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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Every First Home Owner Grant for new property by state

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

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

Staff Writer

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

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

alisonwarters@gmail.com

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

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

Ellen Walker

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

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

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

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House building activity declined at its steepest rate in three months to December amid weaker new orders as the overall construction sector continued to contract – albeit at a slower rate – for the 31st consecutive month.
The seasonally adjusted Australian Industry Group/ Housing Industry Association Australian (AIG/HIA) Performance of Construction Index (PCI) increased by 1.8 points in December to 38.8, still well below the 50 points level that separates expansion from contraction.
The December index update shows that house building conditions weakened, with the sector’s activity sub-index falling by 6.1 points to 34.7 to signal a sharper rate of contraction in December.
<img src="/images/stories/2013/01/hiajan8.gif">
New orders in the house building sector declined by four points in December to 33.9, compared with new orders index increasing by 8.3 points to 42.6 across all sectors of the construction industry.
The increased rate of contraction reflected a steeper decline in new orders, “which is of concern for the sector’s outlook”, noted the AIG and HIA.
Apartment building activity was also more subdued in December, with the sub-index declining by 2.4 points in December to 40.1.
In contrast, commercial construction activity contracted at its slowest pace in just over two years, while the rate of decline in engineering construction again eased during the month.
AIG director of public policy Peter Burn says construction activity ended the year largely as it began it, “deeply entrenched in negative territory”.
While he says there are some signs of more positive conditions for 2013, he describes as “worrying” the steeper decline in new orders within the house building sector, with “low consumer confidence continuing to weigh heavily on demand”.
HIA chief economist Harley Dale says the December update for housing is disappointing.
“Detached house building represents well over 60% of all residential construction activity in Australia, and the December 2012 Australian PCI points to a steeper decline in activity and new orders, not to mention employment,” he says.
“That is a concerning update, which aligns with other indicators suggesting a deterioration in pre-existing weak conditions for detached house building in the latter part of last year.
“Activity in the apartments sector only lost a modest amount of the ground gained in November while new orders contracted at a slower pace, but monthly iterations still revolve around clear contractionary conditions.
“All up, if policy makers were hoping the first housing update out in 2013 would deliver a signal of current policy settings boosting the chance of a new home building recovery, they’re going to have to keep hoping," says Dale.
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lschlesinger-FZcF9M3vE6

