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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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The CBD hotels sector continues to out-perform all other commercial property sectors with expectations dimming for offices and retail property returns, according  the latest NAB’s quarterly survey of commercial property players.
The NAB Commercial Property Index rose slightly to -17 points in the fourth quarter of 2012 from a low of -19 points in the previous quarter.
However, this was solely due to a sharp increase in the CBD Hotels index as capital growth and rental expectations fell in all other commercial property markets.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/nabsurveyfeb20.gif"><img src="/images/stories/2013/02/nabsurveyfeb20thumb.gif"></a>
“Recovery expectations also postponed in all markets, with property professionals less optimistic about prospects for longer-term capital and income growth,” says the report authored by NABs’ head of research Peter Jolly and chief economist Alan Oster.
On a state-by-state basis, WA was identified as the strongest market, but NSW the most optimistic state by the end of 2014 with Victoria lagging.
“Debt and equity funding still a problem for developers and consumer confidence continues to be identified as the main challenge for property firms in the next year.”
The results are based on a December survey of 270 commercial real estate agents and property managers, property developers, asset/fund managers and commercial property owners and investors.
The CBD Hotel Index rose to +58 points in the December quarter, with more respondents anticipating future capital value.
“CBD hotel operators are benefiting from strong demand for CBD hotel rooms and limited supply additions, which is contributing to revenue per available room (revPar) and room rate growth,” says NAB.
CBD hotels was the only sector to record a rise in capital values over the December quarter (up 1.7%) with retail property recording the greatest decline in value (-1.4%) followed by industrial (-1.2%) property.
Office property values slipped by a relatively modest 0.6% over the quarter.
The outlook is also strongest for CBD hotels with respondents anticipating capital growth of 3% over 2013 and 4% over 2014.
Modest growth is predicted for industrial property (0.3% and 1.2%) and offices (0.1% and 1.2%) with expectations gloomiest for retail property with values forecast to decline by 0.2% this year, before a modest rise of 0.8% in 2014.
NAB says the lower expectations for capital growth and rental growth in the office property market are due to the domestic economy entering a soft patch along with weaker employment conditions seen in the finance/ business/ property sectors in the latest quarterly NAB Business Survey, which has weighed down on confidence.
“With the economy continuing to weaken and unemployment set to rise noticeably through 2013, the outlook for commercial office property has also weakened,” says NAB. 
Commercial property landlords hoping for a better rental return in 2013 will be disappointed.
The NAB survey found that rents contracted in all markets in the final quarter of the 2012 led by retail (-2.1%) with rents down in all states.
Retail participants in the survey are slightly less pessimistic this quarter about rental expectations, expecting average rents to fall 1.5% this year and by 0.4% in 2014. There are more subdued expectations in the office market with rents to remain flat in 2013 and grow by 1% by 2014
Rental expectations for industrial property also revised down with rents to grow 0.8% in next year and 1.7% in 2014.
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lschlesinger-FZcF9M3vE6

Little for office and retail landlords to cheer about as commercial property outlooks dims: NAB survey

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Real estate funds manager, investor and developer Folkestone will shortly secure settlement on the sale of 41 dwellings in the first stage of its key Karratha residential development The Ranges.
Reporting its first interim results since restructuring, Folkestone announced a net profit after tax for the six months ending December 31 of $30,000 compared to a net profit after tax of $700,000 in the corresponding period in 2011 following a number of acquisitions and sales of non-core parts of the business.
Folkestone managing director, Greg Paramor said the company had been very active over the reporting period, and had completed its transformation “from a pure real estate developer to a real estate funds manager, investor and developer providing real estate wealth solutions to private clients and select institutions.”
<img alt="karrathafeb20one" height="345" width="470" src="/images/stories/2013/02/karrathafeb20one.jpg">
“Over the past 18 months, we have sold legacy assets, recycled capital and established a funds management platform that now offers listed and unlisted real estate funds to private clients and a number of institutional investors” said Paramor, who was co-founder and CEO of Mirvac from 2004 to 2008.
Stage 1 of the Ranges comprises 2.2 hectares with a “Tourism” zoning and development approval for 108 single level, one bedroom villas with pool and BBQ facilities.
