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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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As tenants keenly line up, the $575 million Colonial First State development Emporium Melbourne nears its scheduled December completion date.
It will be the first Melbourne site for Japanese retailer Uniqlo, joining the likes of British retailer Topshop who will open their second Melbourne store in Emporium Melbourne.
<img src="/images/stories/2013/04/emporiumapril24two.jpg" alt="emporiumapril24two" width="470" height="277">
The quarterly update released this week by CFS confirms recent retail leasing deals with lululemon, Marcs, Saba and M.J. Bale.
Previously announced stores include Coach, Carla Zampatti, Mulberry, Scanlan &amp; Theodore among many others.
Uniqlo will lease 3,000 square metres of retail space over four floors – a larger store than the 2,600 square metre Topshop store over three levels.
Emporium Melbourne will replace the former Myer Lonsdale Street store and will offer over 225 stores of premium retail space over eight levels.
The gross leasable area of the complex is 48,000 square metres with Myer accounting for 7,000 square metres of retail space.
<img src="/images/stories/2013/04/emporiumapril24one.jpg" alt="emporiumapril24one" width="470" height="402">
Designed by Buchan Group and WonderWall from Japan, the heritage listed facades on both Lonsdale Street and Lt Bourke Street will be restored.
The complex will also link with department stores Myer and David Jones via Pedestrian Bridges and tunnels.
Emporium Melbourne is being built by Grocon and was at the heart of the dispute last year between Grocon and CFMEU.
The project commenced in February 2011 and retail trading is set to commence later this year.
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ntrotman-Et3xWpamVh

Names, names names.....Uniqlo, Marcs, Saba and M.J. Bale set for Emporium Melbourne

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A mixed-used commercial and residential building metres from <a href="/news">Bondi Beach</a> is expected to fetch over $20 million at its May 8 auction.
Located on a prime corner site at <a href="https://www.propertyobserver.com.au/https://www.raineandhorne.com.au/doublebaybondibeach/properties/275024" target="_blank">Hall Street and Gould Street</a>, the three-level building includes eight retail shops and 10 residential apartments.
It is currently home to 7-Eleven and Flight Centre, who both have long-term leases.
“Properties like this are exceptionally rare, especially in this location, which will drive highly competitive bidding and should result in this being one of the highest priced commercial properties sold at auction for many years,” says Anthony Bray of CBRE.
“This property offers the option to sell each unit off individually, or keep as an investment and enjoy growing returns currently at $1.3 million a year, plus substantial depreciation benefits.”
“This building is strata approved and offers the possibility of increasing the floor space subject to council approval,” says Bray.
CBRE and Raine &amp; Horne Double Bay agent Martin Maskin have the listing.
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Mixed-used building in Bondi Beach expected to fetch over $20 million at auction

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A New South Head Road Double Bay retail offering sold at its recent auction for $4.425 million to a local investor.
It last sold at $1.585 million in 1992 to the South Australian Investment Corporation, a trustee company directed by Jennifer Pridmore, John Hugo, Victor Hugo and Allan Farrer.
Its represented 5% annual growth over the 21 years.
<img alt="doublebayapril18one" src="/images/stories/2013/04/doublebayapril18one.jpg" width="470" height="305">
Close to the much anticipated $110 million Kiaora Lands redevelopment, it was offered vacant possession. The 425 square metre site has a 520 square metre nla.
The building has been occupied by Double Bay Clothing Warehouse for 23 years, according to the marketing. 
Its been on and off the market since 2010.
"This is the perfect time and opportunity to capitalise on this significant adjoining development and rare freehold opportunity in the heart of Double Bay," the marketing by Miron Solomons and Warren Duncan from City Commercial Property said.
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jchancellor-FAypfDUnLy

Double Bay $4.425 million retail sale after three years trying

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Retail development activity is likely to increase over the next few years, according to M3 Property Strategists.
Over the past three years, the number of building approvals has increased to above long-term averages.
Last year, Victoria had $1.6 billion of retail building approvals – the highest of any state – with NSW approvals rising noticeably.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/04/chartoftheweekapril24one.gif"><img src="/images/stories/2013/04/chartoftheweekapril24onethumb.gif"></a>
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lschlesinger-FZcF9M3vE6

