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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Retailers selling products that can be bought cheaply online were among the worst-performing tenants of shopping centre landlord GPT in 2012.
Annual results for the year to December include a breakdown of how various retail categories performed in GPT shopping centres.
They show that the leisure category was a very poor performer in 2012, with sales down 7.5%. This includes sellers of books, CDs and games, all of which are cheaper to buy over the internet.
The other poor-performing category was department stores, including most notably David Jones and Myer, whose recent struggles in retailing have been well-documented.
In contrast, the top-performing tenants were those offering retail services such as banks, health fund stores, repairers with sales up 7.2% in 2012.
Second best performing, other retail and mobile phone sellers, which both recorded a 6.1% rise in sales and food catering, which rose 5.9%.
Other retailing includes travel agents, lotto, automotive accessories, cinemas, and other entertainment providers.
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GPT has a retail portfolio comprising 17 shopping including the recently expanded Highpoint Shopping Centre in Maribynong, Melbourne covering 123,000 square metres of retail space and Erina Fair on the Central Coast.
GPT put its 50% share in Erina Fair up for sale with a price tag of around $400 million.
Carmel Hourigan, head of investment management at GPT, says structural changes in retail spending have seen the leisure category continue to be impacted “in particular books, music and games”.
“On the positive, ‘other retail’ which includes cinemas and travel, has had another strong year at 6.1% moving average turnover growth."
To respond to the structural changes in retailing, Hourigan says GPT is changing the mix of tenants in its shopping centres by down-weighting apparel which represents a significant proportion of speciality gross lettable area and up-weighting to retail services, food Catering and other retail.
“We continue to see a number of key themes including, new concept stores, the introduction of additional international retailers, further focus on operational efficiencies as well as increased control over brand and distribution strategies by retailers.
GPT also implemented a number of digital initiatives in 2012 including launching mobile applications for both Highpoint and Melbourne Central, recording over 5,000 mobile app downloads in the first two months.
“Mobile applications for Charlestown, Rouse Hill and Wollongong Central will be rolled out during the first quarter of this year,” says Hourigan,
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Cinemas trump books and CDs: GPT highlights top-performing retail tenants and changes retail mix

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When you look at the facts, despite there being over one-and-a-half million property investors in Australia, most don’t own more than one or two properties, which means that most property investors don’t ever develop the financial independence they desire. 
In fact, only one in 200 property investors owns six or more investment properties, and you need at least that many to become financially independent. 
Now that’s something to think about, isn’t it? 
With our property markets now moving forward I would like to outline four of the common mistakes I’ve seen investors make, so you can avoid them and make the most of the new property cycle. 
1. Buying the wrong property 
While all properties increase in value over time, some increase in value significantly more than others. To build financial freedom you need to own the right type of property – one that grows in value sufficiently to enable you to borrow against your increased equity, giving you the funds to purchase further properties. 
However, when you ask investors why they purchased their property they’ll say things like: it was close to where they live, close to where they holiday or close to where they want to retire. These are all emotional reasons for buying property, and while possibly a good way to buy your home, they are not the right way to buy an investment property.
 2. Not having a plan 
Most Australians spend more time planning their holidays than they do planning their financial future. If you don’t have an investment plan, how can you hope to develop financial independence? 
I have found most Australians fall into four categories: 
a. They don’t invest at all.
The majority of Australians fall into this group – they just haven’t taken action yet. 
b. They don’t invest enough.
 Many Australians have bought a home and understand the power of appreciating real estate, but they want to pay off their home before they invest in more real estate. This means they are not using the untapped equity in their home to further their financial independence. 
c. They invest too much.
Some people invest too much – yes that’s possible! They have taken unnecessary risks and borrowed too much. Some of these investors came unstuck over the last year or two as property values fell, while others will run into trouble as interest rates rise in the future. 
d. Those who invest the right amount.
Then there are those who invest just the right amount. Not too little. Not too much. They invest the right amount – sounds a bit like Goldilocks, doesn’t it? 
These investors have an investment strategy and their investment property purchases are part of this plan. 
The problem is that if you don’t have a strategy it’s easy to get distracted by all the “opportunities” that keep cropping up. 
Unfortunately many of these “opportunities” don’t work out as expected. Look at all the investors who bought off the plan or in the so-called next “hot spot”, only to see the value of their properties underperform. 
 

