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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 housing market is one of the sectors that will benefit from the "boom" in the number of Chinese tourists who visited Australia over the past 12 months as well as permanent migration numbers just off record highs, according to CommSec chief economist Craig James.
The latest ABS overseas arrivals and departure data shows that Chinese tourists were not put off by the high Australian dollar, with a record 56,600 visiting Australia over August – up 15.7% on a year ago for a 12-month total of 607,900.
James calls this "the other boom".
China is now Australia’s second biggest tourist market, having now overtaken the UK (48,700), with New Zealand (96,500) occupying top spot.
Putting this in to context, in 2000 about 100,000 Chinese visited Australia annually.
<img src="/images/stories/2012/10/commsecoct10.gif" width="470">
Overall tourist numbers were up 3.7% in August to 514,100 – also a record for data going back to 1976.
The same ABS data also shows that the number of “permanent arrivals” to Australia in the year to August was just below 160,000 and just off the record highs set in 2009.
“The surge in Chinese tourists to Australia together with the lift in migrant numbers to near-record levels are two key developments,” says James.
“Increased migration means greater demand for houses, cars and consumer durables.
“Rising Asian tourism injects valuable dollars into regional economies. Overall there is good news for housing and tourism-dependent businesses and regions,” he says.
James adds that the latest tourism figures should serve as a “wake-up call to those businesses that claim that they can’t operate with an Australian dollar perched above parity against the greenback”.
ABS figures showing that the number of Aussies travelling overseas for holidays or business fell by 0.2% in August after falling by 1.4% in July – only the second fall in six months.
In seasonally adjusted terms the tourism deficit – the gap between departures and arrivals – eased from a record 188,700 in July to 169,200 in August.
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Chinese tourist 'boom' and high migration numbers bode well for housing demand: CommSec's Craig James

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Home buying sentiment surged 9.6% in October to its highest level in three years, according to the latest Westpac Melbourne Institute Index of Consumer Sentiment.
Westpac chief economist Bill Evans called this the “most encouraging result” from an overall disappointing reading of consumer sentiment in October.
The overall index increased by just 1 percentage point in October from 98.2 in September to 99.2 in October – the eighth consecutive month it has been below 100, indicating that pessimists outnumber optimists.
However, home-buying sentiment as measured by the "time to buy a dwelling" sub-index is now up 17.9% over the past two months and at its highest level since September 2009 – “the last period when the sentiment overall was surging strongly”.
“This message is consistent with other recent evidence of firming auction clearance rates. The response of the housing market to the recent rate cuts will be very important to watch,” says Evans.
The October survey of 1,200 was conducted in the week from October 1 to October 7, 2012. The RBA cut the cash rate by 25 basis points on October 2.
Evans called the overall result “disappointing”.
“There were a number of reasons to have expected the sentiment index to have increased by more than only 1%.
“Firstly, and most importantly, the Reserve Bank cut its overnight cash rate by 0.25 percentage points from 3.5% to 3.25%.
“Unlike some moves by the Bank which are fully expected by the media and therefore may not have a marked impact on confidence this move was not widely expected and therefore should have registered as a ‘pleasant surprise’ for respondents.
“Instead we saw the sentiment of those folks with a mortgage hardly move with a minuscule 0.6% increase.
“Of course a likely complication was the response of the major banks, most of which only announced their mortgage rate reductions on October 5 – five days into the seven day sample period – with reductions ranging from 0.18% to 0.20%,” says Evans.
He added that it remains of some concern that the index is "still significantly below its level of last November following the first 25-basis-point cut in the overnight cash rate.
"Since that time the Reserve Bank has cut the overnight rate by a further 125 basis points but the index is now 4.1% lower."
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Home buying sentiment surges to highest level in three years: Westpac Melbourne Institute Index

