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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

<html><body>
Victoria will miss out on the recovery in the property markets of the other major states, according to BIS Shrapnel.
The forecasting firm told a journalists' lunch in Melbourne it was expecting a recovery in NSW, Western Australia, Queensland and Northern Territory in the next few years, with WA the "first cab off the rank", according to senior manager of residential property Angie Zigomanis.
"It's not a resources story, it's a supply and demand story," says Zigomanis, noting rising population growth in those areas. 
NSW is set to benefit from rising population growth coupled with an "atrocious undersupply in housing in the past 10 years", according to BIS Shrapnel managing director Robert Mellor. 
Despite the undersupply, the NSW market has been constrained by affordability concerns for the past decade, says Zigomanis. But in the new low-interest-rate environment, affordability is back to circa 2001 levels, which will spur on a recovery in housing.
Queensland is also set for a housing market recovery, with the next 12 months set to be a consolidation phase and growth picking up in 2014, according to BIS Shrapnel.
But Victoria will be left behind, facing level growth for at least the next three years, says BIS Shrapnel, which forecasts vacancy rates will rise in the next year due to a big influx of residential developments currently in the pipeline coming online. 
Zigomanis says Victoria could experience falls in capital growth for the next two to three years, and if housing picks up in the other states, as it is forecast to do, the RBA could raise interest rates again by 2015, which would nip Victoria's possible recovery in the bud. In that case, a recovery in the Victorian housing market could be five years off.
The firm is equally bearish on the Victorian economy as a whole, saying unemployment could rise to over 6.5% in the next few years. 
"I don't think people realise how bad it's going to be in Victoria," says BIS Shrapnel chief economist Frank Gelber. 
But at least Victorians be glad they are not living across the Bass Strait.
"Tasmania's a basket case," says Zigomanis. 
</body></html>

cknowlton-QnEa6ntUYP

Victorian property market recovery could be five years off: BIS Shrapnel

<html><body>
Provident Capital receiver PPB Advisory is investigating dividend payments totalling in excess of $5 million paid to a company associated with Provident managing director Michael O'Sullivan dating back to 2008.
In a note to debenture holders, the receivers have commenced investigating "payment of in excess of $5 million in dividends to Provident's shareholder (a company associated with Provident's managing director Michael O'Sullivan) since 2008" as well as Provident's auditing and investor disclosure policies.
This follows preliminary assessments by PPB Advisory finding that a number of assets that Provident took control of as mortgagee in possession may have been substantially overvalued and that this was not disclosed to debenture holders, trustee AET or ASIC.
The receivers have warned Provident Capital debenture holders to expect a maximum of 35¢ back for every dollar they invested in the failed non-bank lender and mortgage fund manager.
Provident Capital receivers and managers Phil Carter, Tony Sims and Marcus Ayres from PPB Advisory say that based on “preliminary analysis of the loan portfolio” an estimated likely return “will be in the region of $0.25 to $0.35 of every dollar invested”.
This prime reason for the “shortfall” in returns to debenture holders relates to Provident’s lending and asset management policies with the receivers noting that many of the loans originated on a “pure asset basis without regard to the borrower’s ability to service the debt or repay it otherwise then from a sale of the security”.
The report is also highly critical of the behaviour of Provident Capital when taking control of an underlying asset as mortgagee in possession.
PPB Advisory says Provident Capital failed to issue legal notices enacting its power of sale as well as comply with its obligations under the Corporations Act as controller.
The latest report also says Provident Capital “appeared to lend on poor or unsuitable security on a number of cases”.
When Provident Capital collapsed in July, it was found that 85% of loans funded by debenture holder investments in fixed interest products were six months or more in arrears with a high proportion being first mortgages for risky residential development projects.
Out of a total of 55 loans in the fixed interest term portfolio, 30 were for properties in NSW worth $51.2 million with 15 in Queensland totalling $38.9 million.
The latest report shows that loans were concentrated with two “key borrowers” who were provided mortgages totalling $40 million with the administrators expecting to recover less than 50% of this amount.
The estimated maxium return of 35¢ on the dollar  is contingent on a number of assumptions, including that there are no new defaults from borrowers in the existing loan portfolio; full recovery of certain loans from existing defaulting borrowers, continued support from Provident staff and “no significant adverse changes to the Australian property market”.
PPB Advisory also added that estimate was difficult to work out with any precision and warned that there are “a large number variables outside of a receiver’s control”
Debenture holders should treat this as an estimate only that could change as more information comes to light, said the receivers, who added that there could be further returns arising from claims against the directors of Provident Capital, professional advisors and third parties.
</body></html>

lschlesinger-FZcF9M3vE6

Poor return likely for Provident Capital debenture holders as $5 million dividend payments investigated

