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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Adelaide’s inner-northern industrial markets continue to be the most popular those business seeking warehouse space, accounting for almost 80% of the more than 200,000 square metres of industrial floor space leased in the first nine months of 2012 in the South Australian capital, according to Colliers International.
Prime net rents in this market currently range between $100 and $145 per square metre and secondary net rents between $65 and $90 per square metre.
Prime inner-northern industrial yields currently range between 7.75% and 8.5%, and secondary market yields between 8.5% and 9.5%
Major leasing deals include Interlloy signing a long-term lease for 1 William Circuit at Pooraka in Februrary. The 4,385-square-metre property had formerly been occupied by Bohler Uddeholm (Bohler Steel), which sold it late last year and July. ACI Glass leased a 32,000-square-metre warehouse at 15-23 Whicker Road, Gillman. 
Australand has secured a pre-commitment to lease a new purpose-built 25,500-square-metre facility after acquiring the Electrolux 84,000-square-metre site at 19 Pope Street, Beverley, in an off-market transaction at the end of 2011. The lease is for 12 years at an estimated net rent of $87 per square metre. The building is expected to be completed next year. 
According to Colliers International, there is around 45,000 square metres of industrial floor space currently under construction within Adelaide's industrial precincts, with expected completion dates ranging from the last quarter of 2012 to through 2013.
The report also reveals that rents are stable and prime market yields have stabilised between 8% to 8.5%.
The pre-lease market has remained active with close to 50,000 square metres pre-leased this year.
Recent pre-lease commitments include Cameron Interstate, Electrolux, Global Pumps Inc., Spotless Group and Australian Independent Glass.
The report reveals that year to date, the total value of Adelaide transactions was estimated to be $180 million, with almost 45% of the transactions occurring in the inner-northern precinct.
Predominant sales activity included the sale of a property at 404-450 Findon Road, Kidman Park, for $35.1 million. The sale price reflects an initial yield of 15.46% and is fully leased to Metcash Trading Limited.
In June, 16-20 Johansson Road, Wingfield, sold for $9.5 million on an initial yield of 11.6%.
A property at 9-13 Caribou Drive, Direk, sold for $9.2 million. The property is leased to Kimberly-Clark and has a market yield of 8.63%.
The report forecasts that Adelaide’s overall industrial performance will continue to climb over the next six months and tenant demand will also increase.
Incentives are forecast to remain stable, as are land values, but yields are forecast to either remain stable or decline.
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Adelaide inner-north industrial market is leasing hotspot: Colliers International

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Small investors returned to the Sydney property market in "droves" in 2012, with their focus being the previously unfashionable but fast-expanding outer-western suburbs, according to Herron Todd White.
In its 2012 year-in-review wrap, valuers at Herron Todd White say their predictions about the north-west Sydney market made in February were “mostly on the money.
“The small investor returned to the market in droves in 2012, especially in the west. This helped prop up the 'old' first-home buyer’s market.
“There was a continued 'granny flat' trend in the Penrith and Blacktown council areas. Investors are increasingly looking for higher returns and the dual income stream offered by purchasing a basic three-bedroom dwelling and building a granny flat to the rear has proved most popular," says HTW in its December wrap.
Recent sales of houses with granny flats in the outer west include <a href="https://www.realestate.com.au/property-house-nsw-cranebrook-108968621" target="_blank">this five-bedroom house with a self-contained brick granny flat</a> plus 1 ½-car garage on Farmview Drive in Cranebrook near Penrith, which sold for $455,000 through Ali Khanchedar of Southlands Estate Agents Penrith.
 
<a href="https://www.realestate.com.au/property-house-nsw-cranebrook-108968621" target="_blank">
<img src="/images/stories/2012/12/farmview.jpg">
</a>
The house last sold for just $69,000 in 1987.
Khanchedar estimates it could earn weekly rent of $700 equating to a healthy yield of 8%.
In October, Mina Khanchedar Julie Stinson also from Southlands Estate Agents Penrith, sold <a href="https://www.realestate.com.au/property-house-nsw-jamisontown-111242887" target="_blank">this four-bedroom house</a> for $393,000 on Henderson Crescent, Jamisontown, noting that it has “plumbing for potential granny flat as well as a carport”.
<a href="https://www.realestate.com.au/property-house-nsw-cranebrook-108968621" target="_blank"> </a>
<img width="470" src="/images/stories/2012/12/jamion.jpg">
The 1980s-built house last sold for $265,000 in 2001.
 
