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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

<html><body>
Units in Brisbane and Adelaide spend more time on the market than any other Australian capital city, according to the latest information from RP Data.
Brisbane and Adelaide units spend an average of 93 days on the market, according to data for the week ending February 24. Houses in the Queensland capital don't sell that much quicker with an average of 88 days on the market, while Adelaide houses take 85 days.
By contrast, Sydney and Canberra houses spend the least time on average on the market, at 70 days. Sydney units typically take 59 days to sell, the quickest sale type in the country.
<img height="356" width="470" src="/images/stories/2013/02/rpdatafeb25chart.gif" alt="rpdatafeb25chart">
'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.
</body></html>

po-LsXgBTHBmX

Brisbane and Adelaide units spend highest time on market: RP Data

<html><body>
FKP Property Group has sold its 15-level A-grade commercial office building at 465 Victoria Avenue, Chatswood for $92 million prior to incentive adjustments.
The sale to Hines Global REIT represents a $2.5 million premium to FKP’s 30 June 2012 book value.
<img alt="fkpfeb25one" height="441" width="470" src="/images/stories/2013/02/fkpfeb25one.jpg">
Its reflects a passing yield of 7.79%.
FKP Property Group acquired Vero Tower, as it was then known in August 2007, for $98 million. The purchase price represented a price per square metre of $6,465 and initial passing yield of 7.2%.
The building first sold in 1998 for $78 million and then in 2004 for $86 million.
The A Grade building was purpose-built for insurance group Royal Sun Alliance in 1995.
The building is situated close to Chatswood Interchange, which services about 70,000 commuters per day.
The US property giant Hines last year looked at buying Civic Tower in Sydney’s central business district for about $130 million but it did not proceed.
</body></html>

