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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Well, that was quick, wasn't it? Almost before it got started, the real estate recovery is over. Dead. Finito. No more recovery.
It echoes the mining boom. That's finished, too. The $300 million in resources developments under way are a figment of someone's imagination.
Just as the rise in lending for home purchases, with first-home buyer loans up 18% on last year, must be a mirage. The significant rises in residential rents in multiple locations I read about must have been a misprint. The improvement in clearance rates was clearly a dream and the gradual improvement in city prices from other sources a fabrication.
None of that counts because one month's figures from one careless research source found a small decline. On that flimsy basis, media organisations around the nation declared the market recovery over. Not a hiccup or a blip, but dead and buried.
AAP declared that the market had dropped because the impact of interest rate cuts had ended. This was roughly four weeks after the October reduction by the Reserve Bank and two to three weeks after the response of most lenders. I'm sure RBA board members would fascinated to learn that the impact of its rates decisions lasts only a matter of days.
There were many similar stories. The journalists who wrote those articles and keyed in those headlines should be ashamed, but I'm sure they're not. It would require a concern for accuracy, fairness and balance – a basic sense of professional decency – to have any remorse over a presentation of news that made a mockery of analysis and added to the great overwhelming pile of misinformation that's afflicting real estate consumers.
Why happens if the next month's figures come out and show a small rise in property prices? What stunningly inappropriate headlines will accompany that news? "Market in miracle rebound"? "Skyrocketing prices defy downturn."? "Economists warn of price bubble"? "US analyst predicts price crash"? "Sub-editor's brain explodes trying to dream up new superlative"?
Anyone who's been around real estate longer than five minutes knows sales data is never smooth or consistent. It's common to access data from four different sources about one location and get four conflicting answers.
One month's data from one source is meaningless.
To place such a categorical conclusion on a single month's figures from just one source - particularly a source that's so desperate to get into print that it's become careless – is irresponsible.
It's the reason newspapers are dying a long, slow, agonising death. Low standards, inexpert writers, cheap sensationalism.
Sadly, some of the new forms of media present as little better.
What's really happening in capital city markets? Nothing much has changed – there is a gradual, almost grudging, recovery underway in most cities, an event supported by most of the data coming in from multiple sources.
The markets in Perth and Darwin are rising strongly and investors thinking of buying need to get busy. Sydney and Brisbane are also trending in the right direction. Adelaide, Canberra and Melbourne are still patchy, with conflicting data from various research sources.
Outside the big cities many regional centres have had strong markets for some time, headed by <a target="_parent" href="/news">Gladstone</a>, <a target="_blank" href="/news">Mackay </a>and <a target="_blank" href="/news">Emerald</a> in Queensland.
The general trend is a return to growth, though moderate in most cases, notwithstanding one dodgy set of figures.
Terry Ryder is the founder of <a target="_blank" rel="nofollow" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> and can be <a target="_blank" rel="nofollow" href="https://www.twitter.com/hotspotting">followed on Twitter</a>.
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terryryder-YECXbqmri2

A blip, not dead and buried: Irresponsible media fails to see property market recovery still underway: Terry Ryder

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Sydney estate agent John McGrath has joined Aussie Home Loans boss John Symond by describing the RBA Melbourne Cup Day rate decision as “disappointing”, arguing the housing recovery has been limited to the more affordable end of the market.
“I think the RBA is over-estimating the depth of the market,” says McGrath, CEO of McGrath Estate Agents.
“The real recovery has been limited to the first-home buyer markets.
“Above $1 million there is no real depth.”
McGrath says a further two rate reductions in the short term would allow the market to gain some momentum “which in turn will provide activity and confidence in not only the housing market, but all associated sectors.
“I hope that they reduce rates pre-Christmas and again in early 2013 to give borrowers the incentive they need to transact,” he says.
In his spring 2012 market update,  John McGrath says falling interest rates and prices have attracted first-home buyers into the market helped by the introduction of the new first-home owner grant.
“Rising rents have incentivised many tenants to shift into home ownership,” he says.
Looking ahead, McGrath says he believes that “real estate markets in most parts of Australia, certainly Sydney, are past the worst and heading for some blue skies in 2013”.
“That’s not to say I expect either a straight line growth recovery or an instant uplift in prices. Neither of these outcomes is likely.”
McGrath believes that a key catalyst for an upper-end housing market recovery will be the share market.
“Interest rates, rents and unemployment are not really influencing factors for the top end. Many luxury owners are still awaiting some clearer resolution on the macro economy and the euro zone before jumping back into the market,” he says.
Yesterday, Aussie Home Loans boss John Symond slammed the RBA's decision to hold the cash rate at 3.25% accusing the RBA of not being in sync with what is happening in the real economy and of making <a href="https://www.propertyobserver.com.au/news/property-market-unlikely-to-feel-too-much-pain-from-rba-rate-decision/2012110657644">“pretty odd decisions”.</a>
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lschlesinger-FZcF9M3vE6