<html><body>
This is as good as it gets, folks. It’s time to stop procrastinating and get into the real estate market. 
The Reserve Bank’s latest reduction in the official interest rate, which will probably translate into a 20 basis point decrease in mortgage rates, is the icing on a cake that’s pretty tasty for property buyers. 
The ingredients of the cake include higher incomes, lower prices, greatly improved affordability and interest rates at GFC levels, against a background of solid economic performance, low unemployment and, at long last, rising consumer confidence. 
According to the figures that comprise the HIA-CBA Housing Affordability Index, the median dwelling price is 5% lower than it was two years ago.
In the same time frame, average weekly earnings have risen 7.45%, while the interest rate marker they use has dropped from 7.12% in March 2011 to 6.03% in September 2012. Since September, we have had two interest rate reductions from the RBA. 
So we have had seven consecutive quarters of improving affordability, followed by the rate cuts in October and earlier this week. 
Figures from Mortgage Choice show that, since October 2011, the average standard variable rate has reduced from 7.79% to 6.6% (prior to this week’s RBA cut). Monthly repayments on a typical $300,000 loan over 30 years have fallen from $2,158 to $1,916, a saving of $242 per month. 
Looked at another way, those who have maintained their repayments at October 2011 levels will have reduced their loan terms by close to eight years, saving well over $100,000 in interest over the life of the loan. 
Buyers have been responding to the improving situation – gradually but steadily – with loan commitments to owner-occupiers up 5.5% in the past 12 months and loans to investors up 4%. 
But surveys have suggested many consumers were awaiting another trimming of the official interest rate before getting into the market. Now they’ve got their Christmas present. 
So the fence-sitters are all out of excuses. It’s really not going to get any better than this. 
Capital city prices have stopped falling and are now trending up in most the big cities. We have now had six interest rate cuts since October 2011 and we are unlikely to get more any time soon. 
Everything you’ve been waiting for is now in place. Stop mucking around and get active.
Terry Ryder is the founder of <a target="_blank" rel="nofollow" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> and can be <a target="_blank" rel="nofollow" href="https://www.twitter.com/hotspotting">followed on Twitter</a>.
</body></html>

terryryder-YECXbqmri2

It’s time to stop procrastinating and get into the real estate market: Terry Ryder

<html><body>
Although spring is yet to finish, it looks as if the market has performed better this spring than it did throughout spring 2011.
The RP Data-Rismark Daily Home Value Index shows that across the five capital city aggregate index, which encompasses the five major capital cities and includes the Gold Coast, spring selling conditions have been stronger than for the same period last year.  From August last year to November 30, 2011, home values fell by 1.9% according to our index. However, between August 31, 2012, and November 21, 2012, the index has shown that values increased by 0.9%.
Although a 0.9% increase isn’t overly substantial for the typically strong selling season for the market, it is a significant improvement on the 1.9% decline in values throughout the period last year.  It also indicates that the lower interest rate environment is having an impact on the housing market.  Throughout the last “spring selling season”, standard variable mortgage rates were recorded between 7.8% and 7.55%. Throughout spring 2012, standard variable mortgage rates have been recorded at between 6.8% and 6.65%, around 100 basis points lower than last year.
Clearly, with a lower mortgage rate environment, buyers have shown an increased propensity to enter into the market as the cost of servicing the debt has become cheaper. Unfortunately, timely sales activity data is not available as it is for home values, however, in the most recent month for which data is available (August) there has been a noticeable improvement in sales activity.  Sales volumes over August 2012 were still 10% lower than the five-year average, but they were 15% higher than in August 2011. 
Auction clearance rates, which are a key lead indicator of market performance, have also been stronger throughout this spring than they were in 2011.  On a week-to-week basis, capital city auction clearance rates averaged 45.5% throughout spring last year.  So far this spring, auction clearance rates have been recorded at an average of 53.1%.  These clearance rates are still a long way from strong market conditions but do indicate better conditions recently.
Overall the “spring selling season” for 2012 has been better than 2011 but still nowhere near as strong as it has been over recent years.  With values showing low levels of improvement, significantly lower mortgage rates, and ongoing improvement in consumer confidence it looks as if the performance over spring of this year is a good platform for further market improvement throughout early 2012.  Of course, conditions are still likely to be weighed on heavily by domestic and economic conditions, and it is unlikely there will be a significant acceleration in value growth.
However, values should continue to slowly trend higher into 2013 especially if further cuts to mortgage rates are afforded, either by lenders or via cuts to the official cash rate by the Reserve Bank.
Cameron Kusher is senior research analyst at <a href="https://www.myrp.com.au" target="_blank">RP Data</a>.
</body></html>