jchancellor-FAypfDUnLy

FKP sells 465 Victoria Avenue, Chatswood to Hines REIT

<html><body>
Accepted economic theory suggests that cuts to interest rates stimulate housing markets and the economy, since lower mortgage payments open up the housing market to a larger pool of purchasers. The theory suggests that with more money in their pockets, consumers will either spend or invest. Housing serves two masters — arguably poorly — as an investment (a store of value) and a necessity (shelter).
As the number of commercial exchanges increase, opportunities emerge which drive the economy. Additional staff are hired as new businesses open and existing ones expand, which in turn creates further demand and spending — hopefully within Australia rather than as leakages to imports, travel or internet retail. Business funding costs are lower, which should benefit the whole economy, especially the credit-hungry construction sector, setting in train a strong multiplier, estimated at around 2.8 for NSW — i.e. for every $1 spent in residential construction another $2.80 is generated and spent elsewhere in the economy. Growth begets growth as the economy beats a path to its natural constraints. Or else inflation sets in. Or the RBA put up interest rates. Or there’s an election.
An initial boost to housing affordability occurs, as lower mortgage costs attract a larger pool of potential buyers — raising a paradox in Sydney, as affordability without additional supply is the last thing the city needs. Since housing supply is finite and slow to respond — i.e. increase — in the short term, this reduces the effectiveness of the “cheap money” as purchasers are crowded out of the market and prices are driven up. But, in an appreciating market, project feasibilities “stack up”, encouraging construction and new housing supply is (eventually) delivered. Anyone who has witnessed the glacial progress of a DA through council will note the overlap between the short and the medium term stories, which I hope I’ll be forgiven for.
Sound as this line of thinking may well be, we just haven’t seen the expected result in housing markets (or the economy for that matter) as median prices have generally tracked sideways despite successive RBA rate cuts. Why? Well, the short answer; “it’s the economy…” or more specifically, the rate cuts have mostly quelled vendor discounting, but have done little to exorcise our collective fears and pessimisms. Consumer confidence fits hand in glove with an appreciating housing market.
Put simply, the non-mining part of the economy — i.e. most of the rest of us — has been living in a phantom recession; while the economy in the macro sense has been spared widespread unemployment, some sectors (particularly currency sensitive ones) have contracted, while old economy retail is doing it very hard and confidence is at a low point. Under such a dark and heavy cloud, investors are unwilling to speculate (oops, invest) and their focus is on paying down debt — and specifically, shoring-up equity in the family nest egg by selling-off holiday houses, online discounted shopping, and so forth. Similarly, banks have reigned in risk, drip feeding token portions of the RBA rate cuts to existing borrowers while scrutinising every new loan application and strangling the economy of credit. And this is what is meant by low consumer confidence — a self-fulfilling Mayan prophecy of doom and gloom.
The current economic norm is an emerging cautious conservatism as the weight of funds shifts to wealth preservation mode with an aging population is likely to reiterate this. After the debt-fuelled orgy of the early noughties, borrowers are building buffers into their loans to uphold the one non-malleable constant of Australian investors — you don’t lose the family home. The <a href="https://www.rba.gov.au/publications/fsr/boxes/2012/sep/b.pdf">RBA reports</a> that some 15% of borrowers are ahead in their repayments by two or more years while 40% are ahead. The data indicates that borrowers who are ahead in their payments tend to be older and have higher incomes. This is consistent with where they are up to in their life’s journey — having had more time and/or income to accumulate such buffers and potentially fewer/diminished commitments (e.g. adult children). This is the Baby Boomer generation getting their pre-retirement house in order. Literally. The effects of this are visible in discretionary housing markets as holiday houses and hobby farms were jettisoned.
Returning to the interest rate story, there is a tenuous — at best — correlation between interest rates and house prices. The following chart examines the relationship between the change to interest rates and the change to the nominal median Australian house price — taken as the weighted average of the six capital cities. Quite an abstraction, to be sure, especially when the median house is the one you’ll never buy. Prices naturally fluctuate from month to month because of seasonality and other factors. Median nominal prices are a relatively crude instrument, because they aren't adjusted for inflation, they lump numerous local markets into broad geographical areas, and they don't account for variations in the mix of homes sold, a weakness that can tilt the median up or down. Nonetheless, median prices often are looked to as a broad measurement of housing market trends.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2013/02/bregozzofeb25chart.gif" rel="shadowbox"><img src="/images/stories/2013/02/bregozzofeb25chartthumb.gif"></a>
For the past 32 years to 2012, the annual change to nominal house prices may be explained by changes to interest rates for some 37.8% of the time. But, the story doesn’t end here, what’s really interesting is that for part of the time the correlation is negative — when rates go down, prices go up and vice versa — while for part, a positive correlation, and for part of the time there is no correlation. And when the data is examined on a quarterly basis, the “relationship” becomes even more tenuous 12% correlation. Further, when comparing of the annual change to interest rates and real house prices the correlation is 20.7%.
<a href="https://www.propertyobserver.com.au/residential/interest-rates-do-little-to-influence-australian-property-prices-catherine-cashmore/2013011358683/Page-1?utm_campaign=newjonathan%2Fjoye&amp;utm_medium=aida&amp;utm_source=po&amp;utm_source=Property+Observer+List&amp;utm_campaign=b0ca95adfb-January_14_201313_8_2013&amp;utm_medium=email" target="_blank">Catherine Cashmore </a> rightly noted the low correlation between property prices and interest rates; surprising to many, but actually the topic of a number of academic papers. What needs to be recalled here is the statistics dictum, that: correlation does not imply causality. While interest rates have some impact on house prices, both are responding to (and participating in) something else—the economic cycle.
I think a more interesting discussion is around how the specifics of locality and population interact with the economic cycle as these are key drivers of price to a local level. So, should interest rates as a measure of the housing markets be thrown out the window? Well, not entirely, for there are (at least) two notable areas where they are still useful — the building cycle and housing affordability. There is a strong connection between rate cuts and the building cycle as interest rates are a short term driver of the construction cycles. And the connection between the cost of money, the supply of housing, prices and rents neatly returns us to the beginning of this article. Thanks for reading. 
Martin Bregozzo is a property economist with <a href="https://www.bis.com.au/" target="_blank">BIS Shrapnel.</a>
</body></html>