<hr class="system-pagebreak">
3. Not reviewing their property portfolio 
Sure, property is a long-term investment and the costs of buying and selling real estate are considerable, but that doesn’t mean you should fall into the trap of not reviewing your property portfolio. 
Of course you can’t easily “swap” properties or reweight you property portfolio like you would shares. But that doesn’t mean you shouldn’t regularly review your portfolio to see what you can do to improve or upgrade your properties. 
When was the last time you checked to make sure you were getting the best rents or that your mortgage was appropriate for the current times? 
Maybe it’s time to refinance against your increased equity and use the funds to buy further properties?
And sometimes it is appropriate to consider selling an underperforming property to enable you to buy a better investment. 
It’s a bit like going to a financial planner to review your share portfolio or super fund. He’d say something like, ‘We are starting an economic cycle so now is a good time to see which sectors will perform best over the next few years and which shares will outperform’. So you would sell some shares and reweight your portfolio into sectors that will outperform. 
It’s much the same with your property portfolio. 
Do you own the type of properties that will allow you to take advantage of the next property cycle? Remember, over the next few years some properties will strongly outperform others. 
If you own secondary properties or real estate in areas that are unlikely to benefit from strong capital growth, it may be worth selling up and replacing them with the type of property that will help you develop long-term financial independence. 
And the last common mistake I see investors make is…
4. Not managing their risk
Many investors don’t understand the risks associated with property investment and therefore don’t manage them correctly.
One common error I see investors make is not having sufficient financial buffers to see them through from one property cycle to the next.
Smart investors don’t only buy properties; they buy time by having financial buffers.
They have sufficient financial buffers in their lines of credit or offset account to not only cover their negative gearing and see them through the down times like we experienced in the last few years.
Another way smart property investors protect their assets is to buy them in the correct ownership structures to legally minimise their tax and protect their assets. I have found that most wealthy property investors own nothing in their own names, but control their assets through companies or trusts.
Australia has now moved into the next stage of the property cycle
The three major property research houses – RP Data, Australian Property Monitors and Residex – as well as the Australian Bureau of Statistics, broadly tell the same story: the property markets turned in the middle of last year.
According to APM’s monthly index, Sydney and Melbourne prices have appreciated at annual rates of 6% and 7% respectively since June 2012. RP Data offers a similar picture, with monthly dwelling values in Sydney and Melbourne rising at 7% and 6% if projected on an annual basis since they bottomed in May 2012.
Yet in this cycle, just as in the past, some property investors will do very well, but many won’t. Let’s make sure we learn lessons from the past to help us secure our futures. I’ll be sharing exactly what I’ll be doing together with a group of leading property experts at my <a target="_blank" href="https://propertymarketupdate.com.au/">National Property Market &amp; Economic Update</a> one-day training events around Australia in March and April. Get full details <a target="_blank" href="https://propertymarketupdate.com.au/">here</a>.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Update</a> blog. Subscribe today and you'll receive a free video training - The Golden Rules of Property Investment.
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Four mistakes to avoid in property investment: Michael Yardney

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Dexus has delivered on its promise of an improvement in its operating performance reporting an 83.3% rise in interim net profits to December 31 of $267 million.
The vastly improved result follows the commercial property developer, owner and manager reporting a 67% slump in full year profit in August last year.
The six month result was in line with guidance given to the market at the end of 2012.
Dexus executive general manager for office and industrial Kevin George described the office market as “tempered”  but says there are “positive signs” in core markets and “solid interest” in "high quality buildings".
In the tough business conditions, George says a number of firms are seeking to modernise and “gain workplace efficiencies which has flowed through to increasing enquiries in our portfolio”.
George added that suburban tenants are looking to relocate to CBD offices due to competitive conditions and a reduced rental price differential.
The $5.5 billion Dexus office portfolio delivered a return of 10.3% over the six month period.
Over the reporting period Dexus disposed of its US industrial property portfolio worth US$561 million at a 13% premium to its book value and made a number of Australian office acquisition to rebalance the group’s portfolio to its target of 80% weighted to Australian offices and 20% to Australian industrial property.
“The US portfolio sale considerably improves the quality of the group’s earnings profile as the proceeds are re-allocated to the Australian market,” said Dexus chief executive Darren Steinberg.
Dexus spent $504 million of the money generated from the US sale to acquire stakes in three Sydney CBD office buildings including a 25% stake in Grosvenor Place at 225 George Street, which will settle at the end of February.
Dexus has a total commercial property portfolio valued of $7.1 billion with offices making up the bulk of this, worth $5.5 billion.
It completed 239,000 square metres of new leasings over the six month period with the occupancy rate across the portfolio increasing from 93.4% to 94.7% Dexus will pay shareholders an interim distribution of 2.89 cents per security, an 8.2 per cent rise on last year.
Steinberg said the company still expected to post full-year earnings of 7.75 cents per security and an annual distribution of 5.8 cents. 
"We are well positioned for growth with a strong and conservative balance sheet, and confident that we can continue to deliver superior risk-adjusted returns for our investors from our quality Australian real estate portfolio," he said.
A thousand square metres of office space will become available at level 17 in the flagship green building, One Bligh Street in the Sydney CBD during the 2013 financial year.
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Dexus profits up 83% as suburban office tenants relocate to the CBD