RBA decision disappoints as property recovery limited to first-home buyer market: John McGrath

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Mining tycoon Clive Palmer has confirmed his purchase of the Sea Temple Golf and Country Club at Port Douglas for about $7 million.
He told The Cairns Post he made the "unconditional" deal last Friday after making an aerial inspection by helicopter on Thursday of 20 properties between Townsville and Cairns.
<img src="/images/stories/2012/11/seatemple1.jpg">
It is his first investment in the far north, having missed out last year on buying the Sheraton Mirage at Port Douglas, which was sold to developer David Marriner with the support of a Chinese group.
Sea Temple golf was sold by the Juniper Group, having been on the market for a year.
The deal includes the award-winning 18-hole golf course designed by Thomson, Wolveridge and Perrett, along with a housing estate development with about 45 premium home sites.
He said he had no immediate plans for the golf course and the surrounding residential land.
"I haven't decided but I am happy for it to continue as a golf course."
<img src="/images/stories/2012/11/seatemple2.jpg">
Palmer says he personally bought the course, not his company, which owns three other courses on the<a target="_blank" href="https://www.propertyobserver.com.au/queensland/clive-palmer-becoming-the-prince-of-paradise-point-with-cheap-royal-acquisitions/2012061555136"> Sunshine and Gold coasts</a>, including the Hyatt Regency at Coolum. He also bought the Robina Woods and the Colonial golf courses at Robina on the Gold Coast for about $7 million last year.
CBRE Hotels Queensland director Wayne Bunz says the Sea Temple contract was unconditional with settlement in 30 days.
"He's paid substantially below replacement value," Bunz says.
Bunz says golf courses usually cost $1 million a hole plus the cost of land.
The tourism pioneer John Morris, who developed the course in the late 1990s, told the Post he was "delighted" that Palmer was the new owner.
It is understood others interested in the golf course included Sheraton Mirage owner David Marriner.
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jchancellor-FAypfDUnLy

Mining tycoon Clive Palmer confirms Sea Temple, Port Douglas golf course resort purchase 

