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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Australia's mining-led construction boom will peak in 2014 with the value of planned projects already starting to contract, according to the Deloitte Access Economics September quarter Investment Monitor.
Deloitte Access Economics expects investment levels to continue to rise in the short term and then peak in 2014 as fewer projects move through planning to the construction phase.
It notes that investment in mining projects has been the “major driver of economic growth” but says that “all good things must come to an end”.
Mining investment projects currently account for nearly half (46%) of all major construction projects  either under construction or mooted, with transport and storage infrastructure projects (many tied to mining projects) making up nearly a third (31%).
The report finds that the value of planned projects has fallen back slightly over the past three months by $10.6 billion to $465 billion due to a lack of new resources projects, and some project cancellations, including BHP Billiton’s <a href="https://www.propertyobserver.com.au/south-australia/headwinds-for-roxby-downs-property-investors-and-other-nearby-mining-towns-as-bhp-s-olympic-dam-expansion-project-cancelled/2012082256180">$20 billion Olympic Dam mine expansion</a> project near <a target="_blank" href="/news">Roxby Downs</a>, as well as the delaying of the <a target="_blank" href="/news">Port Hedland</a> outer-harbour port expansion project in the Pilbara region in WA.
“While the bulk of other resources projects in planning are still on the agenda, there are question marks over the scale of some potential projects, such as Fortescue’s $6.2 billion Solomon mine expansion and [Gina Rinehart’s] Hancock Prospecting’s $9.5 billion Roy Hill project," says Deloite Access Economics.
Question marks also hang over Xstrata’s possible $6 billion Wandoan coal mine in Queensland, which has been placed on hold until market conditions improve, while BHP Billiton’s plans for a $3 billion expansion of the Peak Downs coking coal prospect have been shelved.
The Investment Monitor, which tallies all private and public engineering construction, non-residential building and equipment investment projects in all Australian industries, found the value of projects increased by $6.2 billion, or 0.7% from the June quarter, and has increased by 3.7% over the past year.
As the chart below shows, the mining boom accelerated from March 2011, but has slow-down since the start of the year.
Value of definite projects by status ($billion)
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/11/deloittenov12.gif"><img src="/images/stories/2012/11/deloittenov12thumb.gif"></a>
 
<hr class="system-pagebreak">
 
 
Mining projects currently account for $422 billion (45.6%) of all investment projects in Australia. Of these, $222 million are under construction and $22 billion are committed to be built.
However, $106 billion are under consideration and a further $73 billion are considered "possible" – indicating some level of uncertainty about the future pipeline of projects.
Transport infrastructure projects – mostly rail – account for $289 billion (31.2%) of projects under construction or mooted. Many of these rail projects support the flow of materials to and from mining projects in remote regions.
Non-residential projects account for just $95 billion (10.3%), with the biggest contributors being educational and healthcare projects.
“This portion of the construction sector is on the wrong side of the two-speed divide, with soft retail turnover, little white-collar jobs growth, and weak business and consumer confidence providing a shaky foundation for ongoing investment,” Deloitte Access Economics says.
The three biggest new projects identified in the report are wide-ranging being the proposed $1.1 billion North Surat Taroom Coal Project in Queensland from Cockatoo Coal, a proposed $1 billion light rail network for Perth and an $815 million development of the Commonwealth games village on the Gold Coast.
There were $21.5 billion worth of projects were completed during the September quarter, including the $4.8 billion airport link road works towards Brisbane Airport; the $3.5 billion Wonthaggi desalination plant in Victoria; the $2.6 billion Karara magnetite iron-ore mine, east of <a href="/news">Geraldton</a> in WA; and Incitec’s $935 million <a href="/news">Moranbah</a> ammonium nitrate plant in Queensland’s Bowen Basin.
The quarterly report ties in with the thinking of the RBA, which said in last week’s <a href="https://www.propertyobserver.com.au/residential/lower-rates-working-their-way-through-the-economy-as-rba-notes-improving-housing-market-outlook/2012110957723">November Monetary Policy Statement</a> that while “mining investment has continued to grow rapidly” due to a pipeline of liquefied natural gas (LNG) projects in recent quarters “mining companies have scaled back their investment plans”.
The four biggest projects identified by Deloitte are all LNG projects, led by the $40 billion construction of the Kimberley Gas Hub at James Price Point, Inpex Ichthys $34 billion LNG project increased and the $19.6 billion Queensland’s Curtis LNG project – the value of all these projects have been upwardly revised since the June quarter.
The RBA expects mining investment to “peak a little earlier and at a lower level than had earlier been expected (around 8% of GDP rather than around 9%).
“This change reflects the reappraisal of spending plans in the coal and iron ore sectors as well as a reassessment of the profile for spending on some large and complex LNG projects,” says the RBA.
Deloitte Access Economics says some projects “on the drawing board may be further from the green light now than they were three or six months ago, given the downturn in global commodity prices and concerns over China’s development path in the short term”.
 Despite the slight contraction, the report notes that volume of mining work underway at present is “still astounding”, with WA and Queensland leading the way and accounting for 51% of the value of projects including in the Investment Monitor database.
NSW and Victoria account for a combined 17% of projects, while South Australia has slipped from 6% of all projects to just 3% of projects in the three months from the June to September quarter.
The biggest project in NSW is the $6 billion Barangaroo development in Sydney as well as plans for redevelopment of Centrepoint, Imperial Arcade and Skygarden centres on Pitt Street “set to be finalised very soon”
Victoria’s investment pipeline is modest, but it will get some of the resource pie with construction to 2016 of $4.4 billion Kipper-Tuna-Turrum Project located south east of Lakes Entrance in Bass Strait.
The other major projects are rail and road projects including the $5.3 billion regional rail link from West Werribee to Melbourne’s Southern Cross Station; the $980 million project to widen the Western Ring Road between the Hume Highway and the West Gate Freeway, as well as the $759 million ‘Peninsula Link’ - a 25km four lane connection between Eastlink at Carrum Downs to the Mornington Peninsula Freeway at Mount Martha.
For tips on investing in Gladstone, download Property Observer's free eBook: <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-gladstone-investment-keys-to-one-of-the-nations-most-talked-about-hotspots">Gladstone – Investment keys to one of the nation’s most talked-about hotspots</a>
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lschlesinger-FZcF9M3vE6