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We are, by many accounts, living in the Asian century; a time when the nations of the world’s largest continent, led by China, will dominate the global economic, social and cultural landscape. In light of the enormous strides since just the turn of the millennium by the likes of China, South Korea and India, and the rise of brands like Samsung and Lenovo, it’s not a forecast I wish to contest (although forgive me if I don’t extrapolate too much from the success of Gangnam Style!)
From a property investor’s perspective, the more pertinent and contestable issue is whether and how Asian-based or –migrant buyers will impact the Australian residential property market and how one can profit from this phenomenon.
There are, of course, hundreds of developers out there currently marketing Australian properties to overseas buyers. We know this because non-resident, non-citizens (overseas buyers) and temporary Australian residents have to seek approval from the Foreign Investment Review Board to invest in Australian property. In 2011-12 some 10,118 real estate approvals were granted worth $59.1 billion in total. This was up 42% on the previous financial year.
But to understand what really is going on, one needs to dig a little deeper. First off, only around a third, or $20 billion, of real estate investment in 2011-12 relates to residential property. And around a fifth of that figure – $4.1 billion – is made up of temporary residents in Australia buying property. These people are required to sell up when they leave (unless they subsequently obtain Australian citizenship or permanent residency).
The balance of the residential real estate investment – around $15.5 billion in 2011-12 – essentially relates to off-the plan developments, either by individuals or by development companies marketing to overseas buyers.
The $15.5 billion is a big sum of money, and while annual figures jump around a fair bit, the trend is up, growing at around 7.5% a year since 2008-09. This number is especially big if you are a developer struggling to market your property to locals, a not uncommon issue today.
To my mind, there is a significant amount of two-tier marketing going on. This is the unsavoury practice of promoting a product (in this case property) to foreigners and/or out-of-towners in the wilful knowledge that they don’t know what they are getting because they are unfamiliar with local underlying prices, trends or conditions. It’s by no means a new concept in real estate. There are countless Victorians and New South Welshmen and women who have been sold lemons in the Gold Coast property market over the years. Due to adverse publicity, it’s become increasingly difficult to fool Australian interstaters, so developer attention has turned to those living overseas.
Putting aside this ethically questionable behaviour, I’ll return to the central question: can individual investors profit from this scenario? Well, one strategy might be to ‘follow the money’; to also buy off-the-plan property and see its value grow in line with Asian demand.
Unfortunately, this strategy doesn’t work. Why? While ostensible demand maybe growing, it’s being more than matched by the supply of off-the-plan properties. Quite simply, there is no scarcity value for high-rise towers or fringe suburb McMansions.
Incidentally, notwithstanding the number of zeros in $15.1 billion, it’s a drop in the ocean in terms of the annual turnover of the Australian property market. In the year to November 2012, the ABS recorded $500 billion in mortgage financing for property purchases (excludes refinancing). So at best, the overseas market represents a low single digit percentage of the overall residential market.
Will that change in the future? I doubt it. Rightly or wrongly, there is almost political unanimity for keeping a tight rein around what overseas citizens and temporary residents can purchase. Indeed, the greater likelihood is a tightening of the rules, which could have detrimental impact on the off-the-plan property market.
We may be in the Asian century, but property remains predominantly a domestic affair.
Monique Sasson Wakelin is a director of W<a href="https://www.wakelin.com.au" target="_blank">akelin Property Advisory</a>, an independent firm specialising in acquiring residential property for investors. She can be followed on <a href="https://www.twitter.com/@WakelinProperty" target="_blank">Twitter.</a>
For more on the allure of Australian property to Asian buyers, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-australias-allure-for-asian-residential-property-investment">download our free eBook. </a> The eBook is also available for<a target="_blank" href="http://propertyobserver.com.au/ebooks/australias-allure-for-asian-residential-property-investment-free-ebook"> free download in Chinese.</a>
 