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Perth prime office rents have grown at more than three times the national average over the year to September, according to the latest CBRE national office market report.
Spurred on by better economic growth and resources-led demand for office space, Perth net face rents have risen 12.9% between September 2011 and September  2012 compared with 3.4% increases in Melbourne rents and 3.2% increases in Sydney rents over the same time frame.
The national average growth rate for major capital city office rents over this period was 3.9%.
In a previous update, CBRE said mining giant BHP Billiton accounted for around 43% of the total net office space (115,000 square metres) leased over the first six months of 2012 with the premium Perth office vacancy rate currently well under 2%.
Net face rents in other major CBD office markets – Brisbane, Adelaide and Canberra – have been flat over the 12 months to September.
Net face rents refer to the quoted rental rate (exclusive of any negotiated or offered discounts) and exclude building outgoing costs.
Looking ahead over the current financial year to June 2013, Perth is again expected to be the top performer with projected net face rental growth of 8% with Sydney (3%) and Adelaide (2.7%) performing better than Melbourne (1.5%).
<img height="154" width="429" src="/images/stories/2012/11/office_rents.gif" alt="office_rents"> Source: CBRE
Nationally, CBRE is forecasting rental growth to soften over the course of the 2013 financial year while CBD office capital values are expected to hold firm due to the uncertain economic outlook.
CBRE’s Australian head of research, Stephen McNabb, says there are both cyclical and structural factors that are resulting in subdued tenant demand relative to historic averages.
Cyclical factors include the two-speed economy, which has headline GDP growing at a 3.7% but according to McNabb “largely reflects significant growth in engineering investment activity supporting the mining industry”
“The broader economy has been growing at well below trend rates and forward indicators such as job vacancies, below average consumer and business confidence, and sluggish credit growth suggest that the economy will continue at a similar pace in the next 12 months.”
Structural factors include an increasing shift towards activity based working (work teams that don't have allocated work stations) which is reducing employee floor space ratios.
CBRE regional director of office services, James Patterson, says Perth remains the standout in relation to prospects for future rental growth, given the strength of the local economy and continued resources sector investment.
“Sydney is more heavily aligned to finance and insurance tenants who have been experiencing pressure on revenues and are aggressively managing expense growth and employee head countsPatterson said.
“The Victorian economy has also been slowing and employment growth is easing after a period of strong growth, which had been spurring demand for office space in Melbourne,” he says.
CBRE also highlights a shift in the growth prospects for the other resource-driven capitals of Adelaide and Brisbane.
“The Brisbane market has also been subdued, given weaker economic growth of late as a result of resource sector uncertainty and space consolidation by the State Government, although the expectation is that growth will gather momentum going forward,” says Patterson.
“Falling commodity prices have also impacted on markets such as Adelaide, as highlighted by the shelving of BHP’s Olympic Dam expansion, which would have provided a significant boost to the South Australian market.”
 
 
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Perth CBD office rents growing at three times national average

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The Australian arm of global healthcare provider B Braun has leased the entire 2,709 sqm top floor of Vantage, a five storey office development in the Norwest Business Park in the outer north west Sydney suburb of Bella Vista.
The new lease takes the occupancy rate in Vantage to 50%.
B Braun Australia will pay $339 per square metre net per annum plus GST and is inclusive of 108 car parking spaces.
The deal was negotiated by Peter Beaumont of Norwest Commercial &amp; Industrial Real Estate, in conjunction with Colliers International and Balmoral Partners.
Other large-scale tenants in the building are Caroma Bathrooms and Kitchens, and concrete products company Holcim (Australia).
The five storey office building at 7-9 Irvine Place with a five-star NABERS energy rating, comprises 12,278 square metres of net lettable office space and has one of Sydney’s largest floor plates.
It was developed by commercial property developer Presida and completed in January 2011 and its stand out feature is a 110-metre long, 8-metre high mural in a ‘geometric abstraction’ style, which forms its base facing Old Windsor Road.
Presida has two other developments in the business park - Sky City (30,000 square metre over five storeys) and T1( 25,000 square metres over twin four storey office towers) .
 B Braun Australia will join a number of blue chip tenants in the office park including Woolworths, which has its head office at 1 Woolworths Way along with Actron Air, Resmed, AAMI, Westpac, Capital Finance and Bankwest.
Globally, B Braun employs around 44,000 employees in more than 50 countries with annual turnover of $5.6 billion.
 
B Braun Australia has signed a five year lease renewal options with deal including major signage to Old Windsor Road where an estimated 40,000 vehicles pass every working day.
The company is expected to occupy the premises from late November.
Construction of a new train line linking the office park to Chatswood as part of the North West rail link is due to begin in 2014 and be completed by around 2020.
First-stage approval for the project was granted in October by the NSW state government.
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Healthcare giant B Braun signs whole-floor lease in Bella Vista office park 

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A Double Bay mansion sold at auction for $3.1 million in the nation's top sale for the week, but the sale price reflected a 22% price decline on its peak prior price.
Its latest price reflected a 4% loss annually since it sold in boomtime 2007, and an 8% annual deterioration over the past 20 months.
The Court Road property was sold by Shelley Griffin, the wife of the late Allco executive Phil Griffin, who is moving to Woollahra where she recently purchased a heavily discounted $5 million Gothic mansion.
The two-storey Double Bay home sits on 429 square metre block with a 7-metre lap pool. It last sold at $3.62 million in 2011 and at $4 million in 2007.
The agents were quoting $3 million plus with five bidders having registered on auction day. Three bidders took part in the auction after bidding opened at $2.8 million.
The sale was conducted by McGrath agents Peter Starr and Bernadette Berlyn in conjunction with Sotheby's International Realty.
Given the absence of prestige auction listings in Melbourne due to the cup racing carnival, every property in the top 10 this week was in Sydney. 
 