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The property market is cyclical, and buyers will only stay out of it for so long. Many are sitting on the sidelines watching proceedings from the safety of their non-committal mind set. However last week’s 25-basis-point cut to the cash rate is just one of a number of factors that suggest buyers will return sooner rather than later. 
When we look at the broader financial indicators that drive consumer confidence in the property market I see a few clear signs that will entice buyers back to the market over the next 12 months. 
Affordability – reports during the week suggest unemployment is on the way up, with some experts expecting it to top 6%. The RBA’s tool to combat rising unemployment is to cut the official cash rate in an attempt to entice business spending and job creation. While the banks will not pass on the entire rate cut they will pass on a large part of it, and those not caught up in the unemployment cycle will benefit from lower interest costs. 
Buyers rushed back to the market in 2001 and 2009 due mainly to falling interest rates. The main difference this time around is it will not come packaged up with increased first-home buyer incentives. This means that first-home buyer markets may lag behind the broader market. 
Capacity – According to the RBA household savings rates are at the highest levels since the mid-1980s. They have been trending up since the mid-2000s and now hover around 10% of disposable income.
<img src="https://www.urban.com.au/images/stories/2012/10/rbaoct10.png" width="470">
Many borrowers have been making substantial excess principal repayments in recent years, and this has increased their equity and cashflow positions.
For many people, myself included, money begins to burn a hole in our pockets. The people who have been saving and have job stability, which is 95% of the population, will start to realize that the sky is not falling in and will begin to consider making their move. 
Demand – Home ownership in Australia is very high, with around 70% of people living in a property with their name on the title. The needs of a home owner change over time, whether it be needing to upsize or downsize. Although many owners have put these plans on hold, the necessity to change will force them to eventually make their move.   The lifestyle nature of residential property means that there is always a degree of underlying demand. 
Further, property is a great Australian pastime, and this continues to be the case. Web statistics show that, although competition from buyers has been relatively soft in 2012, web browsing continues to be very high. Nielsen’s online analysis of real estate portals suggests more that 3 million Australian’s search for property each month. That means around 15% of the entire Australian population are actively looking at property at any one time. 
This activity flows onto the physical market, with many agents reporting high numbers at open for inspections for good quality homes. Despite the level of interest, many people have had the mindset that 2012 has not been the right time to buy. It is only a matter of time until this mindset changes. 
As a result of these factors, supply and demand for residential property will become more balanced over the next 12 months.   The property market will begin to find its feet and move into a more sustainable growth pattern.
Xavier Perronnet is a director of <a href="https://www.ipropertyplan.com.au/" target="_blank">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
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xPerronnet-8mfxFYHVTQ

Why confidence is returning to the property market: Xavier Perronnet 

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Low rental vacancy rates, rising rents and eventually rising rental yields are expected to draw property investors back to the housing market and increase the supply of new housing, RBA deputy governor Philip Lowe has said following a speech in Hobart this week.
Lowe also said that the need for stronger housing and non-resource investment suggested the bias remains for interest rates to be lower to support ongoing jobs growth.
He acknowledged that construction remained one of the weakest sectors in the economy, particularly the residential construction sector, with an estimated 70,000 jobs lost in the past year.
Lowe made this observation while answering questions during a Q&amp;A session following a speech on structural changes in the labour market as part of a Financial Services Institute of Australaisa (FINSIA) event.
In its wrap of the Q&amp;A session, ANZ reported that Lowe “did not appear overly worried about relatively low interest rates reigniting a housing boom given household appetite for debt is relatively low, although the RBA will continue to monitor the housing market closely”.
Lowe said that despite the unemployment rate remaining between 5% and 5.25% over the last two years the labour market had weakened in the past months, with only modest aggregate employment growth, a decline in average hours worked, and a decline in the employment-to-population ratio.
He said the softer global outlook and this weaker labour market, combined with a contained inflation outlook, was behind the RBA’s October decision to set monetary policy to be “a little more accommodative than it had been”.
In his speech Lowe acknowledged that the RBA has to focus on “aggregate outcomes” but said the bank also tried to understand “what is going on beneath these aggregates, and how people's lives are being affected”.
In this regard he noted that the construction sector is one two industries (the other being public administration) that stand out as having “particularly weak employment growth over recent times.
“According to the ABS, there has been a net decline in [construction] employment of 70,000 over the past 12 months.
<img src="/images/stories/2012/10/absoct10.gif">
“Activity in important parts of the industry – including in house building and commercial construction – remains subdued, as does the immediate outlook, and this has led to a fair amount of job shedding,’” he said.
Lowe also said there was a possible link between the decline in employment participation and recent fall in demand for construction workers.
“There has been a large decline in the number of people who identify themselves as being self-employed and many of these worked in the construction industry.
“This weakness in the construction sector, particularly of new homes, has been one of the bigger surprises in the economic outcomes over recent times. Looking forward, a pick-up in construction activity is one of the factors that could provide an offset to the eventual moderation in the current very high level of investment in the resources sector. A pick-up in other forms of investment could also play this role.”
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Rising rental yields to draw investors back into housing market: RBA deputy governor Philip Lowe

