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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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House prices are forecast to rise by 3.6% over the next two years to March 2015 led by WA and a rebounding Victoria, according to the latest NAB quarterly residential property survey.
Capital growth expectations in the next year are strongest in the sub-$500,000 price range, but improvements are forecast across all price levels, says Alan Oster, chief economist at NAB, who compiled the report alongside senior economist Robert De Iure and head analyst Dean Pearson.
Sentiment about the property market improved strongly over the March quarter with the index rising sharply to 35 points from in 8 points in the December 2012 quarter.
<img src="/images/stories/2013/04/nabapril11onethumb.gif" width="470" height="274" alt="nabapril11onethumb">
WA was the stand-out in terms of sentiment with its index rising from +41 points to +71 points, but there was also a strong turnaround in Victoria, with its index from -15 to +34.
Sentiment was also stronger in NSW (rising from +13 to +38 points) and South Australia/NT (-20 to +28 points).
Queensland was the only state not to register an improvement in sentiment, with its index falling slightly from +15 to +14, replacing SA/NT as weakest state.
The results of the index are based on a survey of around 300 property professionals, principally estate agents, property owners and investors.
 
<hr class="system-pagebreak">
House prices recovered in the first quarter of the year to be up 0.4%, following a fall of 0.6% over the December 2012 quarter, according to NAB modelling.
<img src="/images/stories/2013/04/nabapril11twothumb.gif" width="470" height="277" alt="nabapril11twothumb">
NAB expects house price growth to accelerate and rise 2.2% in the next year and be up 3.6% by the end of the March quarter of 2015.
However, state outlooks differ strongly with optimism highest in WA, where a 3.8% gain in house prices is forecast over the next 12 months followed by Victoria (2.4%) and NSW (2.2%).
Expectations are weakest in Queensland (1.3%).
Over the next two years, WA will remain the strongest performer (5.4%) with Victoria (3.8%) the next best.
“House price falls in Melbourne were among the heaviest in this downturn, but Victorians are now the most optimistic (after WA) with regards house price growth in the next 2 years, which are tipped to grow 3.8% (1.9% forecast previously),” says Oster.
“In NSW, property professionals see prices rising 3.5% (1.8% previously).
“Expectations were also scaled up in SA/NT to 2.8% (1.5% in December 2012 quarter) and Queensland to 2.7% (2.2% in December 2012 quarter).”
NAB modelling indicates capital city house prices will grow 1.7% through the year to March 2014 and 2.4% in the year to March 2015.
As with the state outlook, the capital city outlook varies strongly.
Price growth is strongest in Perth - up 4.2% in the year to March 2014 and 3.7% to March 2015 - and weakest in Adelaide (0.0% and 1.2%) and Melbourne (1.1% and 1.6%) the weakest markets.
“Owner occupiers are the main players in new property market, but investors - Australian and foreign - are also growing,” says Oster.
Oster notes a marked improvement in demand apparent for all types of new property but that overall demand still “relatively weak”.
He says the inner city is the most preferred location for new buyers.
Participants in new property market are still citing tight credit and affordability as “significant” constraints on new development but less so than in the December 2012 quarter.
“Improved affordability drew more first-home buyers into the existing property market in the first quarter of 2013, especially in WA.
“Stronger demand for existing property was also noted in all locations and for all property types with demand strongest for inner city and middle/outer ring houses.
“Employment security remains the biggest impediment for buyers of existing property in all states except WA, where a lack of stock is the biggest concern,” he says.
 