1.<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/7_court_road_double_bay_nsw_2028/2116989"> 7 COURT Road, Double Bay, NSW, 2028</a>, four-bedroom house, sold at auction on November 3 by McGrath Estate Agents for $3.1 million
2. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/7_delmar_parade_gladesville_nsw_2111/2398997">7 DELMAR Parade, Gladesville, NSW, 2111</a>, three-bedroom house, sold at auction on November 3 by Ray White Gladesville for $2.93 million
3. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/3_mitchell_street_greenwich_nsw_2065/2634623">3 MITCHELL Street, Greenwich, NSW, 2065</a>, four-bedroom house, sold at auction on November 3 by Century 21 Blunts for $2.675 million
4. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/21_woonona_road_northbridge_nsw_2063/5073350">21 WOONONA Road, Northbridge, NSW, 2063</a>, five-bedroom house, sold prior to auction on November 3 by McGrath Estate Agents for $2.45 million
5. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/45_greville_street_clovelly_nsw_2031/1863433">45 GREVILLE Street, Clovelly, NSW, 2031</a>, three-bedroom house, sold on October 30 by Goodyer Donnelley Real Estate Woollahra for $2.3 million
6. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/154_arden_street_coogee_nsw_2034/1925687">154 ARDEN Street, Coogee, NSW, 2034</a>, four-bedroom house, sold at auction on November 3 by McGrath Estate Agents for $2.2 million
7. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/16_brighton_street_freshwater_nsw_2096/2363567">16 BRIGHTON Street, Freshwater, NSW, 2096</a>, three-bedroom house, sold at auction on November 3 by McGrath Estate Agents for $2.13 million
8. 96 CRESCENT Road, Newport, NSW, 2106, four-bedroom house, sold on October 30 by McGrath Estate Agents for $1.79 million
9. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/2_carlisle_street_tamarama_nsw_2026/6665335">2 CARLISLE Street, Tamarama, NSW, 2026</a>, four-bedroom house, sold at auction on November 3 by McGrath Estate Agents for $1.76 million
10. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/175_military_road_dover_heights_nsw_2030/2121176">175 MILITARY Road, Dover Heights, NSW, 2030</a>, four-bedroom house, sold at auction on November 3 by McGrath Estate Agents for $1.752 million
 
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Clean sweep for NSW in RP Data top 10 sales as Double Bay sale reflects 22% price decline

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The performance of Australia’s listed property trusts sector (A-REITs) has stacked up well against global peers though domestic investors remain cautious, according to a new global report from Ernst &amp; Young.
The report examined the global returns, performance and outlook of the six major REIT jurisdictions namely Australia, US, UK, Singapore, Japan and France.
Singapore came out on top, with its US$30 billion sector delivering investors a 21.8% average return, ahead of Japan (17.4%), with Australia ranking third alongside the substantially bigger US market, with an average return of 15.6%.
The UK REIT market ranked fifth with a return of 14.8%, and France came last with a return of 11.85%.
<img src="/images/stories/2012/10/eynov7.gif">
The report delivers an overall favourable impression of the A-REIT market and says most Australian listed property trusts are now in a stronger financial position; “however, memories of their steep losses during the global recession and financial crisis still linger”.
“A-REIT management teams are focused on strategies to enhance returns following a two-year period of strengthening balance sheets by restructuring debt and selling assets, especially assets held offshore,” says Ernst &amp; Young Asia Pacific real estate leader Chris Lawton.
“Most Australian REITs are in a stronger financial position today but memories of their losses during the financial crisis still linger and some investors are putting money into unlisted property funds and direct investment that otherwise might have been invested in Australian REITs.
“Most REITs are focused on the Australian market and have gone back to basics by concentrating on clearly defined sectors of the market that complement their core competencies and generate reliable income streams, mainly from rentals,” Lawton says.
The report finds that A-REITs have yet to “win back the full trust of the investor community” and many of their shares continue to trade at discounts to net asset value (NAV) although recent months have seen that price gap continue to close.
“Some investors are putting money into unlisted property funds and direct investment that otherwise might have been invested in A-REITs.”
“Some offshore commentators believe that Australia’s property values are high relative to other global property markets and therefore contribute to the NAV gap.
“But perhaps the primary reason is that investor confidence in A-REITs has been slow to return, and A-REIT share prices slow to recover, after some A-REITs moved beyond the traditional passive income model to take on higher-risk investments, mainly in overseas properties.
“As long as A-REITs’ shares continue to trade at discounts to NAV, any property acquisitions they make will likely dilute their earnings.
According to Ernst &amp; Young, the best-performing REITs globally are “better capitalised, have more financing options, own better-quality assets and have less risk exposure".
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A-REITs match global competitors on annual returns as investor confidence in the sector improves: Ernst & Young