ckusher-ujnxiKuFQs

Spring 2012 market performing  better than spring 2011

<html><body>
The spring housing market covers the final four months of the year and is typically, but not always, a period of heightened buyer activity. Last year’s spring selling season ran out of steam as concerns over a weakening economy flattened confidence.
This spring, however, has followed the usual pattern of increased buyer activity, with auction clearance rates firming in both Sydney and Melbourne despite higher numbers of listings.
Although some solid growth has been recorded through the year, activity was nonetheless mixed and patchy among markets and sub-markets, with overall confidence remaining fragile.
This is not surprising, as recoveries are likely to be gradual after the effects of significant market stimuli abate – the Australian housing market has stepped cautiously rather than striding confidently into recovery mode. However, spring has certainly provided a solid foundation for further improvement through 2013.
As a result of increased buyer activity, median house prices have risen modestly over 2012 in Perth, Sydney, Canberra and Darwin. Melbourne and Brisbane house prices have been relatively flat, whereas Adelaide and Hobart house prices have continued to soften under the impact of weakening local economies.
Perth houses prices have responded to pressures from record levels of immigration, a tightening rental market and rising incomes and confidence driven by Australia’s strongest economy.
In Sydney mid-price range change-up buyers continue to be active through spring, particularly in the inner-west, middle-west and south-west suburbs. Sydney’s upper north shore and north-west suburbs were also popular with these buyers. Investors were also active in the Sydney market thorough 2012, driven by a tight rental market.
Melbourne inner-east, inner-urban and inner-bayside prestige housing markets gathered momentum throughout 2012, with high levels of activity being recorded by year’s end in the best spring performance for years. However, other areas in Melbourne remained subdued.
The Brisbane housing market had pulled itself of the floor by the end of 2012 after two years of subdued buyer activity and declining prices. This revival was driven by buyers in the established inner and middle north and north-western suburbs and increased activity by investors particularly in the apartment market.
Expect the steady buyer momentum evident in most capital city housing markets through spring to continue in a similar nature into 2013. Markets will, however, perform at different levels according to the characteristics of the local underlying drivers, with activity remaining fragmented.
Prestige markets will generally follow Melbourne’s lead in 2013, particularly the Sydney prestige market, which is beginning to show early signs of a revival.
Strong population growth will continue to activate Perth, with upward pressure on prices to accelerate through the year. The performance of the middle markets in Brisbane and Melbourne will be largely dependent on sustained jobs growth.
Andrew Wilson is senior economist at <a href="https://apm.com.au/" target="_blank">Australian Property Monitors.</a>
</body></html>

awilson-gzGEjrzF7u

Australian housing market  stepping carefully into recovery over spring

<html><body>
Australian households pre-occupation with saving their income rather than taking on mortgage and other debt has increased, third quarter GDP figures released today by the ABS show.
The household savings ratio has increased from 9.2% in the June quarter to 10.6% in the September quarter – the highest it has been since June 2009.
Economist Glen Maguire, a former economic advisor in the department of the prime minister,  <a href="https://twitter.com/AsiaSentry" target="_blank">tweeted </a>that “no wonder Australian monetary policy is a dulled instrument”.
The increasing propensity among Australian households to save re-affirms the view expressed by Laing+Simmons general manager, <a href="/news">Leanne Pilkington yesterday</a>, that RBA rate cuts are no longer having an impact on the housing market.
In seasonally-adjusted volume terms, the economy grew by 0.5% over the September quarter.
</body></html>

RBA rate cuts blunted by households choosing to save rather than take on debt: September quarter GDP figures