<hr class="system-pagebreak">
 
In its July market wrap looking at <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/from-western-sydney-granny-flats-to-east-brisbane-workers-cottages-15-eclectic-investment-opportunities-under-%24500000-htw/2012071855637">sub-$500,000 investment options</a>, Herron Todd White said buying a a house with a granny flat in the western suburbs was the “best investment from a rental return basis in the western suburbs”.
HTW suggested investors consider purchasing a circa 1960s to 1970s dwelling on 650- to 700-square-metre allotments and erect a granny flat on the rear of the allotment, thus creating two separate tenancies.
Typically, HTW says investors are paying somewhere between $280,000 to $330,000 for the existing dwelling and between $60,000 to $80,000 for the granny flat, plus spending an extra $25,000 on sprucing up the original dwelling.
According to HTW the dual tenancies can generate monthly rent of $600 ($350 for the main house and $250 for the granny flat), with vacancy rates at practically 0%. 
Property developer and regular Property Observer writer Jo Chivers suggested back in February that investors consider adding a granny flat to their investment property and then rent it out separately, “resulting in an increased yield and good depreciation benefits”.
Chivers points out that such endeavours are supported by the NSW government’s Affordable Rental Housing State Environmental Planning Policy (SEPP), which can fast-track the approval of granny flats in 10 days provided it meets <a target="_blank" href="https://www.planning.nsw.gov.au/plansforaction/pdf/Affordable%20Housing_Fact_Granny%20Flats.pdf">a number of regulations</a>.
Apart from a rise in investor buying properties with granny flats in the outer west, HTW notes an increase in the uptake of house-and-land packages by first-home buyers in this market following the new $15,000 state government hand out for those building or buying a new home, which began on October 1.
“Many first home buyers are paying a bit extra for a base level house-and-land package,” says HTW.
The improvement in the outer west was not matched in other parts of Sydney, with HTW describing the rest of the market as “volatile”.
“Despite strong sales in the first half of 2011, properties on the northern beaches and north shore have underperformed over 2012.
“This is especially true above the $1.5 million price point, where we have seen evidence of re-sales that have declined in value from the peak of the market in 2007. This trend was expected to continue as 2012 began, however many predicted the spring season may have brought people back into the market.
“This has not been the case however, with deep-seated uncertainty when it comes to purchasing high-end property.
“This sentiment appears to be across the board with the eastern suburbs, southern suburbs and inner-west all experiencing similar market conditions throughout 2012.
“It is fairly safe to say that the $750,000 to $1.5 million range has been steady, with no significant capital growth experienced. Properties with a price point below $750,000 have generally had minor capital growth overall, but far less than that experienced in previous years,” says HTW.
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Investors returning ‘in droves’ to outer-western Sydney, with granny flat appeal: HTW

