Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

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The iconic Darrell Lea Chocolate shop on the corner of George Street and King Street in the Sydney CBD has been leased on a short-term basis by a City Convenience Store.
The store, which forms part of what was once the Belfields Hotel (dating back to at least 1910) was bought by Darrell Lea in 1957 and was the flagship store for 55 years.
City Convenience Stores were started by Lebanese immigrant Jamal Gebara in 1996 and according to its website, now operates 180 such stores across Australia.
<img src="/images/stories/2012/10/darrell3.jpg">
The convenience store is occupying the site on a rolling month-by-month basis while a longer-term tenant is sought for both the former chocolate shop premises and a second shop, which is leased to fashion accessories chain Diva.
Telstra has a store two down from Darrell Lea, and Property Observer understands it has sub-leased the neighbouring store to Diva in a defensive move to prevent another telco company from leasing space next to it.
<img src="/images/stories/2012/10/darrell1.jpg">
The mezzanine level of the building is currently rented to a photography store.
According to industry sources, the combined 100 square metre space leased currently by City Convenience and Diva is being marketed as one space with a long-term leasing deal imminent.
The distinctive cream corner building is covered with Darrell Lea insignia and ornamental decorative mouldings and gables.
It is owned by the Darrel Lea family but is not subject to the recent collapse of the confectionery business.
Darrell Lea collapsed earlier this year and <a target="_blank" href="https://www.propertyobserver.com.au/retail/quinn-family-explain-their-decision-to-buy-darrell-lea-and-close-stores/2012090456399">was sold to the Quinn family in September</a>. All the remaining Darrell Lea stores ceased trading on September 9.
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Convenience store temporarily takes up historic Darrell Lea space on Sydney’s George Street

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Not that long ago, the office market as a whole was progressing well, right around <country-region>Australia</country-region>.
However, following the GFC, each local suburban market has been recovering at a different pace.
<city>Perth</city> rebounded rather dramatically, once the mining sector started to pick up again. And yet it has suddenly plateaued while mining currently takes a breather.
According to recent research by Colliers International, Sydney's suburban office market seems reasonably balanced – with its vacancy levels ranging from 5.1% in<a href="/news"> Homebush</a> to 8.7% in <a href="/news">Parramatta</a> – with the exception of <a href="/news">St Leonards</a>/<a href="/news">Crows Nest</a> (at 10.7%), and Norwest (at 15.1%).
But with continued tenant demand and a lack of supply, you should see vacancies decline sharply in 2013.
On the other hand, <city>Melbourne</city> seems to be currently enjoying a tighter range, from 4.9% in the south-east to 7.9% in the outer east. And even though some 32,000 square metres of space is under construction, about 70% of this is already spoken for.
At the moment, <city>Brisbane</city> is showing a vacancy range from 6.4% in the inner south to 11.1% in Spring Hill. Overall, the <place>Brisbane</place> suburban market sits at around an 8.5% vacancy rate, which is up from its "unbalanced" level of 2% in January 2008.
The <city>Adelaide</city> market is much smaller than other capital cities and can often slip under the radar.
Rentals here have been increasing through strong tenant demand, and a current lack of new space coming on stream. As such, vacancy levels are likely to fall below 5% during 2013.
Markets within markets
While this brief analysis provides you with a quick "helicopter view" of the suburban office markets in the various capital cities, you really need to focus more on the specific suburban regions within each city.
This will mean going back in time as well as studying the projections looking forward.
By way of example: Let's dig a little deeper within the <city>Melbourne</city> market — where from this graph, you can observe the movement in vacancy levels over the past year or so.
<img src="/images/stories/2012/10/langoct22.gif">Clearly, the south-east region has been consistently outperforming the others. And this is expected to remain the case for the foreseeable future – which would tend to make this particular region your preferred choice.
Bottom line: You can't simply rely upon the general health of a particular capital city market as the sole basis for making your decision.
It is important to peel back the layers and delve below the surface to reveal the underlying trends and ensure you have some real substance to justify your intended purchase.
And having that local knowledge will go a long way.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Investing in office property requires knowledge of the local market