<html><body>
Housing affordability improved by just 0.1 percentage points over the September quarter as the RBA held firm on interest rates and house prices and salaries tread water.
Nationally, the proportion of family income needed to meet home loan repayments reduced from 31.9% to 31.8% over June, July and August, according to the latest quarterly Real Estate Institute of Australia/Adelaide Bank Housing Affordability Report.
There was a similar, small improvement in rental affordability with 24.4% of family income required to meet monthly rental payments over September compared with 24.5% in the June quarter.
<img alt="fast_facts_REIA" height="221" width="400" src="/images/stories/2012/12/fast_facts_REIA.gif">
REIA president Pamela Bennett notes that “unfortunately the earlier [RBA cash rate] cuts in May and June haven’t stimulated the market quite as hoped" but said the slight improvement was cause for "continued quiet optimism".
Adelaide Bank general manager Damian Percy said with the average loan size of new lending commitments now at $320,542 and average monthly loan repayments up slightly to $2,176, or $544 per week, “the current low interest rate environment is encouraging many people to re-visit and weigh up the ‘buy vs rent’ equation".
“Certainly there are many desirable parts of Australia where it is now cheaper to buy and make loan repayments than it is to rent, particularly in blocks of older apartments. This can also be the case for those prepared to take on houses in outer ring suburbs and regional areas that have been ‘let go a bit’ and would see you racking up the frequent flyer points on the weekends in those multi-aisle hardware megastores,” Percy says.
On a state-by-state basis, only three states recorded an improvement in housing affordability over the quarter, led by NSW where the proportion of family income required to meet mortgage repayments declined by 0.9 percentage points from 37.4% to 36.5%, though it remains the least affordable housing market in Australia.
Affordability also improved in Queensland (by 0.5 percentage points to 30%) and in the Northern Territory (0.8 percentage points to 22.1%).
The biggest fall in housing affordability was recorded in the ACT with the proportion of income required to meet home loan repayments in the Australian Capital Territory rising 1.6 percentage points over the quarter to 18.9%.
However, the ACT remains the most affordable market due to the high salaries paid to its mainly civil servant working population.
The report also notes that the ACT’s rents are amongst the highest in the country at $460 per week for a three bedroom house, and $440 for two bedroom other dwellings.
“However, due to a higher average income, over the quarter rental affordability improved with the proportion of income required to meet median rent repayments decreasing 0.3 percentage points to 15.7%,” says the report.
Housing affordability declined marginally in Victoria with the proportion of income required to meet loan repayments increasing by 0.3 percentage points to 32.1% with declines also recorded in South Australia (up 0.6 to 32.6%), WA (0.1 to 23.4%) and Tasmania (0.6 to 26.1%).
The Northern Territory presents the most compelling case for renters to consider buying with the improvement in housing affordability contrasting with the territory recorded the steepest decline in rental affordability with the proportion of income required to meet median rents increased 1.3 percentage points to 24.9%.
For the September quarter, first-home buyers made up 19% of the market, compared with  17.9% in the June quarter and the newf inancing commitments to this group increased 6% over the same period.
</body></html>

Little improvement in housing affordability in September quarter: REIA/Adelaide Bank report 

<html><body>
Ask anyone nowadays what the property market is doing and they will do doubt refer to the median as a justification of how the market is performing. Unfortunately focusing on the median is like trying to watch a game of footy at the MCG from the Eureka Tower Skydeck. You can see it’s a game of footy but you really have no idea what is going on.
The median is only a guide at best because although it provides a general reflection of the market it tells us very little about what is really happening at ground level.
When we look at the median the numbers can be skewed and manipulated in so many ways.  Let's take a look at the median of two suburbs in Melbourne’s west - Point Cook and Newport.
Point Cook’s median grew from $345,000 in 2006 to $450,000 in 2011. Although the annual compound growth rate was not staggering it was still a respectable 5.46%. But here is the rub.
In 2006 Point Cook had 4195 freestanding houses and in just 5 years that number more than doubled to over 9000. Point Cook has experienced an explosion in construction in recent years but building a new home does not come cheap.  This is because Australia is experiencing a skills shortage driven by an exodus of many workers to the mining states in addition to many young people not wanting to get their hands dirty and avoiding manual work.
The demand for new housing combined with the shortage of supply of people who can build them is resulting in a dramatic increase in the cost of construction of new homes. The result is when we see a lot of new home construction in one area the growth in the median is driven by capital improvements to the land not the appreciation of the land itself.
Newport on the other hand lies around 15klms closer to the CBD and while the median value of houses is significantly higher at $673,000 the annual compound growth over the last 5 years has been an impressive 9.84%.
The story in Newport is strikingly different to that of Point Cook. In 2006 the suburb had a total of 3430 freestanding houses but by 2011, according to the census data, this number had actually fallen back to 3120. Newport has a shortage of land and the decrease in freestanding houses is most likely because the only way to meet demand is to knock down some houses and replace them with units or town houses.
While there is no doubt some houses in Newport have been renovated in recent years in the main capital growth has been a result of land appreciation as apposed to capital improvements.
The property at <a href="https://www.realestate.com.au/property-house-vic-newport-110576633" target="_blank">25 Charlotte Street, Newport, </a>is typical of a house in Newport that has experienced a good level of capital growth. This property was purchased in Jan 2006 for $317,000 and sold a couple of months ago for $500,000. The property had no renovations done during this time.
As a result of these two different drivers we need to interpret the growth in median in Point Cook and Newport in different ways. Growth that is driven by capital improvements will deflate slowly as the improvements slowly depreciate over time. However because land is a finite product when the median is driven by land appreciation it will be in a much stronger position to hold its ground into the future.
 
