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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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The housing market recovery has broadly been underway since the end of May last year and since that time dwelling values across the combined capital cities Index have increased by 4.7% through to the end of March 2013.
Most cities reached a low point at a different time and have recorded different rates of recovery.
Darwin, at 13.9%, has recorded the largest recovery in dwelling values followed by Perth (+9.4%), Hobart (+6.9%) and Sydney (+5.4%).
At the other end of the spectrum is Adelaide (+1.5%) and Brisbane (+3.1%) where the recovery in dwelling values has been more subdued.
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While the recovery is demonstrable across each city, the only city to reach a new historic high is Sydney, where values are now 0.1% higher than their previous November 2010 peak.
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Interestingly, the Sydney recovery has largely been driven by higher unit values rather than detached house values.
Looking at the Sydney recovery by dwelling type shows that Sydney unit values actually reached a new high way back in May last year while house values remain -0.4% lower than their 2010 peak.
Based on the combined ‘dwellings’ index, Sydney values are now broadly 0.1% higher than their November 2010 peak.
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Melbourne values recorded a more severe downturn, with values peaking in October 2010 and finding a low point at the end of May 2012.
The recovery to date hasn’t been enough to offset the decline, with values remaining -6.2% lower than their 2010 peak.
The recovery has been greater across the detached housing market (+5.2%) compared with units (+3.6%).
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Of all the capital cities, Brisbane’s housing market is showing the largest gap between peak and current dwelling values.
The correction across the Brisbane housing market has been more significant than other cities and values remain -9.5% lower than when they peaked back in November 2009.
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Adelaide dwelling values remain -5.5% lower compared with their September 2010 peak.
Additionally, Adelaide is recording the smallest level of dwelling value recovery to date, with dwelling values increasing by just 1.5% between the June 2012 trough and the end of March 2013.
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Perth’s housing market recovery has been substantial, with values rising 9.4% since they bottomed out in late 2011.
The market trough in Perth was much earlier than most other capital cities, with Perth’s housing market responding to the strong state economy and population growth that can be attributed to the local resources sector as well as an exceptionally tight housing market and rapidly rising rents.
House values have recovered much more than unit values, rising by 10.0% compared with a 6.8% recovery across the unit market.
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<a rel="wp-prettyPhoto[g2023]" href="https://blog.rpdata.com/wp-content/uploads/2013/04/Perth-dwelling-values-from-market-peak-to-end-of-March-2013.jpg"></a>Hobart’s housing market has seen a recent improvement, with values now -8.7% lower than their November 2009 peaked.
Brisbane and Hobart were the two capital cities that recorded a market peak the earliest (both in November 2009) and it is no coincidence that it is these same two cities that are recording the largest gap between peak and current dwelling values.
The Hobart market bottomed out only recently (October 2012) and since that time values have risen by nearly 7%.
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Darwin’s housing market has recorded both the largest correction (values were down nearly 20% from peak to trough) and the strongest recovery with values having increased by 13.9% since they found an early low point back in January 2012.
Growth rates in Darwin have recently levelled however, suggesting the market may be starting to level.
Rents continue to rocket higher though, rising by close to 15% over the past year which suggests that yields will continue to move higher as well which could drive further value growth on the back of investor demand.
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Canberra’s housing market bottomed out quite early compared with other capital cities, in January 2012.
Since that time values are up 5.1%, which is a surprisingly strong recovery considering the local uncertainty that comes with a federal election and the recent softness across Canberra’s rental market (rents are down nearly 2% across Canberra’s house market).
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At a combined capital cities level, values still need to recover by more 3.0% before they reach a new historic high.  Based on the rate of recovery to date, it won’t be long before the housing market moves to a new historic high.
Tim Lawless is national research director of <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data.</a>
 
 
 
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tlawless-5VLUrbAk9s

The national housing market is recovering but is not yet fully recovered: Tim Lawless