Dwelling construction activity continues to slump in December quarter: AIG/HIA

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Retailers are enjoying strong Boxing Day sales trading with the Australian Retailers Association predicting its estimates of $14.8 billion in spending from 26 December to 15 January will be met.
Most of this spending came immediately after Christmas with the Australian National Retailers Association estimating $1.8 billion was spent on Boxing Day itself, with $5.7 billion spent in the first week of the sales. However, the association does not have results to confirm its estimates yet.
It comes as the NAB Online Retail Sales Index for November recorded surges ahead of Christmas, rising to 241 points from 209 points in October, but year-on-year growth only edged higher to 27%.
In the 12 months to November 2012, Australians spent around $12.6 billion on online retail. This level is equivalent to 5.7% of the scale of traditional bricks and mortar retail (excluding cafés, restaurants and takeaway food) for the year to October 2012.
November is the peak month for online retail sales – with consumers allowing adequate time for delivery of their purchases prior to Christmas.
Alan Oster, chief economist at NAB, says as the online market matures, it will be interesting to observe whether consumers have greater confidence to make online purchases later in the month.
ANRA chief executive Margy Osmond says post-Christmas sales got off to a great start on Boxing Day with large numbers flocking to stores and shopping online.
“Christmas Day was one of the biggest online shopping days as people looked to cash in their Christmas present vouchers.”
Russell Zimmerman, executive director of the Australian Retailers Association, was also positive about the sales period and said the few days directly after Christmas and Boxing Day were “very strong and solid”, although sales were starting to slow down now.
“The Boxing Day sales were very big and the pre-Boxing Day sales by those retailers that were online worked very well,” he says.
The ARA predicted a 3.9% increase on last year’s post-Boxing Day sales and Zimmerman says he thinks that will be pretty close to the mark.
“Some things, like men’s clothing, are doing very well in post-Christmas sales as I suspect men have not been looked after over the last couple of years but it’s got to the point they have to buy new clothes for work,” Zimmerman says.
He says food was also a very strong performer for retailers in the sales period.
“We projected about $6 billion of post-Christmas food sales in the period until January 15 and I think that is pretty much on target to come through,” he says.
However, Zimmerman says while retailers are happy with the sales boost, they would have liked more.
“Retailers would have liked to have seen a much bigger increase. We predicted 3.9% increase in spending and $41 billion spent in in pre-Christmas sales this year, 10 years ago we used to get increases of 5% to 6% but those days have gone for a long while yet,” he says.
“If this hot weather keeps up, that will slow down some of the sales moving into the next few days as heat has an interesting effect on people going out and buying – if it gets too hot they don’t leave home.”
The strong performance comes after a promising start in 2011 dwindled to a flat result overall for retail, with the latest Australian Industry Group/Commonwealth Bank Australian Performance of Services Index falling 3.9 points to 43.2 in December.
Sub-sectors linked to household spending including retail trade and accommodation, cafes and restaurants all reported declines in activity in December.
"At the end of what was a tough year for the services sector, consumer caution, poor sentiment and the high Australian dollar all continued to weigh heavily on sales to households during the Christmas trading peak,” AIG chief executive Innes Willox says.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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cwaters-YrtBR88nBe

Australian retailers buoyed by post-Christmas sales

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We hear the term "guarantee" bantered around a bit within the property management world.  We hear prospective tenants regularly offer to have their mum, dad or guardian go as a guarantee for them at the time of applying for a rental property.
And many property managers believe by taking the guarantee they are further protecting their owner should the tenancy fall into arrears or should there be damage at the conclusion of the tenancy.
But sadly this is not correct. The correct facts are:
<ul>
<li>If you take a guarantee, you are unable to receive a bond.</li>
</ul>
<ul>
<li>And the guarantee is only responsible to guarantee the amount that is equal to the bond amount.</li>
</ul>
So now I am sure you are seeing the potential problems.
A bond should be taken on every single occasion, unless instructed by the owner of the property otherwise (and you would confirm their instructions in writing of this request).
In situations where parents or guardians are wishing to assist prospective tenants, instead of discussing guarantees (which I know you see now are not the wise option), have those people complete a tenancy application form.
Process their application and present all the applications to the owner for consideration. Yes, I know they won’t be residing at the property, and that is OK (and it's not sub-letting, for anyone thinking it). But by having them form part of to the tenancy agreement, they are now equally responsible for the term of the tenancy. They are responsible for the condition, rental payments and for any potential loss in excess of the bond amount.
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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leahcalnan-pwE6GD6KY9