 
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House prices to rise 3.6% over next two years as sentiment rebounds broadly: NAB index

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The amount of time Hobart houses are spending on the market has dramatically shortened but units in the Tasmanian capital are taking more time to sell, according to the latest information from RP Data.
Hobart houses spent an average of 55 days on the market in the week to April 7, down from an average of 80 days in the week before.
Conversely, Hobart units spent an average of 83 days on the market in the week to April 7, up from an average of 59 days in the week before.
<img alt="rpdatatomapril11thumb" height="363" width="470" src="/images/stories/2013/04/rpdatatomapril11thumb.gif">
'Time on market' (TOM) is the average number of days between when a property is first listed for sale and the contract date.
The statistics are calculated across results received by RP Data over the 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 have been excluded from the vendor discount analysis.
The analysis also excludes results where there are less than 10 observations.
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po-LsXgBTHBmX

Hobart houses sell faster but apartment sales drag: RP Data

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The impact of lower interest rates on the established housing market have been noted by RBA assistant governor Christopher Kent in a speech made at the Bloomberg Australia Economic Summit this week.
Kent also highlighted the RBA’s expectation of a pick-up in non-mining investment, including dwelling investment, with mining investment likely to peak this year, but with a degree of uncertainty about how this recovery would take shape.
“As you all know, there has been a significant easing in monetary policy, starting in late 2011,” said Kent.
“There are signs that the low level of interest rates is having some of the expected effects and these are likely to have further to run.
“The effects are clearly evident in the established housing market and, as I have discussed at some length recently, this should help to underpin further moderate growth in dwelling construction,” he said.
He presented the following chart showing the recent improvement in housing affordability and the deleveraging of households in favour of higher savings since the GFC.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/04/kentapril11one.gif"><img src="/images/stories/2013/04/kentapril11onethumb.gif"></a>
Kent’s speech examined the outlook for business investment in Australia and considered the outlook for mining-related investment and non-mining related investment.
“Non-residential building activity remains relatively subdued, but prospects are that investment in building and structures outside of the resources sector will pick up gradually.
“The current growth of the population – at around 1.7% annually – will provide some support for demand.
“Not only does population growth add to the demand for new goods and services, it also gradually eats into any existing spare capacity that might be hanging over some industries and provides an impetus for investment in new capacity,” Kent said.
Kent warned that the peak in resources investment “is now close” and that once it has passed, the decline in mining investment would weigh on economic growth.
He said non-mining business investment was “currently at relatively low levels as a share of GDP” and “relatively low as a share of nominal GDP” but that it has been growing in real terms over the past two years.
“So far during the current episode, the growth of non-mining business investment has been less than it was during the early 2000s and mid 1990s, but more than it was during the financial crisis and the early 1990s recession.
“Our forecasts in the February statement on monetary policy (SMP) embodied moderate growth in non-mining business investment, which would, if it comes to pass, place the current episode in between these four earlier episodes.
Kent concluded by highlighting the RBA’s expectation of a “gradual recovery in non-mining business investment and further moderate growth of dwelling investment” but warned that the profile for non-mining business investment remains “uncertain, including because of the high level of the exchange rate”.
“The profile for mining investment also remains uncertain, though it appears that the peak in mining investment is likely to occur this year. Pulling all of this together suggests that growth for the economy as a whole will be a little below trend this year and then pick up gradually through next year,” he said.
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Effects of lower interest rates clearly evident in housing market: Christopher Kent

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Darlinghurst's tightly-held Oxford Square retail centre has been listed by a syndicate headed by veteran property developer Leon Fink with reported $70 million-plus hopes.
The low-rise Oxford Street complex site last traded in 1986 for $24.2 million when sold by the insurance company, The National Mutual Life Association of Australasia Limited.
The retail and commercial complex, built in 1969, had a 2005 renovation. It sits in the shadow of  the former Koala Travel Inn which was transformed into a 191-apartment residential project called Monument by Multiplex Living.
<img src="/images/stories/2013/04/oxfordapril11one.jpg" width="470" height="313" alt="oxfordapril11one">
The fully leased retail centre earns $5.48 million in net income per year. The list of tenants in the building include Duffy Bros Supermarket, Liquorland, Chemist Warehouse, NAB, Fitness First and Deutscher &amp; Hackett art auctioneers and gallery. The building is 100% leased.
Before outgoings, the gross rental income is $6.99 million per year.
Duffys Supermarket, on 1,425 square metres, alone attracts 1,600 customers a day to the complex located between Riley Street and Pelican Street in a densely populated area.
The commercial building on offer has a net lettable area of 12,088 square metres on its 5,446 square metre island site at 55-73 Oxford Street.
It has basement parking for 37 vehicles.
It is being sold by Jones Lang LaSalle agents Simon Rooney and Luke Harris.
According to JLL, the property has an established main trade area of 17,310 people which is set to increase with the addition of more residential developments.
<img alt="oxfordapril11two" height="329" width="470" src="/images/stories/2013/04/oxfordapril11two.jpg">
Harris says the population of the area is forecast to grow 1.5%.
Marketing for property says the centre is in a high spending power catchment with main trade area income levels significantly higher than Sydney metropolitan benchmarks, on both a per household and per capita basis - 74% and 17% above the average, respectively.
 