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The positive flow-on effect of rising house prices on the overall economy has been highlighted in a RBA research paper exploring the relationship between home prices and household spending.
The paper finds that spending by younger, more credit constrained households is more responsive to changes in home prices than that of older households.
Mortgage lending conditions also play a key factor in household spending.
The paper arguing that if rising house prices are accompanied by more freely available credit, then the propensity for young homebuyers to spend is even greater.
“Younger homeowners are more likely to be credit as well as buffer-stock savers.
“Accordingly, loosening of credit constraints suggests a stronger link between home prices and spending for younger homeowners,” say Callan Windsor, Jarkko Jääskelä and Richard Finlay, authors of the report.
The findings reinforce the importance of the first-home buyer segment to the overall health of the economy – at a time when first-home buyer numbers are at eight year lows, according to <a href="/news">Real Estate Institute of Australia</a> (REIA).
Many blame the first-home buyer grants in NSW and Queensland that incentivise the purchase of new homes over more-desired existing homes for the drop in numbers.
The RBA report also found that young and middle-aged homeowners respond more in terms of spending, than young renters to rising home prices.
It also  highlights the importance of owning a house as a buffer against future financial troubles with households perceiving housing wealth as a “precautionary saving vehicle against unanticipated future events such as redundancy”.
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lschlesinger-FZcF9M3vE6

Rising house prices encourage younger households to spend: RBA paper

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Sydney's five-star hotel sector strengthened in final quarter of 2012 as prospective buyers line up to purchase one of its prized assets, the Four Seasons in Circular Quay.

Both the occupancy rate and average takings per room per night increased in the December quarter compared with the previous quarter, according to the latest ABS tourist accommodation figures.

Among five-star hotels in Sydney, the occupancy rate was 88.6% with average takings per room per night at $289 compared with an occupancy rate of 84% in the September quarter and average takings per room per night of $259.

Overall, Sydney hotel occupancy rates remained well above 80% in the December quarter with the ABS recorded an occupancy rate of 82.8% over the final three months of 2012 up from 81.3% in the September quarter.

The outlook for the Sydney CBD hotel market also remains strong, according to the latest quarterly Dransfield Hotel Futures report.
The report anticipates occupancy rates in Sydney CBD hotels to remain comfortably above 80% over the remainder of the decade.


The inner Sydney hotel occupancy rate is expected to hover around 85% over the next two years and will average out at 84% over the second half of the decade – the strongest across all the major capital city hotel markets.

Revenue per available room (revPAR) in Sydney is expected to increase relatively strongly over the next two years - by 7.3% in 2013 and by 7.3% in 2014 - but will then taper off in subsequent years averaging 2.6% between 2015 and 2020.

Over this time, the average room rate in a Sydney CBD hotel is expected to increase from $195 per night to $269 per night.

Eureka Funds Management has listed its recently refurbished five-star Sydney Four Season Hotel in Circular Quay up for sale with initial price expectations of around $400 million and expressions of interest closing on April 5.
Standing at 199 George Street, it is one of Sydney’s premier hotels featuring 531 guest rooms and suites, many of which enjoy picturesque views of the Sydney Harbour Bridge and Opera House.
The hotel opened in 1983 and operates under a long term management agreement with Four Seasons Hotels and Resorts with the he 5, 314 square metre site leased from the Sydney Harbour Foreshore Authority until 2078.
It ranks as 14th best out of 185 hotels in Sydney, according to TripAdvisor, with room rates starting from around $1,100 per night for a double or twin room with city view.
The distinctive zig-zag shaped hotel was designed by architects Michael Dysart &amp; Partners and is built on the site of a former colonial jail, directly below the spot where Captain Arthur Philip landed in Sydney Cover in 1788.
It was purchase by Eureka in 2006 for $225 million from Chicago-based Walton Street Capital and Four Seasons Hotels.
Walton Street Capital and Four Seasons Hotels bought the hotel - then called the Regent Hotel - for about $155 million in 1998 and spent around $60 million refurbishing the property.
 
