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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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The mother of the Gold Coast entrepreneur Mark McIvor has sold Brisbane Supreme Court she had no idea her son convinced her to sign $22 million in mortgages. Janice McIvor said when she found out she could lose her home and asked her son Mark for her home back, he told her she would be "effing lucky". Janice McIvor has brought a case against Westpac seeking the bank be refrained from enforcing a mortgage and guarantees over her Currumbin home.
Janice McIvor' son Mark McIvor founded the Chevron Island merchant banking business that had $550 million in funds under management for about 1,400 clients, many of them locals, before receivers stepped in last year. The former fashion boutique owner claims her son, who had a "very bad temper", asked her to sign many documents over the years and she never investigated what they were. "God, I was scared. I was shocked ... I owed the bank $22 million," she told the court according to News Ltd papers.
Janice McIvor said she now had no relationship with her son after the two argued when she discovered the situation and she obtained her own legal advice and refused to hand over the property. When asked why she signed documents without reading thoroughly, she said it was because she trusted her son. "I am not that stupid because if I had read that, I would have thought how could I mortgage anything," she said. "I had nothing to pay anything back with for that amount. I couldn't even have mortgaged a push bike. "I didn't read anything. I just signed because I trusted Mark and I thought he's doing well and I must be helping him with whatever it was. "On reflection now, after having been cost a lot of heartache, I can see all that but at the time it was simply doing something for my son." 
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jchancellor-FAypfDUnLy

Mark McIvor's mother says she couldn't have even mortgaged a push bike

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Property investors with small budgets should consider investing in larger regional towns where prices are more affordable, but “avoid one-industry conurbations such as mining or resort towns” according to investment advisor Monique Sasson Wakelin.
In her latest blog post, Monique Sasson Wakelin says a regional town investment may be an option for prospective investors whose budgets don’t stretch to the $350,000 threshold that will buy “an entry level investment grade one bedroom apartment in an inner suburb of most of our capital cities, with a little more required in Melbourne and a fair amount more in Sydney”.
She says investors should consider regional cities that have a larger population and a diverse range of economic activity.
Sasson Wakelin says good regional options for budget-conscious investors are Newcastle and Wollongong in NSW and Geelong, Ballarat, and Bendigo in Victoria.
However, there are risks with investing in regional towns while the returns may not match those attainable in the bigger capital city markets.
“Be aware that due to the compromise in location, you are unlikely to attain the capital growth in a regional city that you can expect from the capital,” says Sasson Wakelin.
“The aim should therefore be to pay off debt quickly. With the acquired equity, you can then use this first property as a stepping stone into a capital city market.”
Investors should focus on property close to the town’s CBD, often within 1 kilometre of centre.
“A word of warning. It is much easier to pick a quality asset in a capital city than in a regional centre.
“Follow the fundamentals for inner suburban investment and the risk is low. An investment in a regional town is far more problematic,” she says.
Investors trying to weigh up whether to stick with the city or consider a more affordable regional investment option next year should sign up for <a href="/news">Property Observer’s free webinar with Terry Ryder: Regions versus capital cities - where to invest in 2013?</a> The webinar takes place on December 6 at 12.30.
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lschlesinger-FZcF9M3vE6

Regional towns a budget property investment option but avoid one-industry mining towns: Monique Sasson Wakelin