mbregozzo-j6q7uYzhAT

Only a tenuous link between RBA rate cuts and house prices: Martin Bregozzo

<html><body>
Oops. We referred in last week’s edition to the Australian <a in_rurl="https://i.trkjmp.com/click?v=QVU6MjkxMDg6NzI2OnN0b2NrIG1hcmtldDo3OWMwOWNmYzMxZTY0OGMxODFjYTE4NGNlMDVlODIxNDp6LTEwNjMtMTAzMTczOnd3dy5yd20uY29tLmF1OjIzODQ4OjkwOGVjZmFiMzRkMDU1YmE1NTM1ZDJmNGM3ZWU1ZmI1" href="https://www.rwm.com.au/news/" title="Click to Continue &gt; by Browse to Save" id="_GPLITA_0" target="_blank">stock market</a> being off to a swashbuckling start when it broke the psychological 5000 barrier – what a difference a week makes. Last Thursday, the 'shock market' wiped $30 billion although I am at a loss to understand why this would be termed ‘Super Thursday’? I would think a more appropriate name would be ‘Hedge Thursday’, given it was the hedge funds who were cashing in. Investors who have ventured back into the 'shock market' are only in pursuit of fully franked yields – which are a long-term hold. The benchmark S&amp;P/ASX200 index fell 2.03% to 4995 points. Alas, no fear – by the time you're reading this those ‘psychological’ 5 points will have been found. Problem solved!
That’s enough of the 'shock market' for us, given our property markets are identifying a completely different market response. In years gone by, the share market would boom then the profits were realised and then transferred into the property markets. We have not seen this trend for quite some considerable time, so we very much doubt this will happen in 2013, nor anytime over the next five years. Baby Boomers are focused on their super funds, hence chasing fully franked yields. The entry markets (otherwise known as First <a in_rurl="https://i.trkjmp.com/click?v=QVU6MzM5ODQ6MTk5NTpob21lOjc5YWM1MmVhMDhmODBmOGI5ZjQyM2Q2YzhlNzk5OGI2OnotMTA2My0xMDMxNzM6d3d3LnJ3bS5jb20uYXU6MzQyNzM6ZWFlZTQ3NTJmOGJlYTgzYTcxMTk0ZmNlMWY5ZThiZGE" href="https://www.rwm.com.au/news/" title="Click to Continue &gt; by Browse to Save" id="_GPLITA_2" target="_blank">Home</a> Buyers) have left property markets –<a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/First-home-buyers-fail-to-shine-in-2012-4X9ZA?OpenDocument" title=" rate cuts, incentives fail to lure first home buyers. RP Data reported"> rate cuts, incentives fail to lure first home buyers. RP Data reported</a> figures showed an annual average of 117,686 housing commitments to first home buyers between 2000 and 2012. Housing finance activity by first home buyers (in 2012) was 17% below the average.
So where have they gone? <a target="_blank" href="https://www.propertyobserver.com.au/residential/rental-market-tightens-in-january-to-national-vacancy-rate-of-19-mainly-due-to-seasonality-sqm/2013021959430" title="Rental market tightens in January to national vacancy rate of 1.9% mainly due to seasonality: SQM. ">Rental market tightens in January to national vacancy rate of 1.9% mainly due to seasonality: SQM.</a> The national vacancy rate tightened by 0.4 percentage points from 2.3% to 1.9% over January, with just over 54,000 properties available for rent across the eight capital city markets, compared with 63,000 in December. It should be noted that our total markets are approximately divided into thirds – one third rent, one third own a home without a mortgage and the final third own with a mortgage.
Last week, APM Research released their <a target="_blank" href="https://www.domain.com.au/content/files/Camilla/Domain%20market%20update%20report%20Jan%202013.pdf" title="Housing Market Report">Housing Market Report</a> – Australian capital cities and Gold Coast property market. In a nutshell, “positive signs continue to emerge in 2013 – Australia’s housing markets will build on the improved performances recorded in 2012”. Let me preface that with when the housing market booms it historically takes approximately a decade before we see over – heated markets again. This would then suggest that we won’t see a bull property market in Sydney until 2017.
<a target="_blank" rel="attachment wp-att-7452" href="https://www.rwm.com.au/2013/02/first-home-buyers-going-going-gone/21-02-2013-10-34-18-am/"><img height="167" width="470" src="https://www.rwm.com.au/wp-content/uploads/2013/02/21-02-2013-10-34-18-AM.jpg" alt="21-02-2013 10-34-18 AM"></a>
<h4>SYDNEY</h4>
<ul>
<li>The Sydney market continues to provide positive indications of increasing buyer activity although the prestige markets remain dormant.</li>
<li>Latest ABS data for November 2012 revealed the highest monthly loans approved for non – first home buyers in New South Wales for five years.</li>
<li>By contrast first home buyers in New South Wales have gone missing with the latest ABS loan numbers at the lowest level for 20 years. This result is however no surprise given the surge in demand from first home buyers at the end of 2011 and into 2012 motivated by changes to state government buyer incentive programs.</li>
</ul>
<a target="_blank" rel="attachment wp-att-7453" href="https://www.rwm.com.au/2013/02/first-home-buyers-going-going-gone/12-02-2013-10-40-10-am/"><img height="319" width="470" src="https://www.rwm.com.au/wp-content/uploads/2013/02/12-02-2013-10-40-10-AM.jpg" alt="12-02-2013 10-40-10 AM"></a>
<a target="_blank" rel="attachment wp-att-7454" href="https://www.rwm.com.au/2013/02/first-home-buyers-going-going-gone/12-02-2013-10-26-48-am/"><img height="557" width="470" src="https://www.rwm.com.au/wp-content/uploads/2013/02/12-02-2013-10-26-48-AM.jpg" alt="12-02-2013 10-26-48 AM"></a>
Hallelujah – Mosman houses finally score a century, albeit a month behind 2012 data.
Robert Simeon is a director of <a target="_blank" href="https://www.rwm.com.au/" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
</body></html>