Why landlords should take a bond from every single tenant

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What is “growth”?
So <country-region>Australia</country-region> is forecast to have growth this year. That’s great! But what does that actually mean? Well, the biggest number of all in economics is GDP – the gross domestic product, which, as the name suggests is the measure of all of a country’s income.
The forecasters expect <country-region>China</country-region> to continue its blistering rate of growth. The great news for <country-region>Australia</country-region>, despite the forecasts of relatively modest growth levels, is that <country-region>Australia</country-region> has not had a recessionary period for more than two decades. A recession is usually defined as two successive quarters of negative growth.
Over time as a nation we have consistently been becoming wealthier and average household income has far outpaced inflation over a long period of time.
What GDP actually includes
The measurement of <country-region>Australia</country-region>’s GDP includes its total income and its total spending including all goods and services.
Of course, the number can never be completely accurate for some transactions officially never take place! For example, a drug dealer won’t be declaring his or her sales to the Australian Taxation Office.
GDP also attempts to avoid double-counting. The example of a car is often used: when calculating GDP we don’t want to include the components of the car as well as the final sales price of the vehicle. What we really want to know is the GDP on a value-add basis.
So a GDP figure will never be perfect, but it’s the best we have got. And it is the trend in GDP, the percentage movements from year to year, which interests economists: are we growing, stagnating or going backwards?
It is worth taking note in the financial press of whether the figure quoted is real of nominal GDP, for real GDP growth is a measurement which strips out inflation.
The individual segments of GDP
The four segments of GDP are:
<ul>
<li>Consumption</li>
<li>Investment</li>
<li>Government spending</li>
<li>Net exports</li>
</ul>
Government spending could account for less than 20% of its GDP, but a number of European countries have national health services that are funded by governments and thus the percentage can be much higher (which is bringing its own problems in European in the form of unsustainable government debt levels).
In countries such as the <country-region>US</country-region> total spending can be more than 100% of GDP which on the face of it seems impossible, but is in fact possible due to goods being imported from overseas.
Mining boom
One major trend that we have seen in <country-region>Australia</country-region> is a phenomenal boom in mining capital investment. Over the next year or two we are expecting to see mining investment begin to fall as the construction stage of the major resources projects peaks and we shift towards the production phase.
A major challenge for <country-region>Australia</country-region> is what will fill the hole left by the incredible boom in mining investment. It is hoped that investment in housing and construction will fill some of the hole but that doesn’t seem to have really taken much effect as yet.
A consequence of this is that we are likely to see a prolonged period of low interest rates as the Reserve Bank aims to stimulate the other sectors of the economy to plug the mining investment gap.
There are some other limitations to the GDP measurement. One is that in does not take account of the level of inequality of a country so GDP may be growing but whether or not the wealth flows down to the population with great inequality is not considered. 
 
<hr class="system-pagebreak">
 
What next for our investment markets?
It might seem unusual given the amount of anxiety around at present but there is a consensus that now is likely to be a good time for owners of stocks. Britain, the US and Australia all saw positive returns in 2012, and this is forecast by most commentators to continue.
Why is this? One reason is that interest rates are so low that savings accounts, particularly in the <country-region>US</country-region> and in the <country-region>UK</country-region>, are yielding minimal or negative real returns. Thus increasingly investors are forced to consider other alternatives. Company shares are often yielding dividends which are far in excess of the return of fixed-income investments at present which is seeing a move to the risk or growth asset classes.
There also is some fear that bonds could be well overvalued at present on a global level, and as and when interest rates are ratcheted up there could be a major correction. This might seem esoteric to you but if you don’t self-manage your superannuation do you know where your super fund manager has invested your pension?
As for property markets, historically lower interest rates have shown a strong correlation with price appreciation. The major banks have clawed back a fair chunk of the recently delivered interest rate cuts in order to cover funding costs, but mortgage rates have steadily dropped with the cash rate to historically very cheap levels.
The governor of the Reserve Bank in Australia has warned Australians that a return to very strong property price growth would be imprudent, which is a sure sign that there is concern that low interest rates could fuel a return to growth. Most forecasting houses are predicting a return to moderate property price growth in 2013.
Property price growth needs population growth and growing wealth
Through 2010 and 2011 I was lucky enough to be able to travel 26,000 kilometres around <country-region>Australia</country-region> and then to a couple of dozen countries across the world, which proved extremely interesting as I was able to compare dozens of real estate markets.
What is evident is that for property prices to grow, a country often needs to see population growth and to be growing its wealth.
I went to see the famous Sphinx and the pyramids, one of the seven ancient wonders of the world. The city of <city>Cairo</city> was quite amazing, it now comprising around a quarter of <country-region>Egypt</country-region>’s population with around 15 million inhabitants. But the population growth has not triggered great property price growth because the country has been through a revolution and the economy is in disarray.
When I finally made it to <city>London</city> after 15 months on the road, I was surprised to see that house prices in <city>London</city> are higher than they have ever been. What of the great crash everyone has been harping on about?
Strangely, although property prices in the <country-region>UK</country-region> notionally fell sharply through the financial crisis, <city>London</city> has pushed on to ever greater heights. Demographic shifts have seen more Brits and immigrants moving to the south-east of <country-region>England</country-region> which is in the process of causing a drastic housing shortage in that part of the country.
And while <country-region>Britain</country-region> seems to be struggling in terms of its economy, the pain has not been felt evenly. Developed countries used to be known for their industrial output and manufacturing, but today it is the intellectual expertise in areas such as financial services which are creating wealth. <city>London</city>’s growth into becoming Europe’s premier financial centre is <country-region>Britain</country-region>’s main success story of recent decades.
In <country-region>Australia</country-region> we do live in a lucky country. Not only do we have a population which is set to boom over the next few decades, our government also presides over an economy benefiting from a mining boom. And also cities such as Melbourne and Sydney are becoming major financial centres.
Sure, we’ll face some challenges, but then if you look back through the financial press over the decades you will discover that in fact, this is always and everywhere the case.
<img style="margin: 5px; float: left;" src="/images/stories/2012/12/wargentbook.jpg">
Pete Wargent holds a range of finance and property qualifications and is the author of <a href="https://petewargent.blogspot.com.au/" target="_blank">Get a Financial Grip – a simple plan for financial freedom.</a>
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pwargent-M4siyDbqQY