Retail building approvals on the rise led by NSW: Chart of the week

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Should you be fixing the interest rate for the term of your investment loan, or simply running with the best variable rate?
Lurking behind that question is another concern: will interest rates fall any further, and if so, by how much?
The case for a further interest rate cut:
Many pundits feel the rest of the rest of the economy may not pick up the slack from the anticipated decline in the mining sector.
And that's mainly because manufacturers are still struggling on two fronts in coping with our high dollar:
1. cheaper imports make them less competitive in Australia; and
2. the high dollar makes their exports less competitive overseas.
Even though new housing construction enjoyed a 2% jump during the December quarter, it has since flattened out and may well need a boost.
The case against a further interest rate cut:
With the level of Australian household savings at a record high, a sizeable "war chest" has been created for consumers.
And after five years of doing nothing, most people have now become rather bored. They have been squirreling away funds for a rainy day, which (for Australia) simply hasn't come.
So far, it has purely been a confidence issue. But positive events have been consistently occurring over the past six months. Things like:
<ul>
<li>
A partial resolution of the US fiscal cliff;
</li>
<li>
US employment data continues to improve;
</li>
<li>
Our government has backed off its surplus commitment;
</li>
<li>
Iron ore prices have increase about 70% since September;
</li>
<li>
The EEC claims the "essential threat" to the euro is over;
</li>
<li>
Australian share prices and bond yields have risen; and
</li>
<li>
Unemployment has remained fairly steady.
</li>
</ul>
All of which would tend to indicate the only way for interest rates from here is upward.
The blip in the unemployment figure of 5.6% for March will probably provide you with a small window in which to still obtain a competitive fixed interest rate for your mortgage.
Because <a href="https://his-best.biz/does-a-solid-sales-increase-in-february-mean-the-retail-sector-is-back/" target="_blank">as we discussed last week</a>, the unexpected strength of retail sales during February is seen as a lead indicator — signifying the return of consumer confidence.
And that has also been reflected in the high clearance rates for in-city residential auctions around Australia — currently hovering between 65% and 70% each week, so far this year.
By mid-2013, this will also be fully reflected within the commercial sector, which is already starting to see a strong increase in demand.
Bottom line: you probably have about two months in which to secure a reasonable fixed rate for your investment loans. And I would strongly suggest you <a href="https://his-best.biz/commercial-property-arranging-your-finance/" target="_blank">engage a good finance broker</a> to help you source them.
Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. You can visit his website <a target="_blank" rel="nofollow" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
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chrislang-EQKojcgJPV

Now could be the time to secure a competitive fixed-rate investment loan: Chris Lang

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The Toga Group has acquired the Leisure Inn Hobart Macquarie for $13.65 million possession in a joint venture with a private equity partner with plans to re-brand it as a Travelodge Hotel.
The hotel at 167 Macquarie Street formed part of the collapsed Bluechip Properties Australia Pty Ltd group headed by <a href="https://www.propertyobserver.com.au/leisure/bluchip-hotel-chain-which-operates-under-the-leisure-inn-brand-enters-receivership/2012101657201" target="_blank">high-profile Sydney property mogul Kurt Braune</a>.
RP Data records show Bluechip acquired the hotel for $3.75 million in September 2004, spending $6 million refurbishing it between 2006 and 2010.
Bluechip was placed in the hands of receivers Korda Mentha in October last year after running into debt obligation difficulties with Bankwest the major creditor.
Other hotels in the Bluechip group include Woolmers Inn and the Waterfront Lodge in Hobart and Launceston's Penny Royal.
The hotel, built in 1968, had been listed for sale last year with price expectation in excess of $16 million, The Mercury reported in October last year.
The investor report notes that it is as “short stroll” from Battery Point, Salamanca Place and Hobart waterfront restaurant and bars.
The sale price represents an initial yield, after management fees, of 9.55% with the hotel forecast to bring in annual net income of $1.3 million in 2013.
For the year to July 2012 its earnings before interest, tax and depreciation were $1.37 million with revenue per available room of $74.
It was sold as vacant possession with an average daily rate of $107 and an occupancy rate of 73%.
It had been managed by Staywell Leisure under an agreement which was due to expire in November 2013, but with the option to acquire as vacant possession.
The hotel features 131 rooms and has an AAA rating of 3.5 stars. It includes two restaurants, a bar and parking for 38 vehicles, 14 of these spaces leased from an adjoining property.
The sale was negotiated by Rob Cross, Andrew Jackson and Scott Callow from CBRE Hotels, who said the likely intention of the purchase was to install a Travelodge branding and management agreement.
According to the investor report prepared by CBRE, Tasmania’s hotel market has remained stable in terms of supply levels, with the total number of available rooms at 2,327 available per night.
From December 2006 to December 2011, the total number of available rooms has risen by only 1.7% percent.
"A buoyant occupancy rate growth figure was experienced in the 12 months to March 2012 in the Hobart Tourism Region, with occupancy at 74.3% Average room rate saw a 4.2% increase in comparison to the 12 months prior, to $133.14," says the report.
Toga Group's hospitality management division comprises Adina Aparment Hotels, Medina Serviced Apartments, Vibe Hotels and Travelodge Hotels.
<a target="_blank" href="https://www.propertyobserver.com.au/leisure/former-labor-party-favourite-the-hotel-kurrajong-sells-for-%24765-million/2013032560034">Last month Toga Hotels and the NRMA</a> acquired Labor Party favourite, the Art Deco-inspired Hotel Kurrajong in Canberra’s Parliamentary precinct for $7.65 million at auction.
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Toga Group buys Kurt Braune’s Leisure Inn in Hobart on 9% yield

