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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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If you reside in NSW, you’d be excused for shaking your head in total disbelief. Not a case of where did they get the money for that? Rather, why is there no money for that? <a title="Public transport better in Mumbai than Sydney: PwC report" href="https://www.smh.com.au/nsw/transport-and-infrastructure-better-in-mumbai-than-sydney-pwc-report-20121015-27m08" target="_blank">Public transport better in Mumbai than Sydney: PwC report</a> Sydney ranks number four on the list of ‘worst major cities in the world for public transport’. Yet, <a title="Sydney the second most expensive city in the world " href="https://www.heraldsun.com.au/money/sydney-worlds-second-most-expensive-city-in-the-world/story-e6frfh5f-1226495524501" target="_blank">Sydney is the second most expensive city in the world, </a>which all sounds a bit rich (no pun intended) and for the record, Tokyo is the most expensive city in the world. If you look closely at NSW infrastructure, the general rule of thumb is that it is now 20 years behind best practice. So where then did all those billions of tax dollars go?
<a title="ousing shortage in NSW to reach 140,000 in four years" href="https://news.domain.com.au/domain/real-estate-news/nsw-needs-140000-new-homes-in-four-years-minister-20121015-27mi7" target="_blank">Housing shortage in NSW to reach 140,000 in four years</a>, which would explain statistics that show 30 percent of NSW dwellings are now rented. This just happens to be the highest recorded figure since 1958. Figures from RP Data show new rental listings dropped from 45,365 in the four weeks ending September 9 to 34,591 in the four weeks ending October 7. <a title="Rental listings down in every state in past month: RP Data" href="/news" target="_blank">Rental listings down in every state in past month: RP Data</a> NSW dropped from 12,390 to 9,018 – the figure was 11,560 this time last year.
Let’s be honest here – governments are not that smart. It’s almost impossible to entice property developers in NSW when Mumbai offers better transport than NSW. While <a title="Sydney on top of the property rich list " href="https://www.smh.com.au/business/property/sydney-tops-property-rich-list-20121011-27f56" target="_blank">Sydney is on top of the property rich list </a>with 19 of Australia’s most expensive 25 suburbs, they don’t really rely on public transport. It should be noted that <a title="Canberra’s big balancing act could hit negative gearing" href="https://www.smh.com.au/business/canberras-big-balancing-act-could-hit-negative-gearing-20121011-27fj4" target="_blank">Canberra’s big balancing act could hit negative gearing</a>. Should this happen and investors bail, our rents will skyrocket. Real estate markets need investors as do the third of Australians who are currently in rental accommodation.
<a title="Housing demand on the rise as population growth at highest rate in three years: Tim Lawless " href="https://www.propertyobserver.com.au/demographics/housing-demand-on-the-rise-as-population-growth-at-highest-rate-in-three-years-tim-lawless/2012101457076" target="_blank">Housing demand on the rise as population growth at highest rate in three years: Tim Lawless</a>,which is a compound property dilemma considering our record low interest rates will (not could) create a ‘mini-Sydney’ property boom. Rents are escalating at the highest rate and that in turn drives new purchasers into the marketplace – even though they may not want to be there. <a title="Adding air to a housing bubble" href="https://www.businessspectator.com.au/bs.nsf/Article/property-housing-equities-interest-rates-home-lend-pd20121017-Z5REL?opendocument&amp;src=rss" target="_blank">This could add air to a housing bubble</a>. Forget the global financial crisis. The ineptitude of Australian governments could well deliver a recession identical to that of the early 1990s.
Two graphs I grabbed this week identify the problems Australia faces.
Click to enlarge
<a title="Click to enlarge" href="/images/stories/2012/10/simoct19.gif" rel="shadowbox"><img src="/images/stories/2012/10/simoct19thumb.gif"></a>
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<a title="Click to enlarge" href="/images/stories/2012/10/rpoct104.gif" rel="shadowbox"><img src="/images/stories/2012/10/rpoct104thumb.gif"></a>
The Mosman housing market is going from strength to strength and Mosman houses today are 22% down on the numbers offered this week last year. I predict that over the coming weeks, this figure will climb as high as 40%. Heaven forbid: after years of that horrible GFC, we are now seeing a vendors’ market for houses. Who would have thought?
Robert Simeon is a director of <a target="_blank" href="https://www.rwm.com.au/" title="RWM">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog<a target="_blank" href="https://www.rwm.com.au/news/" title="Virtual Realty News">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
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Mosman housing market going from strength to strength