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Property investors, including many mums and dads, are increasingly being exposed to onerous risks and substantial costs associated with demonstrating that land is suitable for development.
A popular investment for mums and dads looking for superannuation income may be to buy a block of suburban land and put up a small residential development.
But with Sydney’s land shortage, increasingly it is the case that blocks of land for sale have a history of contamination, usually from petrol or asbestos.
Many property investors and developers are not experienced in relation to the assessment of risks associated with acquiring land that has been used for potentially contaminative uses.
This may be because they are one-off investors or because they have previously undertaken developments where such risks did not need to be assessed.
A vendor may disclose site contamination and agree to deal with the problem as a pre-condition to settlement of the sale. The trigger for settlement can be a “validation report” issued by the vendor’s consultant.
But the purchaser cannot safely assume that the site will be regarded as having been cleaned up to the extent required for the proposed development and re-use because a validation report may not be sufficient for consent authorities, including NSW councils.
Councils usually require an audit report from an independent site auditor who is accredited by the NSW Environment Protection Authority (EPA).
This can be a very costly process for the land owner.
As the site auditing process is usually a lot more involved than the site validation process, the purchaser is exposed to unforseen costs and delays, which can be prohibitive to the financial viability of the proposed development.
Investigations and sign-offs can cost the new land owner as much as $50,000 to $100,000 – and often much more.
There are purchasers who have bought their land thinking everything was fine who are being left with the burden of having to undertake new environmental assessments and potentially being slugged with big clean-up bills as well.
If they don’t get that DA approved, no one is going to be able to use the block of land and use of the land is essentially sterilised. In addition the new owner is also liable for holding costs and may not be receiving any income.
I have seen contaminated land investigations and remediation take place where the cost has exceeded the cost of the purchase price of the land.
This problem is set to get worse as more and more land with a history of contamination is recycled.
Holding Redlich has introduced a new, free-of-charge service, which includes a liability check on purchasers’ statutory and contractual rights to determine the purchaser’s liabilities and chances of recovery of costs.
We check the purchaser’s rights based on a forensic investigation of the risks posed by the contamination.
In NSW, it is also possible that the buyer can recoup the costs of the clean-up from the person who is responsible, if that person can be found.
The free-of-charge service offered by Holding Redlich is to assist people who are either: 
<ol>
<li>In the process of reviewing transaction documents thathave already been signed because there is concern that they may have inherited a problem; or</li>
<li>In the process of negotiating transaction documents. </li>
</ol>
The idea is to put those people in a more informed position and assist them in understanding their statutory rights and negotiating the contractual rights. 
Subject to this initial investigation, a formalised retainer arrangement would be established in order to represent them in negotiations or in relation to the enforcement of contractual or statutory rights.
Richard Abbott is a partner in funds management, property and projects, stamp duty, planning and environment at<a href="https://www.holdingredlich.com.au/" target="_blank"> Holding Redlich.</a>
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rabbott-Vf72aeZJoE

Land owners can be slugged with onerous environmental clean-up bills if they want to develop

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The struggling far north Queensland Cairns office market is expected to improve in 2013, with a brighter economic outlook for the state economy.
The tourism-dependent Cairns economy and property market took a battering in the wake of the GFC, with employment figures falling, and has not benefited from mining investment in other regional Queensland areas.
Cairns is the gateway to the Great Barrier Reef and a short drive from places like the Daintree Rainforest.
As a result the local office market, which serviced local industries in Cairns, slumped as well – the market covers offices in the town centre, a smaller selection of office buildings in Cairns North, which is that part of the town north of Upward Street, following Sheridan Street towards the airport.
According to property valuers Propell, the Cairns market did not decline further as a result of the two-tier economy in Queensland is expected to benefit from an increase in Asian tourist visits with Jetstar added further Cairns flights from September, while China Eastern commenced 3 flights a week from Shanghai to Cairns since the end of October.
A Propell survey of 100 office buildings on the market found that there is a “considerable surplus of space on the market, and in most cases rents are negotiable for a prospective tenant”.
“There are no vacancy figures available for Cairns. However currently there is some 33,000 square metres of commercial space advertised for lease, which is down from a figure of 42,000 square metres surveyed in July 2012,” says Propell.
A typical rent for a Cairns office is around $200 per square metre gross, inclusive of outgoings.
Incentives are in the region of around 30% plus.
"The outlook for office values in the Cairns region is improving, and lower interest rates and improved economic conditions will make office space here more attractive, with values likely to increase in the coming year,” according to the report prepared by Propell analysts Linda Phillips and James Spencer.
According to Propell, the office market has been steady, though there have been just two commercial office sales, compared with six in 2011 with a total sales value of $6 million.
Propell expects the number of sales to increase as the year draws to a close.
“In terms of numbers, most demand is for smaller properties of less than $1 million, easily affordable for purchase by small business, and this accounts for some seven sales a year, rising to 14 in years of high demand.
“Smaller offices are most popular, in the price bracket of $250,000 to $1 million where owner occupiers can purchase their own property, or they can be purchased as a small investment.
“In this bracket, sales average around four a year, with a median price that has been oscillating. With few recent sales it is estimated that the median price is around $400,000 and steady.
 