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Mining tycoon Nathan Tinkler has reportedly allowed a $37?million low-rise Brisbane office acquisition to lapse.
The 5,500-square-metre building overlooking the Brisbane River is back on the market through Jones Lang LaSalle agents Seb Turnbull and Geoff McIntyre, who are seeking offers by November 1.
Its fully leased net income is given as $3,605,005.
In March the Brisbane Courier Mail wrote the sale had <a href="https://www.couriermail.com.au/realestate/brisbane-cbd-property-market-on-the-move-again/story-e6frequ6-1226313798696" target="_blank">gone unconditional</a>, with a scheduled July settlement.
The five-level office comes with ground-floor plaza and two basement car parking levels. The  building was constructed in 1990 by Kevin Seymour and last traded in 2004 when bought by Bramley Properties.
The Australian Financial Review has reported that the Linc Energy founder Peter Bond came close to buying the building for about $37?million last year.
<img src="/images/stories/2012/10/tinkler.jpg">
The unimproved capital value of the site (freehold only), was assessed by the Queensland State Government Office of State Revenue as $12 million as at June 30, 2011 and at $8.3 million as at 30 June 2012.
It's been reported Tinkler, who owns a smaller office building on Queen Street bought through Savills' Stuart Moody for $7.7 million in 2010, was planning an expansion move possibly in anticipation of a Whitehaven takeover.
The billionaire's finances – especially the Tinker-aligned developer Buildev Group – have been under scrutiny since his attempted $5.25 billion bid for Whitehaven Coal collapsed due to a lack of funding.
The Tinkler camp has declined to comment on property matters, including the court case where Mirvac is seeking to secure Tinkler's $17 million payment for a Newcastle industrial land purchase.
Mirvac and Tinkler are embroiled in the NSW Supreme Court legal stoush over an agreement to buy the land in the NSW Hunter region.
The Mirvac company, Domaine Steel, has already successfully sued two of Tinkler's companies, Ocean Street Holdings and guarantor Buildev Group, in the NSW Supreme Court after they failed to proceed with the purchase agreement.
Tinkler was given a court-ordered deadline to pay Mirvac around $17 million by September 1.
But after the deadline was missed, <a href="https://www.propertyobserver.com.au/industrial/nathan-tinkler-vs-mirvac-scheduled-for-october-showdown/2012091856642" target="_blank">Mirvac lodged a contempt of court order to sequester Tinkler's assets</a>.
The matter was heard on directions in the NSW Supreme Court today with a hearing date set for October 23 and 24 before Justice Michael Slattery.
its the transaction when contacted yesterday. McGees Property, which was brokering the transaction, declined to comment, but it is believed the agency is taking legal advice in relation to the deal.
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jchancellor-FAypfDUnLy