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Melbourne buyers' agent Paul Osborne of Secret Agent has looked at some of Melbourne's top inner suburbs to get an indicative price per square metre. 
The monthly focuses on houses in Melbourne's inner-city suburbs within a six-kilometre radius of the Melbourne GPO, addressing 26 suburbs.
"Our square metre-rate comparison is the first of its kind for the inner-city suburbs of Melbourne," he says.
"As expected for the period July to September 2012, East Melbourne was the most expensive of the 26 suburbs reviewed, with a median price of $12,676 per square metre of land.
"The most economical inner city suburbs were Brunswick at $2,546 and Brunswick East at $2,514.
"The median price per square metre in the premium suburb of Hawthorn at $3,281 demonstrates the traction that the inner city suburbs have in the property market," he says.
 
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<a rel="shadowbox" href="/images/stories/2012/10/osboct19.gif" title="Click to enlarge"><img src="/images/stories/2012/10/osboct19thumb.gif"></a>
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At $2,514 per square metre Brunswick East has cheapest house prices in inner Melbourne: Paul Osborne

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Based on daily movements in the aggregated RP Data-Rismark Home Value Index (updated daily at <a href="https://www.rpdata.com/" target="_blank">www.rpdata.com</a>, <a href="https://www.asx.com.au/" target="_blank">www.asx.com.au</a>, Bloomberg &amp; Reuters) covering Australia’s five key capital cities,  Australia’s housing market reached a recent trough on May 30 of this year  after values peaked 1.5 years earlier and 7.7% higher.  Since the recent low point in the index, dwelling values across the five-city aggregate index have gained 2.5%.
As can be seen from the table below, each capital city reached its respective market peak and eventual trough at a different time. Perth’s housing market peaked the earliest (May 9, 2010), followed by Brisbane (May 13, 2010) with the other major capitals finding a high point in October or November 2010.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/10/rpoct19.gif" title="Click to enlarge"><img src="/images/stories/2012/10/rpoct19thumb.gif"></a>
Additionally, the recovery time frame and duration of the correction varies from city to city.  The cities where housing markets were comparatively weaker recorded an earlier peak, while in the stronger markets (Sydney and Melbourne) values peaked later in the cycle.  In the combined Brisbane/Gold Coast market values consolidated over a two-year period, with values falling by 12.9%.  Adelaide’s housing market correction ran for 1.8 years, with values down 8.4%.  In Melbourne, values fell by 11.1% over 1.6 years, Perth recorded a 12.5% correction over 1.5 years and Sydney’s housing market had the smallest correction, with values down 6.8% over a 1.5-year period.
An interesting development in the most recent set of daily indices data is that the upwards trend in values that was evident from the end of May has taken a turn.  The five-city aggregate index reached a recent peak on the last day of September; over the first 16 days of October dwelling values have retraced 0.6%, hinting that the October results may finish in negative territory. If the monthly index does move back into the red in October, it will be the first fall since the five-city index fell by 1.4% over the month of May 2012.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/10/rpoct191.gif" title="Click to enlarge"><img src="/images/stories/2012/10/rpoct191thumb.gif"></a>
The market dynamic for each of the capital cities included within the daily index is provided below. Two graphs are presented for each city; the recovery phase (ie market trough to October 16) and the longer cycle of values since June 30, 2009 which provides a depiction of when each market peaked, the duration and magnitude of the correction and the start of what seems to be a recovery.
Graphs on page 2
 
<hr class="system-pagebreak">
 
Has the market entered a recovery phase or are we seeing a temporary improvement in housing market conditions?  If you have a view either way, feel free to make comment.
A further note:  <a href="https://www.rpdata.com/research/back_series" target="_blank">a rolling 12-month time series of the daily index</a> is now available for download.
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Tim Lawless is national research director of <a href="https://www.myrp.com.au/" target="_blank">RP Data.</a>
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Property values could dip in October for first time in five months: Tim Lawless