Mining-led construction boom to peak in 2014: Deloitte

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The Woollahra shop that has been tenanted by gourmet food retailer Jones the Grocer for the past 16 years is available for lease and expected to attract interest from other luxury goods purveyors.
The 300-square-metre shop is located at <a href="https://www.realcommercial.com.au/property-retail-nsw-woollahra-500502075" target="_blank">68 Moncur Street</a> just off <a href="/news">Woollahra</a>’s ultra-chic Queens Street, where retail tenants including Australian fashion designer Collette Dinnigan, who opened a shop on Queen Street in June last year.
The shop has become available for lease, with Jones the Grocer opening a new Sydney store in Westfield Sydney in the CBD in December.
The Woollahra premises was the first store opened by Jones the Grocer in 1996 and included Australia’s largest walk-in cheese room.
Anthony Bray, director of sales and investments NSW at Jones Lang LaSalle, who is marketing the retail space for lease, says the rent will be in the region of $1,000 per square metre net per annum.
Bray says the space is ideal for a luxury retail environment.
“With high glass windows on the shop front, considerable floor space and loading dock for ease of product flow, we envisage the property could be well utilised as a high-end retail space.
“A much-anticipated retail offering, we’re expecting high interest in the building – the place is locally well-known and is located in a bold corner position, prominent for pedestrian and motor traffic alike.”
Jones Lang LaSalle is accepting formal written proposals until November 22, 2012, on a lease term of five years plus renewal options.
The premises were last available for lease in 1996.
Jones the Grocer was founded by Lindsay Jones-Evans and has six stores in Australia as well stores in New Zealand, Qatar, Singapore and the UAE.
The entrepreneurial Jones-Evans is currently the director and co-owner at Old Shanghai Massage House, a traditional Chinese massage house on Oxford Street in Woollahra, just a short walk from the grocery store.
His other ventures include Bon Bon Fine Chocolate and the Victoria Room.
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Jones the Grocer premises in Woollahra up for lease at $1,000 per square metre