 
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Cairns office market still quiet but outlook brighter for 2013: Propell

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Is it a smart idea to sell your business premises – owned in your own name or through your self-managed super fund – at the same time as selling your business? Or should you consider holding on to the property as an investment?
There are powerful arguments for and against simultaneously selling your business and your business premises. And tax, business and superannuation specialists warn the wrong decision could cost an SME owner a lot of money in lost tax benefits, income and capital gains.
The Survey of Financial Needs and Concerns of SMSF Members, recently compiled by Rice Warner Actuaries, shows that pre-retirees surveyed held an average of 13% of their portfolios in business property, falling to just 2% in retirement. (The survey covered super and non-super assets.)
Rice Warner suspects the sharp reduction in exposure to commercial property indicates many business owners sell their business premises when selling their businesses.
Of course, the question of whether to sell business premises at the same time as selling the business confronts SME owners at various stages of their working lives, including when they are selling a business to buy another.
Martin Murden, director of SMSF consulting with the Partners Group in Melbourne, says there is no right answer to the question of whether business owners should hold on to their business premises after selling their businesses. Much should depend on the circumstances.
Here are the cases for and against <a href="https://www.smartcompany.com.au/superannuation/050040-five-strategies-for-smsfs-investing-in-geared-property">selling your business premises</a> when selling your business:
<h2>Arguments against selling your business premises</h2>
1. Target the sale of your business to many more potential buyers
Tax and superannuation lawyer Robert Richards, principal of Robert Richards &amp; Associates in Sydney, says by selling the business without the premises, more buyers can afford to buy it. And as part of the deal, you could offer a very long lease on the business premises – which, in turn, should provide you with a reliable income.
“A lot of buyers of businesses don’t want the business premises or they don’t have the money,” Richards says. And he adds that many buyers would want to spread their risks by not having their real estate investments and their business mixed together.
“By trying to sell your business premises and business together, you are straightaway reducing the number of target buyers,” Richards emphasises.
2. Continue to profit from your business – after its sale
Richards points out you could continue to benefit from the profitability of your business after its sale by renting its business premises to the new owner.
And he asks: “If you know your business is good, wouldn’t it make sense to know you will get a good return on the property [by renting it to the business’s new owner]?”
3. Profit from your knowledge of the property
“Having run your business from the property for a number of years, you should know not only the property but the location,” says Martin Murden. “And you should know of any redevelopment opportunity [for your property].
“We have seen inner-city warehouses converted into properties,” says Murden. “And we have seen the prices they fetch.
“You might decide to hold on to the property for a few years to find a developer who may pay much more than it is currently worth,” he adds.
4. Continue to receive a concessionally-taxed or tax-free rental income and capital gains
If your business premises are held in your self-managed super fund you will keep receiving the same concessional tax treatment on the rental income and capital gains, stresses Richards.
Rental income is tax at 15% a year while capital gains are taxed at an effective 10% during a fund’s so-called accumulation or saving phase (if the property is held for more than 12 months). And your SMSF will continue to receive the usual tax breaks of landlords.
Once the assets of the fund begin to back the payment of a superannuation pension, fund income and capital gains are tax-free. This means your SMSF can eventually sell a property in the pension phase without paying a cent in capital gains tax – no matter how much the asset has risen in value over the years.
SME owners may decide to hold their business premises in their self-managed super funds after the sale of their businesses for a range of reasons including tax-effectiveness, asset-protection, and succession planning for family businesses.
 
<hr>
 
<h2>Arguments for selling your business premises</h2>
1. Improve liquidity of your investment portfolio
 
Murden often sees SMSFs with investment portfolios that are dominated by a single, costly property such as the members’ former business premises. This can lead to various difficulties for the fund, including poor liquidity.
SMSF trustees are legally required when setting their investment strategies to consider, among other factors, the ability of the fund to pay member benefits when necessary. Member benefits include lump sums on retirement and death as well as pensions. Obviously, pressure to pay such benefits increases as the members of a fund age.
In short, valuable business premises – particularly if designed for a specific purpose such as manufacturing a particular product – may be difficult to sell within a reasonable time for a satisfactory price.
Even if your commercial property is not held in an SMSF, liquidity of an investment portfolio is a crucial issue – particularly for retired investors. Liquidity may not have been such a priority when the members were earning incomes from their business.
2. Further diversify your investment
 