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Eureka also owns the Rialto InterContinental Melbourne on Collins Street.
It has recently undergone an extensive $40 million dollar refurbishment program.
Interest is expected from overseas investors following a record number of hotels purchased by overseas investors in 2012. 
This week its been reported that the Malaysian group Mulpha has emerged as a leading contender for the Four Seasons Hotel Sydney, which has also attracted bids from at least two wealthy Chinese investors.
The five-star Sydney hotel is now expected to change hands for between $330 million and $340 million, with about eight short-listed parties. 
The hotel has reputedly attracted interest from the Chinese conglomerate Fosun International, which is headed by Guo Guangchang, labelled China’s Warren Buffett.
Fosun International has a 7.1% stake in Club Mediterranee and is opening five Club Med Resorts in China.
Mulpha already owns on the other side of Circular Quay having acquired the Inter­Continental Hotel in 2004 when it bought the Principal portfolio.
Mulpha and sales agents Jones Lang LaSalle Hotels and McVay Real Estate have declined to comment on the sale to the Australian Financial Review.
Last June, Hong Kong-listed Shangri-La Asia paid $352 million to fully own the Sydney’s Shangri-La Hotel in The Rocks.
This deal followed soon after the <a target="_blank" href="https://www.propertyobserver.com.au/leisure/malaysian-reit-pays-%24415-million-for-marriott-five-star-hotel-portfolio/2012061455118">Malaysia-listed Starhill Real Estate Investment Trust, paying $415 million</a> in January for a portfolio of three five-star Marriott hotels – the Sydney Harbour Marriott, the Brisbane Marriott and the Melbourne Marriott.
Last year Eureka spent $15 million refurbishing including the addition of a new restaurant and upgrades to conferencing spaces, the Executive Club Lounge, swimming pool area and lifts.
It follows an $18 million refurbishment to the Grand Ballroom.
The property is marketed with residential development potential.
“An incoming owner has the potential to develop substantial residential components at the hotel through two different scenarios, both of which are subject to obtaining necessary regulatory approvals.
“The first opportunity is to convert up to 231 existing hotel guest rooms to residential apartment units. The second concept is to build an additional residential tower on the northern end of the site,” notes the investor memorandum.
The selling agents are Jones Lang LaSalle Hotels managing director of Craig Collins and Dan McVay, chairman of McVay Real Estate,
“This is a truly unique offering. Sitting on one of Australia’s best sites, in the key corporate and tourism market, operated by one of the world’s best brands,” says Dan McVay.
“The lack of supply means that there are very few opportunities to gain a foothold in the Sydney CBD market. This, coupled with the recent refurbishment and future development potential of the site, means that there will be very strong demand from buyers for this asset,” he adds.
According to Dransfield, the Sydney inner city hotel market underperformed in the first nine months of 2012, with revPAR increasing by 1.2% over this period compared with expectations of 7.9% growth.

The latest report– for the September 2012 quarter – notes that experienced revPAR growth of 1.2% vs. expectations of 7.9% for the Sydney City region, with Dransfield attributing this to hoteliers not wanting to push up rates on stalling demand.

However, average room rates (ARR) and revPAR are expected to strengthen somewhat over 2013.
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Strong outlook for Sydney hotels as buyers line up for Sydney Four Seasons Hotel 

