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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Home values have increased in half of Australia's capital cities over the past year, according to RP Data.
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Housing market recovery to continue, but at a low level: Cameron Kusher

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RBA governor Glenn Stevens has warned that lowering interest rates following an “asset price bust” to stimulate lending can have "toxic consequences".
Stevens highlighted the challenges faced by the RBA in managing rising property prices and boom to bust cycles in a speech published today and delivered to the closed door Bank for International Settlements (BIS) conference co-hosted by the RBA in August.
Stevens said there has been “a long debate about whether monetary policy should respond to asset prices – the so-called lean-versus-clean debate”
The RBA responded to the GFC by dramatically cutting the cash rate by 400 basis points from a setting of 7% in October 2008 to 3% by April 2009, spurred on by the bankruptcy of investment bank Lehman Brothers on September 15 2008.
He said many people had contributed to the lean-versus-clean debate during the conference.
He said the case for leaning into the property price upswing (by raising interest rates) is that “growth cost might be small and the benefits of avoiding future pronounced instability might be great”.
However, he said the argument against this approach is “that we just do not know enough about asset price and credit dynamics to do this with any precision or with the hope of much success, at least without risking serious damage to other parts of the economy".
But he said the flip-side of the argument of “simply expecting to clean up after the credit boom is not sufficient anymore" because "the mess might be so large that monetary policy ends up not being able to do the job when the time comes”.
“Moreover, if the monetary policy clean-up after the asset price bust involves interest rates low enough to prompt some other sector of the economy to leverage up in order to spur the growth, then the clean-up itself might leave its own toxic consequences,” he said.
Regardless of the actions taken by central banks, Stevens said monetary policy cannot succeed in managing cycles, asset values and leverage by itself.
In his speech, Stevens also highlighted how property price crashes had taught Australia painful lessons, dating as far back as 1890 when a combination of foreign capital inflow, speculation and a decline in lending standard resulted in an acute depression in Melbourne, far worse than the 1930s.
He also added that in his lifetime, the liberalisation of the financial system in the 1980s and 1990s created a boom in commercial property prices that then “unwound quite painfully”.
“There is little doubt that property price swings and financial stability are intimately connected, our own experience in Australia certainly confirms that,” said Stevens.
He said the lessons learned from these experiences is that it is crucial to get the underlying monetary framework right.
“Indeed maintaining overall macroeconomic stability is the most important thing that monetary policy can do,” he said, adding that implementation of the flexible inflation-targeting regime nearly 20 years now had enhanced the RBA ability to maintain this stability.
But he said monetary policy built around controlling consumer price inflation though critical not enough.
“Financial stability and monetary policy are related – the relationship is not simple, it is complex, but you certainly cannot divorce the two,” he said.
He said the second lesson was that property and asset prices matter a great deal in forecasting future output and consumer price inflation.
“[Asset prices] matter because property holdings tend to be leveraged. Big swings in asset values where the holdings are not leveraged will not, I conjecture, matter all that much.
“It is property that is being used as collateral for significant lending by financial institutions that makes property prices so important. It is actually the leverage that matters,” he said.
The third lesson learned from previous crashes, Stevens said, was the importance of prudential supervision.
“The most elegantly crafted rules will not make much difference if the capacity and will to enforce them is not in place.
“There is probably too much tendency to fall for the easy line that if only we can craft better regulations and bring the bankers under control then all will be well.
“Actually, it is the application of the rules and the framework that matter.
“After all everybody was using some version of Basel II or Basel I. This was more or less the same set of regulatory arrangements pre-crisis. But not everybody had a collapse of their banking system,” he said.
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Lower interest rates following bust can have "toxic consequences": Glenn Stevens