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A $3.2 million Millers Point penthouse weekend sale reflected a 13% decline on its previous $3.7 million sale in 2006.
It first sold off the plan in 2001 at $3.65 million. It's in a Pottinger Street block of 33 apartments, the Parbury, a Mirvac-Transfield-built residential complex in the Walsh Bay Sydney Theatre precinct.
Spanning two levels and 338 square metres, it came with three bedrooms, with large terrace with views across the rooftops of terraces in The Rocks. Its quarterly strata levy was around $7900.
It had been listed for August mortgagee auction with $3.5 million hopes.
It was the week's second highest sale, according to the RP Data top 10 sales list.
The list was topped by a near new Vaucluse clifftop duplex that fetched $3,275,000.
Melbourne sales dominated the list with six sale, the priciest being $2.8 million in Hawthorn.
1. <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/5_marne_street_vaucluse_nsw_2030/7142466">5 MARNE Street, Vaucluse, NSW, 2030</a>, five-bedroom house, sold at auction on November 17 by Mcgrath Estate Agents for $3.275 million
2.  <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/901/1_pottinger_street_dawes_point_nsw_2000/2077596">901/1 POTTINGER Street, Millers Point, NSW, 2000</a>, three-bedroom unit, sold at auction on November 17 by Morton And Morton Real Estate for $3.2 million
3. <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/12_new_beach_road_darling_point_nsw_2027/2063968">12 NEW BEACH Road, Darling Point, NSW, 2027</a>, three-bedroom house, sold on November 16 by Cb Richard Ellis -  Residential Projects for $3 million
4. <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/12_lennox_street_hawthorn_vic_3122/11192004">12 LENNOX Street, Hawthorn, VIC, 3122</a>, five-bedroom house, sold at auction on November 17 by Kay &amp; Burton Hawthorn for $2.8 million
5. <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/18_john_street_kew_vic_3101/11353753">18 JOHN Street, Kew, VIC, 3101</a>, four-bedroom house, sold at auction on November 17 by Jellis Craig Real Estate Hawthorn for $2.6 million
6. <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/12_stewart_street_brighton_vic_3186/10023547">12 STEWART Street, Brighton, VIC, 3186</a>, four-bedroom house, sold at auction on November 17 by Marshall White Real Estate Armadale for $2.52 million
7. <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/59_power_street_hawthorn_vic_3122/11193916">59 POWER Street, Hawthorn, VIC, 3122</a>, four-bedroom house, sold at auction on November 17 by Marshall White Real Estate Armadale for $1.95 million
8. <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/73_graham_street_albert_park_vic_3206/9179369">73 GRAHAM Street, Albert Park, VIC, 3206</a>, four-bedroom house, sold at auction on November 17 by Hocking Stuart Real Estate Albert Park for $1.88 million
9. <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/5_denning_street_south_coogee_nsw_2034/6254591">5 DENNING Street, Coogee, NSW, 2034</a>, four-bedroom house, sold on November 14 by Park Beachside - Coogee for $1.87 million
10. <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/7_creswick_street_brighton_east_vic_3187/10031343">7 CRESWICK Street, Brighton East, VIC, 3187</a>, five-bedroom house, sold at auction on November 17 by Marshall White Real Estate Armadale for $1.81 million
 
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Parbury penthouse on Pottinger Street runs out of puff with 13% decline: RP Data's top 10 sales

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Industry super fund AustralianSuper says it is on the “cusp” of rolling out its strategy to double its property investment portfolio to $9 billion over the next four years following the appointment of  a research manager and an investment manager.
Plans to double its property investment holdings were announced by <a target="_blank" href="/news">fund chairwoman Elana Rubin</a> in March this year.
The super fund, one of the largest in Australia with $46 billion in funds under management, has also indicated that it will target acquiring offices and shopping centres.
Its strategy is part of a growing trend for large industry super funds to increase their exposure to direct commercial property investments as a way to diversify their portfolios and offer more choice to their members – and to counter the loss of members who are setting up self-managed super funds, which can acquire property in their own right.
However, unlike another<a target="_blank" href="https://www.propertyobserver.com.au/commercial/super-fund-cbus-mulling-direct-property-investment-for-members/2012111257785"> industry super fund Cbus</a>, which is considering allowing its members to invest directly in property owned and managed by its property subsidiary, AustralianSuper will not get involved in developing new projects.
As part of its rollout of the new strategy, the super fund’s head of property, Jack McGougan, is currently in the process of appointing a research manager and senior investment manager to build and manage new local and international relationships reported the Australian Financial Review.
Their roles will be to ensure that portfolio management decisions are increasingly made in-house while property and asset management will remain mainly out-sourced – the Queensland government’s QIC and unlisted property fund manager ISPT will continue to manage the majority of AustralianSuper's property assets.
The fund will focus on acquiring office and retail assets with a “slight bias” towards super-regional shopping and shopping centres in the CBD.
<a target="_blank" href="https://www.propertyobserver.com.au/retail/new-york-based-blackstone-group-buys-top-ryde-mall-for-%24341-million/2012111957931">Yesterday’s acquisition by Blackstone</a> of the Top Ryde City shopping centre for $341 million would likely be the type of asset sought by the fund.
In the office space, the fund will target premium and A-grade buildings in the capital cities.
For more on where property fits into your wealth-creation portfolio, sign up for our free webinar on <a target="_blank" href="/news">Thursday, November 29 at 12.30.</a>
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AustralianSuper to target offices and shopping centres in quest for $9 billion property portfolio