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Capital city house price growth slowed in the September quarter to 0.3%, led by a 1.8% rise in Perth's house price index to a median of $489,000, according to preliminary figures from the ABS.
If past revision history is anything to go by, Perth house prices are likely to be revised upwards in the December quarterly update, which is released in February.
The ABS revised its Perth June quarter result upwards from 0.6% to 1.2%, with Perth house prices now up 4.4% for the year to September.
<img src="/images/stories/2012/10/absnov6.gif">
The preliminary estimate for Perth follows rises in the previous three quarters (+0.5%, +0.9% and +1.2%), with the rise in the September quarter 2012 “driven by clusters with median prices below $700,000”.
Recently released RP Data-Rismark figures (which are not revised) show Perth house prices up 0.9% for the October quarter and up 3.8% year-on-year to a median of $475,000.
The ABS 0.3% rise for to the weighted average of the eight capital cities follows the previously reported June quarter increase of 0.5% being revised upwards to 0.6%.
As a consequence, the through-the-year movement has been revised from an estimated fall of 2.1% to an estimated fall of 1.9%.
Sydney also recorded an increase of 0.3% to $605,000, following falls in the previous two quarters.
Sydney house prices are 1.3% for the first nine months of the year, with the ABS noting that the small September quarter gain was driven by “clusters with median prices at the top and bottom of the range of prices.
“These rises were offset by falls in clusters with median prices between $650,000 and $1 million."
Melbourne’s house price index rose 0.2% to $468,000, the first rise in six quarters, to leave house prices down 2.3% for the year to September.
Brisbane house prices gained 0.4% to $434,000, while Hobart was up 0.2% to $348,000.
These rises was partially offset by falls in Adelaide (-0.6% to $384,000), Canberra (-1.1% to $535,000) and Darwin (-0.5% to $547,000).
The ABS also made revisions to capital city data for both June (first revision) and March (second and final revision) quarters
In June: Sydney (+1.5%, revised from +1.4%), Perth (+1.2%, revised from +0.6%), Adelaide (+0.4%, revised from +0.5%) and Darwin (+2.5%, revised from +5.1%). This was partially offset by falls in Melbourne (-0.2%, revised from -0.4%), Canberra (-1.2%, revised from -1.3%), Brisbane (-0.2%, revised from +0.1%) and Hobart (-1.0%, revised from -0.4%). Final price indexes for the March quarter 2012 show no movement following a revision from a second preliminary estimated fall of 0.1%.
The movement through the year to the March quarter 2012 was revised from a fall of 3.5% to a fall of 3.4%.
In March the following second revisions were made: Perth (+0.9%, revised from +0.7%), Canberra (+0.7%, revised from +0.3%), Melbourne (-1.1%, revised from -1.3%), Adelaide (-0.9%, revised from -1.2%), Hobart (-2.9%, revised from -2.0%).
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Perth the standout as house price growth slows in September quarter: ABS