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Louis Christopher of SQM Research has highlighted a worrying trend towards increasing vacancy rates in a number of mining towns.
In <a target="_blank" href="https://www.propertyobserver.com.au/residential/gladstone-leads-dramatic-rental-vacancy-rise-in-mining-towns-sqm/2013041860501">this article</a> on Property Observer and also <a target="_blank" href="https://www.bloomberg.com/news/2013-04-18/australia-mining-town-vacancy-jump-shows-investor-risk-sqm-says">here on Bloomberg</a>, some of the larger recent rises were identified in Port Hedland, Karratha, Gladstone and Roma.
Investors in property are usually wise to seek out areas where vacancy rates are low as this can drive up rents and property prices. Interestingly, while Melbourne (2.6%) and Hobart (2.0%) recorded higher than the national average vacancy rates in March, other capital cities showed lower than average vacancy rates which in part explains why prices have been forced up a little since the middle of 2012.
Terry Ryder of Hotspotting highlighted <a target="_blank" href="https://www.propertyobserver.com.au/residential/why-now-could-be-the-time-to-buy-in-bowen-terry-ryder/2013021359332">on Property Observer</a> how vacancy rates in Queensland's Bowen, which he tipped for growth in <a target="_blank" href="https://www.hotspotting.com.au/article/2222-bowen-again-to-be-real-estate-coast-with-the-most-">2011</a>, <a target="_blank" href="https://www.smartcompany.com.au/property/20120111-mining-towns-lead-list-of-property-hotspots">2012</a> and a <a target="_blank" href="https://www.propertyobserver.com.au/residential/why-now-could-be-the-time-to-buy-in-bowen-terry-ryder/2013021359332">few times</a> in <a target="_blank" href="https://livingspace.commbank.com.au/what-to-expect-in-2013">2013</a>, have jumped alarmingly, up to 18% according to local reports.
Bowen, although in a region influenced by coal mining, is not a pure mining town per se. I haven't visited the land of the Big Mango since 2011 so any observation from me is valueless, but one assumes that the vacancy rates are largely related to seasonal agricultural work and fruit-picking, and so may only be temporary.
It's all too easy to generalise when it comes to mining towns; rather they are to be assessed on a case-by-case basis.
As someone who grew up in South Yorkshire where mine closure after mine closure devastated our pit villages mining towns are not for me,  but if you're going to invest in mining towns here are three of the risks to watch out for:
Risk 1 - Transition to production
In the resources sector it is often the case that the construction of a project is a highly labour-intensive business. But the operational phase is often a significantly less labour-intensive affair than the construction, and thus the property market dynamics duly shift.
Consequently, property investors need to be vigilant regarding projects approaching construction completion and be certain that demand for rental property will remain high. This is particularly pertinent at this point in time as the mining construction boom is finally reaching (or possibly has reached) its peak, with capital expenditure looking set to decline markedly in the 2013/2014 financial year and beyond.
A number of planned major projects or extensions have not received green ticks and therefore the decline in capex investment may accelerate faster than previously expected. Paradoxically, it is this very data set below which dictates that the next move in interest rates will be down, which in turn is likely to lure further property investors into the markets.
Throw in a benign CPI print on Wednesday and another weak Labour Force report on May 9 and the cash rate cut to a record low 2.75% could even be as soon as June 4...
<img src="/images/stories/2013/04/wargentapril24one.jpg" width="470" height="179" alt="wargentapril24one">
Source: ABS
Risk 2 - Commodity price collapse
Where a town is reliant on a single project which is highly exposed to one commodity price, be very wary. Certain commodity prices have been slammed over recent months, so you must tread only with precision.
As a former Group FC in the wonderful world of South Australian copper mining, I often cocked half an eyebrow at pundits promoting Adelaide property by <a target="_blank" href="https://www.momentumwealth.com.au/sites/momentumwealthcomau/assets/public/Media/2011/API%20Mag,%20Standing%20in%20the%20Shadows,%20March%202012.pdf">talking up</a> BHP's ambitious Olympic Dam open-cut expansion. Sure enough, it was postponed indefinitely in August 2012.
Some experts have been <a target="_blank" href="https://www.realwealthaustralia.com.au/media/vox_pops.pdf">tipping Adelaide</a> for years now, particularly the cheapest quartile of the market, but RP Data reports that prices in the most affordable sector of that market are miles off where they were back in 2010, <a target="_blank" href="https://petewargent.blogspot.com/2013/04/sydney-middle-market-surges-24-above">down some 10%</a>. In fact, of the capital city markets only Sydney's middle market has pushed on to new heights <a target="_blank" href="https://petewargent.blogspot.com/2013/04/sydney-middle-market-surges-24-above">by around 2.4%</a>, in particular unit prices which reached a new peak way back, almost a year ago.
To be fair, vacancy rates have fallen to <a target="_blank" href="https://propertyupdate.com.au/latest-vacancy-rate-figures-rise-in-some-states-and-falls-in-others/">just 1.3% in Adelaide</a> so perhaps better times lie ahead, I don't know. But <a target="_blank" href="https://petewargent.blogspot.com/2013/04/jobs-blow-for-whyalla-sa">as I note here</a>, South Australia is treading through some very choppy waters right now.
Now for sure, there is more to South Australia than Olympic Dam (and indeed resources - healthcare and defence, for example), but be mindful and remember to be healthily sceptical of areas with land potentially available for release.
 