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Global office rents and values were largely unchanged across quarter three of 2012, according to CBRE.
CBRE’s statistics show capital values ticked up 0.6%, while rents edged down 0.07%.
Gains in America were offset by weaknesses in Europe, the Middle East and Africa (EMEA) and Asia-Pacific.
“Commercial real estate investors and occupiers turned more cautious in response to political, fiscal and economic uncertainty,” says CBRE global chief economist Raymond Torto.
“Despite this, office rents and values have held their ground as both the leasing and value indices remain above year ago levels.”
The Americas had the strongest quarterly and yearly gains, reflecting the strength of the US and rising prices in Latin America and Canada, according to CBRE. The rent index rose 0.3% over the quarter and 2.9% over the year.
EMEA had a decline in capital values over the quarter with figure of 110, staying flat over last eight quarters.  The EMEA index reached a peak in 2007 at about 130 and a trough of 100 in 2009.
Asia-Pacific was the only region where the capital value index rose above the 2007 peak level.  The region experienced a recovery from mid-2010, which has stalled in the face of reduced export opportunities to Europe and the US.
Rents for EMEA and Asia-Pacific were down over the quarter and flat over the year.
The countries that bucked the trend include Germany, Poland, Norway, and Finland in Europe all performing strongly, as well as Taipei and Manila in Asia.
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awalsh-7Ub9EypybQ

Global office rents and values remain flat: CBRE

&nbsp;

Find out the median price in the suburb and the amount by which prices rose or fell in the past year, five years and 10 years.&nbsp;

<hr />
&nbsp;

Consider engaging the services of a buyers&#39; agent. A buyers&#39; agent should be an expert in his or her area and should be able to provide a reasonable guess as to a property&#39;s value. A buyers&#39; agent will also be beneficial if the market is going to auction, as he or she will be able to bid calmly and without emotion, knowing when to walk away if the bidding gets above your top price.

&nbsp;

Track property sales in your chosen suburb carefully. Learn what properties are going to auction on a weekend, ask agents for price guides (except in Queensland), and then follow up with your state&#39;s Real Estate Institute on Monday to find out what they sold for or whether they were passed in. Pay close attention to comparable properties to the one you envision (similar position, same number of bedrooms, etc).

&nbsp;

<hr />
&nbsp;

If the property is going to auction, consider putting in an offer beforehand. Some vendors are likely to happily accept a bird in the hand rather than two in the bush, preventing an auction where emotion can get the better of you.

<hr />
&nbsp;

Make your first offer quite low, if the property is being sold by private treaty. Never put in your top offer as your first offer; you want to have somewhere to negotiate from.