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“It was the best of times, it was the worst of times…” These words seem as relevant describing the Melbourne property market today as they were when written by Charles Dickens over 150 years ago in A Tale of Two Cities.
The latest RP Data stats show that overall Melbourne dwelling prices increased by 2.5% over the last quarter and have risen 4.9% since the market turned in May last year.
Not a bad result! But when you dig deeper you find there is a shortage of well-located, desirable, established apartments and houses in Melbourne’s middle ring suburbs, causing prices to rise and auction clearance rates to remain high.
But on the other hand, there is a glut of new apartments coming onto the market and a dearth of new house and land packages standing vacant not able to find buyers.
Add to this the record number of new apartments coming onto the market in some of Melbourne's inner suburbs over the next few years, which will put further pressure on the city's supply and demand ratio.
According to a recent report by valuers <a href="https://www.charterkc.com.au/" target="_blank">Charter Keck Kramer</a>, about 25,500 new apartments will be completed in metropolitan Melbourne by the end of next year, four times what was built in 2005, when the market for apartments last peaked.
And there are even more in the pipeline. Across the Melbourne metropolitan area there were about 10,250 apartment completions last year, 19,250 under construction and 16,300 being marketed but not under construction.
Many off-the-plan purchasers will be disappointed
The problem is that many Melbourne purchasers bought their off-the-plan apartments a few years ago during more buoyant times, and according to Charter Keck Kramer, eight out of ten off-the-plan apartment sales coming up for completion over the next two-and-a-half years could be facing negative equity.
Apartment prices across Melbourne have fallen between 7% and 11% in the past 12 months and even more than that in some areas of oversupply.
The potential problem for off-the-plan buyers is that, on completion, valuations will fall far short of their contract purchase price and the banks will only lend against the lower valuation. This means many buyers will have to bridge the gap, coming up with the shortfall as well as the stamp duty and acquisition costs.
If history repeats itself, some buyers will try and walk away from their contracts, accepting the loss of their deposits. But they could be in for a rude surprise if the developer on-sells the apartment at a lower price and sues the original purchaser for any loss.
 
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Melbourne house and land sales are also in big trouble
One more thing: the new house and land market in Melbourne also has a huge oversupply.
According to real estate group Oliver Hume, there has been a 29% increase in the number of residential projects being marketed on Melbourne fringes since 2006, at a time when there is a 5% decline in the number of land settlements.
Land prices have now fallen by a cumulative 16% over eight consecutive quarters, forcing developers and marketing companies to entice first home buyers and property investors by offering substantial incentives.
At the same time as experiencing an oversupply of land, these areas lack infrastructure and facilities, meaning there will be no swift recovery in the outer-Melbourne residential new housing markets.
If you want to get an idea of the huge oversupply just hop on to <a href="https://realestate.com.au/" target="_blank">RealEstate.com.au</a> and type in <a href="/news">Point Cook</a> or <a href="/news">Truganina</a> and you’ll be shocked by how many properties are for sale.
I’ll save you the trouble: Point Cook and surroundings – 3482; Truganina – 4020.
And it’s much the same for many of the northern and western outer suburbs in Melbourne.
So why are the stats showing the Melbourne property market is rising?
Considering the outer suburbs are performing so poorly, the overall figures just show the strength of the established home and apartment market in Melbourne’s inner and middle ring suburbs where there is a shortage of good properties.
Now is a time to be very selective in what you buy in Melbourne. While there are some good buying opportunities, there are also a lot of secondary properties on the market right now.
Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
 
 
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Melbourne's property market is a tale of two cities: Michael Yardney

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The level of discounting that vendors of houses in Sydney and Melbourne are offering to successfully secure sales has declined mildly, according to the latest information from RP Data.
However, the discounting to secure unit sales  in both major capital cities has increased slightly.
Successful Melbourne house vendors on average discounted their houses by 8.2% in the week to April 7, down from 8.4% the week prior.
Successful Sydney house vendors on average discounted their houses by 6.5% in the week to April 7, down from 7% the week prior.
Meanwhile, the rate of unit vendor discounting crept up in Melbourne from 6.1% to 6.7% and in Sydney from 4.7% to 4.8% over the same period.
<img height="360" width="470" src="/images/stories/2013/04/rpdatadiscountingapril12thumb.gif" alt="rpdatadiscountingapril12thumb">
The rate of vendor discounting isthe average percentage difference between the original listing price and the final selling price.
The statistics are calculated across results received by RP Data overthe past week and include properties transacted over the past four weeks.
The data is based on private treaty sales only and records without a valid sale price havebeen excluded from the vendor discount analysis.
The analysis also excludes results where there are less than 10 observations.
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Vendor discounting declines slightly in Melbourne and Sydney: RP Data