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The decision by Charter Hall Retail REIT to buy three high-yield sub-regional NSW shopping centres marks a shift in its acquisition strategy. The purchase won't add value to its portfolio but will free up capital to develop other centres it holds, according Goldman Sachs senior REIT analyst Simon Wheatley.
Charter Hall Retail REIT successfully raised $100.7 million from institutional investors to fund its purchase of Dubbo Shopping Centre, Tamworth City Plaza, and the half share in Lake Macquarie Fair and Mount Hutton shopping centres the trust did not already own.
The sale price reflected an initial yield of 9.6%.
Scott Dundas, Charter Hall Retail fund manager, said the acquisitions were in line with its strategy of “acquiring supermarket anchored centres in the $20 million to $80 million asset value range that improve the quality of the REIT's already strong Australian property portfolio”.
But Wheatley does not believe the acquisitions are a value-add for the trust, with the risk that a trend of declining net tangible assets could continue.
Charter Hall Retail has a $1.72 billion retail property portfolio with a net tangible asset value of $3.38 per share compared with a current share price around $3.55.
He says the acquisition of the sub-regional shopping centres “further shifts the portfolio away from the grocery store-anchored style it has historically been known for”.
“The assets acquisition increase exposure to discount department stores and also have a higher proportion of rent being derived from specialty stores."
“Sub regional centres are anchored by at least one discount department store,“ Wheatley tells Property Observer.
“The point is – as you move further away from neighbourhood centres into sub-regional and regional assets, the proportion of income from anchor tenants becomes lower and the proportion of income from specialty stores gets higher.”
As an example, in the Dubbo Orana Mall, discount department store Big W occupies a much biggest share of the mall than Woolworths or Franklins.
“The acquisitions increase Charter Hall Retail’s exposure to NSW. However, we don't believe this has any meaningful benefit to the trust. It would seem that the benefit is merely increased diversification and unlocking the ability to fund some development works which were previously liquidity constrained,” says Wheatley.
Dubbo Shopping Centre was acquired from Centro for $30.5 million on a yield of 10.2%, while the Tamworth City Plaza was acquired from Australian Unity Investments for $35 million, on a yield of 10.1%
The acquisition of the remaining 50% stake in the Lake Macquarie Fair and Mount Hutton shopping centres for $35.2 million reflected a yield of 8.6%.
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Charter Hall Retail REIT shifts focus to high-yielding sub-regional shopping centres 

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The Australian commercial mortgage-backed securities (CMBS) market has completely dried up in 2012, according to Standard &amp; Poor’s latest CMBS market watch report.
There were no new tranches of commercial mortgages issued to institutional investors in the first half of the year, and S&amp;P does not expect any commercial mortgage-backed securities (CMBS) offerings to be launched for the remainder of 2012.
As the chart below shows, the CMBS market peaked at $5 billion in 2006, but has declined sharply since then in the wake of the GFC.
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<a rel="shadowbox" href="/images/stories/2012/10/sandpoct23.gif" title="Click to enlarge"><img src="/images/stories/2012/10/sandpoct23thumb.gif"></a>
S&amp;P expects a quiet start to 2013 for the CMBS market.
“Approximately $1.92 billion of Australian CMBS and credit lease-backed notes remain outstanding as of June 30, 2012, compared with $2.04 billion in the six months ended December 31, 2011.
“The decline coincides with a flat period for CMBS issuance, amid persistent uncertainty in global markets,” says S&amp;P.
Issuing CMBS is an alternative way of raising funds to a traditional loan through a lender with both local and offshore investors able to participate.
In a commercial securitisation arrangement, loans secured against commercial properties are bundled together and sold as debt securities to institutional investors.
Recent issuers of CMBS (prior to the drying up of the market) include Charter Hall Retail and Colonial First State Capital Management.
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Commercial mortgage securitisation market dries up in wake of global uncertainty: Standard Poor’s