Folkestone has a 25% interest in the project.
The settlements of the first 41 dwellings in Stage 1a  to individual investors is due to commence in March 2013.
The development is designed to provide accommodation to business travellers to Karratha in the Pilbara, WA’s resource heartland and the focus of a number of long?term LNG  and other resource projects.
<img alt="karrathafeb20two" height="346" width="470" src="/images/stories/2013/02/karrathafeb20two.jpg">
A further 14 dwellings in Stage 1b have been sold and a marketing campaign for the balance of the 53 dwellings in Stage 1 is underway.
Construction of a further 32 villas is expected to commence mid-2013.
Folkestone also settled on a further 7.1 hectare adjoining rear?lot to the project following negotiations with the WA Government and the local indigenous community regarding Native Title clearance issues.
During the reporting period, Folkestone acquired the Austock property funds management business.
Folkestone also completed its joint-venture (with AMP) Noone Street, Clifton Hill residential development featuring 87 dwellings in the inner suburb of Melbourne, acquired in June 2007. The final apartment was settled on September 20.
The project delivered a cash return of $9 million, of which $300,000 occurred in the reporting period.
Folkestone also launched its first real estate income fund at Sydney Olympic Park, the first in a series of such funds.
The Fund acquired a new 5,920 square metre commercial building at 7 Murray Rose Ave, Sydney Olympic Park for $29.25 million, leased to Thales Australia, as its new Australian headquarters.
Offering a commencing annualised yield of 8.1%, the high number of applications to invest in the unlisted fund meant that it closed oversubscribed.
Paramor says he expects economic and financial markets to remain “challenging but believe there will be a number of attractive investment opportunities in both the residential and non?residential sectors in the next 12 months”.
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Restructured Folkestone prepares for first Karratha residential settlements

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Of the 278,222 square metres leased in the Sydney CBD in 2012, the 'property &amp; business services' sector was the dominant sector, leasing 42% of the stock, or 115,678 square metres, according to Savills.
Demand from the ‘finance and insurance’ and the ‘property and business services’ sectors, which make up the majority of tenants in Sydney, continues to build.
The two sectors combined accounted for more than 78% of leases signed during the last 12 months totalling a massive 215,528 square metres. Much of this is precommitment for projects completing in 2015/16.
<img height="311" width="470" src="/images/stories/2013/02/feb20offices/sydney_office_leasing_2012.gif" alt="sydney_office_leasing_2012">
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Chart of the week: Who is leasing office space in the Sydney CBD?

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Shopping centre owner and manager Federation Centres has reported an interim net profit $115.91 million for the six months to December 31 - its first complete first-half results under its new brand following the restructuring of the debt-laden Centro business.
The profit 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.
Last week, in its first significant deal under its new name, Federation Centres agreed to sell half-shares in four malls and a convenience centre to the Industry Superannuation Property Trust (ISPT), one of Australia’s biggest unlisted property trusts for $371.4 million.
This follows Federation Centres selling 50% interests in three shopping centres - Galleria (WA), The Glen (Victoria) and Colonnades (SA) - to the Perron Group for $690 million in June last year.
Federation Centres expects its gearing to fall to 24.2% once it completes the ISPT transaction.
The results show the group manages 78 properties in its portfolio.
It owns 40 malls outright, 34 are parts of syndicates and seven are joint-ventures.
The portfolio is valued at $6.6 billion and has an occupancy rate of 99.5%.
It is well spread across Australian metro regions with the highest presence in NSW (34%), Victoria/Tasmania (25%) and WA (22%).
Federation Centres reported 2% growth in retail sales.
It has a development pipeline over five years of $1.1 billion – with Federation Centres' share being around half of this at $591 million.
Federation Centres also 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
Chief executive Steven Sewell said the company had “entering a new era” where it can utilise its sound financial position and work with its strategic alliances to enhance its portfolio of Australian shopping centres, “with the clear objective of providing sustainable returns for investors”.
“The portfolio continues to benefit from a strong exposure to non-discretionary spending. All retail categories showed growth, although department store sales remained subdued.