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Rental yield in the property industry is a very important thing. It can mean the difference between having a successful, thriving portfolio and holding property that is as fragile as a house of cards. The Oxford English Dictionary defines "yield" in many different ways. The direct (and most obviously relevant) to property investing, is this one:
Yield: noun; the income produced by a financial investment, usually shown as a percentage of cost.
Yield can also be defined as a submission to a greater influence:
Verb; the income to surrender or submit, as to superior power
A very different use for the word, but still appropriate in the property industry, in that, sometimes you must surrender to market conditions and reassess other ways to stay afloat during the harder times.
Yield is effectively the percentage return you get, month in, month out, when holding investment property. It is the day-to-day revenue coming in after your running expenses (mortgage, managing agency fees, repairs and maintenance, etc), are deducted. It should not be confused with capital growth. This is defined as the difference in market value of an asset from the time of acquiring it, to the time of selling it on. So in a utopian world, any investment property or portfolio of properties would achieve both; supply the owner a stream of revenue whilst holding it (yield); and then providing a lump sum of revenue in the form of return when selling it on later in life (capital growth).
The reality is this isn’t always readily achievable. Market conditions, along with a barrage of complex variables in the marketplace at any given time, can upset or confuse the degrees of yield and/or capital growth that a property can deliver. As many of you are well aware, we are facing particularly challenging times in Australia in the last couple of years, during which capital values in some markets have remained flat.
This has happened before and will happen again. Property goes through cycles, and this occurs on both micro and macro levels. This means there is a general nationwide cycle, full of peaks and troughs, grouped and classified by averaging out the record-ble figures on a national scale. But then there are micro cycles, in which specific states, cities and even individual suburbs can also go through their own peaks and toughs.
The variance of say, one particular suburb can produce seemingly contradictory and mixed messages about what stage of a cycle a market may actually be in. On average, a full property cycle, from upswing (increasing values) to peak (values at the highest possible range) to downswing (values cooling) to stagnant (values bottomed out) typically lasts around seven to 10 years.
<img src="/images/stories/2012/10/clock-generic.jpg">
 
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This is where having higher yield can help to see investors through the “rough patches” of the leaner phases of any property cycle. Yes, in November 2012 we are facing some new macroeconomic challenges – a slowing local (and global) economy, a softening of international demand in the resources sector, banks going belly-up – but even under these conditions, there is always opportunity for those of us in property to better weather these storms and come out on the other side less damaged as a result.
 
In fact, unlike historical slow property cyclical phases, where interest rates were comparatively higher and demand for rental property (in most markets) was not as strong as it is today, I’d argue that this “rough patch” might not be so bad for savvy investors.
Interest rates are very low, which already reduces holding costs greatly. Also, demand for rental property in most markets remains strong, and this is unlikely to change any time soon. I say this after observing the slowing of construction project application approvals in several states and territories and the less-than-great state of the construction market in general (residential property and non-residential alike). Demand is unlikely to weaken for residential rental accommodation in most markets any time soon. In short; they cannot build them fast enough. Additionally, a significant portion of the property that is being built or planned to be built in the next five years is not being built in the high-demand areas where it is needed most.
So, providing you are holding well-located property in relatively high-demand areas, this can only be a good thing for demand – and thus the top dollar that your tenants are willing to pay – for your property. So when capital growth is in a paused, slow, or even negative-growth stage, within a property cycle creating better cashflow, or yield, will help see us through the tougher times.
So, here is a list of ways you can look to improve cashflow and thus increase your yield in your investment properties. Most of them appear quite logical – there are no secret recipe tips here – but I am constantly surprised to speak with other investors who have not considered some of these to improve their yield.
1. I’ll place this one first because it is the most obvious and easiest; but it must be said: Shop around for a better mortgage deal. Interest rates are at their lowest since 2008, and while there is evidence the RBA may add a further rate cut or two, now is a good time to find a better deal, or at least consider fixing say 50% of your loan(s) for the next few years.
2.       Shop around for a more cost-efficient property manager, but make sure the level of service remains the same. With more investors experiencing a challenging market together, property managers effectively must work harder and better for their management fees. So if you are not happy with your current agent or feel their fee structure does not reflect the level of service they can offer, look to seek out a better deal.
3.       If appropriate, consider an increase to your tenant’s rent rate. A common occurrence when markets experience stagnation in values, yet demand for residential property is high is that rental return increases. A good investor will at least annually assess a tenants’ rent rate, so whether this is upcoming, overdue, or has already been raised to market-appropriate level, now is a good time to check in on rates and plan for the next 12 months.
4.       Depending on cashflow available and the nature of your property (if it’s a detached house on a large enough block) now may be the time to do up a cost-analysis spreadsheet to consider adding a granny flat. I am by no means suggesting that granny flat additions will be relevant for many, but for a few, taking advantage of aforementioned cheap finance and easier-than-ever council approvals may make a granny flat addition add to your gross yield significantly. Now may indeed be the best time to finance one.
5.       Another less extreme way to add some more value but improve rental return is to do a cost-analysis for any improvements to the property. If your property is new or has been recently renovated, then this one is probably not relevant to you, but if your property is older and there is scope for mild renovation at a low cost (“cosmetic” renovation such as changing the wall paint, tiles, or adding built-in wardrobes, etc.) then now is a good time to assess how much this work would reward you with in terms of additional weekly rental revenue.
6.       Hit that offset account harder than ever. Most investors use an offset account to park their savings and revenue, to make sure the amount of interest they are charged on their loan is minimised as much as possible at any given time. For those who don’t have an offset account set up, get one. For those who do, look for ways to economise your personal life and spending so that you can park more revenue against it and reduce your interest payments further. This will bring your holding costs down that extra notch and improve your yield. It may only add up to a saved $10 to $20 extra, per week, but every little bit helps.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a target="_blank" href="https://propertyspectator.blogspot.com.au/">Property Spectator.</a>
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Rental yield most important in down property markets