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Property investors unlikely to profit from increase in Asian buyers: Monique Sasson Wakelin

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<img width="470" height="191" src="/images/stories/2013/02/estimage2.jpg" alt="estimage2">
Market price estimates that now appear on Domain property listings are causing havoc among listing agents.
Vendors are threatening to withdraw their advertising unless the service to buyers is ceased. The market price estimates that are appearing on Domain within paid vendor offerings are often advising market price estimates that are at distinct odds with the selling agency/vendor expectations.
A<a target="_blank" href="/news"> Dee Why</a>, Sydney, property (pictured below) <a target="_blank" href="https://www.domain.com.au/Property/For-Sale/House/NSW/Dee-Why/?adid=2010280218">listed with $880,000-plus hopes has been given a $725,000 to $800,000 market price estimate</a> by the Domain website, sponsored by the RAMS "Borrow up to 97%" marketing campaign.
Click to enlarge
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It's the market price estimate from Australian Property Monitors, the Fairfax own data company, that are being published on the Fairfax-owned Domain site across the country in a new initiative.
A <a target="_blank" href="/news">Curl Curl</a>, Sydney, property (pictured below) listed with $1.5 million-plus hopes has been given <a target="_blank" href="https://www.domain.com.au/Property/For-Sale/House/NSW/Curl-Curl/?adid=2010282290">a $1.2 million to $1.3 million market price estimate.</a>
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The biggest asking price to APM price estimate discrepancy found by Property Observer was in <a target="_blank" href="/news">Fitzroy North </a>in Melbourne.
The four-bedroom May Street cottage (pictured below) has been given a $1.2 million to $1.3 million price estimate in the lead up to its March 16 auction through Nelson Alexander. However, <a target="_blank" href="https://www.domain.com.au/Property/For-Sale/House/VIC/Fitzroy-North/?adid=2010280999">Domain's APM market price estimate</a> for buyers is $845,000 to $925,000.
Click to enlarge
<a href="/images/stories/2013/02/fitzroynorth1.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2013/02/fitzroynorth1thumb.jpg"></a>
 