“Supermarkets and specialty retailers, which make up approximately 75% of Federation Centres’ total annual sales, achieved annual sales growth of 1.7%," he said.
"The mini major category, with 8% of sales, increased turnover by 8%. Department store sales, which represented 3% of turnover, improved by 0.1%.
“Full-year earnings are now forecast, subject to any unforeseen events, to be in the range of 15.5 to 15.75 cents per security with distributions paid to investors representing a payout ratio of between 80% and 90%"
 
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Federation Centres emerges from Centro with stronger balance sheet and back in the black

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There was a noticeable drop in the number of houses and units available to rent in January, but this is mainly attributable to seasonal factors, says SQM Research director Louis Christopher. 
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. 
All capital cities recorded tightening rental markets led by Melbourne where the vacancy rate tightened from 3.6% in December to 3% in January with 2,600 fewer rental properties available for lease. 
Perth remains the tightest capital city rental market with its vacancy rate tightening from 0.9% to 0.8% - a distressing sign for Perth renters. 
Other capital city vacancy rates are: Adelaide (1.4%), Brisbane (1.9%), Canberra (1.5%), Sydney (1.6%), Darwin (1.4%) and Hobart (1.9%). 
SQM Research points out that the January decline in vacancies is similar to that of the month’s preceding the Christmas period, “strengthening the assumption that December’s elevated figures were due predominantly to seasonality”.  
Year on year, SQM Research has record a modest national increase of 0.1% with many of the capital cities’ vacancy rates remaining relatively the same. 
Canberra and Darwin however, have recorded the most dramatic yearly differences with Canberra increasing by 0.8% in vacancies and Darwin by 0.4%. 
“Thus as it currently stands, the rental market although loosening somewhat since the corresponding period of the previous year (January 2012) remains for the most part - tight, with the majority of capital cities excluding Melbourne, continuing to record vacancy rates of under 3%,” says Christopher. 
“Having said this, SQM Research believes with a housing recovery commencing in many parts of the country, the rental crisis that many localities have been experiencing over the past 12 months, may slowly begin to be alleviated, with potential first home buyers who have been sitting tight, now beginning exit the rental market to purchase their own homes. 
“Taking into account seasonality, vacancy rates have proven to be very steady over the past two years now for the major capital cities. We note that in Hobart, there appears to be a tightening in vacancies once again, which may help existing real estate investors in what has been a severe downturn for that city.
“When considering more micro localities, there are some clear pockets of oversupply and under supply such as Melbourne’s Southbank, which is recording a very high vacancy rate of 10.9% right now.  This goes to show it is important to consider the local factors as well as the greater macro tides.”
Vacancy rates for individual postcodes are available on the SQM Research.
SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.
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Rental market tightens in January to national vacancy rate of 1.9% mainly due to seasonality: SQM

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Mixed-use development sites accounted for the highest number of properties listed for distressed sale in 2012 with the rising trend of distressed sales set to continue in 2013 - led by Queensland.
Distressed property listings surged 36% in the second half of 2012 on the back of 5,207 companies going into external administration in the first half of the year, according to a new report by Colliers International. 
Around 816 distressed properties were advertised for sale across the country in 2012, up by 5% from the 777 properties on the market in 2011.  
The second half of 2012 is expected to yield a similar number of company collapses (the monthly average to November is 900 compared with 883 in 2011) meaning a similar high number of distressed properties will be listed for sale by administrators and banks in 2013.
According to the Colliers report author Felice Spark, there was sharp spike in the number of distressed properties coming to market in the November – 177 properties compared with a monthly average of 68 in 2012 – as banks increasingly brought distressed assets to a more active market. 
While Spark expects a spike in the amount of distressed real estate coming to market in 2013, she says a market correction has taken place “with prices now having dropped as low as they can go to support sales”. 
“It is unlikely that market conditions will worsen in 2013, but also unlikely that we will see much improvement over the next 12 to 24 months. 
“With little change expected, now is as good a time as any to go to market. Recent distressed sales activity has revealed market interest from prospective buyers and prices holding strong,” she says. 