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Australia’s profitable banking sector, cautious lending practices and the “skilful counter-cyclical policies” of the Reserve Bank have been noted by Oxford University macroeconomist John Muellbauer, in  a speech looking at the risks posed to financial stability from "boom-bust" housing cycles.
Muellbauer provided an overall positive assessment of Australia’s prudential and regulatory oversight in a paper published today by the RBA but  delivered to the closed-door Bank for International Settlements (BIS) 24th annual conference held in Sydney in August.
The theme of the  conference was ‘Property Markets and Financial Stability’.
In his paper titled ‘When is a Housing Market Overheated Enough to Threaten Stability?’ Muellbauer warns that Australia’s economy is exposed due to its dependence on China buying its raw commodities.
“Australia’s dependence on exporting to China and more generally its reliance on a permanent improvement in its international terms of trade does point to a potential vulnerability in other economic fundamentals,” says Muellbauer.
“If these fundamentals turned negative, the high levels of household debt in Australia could seriously constrain growth even though the appropriate exchange rate adjustment could very likely be managed without a rise in interest rates, and fiscal policy would also be available, given low levels of government debt.”
But Muellbauer does note that in terms of financial regulation, credit fundamentals are more “robust” in Australia than the US, Ireland, the UK and Spain due to “the relatively modest leverage and continued profitability of its banking system, as well as skilful counter-cyclical policies of its central bank”.
He also says that while Ireland and the UK resorted to “short-maturity money market borrowing” when securitisation markets dried up in 2007 "increasing their vulnerability”, this was not the case in Australia due to “far more cautious” lending practices in Australia and because banks remained profitable”. Muellbauer also praises the RBA’s role in guarding against financial instability.
“Clearly, the quality of financial regulation and the general policy stance of the central bank is another important factor in judging the fragility of the fundamentals.
“In Australia, the Reserve Bank has long had a pragmatically cautious respect for the risks posed by credit and housing price booms, and has been decisive in raising rates to head off incipient booms; the Australian Prudential Regulation Authority has always been tough on bank supervision,” said Muellbauer
Muellbauer is professor of economics and a senior fellow of the Institute for New Economic Thinking at the Oxford Martin School, Oxford University. He is also a Fellow of the British Academy, of the Econometric Society, of the European Economic Association and a Research Fellow at the Centre for Economic Policy Research.
The conference, which took place between August 21 and 22, brought together central bankers and leading academics to discuss important policy issues concerning property markets and financial stability
Discussions examined measurement issues in property prices, housing finance, the effects of macro-prudential policies, the management of banks' risks and securitisation.
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Profitable banks and cautious lending practices protecting Australia against "boom-bust" housing cycles: Oxford University economist

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Australia’s already highly-concentrated listed property trust sector is set to consolidate even further following GPT’s $3 billion bid to acquire Australand’s investment property portfolio and commercial and industrial business.
GPT’s non-binding proposal does not include the residential assets and business of Australand.
It has been described as a “semi-friendly” approach with GPT looking to enter into “constructive discussions with the board of Australand with the aim of developing a complete proposal in the interests of both sets of securityholders”.
GPT is seeking to re-weight its portfolio and strategy with an increased exposure to office, logistics and business parks while Australand has been seeking to reduce its non-residential holdings having announced the sale of two Sydney commercial properties in the last week.
It sold 80 Alfred Street in Milsons Point to a private developer for $49 million on December 7 and on December 4 announced the sale of the 111 Darlinghurst Road, Kings Cross (the former Crest Hotel) to the Iris Capital Group for $65 million.
Australand has confirmed the unsolicited approach from GPT Group.
“The proposal involves Australand Holdings Limited retaining the residential business and remaining a listed entity," says Australand.
“The proposal is incomplete, highly conditional and is subject to a number of factors including undertaking due diligence.
“Australand has become aware of market rumours in relation to this proposal and, accordingly, has decided to make this announcement.
“The Board of Australand has not formed a view at this stage on the proposal. There is no guarantee that the proposal or any discussions with The GPT Group will lead to a formal, binding proposal for the acquisition of the Investment Property Portfolio and its Commercial and Industrial business. Accordingly, the Board of Australand recommends that securityholders take no action at this time.”
Both REITS have said they will keep their shareholders and the market updated of any further material developments as they occur.
Australand has appointed Fort Street Advisers as financial adviser and King &amp; Wood Mallesons as legal adviser in relation to the proposal.
GPT Group has been led by Michael Cameron since 2009 while Australand has ben led by Bob Johnson since 2007.
Australia’s listed property trust sector (AREITS) has a market capitalisation of $82 billion with more than 90%  of the market held by the top 10 stocks, with Westfield Group and its shopping centre spin-off Westfield Retail Trust accounting for around 40% of the pie.
The other major A-REITs are Stockland, Goodman Group, GPT, Centro, Mirvac, Dexus, Investa, Charter Hall Office REIT and Multiplex.
The proposed GPT/Australand deal is set to spur renewed merger and acquisition activity, after a quiet 2012 with the Investa Office Fund considered the most vulnerable along with Colonial First State – Commonwealth Property Office Fund and CFS Retail, according to the Australian Financial Review.
According to 2012 BDO A-REIT Survey, this year saw less transactions taking place than in 2011, but more interest from offshore buyers.
Over 2012, “offshore acquirers were at the forefront taking advantage of the opportunity to acquire high quality assets at a discount to net tangible assets with a consortium led by Reco Ambrosia acquiring Charter Hall Office REIT.
According to the BDO survey, while the number of merger and acquisition transactions within the sector declined in comparison to last year, the overall transaction size increased as the transaction activity focused primarily on mid-cap A-REITs.
“Despite the sustained impact on the high Australian dollar, acquisitions were again led by foreign investment, in particular from North America. Overseas buyers have been attracted to A-REITs for two reasons.
“Firstly, some buyers have capitalised on depressed security prices in order to acquire foreign real estate in recovering markets at below asset valuation. Secondly, Australian real estate remains attractive to overseas investors due to the stable economy, and the underlying quality of assets with occupancies and strong tenant registers,” says Sebastian Stevens, BDO corporate finance partner and author of the A-REIT Survey
 