<hr class="system-pagebreak">
The manic-depressive Dr. Copper is looking borderline suicidal at the moment (we call him Dr. Copper because he is the only commodity whose price reflects a Ph.D. in economics for predicting turning points in the global economy).
Is the copper spot mooching around down at US$3.12/lb partly reflective of increased warehouse stocks? Hmm, possible, but unlikely. Or is the market price reflecting an expected substantial weakening in demand? Much more probable.
As for investing in property in a uranium mining town...well, if that's your life's calling and that commodity gives you a warm glow, then that's your lookout. Personally, I (literally) wouldn't touch it.
<img src="/images/stories/2013/04/wargentapril24two.jpg" width="470" height="307" alt="wargentapril24two">
<img src="/images/stories/2013/04/wargentapril24three.jpg" width="470" height="302" alt="wargentapril24three">
Source: Kitco
Risk 3 - Land release
Another area that sees much press is the Pilbara region with its sky-high rental high yields and stratospheric  median unit and house prices. I don't pretend to be able to predict the future, and again I haven't visited the region in two years, but there is an inherent risk in such regions of land release (South Hedland, Karratha...) impacting prices.
With regards to the Pilbara and manic-depressive commodity prices, refer to Risk 2 above. If you buy property where median prices are already very high, then this must surely elevate investment risk, for a key element of the return on any investment is the entry price.
There is perhaps no more manic-depressive commodity price at presents than iron ore, and while Fortescue might tell you that the outlook for the commodity is bright enough (well, they would - FMG is one mightily-leveraged iron ore play after all) most commentators forecast that the price will recede.
In my opinion, the very point at which Australians sail merrily over the crest of the mining investment wave (cliff?) is a poor time to borrow other people's money for speculating in a mining town property.
You've been warned.
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/" rel="nofollow">Get a Financial Grip – a simple plan for financial fr</a><a target="_blank" href="https://petewargent.blogspot.com.au/" rel="nofollow">eedom.</a>
Image courtesy of Flickr.
 