robertsimeon-hRNTwJyXkQ

Mosman houses finally score a century albeit a month behind 2012 data: Robert Simeon

<html><body>
I must have missed when price quotes became a state secret because – barring a few exceptions – they used to be listed on just about every property advertisement for sale.
Anyone in Victoria who has searched though one of the online real estate websites recently will understand what I’m talking about –and judging from Australia’s real estate obsession with property and wealth building it would no doubt be a fair few million.
Putting a price on a real estate, particularly with homes offered as private treaty, is not difficult.
Ideally, an assessment of the property is undertaken by the sales agent – one familiar with market sales in the immediate locality – and in conjunction with the vendor, a price is set that produces a happy balance between both vendor expectation and local comparable sales.
If interest is lagging in the two weeks following, the agent can negotiate with the vendor to reduce the range.
If sales enquiry is healthy – or an offer in excess of the range is achieved and subsequently rejected – the agent has the ability and ethical responsibility (in conjunction with their vendor) to change the quoted range to reflect the heightened level of interest.
For a proportion of agents acting within their “reasonable” duty of service, this still is the norm.
However, now it seems – in Melbourne at least – every second advertisement you click upon, whether auction or private treaty, has “contact agent” in bold letters underneath the subheading “price”.
An enquiry then produces a roundabout of guessing games with somewhat wishy-washy lines totted out, such as “it’s too early to tell”.
In other words, the agent is indicating he has no idea where to place his price quote, because Joe Blogs hasn’t yet walked through and in some occurrence of pure fiction (which I have yet to see with my own eyes) stopped to tell the agent exactly what he’s prepared to offer.
While we all agree in part that a market can only be valued on what a buyer is prepared to pay, this is precisely why sales agents appraise property against recent comparable market sales in the first place.
When combined with good local knowledge, a market appraisal will give the agent a very good indication of buyer demand – at least to the degree of being able to publish a negotiable price range that falls in line with vendor expectation at the outset.
I should pre-empt before going further that a proportion of agents I speak to will give me a realistic idea of vendor expectation upon enquiry – however, after years of complaints within the industry regarding those who still choose to lowball their price ranges or quote using a ‘+’ price that can mean anything from 5-30% – it seems the practice has now moved into the verbal domain, allowing a number of agencies to continue their lines of deceit with no fear of reprimand.
It’s time we valued the ethical side of our sales industry with a little more seriousness than pricing an auction on e-bay. The continual problem with different methods of quoting – or lack thereof – runs to the very base of mistrust most buyers have against the real estate industry as a whole - and it’s a brush that tars us all.
Furthermore, considering the current atmosphere, in which Victoria has been through roughly two years of minimal movement in actual house prices with the market barely shifting week to week (that is, unless you’re following the “daily house price index”, which seems to bump along, offering its own short-term interpretation of price growth). No agent can use the excuse that he’s been caught out by any dramatic shift in market movements or buyer sentiment. Most homes are selling at their comparable appraised value, and they have been doing so for an extended period of time.
It seems silly to point out the obvious, but no buyer likes to play guessing games when it comes to putting a price on an advertised listing – and neither should they have to. Everyone understands real estate is a negotiated asset, however, the verbal game playing that now surrounds the sales industry in Victoria is often laughable – ranging from “we don’t know yet” to “properties in the area are selling in the $400,000 and $500,000 range” – an insulting response at best.
 