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GPT $3billion bid for Australand portfolio to spur further consolidation activity in already concentrated A-REIT sector

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Two articles that caught my attention last week were <a href="https://m.smh.com.au/victoria/warnings-as-outer-suburbs-property-market-teeters-20121128-2aefh" target="_blank">Chris Vedelago’s</a> excellent piece on Melbourne’s outer-suburban estates where buyers who previously committed to a house-and-land purchase using a “holding deposit” of some $500 to $1,000 (or in some cases 5%) were cutting their loses and cancelling projects following an inability to gain finance as a result of the post-boom slump – an inevitable consequence of short-term first-home buyer grants and incentives.
The other was Roz Hansen’s excellent speech – originally delivered at The Sambell Oration to the <a target="_blank" href="https://www.bsl.org.au/">Brotherhood of St Laurence</a> ” entitled “A Tale of Two Melbournes? The Disparities of Place and How to Bridge The Divide” and <a href="https://www.propertyobserver.com.au/victoria/melbourne-must-plan-for-its-future-growth-of-outer-suburbs-or-social-economic-and-environmental-problems-will-escalate-roz-hansen/2012112858154" target="_blank">printed in Property Observer last week.</a>
Vedelago’s article pointed out the harsh consequence an inevitable rush to market induces when foolhardy first-home buyer grants are introduced and subsequently scrapped in an attempt to boost new home sales.
According to the report (in which the research was derived from the “specialised urban research organisation” Research4), developers have had nearly 1,800 lots returned this year as plans to build new homes were scrapped.
Other data from Research4 indicates that a drop in Melbourne’s land sales accounted for an 83% overall fall in the national number of land transactions from the peak of the second quarter 2010 to first quarter of 2012.
On the face of it, the data is shocking, however it’s not surprising. The 2009-10 boom in land sales was driven wholly by a rollerball of acquisitions induced principally by first-home owners taking advantage of increased state grants and the additional federal first-home owner boost –not to mention the low interest rate environment.
The effect subsequently inflated Melton’s population by some 7,535 new residents and increased the median lot price by a lofty 60%, which, according to ‘Research4’, made it the “fifth most expensive land market out of 33 submarkets across Australia”.
The foolhardy nature of inducing so many residents to move into a sparsely facilitated suburbs, lacking in essential infrastructure – and subsequently abandoning them in “never never land” as grants are scrapped, causing land prices to fall sharply, seems to be of no consequence to state governments, which are busy introducing yet another round of incentives to stimulate (prop up) the construction industry in outer suburbia.
Hansen voiced thoughts I have shared in many of my columns for Property Observer – principally the poor planning and failed “infrastructure” promises that equate to municipalities where residents are more likely to suffer health issues such as eating disorders and depression accumulating from inadequately integrated and facilitated communities.
As I have previously mentioned, unless we address the core issues behind our new greenfield estates, recent history will keep repeating itself and the outer suburbs will (for want of a better word) become the relative ‘ghettos’  of Melbourne town.
It would be far more sensible to build up already facilitated satellite towns such as Geelong and Ballarat in Victoria as an example, and continue to extend our train and public transport amenities, than create new suburbs of sprawling Mc Mansions where the trade-off of a bigger house is of little consequence once you step outside the front door.
 