Development sites overtook industrial property in 2012 in terms of number of distressed assets on the market across Australia, followed by the industrial, commercial, residential and rural and agribusiness sectors. 
<img height="286" width="470" src="/images/stories/2013/02/distressedpropertyFeb19chart.gif" alt="distressedpropertyFeb19chart">
“While 2011 saw the number of distressed assets on the market increase across all property sectors over 2010; it was more of a mixed bag in 2012,” says Spark. 
“Three sectors, in particular, saw a big spike in the number of distressed assets coming to market; being development sites, rural and agribusiness, and mixed-use developments. 
"Pubs/hotels, retail and healthcare and retirement all saw a minor increase in distressed property," she says.
An example of a recent successful distressed development site sales ws a 1,271 square metre property <a target="_blank" href="https://www.realcommercial.com.au/property-industrial+warehouse-nsw-lurnea-500341419">at 124 Hoxton Park Road, Lurnea in Liverpool</a> in Sydney’s outer west, which sold above the reserve for $1.405 million in August last year.
It had previously sold for $700,000 in 2000 and had been listed for sale for $1.6 million in August 2007. 
The property, which is zoned for high density residential, was put up for mortgagee-in-possession sale after the owner had trouble re-financing his loan. 
On a state-by-state basis, Queensland continued to have the lion’s share of distressed property sales, increasing slightly from 2011 levels and maintaining an almost 50% share of distressed properties nationwide.  
Queensland saw a marginal increase of 3.5%, going from 382 properties to 395 properties, whilst South Australia saw an increase of 20 properties to 32 properties. 
Victoria witnessed a substantial spike during 2012 of 56%, going from 61 properties to 95 properties.
Spark says the banks have now begun pushing through, forcing properties to be put to market, with a trend towards secondary or regional-based property.
Industrial led the way in Victoria in 2012 representing approximately 40% of appointments.
NSW saw a decline in the number of distressed properties on the market, falling back slightly from 256 properties to 242 properties.
Conversely, the industrial, commercial and residential sectors all witnessed declines in the number of distressed properties on the market in these sectors.
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Distressed property listings set to spike in 2013 led by defaulting development sites: Colliers International

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The Sydney and Melbourne CBDs have maintained their rankings among the top 10 most expensive markets to rent prime retail spaces as international retailers clamour to get access to Australia’s nation of shopaholics.
International retailers are looking to open around 300 shops in Melbourne, Sydney, Perth and Brisbane over the next few years, according to figures compiled by Colliers International in a new White Paper.
Top Shop, Zara, Gap and Apple are all looking to add to their store presences while the likes of Swedish fashion store H&amp;M and Japan’s Uniqlo are all planning to open a swathe of stores in capital city markets.
Uniqlo, is leading the charge, seeking 40,000 square metres of space across 25 stores followed by Zara, which is seeking 30,000 square metres of space with plans for 20 stores and Top Shop (and its men’s store Topman) seeking 27,000 square metres across 15 stores.
Apple and Canada’s Lululemon Athletica both expect to reach around 30 stores each.
Sydney ranks as the fifth most expensive prime retail market in the world, charging on average $10,700 per square metre with Melbourne ranking eighth with an average prime retail rent cost per square metre at just under $9,000, according to the latest global rents report from CBRE for the fourth quarter of 2012.
Hong Kong is the most expensive prime retail market in the world – an incredible $46,000 per square metre – followed by New York at $31,400 per square metre.