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Forecasters BIS Shrapnel anticipate stronger housing market conditions ahead for Sydney, Perth, Brisbane and Darwin, but warn that a boom in house prices would not be good for a sustained recovery of the market.
“I am hoping that stronger conditions [in these markets] does not mean a boom in house prices,” said BIS Shrapnel managing director Robert Mellor at a housing market briefing in Melbourne today.
“People love booms. So does the media.
“For the media it’s either a boom or a bust, but the reality is that we need modest house price growth which will then stimulate more construction and more development activity.
“But if we suddenly start getting price growth shooting up 10% and 15% per annum, then the market will run out of steam pretty quickly,” said Mellor, presenting the results of the 2012 QBE LMI Australian Housing  Outlook report for 2012 to 2015.
Mellor also dismissed recent talk of a housing bubble threat in Australia, as has been highlighted by overseas commentators and some local analysts.
“When you are talking about Sydney, which we are fairly bullish about, you need to put things into context..
“The Sydney market has had one good year in the last nine years.
“In real terms prices are 10% to 12% below what they were nine years ago,” said Mellor.
Overall, he says the Australian economy is in good shape, though the benefits are not being evenly felt due to the emphasis on the mining boom, with property and retail among those sectors to have suffered.
“Underlying demand for housing is still strong,” said Mellor, pointing out that there was a strong rise in overseas migration in the last year, which was one of the key drivers of housing demand.
However, while the outlook for Sydney, Perth, Brisbane and Darwin is strong, weaknesses are expected to persist in Melbourne, Hobart and Canberra for another three years.
“There will be an exodus of investors from Victoria,” said Mellor.
He says there will be a big rise in new apartments being completed in Melbourne over the next two to three years, particularly in places like Docklands and the Melbourne CBD, exacerbating the current oversupply of housing.
“Victorian investors will be looking north.”
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Modest recovery rather than a boom bodes well for housing market recovery: BIS Shrapnel

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With our residential property markets in a slump over the last few years, some investors are wondering if it’s worthwhile considering commercial property. 
They see that these are the type of properties owned by people in the BRW Rich 200 list and the big institutions; and they hear of high rental yields, long term leases and tenants paying the outgoings. All this makes commercial property sound very appealing. 
So let’s do a Q&amp;A to find out a bit more:
 Q: What are commercial properties? 
A: Commercial properties consist of shops (retail), factories and warehouses (industrial), and office space (commercial). 
My experience shows that commercial real estate has – both historically and in recent times of economic turbulence – proven to be significantly riskier for investors than residential real estate.
 
Q: What’s the fundamental difference between the two types of investment? 
A: These are very different investment vehicles. Residential property is a high-growth, low-yield investment while commercial property is a higher yielding but low-growth investment.
The values of commercial properties are yield-driven rather than (owner-occupier) demand-driven in residential property and fluctuate over time related to yields available from other investments and the prevailing interest rates.
As most commercial rental increases are usually pegged to the rise in the CPI, your rent increases at around 2% or 3% each year, stifling your capital growth. Then when the economy falters and businesses languish, commercial property tends to be out of favour and drops in value. 
Q: If the total return is similar, why not go for the investment with the higher cashflow, in other words, commercial investments? 
A: The fundamental job of property investors is to build themselves a substantial asset base to one day create a “cash machine” to replace their personal exertion income. This is much easier to do with capital growth, which is not taxed, than with cashflow, which is taxed. 
Q: How else does commercial property investment differ from residential real estate investment? 
A: There are considerable differences between the two types of property which may make them a less safe option for beginner real estate investors: 
Commercial properties tend to yield a higher return than residential properties – usually between 7% and 10% net compared to residential properties which yield 4.5% to 5% gross (then subtract rates, taxes, insurance, etc). Professional investors require a higher rental return to make up for this type of property’s inferior capital growth and longer vacancy factors. 
With commercial properties, the tenants usually pay all the outgoings such as rates, taxes and insurance. 
Because your tenant conducts their business from your commercial property, they tend to look after it better by maintaining the property, including painting it, and most leases require the tenant restore the property to its original condition at the end of the lease.
 