<hr class="system-pagebreak">
 
Perhaps Australia wasn’t hit hard enough by the GFC to learn valuable lessons in community innovation and sustainability?  Instead governments seem to concentrate their efforts on how to continually prod and poke the housing market under the misguided hope a jump in construction and resurgence of pre-GFC booms are the economic drivers that could rescue state and federal balance sheets as we enter 2013.
The HIA (which understandably are not unbiased in its commentary) on the one hand screams how ‘affordable’ housing is, with its ‘housing affordability index’ showing levels are back to the early 2000s.  And yet, at the same time the HIA informs us that “The RBA must cut interest rates to bolster the chances of a housing recovery in 2013.”
What the HIA fails to address is how home owners will survive when rates finally rise and the incentives that the industry advocates ad infinitum are once again withdrawn.
First-home owner’s grants and low interest rates are of no long-term help to a failing construction industry.  All they do is provoke an endless series of relatively short-term boom and bust cycles – hurting construction workers and home buyers over the long term and providing a great example of Einstein’s beautiful definition of Insanity – “doing the same thing over and over again and expecting different results“.
Hansen mentions that landlocked residents need to turn to “buses, walking and cycling”.  However, in a  recent study prepared by” Adelaide thinkers in residence”, it was noted that in the absence of train lines,  “when driving is the only option for travel – then walking and biking are abandoned”. In other words, they are not preferred modes of transport for our 21st-century generation outside of recreational activities.
For outer suburbia, we need train lines – firstly because people need a fast way of commuting to existing workplaces and inner-city amenities, and secondly, because factories and additional jobs will not “up sticks” and move outwards if the only option they have to recruit staff is in a local neighbourhood of falling land sales and poor infrastructure facilities.
Research4 also made comment that “Melbourne’s first-home buyers could soon be priced out of the new homes market unless the state government returns a $13,000 grant scrapped in June”.
It bases its research on the stark reality that outside of an incentive-fuelled environment,  in which buyers have an uninfluenced period of time to think about their purchase, a large majority  opt not to buy in outer suburbia for profoundly obvious reasons.  Reasons that must be addressed before a construction boom can adequately address both housing affordability and population growth.
 
<hr class="system-pagebreak">
 
Melbourne’s market in particular is a concern because an unprecedented decade of growth has led to a housing market that is clearly overpriced for a growing minority of buyers. Even an uplift in transaction levels as we finish the year with a Christmas rush of bumper auction activity hasn’t spurred values with RP Data recording a 1% fall in dwelling medians for the month of November and a 2.5% drop for the year to date.
A lack of first-home buyer activity has been noted by a number of players.  In a recent article that recognised “the lower interest rates are not causing [first-home buyers] to rush into new dwellings,” Meriton’s Harry Triguboff commented that the Reserve Bank would need to drop rates more than a “quarter or even half a per cent” to boost spending.
Obviously Triguboff is looking for a quick solution best served to his own interests – principally boosting sales of his high-rise developments.
However, issues of affordability can only be addressed by rectifying the disparities in the type of accommodation available for the first-home buyer demographic and ensuring it is “foot through the door” affordable.
Currently the only choices on offer are either a) out of price reach - especially for single-wage purchasers, b) not in a location that provides a viable trade-off between the cost of commuting and purchasing, or c) in accommodation that first-home buyers are prevented from purchasing due to restrictions from various lending institutions.
As a case in point, back in 2011 when Melbourne’s Fishermans Bend (”Australia’s first inner-city growth corridor”) was mooted, Planning Minister Matthew Guy stressed the project would focus on affordable housing.   However, he was either misleading the public or ignorant of the core drivers that boost buyer activity, because as a number of commentators and planners pointed out at the time, in order for the suburb to work  and not become another Docklands, there would need to be a mix of low-density housing well suited families and first-home buyers .
However, it’s now revealed Melbourne’s new CBD zoning has all but ensured the area will be dominated by high-rise developments fitted out to appeal to the predominant market for high-rise accommodation – principally Asian investors, who (when compared with Aussie home buyers) have cash to burn, value high-spec accommodation and are certainly not in the market to offer rental rates for less than premium returns.
Hansen ends her speech stressing that she is ‘optimistic’ about the fate of Melbourne, although she hopes futures aspirations will not be ‘business as usual’ - however, I am less optimistic.  Successful long-term planning policies require a fundamental change in the way both town planners and ministers think about housing.  In essence this means looking up from the budget books and enforcing a much stronger collaboration between both state and local community.
However, if the scheduled council meetings and calls for public opinion are then followed by the same old course of action regardless of local opinion, 20 years down the line and Einstein’s theory of insanity will once again reach fulfilment.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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Building more outer Melbourne suburbs without infrastructure a foolhardy move