Nathan Tinkler lets another property purchase lapse

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The property market tends to be seasonal, with spring typically the busiest period of the year. This year in Brunswick we noticed a new trend in buyers trying to beat the spring rush, with more emerging in August than ever before. This early arrival could be a signal of improving confidence, but it’s also a reflection of people – sellers and buyers alike – realising they’ve waited long enough to make that move.
So for us, spring has sprung early. In August we sold properties that were passed in during the earlier winter months or even six months ago. What’s happened is that sellers and buyers are finally aligning in their expectations, and deals are being negotiated now that weren’t possible before. For example, earlier in the year, two-bedroom single-fronted homes in Brunswick weren’t selling because sellers were still expecting prices in the early $600,000s – values achieved at the peak of the property cycle. Today, sellers’ expectations are becoming more realistic with current market conditions, with these properties, including this one at <a href="https://www.hockingstuart.com.au/?autoSearch=1&amp;OID=4504309&amp;Con=S" target="_blank">97 Glenlyon Road</a>, now sitting around the $550,000 mark and within reach in particular for first-home buyers.
Interest rate cuts are also fueling activity in the area, with first-home buyers out in full force as a result of increasing affordability. Just recently, we sold an apartment in Blyth Street, Brunswick, that had so much competition there was a crowd of disappointed bidders post auction. Inspired by the demand, another owner in the same complex decided to spontaneously sell his property on the same day.
Next-home buyers are another massive market in our area, particularly with families looking to upsize. Brunswick is a more affordable alternative to its neighbouring suburbs of North Fitzroy and North Carlton, so properties like <a href="https://www.hockingstuart.com.au/?autoSearch=1&amp;OID=4427047&amp;Con=S" target="_blank">7 Garden Street</a> are great options for these buyers – it’s located right on the city fringe and within Brunswick’s main shopping and eating districts, Sydney Road and Lygon Street.
 
<hr class="system-pagebreak">
 
Another trend we’re seeing is the emergence of the “discerning” buyer. In a buoyant market, buyers are quick to enter the market for fear of missing out. In today's conditions, people are no longer freely buying, and instead taking the time to determine whether the property is really what they’re looking for – unless it fulfills 85% of their criteria, they’re happy to wait. This does mean, though, that when a quality property comes on the books, it’s immediately snapped up.
Accordingly, a trend gaining traction in the Brunswick market is properties selling before auction. Given the demand for good quality properties in the area, buyers are happy to cough up the cash early to secure their ideal home, and vendors are also coming to the party now their expectations have adjusted to market conditions.
Having said that, the auction market in Brunswick is still going strong, with hockingstuart’s clearance rates in the area sitting around 80%. At the same time, private sales are becoming increasingly popular, some taking just one to two weeks to complete – recently we even sold a two-bedroom warehouse conversion in Brunswick in just three days.
This spring, we’re expecting the last weekend in October to be a ripper, with the highest amount of properties up for auction in Melbourne since 2010. Longer term, the market will remain steady and statewide clearance rates will stay around 60 to 65% thanks to successive interest rate cuts.
Brunswick buyers will remain in the driving seat, with growing families taking advantage of current conditions. As a result of a fluctuating share market, investor activity will also stay strong as they look to add real estate to their investment portfolios.
After holding back for nearly two years, Melburnians finally have the confidence to go ahead with important life decisions and the market is starting to see a gradual but sure spike in activity – we expect it to be no different in Brunswick, with many buyers and sellers already ahead of the game.
Robert Elsom has 15 years' experience in real estate and is director of <a href="https://www.hockingstuart.com.au/" target="_blank">hockingstuart </a>Carlton, Brunswick, North Melbourne and Northcote.
What do you think spring holds for the property market? <a href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey" target="_blank">Complete our five-minute survey for your chance to win an iPhone 5.</a>
For more on auctions and the spring selling season, <a href="http://propertyobserver.com.au/ebooks/free-ebook-auction-or-private-treaty-plus-9-spring-2012-selling-tips" target="_blank">download our free eBook.</a>
 
