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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

<html><body>Despite the federal government’s decision to axe the $1 billion Green Building Fund incentive, the value and benefit of improving NABERS (National Australian Built Environment Rating System) rating and energy consumption remains. Fears of property developers that withdrawal of the incentives associated with the scheme would slow the growth in the sector and result in environmental works slowing or ceasing altogether have proven unfounded, at least in Centuria’s case.
At the time the incentives provided by the fund were withdrawn there was considerable talk about the negative impacts such as unexpected costs and a danger that Australia would start to go backwards in its environmental building performance at precisely the time when energy costs are becoming an increasing issue for businesses.
At Centuria we have taken a longer-term view. While the loss of the benefits was not welcome, our considered decision has been that the long-term benefits of making sure the buildings we develop and manage are subject to continual environmental upgrades most definitely outweigh the short-term costs of doing the work.
There are a number of examples of commercial properties in Centuria’s portfolio currently undergoing environmental upgrades.
These followed outstanding results from a major upgrade of 607 St Kilda Road in Melbourne, including the building’s air-conditioning, controls, boilers and lighting.
By March this year, the building’s electricity consumption was down 56%, with its NABERS energy rating up from zero to 2.5, and on track to ultimately achieve four stars. Less than half of the $750,000 overall project cost was covered by the Green Building Fund.
Other upgrades currently underway are:
<ul>
<li>improving the NABERS rating at 87 Mitchell Street, Darwin from four to 4.5 following a BMS, lighting, and lift upgrade, with estimated reduction to the building’s energy costs of $52,000 p.a. </li>
<li>upgrades at 441 St Kilda Road, Melbourne, which are expected to improve the rating from 3.5 to 4.5.</li>
<li>improving the zero rating at 200 Creek Street, Brisbane, with a four-star target following upgrades to the BMS, air-conditioning and lighting, which are expected to result in an energy saving of $48,000 pa.</li>
</ul>
Centuria recognises the importance of improving the environmental performance of its buildings to create long-term operational savings and potential increases in yield.
Office buildings with strong sustainability attributes such as higher NABERS ratings tend to have stronger capital growth prospects, thereby producing greater returns for our investors.
The fact that we’re at a point in the 21st century when we have the knowledge and information we need to make better decisions about how we affect the environment means that it’s incumbent on us to do so.”
Jason Huljich is CEO of unlisted commercial property specialist <a href="https://www.centuria.com.au/property/" target="_blank">Centuria Property Funds</a>
</body></html>

jhuljich-tfSn8wxrPb

Greener buildings produce strong investor returns and capital growth: Jason Huljich

<html><body>
A newly renovated corner retail property on Swan Street in Richmond that would suit a cafe has been listed for sale with an asking price of at $655,000 plus GST.
<img src="/images/stories/2012/10/swanst.jpg">
The property would suit a self-managed super fund investor or a cafe operator who wishes to own his or her own premises.
The 70-square-metre property at 255 Swan Street on the north-east corner with Mary Street has 5.6 metres of street frontage and also features a small timber deck area on Mary Street side with bifold windows opening on to the street
White says there is an opportunity for alfresco outdoor facilities with consent for tables and chairs on the Swan and Mary street pavements on obtaining the relevant permits.
“The property is also adjoined by an architecturally designed residential development at the rear and there is an established residential area further north from Swan Street," says White.
The vacant property is also available for lease at a net rent of $36,500, which would equate to a yield of around 5.5%.
It previously was the premises for a take-away business.
Recent retail premises on Swan Street include the 204-square-metre premises of Angus antique furniture just a few shops down from the vacant corner café, which sold for $1 million in March last year on a yield of around 3.7% through Tom Maule and Larry Takis of Teska Carson Richmond.
Swan Street runs perpendicular to Punt Road from the Royal Botanical Gardens to Park Grove.
Other nearby retail businesses on Swan Street include Greek Restaurant Salona (260A Swan Street) Lily and Weasel, a home, gift and accessories boutique (173 Swan Street), auction house Swan Street Sales (365 Swan Street) and the Swan Street veterinary clinic (445 Swan Street).
The corner property is for sale or lease with immediate occupancy.
</body></html>