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A heritage-listed  B &amp; B guesthouse in Hobart constructed of sandstone and convict bricks, built in 1829 has been listed for leasehold sale.
This North Hobart guest house has a price tag of $465,000, with a wide and varied history, having had many different uses over the years.
<a href="https://www.thelodge.com.au/" target="_blank">The Lodge on Elizabeth </a>operates as an accredited four-star accommodation abode, with 13 ensuite rooms and a cottage set in a garden at the rear of the property. There is also a breakfast room, guest lounge, small kitchen and  modern two-bedroom owner's  quarters.
The stately Georgian mansion is situated at 249 Elizabeth Street has operated as a guest house since the early 1990s, with the exterior maintained by the interstate landlord.
Lodge on Elizabeth was originally know as the Melbourne Lodge, built by John George Stracey, who was the colony's first auctioneer. It became a private boys' school in 1831, and later the home for George Salier and his 14 children. The Argus newspaper reported that in June 1892, making his way home from his warehouse, George Salier fell dead in Elizabeth Street. He "staggered, fell and never spoke again" .
There were many other notable residents, including Sir Adye Douglas who was the Tasmanian premier between 1884 and 1886.
The lodge promises to offer guests an "olde world" experience as opposed to a bland motel room and includes cellars with evidence as to where convicts have been chained and period furniture.
The property is listed for sale by <a href="https://www.realcommercial.com.au/property-hotel+leisure-tas--500529803" target="_blank">Paul Scott of Tourism Brokers</a>.
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Hobart guesthouse built from convict sandstone with rich colonial history listed for leasehold sale