What Australia's GDP growth in 2013 will mean for property investors

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The Bank of Scotland International has offloaded $200 million worth of corporate and project debt in the listed property company Becton Group.
The buyers are understood to be a consortium of Goldman Sachs and the United States hedge fund Fortress Investment Group.
Becton has a market capitalisation of just $3.4 million and has been looking for a way to stabilise its longer-term structure.
But the latest scenario suggests a likely tussle between Becton's incoming lenders and the company's major shareholders including Telopea Capital, Mariner Corporation and Titanium Property Investment.
“We have sold our holdings in Becton,” a spokeswoman for BOS International told the Austraian Financial Review on Friday, noting that settlement of the transaction was imminent.
But Becton is still not in a position to be expansive on what had happened or what the consequences could following its securing a trading halt on Friday January 4, 2013, noting it would update investors in “due course”.
“The trading halt is being sought in relation to incomplete information which has come to Becton’s attention regarding the possible sale by Becton’s corporate debt provider of the debt owned by Becton to that debt provider,” the company said in a statement to the Australian Securities Exchange on Friday.
The Becton loans are held by the local subsidiary of Lloyds Banking Group, known as BOSI.
The debt parcel being sold includes secured debt, and a separate tranche relating to the Divercity property development in Sydney’s Waterloo.
The AFR speculated the corporate debt was likely to be sold at a substantial discount to its face value.
The sale of the debt may also trigger further restructuring at Becton, including possible privatisation.
“We embrace the change because it means the company can have a robust discussion about the future,” Mariner boss Darren Olney-Fraser told the AFR.
He has previously called BOSI as a intransigent debt holder. 
Following the global financial crisis, Lloyds has been reducing its non-core exposures in Australasia in the past few years. 
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jchancellor-FAypfDUnLy

Becton remains in ASX trading halt

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1. Melbourne may be problematic, but regional Victoria has good prospects: Terry Ryder

Hotspotting.com.au director Terry Ryder says that while the Melbourne market is imploding, there are “good prospects for investors <a href="https://www.propertyobserver.com.au/victoria/melbourne-property-market-grim-in-2013-but-there-s-more-to-victoria-than-melbourne-terry-ryder/2012121758531" target="_blank">beyond the capital city</a>”. Ryder picks <a href="/news">Bendigo </a>and <a href="/news">Ballarat </a>as locations that more investors should consider, describing them as strong and dependable. His other picks are in the west of the state, <a href="/news">Warrnambool</a> and <a href="/news">Mildura</a>, which offer similar qualities to the two former gold-rush towns and have “diverse economies, plenty of infrastructure spending and affordable real estate”.