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The premises of the popular Monk Bodhi Dharma café in Balaclava has been listed for sale with price expectations of $550,000 to $590,000.
Located at the rear of<a target="_blank" href="https://www.realcommercial.com.au/property-retail-vic-st+kilda-500512003"> 202 Carlisle Street </a>and adjoining a Safeway supermarket, the 55-square-metre space comes with a secure lease to Monk Bodhi Dharma Café.
The six-year lease with multiple renewal options started on November 1, 2012, with the café paying rent of $39,000 per annum plus GST and outgoings.
The <a target="_blank" href="/news">Balaclava</a> café investment offers a significant rental yield possibility ranging from around 6.6% to 7% at current price expectations.
Monk Bodhi Dharma offers a range of vegan and vegetarian foods and is a popular spot for Melburnians, with breakfast and lunch options.
According to estate agent Kenny Oliver from Hocking Stuart, the commercial space has received a considerable amount of interest since being listed for sale.
Oliver, alongside colleague Charles Carty from Hocking Stuart Commercial South Melbourne, is marketing the property for sale, which will be auctioned on December 5 at 3pm.
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ntrotman-Et3xWpamVh

Balaclava café premises listed with 7% yield potential

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In October the rental market remained stable in Victoria in terms of the level of vacancies and rents charged.
The vacancy rate for Victoria was 1.9%, compared with 2% in September. In Melbourne the vacancy rate was also 1.9%, slightly lower than the 2% recorded in September. In regional Victoria it remained stable at 2%.
Within the metropolitan area inner Melbourne had the highest level of vacancies, with 2.6% recorded in those suburbs within four kilometres of the CBD. As you move further from the CBD the vacancy rate tightens, with 2% in the middle suburbs and 0.9% in the outer suburbs.
The median rent being asked in Melbourne was $370 per week for houses. This is lower than the $380 being asked in July and reflects an easing of conditions in the market.
In regional Victoria the tightest vacancy rate was found in Bendigo, where it was 0.7%, down from 0.9%. In Geelong the vacancy rate tightened from 3.5% to 2.8% and in Ballarat it eased from 1.3% to 1.5%.
Rents remained reasonably stable, with a weekly median rent of $300 per week for a house being recorded, compared with $295 in September.
For the first time the REIV is publishing a vacancy rate for the Mornington Peninsula. In October the vacancy rate was 1.6%, compared with 3.3% in September.
Enzo Raimondo is CEO of the <a rel="nofollow" target="_blank" href="https://www.reiv.com.au/">Real Estate Institute of Victoria</a>.
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enzoraimond-7fvRFHPR52

Victorian rental market stable in October

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With the other major index providers now releasing their September quarter data, we can start to see a firm pattern of recovery emerging in Australia’s housing markets.  The <a href="https://abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6416.0Main+Features1Sep%202012?OpenDocument" target="_blank">ABS released its stratified median series</a> on the 6th of November showing a 0.3% rise in capital city house values over the September quarter, following a 0.6% increase in prices over the June quarter.   Similarly, APM showed a flat September quarter (0%) after reporting a 0.4% rise over the June quarter.  Closer to home, the <a href="https://www.rpdata.com/press_releases/Page-1" target="_blank">RP Data-Rismark results</a> showed house values were actually down over the June quarter by -1.4% and up 2.2% over the September quarter.
The flow of data brings to mind how, a few months ago, there was some commotion from a particular housing market commentator who presented a strongly worded case that the RP Data-Rismark Indices were unreliable and inaccurate.   It turns out, that was much kerfuffle about nothing.
Being the earliest reporter on housing market conditions (the RP Data-Rismark series are published one day in arrears, unlike the ABS, which took 37 days to publish its September results), it is easy to become a target when reporting on a change in market conditions.
At the time, of course, we vigorously defended our methodologies, pointed to our online white papers, highlighted the due diligence and independent auditing of our data and infrastructure and the peer review of the index construction.   We went into detail about our rate of data collection and attribute coverage.  We even put out an<a target="_blank" href="https://www.propertyobserver.com.au/residential/rp-data-rismarks-defence-of-the-daily-hedonic-home-value-index/2012070555447"> update onhis website</a> addressing some of the misconceptions.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/11/lawlessnov9.jpg" rel="shadowbox"><img src="/images/stories/2012/11/lawlessnov9thumb.jpg"></a>
An extract of the assertions from one of the media articles is below (taken from <a target="_blank" href="https://www.brokernews.com.au/article/sqm-rp-data-inaccurate-and-unreliable-141384.aspx">Australian Broker online</a>).
 