<table cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="top" width="154">
Retailer
</td>
<td valign="top" width="154">
Space sought
</td>
<td valign="top" width="154">
Current number of stores
</td>
<td valign="top" width="154">
Planned future stores
</td>
</tr>
<tr>
<td valign="top" width="154">
Uniqlo
</td>
<td valign="top" width="154">
40,000 sqm
</td>
<td valign="top" width="154">
0
</td>
<td valign="top" width="154">
25
</td>
</tr>
<tr>
<td valign="top" width="154">
Zara
</td>
<td valign="top" width="154">
30,000 sqm
</td>
<td valign="top" width="154">
6
</td>
<td valign="top" width="154">
20
</td>
</tr>
<tr>
<td valign="top" width="154">
Topshop/Topman
</td>
<td valign="top" width="154">
27,000 sqm
</td>
<td valign="top" width="154">
2
</td>
<td valign="top" width="154">
15
</td>
</tr>
<tr>
<td valign="top" width="154">
H&amp;M
</td>
<td valign="top" width="154">
20,000 sqm
</td>
<td valign="top" width="154">
0
</td>
<td valign="top" width="154">
10
</td>
</tr>
<tr>
<td valign="top" width="154">
Williams-Sonoma
</td>
<td valign="top" width="154">
20,000 sqm
</td>
<td valign="top" width="154">
0
</td>
<td valign="top" width="154">
10
</td>
</tr>
<tr>
<td valign="top" width="154">
Apple
</td>
<td valign="top" width="154">
15,000 sqm
</td>
<td valign="top" width="154">
18
</td>
<td valign="top" width="154">
30
</td>
</tr>
<tr>
<td valign="top" width="154">
Gap
</td>
<td valign="top" width="154">
12,000 sqm
</td>
<td valign="top" width="154">
3
</td>
<td valign="top" width="154">
15
</td>
</tr>
<tr>
<td valign="top" width="154">
Abercrombie &amp; Fitch
</td>
<td valign="top" width="154">
10,000 sqm
</td>
<td valign="top" width="154">
0
</td>
<td valign="top" width="154">
10
</td>
</tr>
<tr>
<td valign="top" width="154">
Lululemon athletica
</td>
<td valign="top" width="154">
7,500 sqm
</td>
<td valign="top" width="154">
18
</td>
<td valign="top" width="154">
30
</td>
</tr>
<tr>
<td valign="top" width="154">
Hollister
</td>
<td valign="top" width="154">
7,000 sqm
</td>
<td valign="top" width="154">
0
</td>
<td valign="top" width="154">
10
</td>
</tr>
</tbody></table>
Source: Colliers International
CBRE notes that in Sydney, demand from international retailers (especially from the US) is high with “many new brands set to enter the market in 2013”.
Josh Loudoun, CBRE’s head of retail services in Australia and NZ, says Australia remains “an attractive destination for international retailers.
“New openings are performing well and fuelling demand for additional stores with international groups continuing to express interest in prime CBD locations,” he says.
Loudoun says he is seeing significant interest from international groups looking to capitalise on the proposed changes to George Street, but Melbourne remains the ‘go to’ destination mostly due to the availability of prime locations on Collins Street and Bourke Street Mall.
“Australia continues to rank highly on the world stage for rent levels, which is supported by the shortage of prime locations, and Australian retailers achieving some of the highest profit margins in the world,” he says.
“We forecast this will continue despite the pressure of on-line retailing as new market entrants will continue to fight for prime locations.”
Nora Farren, researcher and author of the Colliers White Paper, notes that of stores already opened in Australia, there appears to be an even split between high Street and shopping centre locations, with Sydney and Melbourne the preferred markets.
The average store size requirement is around 800 square metres, but ranges from just 150 square metres for boutique stores to 2,000 square metres for department stores.
The majority of international retailers entering Australia come from the fast fashion and general apparel sectors with the retailers identifying Australian consumers retailing appetite in the first instance from online sales, based on the value and volume of products being shipped to these stores.
US department stores Nordstrom, Saks Fifth Avenue, Macy’s and Bloomingdale’s all offer shipping to Australia, and openly consider the market as one of their biggest online customers
Farren says she does not expect to see many more large retailers in Australia, with most of the major chains already here, but expects that more specialist retailers will start coming in “certainly higher end fashion retailers, particularly the niche fashion retailers from Europe and US”.
“It remains to be seen if the Australian taste is sophisticated enough to embrace them,” says Farren.
The arrival of overseas brands is not good news for local retailers with less prime retail space available and many without the bargaining power to negotiate lower rents.
“The sophistication and bargaining power of these international retailers often means they pay less or will seek to pay less rent per square meter for the quality of space they occupy, and tend to commit to longer lease terms than local retailers.