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
</body></html>

marmstrong-sd3emVLPPb

Don't rely on the median dwelling price as a measure of the market

<html><body>
The number of dwellings approved for construction fell 7.6% in October in seasonally adjusted terms, after rising for the past two months, according to the ABS.
The monthly fall was far greater than 1.6% drop forecast by economist polled by Bloomberg and follows an upwardly revised 9.5% rise in September (from unrevised 7.8%) and 23% rise in August.
Dwelling approvals are a forward indicators of future construction activity.
The biggest fall in dwelling approvals occurred in Victoria (-14.2%), followed by Queensland (-7%) and South Australia (-0.1%). Building approvals increased in Tasmania (11%), New South Wales (3.2%) and Western Australia (0.1%).
In the key detaching private sector housing market, approvals fell 1.5% in October while approvals in the more volatile units market fell 18%
Private sector house approvals rose in New South Wales (5.5%) but fell in South Australia (-7.9%), Victoria (-4.5%), Queensland (-2.4%) and Western Australia (-1.3%).
Westpac says private sector house approvals were the "main source of disappointment although the segment continues to follow a strong double-digit uptrend despite the 1.5% fall in October", with Queensland and Victoria both showing more "pronounced weakness across private sector houses than elsewhere".
"Private sector house approvals are showing a vigorous uptrend in WA and steady gains in NSW," says Westpac.
The bank says the main driver of the 18% fall in unit approvals were dwellings in 'high-rise' buildings with 'low to mid-rise' continuing to show a strong uptrend.
The value of total building approved fell 6.7% in October, in seasonally adjusted terms, after rising for two months.
The value of residential building fell 12.9%, while non-residential building rose 6.7%.
</body></html>

Dwelling approvals fall by greater than expected 7.6% in October: ABS

<html><body>
Liquidity-strapped mining magnate Nathan Tinkler is reportedly looking to dispose of a commercial property asset in Brisbane.
Boardwalk Investments, of which Tinkler is a director, intends listing a three storey office building at 366 Queen Street for sale, according to an report in the Australian Financial Review.
The report does not say which commercial agency has the listing.
It was purchased in February last year for $7.7 million having previously traded for $2.2 million in 2000 when Elizabeth and Gregory Nunn bought it from Macarthur Capital.
The property sits on a 379 square metre block and has 1,200 square metres of office space at the quieter end of Queen Street.
Local commercial agents do not expect the property to sell for more than $5 million.
In October, Tinkler reportedly let a <a href="https://www.propertyobserver.com.au/commercial/nathan-tinkler-lets-another-property-purchase-lapse/2012100957061">$37?million low-rise Brisbane office acquisition lapse</a> with the the 5,500-square-metre building overlooking the Brisbane River put back on the market through Jones Lang LaSalle agents Seb Turnbull and Geoff McIntyre.
The billionaire's finances – especially the Tinker-aligned developer Buildev Group – have been under scrutiny since his attempted $5.25 billion bid for Whitehaven Coal collapsed due to a lack of funding.
Tinkler reached a settlement with Mirvac’s Domaine Steel after it successfully sued Ocean Street Holdings and Tinkler’s Buildev Group, after an earlier agreement to buy industrial land for a new coal terminal in Newcastle. 
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News