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ISPT’s 50 Lonsdale Street Property Trust has been the best-performing unlisted property trust over the past 12 months to September 2012, according to Mercer/IPD Australia Monthly Property Fund Index.
The trust, which holds the Urban Workshop, a 69,000-square-metre A-grade commercial building, delivered investors a return of 12.8% over the last 12 months, compared with an average annual distribution yield for the wholesale core property sector as at September 2012 of 6%.
Designed by John Wardle Architects, Hassell and NH Architecture and developed by ISPT, the Urban Workshop was constructed in 2006 and stands in the parliamentary precinct of Melbourne's CBD on Lonsdale Street.
It comprises ground-level foyer and coffee shop, 33 levels of office accommodation, five levels of basement parking and a leisure centre.
It adjoins the Madam Brussels Lane retail precinct, named after notorious Melbourne brothel owner Madame Brussels, who opened her first establishment at 8 Lonsdale Street in the late 1880s and ended up owning eight brothels in the district.
Following construction the Urban Workshop won numerous awards, including the 2006 Royal Australian Institute of Architects Victorian Chapter Sir Osborn McCutcheon Award for Commercial Architecture; the Marion Mahony Award for Interior Architecture; and the Joseph Reed  Award for Urban Design and The Melbourne Prize.
It has a 4 ½-star NABERS energy rating.
The building was valued at around $400 million as of September 30 2012 and is currently 100% leased, with tenants including Telstra, superannuation administrator Superpartners and accounting firm GMK Partners.
The chart below shows the top performance of the ISPT 50 Lonsdale Street Property Trust as well as the wide spread of returns across funds, ranging from 4.9% to 12.8% over the last 12 months.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/ispt.gif"><img src="/images/stories/2012/10/isptthumb.gif"></a>
Dr Anthony De Francesco, managing director of IPD in Australia and New Zealand, says total returns for Australian unlisted core wholesale property funds have softened since their peak of 9.8% in August 2011, reflecting “general weakness across most of the macroeconomy”.
“The persistence of the sovereign debt crisis in Europe will continue to dampen global economic growth and constrain asset prices and fund returns.
“A possible downside risk to the Australian economy is the joint slowing of China’s economy and the ending of the mining boom. Both of these factors will prove to be detractors of growth to the Australian economy," he says.
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ISPT’s Urban Workshop in Melbourne CBD ranks as top-performing unlisted trust with 12.8% annual return

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Most people are familiar with the phrase “knowledge is power”, and for investors who might be looking to expand their asset portfolio, it often pays to remain up-to-date regarding the market values of properties. Not only can this knowledge help to inform decisions about whether or not to grow a property portfolio, but it can also assist in determining how to finance such acquisitions.
For many investors, the concept of unlocking property equity to finance additional acquisitions is becoming increasingly attractive – largely due to the liquidity, flexibility, taxation and capital growth benefits that can often result from such.
In real estate terms, equity is the difference between the current market value of a property and the amount owing on that particular property. For example, if a home is worth $700,000 and the owner owes $300,000 on a mortgage, he or she has $400,000 worth of equity.
Depending on the personal credit circumstances of the owner, he or she may be able to use a proportion of their equity to undertake renovations, refinance the mortgage or purchase additional investment properties.
It is important to note that property equity is not fixed, but rather can change according to market conditions; that is, when a property’s market value fluctuates, so too does the proportion of equity invested in it. With this being the case, the ability to use property equity as a source of investment finance will be largely dependent on the degree of equity that actually exists within a property at a particular point in time.
As equity and borrowing capacity are inextricably linked, unless an investor has an up-to-date knowledge of how much his property is worth and how much equity he can access, he cannot properly harness his portfolio-expansion prospects.
 