<hr class="system-pagebreak">
The weighted average lease expiry in the centre is 5.65 years by area and 5.56 years by gross income.
The leases are generally structured over three year terms with some ranging between two and seven year terms. The leases have fixed 3.0% to 4.0% rent increase reviews as well as CPI reviews.
The outgoings for the 2014 financial year are forecast at $1,524,791 per annum - $126 per square metre.
Internally, the layout of the common mall forms an L shape with Duffy’s supermarket located near the Riley Street entrance.
Recent sales in the area include the Castle Hill Homemaker Centre, which sold for $19 million in February, the Supa Centa <a target="_blank" href="/news">Tuggerah</a>, which sold for $23.5 million in December, the Kings Cross Centre, which sold for $24.5 million in November, and the Centro <a target="_blank" href="/news">Toormina</a>, which sold for $65.5 million in December.
The expressions of interest campaign ends on May 9. Oxford Square Investments was the investment syndicate owned by the Fink and Birnbaum families.
Click to enlarge
<a href="/images/stories/2013/04/oxfordapril11one.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/04/oxfordapril11onethumb.gif"></a>
 
 
 
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awalsh-7Ub9EypybQ

Darlinghurst's Oxford Square retail centre listed with $70 million-plus hopes

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Mid-range suburbs across Australia’s capital cities are currently attracting the greatest increases in home values, while values across the affordable city suburbs and some of the most expensive suburbs have fallen.
Across the middle-priced capital city suburbs, 60% of these have recorded growth of 1.6% over the year to February 2013, whereas values have fallen by as much as -0.9% and -0.6% across affordable suburbs, and the most expensive suburbs respectively.
<img height="234" width="470" src="/images/stories/2013/04/kusherapril11onethumb.gif" alt="kusherapril11onethumb">
The RP Data-Rismark Home Value Index results for March 2013 out last week confirmed that capital city home values increased by 1.3% over the month, 2.8% over the quarter, and 2.4% over the year.
Overall, home values have now increased by 4.7% since they reached their recent low. Based on available data to February 2013, home values increased in every capital city across the middle-priced suburbs over the 12 months excluding Adelaide where values fell by -0.7%.
It is important to remember that over the 12 months to March 2013, each capital city except Adelaide recorded an increase in home values; Adelaide home values fell by -0.5%.
On the other hand, the most affordable suburbs have recorded the weakest market conditions over the year in Melbourne, Brisbane and Adelaide whereas in Sydney and Perth, the most expensive suburbs have endured the weakest performance.
<img height="236" width="470" src="/images/stories/2013/04/kusherapril11twothumb.gif" alt="kusherapril11twothumb">
At a combined capital city level in February 2013, home values were -6.4% lower than their peak in the most expensive suburbs, -3.4% across the most affordable suburbs and just -1.6% lower across the middle market.
The most expensive suburbs have been noticeably weaker across the more expensive capital cities of Sydney, Melbourne and Perth, with values -3.9%, -11.6% and -10.1% lower than their peak respectively.
<img height="228" width="470" src="/images/stories/2013/04/kusherapril11threethumb.gif" alt="kusherapril11threethumb">
In Brisbane and Adelaide the most affordable suburbs experienced the weakest performance with values -16.3% and -10.0% lower than they were at their peak.
For the Sydney market, home values are now back above their previous peak which is highlighted by the fact that values across the most affordable and the middle-priced suburbs of the city have surpassed their previous peak.
Values across the most affordable Sydney suburbs are 2.8% higher than their previous peak, and the middle priced suburbs are 2.4% higher than they were at their previous peak.
Values across the major capitals remain below their historic highs and will need to see a significant recovery in order to return to the previous highs.
Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.rpdata.com.au/">RP Data</a>.
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ckusher-ujnxiKuFQs