<hr class="system-pagebreak">
 
Moving on, it's worthwhile re-visiting the differences between the RP Data-Rismark home value measures compared with the ABS.  We have had some questions on why companies would purchase a subscription to our indices when the free ABS index reports a similar result without cost.
The graph below shows the two measure move virtually in sync over time with some smaller differences over shorter time frames.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/11/rpnov121.jpg"><img src="/images/stories/2012/11/rpnov121thumb.jpg"></a>
Without going into a lot of detail on the differences in methodology (we have documented the benefits of a hedonic measure over a stratified median in the past on this blog), some of the key points to highlight are:
<ul>
<li>The RP Data-Rismark measure is much timelier, being published just one day in arrears.  For those who need timely data to factor into their decision making, strategies and market communications, no other index is this early to market.</li>
<li>The RP Data-Rismark measure is much more specific to housing types, reporting on the performance of houses, units and combined ‘dwellings’.  The different product types show quite different trends and performances.</li>
<li>Granularity – the RP Data-Rismark indices are available across smaller geographical boundaries.  We publish the headline results at the capital city and combined capitals level, however the index is also calculated across statistical divisions and statistical subdivisions nationally.  The methodology can also be applied to customised boundaries where required.</li>
<li>Length of time series – the RP Data-Rismark hedonic measure extends back to 1995 for most capital cities.  Other indices within the RP Data-Rismark suite of index products (we produce everything from simple median prices and stratified medians, through to repeat sales indices) show an even longer time series.</li>
<li>Measures by price point – The index can also be reported across broad price segments; the RP Data-Rismark stratified hedonic index measures value changes across the most expensive, most affordable and middle priced capital city suburbs.</li>
<li>Authority and credibility – the RP Data-Rismark index is without doubt the most heavily relied upon index throughout the Government, banking, finance and economic sectors.</li>
<li>Transparency – the RP Data-Rismark Index methodology has been independently audited, as has the data collection and infrastructure the index is runs upon.  White papers on the index construction are available <a href="https://www.rpdata.com/research/rp_data-rismark_home_value_index_methodology" target="_blank">here</a>.</li>
<li>Portfolio tracking – the index was designed specifically to track the risk and return profile of a diversified property portfolio and enable financial markets to use the index as benchmark for trading.  You can view the daily index movements at the <a href="https://www.asx.com.au/asx/markets/propertyIndices.do" target="_blank">Australian Securities Exchange</a> and also at the <a href="https://www.rpdata.com/research/daily_indices" target="_blank">RP Data web site</a> as well as on Bloomberg and Reuters services.</li>
</ul>
For a complete overview on the RP Data-Rismark Home Value Index, I can recommend you have a look at <a href="https://blog.rpdata.com/2012/07/the-rp-data-rismark-home-value-index-corrections-and-qa/" target="_blank">this blog we provided a few months ago</a>.
Tim Lawless is national research director of <a href="https://www.myrp.com.au/" target="_blank">RP Data.</a>
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tlawless-5VLUrbAk9s

Firm pattern of recovery in Australia's housing markets, just as RP Data-Rismark data showed: Tim Lawless