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Have you ever wondered why politicians are so universally distrusted when so many of them work 24/7 for the benefit of their communities?  It’s because they use 90% of their media time telling us that other politicians are not to be trusted.  As a result we don’t trust any of them.
I find it really disappointing when this attitude spills over into other areas of our lives, and so it is with this in mind that I write in response to the article by Margaret Lomas on Property Observer entitled <a target="_blank" href="https://www.propertyobserver.com.au/residential/nras-is-a-tax-scheme-a-property-investment-must-stack-up-on-its-own-margaret-lomas/2012120258187?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=observers">“NRAS is a tax scheme”.</a>
Lomas’s article has sought to demonise NRAS and people associated with NRAS by the use of inflammatory language like “greedy developers”, “flippant claims”, “prostituted for gain” and “misleading in the extreme”.  It is this approach to commenting on property investing that leads to people distrusting property investment in general.  The result is that many Australians may miss out on potential investment benefits through analysis paralysis and “whom do I believe?” syndrome.
Like many other areas of business, and indeed our lives, NRAS and the property investment field in general may have its share of people who do the wrong thing, but there are also many professionals working for the benefit of not only investors but also the NRAS tenants.  Lomas's pen portrait of NRAS is inconsistent with the fact the 57% of all NRAS allocations have been made to endorsed charities that are not-for-profit organisations.
My company has specialised in NRAS property services for well over two years.  We have sold property from most of the major NRAS-approved participants to clients throughout Australia and have provided mortgage broking, financial planning, self-managed superannaution fund and legal services related to NRAS purchases.  We are better placed than any other company or organisation in the country to know the facts of NRAS.  So let me address some facts relevant relating to Lomas's article.
She asserts that “It’s pretty easy to counter the flippant claims of NRAS marketers” and uses three points to support her argument but all three are inaccurate and poorly researched.  Let me take each in turn:
<ul>
<li>“Middlemen” make big commissions – Almost all property (investment and owner-occupier alike) is sold by real estate agents who earn their income from commission on sales.  All property prices factor in agent commissions and marketing costs.  The vast majority of commissions being paid on properties sold are well under the $20,000 that Lomas claims as a minimum.  I accept that commissions offered in Queensland have for years been higher than other parts of the country, but this applies to both NRAS and non-NRAS property.</li>
</ul>
Furthermore the commissions we earn on sale of NRAS properties are well earned.  The government has spent nothing on promoting the scheme or educating investors.  It has been left to companies like ours to do the heavy lifting on educating investors in a highly beneficial and socially responsible investment. It has been appreciated by our clients.  We have provided hundreds (if not thousands) of hours of education, seminars and advice to our clients free of charge that other companies charge for.  Earning commissions from vendors enables us to do this without charging our clients. 
<ul>
<li>
Oversupply – Lomas claims that NRAS allocations are made in lots of 100.  This is incorrect.  The size of allocations has varied.  The minimum allocation size has been 12.</li>
</ul>
<ol></ol>
There are only a small number of areas where 100 or more NRAS allocations have been made.  Official government figures show that NRAS allocations have been made across 849 postcode areas.  Of these 639 areas have less than 50 allocations.  There are some postcode areas with large allocations, for example, in <a target="_blank" href="/news">Bruce </a>in the ACT, but these allocations have been made to large institutions such as the Australian National University and will not be available to individual property investors.
The conclusion is that there is no evidence that NRAS properties are being released in large enough numbers into individual markets to push down market rents.
<ul>
<li>
NRAS allocations and hotspots – Lomas claims NRAS properties are rarely in hotspots.  Hotspot locations are a matter of personal opinion, but let’s just look at how NRAS rates in some of the locations Lomas has identified as hotspots in the Property Observer article on  October 8: <a target="_blank" href="https://www.propertyobserver.com.au/hotspots/plenty-of-regional-hotspots-to-tempt-investors-as-market-hovers-at-five-oclock-on-property-clock-margaret-lomas/2012100757021">“Plenty of regional hotspots to tempt investors as market hovers at five o’clock on property clock: Margaret Lomas”</a>.</li>
</ul>
<ol></ol>
Here are Lomas's hotspots and the number of NRAS allocations in each:  <a target="_blank" href="/news">Ballarat </a>(443 NRAS allocations), <a target="_blank" href="/news">Bendigo </a>(267), <a target="_blank" href="/news">Gladstone </a>(243), <a target="_blank" href="/news">Mackay </a>(313) and <a target="_blank" href="/news">Toowoomba </a>(146).  I think there is fair opportunity for hotspot buying.
Lomas claims NRAS is purely a tax scheme.  If this is the case then so too is superannuation and non-NRAS property investing.  The provision of tax incentives by the government for superannaution and property investing in general underlie investing in these areas.  We saw when Paul Keating removed negative gearing incentives for property investors that the effect was so dramatic that he had to quickly reinstate them.
 
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There is absolutely no comparison between NRAS properties and failed agriculture investment scheme, as Lomas implies.  NRAS properties are owned outright by the investors and can be sold as non-NRAS properties to investors or owner-occupiers at any time.
NRAS, which has been modeled on similar successful overseas initiatives, provides additional tax incentives on top of other forms of property investment, but it also offers plenty of choice of assets to purchase.  There are apartments, townhouses, and houses across 849 postcode locations Australia-wide.
One point where I do agree with Lomas is that investors should be buying NRAS property, like any other property, on its investment merits.  For residential property the name of the game is capital growth, and we always have this discussion with our clients before they buy.
NRAS properties sit side by side with non-NRAS property and have the same capital growth potential.  But why buy a non-NRAS property with negative cashflow when the NRAS one next door has the same capital growth potential with positive cashflow?
In relation to the private tax ruling that Lomas refers to in the article, we have recently become aware of this private ruling also.  Lomas  implies that this ruling is some proof of a marketers'/developers' plot to mislead property investors.  Conspiracy theories are best left to Hollywood.
Let’s be clear on what the ATO private ruling means.  The ruling that she refers to is specific advice to one person by the ATO in answer to questions raised by that person pertaining to their own personal circumstances.   Whilst the ruling may have general applicability it is not necessarily the case.
We have been in contact with a number of NRAS-approved participants in relation to this advice, and they were not aware of it.  It is clear that this ruling has come out of left field for those involved in NRAS.  I believe that the issue has now been taken up by one or more of the NRAS-approved participants with the government, as it is seen as inconsistent with the intent of the scheme.  The government's NRAS website states “investors are able to apply property expenses and non-cash deductions and allowances against a lower assessable rental income, increasing the negative gearing benefit”.
That said, we have reassessed the cashflow modeling for NRAS properties taking into account this ATO ruling.  Whilst the cashflow is reduced, we disagree with the size of the claimed impact.  Everyone’s circumstances are different, but we would still expect the majority of people to be able to buy an NRAS property with positive cashflow.
When we started with NRAS it was largely unheard of by property investors.  It has gathered momentum now and is more widely known but unfortunately recent promoters of NRAS and promoters of alternatives to NRAS have often not got their facts straight.  So let’s get the facts straight, encourage our clients to embrace property investment no matter what their investment choice, and leave the inflammatory demonising to the politicians.
Ruby Janssen is managing director of <a target="_blank" href="https://onyx.net.au/">Onyx Domain</a> and is an author and a successful property investor.
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NRAS property investment stacks up and shouldn’t be demonised: Ruby Janssen