Home value increases currently driven by middle-priced market

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Many investors become confused with what key characteristics they should look out for when purchasing an investment property.
Our buyer’s agency has purchased over 2,000 investment-grade properties on behalf of buyers over the last thirteen years.
So what comprises an investment-grade quality property that will ensure tenants are queuing up to lease your property ahead of other rental properties?
Location, Location, Location!!!
Some investors are lured by how “cheap” or affordable properties overseas or interstate are.
Three golden rules of property investment are location, location, location (just like the TV show!).
It must be walking distance (fifteen-minute maximum) to a train station because as Melbourne’s population grows to seven million people by 2050 and our lifestyles become busier and busier, people will want to reduce commuting times and have easy access to the CBD and the rest of Melbourne.
An investment property should be a short walking distance to lifestyle attractions such as cafes, shops, parks, beaches and any other positive amenities such as shopping centres, restaurants, and bars.
Check out a property’s walkability or walk score on <a target="_blank" href="https://www.walkscore.com/">walkscore.com</a>, which rates every property on a scale of 1 (car dependant) to 100 (walk everywhere). If the score is less than 75, you should consider another property in a location that is closer to lifestyle amenities.
Car parking
An investment property should have at least one car park allocated. A vast majority of the population still use cars for various reasons, such as visiting family and friends or going on social outings, even if they don’t use them to commute to work on a daily basis. Ideally, the car park will be “on title” and it would be a bonus to have secure or undercover parking or a garage.
Security
Do your homework on the crime rate in the areas you are looking to purchase in and there may also be certain streets in the area which are considered to be dodgy or high in criminal activities. Properties that have high security gates and fences and/or security intercom systems and alarms will be preferred by many tenants.
If you wouldn’t want your daughter living there, then you should choose a safer location. When buying apartments, avoid ground floor apartments that are more accessible to break into and choose apartment buildings with secure gates and a security entrance.
Street appeal
They say you only get once chance to make a first impression when you meet people and the same is true when a tenant first sees your property. Many tenants will use google maps “street view” to check out the street appeal of your property and could rule it out instantly if it is not a quiet, tree-lined residential location.
If the property looks shabby or rundown from the outside, many tenants will put your property towards the back of the queue. Be careful of buying properties on main noisy roads or properties adjacent to freeways or other negative amenities such as backing onto train lines, bus or tram stops, petrol stations, factories or schools.
 
<hr class="system-pagebreak">
Orientation and light
Get the compass application out on your iPhone and make sure the living areas are facing north or north-west as most tenants prefer to live in well-lit properties that are more energy efficient and that have the right orientation all year round to be have quality light without having to have the lights on all the time.
Avoid south-facing properties and properties where the living areas face east as they will only receive brief morning sun or light.
Aspect or views
Properties with a favourable aspect or appealing views will always be highly sought after by tenants. Properties that overlook attractions such as the city, water, parks and gardens will always have a certain “WOW” factor that sets them apart.
Many investors buy a property because it is “cheap” but it will always be cheap when they go to sell it too.
A savvy investor instead focuses on a quality property with views that you will always pay a bit more of a premium for, but it will be one that will usually achieve higher capital growth, better rental returns and shorter vacancy periods.  
Summary
In summary, buying an investment-grade quality property is about focusing on the key criteria above to set your property apart from the other rental properties competing against yours. It will remove that stressful situation for landlords of having a rental property vacant and needing to attract a new tenant.
With Melbourne’s rental market easing and the rental vacancy rate increasing by 43% (from 1.6% to 2.3% vacancy) and more than 25,000 new properties set to hit the market in the next year, it will become even more important to choose an investment property that ticks most of the boxes.
Frank Valentic is managing director of award-winning buyers' agency <a target="_blank" rel="nofollow" href="https://www.advantageproperty.com.au/">Advantage Property Consulting.</a>
 