<hr />
&nbsp;

Walk away if the price is higher than what you are comfortable with. You will find other properties in your price range that you will like just as much &ndash; and if the vendor cannot find any takers at the higher price point, he or she may call you and accept your lower offer.

po-LsXgBTHBmX

Seven tips to avoid paying too much for property

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In Australia, thus far, we have avoided the sharp downward cycle experienced in the USA and areas of Europe during which the “pre-crash” environment was stimulated by low interest rates, unregulated credit booms, and to put no lighter word on it – greed.
Inevitably the market has reverted to what could be termed a more balanced atmosphere. Even with the best efforts from our state and federal governments, which are set on promoting growth in the housing sector to make up for a drop in projected mining and yearly profits, our current low interest rate environment and new rounds of swiftly introduced first-home buyer incentives are failing to produce the same level of enthusiasm witnessed during the 2009 buying spree – thus far, at least.
However, we’re reaching that time of year where real estate pundits will dust off the crystal ball and make some future predictions into 2013 – not that we haven’t had a fair few already.  Out will come the property clocks, and we’ll get a lesson in how to tell the house market time in order to assess exactly when “the right time to buy or sell” is.
To do so, most will take a look at lessons from history and evaluate market cycles – and to be fair, it would be foolhardy to ignore previous trends that form repeated patterns over time.
But it’s worth remembering the words of John Toland – a great American author and historian who used a single statement to neatly sum up “historical cycles” in his Pulitzer prize-winning book, The Rising Sun”:
“There are no simple lessons in history,” he commented.” It is human nature that repeats itself, not history.”
Human behaviour dictates historical cycles, not the other way round – hence why the consumer sentiment index is so important when assessing market cycles and can often act contrary to “on-paper” economic forecasts.
The trouble with the housing market is that we have had a decade-long boom in growth, during which median prices in many areas of Australia have more than doubled in nominal terms, and tools such as negative gearing and SMSF investment have been broadly adopted by many mum and dad investors. Reliance on the capital growth of the asset above and beyond inflation to fund retirement has further fuelled the established playing field and resulted in real estate becoming a speculators’ paradise. 
The market is spruiked, tweaked, evaluated, and analysed, and splits groups down the middle as if it were a game of politics.
We have monthly and now “daily” indexes to fixate and <a href="https://www.propertyobserver.com.au/residential/firm-pattern-of-recovery-in-australia-s-housing-markets-just-as-rp-data-rismark-data-showed-tim-lawless/2012111157738" target="_blank">argue over</a> – and with $12.6 billion in revenue set to be raised by state governments through stamp duty alone this financial year, real estate investors and property speculators are not the only ones hoping for “broad-based” market recovery in 2013 – proving once again values are on the up and punters are flocking to the market in an emotional driven foray.
The wealth of our real estate market has the ability to make or break Australia’s bank account, with some estimating its overall value around $4 trillion. It is especially significant as foreign and local real estate investment funds perceive the Australian housing market a relatively “safe” terrain counting on future prospective population growth to underpin prices for many years to come.
However, despite the growing populous, the RBA recently pointed out in its November speech that <a href="https://www.rba.gov.au/speeches/2012/sp-so-131112" target="_blank">“the outlook for dwelling investment”</a> is being negatively impacted by a number of factors, principally “the sharp increase in house prices from 1999 – 2003” along with broad-based development costs, “red tape”, and lack of infrastructure in outer-suburban areas, the cost of which – no longer funded by governments – is now passed onto the developer and consequently home buyer.
As such, new housing demand has fallen short of underlying demand, leaving many scratching their heads wondering why the much-spruiked “housing shortage” and strong population growth has not translated into sales.
It could be argued that even with a slight uplift in the number of seasonal transactions as we approach the end of 2012, a larger population of buyers have determined that the cost of housing is still too high and further corrections to market prices need to be in evidence before they read the property clock as a call to dust off the cheque book and head back out into the housing market terrain.
As if to underline how unaffordable housing is deemed to be on a historical time scale, households are no longer decreasing in size, children are leaving it later to leave the nest and the increase in the number of people sharing accommodation has accelerated.
Lifestyle factors aside, few would argue that affordability and the reluctance to take on debt is not a significant contributor to slowing of growth in local dwelling investment – and this is mirrored in the UK and US, where shared buying schemes are growing in popularity, and the rental market is once again feeling the strain, with groups such as Shelter UK calling for government action to reduce the cost of accommodation for struggling individuals and families.
For investors, housing has long been viewed as a hedge against inflation.  Since the mid-1990s to the peak in 2010 Australia’s housing market has enjoyed long periods during which prices have far exceeded the rate of inflation. However, as shown by some of the oldest housing indexes in the world, house prices that consistently exceed the rate of inflation typically undergo a period of “correction” and remain the same in real terms when viewed over the longer trajectory.
 