One agent told Property Observer after it was brought to his attention that "it would not surprise me if vendors withdrew their property listing from the Domain property portal".
'It was very client unfriendly – and not helping the mum and dad vendor one bit," he said. The fine print accompanying the APM estimate says its a market price estimate calculated by APM's Automated Valuation Model (AVM) and is not conducted by a certified practicing valuer. "The AVM evaluates property characteristics, comparable sales and local market activity and cannot take into account modifications made after the last sale date."
It says the model evaluates multiple and unique combinations of property characteristics for each local area to calculate the most accurate price estimate possible.
"Adaptive hedonics allows the model to use the underlying attributes of each property, in each location, to create highly specific price estimates."
Where a recently reported sale price for a property is available, the model will use this record as the basis for calculating the price estimate.
The sale price is indexed forward from the date of the historic sale, determined by prevailing local market price trends, and converted into current-day value.
Where a recently reported sale price for a property is not available, a pool of neighbouring comparable properties is selected and used as the basis for calculating the price estimate.
The following property attributes are assessed and evaluated:
<ul>
<li> Property location: latitude &amp; longitude,</li>
<li> Property attributes: number of bedrooms, bathrooms and car parking,</li>
<li> Additional features : land size, air conditioning, pool, polished timber floors, walk in wardrobes and entertaining areas,</li>
<li> Geospatial: proximity to bodies of water and transport links, road classification and views.</li>
</ul>
"This pool of comparable properties is then ranked and weighted with each historic sale price indexed to current day value," APM says.
APM stress the figure does not take into account the potential impact of external influences such as a change in economic conditions, future planned infrastructure and environmental conditions.
"The model cannot take into account the effect of renovations or changes to the structure of a property made after the official reported sale date."
APM recommends our customers refer to the comparable sales data provided, inspect similar properties on the market as well as supplement this information with additional market research and advice from property professionals prior to making any decisions.
APM stresses it is "NOT an EXACT valuation for the property."
"It is highly accurate in the majority of cases but does not wholly replace the judgement of an individual making a carefully considered decision with the best information at their fingertips."
Queensland listings are similarly being given market price estimates well under the declared asking price. A four-bedroom Noosaville house (pictured below),<a target="_blank" href="https://www.domain.com.au/Property/For-Sale/House/QLD/Noosaville/?adid=2010280260"> which has an $829,000 asking price, has been given a $660,000 to $730,000 market price estimate.</a>
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/noosaville2.jpg"><img src="/images/stories/2013/02/noosaville2thumb.jpg"></a>
A Brighton apartment (pictured below) with an $830,000 asking price through Knight Frank has been <a target="_blank" href="https://www.domain.com.au/Property/For-Sale/Apartment-Unit-Flat/VIC/Brighton/?adid=2010280929">given a market price estimate of $660,000 to $730,000</a>.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/brighton1.jpg"><img src="/images/stories/2013/02/brighton1thumb.jpg"></a>
A five-bedroom Somerville house that Nicholas Lynch is trying to sell for between $850,000 and $930,000 has been given an APM market price estimate of $690,000 to $765,000.
At Frankston South, a four-bedroom house comes with a price range of $980,000 to$1.09 million through Nicholas Lynch. But the market price estimate by APM is $805,000 to $875,000.
A five-bedroom Davidson house, given a $935,000 to $1.015 million market price estimate has been actually listed at $1.05 million through Christine Harrison at Smart &amp; McKenzie Real Estate.
Market price estimate reports are typically bought by buyers seeking some price guidance, but only recently added to the Domain listings website in a marketing initiative between Fairfax Media and mortgage lender RAMS.
The most irate are agents whose listings with asking prices come with price estimates at a much lower guidance.
But agents also suggest the upwards variance could also play havoc with buyers and sellers.
At North Balgowlah a two-bedroom cottage has $825,000-plus hopes, but the market valaution from APM is $985,000 to $1.065 million.
There's a $765,000 suggested market price valuation on a Willaroo Avenue, Woronora Heights listing. It comes with $599,000 plus price indication.
A Balwyn North listing was given a estimate just above its $1.05 million-plus asking price.
At Morrisons Avenue, Mount Martha the price estimate and asking price narrowly overlap.
Market price estimates have been an emerging important buying tool for several years, with a degree of caution required especially with houses that have undergone substantial renovations that the price grooming capabilities of the research websites have failed to incorporate into their calculations.
Most market price estimates have been available only on a one-off payment, but some property websites in the competitive world of data sales have been made available for free.
Property Observer <a target="_blank" href="https://www.propertyobserver.com.au/residential/diy-website-property-valuations-mostly-askew/2012042754446">conducted a survey in April last year</a> that concluded that buyers and sellers placing belief in free online web price estimates when estimating envisaged house price values are more often than not being misdirected – with serious over- and under-estimating being given.
A survey of weekend auction results across Sydney and Melbourne showed estimates by real estate portal <a href="https://onthehouse.com.au/" target="_blank" rel="nofollow">OnTheHouse.com.au</a> were askew 67% of the time.
Of the 80 auction results analysed, 54 estimate were incorrect, with some actual sale prices up to 55% off the pre-auction valuation range given by OnTheHouse.com.au.
Just 26 sales actually fell within the wide estimate band.
UPDATE:  
Domain scrapped its Australian Property Monitors market price estimate offering the day after publication of this article.
The market price estimates <a href="https://www.propertyobserver.com.au/news/domain-pulls-apm-market-price-estimate-campaign/2013021559360?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank">were being published until mid-morning Friday February 15 on vendor-paid Domain property listings</a>, but they were taken down after causing havoc among listing agents.
The offering is tipped to return to the Domain website in future weeks or months, but in a different format.
It would be likely that free private access to the market price estimate was available without any very public damaging disclosure.
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Unders and overs: APM's askew market price estimates upsetting Domain agents' listings aplenty