<hr class="system-pagebreak">
 
If we were operating in an ideal world, buyers would ignore price quotes altogether and do their own research to establish market value prior to spending hundreds on a pest and building inspections or solicitor fees chasing an unobtainable dream. However, closely comparable sales data is not readily available for buyers.
Computer-generated “estimates”, <a href="https://www.propertyobserver.com.au/industry-news/friday-feb-15-observer-why-you-should-not-rely-on-property-data-reports-patrick-bright/2013021459354" target="_blank">as Patrick Bright pointed out last week </a>– are, more often than not, hopelessly inaccurate.
Suburb reports are equally unhelpful, and while median data will give an indication of the dollars the majority market is spending, it’s no help when evaluating individual property prices.
In Victoria auctions often result in “undeclared” results, and private sales are just that – private. The street name will be listed, but the other relevant and essential data is missing.
Using a buyer advocate who has access to such information combined with the market knowledge to offer an educated opinion is one option – however, unless we’re going to place a rule of law that every single buyer should pay a few thousand for such a service, it’s reasonable to suggest buyers deserve a “hint” of vendor expectation by way of an accurate price quote before wasting time and money chasing a dream.
A handful of agencies dealing with the more volatile luxury end of the market, in which interest is discretionary, understandably choose to sell via expressions of interest. However, the decision to drop the quoted range all together from a large percentage of real estate advertisements seems, in a good number of cases, to have been employed as “self-protection” from accusations of “underquoting” – a feature of which results in the price published bearing no relation whatsoever to the vendor’s reserve.
Vendor expectation can often be inflated.  It’s made worst by the commission based competition that rages between real estate agents and their respective agencies – it unfortunately promotes the need to buy a listing or risk missing out to a competitor who promises more. There then follows a process called vendor education – where high expectations are hopefully modified.
In Victoria, if the vendor does not disclose the reserve on the documentation, quoting below the written estimate of market value on the authority is officially “underquoting”. With no reserve written, the written estimate does not necessarily need to reflect vendor expectation.
It may not be admitted as such, but when agents list a property it is common practice to encourage the vendor to withhold their reserve price. This enables a conservative estimate of value – as either a verbal or published quote range – to glean as much buyer enquiry as possible.
The idea is sold to the vendor via explanation of the “buyer pyramid” – it works a little like step quoting – get the lower priced bidders to build momentum during the auction to fuel those bidding with healthier bank accounts to step in at the end.
Without the lower budget bidders, auctions can pull up short without the usual frenzy that has in our boom eras of growth significantly contributed in pushing prices to unsustainable levels.
Needless to say, by the time the auction occurs any gaping hole between the quote and reserve can be waved off with the excuse that the vendor changed his mind – or ‘upped’ expectation.  Hence why it is so easy to get away with purposefully placing the price range below the level at which you know the vendor will sell – when the price range is verbal, it’s even easier to manipulate the figures.
To suggest that a vendor’s expectations fluctuate to such an extent as to not be represented in the price quote is highly questionable. Having worked as a sales agent in previous years, I can categorically say there was never a time where I didn’t know my vendor’s approximate reserve well enough in advance of the auction to place a reasonable quoted range on a listing from day one.
Furthermore, vendors are not without blame. Assuming the price quote is a estimate based on “recent comparable sales” and the vendor isn’t in the dark when it comes to the price quoted on his or her vendor-paid advertising campaign, why would he or she agree to list the property and quote at a level he or she would not be willing to sell in the first place?
In such instances, I would suggest this is a pretty good example of a lowball quoting – conservative at best, deceitful at worst.
This weekend I’ll be bidding on a property quoted at $430,000-$470,000. I already know from my own research of comparable data it will sell closer to $550,000 – I also know from my conversations with the agent, that over 160 groups have inspected the home and he now has “the low $500,000s covered”. The price quote has not changed throughout the campaign.
It’s time vendors took responsibility for their own paid advertising campaigns and ensured their reserves – or ranges in which they’re prepared to negotiate – are published at the outset. If minds are changed, quotes should be changed, but leaving such a large question mark for buyers who are increasingly growing frustrated at having their time, money, and energy wasted is damaging for all concerned.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
</body></html>