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More Chinese left for an international holiday during China's Golden Week holiday in October than ever before in history, according to official data. Many of them came to Australia, hunting for property.
Our Hong Kong call center worked around the clock taking queries from Chinese real estate buyers in locations around the world, including the Gold Coast.
Buyers viewed 66% more property on our international property portal Juwai.com as Golden Week approached. Then, once Golden Week started, traveling Chinese buyers switched to their phones and iPads – giving mobile traffic a 99% boost.
Chinese buyers have spent millions on luxury residences in new towers like the Broadbeach Oracle and the Soul and Hilton buildings in Surfers Paradise, according to recent reports.
As I write this, there is a three-bedroom, four-bath residence on the 22nd floor of The Oracle for sale at $1.8 million. Perhaps it will sell to a Chinese buyer, too.
If so, it might well go during the next peak travel periods of Christmas and Chinese New Year (in February 2013). It is no surprise that Chinese New Year is the busiest travel time of the year, but Christmas?
Yes, Christmas. Santa isn’t just for Westerners any more. Christmas has become a key travel period for high-net-worth Chinese in part because it is the ultimate symbol of the allure of Western culture.
It is during holidays like Christmas and Chinese New Year that many high-net-worth individuals combine overseas holidays with overseas property scouting. And we all hold the purse strings a little less tightly when on vacation.
There has been a significant rise in the number of enquiries about Australia that we receive from potential buyers, with many of our wealthy Chinese customers telling us they plan to take up Australia's new Significant Investor Visa.
Even the Chinese think of Australia as "the lucky country". This new visa exempts the language requirement and is more flexible with residence guidelines, which is lucky indeed.
With so many Chinese investing in Australian property, the question that vendors and agents ask me most often is, "Would my property appeal to Chinese buyers?"
There are already around 230,000 Australian listings on <a href="https://juwai.com/" target="_blank">Juwai.com</a>. To find out if your property should join them, you need to look at it from the eyes of an investor from China.
 
 
<hr class="system-pagebreak">
 
If your property is in a major metropolitan area like Sydney, Melbourne, Brisbane, Adelaide or Perth, it could interest a Chinese buyer. But you don't have to be in a city centre. There is high demand for working farms, as well.
Residential properties with income and projected capital growth near mines and mining areas make a good investment case and therefor attract Chinese buyers. Other types of properties that attract Chinese investors are new developments, which even non-residents can purchase.
Even what the Foreign Investment Review Board calls "second-hand dwellings" are very appealing to Chinese buyers. Second-hand housing is popular with buyers who know Australia already, including those who already have one or more properties here. Second-hand housing is also very popular with the Chinese Australians who search for local property on <a href="https://juwai.com/" target="_blank">Juwai.com</a> because it is in Chinese rather than English.
It may be beyond the scope of this article, but there is more demand than ever for large investment opportunities, like those above $50 million. In fact, a journalist contacted me about one such deal as I sat at my desk writing this article.
If your property fits into one of these categories, what should you be doing to reach the Chinese buyer? Here, I'll share my top tip with you. (<a href="https://www.propertyobserver.com.au/residential/how-to-understand-chinese-property-buyers/2012020253055" target="_blank">For more tips, read this article</a>)
If you are a vendor, make sure your agent acts on this advice: write your advertising copy and property descriptions with the flavor of destination and lifestyle marketing more than of traditional local property marketing.
Remember, the typical Chinese buyer is part foreign tourist and part savvy investor. Copy like, "Malvern delight – off main road, fully renovated, period charm," does not help sell your listing to the Chinese buyer.
Instead, the copy should focus on Australia as a safe investment, on the lifestyle the property offers, the number of total rooms, transportation links, the quality of schools, suburb highlights, the security of investment and local property value trends.
As <a href="https://www.propertyobserver.com.au/industry-news/the-five-words-that-help-sell-your-home-and-the-five-that-don-t-mike-mortlock/2012111557844" target="_blank">Mike Mortlock has pointed out </a> the right words can help sell your property faster and for a higher price.
When marketing to the Chinese buyer, be sure to choose your words carefully.
Andrew Taylor is the founder and CEO of sales and marketing of <a href="https://www.juwai.com/" target="_blank">Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world. Find out more about him at <a href="https://list.juwai.com" target="_blank">list.juwai.com.</a>
 