“The criticism often levelled at centre owners by other tenants is that the rent of international retailers is being subsidised by other local retailers,” says Farren.
Dolce &amp; Gabbana recently signed a lease for 320?square metres of the Mayfair Building on Collins Street in Melbourne, owned by Charter Hall and Cbus Property while Chanel, Prada and Apple have recently opened their first Perth stores.
UK brand Miss Selfridge will open a pop-up store within the Glue Store at Westfield Bondi Junction, before moving into stand-alone stores.
In its recent results filing Challenger Diversified Property Group said the lease of the former Border’s site in its refurbished Jam Factory on Chappell Street in South Yarra to Top Shop had exceeded expectations. Challenger also signed <a target="_blank" href="https://www.propertyobserver.com.au/retail/challenger-secures-italian-pizza-tenant-konpizza-for-refurbished-jam-factory/2013021859321?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">Italian pizza chain Konopizza</a> to lease its first shop in the mall.
The new Myer Emporium being built by in the Melbourne CBD by Grocon for Colonial First State’s Global Asset Management and due to open towards the end of the year is set to include a number of international retailers making their debuts in the Australian market.
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Zara, Topshop and Uniqlo lead retail property push into Australia

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Interesting <a target="_blank" href="https://www.macrobusiness.com.au/2013/02/the-history-of-australian-property-values/">article</a> from Philip Soos charting Australian residential property history. Such debates often become polarised between those who own property (“prices always trend up”) and those who don’t (“housing bust!”). Typically what follows is degeneration into cheap shots (cf. “landlords are parasites”, “Soos is a uni student”), but there’s plenty of that dirge on the internet already.  I’m a reasonably intelligent bloke and well aware that when the easing cycle reverses prices might fall, but I challenge whether the close to 70% who are property owners are necessarily the “greater fools” that they’re portrayed to be in Soos’ article and scores of appended comments.
Diversification
Before delving further, I’ll clarify that I’m not simply suggesting placing an enormous leveraged bet on Australian residential property at today’s prices. A holistic financial plan should involve an element of averaging as the average investor is notoriously poor at market timing.  In my book I also discussed the importance of diversification and noted that a sensible portfolio should include a range of asset classes e.g. Australian property, UK property (close to London), an averaging strategy into UK index funds, holdings in Australian equities and cash. Diversification into non-correlated asset classes such as precious metals and art, may also be preferable.
Graphs from 1861…
As a historian specifically interested in industrial and economic history from this era, I take interest in charts detailing trends from 1861. However, let’s be frank, residential property trends of 1861 bear zero relevance to the modern era.  As compared to my native UK, Australia achieved high rates of home ownership in the 19thcentury. My adopted city of Sydney had home ownership rates reaching 28% in 1891 as compared to only 10% in the Britain of 1900. However, data from the era of the horses and cart era pre-dating WWII is not relevant.
As a Pom I was often presented with such charts in the 1990s past as irrefutable proof that property is wildly over-priced, but over a reasonable period of time homeowners and property investors remain way ahead of those in other asset classes (and in and around London prices simply continue to increase).  Of more relevance is the significant increase in household debt, particularly the gearing up in response to banking deregulation and the structural shift to lower interest rates.
Ethics
Admittedly, when I first got into property, I hadn’t considered whether it is an ethical practice. It’s common to vilify owners of property as leeches, but we can’t have the milk and beef from the capitalism cow. If Australia continues populating at a frantic pace someone needs to own rentals or the system fails.  If you're taking aim at the cost of land/dwellings/renting, you’re picking the wrong target: the only route to change is through amendments to government policy, regulation and tax laws. Carping at landlords alters nothing.
Theory
It’s immature when faceless Tweeters dismiss Soos’ theories due to age (if you want to see what genuine student tripe looks like track down my analysis of Sheffield’s steel industry history/welfare state – utter dross). However, when it comes to finance and investment, there IS a key difference between theory and practice.  My suggestion for the long-term future of residential property has been that since interest rates fell from the nosebleed ~15% level, over an extended future time horizon prices are likely to some extent correlate to the growth in household incomes. Over the short term I’ve no more idea than Keen or anyone else what lies ahead.