catherinecashmore-6LXia3pPQj

When did agent price quotes become a state secret? Catherine Cashmore

<html><body>
Sydney has ranked as the sixth most expensive place in the world to rent prime logistics warehouse space with Brisbane ranking eighth and Perth in 10th place. 
The rankings are based on equivalent US dollar per square foot comparisons with Tokyo ranking first (US$21.33 per square foot) just ahead of London (US$20.32 per square foot). 
The average cost per square metre for prime logistics space in Sydney is US$12.59 per square foot, $11.74 per square foot in Brisbane and $11.02 per square foot in Perth. 
Logistics space is generally purpose-built modern warehouse space that has been specifically developed for storage and distribution purposes and often built to meet the specifications of a certain company or industry. 
While they may be unglamorous, featureless buildings on the outskirts of the city, high yields and low vacancy rates among prime assets have made them a popular investment choice. 
This week ASX-listed commercial property group Dexus acquiring a large industrial property in Brisbane’s southwest for $21 million after a sales campaign that generated a higher than expected level of interest. 
The sale of 13,315 square metre industrial facility at 131 Mica Street in Carole Park, negotiated by Simon Beirne and Troy Whalan of Colliers International, following an expressions of interest campaign that eventuated in 11 offers. 
The vendor was Wesfarmers subsidiary J Blackwood &amp; Son Pty Ltd and the property was sold via a sale and leaseback, with Blackwoods taking on a 15-year lease for the facility plus options for a further ten years, assuring Blackwoods of continued access to this excellent location. 
Whalan said that last year was the best year on record for Colliers International in the industrial property market and 2013 is expected to be even better.
<img height="506" width="419" src="/images/stories/2013/feb_22/cbre_industrial.gif" alt="cbre_industrial">
[Correction to this table: The data for Perth should say "$114 psm pa"]
While occupier demand in Sydney remains cautious, the report highlights that a strong preference still exists for good quality, well-placed logistics space. With vacancy levels low for such stock, pre-commitment activity has been prevalent, helping to boost prime rents during the final quarter of 2012.
CBRE regional director of industrial &amp; logistics services, Joshua Charles, says the vacancy rate for existing A-grade faculties in the major Australian markets was the lowest it had been in a decade which was helping to support rental increases.
“Incentives on prime logistics facilities are now back to pre-GFC levels,” Charles says. 
“Many large retailers are re-organising their distribution networks to incorporate 40,000 square metre to 80,000 square metre ‘mother ship’ distributions hubs in each state which is helping drive new construction. In this environment, developable land has become highly sought after by industrial A-REITs, who are looking at opportunities to speculatively building warehouses to get their jump on competitors.” 
Charles forecasts additional – albeit slight – growth in rentals in 2013 and a further increase in speculative construction. 
“The high Australian dollar has increased the need for local warehousing as importers ramp up their buying and, by extension, their need for storage,” he says. 
However, he noted that e-tailing was not having the massive direct effect that many believed. 
“Instead, third party logistics groups are picking these up as additional contracts that require more storage space,” he says.
</body></html>

lschlesinger-FZcF9M3vE6

Sydney, Brisbane and Perth among top 10 most expensive prime warehouse rental markets: CBRE