<hr class="system-pagebreak">
 
Take, for example, an investor who has been steadily paying off his property portfolio (consisting of several properties) for a number of years. Over this period many prime buying opportunities may have come along – however, if the investor has not remained up-to-date on the market values and equity proportions within their properties, it is possible that he will have not considered, let alone taken advantage of, potentially fortuitous acquisitions. 
Without knowledge of what you have now, it will be difficult to know what you are able to do in the future.
It is for this reason that annual market appraisals can be a powerful tool for property investors; they can enable an investor to remain informed of the available equity in each of their properties, consequently giving them a clearer understanding of their own financial position and current ability to make further acquisitions.
Despite the wealth of knowledge that most seasoned property investors have about the real estate market, many will remain unaware of potential sources of finance that may be sitting directly under their noses. A key way to combat this is to have an annual market appraisal – something which will enable you to gain a good idea of how much property equity you might have access to. Doing this, in conjunction with a mortgage capacity check, will place you in a better position to assess your property portfolio expansion prospects, and to be able to act quickly to secure investment opportunities, should you wish to do so.
You might not be ready to buy at the moment – however, through knowing what you can afford, you can begin looking at investment opportunities – ready and able to pounce.
Harry Bozin is a director at <a target="_blank" rel="nofollow" href="https://www.century21homeloans.com.au/loantype.cfm">Century 21 Home Loans WA</a>
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hbozin-VeiaHmdgyD

Property investors need knowledge to build wealth

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Talk is cheap because supply exceeds demand.
The cheapest talk comes from economists speaking about real estate, because supply (endless) is hugely in excess of demand (zero). There’s also a low price on the articles of most journalists about property because the demand is for a David Jones product but most of the supply is coming from Gone Bonkers. 
So, after two years of price decline or stagnation in our major cities, at the first sign of price recovery they’re out there talking up a bubble. 
Yes siree, if you crave a bit of media limelight the shortest route is to contact a lazy journalist and give them a sound byte with the word “bubble” in it. 
Data from the various research sources indicates we’ve had three or four months in which the average result across the state and territory capital cities has been a rise in median prices. 
I’m not sure how reliable the data is, because organisations like RP Data are so desperate to be first with the news that they’ve been calling the monthly price movement on the last day of the month, something that’s difficult to do credibly. Indeed, this week RP Data declared the October price movement 10 days before the end of the month. Is the need for publicity really that desperate? 
Nevertheless, the trend evident in the figures from various research sources is one of big-city prices now starting to trend north, slowly. 
Further to that, a number of forecasters are predicting rising prices in the near future. BIS Shrapnel is tipping growth in all eight state and territory capitals in the next three years, with the strongest to be in <city>Perth</city>, <city>Brisbane</city>, <city>Sydney</city> and <city><place>Darwin</place></city>, where the rises are expected to be solid but not spectacular. 
National Australia Bank published its survey of Australian property professionals, most of whom are expecting moderate growth in the next 12 months. 
So we appear to have a return to price growth, though small, with the prospect of more moderate rises. 
But there’s no middle ground with media. It’s either boom or bust. Now it seems even the smallest rise in house prices instantly has the label “bubble” slapped on it. Alternatively, a cut in interest rates gives rise to fears of a bubble.
David Uren, who writes about economics for The Australian, recently tried to link fears of a house price boom in <country-region><place>Australia</place></country-region> into an incoherent rave about inflation and global financial instability. Some fairly innocuous remarks by business leaders have been portrayed by journalists as fears about a bubble, when the people quoted never used that terminology. 
Bubble talk has been around for the past five years. It started when a metropolitan newspaper journalist misquoted RBA governor Glenn Stevens and the mistake was repeated as fact by media outlets around the country. Economists and journalists have been promoting bubble talk ever since, although Stevens never said the words reported. It wasn’t merely a beat-up – it was a lie. 
I’m still waiting for someone who subscribes to the bubble theory to actually define it. So far, nobody has. The term implies that something has been over-inflated and will burst. 
Despite all those dire predictions about a collapse in our home prices since 2007, mostly from publicity-seekers based overseas, the forecast implosion hasn’t happened. 
So why are we talking about a bubble now, when capital city prices have barely budged after two years of mediocrity? Because we’re beset with writers and commentators who are shallow, lazy and like the sound of their own voices.
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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We are returning to moderate housing price growth, but no bubble: Terry Ryder