2. Continue to be cautious about investing in prestige property: Louis Christopher

In SQM Research’s 2012-13 Boom and Bust report, managing director Louis Christopher urged caution about investing at the prestige end of the market, “where rental vacancy rates are higher, and transaction and holding costs are far higher”. Christopher says that from a purely investment perspective, it makes far more sense to acquire and hold three properties at $500,000 each, instead of one property at $1.5 million.

3. Modest growth in all capital city markets, with Perth and Sydney to outperform: Richard Wakelin

Richard Wakelin, director of Wakelin Property Advisory, anticipates price growth across all the major mainland capital city markets in 2013, with Sydney and Perth the best placed. He expects Sydney property prices to rise by between 4% and 5% in 2013, with its low vacancy rate and high rental costs “a signal for renters and investors to buy property”. Wakelin says Perth prices could rise 5% to 6% in 2013 despite much of WA’s booming resource-driven economy bypassing Perth.  “Nevertheless, extreme tightness in the rental market appears to be overflowing into greater demand from first-home buyers. If this continues, Perth may see reasonably strong growth in 2013,” he says.

4. Expect more competition for properties at the lower end of rental market: Margaret Lomas

Margaret Lomas expects there to be increasing competition among investors for properties at the lower end of the market that are popular with renters. “You are going to have more competition for those types of properties … in the early and mid-part of 2013,” she tells Realestatetalk.com.au.


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5. Melbourne, Adelaide, Darwin and Canberra to consolidate in 2013: Aaron Maskrey 

Aaron Maskrey, research director at PRDnationwide, says Melbourne should continue its period of consolidation after recently experiencing a peak in its market cycle. “Like all large markets, there will always be pockets of areas that will still hold value, and this should be the case with most inner-Melbourne suburbs. Due to a somewhat balance between demand and supply with Adelaide, expect its market to remain fairly consistent, with only marginal increases in value during 2013. Canberra’s market remains fairly tight and values are expected to hold firm over the next 12 months.  Darwin has experienced a sustained period of high growth in 2012, pushing the market to unaffordable levels. The coming year should see growth in prices reach a plateau, as its market consolidates,” he says.

6. Consider the outer ring of most capital cities: Louis Christopher

SQM Research’s Louis Christopher favours Sydney’s west and Sydney’s south-west to continue to perform strongly in 2013. “Indeed, we favour the outer rings of most capital cities. In its simplest terms, the reason is that these areas have been underbuilt for some time now, yet demand for affordable accommodation is growing rapidly,” says Christopher in SQM Research's latest Boom and Bust report.
7. Remain risk-averse in 2013 and reduce your debt: Pete Wargent
Property investment writer Pete Wargent says he will use debt moderately in 2013 to add to his property portfolio. Wargent writes that the loan-to-value ratio (LVR) on his UK property portfolio is under 50%, but a little higher on his Australian property portfolio, but he is steadily reducing it. “Yes, a higher debt-to-equity ratio magnifies returns, but at what cost? The cost is risk. It was common for promoters of UK 'property clubs' to talk of 'being worth £2 million' in property up until around 2007. But where they were investing in far-flung and remote properties using 100% mortgages, the only thing they are likely to be worth today is being lynched by angry investors who were duped into doing the same,” says Wargent. He will look to add two properties to his portfolio over the next few months, but “will look to use cash rather than drawing equity and will use 25-35% deposits (one in south-east England as a long-term currency play and one in Australia)”.  “Of course I could be more aggressive in order to leverage up and chase greater returns … but don’t forget that I am, after all, an accountant. After years of boring-but-safe and risk-averse investment I will remain disinclined to take on greater risk,” he says.
8. Look to the “battlefield suburbs for price growth: Angus Raine
Raine and Horne CEO Angus Raine expects 2013 to be a challenging one for the property market, with the possibility that a “smattering of suburbs across Australia could enjoy some capital growth of between 5.5% and 7%”. Raine says investors should be looking at the “battlefield suburbs’, where first home buyers are set to shape up to investors”. “In other words, St Marys in Sydney, Adelaide’s Semaphore, as well as North Melbourne, Ascot Vale, Brunswick and Footscray in Melbourne are set to benefit as investors compete with first timers for quality homes. Across the continent, it’s the ‘forgotten suburbs’ of inner Perth such as Embleton and Ashfield that will enjoy some growth as investors and first time buyers muscle up,” he says.
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Eight property pointers for buying or selling in 2013