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How to sell Australian property to the savvy Chinese investor: Juwai's Andrew Taylor

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Landlords struggling to fill large floors in the CBD should consider splitting floors to attract a growing number of tenants looking for smaller, fitted office space.
A substantial facelift and sub-division of space has led to a more than 10 leases being signed in the last 12 months at 470 Collins Street in the Melbourne CBD – a  sign of strong demand for quality office space up to 200 square metres on Collins Street.
In the past 12 months, I have leased almost 800 square metres of space, ranging from 40 square metres to 200 square metres, within 470 Collins Street, which is commanding rents in the $400-$450 per square metres (gross) range.
In total, I have negotiated more than 20 leasing deals in the first half of 2012 to tenants on split floors and I continue to receive substantial enquiry on spaces of 100-300 square metres with a usable fit-out, with many converting to deals.
Quality fitted tenancies in the CBD are in high demand, however there is very little supply.
Tenancies in quality B-grade buildings with a good fit-out, or which have been refurbished, are also in strong demand.
Some smaller tenants are seeking a flight-to-quality, however there is a limited number of options.
Sub-lease space is quite attractive to tenants for short-term purposes, while benefiting large tenants by reducing their costs by subletting unused fitted space.
Incentives are still important in attracting tenants in the current market, however having a quality fit-out in place could assist landlords in reducing the incentives required.
Landlords with whole floors up to 700 square metres should consider splitting floors where possible into tenancies of 150 to 350 square metres to cater to the increased demand for this kind of space.
Adam Davy is <a target="_blank" href="https://www.colliers.com.au/">Colliers International</a> executive for office leasing. 
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Splitting floors helps attract CBD office tenants for unused fitted space

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Total returns on retail property are averaging around 10% and have dipped slightly over the past six months, according to Colliers International.
The chart below shows that the retail property sector has improved significantly from the GFC slump, but has slipped slightly since peaking in July last year.
"2012 was a watershed year for retail, with the sector undergoing significant structural change: weaker retail sales driven by a shift in the mix of spending, retail price deflation and pressure on retailer margins, challenges posed by the strong Australian dollar, and the continued evolution of online retailing in Australia," says  Nora Farren author of 2012: Retail in the rear view report.
Click to enlarge
<a href="/images/stories/2012/12/colliersdec11.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/colliersdec11thumb.gif"></a>
"Up until recently, the performance of retail was supported by the expansion of both domestic and international retailers, which in-turn drove rental growth, centre expansion and development, and sector valuations.
"Nevertheless, over the year to September 2012, retail property actually posted a decline in returns (of 140bps), to record an annual total return of 8.8%, on the back of slowing capital growth.
"While in a low-interest-rate environment, this level of return is satisfactory, super and major regional shopping centres actually experienced a large decline in returns, a result of the negative impacts of weaker discretionary spending.
"This was particularly evident for clothing retailers and department stores.
"While, neighbourhood shopping centres, which are anchored by supermarkets, have been supported by steady growth in food retailing. Income growth for retail remains under pressure with new tenants paying less rent, which is starting to be reflected in valuations. Although, with their relatively higher income yield, neighbourhood centres are expected to outperform larger format centres over the next twelve months," she says.
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