Again, SMSF trustees are legally required to consider portfolio diversification and investment risk when setting their funds’ investment strategies.
And the ability for super funds or individual investors to spread their risks and opportunities by having an appropriately diversified portfolio is often limited if most of the money is invested in a business property.
Undoubtedly, many retirees would be uncomfortable with having their retirement lifestyles dependent on the performance of a single asset.
Martin says the departure of a tenant can be a particular problem if your super fund’s assets comprise mainly a business property. Much of the fund’s financial wellbeing may depend upon regular payment of rent.
3. Escape from having to look after your property
 
In retirement, many retirees would not want the task of managing an investment property including dealing with tenants and maintenance. Management of a direct property can still be a burden even with the services of a property manager.
“No-one wants to go overseas on retirement and be cruising down the Rhine when the tenant phones with a problem,” says Murden.
4. Understand that CGT often may not be payable on the sale of your business premises
Fear of a huge CGT liability would make some SME owners reluctant to sell their business premises held, say, in their own names or in a trust – particularly if those premises have significantly risen in value over the years.
However, Richards explains that the small business CGT concessions – together with the 50% general CGT discount (applying to individuals and trusts) – often eliminate CGT on the sale of “active” small business assets. Such assets include the premises of a business.
Some SME owners sell all of their business assets and contribute the proceeds to super if possible. (Super contributions from the proceeds of small business assets that qualify for the CGT small business 15-year exemption or retirement exemption are excluded from the non-concessional contributions cap up to a lifetime limit of $1.255 million for 2012-13.)
What if the business premises were held in an SMSF at the time of their sale? As discussed, CGT is not payable on the sale of assets backing the payment of a superannuation pension.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>
 
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Should you sell your business property when you sell your business? 

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A private Melbourne investor has paid $2.38 million to acquire an Art Deco-inspired former bank building on Oakleigh’s Eaton Mall in south-east Melbourne.
The solid brick building sold under the hammer on December 7 with a large crowd in attendance and exceeded Crabtrees selling agent Mathew Marenko’s expectation of offers in the region of $2 million.
The sale price represents an indicative return of only 3.8% – reflecting the ‘landmark’ status of the building on the trendy eating strip – earlier the year a <a target="_blank" href="https://www.propertyobserver.com.au/retail/lygon-street-premises-of-donatis-fine-meats-slices-records-with-emotion-driven-%24289-million-auction-sale/2012103057521">Lygon butcher shop premises sold for $2.89 million</a> on a yield of just 2.3% and well above pre-auction price expectations.
“This is a building of substance reflected in its original construction for a leading Australian bank and it sits on one of the best and most highly exposed corners in the Oakleigh shopping precinct," says Marenko.
Eaton Mall is open both day and night, with a mix of retailers including cafes and restaurants.
The two-level building  on a 172-square-metre site on the corner of Chester Street and the pedestrianised mall was built about 50 years ago as a banking chamber and branch premises and still bears the logo “CBC”.
It now houses Steve’s Wine Bar on the ground floor and an accounting practice on the first floor, bringing in total annual rental income for the property is $83,500 plus GST and building outgoings.
Steve’s Wine Bar has occupied the ground for the last 17 years and is on a current lease which expires at the end of June 2013 with an option for a further two years.
The restaurant pays an annual rental of $52,000 plus GST plus the building outgoings.
The rental increases are 4% each year with a review to market at the expiry of the current lease in June 2013.
The upper level tenant with its own access from Chester Street is OST Accounting, paying $31,500 per annum on similar terms.
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Private investor buys former Oakleigh bank building for $2.38 million