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One of the first economists to show this was Yale’s Robert Shiller in his UShouse price index dating back to 1890. Another index also worth mentioning is the oldest housing index in the world – the “Herengracht Index”, which dates back to the 17th century – starting in 1628.
Professor Piet Eichholtz of Real Estate Finance at Maastricht University has undertaken extensive research on the unique document, which follows the change in real estate values along a “prime strip” of the Herengracht Canal in Amsterdam – one that is lined with magnificent single- and double-fronted period terraces. The span of his study extends to the mid-1970s and is fascinating in its content.
Modern indexes are required to adjust for changes in housing stock. For example, as extensions are added or properties upgraded and replaced, keeping an accurate record of median price changes which stratify for the difference is a very real challenge.
In contrast, the Herngracht Index shows a series of repeat sales figures for a small but significant strip of real estate that is relatively stable in type and located in what has remained a premium pocket of Amsterdam.  Therefore the need to stratify is reduced – although, as Eichholtz points out in his extensive report, the original 614 lots have, over time, reduced to 487 properties as adjacent buildings merged to allow for a larger floor area. 
This aside, for the purpose of the study, Eichholtz only makes an allowance for one “hedonic” change – the use of office space, which has added a commercial element to some of the housing’s original residential purpose and obviously has an ongoing impact on price. 
The results are significant – in nominal terms the housing values increased “more than tenfold,” with a ‘bi-annual’ increase of “11.6%” for the period. This is not surprising; after all, the area of real estate under study contains the same local desire as a “golden mile” beach strip in Australia.
However, in real terms the increase in values are largely insignificant – after 345 years of “market cycles,” the inflation-adjusted cost of housing only increased 3.2% – leaving the “real” value broadly the same.
Eicholtz carried out a similar study in rent values for Amsterdam dating from 1550 to 1900.  Once again, the “real” change over the entire period remained at the same level at the end of the study as the beginning.  Despite growth in population, economy and changing vacancy rates, short-term volatility was overridden by long-term “inflation-tracking” stability.
Of course, this study covers a distinct period in history during which trade wars, “tulip mania”, occupation, depression, WW I, WW II and various waves of immigration spurred rapid volatility in boom and bust cycles.
It’s fair to say our region of the world is a tad more stable and as such, the index under study may not be all that relevant in current property investor’s eyes. Opponents to any forthcoming on the horizon Australian property crash cite our strong population growth, limits on land supply as well as good long-term credit, wage growth and somewhat disputable “well-regulated” lending practices as placing a floor beneath prices – and thus far, this has indeed been the case.
However, the post-1950s US market was also considered stable – with Richard Peak from the Federal Reserve Bank of New York confirming back in 2005 that “(house) prices are in line with economic conditions”. Two years later, and his assumptions were starting to show cracks.