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In my<a href="https://www.propertyobserver.com.au/developments/cbus-property-s-mark-percy-in-conversation-with-colliers-international-s-peter-chittenden/2012101557171" target="_blank"> recent conversation with Mark Percy</a>, executive manager of residential of Cbus Property, we explored some of the main issues confronting our sector. I was also very pleased to hear Mark express some refreshing thoughts across a range of ongoing topics impacting the housing market, as well as some timely points directly related to project marketing.
According to Mark, it is affordability that sits at the heart of limited new housing supply housing, combined with limited development sites and planning delays. He suggests that this will drive major changes with more demand for smaller houses and apartments already occurring.
“The demand for smaller homes is not only driven by  affordability. The increasing demand and acceptability of this form of housing  is complex, as it is being driven by many market factors such as the location of existing infrastructure, work, family, shops, restaurants, theatres, etc. Buyers will compromise their expectations on a dwelling size to be located as possible to this infrastructure and support network.
"This has led to the continued infilling of our major urban areas which has the added benefit of making better use of existing infrastructure. This has the added benefit of reducing pressure on providing infrastructure on the edges of the existing urban area but increases the demand for housing in the inner-urban areas.”
However, in the immediate future Mark believes that the biggest hurdle for the residential market is that there has been a shift in market conditions because of the lack of confidence among buyers and, although manifest in the issue of affordability, it is a very complex issue.
“Among owner-occupiers, there is a lack of confidence, and many people are simply not moving from their existing home. There are many reasons for staying put; many are financial, but there are also social and demographics working here.”
Mark believes that buyer motivation and timing have shifted, which he sees as key reasons for the big drop in demand and hence the fall in home building construction. The cost of moving and poor capital growth are other factors, Mark says.
“In NSW, because of stamp duty incentives available before 30 June 2012, we saw that investors and first-time buyers below $600,000 were very active in the market. But I think it could be argued that this may well have created a distortion in the overall market as many developers moved to change their product offering to meet the inflated demand in this sector of the market caused by the temporary incentives on offer.
"Immediately after 30 June, there was a noticeable drop in demand for new housing. I think that generally the product range and quality needs to be sufficiently broad to attract a cross section of buyers – focusing on one sector of the market is risky, particularly when demand for a particular sector of the market can be affected by Government incentives being introduced or withdrawn through the life of a project” he said.
But while Mark agrees that incentives create activity in the particular sector of the market to which they apply, he believes that despite the incentives that were on recently on offer, the wider market appears to have a lack of motivation and confidence.
While affordability is a big issue, Generation X and  Y are simply not driven to buy a home as any sort of priority, unlike their baby boomer parents were. This has reduced the formation of new households in this age demographic.
Mark cites the clear trend that Gen X and Y are more inclined to want to travel and stay at home longer than their parents did. Homes, either big homes or smaller ones, are today not on their short term agenda. But Mark thinks that the industry needs to think about how this will play out in the mid to long term when Gen X &amp; Y finally “settles down” – the development industry needs to focus a lot of attention and forward planning on this group of buyers to understand their drivers when it comes time to purchase a home and ensure that housing forms provided are suitable for this market.
“Clearly the market has changed in an almost generational shift in priorities and economic circumstances. They are happy to stay at home longer. Many are marrying and having children later and this trend, combined with what plans and aspirations mum and dad, the baby boomers, have is creating a fascinating mix of challenges and opportunities.
“Mum and dad might down-size and help the kids with by contributing some cash to assist their children to buy a home but this does not address the deeper issues of affordability.”
<hr class="system-pagebreak">
 