 
 
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The three investment property risks in the challenging days ahead for some mining towns

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Eight Colliers International agents have raised $17,400 for Oxfam to help fight global poverty by braving the elements and going without sleep for 28 hours.  
The agents, Jeremy Gruzewski, Ben Baines, Hamish Burgess, Andrew Ryan, Rob Joyes, Ted Dwyer, Leigh Melbourne and Tony Landrigan, formed two teams to participate in the <a target="_blank" href="https://trailwalker.oxfam.org.au/">Oxfam Trailwalker Challenge</a> last weekend.
<img src="/images/stories/2013/04/oxfamapril24one.jpg" width="470" height="352" alt="oxfamapril24one">
Oxfam Trailwalker began in 1981 as a military training exercise for the elite Queen's Gurkha Signals Regiment in Hong Kong. It has since grown into one of the world's leading team endurance challenges, with 15 events in 11 countries.
The event launched in Australia in 1999, with Melbourne joining in 2003 and steadily growing each year since.
According to Oxfam, the 2013 Melbourne event comprised 3,024 walkers and, to date, has raised almost $2.3 million to aid in fighting poverty around the world.  
This year’s Melbourne challenge saw 750 teams walk 100km from Wheelers Hill through the Dandenong Ranges National Park to Wesburn from April 19-21.  
The Colliers International participants walked through the night, with no sleep, through seven checkpoints to complete the trail.  
Mr Gruzewski said each team had set a fundraising target of $5,000, which had been easily exceeded.  
“We’ve been blown away by people’s generosity – we’ve well exceeded our original fundraising goal and it’s a huge thrill to know that all the pain, exhaustion and blisters were worth it,” Mr Gruzewski said.  
“Oxfam do great work across the world to fight poverty, and we’re so glad the physical challenge we embarked upon will contribute, even in small way, to this very worthy cause.”  
Since November, the eight agents have endured blisters, chafing, sore legs, and shed lots of sweat in order to adequately prepare for the challenge.  
“It was a grueling challenge, which tested us not only physically but mentally and emotionally as well. We were pushed to our limits, but every step was worth it to know that we have been able to help Oxfam in their ongoing fight against poverty,” he said.
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Colliers staff join Oxfam Trailwalker effort

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Despite the attractiveness of lower interest rates and higher rental yields, the RBA expects less investor demand for investment property in coming years due to "lower trend capital gains".
This was noted by Luci Ellis, the head of RBA's financial stability department in a speech on the outlook for the property and mortgage markets delivered at the Citibank Property Conference in Sydney today.
Ellis presented the following chart at the Citibank Property Conference in Sydney today showing how rental yields, as measured by both RP Data and the Real Estate Institute of Australia, have been trending upwards while 10 year government bond yields have dipped. 
<img alt="rbaapril23one" height="439" width="470" src="/images/stories/2013/04/rbaapril23one.jpg">
“With slower trend growth in housing prices, total returns on rental properties would fall unless other things adjusted, said Ellis.
“Sure enough, rental yields, which are a real yield, have been rising in recent years. 
“They are now back to a level that seems like a more reasonable spread over long-run average indexed bond yields, given the investment risk. (And when you consider the current level of indexed bond yields, the rental yield looks even more attractive.),” said Ellis, who heads up the RBA's financial stability department. 
"But for given interest rates and rental yields, lower trend capital gains should result in less investor demand than we saw in the past couple of decades.
“Presumably this will also bring forth less construction activity than we used to see at a given level of interest rates," she said.
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Less investor demand likely for property due to lower capital gains outlook: RBA

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The RBA says housing price growth will be slower in future than in the past three 30 years.
But the central bank doesn't have a strong view about whether the ratio of prices to income should be mildly rising, falling or constant.
But they do think it is very unlikely to rise rapidly once again.
"Nor would we want to see another boom like the one a decade ago,"Luci Ellis, the RBA's head of its financial stability department told the Citibank Property Conference.
She suggested if the bank's analysis was correct Australia was facing the ‘new normal’, which implied additional changes to future outcomes.
"A second implication is that, if housing price growth is now cycling around a lower average, there will be more periods when prices are falling (a little) in absolute terms.
"This has implications for the loss given default (LGD) in mortgage portfolios.
"In my view, this vindicates APRA's decision to require a higher LGD floor than the 10 per cent minimum built into the Basel rules for banks using their own models.
"It also vindicates its decision to require higher risk weights for non-standard and high loan-to-valuation loans for lenders that do not use their own models.
"This has obvious implications for the rate of growth of bank balance sheets and profits.
"We have been making this point for a while," she said.
"Financial stability requires that the owners of banks accept that domestic balance sheet growth will be slower from here than it was in the previous 20 years or so.
"We would not want banks to ease their lending standards to make more loans and bring back the boom times.
"Nor would we want them to cut costs in a way that impinges on their risk-management capabilities."
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