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Dixon Advisory will seek to raise up to $80 million from Australian investors to fund future acquisitions for its ASX-listed US Masters Residential Property Fund as it looks to take advantage of a recovering US housing market.
The fund has opened an offer to raise up to an additional $40 million, with the right to receive over-subscriptions for a further $40 million.
The minimum application amount is $2,000, with the offer closing on December 6 with an expected application price per share of around $1.57.
The fund's half-year results to June 30 showed it had cash reserves of $117 million after reporting a loss of $2.1 million.
The capital raising comes just a few days after managing director Alan Dixon estimated the repair bill for properties damaged by <a href="/news">Hurricane Sandy at US$430,000</a>, or 0.3% of the value of its net tangible assets.
The fund, which transferred to the ASX in July this year from the small-cap National Stock Exchange (NSX), is the first Australian property trust to invest directly in US residential property.
Since its IPO  in June last year the fund has secured a US$165.4 million portfolio of properties comprising 430 freestanding houses and 15 multi-dwelling apartment complexes through two joint ventures. The properties are located in the New York metropolitan area, particularly Hudson County, New Jersey, and Brooklyn and Harlem, New York.
Yields on free-standing sub-divided houses in Hudson County have ranged from <a href="https://www.propertyobserver.com.au/international/wide-ranging-residential-yields-in-dixon-advisorys-us-housing-fund-as-shares-debut-on-asx/2012072455700">around 5% to in excess of 12%.</a>
The fund’s previous capital raising was in January this year, when Dixon raised $1.27 million from 33 investors.
The January raising was third and final stage of a second round of capital raising, which raised total equity raised to $31.14 million from 929 investors, kicked off October  2011.
It raised almost $70 million from investors – mainly self-managed super find investors – ahead of its listing on the NSX at the end of June last year.
Alan Dixon says a combination of the US residential property market being “at an important turning point” and the strong Australian dollar convinced Dixon Advisory to launch the latest capital raising.
“Having recognised the opportunity presented by attractive property valuations, long-term returns, including long-term capital growth and attractive rental yields, and the strong Australian dollar, we are proud to have been an early mover in this market.
“And now with signs of a recovery in US housing prices, we’re in a leading position to take advantage of that recovery.
“When you hear reports that private equity giant Blackstone Group has spent more than US$1 billion this year alone on foreclosed homes, and there is also big demand from other big private equity firms, it’s confirmation that we’re presenting an exciting opportunity for Australian investors and that there’s plenty of scope to develop the Fund," says Dixon.
The fund intends to pay shareholders a $0.10 per unit minimum distribution for both calendar years ending December 31, 2012 and 2013.
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Dixon Advisory seeks up to $80 million from Australian investors for US fund

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Tropical storm Sandy has inflicted limited damage to the Hudson County and Brooklyn investment property portfolio of the ASX-listed US Masters Residential Property Fund.
Inspections carried out since the storm have found that only 21 out of the 277 freestanding family homes that comprise the majority of the fund’s portfolio sustained some form of water damage, with the repair bill estimated at US$430,000 before allowing for any insurance claim or US government relief typically provided when a major disaster is declared.
Alan Dixon, managing director of the Dixon Advisory-managed fund, says the impact of the repair bill will be half a US cent per share (US$0.005) or 0.3% of the fund’s net tangible assets.
The total portfolio is worth US$67 million (249 settled properties), with conditional acceptances on another 151 properties worth $US46 million.
Dixon alerted investors that the portfolio had suffered some damage as a result of the storm last week, but said he expected to have “no material impact” on the value of the portfolio.
The fund’s share price is currently trading at $1.56, slightly up from $1.55 a week ago.
Dixon says nine of the properties sustained “more extensive water damage with repair bills expected to be in excess of US$10,000 per property”.
Four of the properties are located in downtown Jersey City where the total expected repair bill is expected to be in excess of US$110,000 – the cost of repairing heater and water units and other aspects of the buildings.
Five are located in Bayonne – a relatively new investment location for the fund – which also suffered contamination from a nearby oil refinery spill in addition to “widespread water damage”.
“The fund expects that the cost of the oil clean-up and remediation will be entirely borne by the refinery and/or the federal government.
“These properties will likely require re-construction and the total estimated cost is approximately US$160,000," says Dixon.
The remaining 12 properties that sustained less extensive water damage are located in Hoboken, Jersey City and West Bergen, with a total estimated bill of US$70,000.
Other properties suffered minor wind-damage of around $90,000 in total with no single property exceeding US$10,000.
The ASX-listed fund bills itself as the first Australian fund to invest directly in US residential real estate, with many of the investors being self-managed super funds.
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Hurricane Sandy repair bill at US$430,000 for Dixon Advisory's US Masters fund 