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Perth’s CBD is set to undergo a transformation as the street level of the CBUS property at 140 William Street gets converted into a Melbourne laneway-style series of bars and restaurants.
Under the proposed changes to plans, 140 William will include a series of laneways with artworks from local artists.
<img src="/images/stories/2012/12/perthlaneways.jpg">
The development has been used as the site of a number of pop-up shops after it struggled to attract shoppers and retain tenants.
Kristi Dempster, the building's retail manager, says it has proposed the alteration of a number of architectural elements of the building to create a well-connected and enticing space with increased light and a strengthened structure of laneways and public spaces.
The three-tower development was designed by architectural firm Hassell.
It consist of 36,000 square metres of commercial office space, leased to the state government, and 6,000 square metres of retail, food and entertainment tenancies.
The building also incorporates Perth’s new underground station the City Railway Station.
Located at the corner of Murray Street Mall and William Street, it comes with pedestrian entrances from William Street, Murray Street Mall and Wellington Street along with access from Forrest Place.
It is the largest building in Western Australia to gain a five-star green star office design rating.
The development has two basement level car parks with two levels of retail and three linked commercial towers above and a restored heritage precinct facing Wellington and William streets.
“Together with Cbus Property, our challenge is to create a more accessible and inviting retail and dining destination at 140,” Dempster says.
“Redevelopment will attract more people to 140 and the Perth CBD to experience the cosmopolitan laneway culture. The existing heritage buildings will provide the perfect backdrop for the engaging artworks, making 140 the place to visit in Perth.”
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Perth to get series of Melbourne-style laneways

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For investors looking for strong rental returns in 2013, Perth and Darwin are the markets to be in, if recent performance is anything to go by.
Both cities – beneficiaries of the mining investment influence – recorded double-digit rental growth over the year to September, while rents hardly moved in the other capital cities and went backwards in Hobart and Adelaide, according to the latest Market Facts update from the Real Estate Institute of Australia (REIA).
The top-performing rental market over the year to September has been Perth three-bedroom houses, with rents rising 15.4% annually to a median of $450 per week.
This growth was almost matched by Perth two-bedroom units, where rents increased by 14.9% to $425 per week.
Not far behind was Darwin’s two-bedroom unit market, with rents rising 13.5% to a median of $463 per week, making the Northern Territory capital city the most expensive unit market in Australia – just ahead of Sydney, where two-bedroom units rent for $460 per week.
Darwin also registered near double-digit growth (9.5%) in three-bedroom house rents to a median $597 per week – the most expensive capital city to rent a three-bedroom house, far ahead of second-placed Canberra ($460).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/12/reiadec12.gif"><img src="/images/stories/2012/12/reiadec12thumb.gif"></a>
Source: REIA
Weekly rents for three bedroom Sydney houses have risen 5% over the past year while Sydney unit rents are up a modest 2.2%.
Melbourne rents hardly moved, while Brisbane registered 2.9% annual gains for both houses and units.
In last week’s Property Observer webinar looking at investor opportunities in 2013, hotspotting.com.au’s Terry Ryder tipped Perth and Darwin to be the standout capital city markets next year having led the recovery in 2012.
Ryder is tipping annual capital growth in excess of 10% in Perth and Darwin in 2013.
He notes that apart from strong house price, Darwin has recorded an “outstanding” 28% rise in building approvals for the year to September (compared with a 9% national decline)
“Every other state and territory has shown a decline in building approvals,” he says.
In addition, Darwin has recorded 17% growth in loans to owner-occupiers (second best nationally) and 22% growth in loans to property investors (the highest growth nationally).
Darwin, Ryder says, is being boosted by its evolution as a liquefied natural gas (LNG) hub with the $34 billion Inpex gas project now under construction as well as being a military hub with a growing influx of US military personnel.
Ryder suggests investors focus on Palmerston City, which is the satellite city to the south of Darwin and the most affordable market relative to the very unaffordable main Darwin market.
On Perth, Ryder says the market is finally showing signs of strong growth having last peaked back in 2007 and has been going backwards since then.
“There has been huge rental growth, but not much price growth, which is just starting to come through now.
“2013 is the year of price growth for Perth,” he says, with the city underpinned by having the best economic indicators in Australia.
Ryder hotspot picks in Perth are the Midland precinct to the north, Murdoch to the south and Rockingham – a very affordable coastal enclave to the south.
For more on Terry Ryder’s investment outlook for 2013 and where to consider investing view the full webinar: <a href="/news">Regions versus capital cities - where to invest in 2013?</a>
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Perth and Darwin register double-digit annual rental growth defying flat market: REIA 