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The battle for the wallets of Australia’s DIY enthusiasts continues to rise with Woolworths reporting a 37% rise in sales from its growing chain of Masters stores in its latest sales update.
Home improvement sales lifted from $211 million in the third quarter of 2012 (the 13-week period to March 31) to $290 million in the third quarter of 2013.
Launched in 2011 in direct competition to Wesfarmers-owned Bunnings (which also own Coles), there are now 29 Masters stores trading following the opening of four new stores over the March quarter.
Masters, a joint venture between Woolworths and US home improvement chain Lowe’s, plans to expand by between 15 and 20 new stores a year "for the foreseeable future".
“The February ‘Trade Month’ proved to be a great success, with many new trade members signing up to the Masters’ program,” said Melinda Smith, director of Masters.
The success of Masters was also noted by Woolworths CEO Grant O’Brien, who said that "while conditions in the trade segment remain challenging, we continue to be pleased by the progress of this business.”
<a href="https://www.propertyobserver.com.au/new-south-wales/diy-battle-heats-up-with-woolworths-to-build-masters-store-in-marsden-park/2013040360133">Last week Property Observer reported</a> that Woolworths had securing a site at the Sydney Business Park (pictured below) in Sydney's north-west for a new Masters Home Improvement store, where it will go head-to-head with arch-rival Wesfarmers, which has also secured a site in the business park for a Bunnings DIY store.
<img src="/images/stories/2013/04/mastersapril12one.jpg" width="470" height="311" alt="mastersapril12one">
Yesterday, the premises of <a href="/news">Bunnings in Sale</a> were bought by a Melbourne family for $6.36 million on a yield of 7.5%, after being passed in at auction earlier in the day.
Last year Woolworths and Wesfarmers traded blows over a research report written consultancy Madison Cross on Masters with the report referred to the ACCC as being potentially "misleading".
"A Madison Cross report being circulated to brokers and media by a consultant associated with Bunnings is further evidence of a dirty tricks campaign being waged against the Masters Home Improvement business," said Woolworths in a statement in September last year. "Since opening its first store in September last year, Masters is providing much-needed competition in the destination home improvement sector against Bunnings who hold a market-dominant position. "Masters has created healthy competition, is winning market share and enjoying strong customer support. It appears this report is designed to generate negative, ill-informed commentary about Masters.  "This report is incorrect in its assumptions and its projections, and can only be viewed as an attempt to damage the credibility of the Masters’ business strategy." 
Despite the jump in sales, Woolworths has some way to go to catch up with Wesfarmers.
The Bunnings network currently comprises 211 warehouses, 63 smaller format stores, 36 trade centres and four frame and truss plants operating across Australia and New Zealand.
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Battle between Masters and Bunnings heats up for home improvement market as Masters sales rocket 37%

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Vendor confidence increased over the March quarter driven by strong performance in Sydney and Darwin, according to SQM research.
Vendors across the capital cities were confident enough to lift asking prices, bringing the national capital city asking prices up 1.3%.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/04/sqmapril5.gif" rel="shadowbox"><img src="/images/stories/2013/04/sqmapril5thumb.gif"></a>
But although the average asking price is up, Sydney, Darwin and Perth were the only cities with positive growth in asking prices.
Over the quarter, asking prices increased 4% in Sydney, 3.9% in Darwin and 0.1% in Perth. All other capital cities recorded reductions.
Canberra decreased asking prices by 3.8%, the biggest drop for all capital cities. Unit asking prices dropped 1.3%.
<a href="companies/sqm" target="_blank">SQM</a>’s Louis Christopher says it is clear Canberra’s market conditions remain weak.
“Overall the market was confident for the quarter however I note that there was a little more caution in the month of March,” Louis Christopher says.
“Melbourne is still recording some weakness and that goes with Canberra as well, which has most likely been affected by cuts in the Federal budget. Sydney and Darwin are leading the charge.
“However if it were not for the strong results in Sydney, it is most likely the national average would be recording market weakness for the quarter.”
In Melbourne, asking prices for house dropped 0.7% over the quarter while asking prices for units rose 1.1%.
Unit asking prices across the capital cities dropped 0.4%.
Hobart had the second strongest increase in asking prices for units, up 4.8%.
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Sydney and Darwin lead increases in asking prices: SQM