 
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fvalentic-kJt4iZ5jDx

How to buy an investment property that stands out from the crowd

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The Westpac Index of Consumer Sentiment dropped by 5.1% in April, despite rises over the past two months and some recent positive economic news.
The move is a surprise, considering the <a href="/news">Reserve Bank decided to keep interest rates on hold at 3%</a> during last week’s meeting.
Over the previous two months consumer sentiment had risen by 9.9% and while economists believed sentiment the momentum would have slowed, a fall of this nature wasn’t expected.
Westpac senior economist Matthew Hassan said there had previously been signs of a cyclical recovery in consumer sentiment.
“The drop of 5.1% was quite surprising. Economic factors such as retail sales and job numbers in the past month had been positive and there was also just a slightly better vibe,” he said.
“Clearly there were also negatives, but given how things were tracking in sectors like the property market, we didn’t think we’d see such a decline.”
Hassan said the result shows “consumers are fragile” and the ongoing recovery is “shaky”.
“There has been more speculation about the potential for interest rates to rise, if this is the case it indicates sentiment is influenced by interest rates, which is something the Reserve Bank should be aware of,” he says.
All five sub-indexes were also down. The outlook for family finances over the next year fell 0.2%, while the outlook for economic conditions over the next 12 months dropped 4.5%.
The outlook for conditions over the next five years dropped 8.3%.
The largest decreases in consumer sentiment were from households earning an income of between $40,000 and $60,000 and from those who are renting a property.
Consumer sentiment among people earning between $40,000 and $60,000 dropped by 17.3% this month. This income bracket is the only one to have recorded an overall decline in sentiment since this time last year.
Westpac chief economist Bill Evans said in a statement consumers could be concerned over a potential rise in interest rates, with the index tracking views on ‘time to buy a dwelling’ down 11.4%.
“Rising house prices can have a mixed impact on assessments on 'time to buy' with the potential for capital gains acting as a positive, but reduced affordability for potential first home buyers acting as a negative.”
“However, the sharp decline in April may be further evidence around the fragility of the consumer and its nervousness around any suggestions of rising interest rates,” Evans says.
The RBA is due to meet on May 7 and Evans does not expect there will be a change in interest rates – but there may be a move later this year.
“The Board retains an easing bias but the tone of various communications from the Board suggests it is comfortable to remain on hold. Westpac is forecasting that growth in the Australian economy in both 2013 and 2014 will be around 2.5%, well below potential of around 3.25%.
“With inflation firmly under control that suggests that there is a need for the economy to get more stimulus. Accordingly, we expect that rates will come down further in 2013,” Evans says.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Westpac index records 5.1% drop in consumer sentiment

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Before you commit to a commercial property purchase, it is important to establish what funds you actually have available to invest.
It's certainly not a complicated process – but a vital one, nonetheless.
You see, many investors tend to overestimate – and some will even underestimate – the amount of the funds they may have available. That immediately impacts upon the value of the property you can acquire.
There are two key mistakes you can make:
1. Unwittingly underestimating your equity. When starting out, many commercial property investors tend to only consider the amount of ready cash they've got on hand. Whereas, you will generally find you have access to considerably more than you think. You might already have a home you own, and perhaps an apartment as well – even though there may be existing mortgages involved.
By talking with your finance broker (who should already be part of your consulting team), you will most likely to be able to restructure your current borrowings. In that way, you can release additional funds to add to your available equity.
2. Overlook some of your acquisition costs. On top of the purchase price, you also need to allow for things like stamp duty, legal costs, a valuation and so on. Depending on in which state you purchase, your "on-costs" will range between 6.5% and 7.5%. Therefore, I suggest you allow 8% on top of the price in order to provide for a comfortable safety margin.
You need to remember that your loan is based on a percentage of the property's value. However, the on-costs need to come out of your own pocket. As such, you need to ensure there are no surprises when the time comes to settle on your property.
Bottom line: trying to factor in all of this can become a little confusing. Unless, of course, you do it on a regular basis or already have access to some software to handle these calculations for you.
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 href="https://property-edge.com.au/" rel="nofollow" target="_blank">Property Edge Australia</a> to help you get the most out of your commercial property investing. 
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Accurately determine your available funds before investing in commercial property