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Back at the desk or still on holidays?
But even before the 2012 Christmas decorations came down – based on the 12 days-after tradition –Coles and Woolworths were spruiking their Easter egg and hot cross bun offerings.
Almost no room in there for catching one's breath, let alone contemplation as the zealous marketeers seek to direct the masses.
I hope some of us got the chance over the past fortnight to turn off the Twitter, tune into the family conversations in between cricket sessions, and possibly even dive into a good book. And not necessarily one on property investment.
Typically I reckon everyone returns from their summer Christmas break, hot sand washed away from between the toes, brimming with enthusiasm and hope.
But this year, and even ignoring the prospect of an early Easter, I suspect there's a little more latent anxiety in the mix as we start making plans.
I suspect given the world of the never-ending great property unknowns, 2013 will be a heightened version of years past. There will be the good, the bad and the ugly - all depending on your own outlook offcourse. 
Ever more forecasts.
Ever more data.
And of course Property Observer casting some critical comment over it all.
Property Observer's overall outlook is neither bullish or bearish. We simply seek, in the first instance, to report how it is across Australia and occasionally the world. And then we let many voices analyse and comment on what's out there.
The reality is that there are many property markets within our capital cities and regions – all with their individual momentum, upwards, downwards or stagnating.
And there are also the overarching national and international influences.
Who really knows about the international ones, especially since the 2007 toxic mortgage debt occurance, but on the national front, there's little doubt this year’s federal election will have an impact – before and after – one way or another.
Most likely introducing an element of hesitation. Or rather perhaps compounding the already existing inertia. 
The most interesting property statistic to be issued over the break was that Australian home values have fallen for the second year in a row, marking the worst run for the national property market in 16 years.
The slight easing occurred despite the Reserve Bank of Australia slashing the cash interest rate six times in little more than a year.
The conclusion to be drawn is that the cheaper credit is tempering the property downturn rather than kick-starting any across the board recovery.
It was RP Data-Rismark that reported that capital city dwelling values fell 0.4% in 2012, with the decline significantly lower than the 3.8% drop in 2011.
‘‘This is the first time we’ve had back-to-back value declines for an index that goes back to 1996,’’ said RP Data senior research analyst Cameron Kusher.
‘‘It is clear that the previous strong value growth conditions to which many home owners became accustomed to in recent years are well and truly behind us.’’
The median price of a dwelling across the country is $483,000.
Which, as Kusher points out, is a big commitment. 
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Federal election another cause for timidness as national dwelling median hovers around its challenging $483,000 hurdle