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Spring buyers get in early in Brunswick: Hockingstuart

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If there is one thing we have learned in 2012, it is that political parties from both sides will say and do anything to win an election, no matter what the consequences. If we are to learn just one thing from the global financial crisis, we must focus on one word – DEBT. What made the GFC even more contagious was government debt. So why do households and businesses react differently to governments when confronted with the same financial woes?
<a title="The debt we can’t pay is growing" href="https://www.businessspectator.com.au/bs.nsf/Article/David-Murray-Future-Fund-super-superannuation-Gill-pd20121004-YQUDS?OpenDocument&amp;src=sph" target="_blank">The debt we can’t pay is growing</a> a fascinating insight from Rob Burgess on Business Spectator, where he correctly refers not to an economist or business writer but the former head of the Future Fund, David Murray. Mindful of the fact that Commonwealth net debt is only 9.6% of GDP, combined state and federal debt is now around 29% of GDP. This quickly brought a rebuke from <a title=" Prime Minister - Comparing the Greek economy to Australia is ‘absurd’." href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2012-10-04/comparing-greek-economy-to-australia27s-is-27absurd27/4295674" target="_blank">Prime Minister – Comparing the Greek economy to Australia is ‘absurd’.</a>
Enter David Murray again, who believes “it is easily possible for Australia to suffer an economic downturn similar in magnitude to the one experienced by Greece”. The problem for the Gillard government is that its own debt continues to far exceed income and ignorantly, it refuses to cut its own overheads. On the other hand, businesses have cut costs, which explains why tax receipts are down and Australia finds itself in a state of hypocrisy. Let’s join those dots again.
This week we saw the Reserve Bank of Australia (RBA) lower the cash rate to 3.25% from 3.5%. A call to the cavalry – let the real estate market steer the economy to bigger and better things. Although – <a title="The RBA’s interest rate kryptonite" href="https://www.businessspectator.com.au/bs.nsf/Article/rates-RBA-China-slowdown-interest-Stevens-pd20121003-YPSKB?OpenDocument&amp;src=sph&amp;src=rot" target="_blank">The RBA’s interest rate kryptonite</a> “it is now clear that the Chinese comeback that prompted the RBA to raise the interest rate six times between October 2009 and May 2010, and then again in November 2010, was unsustainable. That 1.75 percentage point increase in the cash rate in 2009 – 10, while the Fed, the Bank of England, and the ECB and the Bank of Japan all left their rates on hold, helped lift the Australian dollar from 65 cents in early 2009 to 110 cents last year. The increase in lending rates for households and businesses knocked the stuffing out of the Australian economy”.
So here we go again, throw more lollies onto the highway and see who runs out to grab them.
<img src="/images/stories/2012/10/simeonoct91.jpg" width="470">
The correct unemployment rate in <a target="_blank" href="https://www.whocrashedtheeconomy.com/blog/2012/10/unemployment-hits-10/" title="Australia unemployment hits 10% ">Australia unemployment hits 10%, </a>which is almost double the Australian Bureau of Statistics’ (ABS) unemployment rate. The irony is, that businesses have corrected their profitability yet the federal government refuses to move with the times. This would also explain why the newly elected Queensland, NSW and Victoria governments are tightening their belts – <a target="_blank" href="https://www.businessspectator.com.au/bs.nsf/Article/States-face-GST-squeeze-SP-pd20121004-YQU6A?OpenDocument&amp;src=hp30" title="States face GST squeeze: S&amp;P.">States face GST squeeze: S&amp;P.</a> <img src="/images/stories/2012/10/simeonoct92.jpg" width="470">
If the federal government were half smart (and our pollies are not) it would immediately bring GST into online sales above $50 (presently above $1,000). It won’t happen because the federal government is more concerned about losing votes with an election looming. When the GST was introduced in 2000 computers (online) were not even a consideration. Times have changed, yet our federal government won’t change!
The good news for vendors on the home front as our markets move from a purchasers’ market to a vendors’ market. Certainly another cash rate reduction will only further ignite the property markets. Having said that <a title="rate cuts shows Reserve Bank’s sober view of global economy" href="https://www.smh.com.au/business/rate-cut-shows-reserve-banks-sober-view-of-global-economy-20121002-26xdr" target="_blank">rate cuts shows Reserve Bank’s sober view of global economy</a> although it must be noted <a title="lower rates risk fuelling bubbles: ANZ" href="https://www.smh.com.au/business/the-economy/lower-rates-risk-fuelling-bubbles-anz-20121004-270qb" target="_blank">lower rates risk fuelling bubbles: ANZ</a> – a possibility, however, a tad early to call.
I believe our market is too smart to fall into that trap.
Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" target="_blank">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 title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank">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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RBA's rate cut a call to the real estate cavalry