Throughout every period of history, it’s been the norm to assume a rosy outlook and the exact timing of any significant or sudden fall in property prices has rarely been predicted with outstanding accuracy.
As I said above, its human behaviour that dictates cycles and on paper figures aside, it is abundantly clear from the low level of transactions throughout the year and reluctance to take on debt that our home buying psychology – at the very least – has changed.   
At the moment, most analysts are pointing towards an improvement in the housing market as we enter 2013 and thus far, this seems to be a fair proposition – however considering the current instability with job losses and some of our larger companies going into receivership, along with continued instability overseas in both Europe and the Middle East, and the RBA describing some of its  previous forecasts as no better than a <a href="https://www.rba.gov.au/publications/rdp/2012/pdf/rdp2012-07.pdf" target="_blank">‘random walk in the park’</a>, there are certainly no guarantees.
There is, however, plenty of solid evidence to show our housing market is unaffordable for a growing populous of young buyers, and crashes, bubbles and long-term housing indexes aside, the RBA, Treasury, and both state and federal governments should be concentrating on keeping prices stable for an extended period of time, rather than placing us back in a low interest rate, incentive driven inflationary environment.
With 2013 in sight and an expected continuation of somewhat tenuous economic conditions, the long-term health of our housing market cannot be sustained unless we seriously address the issues that have pushed house prices out of reach for a growing minority.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
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However, we’re reaching that time of year where real estate pundits will dust off the crystal ball and make some future predictions into 2013 – not that we haven’t had a fair few already.  Out will come the property clocks, and we’ll get a lesson in how to tell the house market time in order to assess exactly when “the right time to buy or sell” is.
To do so, most will take a look at lessons from history and evaluate market cycles – and to be fair, it would be foolhardy to ignore previous trends that form repeated patterns over time. 
But it’s worth remembering the words of John Toland – a great American author and historian who used a single statement to neatly sum up “historical cycles” in his Pulitzer prize-winning book, The Rising Sun”: 
“<span style='font-size: 10.0pt; line-height: 115%; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;'>There are no simple lessons in history,” <span style='font-size: 10.0pt; line-height: 115%; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; font-style: normal; mso-bidi-font-style: italic;'>he commented.<span style='font-size: 10.0pt; line-height: 115%; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;'>” It is human nature that repeats itself, not history.” <span style='font-size: 10.0pt; line-height: 115%; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; font-style: normal; mso-bidi-font-style: italic;'> 
<span style='font-size: 10.0pt; line-height: 115%; font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi; font-style: normal; mso-bidi-font-style: italic;'>Human behaviour dictates historical cycles, not the other way round – hence why the consumer sentiment index is so important when assessing market cycles and can often act contrary to “on-paper” economic forecasts.
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catherinecashmore-6LXia3pPQj