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The Reserve Bank needs to cut the cash rate by a large amount in one big hit to stimulate a recovery in the housing market, according to Residex chief executive John Edwards.
On the back of November Residex housing market data, which shows many markets in negative territory or treading water, Edwards says the Reserve Bank should look to cut the cash rate by 75 basis points in February.
“Should the RBA continue along the road of small reductions, there is a real risk that it will need to reduce the cash rate to 2% or less.
“However, should it move to a much more significant reduction in February (of around 0.75 percentage points), this would probably achieve its objectives and bring the cycle of small rate adjustments to an end.
“The outcome would be the removal of constant press about the likely poor outcome as the resources boom comes to an end.
“Importantly, it would be probably sufficient to stimulate consumer spending and encourage small business investment. In all probability, this outcome would lead to a much improved level of consumer sentiment,” he says.
Edwards says housing markets had done better in 2012 compared to the previous year, but had failed to keep pace with inflation.
“The majority of cities have produced negative real rates of growth (after taking inflation into account). In fact, the real growth was a -2.8% in housing while for units it was -1.23%,” says Edwards.
Speaking to Peter Switzer on Sky Business last week, he said the vast majority of capital cities in November provided negative growth.
And he expressed concern at the drop in Perth house prices in November (down 1.39%), which he said indicated that resources activity was slowing much faster in Perth.
“We can see it in the numbers,” he says.
Edwards said that in the past smaller rate cuts had made an impact because there was both better consumer sentiment and affordable housing.
He said the current small 25-basis-point rate cuts were part of a circle where the consumer heard bad press about the economy at the rate cut as well as news about the resources boom slowing and news on the international economy.
He says the effect is that the 25-basis-points cuts constantly reinforce the view of the consumer that there are problems.
“Poor consumer sentiment is having a negative impact on things,” he said.
Despite his concerns, Edwards says that “courageous” people willing to buy now will do well if they can seek out bargains.
Edwards says he himself is in the market for renovation bargains.
Despite the poor performance of the market in 2012 in real terms, Edwards says he expects all adjustments in house prices since the GFC to be “recovered in the medium term, and prices are anticipated to be equal to or better than before the GFC”.
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Big 75-basis-point RBA cash rate cut needed in February to override consumer sentiment: John Edwards

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Listed commercial property group Dexus has acquired a 25% stake in 225 George Street, the iconic 44 storey Sydney office tower, more commonly known as Grosvenor Place, for $271 million, as part of a $503.7 million portfolio investment just before Christmas.
It follows the successful sale of Dexus’s US industrial portfolio earlier this week, the proceedings used to fund the office investments.
Apart from the Harry Seidler-designed tower, Dexus also acquired a 50% interest in 2 and 4 Dawn Fraser Avenue, Sydney Olympic Park - two adjoining seven level A-Grade office towers opposite the Sydney Olympic Park for $82.7 million and made a joint (50/50) purchase of 39 Martin Place, a 20 level B-Grade property located adjacent to Martin Place railway station, Sydney with the Dexus Wholesale Property Fund (DWPF) for $149.75 million.
The portfolio was acquired in an off-market transaction from the Direct Property Investment Fund (DPIF), a wholesale office fund, managed by the property division of Colonial First State Global Asset Management.
DPIF is a closed-end fund and is currently in its wind-down phase.
Colonial First State had acquired its 25% interest in Grosvenor Place in 2003, which was valued at $273.8 million in June this year.
The primary tenants are Deloitte, which lease 26% of the building until 2023, law firms Ashurst (16% until 2015) and Norton Rose (11% until 2019) and McCann World Group.
The building was opened in 1988 and won a number of architectural awards for its unique design, including the two large crescent shaped floor plates.
“We are pleased to be able to announce the reinvestment of a significant portion of the sale proceeds from the US industrial portfolio into quality Australian office assets in one of our core office markets. The unique off-market nature of this transaction and our team’s ability to confidentially execute on an accelerated timetable concurrently with the US sale, reinforces our strength in the origination and execution of deals,” says Darren Steinberg, CEO of Dexus.
Steinberg says the new acquisitions “enhances the quality and diversification” of its office portfolio and is a key milestone in its strategy of delivering superior risk-adjusted returns from high quality Australian real estate primarily comprising CBD office buildings.
“DEXUS now holds interests in four out of seven premium office buildings in the Sydney market,” he says.
The other premium Sydney investments include 1 Bligh Street and 201-217 Elizabeth Street.
The purchase of the Sydney portfolio increases Dexus’s footprint in the Sydney office market from 365,075 square metres to 403,599 square metres giving it around 8% of the market
Grosvenor Place comprises 84,527 square metres of office accommodation (86% occupancy by income) over 44 levels together with 984 square metres of retail space (100% occupancy by income), parking for 566 cars and a three storey lobby.
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Dexus pays $271 million for 25% of Harry Seidler-designed Grosvenor Place in Sydney CBD