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ANZ’s mobile lending division has relocated to a 95.85-square-metre office in the Sydney CBD at a gross rental of $450 per square metre per annum plus GST.
The five-year lease at level 4, 36 Carrington Street, was negotiated by Ray White Commercial office leasing director John Skufris.
ANZ mobile lenders travel to borrowers homes to provide information about the bank’s home loans and packages and help borrowers with their mortgage applications.
The building, formerly known as Korean Air House, is a 10-storey office block with ground-floor retail and basement parking for 12 cars.
<img src="/images/stories/2012/10/anzlend.jpg">
It is located near the Menzies Hotel above Wynyard train station and is directly opposite Wynyard Park.
Skufris says the new office offers "genuine convenience to major bus and rail interchanges, the Met Centre and Martin Place".
Other tenants in the building include wine retailer Vintage Cellars, Tourism Ireland and Godfrey Pembroke financial consultants.
There is now only one remaining whole floor measuring 257.5 square metres available for lease at 36 Carrington Street.
Level 8 at 36 Carrington St is undergoing refurbishment and will soon be offer for lease.
“The asking rent will be $475 per sqm per annum,” says Skufris.
According to the Savills third-quarter Sydney office report, B-grade gross office rents range from $550 to $730 per square metre, with A-grade rents between $680 and $1,005 and premium CBD office space available at $900 to $1,470 per square metre.
Recent Sydney CBD leasing deals include the Energy and Water Ombudsman leasing 1,436 square metres of office space at 133 Castlereagh Street at net rent of $550 per square metre.
The University of Sydney leased 1,714 square metres of space in the same building at net rent of $580 per square metre.
Sydney CBD vacancy rates contracted by 1.5 percentage point contraction from 9.7% in January to 8.2% in July – the largest decline of all CBD markets over this period, according to the most recent Property Council of Australia office  report.
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ANZ Mobile Lending relocates in Sydney CBD