Major challenges and hurdles faced in the residential sector
During my conversation with Mark Percy it became clear that 35 years of experience have helped to focus his thinking, when it comes to the industry’s structure and the hurdles the residential sector faces. However, Mark also clearly sees how improvements can be made and is keen that Cbus Property is, in its own way, able to play a part in this ongoing process.
“When you analyse the development industry’s hurdles, some of the current hurdles are big ones and, as might be expected, many are to do with availability finance. Finance feeds into every aspect of the market, it impacts on the amount that individuals can borrow and therefore how much they can pay for a home, but this is only one area of note, even if it’s a very visible issue and always talked about” he commented.
But Mark also points out that there are other major issues and these impact on the sustained record of low levels of housing construction in recent years that has limited new supply.
“The industry faces development funding issues. It’s a really big issue, and it is impacting both large and small players.
“Clearly anyone would be able to point to the fact that lending conditions have dramatically shifted since the GFC, and it could be said that the same lack of confidence among buyers has impacted the lenders who have become, by circumstance, much more conservative in their lending.
“This is not to suggest this is an overall bad thing, but it has caused a big shift in how the industry plans, manages and delivers projects. One key point is that equity levels have moved to new higher ground, developers are now required to contribute much higher equity, close to 30% or 40%. I think that for many developers this is the issue of the decade."
Across the industry few would not agree with Mark’s comments as there is now a clear struggle to breach this equity gap and secure a very high level of pre-sales off the plan. This is impacting on how projects are being sold and marketed. Banks often have a pre-sales requirement reaching 100% of the senior debt facility limit before they will commence funding a project.
“Some of the key reasons organisations are looking to partner with Cbus Property is our experience because and financial capacity.
“Obtaining ever more pre-sales requirements are a trend we are not exempt from, and this is creating other challenges. The market is more product / affordability  sensitive and needs to design for the off the plan market – this, for example, has reduced the number of larger two- and three-bedroom apartments in projects, as these are generally difficult to sell before construction, and securing project funding is often viewed from this perspective. This feeds into affordability at every level of the market – smaller apartments are much easier to sell off the plan and therefore help to somewhat de-risk the project. Smaller apartments go some way to assisting with affordability constraints.”
“Affordability is a complex issue, it’s easy to point to one area or another, like interest rates or high selling prices, but in reality many factors are involved. Everyone talks about this issue and there does need to be a concerted effort to improve affordability.
“Land value is a big issue. If you own a parcel of land with no particular motivation to sell, then you can simply sit and wait for a high price. Construction costs are often mentioned but I believe we generally build efficiently. Builders’ margins are generally low for the risks they are responsible for. Quality has to be there, and there is no room to build below a particular quality standard to make a home more ‘affordable’ – that can simply devalue the housing stock, if you create rubbish you simply create another set of problems and destroy the reputation of the company and the overall industry.
“There is also the very real impact of how government levies and charges are imposed. This area is one of the biggest costs to developers, the fees are payable up-front, and so these costs have to be financed and add to finance costs from day one. If the majority of levies could be paid towards the end of the project, this would be of much greater assistance.
Like many others in the development industry, Mark points to the need to balance just how much can be charged against new developments by authorities and government and how services should be paid for. The real point is should all of this cost be captured up-front, from the developer and the initial buyer? After all, most of the services will be there for all of the foreseeable future, not just for the current generation.
“Developers build roads and other forms of infrastructure, built and then used for decades. These are dedicated to the local council or supply authorities who in-turn collect a revenue stream, in the form of rates for local councils while utility companies get a parcel of customers that the developer delivers.
Stamp duty has a major impact on affordability and the rate increases with the value of the home, it impacts greatest on the mid and upper market. As evidenced in NSW before 30 June this year, when it was waived for new dwellings under $600,000, affordability can be  improved and buyers are motivated to commit to a purchase with this form of assistance.
I think that Mark’s comments help to move affordability beyond the monthly interest rate cycle, or reports of the ups and downs of house prices into a complex array of issues at every level of the market.
Mark commented to me that he encounters this topic frequently and he continues to argue that this is a multifaceted topic, and in the next post we will look at the impact of planning policy, another core topic, but one that also impacts affordability.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
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Affordability at the heart of limited property supply: Mark Percy in conversation with Peter Chittenden

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The Perth median house price was unchanged over the September quarter at $482,000, following revisions to the June median house price, with sales volumes falling marginally, according to the Real Estate Institute of Western Australia (REIWA).
The institute had previously reported an unrevised June quarter median of $475,000.
The number of properties listed for sale fell 14% during the quarter to just 10,400 listings, well below normal levels of around 12,000 properties and down by 30% over the last year.
Rents remained unchanged at a median of $450 per week, but are up more than 10% over the past 12 months.
The combination of higher rents, a low rental vacancy rate of 1.8% (and unlikely to return to a balanced market level of 3%) as well as a “surging” population continues to build pressure on prices, according to REIWA president David Airey.
Airey said that while house prices were stable, turnover had been declining with the sales volume dipping by around 4% in the September quarter.
“Turnover is still around 25% higher than the same time last year, but the trend over the last few months shows this to be slowing. It might be a seasonal dip given that the winter months are sluggish, or it might be part a longer pattern we need to monitor.
“Interestingly, sales turnover for units, apartments and villas grew by around 3% in the September quarter, but with no movement in the median price in the multi-residential segment of the market.”
According to Airey, growth in the market for units valued under $350,000 is probably a reflection of the very strong first-home buyer activity.
“First-home buyer grants for the September quarter were at their highest level since 2009, before the first-home owner grant boost ended, and now account for around 30% sales,” he says.
“These listings include some 2,100 blocks of land, many of which are in the regions of Rockingham-Kwinana, Armadale-Serpentine, Gosnells, Swan and Cockburn,” says Airey.
Land in Rockingham starts from around $180,000 for a 442-square-metre block, while a 420-square-metre block in Armadale can be picked up under $100,000.
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Perth house prices unchanged in September quarter with first-home buyer numbers rising: REIWA