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The resurrection of the former debt-laden shopping centre owner and manager Centro into Federation Centres appears complete with Goldman Sachs upgrading its recommendation for the A-REIT from ‘neutral’ to ‘buy’.
Goldman Sachs A-REITs analyst Simon Wheatley says Federation Centres is now trading at a 6% premium to its net tangible assets of $2.22, but says this is justified due to its earnings per share (EPS) growth profile.
In his latest monthly A-REITs report, Wheatley notes the forecast EPS three-year compound annual growth rate for Federation Centres is 6.9% – among the highest of A-REIT stocks covered by Goldman Sachs “with potential further upside from acquisitions and development activity”.
“Federation Centres forecast 5.6% dividends per share yield (based on an 85% payout ratio) compares to the sector average of 5.2%,” says Wheatley.
“Overall, we think that Federation Centres has earnings catalysts in the short to medium term that many of its sector peers lack.”
Factors that led Goldman Sachs to upgrade its recommendation on Federation Centres include the ongoing simplification of its syndicates business, asset acquisitions, non-core asset disposals and the rollout of its $1.1bn development pipeline.
Federation Centres plans to develop 16 shopping centres over the next five years.
The A-REIT reported an <a target="_blank" href="https://www.propertyobserver.com.au/retail/federation-centres-emerges-from-centro-with-stronger-balance-sheet-and-back-in-the-black/2013021959432">interim net profit $115.91 million for the six months to December 31</a> - its first complete first-half results under its new Federation Centres brand.
This compared with a loss of $100 million recorded in the previous corresponding period, when it was known as Centro Retail Australia.
Federation Centres also reported a healthy balance sheet with its gearing down to 29.9% after entering into a number of joint-ownership agreements.
The Federation Centres portfolio comprises 78 properties valued at $6.6 billion with an occupancy rate of 99.5%.
It continues to simplify its previously complex mix of unlisted shopping centre syndicates with $548m of assets acquired by the group and $438m sold on market.
The company expects $1.2bn of assets expected to be transacted by 2015 with $500m to be sold on market and $700m potentially acquired by the group, subject to further capital recycling initiatives.
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Federation Centres resurrection complete with Goldman Sachs buy recommendation

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UK menswear designer Peter Werth has signed a short-term lease to open a pop-up shop in the Howey Place shopping arcade in the Melbourne CBD.
Howey Place is a short, narrow covered laneway, running south from Little Collins Street between Swanston Street and Elizabeth Street.
The 9 Howey Place tenancy comprises a 33-square-metre premises taken on a short-term lease.
The rental was not disclosed however recent deals along Howey place have been transacted around the $4,000 a square metre plus GST mark.
The deal was brokered by Savills Australia retail director, Michael Di Carlo, alongside colleague Jeremy Marmur.
Peter Werth currently has an in-store outlet at Myers, also in the CBD.
According to Di Carlo, Peter Werth wished to test the market with a pop-up store. 
"<a target="_blank" href="https://www.propertyobserver.com.au/retail/pop-up-shops-on-the-rise-as-melbourne-retail-vacancy-rate-falls-cbre/2012032353993">Pop-up stores</a> have become very popular as a means of testing the market with a view to establishing a more permanent presence and we’re now seeing that concept defined by the length of the lease term as much as the style of tenancy,’’ Di Carlo said.
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