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An aged care and property development group had administrators appointed yesterday after the company collapsed as a result of long delays in planning approvals.
Riad Tayeh and David Solomons of de Vries Tayeh were appointed as administrators of the Crighton Group, which is made up of 15 companies.
The Crighton Group has been operating for over 25 years and has around 30 staff.
The companies now in administration are the Hermitage Lifestyle Resort, Crighton Properties, Myall River Downs, Crighton Building Co, Crighton Lifestyle Resorts Real Estate, Myall Quays Shopping Village, Lifestyle Resorts, Woodstock at Jamberoo, Crighton Bowral, Myall Down Angus Stud, Red Gum Grove, Laurieton Lifestyle Resort, Crighton Mudgee, Crighton Byron and Crighton Bathurst.
The company Hermitage Management has not been placed in administration and Tayeh said at this stage the retirement village, Hermitage Lifestyle Resort, will continue to operate as usual.
"In the main the group has been the victim of the slow and unyielding process of getting approvals for developments," Tayeh says.
It has taken 11 years to get zoning through for some developments and no company can survive that sort of delay, and with the prevailing economic conditions it could no longer continue to trade."
The Crighton Group's major creditors are the ANZ, Commonwealth Bank and St George.
Tayeh says the Crighton Group is "not a fly-by-night group" and at its full valuation had land holdings worth over $100 million. However, recent falls in value mean the valuation is now closer to $30 or $40 million.
"The thing that has really hampered this industry and similar developers has been the inability to get projects up and going that have been supported by the community, this is not a good thing for the industry," he says.
"You can't have something being held up for 11 years, some of the things they have to do to get these developments through are unbelievable."
Geoff Cox, founder and joint proprietor of the Crighton Group, said in the past the development industry has had to go through "a lot of nonsense" to get master plan approval from the Department of Planning.
In developing the Tea Gardens, Cox says ANZ lost patience after nine years in development.
"The land was rezoned as a residential parcel in June 2000, then three years later they brought through an embargo on residentially zoned land being developed unless subject to a master plan," he says.
"As part of that plan, we had to prepare a flood evacuation plan for 87 years' time for what would happen in the event of a 'probable maximum flood event', which is what happens when a cyclone comes through in the tropics – but we are not in the tropics."
Cox says the Crighton Group had to spend a huge amount of time going through computer modelling to prepare an evacuation plan for assumed residents in 87 years' time costing $250,000.
"When you look at the lunacy of that you think it is madness," he says.
"We were totally gobsmacked at what we had to go through. It's an example of the absolute nonsense the development industry had to go through to get master plan approval."
Cox says the problem is not with the department of planning but with the "nefarious government agencies" that developers are required to deal with.
"Now the banks have essentially stopped funding retirement development outside the metropolitan areas," he says.
The administration of the Crighton Group follows the <a href="https://www.smartcompany.com.au/buy-or-sell-a-business/054903-aged-care-business-falls-into-administration-after-being-struck-by-government-sanction" target="_blank">collapse earlier this year of Nepean Hospitals</a>, which operates two aged care centres in Victoria: one 46-bed operation in Bendigo and another 125-bed facility in Mount Martha.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Administrators appointed to $100 million NSW aged care Crighton Group