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Clearly, the more funds you have available as a commercial property investor, the wider your choice, and the greater your chances are for growth.
When starting out, most investors feel the only way to leverage your modest equity is through borrowing. And sometimes you may extend yourself too much in the process.
But there is another avenue, which carries far less risk will. And that involves joining with like-minded investors, in a private syndicate.
So, what are the pros and cons?
Almost immediately, a number of potential reasons as to "why not" probably come to mind. And at first glance, they may appear quite valid. But we will explore those a little more in a moment.
The real benefit in joining an investment syndicate is that you are able to multiply your equity and (at the same time) spread your risk.
By law, private syndicates are limited to 20 participants and may raise no more than $2 million in equity. Unless of course, you wish to incur the cost of preparing a product disclosure statement (often up to $300,000 each).
And when they are properly organised, these private syndicates become more like 'Investment clubs' — where you get to know (and benefit from) the combined experience of everyone involved.
Now, some of those objections 
he concern most investors seem to have is: "How do you recoup your investment if you want to get out?"
You know, I'm not really sure what the magic is about 3.5 years after the start, but in the syndicates I've been involved with, this is around the time some investors seem to have a change in their personal circumstances.
In other words, they either:
<ul>
<li>get married, or divorced;</li>
<li>are transferred interstate or overseas;</li>
<li>have a child; or</li>
<li>experience some family upheaval.</li>
</ul>
Whatever the reason, one or more members of the syndicate genuinely need to redeem their equity. In most syndicates, you are then required to go cap in hand to the other members in an attempt to exit on the best terms you can negotiate.
As you are already having to deal with your personal circumstances, the last thing you need is the added pressure such a process involves.
And therefore, the syndicate structure I recommend to clients contains an automatic mechanism — whereby you can redeem your equity at fair market value every four years.
The next concern generally relates to your potential joint and several liability.
In other words, in the case of any loan of being called up, not only could you be responsible for your portion, but potentially, also for a share of others unable to meet their own liability.
Again, the syndicate structure I recommend ensures your exposure is limited solely to the initial enquiry you contribute — and nothing more!
There are also a couple of other items that are easily addressed by adopting the appropriate syndicate structure from the outset.
Bottom Line: The commercial property market is now starting to improve.
And if you feel you would like to gain a strategic advantage,  I could send you a special report to fully explore this alternative avenue in very simple terms.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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The pros and cons of a joint venture to invest in commercial property

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Outdoor adventure store retailer Kathmandu has relocated to a new shop on the struggling Bridge Road discount shopping strip in Richmond.
Kathmandu will lease a 758-square-metre shop at 549 Bridge Road in Richmond in a five-year lease with a five-year renewal option in a deal negotiated by Colliers International’s Mike Crittenden.
The shop was previous occupied by Pulse Pharmacy.
The rental terms have not been disclosed, but Property Observer understands that current new leases on Bridge Road are being negotiated between $350 and $450 per square metre.
The range is quite broad, reflecting the fact that there are many different types of retail properties along this strip, and various locations.
The lease was negotiated on behalf of lessor Bridge Road Investments.
“Proving location is everything, Kathmandu has relocated from directly across the road into a superior tenancy offering significant exposure with two street frontages,” says Crittenden.
“Kathmandu’s relocation confirms the importance of location and prominence to the success of bricks-and-mortar retail,” he says.
Bridge Road currently has a vacancy rate of around 11%, up from a vacancy of 2.9% over the past two years.
<a href="https://www.propertyobserver.com.au/retail/melbourne-shopping-strip-bridge-road-richmond-has-highest-vacancy-rate-in-five-years/2012091656593" target="_blank">In September,</a> Property Observer counted 25 "for lease" signs along Bridge Road between Punt Road and Church Street.
Mark Ashton, Kathmandu’s property and leasing manager, says moving to the new store is part of its store network strategy of “securing high -xposure locations in Australia’s key retail strips”.
“In recent times, Bridge Road has received some negative press but we believe it holds its position as one of the city’s most popular strips.”
According to a Knight Frank survey, the prime retail suburban vacancy rate in Melbourne had climbed from 3.2% to 5.3% over the past two years.
Church Street, Brighton, had the lowest vacancy rate, followed by High Street, Armadale, and Acland Street, St Kilda.
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