Household incomes have flown along in Australia in the modern era, in part due to high inflation in recent decades and an increase in the number of two-income households. Absent a return to high inflation it’s likely that household income growth will be lower in the future, although it’s a fair bet that Australia’s moderately inflationary environment will prevail given that is the Reserve’s stated target.
Practice
Suppose you buy a home today for $300,000 and take on a mortgage of $240,000. If price growth does correspond to a growth in household incomes of, say, 4% per annum, what do you think that property might be worth over a working lifetime of 45 years?
I won’t type the number (it’s close to a sixfold increase) as I’d doubtless be certified as a raving loon. Run some numbers and you’ll note that due to compounding growth even if the estimation is wildly over-optimistic by a staggering percentage, the vast implied margin of safety determines that you still don’t lose out. More pertinently, you will OWN an unencumbered asset which you may choose to sell and downsize to assist in funding your retirement, or rent out at tomorrow’s doubtless exorbitant rental values.
An alternative to “buying now” is renting and investing in a diversified portfolio of ‘productive assets’. My suggestion in this case is to implement a prudent averaging strategy into a well-diversified LIC which invests in the industrials index with its superior dividend streams.  Two problems. Firstly, the spiralling cost of renting a decent property (if you believe that rents will become reasonable as the population booms you retain greater faith in political leadership than me). Secondly, in today’s world of overseas travel, credit card binges, impulse-buying and rampant consumerism, do Australians tend to diligently set aside a sizeable percentage of their income into a diversified portfolio of assets? Erm, no.
Ownership assets
We might reasonably expect to live in retirement for 20-30 years. If you’re to remain financially secure through such a time horizon you require a material retirement lump sum or annuity, and, ideally an unencumbered dwelling.  Debate continues on the impending fortunes or otherwise of our economy. However, if you believe interminably in the ‘Mad Max’ scenario that capitalism fails and only farmland and guns retain value, then unless you’re a trained mafioso, you’re doomed regardless. In a variation on Pascal’s wager, the only rational investment approach is to believe that capitalism continues to re-invent itself and prevails. You need to own income-producing assets, be they equities, real estate, commodities or cash.
Now, suppose you'd taken the market-timing advice of the purveyors of doom since 2008, when Keen made his infamous “house prices will crash by 40%” prediction. Over the last half decade you'd have sold your house, watched the cost of renting increase horribly, and, following the more recent dreadful advice to short-sell the world’s fourth largest iron ore producer, sent yourself into a financial tailspin (if undertaking a leveraged CFD play, perhaps bankrupt). Worse still, property prices have tracked upwards.
Let’s be absolutely clear: if your financial plan involves owning nothing and then speculatively selling shares you don’t even own (into a raging bull market and without using a sell-stop order) in the vain hope of buying them back cheaper down the road – your destiny is likely to be drawing the Age Pension and adding to the Government’s pre-existing headaches. To build a sound financial future you need to own income-producing assets with a longer-term growth component.
Speculation: looking out
Are property owners "speculators"? It’s true that in the short term property ownership often involves holding cost (even with mortgage rates dropping to ~5.00%) . But over time rents tend to increase. Investment properties generate income as well as long-term compounding growth. As Ben Graham highlighted, the word 'speculation' comes from the Latin noun specula, a “look out”. So let’s “look out” at what’s on the horizon for Australia:
Click to enlarge
<a href="/images/stories/2013/02/wargentfeb15.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/02/wargentfeb15thumb.gif"></a>
<a target="_blank" href="http:www.abc.gov.au">Source: abs.gov.au</a>
ABS projections will not be accurate and nor do they profess to be, but the populations of Australia’s four major capital cities look likely to skyrocket. Again, we turn to policy: what are we doing to hold down the cost of land and new developments? Unless I'm missing something: nothing.  A major problem will unfold during Australia’s “Great Rebalancing”. It’s hoped that low interest rates and housing construction will plug the gap/hole/crater left by the phenomenal boom in mining investment, but who’s going to buy the new housing? If no-one, then who will construct it?