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Mining-rich Western Australia is still dominating the rest of the country when it comes to state-by-state economic health, but Northern Territory is gaining ground quickly according to new research from CommSec.
The organisation's latest State of the States report has confirmed the ongoing trend – Western Australia is still on top in four of the eight criteria, and weaker states such as Tasmania have continued their ongoing struggle.
There are some changes appearing. The Northern Territory has passed the ACT to reach second, with its natural gas projects helping provide momentum, and New South Wales now ranks among Victoria and Queensland.
But overall, says CommSec chief economist Craig James, not much has changed.
"While there has been some modest reshuffling of other positions, in general there hasn't been much change over the past three months."
Western Australia has led on construction work, retail trade, population growth and equipment investment, with the only real weak point in dwelling starts, where it ranked seventh.
The Northern Territory ranked well in economic growth, jobs, and retail, coming second. The ACT ranked third with large growth in dwelling starts and population growth.
New South Wales moved from fifth to fourth along Victoria and Queensland, with relatively low unemployment helping out there. However, Victoria dropped due to higher unemployment, with Queensland also affected by weaker housing finance.
In terms of gross domestic product, the Northern Territory leads, followed by Western Australia and the ACT. But economic activity in Tasmania was up just 5.5% – the island state recorded a growth rate of negative 2.9%.
Western Australia retained its rank for retail trade – although James noted that if monthly retail trade data was assessed, the ACT and South Australia would swap ranks. The Northern Territory and Queensland ranked second and third, followed by Victoria.
Tasmania recorded the weakest result, up just 6.5% on the decade average.
The Northern Territory and Western Australia recorded the strongest job markets, with the former recording a jobless rate of just 3.9%. The weakest market was in Queensland, with the jobless rate at 6.1%, 19% above the decade average.
Housing finance, James said, was a "useful indicator of activity in the financial sector". Victoria had the strongest market, with housing finance commitments 2.4% below the decade average level, while in Western Australia, the number of commitments was 3% below the long-term average.
Tasmania recorded the weakest result with commitments 27% lower than the decade average.
Overall, James said the states have mostly retained their rankings, although Northern Territory has enjoyed some improvement due to the ongoing strength of its natural gas projects. Tasmania is still expected to be the weak point.
"The Tasmanian economy continues to struggle and there are few signs of improvement on the horizon. The economy must exploit the relative advantages of a cheap property market and attractive agricultural export and tourism opportunities."
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>
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Tasmania must exploit the advantages of its cheap property market: CommSec