<html><body>
Chinese real estate listings portal Juwai.com has extended its reach into Europe following the signing of a new agreement, which will potentially add thousands of new European property listings to the site.
Under the agreement, more than 200,000 real estate agents in 24 countries will be able to market their properties on Juwai.com, which promotes itself as the largest international property search and information platform for Mandarin-speaking Chinese consumers.
Chinese buyers make up the fastest-growing real estate buyer group in countries in Europe, Asia, the Americas, Africa, the Middle East and the Pacific. They spent US$28.7 billion on residential property around the world in 2011, a figure that is projected to climb to US$114 billion by 2015.
In addition to an affinity for Australian wineries, hotels, residential sites and houses and apartments, Chinese buyers also account for 54% of the total value of purchases in the prime central London area, with average prices of £5 million ($7.4 million).
They also bought more than 30 prestigious Bordeaux vineyards in just two years, and are the biggest foreign buyers in the central Paris, Ile-de-France area, with 16% of the market.
Juwai.com search figures show that European properties were viewed over 882,000 times by Chinese investors in January 2013.
Last year, <a target="_blank" href="/news">Australian real estate group LJ Hooker</a> started advertising its residential and commercial listings on Chinese real estate listings portal Juwai.com following the signing of a partnership agreement between the two organisations.
Around 84% of Juwai.com’s traffic is comprised of high-net-worth Chinese from within China and living in Hong Kong, Taiwan, Macau, Singapore, Malaysia and other countries.
Eric Calosci, chief executive of Previsite, says the partnership with Juwai.com will significantly increase an agent’s chance of selling their property more quickly and at a higher price.
“They will be able to tap a huge market with no learning curve,” he says.
Juwai.com co-founder Simon Henry says the pool of high-net-worth individuals in China will expand at a 20% compound annual growth rate over the next three years.
“One-third of Chinese millionaires have assets overseas.  They have a voracious appetite for overseas property investments.
“Moreover, Chinese consumers continue to flock to Juwai.com from all corners of the world, with more than 32% of all website visitors living outside of China.”
The site has also been adopted by global Chinese communities living in Hong Kong, Taiwan, Macau, Singapore and Malaysia, providing Juwai.com customers with comprehensive exposure within China and across south-east Asia.
</body></html>

Chinese real estate listings portal Juwai.com expands European property coverage

<html><body>
Australia's "Jeans Queen", Bettina Liano, has closed all but one of her Australian stores and set her sights on the United States market instead.

Liano's first store in the United States will open in New York at the end of this week as her original store on Chapel Street in Melbourne closes its doors after 24 years.
The designer has closed down her other four Australian stores, leaving only one store remaining in Sydney.
Liano told SmartCompany she wants Bettina Liano to become a global brand with international trends and styles at the core of the collections each season.
"I am just looking for volume in the market, I feel that I outgrew Melbourne in particular and I have been banging the drums for 25 years. I feel like I could do with a new audience and I'm confident that what I do is different enough from everyone else to be able to sell it [in the United States]," she says.
"I want to create a focal point here [in the US], because if you go into a new market and you don't sell anywhere they can't market you and department stores won't buy if you haven't got any marketing."
Liano says she has always been attracted to opening in the United States and to New York in particular.
"It is the fashion capital of the world and because I have always liked America and I've always liked the way they do business here," she says.
"They do retail like nobody else, and also they love denim; denim is an American thing at the end of the day."
Liano says after <a target="_blank" href="https://www.smartcompany.com.au/strategy/049928-bettina-liano-escapes-administration-and-stitches-up-a-new-deal-three-companies-that-have-hung-on-to-their-founders">fighting her way back from voluntary administration</a> the business struggled last year because of a supply delay.
"I experienced chronic delays with my suppliers. I didn't get delivery of a summer season until the first week of January so that just killed me – I don't know how long you can sell a sweater for," she says.
Liano cites the <a target="_blank" href="https://www.smartcompany.com.au/property/054256-international-retailers-keep-sydney-and-melbourne-in-top-10-most-expensive-global-retail-property-markets">expensive rents in Australia</a> as a key reason for closing her stores and says she was paying $25,000 a month in Chapel Street.
"It's sad, but I'm going to come back by the end of the year I'm going to reopen stores. I just want to pay good rent; Melbourne is not worth what they are charging at the moment," she says.
"At the moment in the States it is like repeating how I started in Melbourne, there were empty stores going cheap. In Australia, in the last 12 months, I have been on sale for the last 12 months; it is just so price sensitive."
Liano's New York store will open at 246 Mott Street in NewYork's SoHo district and she plans to open stores in San Francisco, Los Angeles and Miami.
"I saw an opportunity as they've had a recession here, it's small and the rent is really reasonable so I don't have to sell a lot of stock to break even," she says.
Liano is also developing a new Bettina Liano website but says actual bricks-and-mortar stores will always be important for retail.
"Opening a store is like a showroom, it's like a billboard, it gives people a place to go and you can communicate your offer," she says.
"Online is a focus for me but online and the real experience are not comparable. I might have been born in the 60s, [but] I don't care what anyone says, you can't touch the fabric online, you can't smell the candle burning, you can't sit on a chair and be served."
Liano says it has been <a target="_blank" href="https://www.smartcompany.com.au/retail/20110711-melbourne-jeans-label-bettina-liano-collapses">a long road back from the collapse</a> of her business but she is confident about the future for the Bettina Liano brand.
"I lost most of what I worked 25 years for, I lost millions of dollars in equity and I'm trying really hard. I'm not a crook," she says.
"They have a different attitude to that sort of stuff in America, what I have done is going to make me money. I am still here, I am still 100% in business, and I still own the business 100%."
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank" rel="nofollow">SmartCompany</a>.
</body></html>