lschlesinger-FZcF9M3vE6

Alfresco café dining premises in Richmond listed at $655,000

<html><body>
Property values have taken a well-documented slide lately, yet construction costs are still relatively high.
Will they ever head south, the way some sales contracts have?
Demand for domestic construction has cooled a bit in the past few years, but excess workers have been absorbed by stellar projects in commercial construction and mining.
As a result, we haven’t really seen widespread discounting of construction labour, and we certainly haven’t seen discounted building materials – although fixtures and fittings imported from China are more affordable than ever.
Depending on your level of construction expertise, you may have heard of a costs guide called Rawlinsons. It’s an annual bible with quarterly updates and gives an accurate reflection of what’s going on with the costs of all things construction.
You can get bogged down in the specifics – if you want to know how much it’ll cost to lay a 22mm terrazzo floor in Perth, the Rawlinsons guide will tell you. Need to price a partial demolition in Melbourne? Rawlinsons knows the ins and outs of that, too. Building a bank in Adelaide? A pub in Darwin? Rawlinsons will tell you what to budget.
The 2012 guide shows that after big jumps in the early 2000s, construction costs have either plateaued or increased very slightly in the past three years – they haven’t gone backwards.
So how much does it cost to build a house, right now? Or an apartment?
Let’s start with a small, basic house – a project home, if you will. A stock standard brick veneer home of 90-110 square metres will set you back anywhere from $825 per square metre in Adelaide, or $1,280 per square metre in Hobart. In Brisbane and Sydney you can expect costs of around $1,050, while Melbourne is about $1,100 per square metre.


<hr class="system-pagebreak">
A bit further up the chain, a full brick prestige home between 150-350 square metres is again cheapest to build in Adelaide, with costs ranging from $2,080 per square metre. Brisbane is the most expensive capital in which to build to prestige standard, up to $3,240 per square metre.
Interestingly, the pricing guide for pre-fabricated housing of a medium finish is all around the $1,200 per square metre mark – more than the most expensive project home but considerably cheaper than a similar prestige home. There’s certainly a place in the market for pre-fab housing; consistency of costs is another attraction.
Moving into apartments (so to speak,) and the costs are higher than for pre-fab housing, but generally lower than for a traditional house.
The cost of a medium-finish one- or two-bedroom apartment with no balcony or lift starts at $1,580 per square metre in Adelaide and Brisbane, ranging all the way up to $2,090 in Hobart. Perth’s costs are hovering around the $1,700 mark, Sydney around $1,800 and Melbourne up around $1,900. Then you’ve got to add up to $780 per square metre for a balcony.
It all adds up, but remember – most apartments are considerably smaller per square metre than your average house, so they’re cheaper overall.
Townhouses of a medium standard finish are about the same or marginally cheaper to build than apartments, starting from $1,365 in Adelaide and ranging up to $2,150 in Hobart. Brisbane’s rate is around the $1,600 mark, Perth is around $1,700 while Sydney and Melbourne are both about $1,750.
Rawlinsons’ last quarterly update in July recommended adding an additional 1% on top of all current cost guides – further evidence that construction, just like property, is making a small step back into the black. Another tiny win for confidence!
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.com.au/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
</body></html>

michaelmatusik-49YzLvdmNv

Why construction costs are still high when property values are falling: Michael Matusik