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With Christmas around the corner, Australian households have stopped worrying about electricity bills, and instead have turned their homes into garish beacons of light, some of them surely visible from the moon.
According to Wikipedia, Australians are among the biggest fans of the tradition of decorating homes, with hundreds and sometimes thousands of tiny lights. This miner's cottage in Wollongong is hardly visible in the darkness under the Christmas lights.
<img src="/images/stories/2012/12/miners.jpg" width="470" height="343" alt="miners">
What first began as way to light up a veranda to enjoy a cold beer has turned into something of an obsession for some home owners, with the Lobethal Valley in the Adelaide Hills claiming to have the largest Community Christmas Light Display in the southern hemisphere.
Adelaidians flock to the nearby Adelaide Hills in the run-up to Christmas for a view of the twinkling lights in the valley (pictured below) and possibly to quaff a glass of wine or two.
<img src="/images/stories/2012/12/loebel1.jpg" width="470" height="280" alt="loebel1">
<img src="/images/stories/2012/12/loebel3.jpg" width="470" height="280" alt="loebel1">
Among the most famous Christmas lights are those in New York’s Rockefeller Center with its enormous Christmas tree, a world-wide symbol of the holidays in New York City. This year’s tree was hoisted into position by a giant crane and is decorated with more than 30,000 multi-colored, energy-efficient LED lights, and crowned by a Swarovski star. The tree came to ‘light’ on November 28
<img alt="rockcentre" height="500" width="373" src="/images/stories/2012/12/rockcentre.jpg">
Another celebrated Manhattan landmark, the Empire State Building, has a new LED lighting system, which allows effects such as ripples, cross-fades, sparkles, sweeps, strobes and bursts with an range of colours.
The world’s most celebrated skyscraper is now decked out in colours of red and green for Christmas:
<img alt="estate" height="393" width="470" src="/images/stories/2012/12/estate.jpg">
A few weeks ago it was colours of blue and white to celebrate the Jewish holiday of Hanukkah:
<img alt="estatehann" height="294" width="470" src="/images/stories/2012/12/estatehann.jpg">
 
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London’s most famous department store, Harrods, turned on its Christmas lights in November, complete with fireworks, with the lights delineating the enormous shoppers’ mecca.
<img alt="harrods" height="403" width="470" src="/images/stories/2012/12/harrods.jpg">
And it would be wrong (perhaps even sinful) not to include mention of the lights of the most famous boulevard in the world, the Champs-Elysées in Paris.
<img alt="parisxmas" height="375" width="500" src="/images/stories/2012/12/parisxmas.jpg">
Closer to home, both Melbourne and Sydney are getting into the Christmas spirit.
Looking perhaps more psychedelic than Christmas, Melbourne Town Hall is wrapped in a red bow.
<img alt="townhallxmas" height="282" width="470" src="/images/stories/2012/12/townhallxmas.jpg">
Sydney has gone more high-tech with this Town Hall covered in colourful projections.
<img alt="townhall2" height="236" width="470" src="/images/stories/2012/12/townhall2.jpg">
And then there’s always the humble Australian home, lit up like, well, a Christmas tree.
There’s this home in Caramar, Perth:
<img src="/images/stories/2012/12/xmaslights.jpg" width="470" height="353" alt="xmaslights">
And this more considered display in Kew, Melbourne:
<img src="/images/stories/2012/12/xmas2.jpg" width="470" height="256" alt="xmas2">
In Sydney, you’ll be hard pressed to miss this home in Riverwoods.
<img src="/images/stories/2012/12/xmas3.jpg" width="470" height="353" alt="xmas3">
For more colourful Aussie inspirations, try this <a target="_blank" href="https://www.ozchristmaslights.com/">dedicated website.</a>
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