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RP Data’s Rent vs Buy report flew into my email box this week, and already bold claims are being made across the internet and in print media that it’s currently cheaper to buy in 388 suburbs for those servicing a principal plus interest home loan using a variable rate.
Hurray! I hear you all cry – with the joyous voices marginally overpowered by the stampede of renters’ feet as they rush into their local real estate agency, chequebook in hand.
RP Data claims to be “Australia’s leading property data and analytics company”, and for the most part, I enjoy their market insights, updates, and media releases – all of which provide a valuable service for those of us not privy to direct data collecting software.
However, once in a while, I dearly wish RP Data would spend a little time thinking about the headlines it is creating before jumping in with the bold claims made on this report.
Median values – while a good barometer of the price point the predominant buyer demographic in any one suburb is purchasing – should always be used with caution when assessing if an area is “affordable”. The median price is only the middle number of all properties sold within a single period and therefore not helpful when it comes to assessing individual property prices.
RP Data stratifies its median prices between units and houses – and when producing detailed reports, usually breaks this data down listing other relevant information such as the number of bedrooms and so forth.
However, for the purpose of this report, the median values are simply divided between the two major property types – unit and house – therefore median “unit” value could mean a one-bedroom apartment or semi-detached three-bedroom townhouse. There is no distinction.
In its last report, <a href="/news">RP Data pinpointed 238 suburbs or towns</a> where “the mortgage repayment is lower than the median rent, based on a principal and interest loan on a variable mortgage rate”. Obviously the list expands two-fold when assessing interest-only loans, and there are hefty disclaimers explaining how the research is pinned together. In the latest report, due to lower rates and flattening prices, more suburbs fall into the bracket they use for assessment.
The resulting calculations are derived from the “median” unit price (or house price depending on suburb) and median “weekly advertised rental price”, with the “buyer” purchasing on a 90% loan-to-value ratio at an initial 5.9% variable 30-year loan. (Other examples are calculated on terms of interest only; however the above example is most applicable to the classic first-home buyer profile). The results, however, assume a great deal – to take median values and use them as a barometer of affordability against a median rental price has significant flaws. For example, in Victoria’s list, you will find the popular suburb of Abbotsford – located a hop and a skip from Melbourne’s CBD.
Abbotsford is a favoured area for home buyers looking north of the city, so it may surprise readers that the median value is listed as $360,868. There is currently only a small handful of properties listed for sale online in <a href="/news">Abbotsford</a> that you could comfortably purchase for the RP Data median value (or less) of $360,868. One of the listings is a small one-bedroom flat (roughly 40 square metres) situated on a main road.
There is nothing wrong with the unit – it would suit a first-home buyer – however probably not on a 90% LVR variable home loan (the formula used by RP Data.) Due to its internal size the lender of choice would probably require a larger deposit – however, we’ll put this to one side and assume otherwise.
The median rent in Abbotsford according to RP Data’s Rent vs Buy report is $475 per week – yet in reality, this is the price you’d expect to pay for a small house in “original condition” – not a one-bedroom apartment!
If you’re a renter currently paying $475 per week for a one-bedroom flat, of course it’s cheaper to buy! Yet for the one-bedder that I used as an example, the rent would be roughly $270 per week – cheaper to buy? Not on your Nelly is it cheaper to buy – in fact it’s far cheaper to rent in Abbotsford than it is to buy.
 
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Let’s take another example –<a href="/news">Docklands </a>– Melbourne’s favourite underperforming high-rise metropolis. The median value is listed as $493,185 – the price will buy a standard two-bedroom apartment most likely servicing high owner’s corporation fees due to the high-density construction.
Furthermore, borrowing for high-rise accommodation would likely present problems for a first-home buyer who may encounter lending restrictions for this type of accommodation – especially if borrowing on a 90% LVR. However, once again for the sake of the analysis on this report, we’ll put this to one side.
The median weekly rent is listed as $963 per week – if any renter is paying over $900 per week for a two-bedroom apartment in Docklands I’d suggest they seek help. For roughly $900 per week, it’s possible to rent a fully furnished three-bedroom penthouse with views of the city and beyond! Is it cheaper to rent than buy? No! It’s not!
It may be advantageous for some in the industry to spread the rumours spruiked in the report and encourage buyers to make the move and go see a mortgage broker. Hopefully even those who don’t follow the market closely will be a tad more educated when assessing the analysis.
Rental prices in Australia have risen over 49% over the past five years, and the number of renters is up from 27.2% to 28.7%. Along with this outright ownership is down from 32.6% to 31% and of those figures, 34.5% of 30- to 39-year-olds now live in rented accommodation and clearly struggle to save a deposit while servicing rising rental costs.
Families with children in particular are suffering, recording a decrease in their ownership rates from 79.5% to 77.2%. If it were cheaper to buy than rent, these figures from the ABS census data would be – at best – questionable.
Although Australia may still possess a good proportion of owner-occupiers to renters – enabling some in the industry to close their eyes to distress calls coming from the increasing numbers locked out altogether – both state and federal governments would be foolhardy to ignore the downward trend in ownership and the reducing pool of first-home buyers. Meanwhile, any myth that it’s cheaper to buy rather than rent in some of our most desirable inner-city locations needs to be taken with a degree of mistrust until data can be analysed at a deeper level.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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Is buying really cheaper than renting? Not so fast