New developments are expensive and often inappropriately designed or located. Thus both homebuyers and investors clamour towards the “better value” established dwellings, particularly those located in comfortable, commutable proximity to the four major capitals.  Naturally, prices will continue to peak (cue high-fiving property owners) and trough (self-congratulatory squeals of delight from renters) cyclically and much depends on the success of the mining boom transition from construction to production, but will capital city prices collapse permanently to well below where they were before the financial crisis? With the prevailing levels of intervention, that seems unlikely. The housing affordability debate will never go away, of course - even if prices and interest rates fall it will continue as it does in every decade.
Policy
This will be dismissed as a spruik, but if you’re genuinely concerned about the price of Australian housing you need to pick the right target: the Australian government. The challenges facing leadership with regards to housing are vast but not insurmountable: improved transport links, increasing the supply of appropriate land and dwellings, reforming the tax laws. If you think our leaders are equal to the task…you have more faith in them than I do.
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial fr</a><a target="_blank" href="https://petewargent.blogspot.com.au/">eedom.</a>
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It seems unlikely that capital city house prices will crash: Pete Wargent

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Room for Debate: Could an Australian housing bubble be forming?

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Across the capital cities and based on all sales recorded over the 2012 calendar year, 31% of house sales and  46% of unit sales were transacted at a price below $400,000. Aggregating the figures together for dwellings shows that about 34% of all capital city homes sold for less than $400,000 over 2012.  As you can see in the table below though, the largest proportion of these sales was in Hobart where 67.6% of all house sales and 82.5% of all unit sales were priced under $400,000.  Similarly, Adelaide recorded 49.7% of all house sales and 70.7% of all unit sales with a sale price lower than $400,000.  Maybe not so coincidentally, not only are these Australia’s most affordable capital cities, but Tasmania and South Australia are also showing the highest rates of unemployment.
At the other end of the spectrum is Canberra where only 8.6% of house sales were priced lower than $400,000.  Detached house sales under $400,000 were also comparatively rare in Darwin (23.0%) and Sydney (24.7%).
The city with the largest premium (ie $2 million plus) is Sydney where 3.0% of all house sales were priced at $2 million or higher and just shy of 1% of Sydney units were at this price or higher.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/02/lawlessfeb18.gif" title="Click to enlarge"><img src="/images/stories/2013/02/lawlessfeb18thumb.gif"></a>
Outside of the capital cities, housing prices are typically much lower. Take <a target="_blank" href="/news">Newcastle</a>, one of Australia’s largest regional cities, as a case in point. The median house price at Newcastle is $395,000, compared with Sydney’s $660,000, and the median unit price is $340,000 compared to $489,000 in Sydney. Some 51% of houses sold over the past year were at price points below $400,000, and 68% of unit sales were priced lower than $400,000.
As far as housing affordability goes, the vast majority of regional cities provide a substantial saving on the cost of housing compared to the capital cities.  The drawback to many of these areas, though, is that job opportunities are often scarce. If we saw more government and private sector businesses choosing to locate their headquarters in regional locations, the labour market conditions would an improve and it would be easier to attract new residents.
<a target="_blank" href="https://blog.rpdata.com/2013/02/where-can-you-buy-a-house-or-unit-under-400000-across-the-capital-cities-and-major-regional-markets/?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+RPDataResearchBlog+%28RP+Data+Research+Blog%29">A series of thematic maps</a> provides some geographic context. Areas shaded in the red have recorded at least 80% of house or unit sales at a price below $400,000 over the 2012 calendar year.  The concentric circles mark the 10-kilometre, 20-kilometre and 50-kilometre points from the capital city GPO. The white space on the maps is typically areas where the number house or unit sales are either very low or non-existent.
The spatial trends are pretty clear and should come as no surprise. The vast majority of affordable sales are generally located in the outer fringes, with very few suburbs showing a high proportion of house sales lower than $400,000 within 20 kilometres of the city. This trend is particularly the case in the larger capitals, although there are a few exceptions. The proportion of unit sales priced under the $400,000 mark show an improvement in proximity, demonstrating the more affordable price points that medium and high density housing options provide.
Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/">RP Data.</a>
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