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Leases for commercial properties tend to be for longer periods, often three to five years as opposed to the one-year lease you can get from a residential tenant. 
However, when vacancies occur in commercial properties they are often for considerably longer periods than the week or two you may have a residential property vacant. How often have you seen a shop in your local shopping centre vacant for months on end? And when you do find a tenant you often have to offer them an incentive such as a rent-free period or a fit-out to entice them to lease your property. 
Lenders will usually only lend up to 70% of the value of commercial properties and I don’t know of any mortgage insurers who will lend on commercial property. 
Interest rates for a loan on commercial properties are usually higher than for residential properties – sometimes around 1% higher. 
Investors need significantly more equity to purchase a commercial property. This is partly because a bigger deposit is required and also because a good commercial property usually costs significantly more than a house or apartment. Sure you could buy cheap shops or factories in secondary centres, but they will usually have secondary tenants who are likelier to go broke and leave you with a vacancy. 
The cycle for commercial properties is different to that for residential properties and is more dependent on the general economic factors than the residential market. 
The lease required for a commercial property is a much more complex and is often prepared by a lawyer. 
It’s easier for the average investor to pick a top performing residential investment. Most know what to look for in a residential property but few would know what a tenant looks for in a good commercial or industrial property unless they have conducted their own business from one. 
While I have a substantial commercial property portfolio, I wish I had moved into commercial property a little later in my investment life as this type of property is more suitable for investors who already have a substantial asset base and have transitioned to the cashflow stage of their lives. It also makes a great investment in your self-managed super fund if you have substantial equity in it.
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
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Commercial property investment not for everyone

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Albert Bertini's Yarramalong Valley retreat has been listed for sale.
Rosehill Estate is marketed as a corporate retreat,  farm stay or even sales conference prospect with multi-income opportunities.
It's nestled in the heart of the valley about one hour north of Sydney.
Surrounded by forest and with frontage to the Wyong river, it comes with four separate accommodation pavillions.
There's multiple swimming pools and a giant waterslide, plus tennis court, a nine-hole golf course, gymnasium and entertainment club with bar and billards room.
It's been listed by Scott Wall and Paul Burnham from Coustwide First National.
No price indicated has been offered to Property Observer, although the valley talk is $3.5 million plus. 
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Sydney developer Albert Bertini lists Yarramalong Valley retreat with corporate retreat potential

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 A freestanding Middle Harbour strata-title duplex residence took the top spot on this week's RP Data top 10 sales list.
It has four bedrooms and three bathrooms.
It comes with inclinator access to its shared waterfront facilities, the boatshed, jetty and pontoon with two mooring poles.
It was sold by Pamela Downie and Chris Downie at Richardson &amp; Wrench Castlecrag, whose colleague Mark O'Brien took second place with a Castlecrag house sale.
1. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/1/47_coolawin_road_northbridge_nsw_2063/5068449">1/47 Coolawin Road, Northbridge, NSW, 2063</a>, four-bedroom house, sold at auction on October 10 by Richardson &amp; Wrench Castlecrag for $3.96 million
2. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/58_the_bulwark_castlecrag_nsw_2068/1790408">58 The Bulwark, Castlecrag, NSW, 2068</a>, five-bedroom house, sold at auction on October 10 by Richardson &amp; Wrench Castlecrag for $2.365 million
3. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/13_redcourt_avenue_armadale_vic_3143/15685251">13 Redcourt Avenue, Armadale, VIC, 3143</a>, four-bedroom house, sold at auction on October 13 by Marshall White Real Estate Albert Park for $2.225 million
4. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/33a_osborne_road_manly_nsw_2095/3983552">33A Osborne Road, Manly, NSW, 2095</a>, four-bedroom house, sold at auction on October 13 by McGrath Estate Agents Mosman for $2.2 million
5. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/40_taloombi_street_cronulla_nsw_2230/2018956">40 Taloombi Street, Cronulla, NSW, 2230</a>, three-bedroom house, sold prior to auction on October 13 by Gibson Partners Real Estate for $1.7 million
6. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/24_middlesex_road_surrey_hills_vic_3127/13403331">24 Middlesex Road, Surrey Hills, VIC, 3127</a>, five-bedroom house, sold at auction on October 13 by Fletchers Real Estate Canterbury for $1.66 million
7. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/218_albert_road_strathfield_nsw_2135/6478262">218 Albert Road, Strathfield, NSW, 2135</a>, five-bedroom house, sold at auction on October 13 by Devine Real Estate Strathfield for $1.582 million
8. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/2_wingate_avenue_eastwood_nsw_2122/2211589">2 Wingate Avenue, Eastwood, NSW, 2122</a>, four-bedroom house, sold prior to auction on October 12 by First National Epping Central for $1.552 million
9. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/52_austin_street_lane_cove_nsw_2066/3584644">52 Austin Street, Lane Cove, NSW, 2066</a>, four-bedroom house, sold at auction on October 13 by McGrath Estate Agents for $1.52 million
10. <a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/22_highgate_grove_ashburton_vic_3147/14612847">22 Highgate Grove, Ashburton, VIC, 3147</a>, four-bedroom house, sold at auction on October 13 by Kay &amp; Burton Real Estate South Yarra for $1.417 million 
 