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Previous cash rate cuts are starting to work their way through the economy and having "some of the expected effect" including stimulating a tentative recovery in the residential building sector, says the RBA in its November statement on Monetary Policy.
The RBA makes the point that “interest rates for borrowers are clearly below their medium-term averages" with the suggestion that global factors and commodity prices will play a key role in future cash rate decisions.
It goes on to say that while the impact of these lower rates take “some time to work through the economy, there are signs that easier conditions have been having some of the expected effects, and further effects can be expected over time”.
“At the November meeting, with the more recent positive news on the international economy and with inflation a little higher than expected, though still likely to be consistent with target over the year ahead, the Board judged that the stance of monetary policy remained appropriate, for the time being.”
The lengthy statement revealed that the sharp fall in spot prices of bulk commodities, which led to a change in the spending plans of firms in the resource sector and indicated that the peak in investment in the resource sector is likely to occur a “bit earlier and at a lower level than had previously been expected” was key reason (along with a weaker outlook for growth) for cutting the cash rate in October.
A month on and the RBA notes a number of positive developments relating to the housing sector.
“While household dwelling investment continued to decline over the first half of the year, there have been signs in recent months of a prospective improvement, partly in response to reductions in interest rates.
“Private residential building approvals, dwelling prices and auction clearance rates have all increased.
The RBA says approvals for detached houses have increased by less than total building approvals, but says "typically it can take several quarters for falls in interest rates to spur recovery in this market".
"In addition, uncertainties in Western Australia associated with the introduction of a new building approvals process are yet to be fully resolved."
Households deleveraging is also seen as a positive with the RBA noting that while “overall demand for housing finance has been broadly stable over the course of the year and many home owners are taking advantage of lower borrowing rates to pay off their loans more quickly”.
The impact of lower interest rates is recurring theme in the statement:
“Lower interest rates, rising rental yields and an improvement in conditions in the established housing market are expected to support rising dwelling investment.”
However, the RBA also notes the challenges facing the weaker parts of the two-speed economy.
“On the domestic front, the outlook for growth is sensitive to prospects for mining investment and the timing and extent of the anticipated recovery in both dwelling and business investment outside of the resource sector.
It says that investment intentions outside of the mining industry remain relatively subdued.
“The elevated level of the exchange rate, and weak housing market activity, are still weighing on the outlook for some sectors. In particular, the construction industry has shed labour as the boost from spending on government-funded projects unwinds, and activity in private building construction remains weak
“Leading indicators do, however, provide tentative signs of a recovery in residential building.”
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Lower rates working their way through the economy as RBA notes improving housing market outlook 

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Aussie Home Loans boss John Symond is urging first-home buyers to consider buying with friends or family, rather than miss out on a good opportunity.
In a blog post, Symond says co-ownership allows buyers to get a foot on the property ladder by combining their borrowing power and splitting the cost of buying property.
Symond says timing is everything when it comes to making a purchase and believes it can be a better idea to buy with someone else than to not buy at all.
“If you see an opportunity where prices have come off, it may be a good idea to buy with a friend or relative if you can’t afford to buy yourself,” he says.
“But you really do need professional advice to do this.”
Symond points out that buying under a co-ownership agreement means you can split all the fees that come with buying a home including stamp duty, legal costs and inspections.
And, he says, there is a good chance you’ll be able to reduce the length of the mortgage and own your half of the property faster.
Symond says improved housing affordability, stable property prices and low interest rates have made shared property purchases more uncommon in recent times, there are still plenty of people who are opting to co-own.
Symond highlights the many things to consider if you are serious about co-ownership.
“Get advice with structuring the purchase. What happens if your friend or relative changes their mind somewhere down the line? What happens if one of you wants to keep the property and one wants to sell? Or if one wants to rent and the other wants to move in?
“There are a lot of scenarios to consider and you really do need to tick all the boxes.”
PodProperty, which specialises in shared buying of property, recommends that buyers enter into a legally- binding co-ownership agreement.
This is a contract between parties who own property together as "tenants in common".
“It can cover many different types of relationships, including groups of friends, family members, defacto partners (either heterosexual or same-sex) or any combination of these types of relationships,” says PodProperty.
PodProperty charges $350 to write a co-ownership agreement and also offers a free guide to co-ownership on its website.
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