend”.
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Perth leads small 0.5% “stumble” in property values in April: RP Data

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The withdrawal of the $7,000 first-home owner grant (FHOG) in Victoria from July 1 could force first-home buyers in Ballarat and other regional towns to consider buying a new house on the outskirts to access greater government assistance.
But it is also likely to change the dynamics of the market, including a rush among some FHBS to finalise purchases before July 1 and then a drop off as others delay existing house purchases for up to a year to save deposit money to make up the shortfall, according to Trevor Booth, chairperson of the Real Estate Institute of Victoria’s (REIV) Ballarat Division.
Booth also expects investors may look to buy some of the established properties that vendors would have been targeting at first-home buyers, enticed also by Ballarat's low vacancy rate of under 1%.
Ballarat (postcode 3350) was the <a target="_blank" href="/news">seventh top location for Victorian FHBs</a> applying for the $7,000 FHOG with 298 applications received between July 2012 and March 2013.
More than half of these – 165 applications - were for existing home purchases with the rest for new homes.
The introduction of the  new $10,000 FHOG for new homes  from July 1 will come alongside the raising of stamp duty concession for FHBs from 30% to 40%.
As highlighted by the <a target="_blank" href="https://www.propertyobserver.com.au/trends/it-s-time-to-stop-tinkering-with-first-home-buyer-assistance-robert-larocca/2013042960826?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=first-homebuyers">REIV’s Robert Larocca on Property Observer earlier this week</a>, the removal of the $7,000 FHOG and the introduction of the higher stamp duty concession will mean that FHBs of more expensive existing properties will be less affected by the removal of the $7,000 grant than those buying cheaper homes.
A FHB of a $300,000 existing home from July 1 will lose out on almost $6,000 in government incentives while a FHB purchasing a $550,000 will lose just over $4,000.
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Source: SRO, REIV
This will particularly hurt FHBs in Ballarat where the median house price is $280,000, but will also impact on many FHBs in other key regional housing market like <a target="_blank" href="/news">Bendigo, where the median house price is $315,000</a>.
Currently, buying an existing or new home around the median price means benefits of around $10,100 ($7,000 FHOG plus the 30% stamp duty rebate).
“The changes to the grant will disadvantage FHBs wishing to purchase established home after July 1. It will discriminate against them,” says Booth.
“It may force FHBs to consider buying a new home to take advantage of fair bit of extra money which will increase demand for new housing and help the local construction sector, but it will put FHBs in the situation where they sacrifice the benefits of being close to amenities, to secure an extra $6,000.
Booth says the new housing suburbs are on the north and western outskirts of the city.
Booth says these new housing developments – being built by local companies – are around 10 kilometres from the Ballarat CBD.
With the traffic in Ballarat getting worse, first-home buyers who sacrifice convenience for government assistance, could end up paying more in petrol.
The uncertainty created by the changes to the grant and the lag time until they come into play comes at a time when, according to Booth, the Ballarat market is starting to show signs of improvement.
Booth says the worrying aspect of the grant changes are they impact they may have on the established home market.
Overall though, he says the Ballarat economy is “sound” with population growth of 2% to 2.5% per annum driven by strong IT, healthcare and university sectors.
Image courtesy of Travel Victoria.
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FHOG changes could force Ballarat FHBs into outer suburbs: Trevor Booth

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A former milk bar-cum-renovated three-bedroom gem on the border of Prahran and Windsor will go under the hammer this Saturday with a price guide of $940,000 to $1.05 million.
Located on Lewisham Road, interior designer Phillip Chester purchased the property in 2001 and transformed the property into a livable residence over the next decade with inspiration drawn from Europe.
The home, that features French doors to a north-facing courtyard, archways and rustic tiling, is scheduled for May 4 auction.
“The home has fantastic finishes, he’s really finished it brilliantly,” says agent Andrew James of <a target="_blank" href="https://www.propertyobserver.com.au/https://m.hockingstuart.com.au/buying/property/5365379">Hocking Stuart Real Estate Armadale.</a>
The 186-square-metre property also includes a self-contained home office with a kitchenette and ensuites.
James says there has been a great deal of interest in the property due to its unique offering of car access.
“I overheard one of the agents saying this property is owned by an interior designer, and wow can you sense it!" says Peter Sinclair of James Buyers Advocates.
Influenced by many designers including David Hicks and American architect Frank Lloyd Wright, Chester, after studying in Perth and working in the Northern Territory, moved to Melbourne to join Riddell Marly, one of Australia’s most distguished interior design practices. It was in 1976 when Riddell Interiors and Marly Interiors had merged to become Riddell Marly.
The duo's clientele read like a list of who's who in Australia - including Susan Sangster's famous Point Piper Sydney house, Toison d'or, the homes of three Lord Mayors of Melbourne and the Lodge in Canberra for a Prime Minister.  
 
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Former milk bar-cum-renovated Prahran residence to go under the hammer

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Performance of the listed A-REIT market is shown in Table 1.
It shows that significant positive returns have been achieved over the past three years especially in the last year.
The five-year performance is negative reflecting the substantial falls encountered during the crux of the GFC.
Volatility is also significantly lower over three years than five years reflecting more stable markets.
<img src="/images/stories/2013/04/wistapril30one.jpg" width="470" height="89" alt="wistapril30one">
The A-REIT sector has underperformed broader shares over the past five years. However, most of that underperformance occurred in year to 31 March 2009.
Over the past two years, A-REIT out-performance has been significant.  
The average annual total return for broader shares over the past five years has been 3.1% compared with -3.7% p.a. for A-REITs.  
Going in to the GFC in 2008, companies in the A-REIT sector had significantly higher levels of debt than had been employed in previous years.
Many significant companies owned property in overseas markets where asset values declined sharply.
Others were engaged in property development activities. Each of these components contributed to negative earnings. A-REIT prices declined partly as a consequence.  
Listed property companies have recapitalised balance sheets by raising new equity, selling property and reducing debt with the proceeds. As a consequence, the earnings outlook is more secure.  
Table 2 shows the average debt holdings and exposure in overseas property between 2008 and 2013 for A-REITs.
<img src="/images/stories/2013/04/wistapril30two.jpg" width="470" height="89" alt="wistapril30two">
Table 3 shows the income return from A-REITs, along with the average Australian 10-Year Government Bond yield.
<img src="/images/stories/2013/04/wistapril30three.jpg" width="470" height="87" alt="wistapril30three">
The current listed property distribution yield is 5.9% which sits significantly above the 10 year bond rate as at 31 March of 3.3% giving a premium of 2.6%.  
A-REITs have lower debt levels and reduced exposure in overseas property.
This more stable investment structure combined with high relative income yields has attracted investor interest.
As a result returns have been very strong.  At present price levels the income yields and growth prospects are attractive.
Mark Wist is senior asset consultant at <a href="https://www.atchison.com.au/" title="Atchison Consultants" target="_blank" rel="nofollow">Atchison Consultants</a>.
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