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Planning Minister Matthew Guy has approved a $190 million office building at 272 Queen Street in the Melbourne CBD.
The 50 storey building, which includes a 11 storey podium with a mix of ground floor retail has been proposed by local private developer Dale Rose.
Guy says the project would create around 580 direct jobs and 3,000 indirect jobs during construction.
“This prominent corner of our central business district will be transformed into a majestic location for a range of businesses, with employment opportunities for up to 2,000 people," says Guy.
“The redevelopment site is located in an evolving area where planning policy encourages development that supports a vibrant and economically competitive central city while making efficient use of existing infrastructure.
“This proposal ticks all the boxes and sets a high benchmark for building design and performance, while increasing competition within the commercial market."
The granting of planning approval for the CBD tower comes as the planning minister comes under fire from Melbourne Lord Mayor Robert Doyle for approving a new tower development on Southbank more than 100 metres taller than the council's preferred height for the site.
The 238-metre tower is due to be built at 54 Clarke Street Southbank. 
The Melbourne city council is consider challenging the approval at Victoria's planning tribunal, The Age reported.
The Melbourne CBD is expected to have around 30,000 extra office workers by 2026.
It is estimated that inner Melbourne, including the central business district, will need to accommodate an extra 30,000 people by 2026.
The Victorian government is currently developing a new metropolitan planning strategy to deal with the growth of inner Melbourne.
To have your say on the development of Melbourne’s future go to <a href="https://www.planmelbourne.vic.gov.au">www.planmelbourne.vic.gov.au</a>
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Matthew Guy approves new 50-storey Melbourne CBD office tower

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Investment in Australian commercial real estate fell in the final quarter of 2012 but the outlook remains bright for 2013 as global investor confidence rises.
Over the December 2012 quarter, Australian investors – both offshore and local – invested $3.9 billion in commercial property, compared with US$4.2 billion in the September quarter – a decline of 6%, according the latest global real estate report from Jones Lang LaSalle (JLL).
For the calendar year, investment in Australian commercial real estate was up 6% to US$16.5 billion compared with US$15.5 billion in 2011.
Sydney ranked 14th biggest capital city commercial property investment market, attracting around US$6 billion from investors, with London ranking first (around US$30 billion) and New York second (US$25 billion).
The report notes that Australia was boosted by a number of record sales in the hotel sector including the largest ever single asset sale (Shangri-La Sydney) and hotel portfolio sale (Marriott portfolio).
“Capital was primarily sourced offshore, accounting for nearly 80% of the overall dollars invested. 2012 will provide a good barometer for the Australian hotel investment landscape in 2013,”says JLL.
JLL is anticipating that global real estate investment volumes will grow in 2013 by a further 10 % to 15% on 2012 levels, with Australia continuing to be the destination of preference for many institutional investors.
Australia was a solid performer in the Asia Pacific region over the year – substantially better than China (a 26% decline in investment), Singapore (-8%) and Hong Kong (+2%), on a par with Japan but below the standout regional market, South Korea, where investment increased by 14% to US$11.3 billion.
The USA was the top global commercial property investment destination with US$163.7 worth of assets changing hands in 2012, an increase of 11% on 2011.
JLL’s head of investments in Australia, John Talbot, said that globally, and in Australia, the final quarters of 2012 were marked by subdued leasing markets but high levels of investment activity.
“Evidently, global investors are willing to look through a temporary slowdown in rental growth and take a longer-term perspective on real estate returns.
“Within the Asia-Pacific region, Australia continues to be the destination of preference for many institutional investors.
“As we move into 2013 there is no evidence that the attractions of Australian assets are weakening.
“Through 2013, we expect to see continued pressure on yields at the upper end of the market as domestic investors return, challenging offshore investors for ownership of premium grade assets across all real estate sectors,” he says.
Cross-border purchases totalled nearly US$20 billion in 2012, equivalent to 21% of all acquisitions. Australia, Japan, China and Hong Kong accounted for 80% of the region’s cross-border acquisitions, while Singapore was the source of one-third of all cross-border capital in the region.
“Opportunities continue to exist for private debt funds to fill the void left from the exodus of European lenders in Asia Pacific, and senior lenders remain very competitive, with lending margins tightening over the past year,” says JLL.
“Meanwhile, banks are still cautious around the impact that Basel III regulatory changes may have on their commercial real estate portfolios.”
Globally, commercial real estate investment volumes totalled $436 billion in 2012, according to JLL preliminary numbers, a slight increase over 2011’s $435 billion and a 36% increase over 2010.
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Australia’s status as commercial property investment hotspot brightens: Jones Lang LaSalle