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Richardson & Wrench Castlecrag takes top two spots on RP Data's top 10 weekly sales

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Should you consider buying an investment property interstate?
I often get asked this question.
Some people say you should only buy within the area you live in because you are familiar with the prices, can drive past to inspect the property and if required make your own repairs.
While all those reasons have merit, the answer goes far beyond this. 
There are several really important reasons why you should invest in properties interstate, and it’s more about good investment principles than convenience. 
Here are a few: 
1. Ride the property wave
The property cycle moves differently in different states. When one state is at the top of the property cycle other states could be at the bottom. You should buy at the bottom of the wave and ride the property wave.
2. The property clock
The property market moves through a cycle and when things are booming in Victoria they may not be booming in NSW. When they are slow in Perth they might be booming in South Australia.
Currently Melbourne is oversupplied, Sydney is “steady as she goes”, Queensland is at the bottom of the cycle but the Gold Coast is anticipated to stay at the bottom for many years to come, while Brisbane is showing signs of life. Perth is steady as she goes, and so on.
As you can see, each state is at a different part of the cycle, so it’s important you time the purchase at the bottom of the cycle.
Buying in your own suburb or state might not be the proper thing to do if you are at the top of the cycle.
 
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3. Land tax
Each state has different land tax rules and allows a certain land tax threshold before land tax is payable.
Once you have “used up” your land tax threshold in one state by having several properties held in that state, further properties in that state will attract higher rates of land tax.
If you then buy in another state, the land tax threshold starts again.
Hence another reason to buy in other states is because of the land tax you are prepared to pay. 
If you carefully manage the timing of your new purchases you could buy both at the bottom of the cycle and minimise your land tax by buying in the right state at the right time. 
For example, while the property cycle suggests Brisbane is at the bottom right now and may be the best place to buy your next investment property, if you already have several properties in the state of Queensland and have breached the land tax threshold in Queensland. 
Further properties bought in Queensland (whether they are in Brisbane, Townsville or the Gold Coast) would incur excessive land tax.
In this instance, you should consider investing in another state that is at or close to the bottom of the cycle and one where you have not used up the land tax threshold yet.
In the above example you may consider buying in Darwin if you have no properties there, as you have the full Northern Territory land tax threshold to take advantage of.
Therefore, careful management of your property investment strategy could mean you pay no land tax at all, even while holding over a dozen or so properties.
Wouldn’t that be good?
4. Diversification
Just as it’s important to diversify your share portfolio it’s also important to diversify your property portfolio.
Diversification means that when some properties are slowing down in some states you should have properties in other states that are growing.
This will also help manage your bank’s stress levels because while some properties they hold as security are going down in value the other ones they are holding may have gone up. 
Risk management is about ensuring your banks do not force you to refinance when the market values are down or you are forced to sell properties when the market is down.
While there are emotional reasons for investing in the state or suburb you feel most comfortable in, investing is much more scientific than using one’s “feelings”. 
It’s always best to use professionals to assist in property selection because they have the research material to determine where you should be investing.
Timing is so important because the market could change within months.
Get a property accountant to assist you with buying it in the right structure to minimise tax and give you the flexibility should your circumstances change in the future.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a> accountants and a leading property tax specialist. He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
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