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Having been involved with both commercial and residential property over the years, it's always interesting to get some feedback directly from investors.
It is particularly interesting to hear from those who have made the transition from residential to commercial property.
Here are the reasons why commercial can be a better investment:
Reason #1: Longer leases
Quite often, residential tenancies will be on a month-by-month basis, maybe six months, sometimes for a year.
Commercial properties will tend to lease for between three and five years, and often for longer. That means you have fewer tenancy changes, and a far more predictable income stream.
Reason #2: Greater security
When residential tenants want to exit a 12-month lease early, they just need to find a suitable substitute tenant, and simply transfer the lease across to them.
This new tenant then becomes responsible for the rental for the remainder of the lease.
Commercial tenants are running a business from your property. And whenever they sell their business, they also require your approval to "assign" the lease.
But here's the difference: If the new commercial tenant defaults in paying the rental, you also have recourse to the previous tenant as well — because commercial leases are business contracts enforceable by law.
Reason #3: Commercial tenants pay outgoings
Typically, residential properties will provide you with a 5% gross rental return.
From this, you need to pay the rates and taxes, insurance, maintenance and so on — leaving you with about a 3.5% net return at the end of the year.
Depending upon what (and where) they are, commercial properties will generate a 5% to 9% rental return.
However, commercial tenants are also required to pay the various building outgoings on top of their rental — making this a true net rental return to you.
Reason #4: Commercial tenants operate a business
If the toilet stops working in an apartment, the tenant asks you to send round a plumber. But commercial tenants quickly attend to the problem themselves, so as not to disrupt their business.
Furthermore, the overall appearance of the property becomes a reflection on them.
Therefore, whether the lease requires it or not, most commercial tenants will regularly repair and repaint your property in order to maintain a good corporate image.
Reason #5: Payment certainty
Most residential properties are rented by individuals. Therefore the rent is generally paid in cash or by personal cheque. And this can often vary in its timing.
Because they are running a business, commercial tenants consider rent as simply another regular expense each month. And generally, this gets set up as an automatic bank transfer – and this can be specified as such in the lease.
Bottom line: As a residential investor, you find yourself having to deal with the vagaries of individual people.
However, as a commercial investor, you tend to enjoy a more predictable long-term relationship with your tenants based upon a proper business footing.
Doesn't that sound like a far better arrangement?
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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Five reasons why serious property investors prefer commercial over residential: Chris Lang

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The challenge posed by online retailing may start to impact on the tenancy mix in the Melbourne CBD, according to property valuation firm Herron Todd White.
In its October commercial property update, HTW notes a “more recent trend has emerged whereby clothing and fashion retailers are being replaced by food stores”.
It cites as on example Malaysian restaurant chain Petaling Street replacing Jays Jays clothing store as the tenant at 162 Swanston Street. Recent Swanston Street leases have been negotiated at around $1,600 per square metre.
The 110-square-metre shop next door at 160 Swanston Street, which formerly housed street wear retailer Crossover, is now vacant and also being marketed with food tenants in mind, including "the opportunity for kerb-side seating subject to planning approval". It is being marketed by Ben Stanley and Tom Ryan of Allard Shelton.
Another example is the Icey Dessert Café, which replaced Shibuya Fashion as the tenant at 231 Elizabeth Street, a 104-square-metre shop. Shops nearby on Elizabeth Street have leased for around $2,800 per square metre recently.
In its July 2012 Melbourne CBD retail report Knight Frank reported that around 30% of shops are leased to food businesses, almost on a par with those leased to clothes and soft goods retailers.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/kfoct10.gif"><img src="/images/stories/2012/10/kfoct10thumb.gif"></a>
Knight Frank also notes in this report that fashion and clothing stores are being replaced by “casual food concept” stores such as cafes.
The report also recorded a small increase in vacancies from 2.1% in December 2001 to 2.4% as of June 2012.
According to Knight Frank, "super-prime" rents on Bourke Street Mall range from $7,500 per square metre to $10,000 per square metre.
Prime retail rents range between $2,500 and $5,000 per square metre, while secondary retail rents range between $1,000 and $1,400 per square metre.
In its October report, HTW says that since the start of 2011 the Melbourne retail trading market appears to be undergoing a difficult period.
“Retail spending statistics supplied by the ABS suggests that retail spending is volatile and has been growing below trend for some time.
“Slowing growth in retail spending limits the rental increases payable by tenants and results in increasing vacancy rates and declining retail property values.
However, despite the uncertain retail environment, HTW says the higher vacancy rates have little effect on prime retail areas within the Melbourne CBD.
“Retail strips such as Bourke Street, Swanston Street and Elizabeth Street still have strong investor interest and remain highly sought after.
“It is anticipated that rental rates will remain relatively soft for the coming year due to the marginal increase in empty retail spaces.”
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