The centuries-old crystal ball that proves Australia's housing price growth cannot outpace inflation forever

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Hotels have delivered the best total returns for commercial property investors over the past 12 months to September despite a marked decline over this period due to falling CBD room rates, according to the latest Australian Commercial Property Index compiled by the Property Council of Australia and IPD (Investment Property Databank).
The index tracks the performance of over 1,600 commercial property assets held by unlisted property trusts, REITs and government-owned commercial buildings. Annual total returns for the hotel sector fell by 620 basis points over the year to September, but the sector still continues to outperform offices, retail and industrial assets with an annual total return of 11.4%.
Click to enlarge
<a href="/images/stories/2012/11/ipdnov20.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/11/ipdnov20thumb.gif"></a>
“The softening was driven by a decline in average room rates across major CBD hotel markets,” says IPD.
The office sector was the most stable sector over the year to September 2012, showing a slight decline of 30 basis points over the year to record a total return of 10.1%, “predominantly caused by weak demand linked to a soft labour market”.  Retail property was the poorest performer of the property sectors, posting a significant decline of 140 basis points over the year to post an annual total return of 8.8%.  “Weakness in returns was driven by ongoing softness in retail spending and general consumption,” says IPD. Industrial sector returns declined moderately by 50 basis points to post an annual total return of 9.8%.  “Industrial property continues to be supported by a strong income yield, which insulates the sector from capital declines,” says IPD. Across all sectors, IPD’s commercial property index generated a total return of 9.7% for the year ending September 2012, with 7.5% of this coming from an income return (predominantly rental income) and 2% from capital growth.  This was slightly lower than the previous quarter’s total annual return of 10% and down on the 10.6% total return achieved for the year to September 2011. Commenting on the latest quarterly results, Peter McGuinness, research manager of IPD in Australia and New Zealand, says below-trend macroeconomic activity has resulted in softer capital growth and lower total return for the broader Australian property market.  “Looking forwards, the market is exposed to downside risk with continued slowing in China and a moderation in the mining boom, which is likely to result in modest growth over the short to medium term. “The core CBD office markets of Sydney and Melbourne have been negatively impacted by sluggish employment growth and weak net take-up of space, translating into weaker capital growth and lower total returns.  “The non-core CBD office markets of Perth and Brisbane are the current outperformers, but with a slowing in the resource sector, both markets are heavily exposed to downside risk. “In the retail sector, super and major regional shopping centres experienced the largest decline in returns as they were negatively impacted by weakness in discretionary spending.  “Conversely, neighbourhood shopping centres, which are anchored by supermarkets, have been supported by stable food retailing. With their high income yield, neighbourhood centres are expected to outperform larger format centres over the next twelve months.”  “The industrial sector continues to offer an attractive yield play for investors seeking a strong income stream. With capital growth across the broader market expedited to remain soft, a competitive income yield makes industrial property an attractive investment option,” says McGuinness
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Declining hotel returns still offers best reward for investors: IPD

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An attractive unoccupied commercial building in the Brisbane coastal suburb of Sandgate dating back to the 1930s has been listed for auction, with price expectations starting from $400,000.
It could fit nicely into the portfolio of a small investor or SMSF portfolio or could appeal to a business looking to own its own premises.
Located at <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/1-loudon-street-sandgate/Property-Details-buy-commercial-4653913">1 Loudon Street</a>, <a target="_blank" href="/news">Sandgate</a>, the 130-square metre property is split over two levels and has previously been host to a bank, a hotel and a boarding house.
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It stands at the end of a fork comprising Loudon Street and Seymour Street and is a short walk from the Sandgate train station.
It last sold in 1997 for $200,000 but has remained within the same family.
It has the potential to be occupied or leased as offices or retail premises and comes with three partitioned offices, a boardroom and a reception.
The premises are being marketing by Lawrence Temple and Hudson Dale of Raine &amp; Horne Commercial Brisbane North, who tell Property Observer they have received a significant number of enquiries since the start of November.
The land area is 167 square metres and offers two car spaces.
The property will be auctioned on December 5 at 11am.
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Two-storey 1930s commercial building in Sandgate, Brisbane has $400,000 auction hopes

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US private equity firm the Blackstone Group has become a major retail mall player in Australia after acquiring the in-debted Top Ryde City shopping centre in Sydney for $341 million from receivers McGrathNicol.
The mall on the corner of Devlin Street and Blaxland Road in Ryde has been in the hands of receivers since February 2011 after a syndicate of four banks foreclosed on retail development tycoon John Beville’s Bevillesta Pty Limited, after it was unable to meet the repayments on loans that financed its $800 million re-development.
It collapsed just six months after its grand re-launch attended by the prime minister. The shopping centre was valued at $840 million four years ago.
It covers 78,000 square metres of retail space and ranks among the 40 biggest shopping centres in Australia.
According to a report in the Australian Financial Review, Blackstone fought off competition from both local and overseas institutional investors to acquire the shopping centre.
Bidders for the mall included Lend Lease fund’s management unit and investment bank, Goldman Sachs, Melbourne businessman and shopping centre manager Sam Alter, super fund ISPT and listed property trust, CFS Retail Property Trust.
The mall was marketed by Simon Rooney of Jones Lang LaSalle via an expressions of interest sales campaign.
 
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