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Investor confidence has returned to the long-troubled NSW pub sector, according to CBRE.
CBRE sold or placed under contract around $40 million worth of pubs over the Christmas/New Year period with a further $30 million worth of hotels is to be offered to the market in coming weeks.
CBRE Hotels will soon commence marketing four high profile properties: the Bristol Retro Arms in the Sydney CBD,The Welcome Hotel at Rozelle in Sydney, the Banjo Paterson at Jindabyne and the Swansea Hotel at Lake Macquarie. 
"We have certainly noticed a shift in buyers and sellers attitudes as well as that of other stakeholders, including banks, who have a renewed appetite to lend on well-located properties with established trading histories," says’ CBRE’s Joel Fisher said. 
"This is expected to aid a continued recovery in the market and underpin a pick-up in sales activity over the next 12-24 months."
The Hotels team at CBRE has associated the recent uptick to “historically low interest rates and the perception that legislative risks have been watered down… Enabling purchasers to make more considered and educated decisions about both their investments and current valuations.”
The Banjo Paterson Inn in Jindabyne will be listed by CBRE and is expected to generate considerable interest due to last year’s strong ski season.

“The hotel offers its own microbrewery as well as a successful adjoining motel and there is future upside via a current DA (development approval) for a residential redevelopment of the property.”

Also on the market, The Welcome Hotel – located in Rozelle, Sydney’s inner west, is expected to gain significant interest as it is regarded as one of the best hotels in NSW by the SMH Good Pub Food Guide.

“The hotel has a strong established trading record and offers significant upside potential, which will help underpin buyer interest.” 

“A significant draw card for purchasers will be the fact that the property is positioned to capitalise on Sydney’s increasing inner city population base, with a range of high density residential projects proposed in the surrounding suburbs,” Fisher says.
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equinn-i7Kmo9afeu

Sydney CBD pubs listed for sale as confidence and investors returns to sector

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Chatswood's office vacancy rates has fallen to its lowest level in over five years, according to the Property Council of Australia's (PCA) latest Office Market Report.
The vacancy rate in Chatswood fell nearly 5 percentage points in the six months to January, as it tightened from 13.7% to 8.9%. This was as a result of net absorption of 13,662 square metres in the period.
The declining Chatswood vacancy rate helped push the overall vacancy rate on the North Shore down from 9.4% to 9% in the six months to January 2013 -  its lowest level since July 2007. 
“Strong demand in Chatswood has helped fuel the cut in vacancy rates across the North Shore,” says Property Council NSW, executive director, Glenn Byres. 
Vacancies rose in the two other key North Shore markets.
In North Sydney they rose from 7.4% to 7.8% and in Crows Nest / St Leonards they increased from 10.7% to 12%.
Supply levels in Crows Nest / St Leonards increased with the addition of 16,320 square metres of office space in the period.
“New supply totalling 17,694 square metres hit the market in the past six months, 2,323 square metres of stock was withdrawn – and net absorption increased by 18,995 square metres.
"There is only 350 square metres of stock is due to enter the North Shore market in 2013, followed by a further 4,400 square metres of new stock in 2014," Byres says.
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Chatswood office vacancy rate at lowest in five years

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An opportunity has arisen for private investors and self-managed super funds to purchase the premises of a Bank of Melbourne retail outlet offering a potential yield of 6.8%. 
The bank branch, located at 297 Wyndham Street in the Shepparton CBD is close to retail premises tenanted by Westpac, Commonwealth Bank, ANZ, Gloria Jeans and Rivers stores. 
It is expected to fetch around $600,000.
Recently refurbished, the property is leased to The Bank of Melbourne at $40,979 per annum for five years with two further five year renewal options with fixed annual rent increases of 3%. 
Zoned business 1, this property has a total land area of 270 square metres and building area of approximately 150 square metres including five metres of street frontage to Wyndham Street.
It is being marketed by Raoul Holderhead and Jamie Perlinger from Burgess Rawson. 
Bank branches proved popular with investors last year with Burgess Rawson selling 12 of them on yields ranging from 5.75% to in excess of 8%.
Prices ranged from just $202,000 paid for a Bendigo Bank branch in Elmore on a yield of 6.6% to $5.9 million paid for the Commonwealth Bank branch in Balmain in inner Sydney, also on a yield of 6.6%. 
“Banks have emerged from a period of rationalisation and are increasingly viewed as stable long term covenants that occupy prime retail locations,” says Burgess Rawson. 
“Furthermore banks appear to be shoring up strategic locations and committing to longer lease terms.” 
A less than two hour drive from Melbourne, Shepparton is located within The Goulburn Valley, which is known as the food bowl of Australia.  
The property will be auctioned as part of the Burgess Rawson investment portfolio auction on February 27.
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