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Until recently all the reports on the hotspotting.com.au website advised investors to get a valuation before buying real estate.
I have now removed that from our reports. I think valuations today are a waste of time and money.
I’m sure there are plenty of competent valuers out there who care about accuracy and professionalism. It’s just been a long time since I encountered one who fits that description.
All my recent experiences with valuers have been frustrating,and the feedback I’m getting from consumers around Australia suggests many others are having the same disappointments.
The problem is that valuers are killing real estate deals. Whether it’s conservatism or incompetence, many valuers are under-valuing properties to a degree that’s plain ridiculous.
Real estate research has been my business for 30 years. Whenever I’m involved in any kind of transaction I do a lot of research and I consult people with good track records.
But every time this year the bank’s valuer has come in with a figure well below market value. In the latest instance, the valuer’s figure was 25% under the true value.
The valuer spent no more than five minutes at the property, took a few measurements and left. The valuation was delivered a few hours later. How can that possibly be a professional and competent job? The result showed a disregard for sales evidence of comparable properties.
Earlier this year I had a similar experience. I protested to the valuation firm and presented my research. They instantly lifted their valuation 10%. Something they considered to be worth $500,000 yesterday was suddenly worth $550,000 today.
One of the issues is that an under-valuation can mean you have to pay mortgage insurance to achieve your goal ,and this is expensive. Sometimes I think this is the lender’s objective.
Many investors are having the experience of engaging different valuers and getting wildly different estimates for the same property.
Property analyst Michael Matusik provides this example: “One developer arranged for one of its newl completed apartments to be valued by several valuers independent of the banks.  The first valuation came in at $720,000, the second at $730,000 and the third at $595,000! Why was the third valuation so low?  Because the valuer had erroneously based the valuation on a distressed sale in a nearby project.”
I put my concerns about valuations out and about via Facebook last week and got a big response from people having similar frustrations.
Perth agent Bernie Kroczek said: “We recently had a sale fall over in Beldon in Perth, where the valuer put $400,000 on the property which had sold for $440,000. We resold it within days for $435,000.”
Here is some of the other feedback I received:-
“We recently had variations of 50,000 on our valuation from different lenders. Nearly killed the deal. And definitely ended up costing a lot more in LMI.”
“I had a purchase of a new house destroyed by the valuer.”
“We've just had a number of properties revalued and one in the inner north of Brisbane was under-valued by $50,000 easily. We know this as we are actively looking for another property in the area and have a stack of research and experience from attending auctions, etc. Getting a little frustrated.”
Inexperienced practitioners are putting too much emphasis on computer outputs instead of old-fashioned site visits and talking to people and looking at the evidence on the ground.
Whatever the reasons, I believe many valuers are not doing their jobs competently – and it’s costing people money and it’s destroying valid transactions.
Terry Ryder is the founder of <a target="_blank" rel="nofollow" href="https://www.hotspotting.com.au/">hotspotting.com.au</a> and can be <a target="_blank" rel="nofollow" href="https://www.twitter.com/hotspotting">followed on Twitter</a>.
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