cwaters-YrtBR88nBe

Bettina Liano closing Australian stores and selling jeans in the United States

<html><body>
Mortgage Choice CEO Michael Russell says he is certain state governments are re-assessing their first-home buyer grant schemes following dramatic falls in their share of the mortgage market.
Russell quoted ABS figures showing that from July to December, the proportion of first-home buyers taking out home loans fell from 18.6% to 14.2%.
A year ago (December 2011) their share of the market 20.2%.
Russell told Property Observer this was a "significant deterioration" and an area of "genuine concern.
He says changes to first-home owner grant schemes are not having a "particularly favourable effect".
Last year the Queensland and NSW governments withdrew the $7,000 first-home owner grant and replaced it with a $15,000 grant but only for those who buy or build a new home.
Russell says Mortgage Choice believes that all first-home buyers should be entitled to the first-home buyer grant.
"The notion of not indexing it it does not make sense.
"It needs to be indexed.
"I am sure it is being assessed at the moment, there will need to be action," says Russell.
He added that he does not subscribe to the notion that the grant has an inflationary effect - the theory that the grant pushes up house prices so first-home buyer don't actually get any benefit.
In his presentation to media <a href="/news">following strong interim results</a>, Russell noted that there had also been a declining in those refinancing, despite "incredibly attractive competitive interest rate and removal of exit fees" with the percentage of mortgage holders refinancing falling from 19.3% to 17.7%.
The good news for the market, he said was a rise in the number of homeowners looking to upgrade, with loans from this sector rising from 35 to 38.5% and the return of investors coming with their share of the market rising in both percentage of loans  and value, up from 31.4% to 33%.
</body></html>

State governments need to look at first-home buyer handouts: Mortgage Choice

<html><body>
Suite 2.06 in the art deco building at 65 York Street, Sydney has been sold for $815,000. 
Savills Australia sold the Icon House strata office space on behalf of Castle Partners Investment Bank.
“The strata market is popular with owner-occupiers as it allows purchasers to take advantage of the fall in interest rates, whilst offering the ability to own their own accommodation within the CBD without the worry of future rent increases,” Savills agent Ben Adler said.
Located on the corner of Barrack and York Streets, the 12 storey building was among the first art deco office buildings in Australia, Formerly known as James Hardie House, it was designed by Robertson and Marks in association with John Reid and Sons in 1927. It was planned in two parts; the first was completed in 1928-29, and the second in 1934-35 to a design by the same architects. The building was praised for its delicate colouring (external terracotta) and its harmonious design. The building is listed in the RAIA Registry of Significant 20th Century Buildings.
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News