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The federal government remains on track to deliver a budget surplus this financial year, giving the Reserve Bank “maximum flexibility to cut interest rates” says Federal Treasurer Wayne Swan following the release of the 2012-13 Mid-Year Economic and Fiscal Outlook (MYEFO).
He also pointed out that mortgage holders are $4,500 a year better off due to cash rate cuts by the RBA while the current Labor government has been in power.
The cash rate was at 6.75% when Kevin Rudd was sworn in as prime minister in December 2007 and is now 350 basis points lower at 3.25%.
However, the MYEFO forecasts dwelling  investment  to be flat in 2012-13, before  growing 4% in 2013-14.
“Dwelling investment declined 3.3% in 2011-12 on the back of continued weakness in the detached housing market.
“Conditions across the sector are expected to improve gradually over the remainder of 2012, consistent with the solid growth in dwelling approvals and commencements seen in the June quarter.
“The recovery is expected to gather momentum into 2013-14, driven by a pickup in homebuyer demand, improved affordability following declines in house prices over the past two years and the assumption that interest rates will remain below average across the forecast period," says the MYEFO.
Announcing the release of the MYEFO, Swan emphasised the government’s efforts to return the budget to surplus “despite worsening global conditions cutting almost $22 billion from tax receipts”.
“Returning the budget to surplus also gives the Reserve Bank maximum flexibility to cut interest rates, as it has several times in the past year.
“Interest rate cuts since the government was elected in 2007 are saving a household with a $300,000 mortgage around $4,500 every year,” said Swan.
The government is forecasting real GDP growth at around trend of 3% in 2012-13 and 2013-14, a downgrade of 0.25 percentage point in 2012-13 compared with what was in the federal budget, but follows stronger than expected growth in 2011-12.
“While global headwinds, a high dollar and changing consumer behaviour are weighing on some sectors, the Australian economy is expected to outperform every major advanced economy this year and next, with growth underpinned by strong investment, strong growth in export volumes and solid growth in consumption.
“The unemployment rate is forecast to remain low at 5.5 per cent in 2012-13 and 2013-14, in stark contrast to the stubbornly high rates of unemployment seen across the developed world.
“Both headline and underlying inflation are expected to remain well contained over the forecast period, sitting within the RBA's target band,” says Swan.
Swan also pointed out Australia remains on track to return the budget to surplus “ahead of all major advanced economies”.
“The average net debt position of the major advanced economies (G7) is projected to peak at 95%t of GDP in 2016, almost 10 times higher than the peak in Australia's net debt of 10% of GDP in 2011-12.”
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Budget surplus gives RBA 'maximum flexibility' to cut rates but dwelling investment recovery a year off

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Australian households are at their highest levels of financial confidence since May 2011, with more than three-quarters (75.8%) expecting that house prices will grow or remain stable to the end of the year, according to the latest Commonwealth Bank/Mortgage &amp; Finance Association of Australia Home Finance Index.
This is up from 67.3% in March and 53.6% in the third quarter of 2011.
The number of respondents who believe that house prices will fall in the next quarter has dropped to just one-quarter (24.2%), from 32.7% in March and 46.4% in the third quarter of 2011.
Property market sentiment is highest in Western Australia, with 42.7% of WA respondents expecting prices to be higher over the next 12 months, followed by NSW, with 31.1% expecting higher prices over this time frame, although some 22.4% of NSW respondents expect lower prices.
<img src="/images/stories/2012/10/cba.gif">Victoria is polarised, with a fairly similar proportion expecting an increase (26.8%) and a decrease (29.0%).
The weakest expectations are in South Australia, where 18.9% of South Australian respondents expect property prices to  rise in the next 12 months and nearly a third (32.9%) expecting them to fall.
The overall sentiment index increased to 90.6, up from 84.0 in March 2012 and well above a September 2011 low of 73.5 suggesting continued growth in property prices in the coming quarter.
According to the survey, the uptick in home buyers' optimism is being driven by flat property prices and continuing falls in interest rates, creating a "buyer's market".
The results are based on a survey of 1,423 people carried out by CoreData between August 9 and August 31.
“All of the signs are for a recovery of the property market, with Western Australians the most optimistic of the states, followed by people in NSW. The property market is all about confidence and the survey confirms that good times are ahead, especially as interest rates continue to fall,” says MFAA chief executive officer Phil Naylor.
The survey also found that the proportion of first-time buyer respondents who believe it is a good time to buy a new home fell from 51.7% in March to 42.4% in September, with anxiety regarding servicing a large debt if a property were purchased the primary concern of first-time buyer respondents rising to 71%, up from 69.2% in the last quarter.
Slightly more first-time buyers are placing buying a home on hold due to the payments and level of borrowing required (56.2% vs. 54%), and delaying their first-home purchase due to economic uncertainty (43.4% vs. 40.0%).
Of those first-time buyers who say it is a good time to buy, they are encouraged because prices are low and rates are down.
WA first-time buyers are the most convinced it is a good time to buy (54.3%), followed by those in Queensland (50.0%). This is a reversal on March, when WA respondents were least convinced it was a good time to buy, suggesting that they may perceive that affordability has improved.
Only around 40% of first-time buyers in NSW, Victoria and South Australia believe it is a good time to buy their first home.
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