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The unemployment rate increased 0.2 percentage points to 5.6% in March, the Australian Bureau of Statistics (ABS) said today. 
This is the highest unemployment rate since 2009, but follows 74,000 jobs being created in February.
Analysts had forecast the jobless rate to be unchanged in March.
CommSec economist Savanth Sebastian says the March figures would be confusing for anyone "wondering what was the true state of the labour market".
"A stellar 74,000 jobs were created in February (which incidentally marked the best job creation in 13 years) followed by over 36,000 jobs lost in March and the unemployment rate has reached a three-and-a-half-year high.
"Such volatile swings in employment across two months certainly make it difficult to pick a trend. Clearly the answer lies somewhere in the middle.
"The more smoothed trend measures on employment, suggest that modest consistent employment gains are the defining feature of the current employment landscape.
"In fact in trend terms employment has consistently grown by between 9,000-17,000 jobs over the past six month. The job market is healthy but becalmed, and consistent with the performance of the broader economy," he says.
In its March update, the ABS reported the number of people employed decreased by 36,100 to 11,592,700.
Both part-time and full-time employment decreased, part-time employment down 28,700 people to 3,481,500 and full-time employment, down 7,400 to 8,111,300 people.
The decrease in total employment was mainly driven by decreases in male part-time and female full-time employment. The number of people unemployed increased by 25,900 people to 686,900 in March, the ABS reported. The ABS reported a seasonally adjusted labour force participation rate decrease of 0.2 percentage points to 65.1% in March.
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Unemployment rate rises 0.2% in March to 5.6%, highest since 2009

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Bankruptcies are at their lowest level in 17 years, new quarterly figures reveal, but rather than signalling improving economic conditions, experts believe it's become harder for businesses to chase debtors.

The numbers released yesterday by the Insolvency and Trustee Service of Australia indicated the national number of new bankruptcies fell 13.9% to 4774 – the lowest number for the quarter since March 1996.
Total personal insolvencies also declined by 11.11% to 7214 compared with this time last year. The largest decline of personal insolvencies was in Tasmania, where 17.96% fewer people declared insolvency.
Insolvency experts offered varying opinions why the insolvency figures were reduced, with some believing the increase in court filing fees for creditors makes chasing debtors too expensive, and others believing the process of tracking down an individual person is too difficult.
Business recovery and insolvency lawyer with Lawler Draper and Dillon, Hugh Milne, said some lawyers are now recommending some creditors not pursue debtors because of the high court costs.
"I spoke to some other lawyers recently and there has been an increase in fees to wind up a company, which is proving to be an issue. People are now thinking twice about going to the next stage of the process," he says.
The <a href="https://www.fedcourt.gov.au/forms-and-fees/court-fees/fees" rel="nofollow">cost of Federal Court filing fees</a> increased from $1983 to $4375 for listed companies on January 1 this year.
McKean Park Lawyers insolvency lawyer David Brett said the process of chasing debtors has become more expensive, but said businesses also find it a challenge to locate individual debtors.
"The costs in the courts have increased, but not outrageously so. It's just getting harder and harder to track down individual debtors."
"You ring up an estate agent trying to find a forwarding address and you're unlikely to get it because people are afraid they're going to be sued," he says.
Brett says there is also a distinction between chasing a company and an individual over debts.
"You have to differentiate between a personal debtor and a company. In relation to an individual, there are a few more processes you need to go through and this makes the process quite costly.
"With a person, before you can start chasing them for debts you have to get a court order; whereas to wind up a company there just needs to be a debt of $2000."
"With a person, it needs to be a debt of $5000 and you need a court order," he says.
"I spoke to some other lawyers recently and there has been an increase in fees to wind up a company, which is proving to be an issue. People are now thinking twice about going to the next stage of the process," he says.
The <a href="https://www.fedcourt.gov.au/forms-and-fees/court-fees/fees" rel="nofollow">cost of Federal Court filing fees</a> increased from $1983 to $4375 for listed companies on January 1 this year.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank" rel="nofollow">SmartCompany</a>.
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