<html><body>
A four-bedroom McMahons Point house is this week's top sale, according to RP Data, although it sold for just $2.4 million.
It sold significantly above its expectations, having been listed in mid-September with a price guide over $1.9 million. 
Selling agent Annika Robins of McGrath says there were 12 bidders at the auction, pushing the price well over its $2 million reserve. It was a deceased estate sale and was the first time the house had ever been on the market.
The property has expansive views over Berry Bay to Balls Head.
Eight of the top 10 sales of the week are in NSW, with two in Victoria.
1. <a href="https://www.myrp.com.au/n/5-commodore-crescent-mcmahons-point-nsw-2060/myrp-490?propertyId=4167447" target="_blank">5 Commodore Crescent, McMahons Point, NSW, 2060</a>, four-bedroom house, sold at auction on October 6 by McGrath Estate Agents for $2.4 million
2. <a href="https://www.myrp.com.au/n/87-culver-street-monterey-nsw-2217/myrp-490?propertyId=4399319" target="_blank">87 Culver Street, Monterey, NSW, 2217</a>, five-bedroom house, sold at auction on October 6 by Raine &amp; Horne Sans Souci for $1.81 million
3. <a href="https://www.myrp.com.au/n/24-thoresby-grove-ivanhoe-vic-3079/myrp-490?propertyId=11299599" target="_blank">24 Thoresby Grove, Ivanhoe, VIC, 3079</a>, four-bedroom house, sold at auction on October 6 by Miles Real Estate for $1.605 million
4. <a href="https://www.myrp.com.au/n/80-sunnybrook-drive-wheelers-hill-vic-3150/myrp-490?propertyId=13808159" target="_blank">80 Sunnybrook Drive, Wheelers Hill, VIC, 3150</a>, three-bedroom house, sold at auction on October 6 by Ray White Real Estate Glen Waverley for $1.54 million
5. 6 Roma Street, North Epping, NSW, 2121, four-bedroom house, sold prior to auction on October 6 by McGrath Estate Agents for $1.5 million
6. <a href="https://www.myrp.com.au/n/20-fewings-street-clovelly-nsw-2031/myrp-490?propertyId=1863329" target="_blank">20 Fewings Street, Clovelly, NSW, 2031</a>, three-bedroom house, sold at auction on October 2 by Ke3 Property for $1.455 million
7. <a href="https://www.myrp.com.au/n/62-lancaster-road-dover-heights-nsw-2030/myrp-490?propertyId=2120867" target="_blank">62 Lancaster Road, Dover Heights, NSW, 2030</a>, three-bedroom house, sold at auction on October 6 by Laing + Simmons Double Bay for $1.425 million
8. <a href="https://www.myrp.com.au/n/179-wilson-street-newtown-nsw-2042/myrp-490?propertyId=4897135" target="_blank">179 Wilson Street, Newtown, NSW, 2042</a>, three-bedroom house, sold at auction on October 6 by Ray White Surry Hills / Alexandria for $1.36 million
9. <a href="https://www.myrp.com.au/n/64-redmond-street-leichhardt-nsw-2040/myrp-490?propertyId=3676180" target="_blank">64 Redmond Street, Leichhardt, NSW, 2040</a>, three-bedroom house, sold at auction on October 6 by McGrath Estate Agents for $1.262 million
10. <a href="https://www.myrp.com.au/n/38-yeend-street-merrylands-nsw-2160/myrp-490?propertyId=4260191" target="_blank">38 Yeend Street, Merrylands, NSW, 2160</a>, six-bedroom house, sold prior to auction on October 6 by McGrath Estate Agents for $1.25 million 
</body></html>

cknowlton-QnEa6ntUYP

No super-prestige results as $2.4 million McMahons Point house takes out top sale of the week: RP Data

<html><body>
The retail property picture is improving for landlords that have a tenant mix favouring large retailers and chain stores, rather than boutique operators.
The graph below, prepared by Westpac, shows how the two opposite ends of the retail market (in terms of size and reach) are diverging on retail sales following the release of August retail sales data last week.
Click to enlarge
<img src="/images/stories/2012/10/westpacoct10thumb.gif">
“Small retailers have borne the brunt of the recent softening in sales with a 0.7% decline in August following July's 1.4% fall," noted Westpac senior economist Matthew Hassan.
“Large retailers recorded a milder 0.5% dip in July and a 0.8% rise in August. Much of the gap likely reflects the resilience in basic food retail, which is dominated by the big supermarket chains, and the rebound in department store sales in August.”
Overall retail sales remained flat in August, up just 0.2% after a 0.8% decline in July, a 1.2% rise in June and a 0.6% rise in May.
</body></html>

Chart of the week: Why large retailers and chain stores can pay their rents

<html><body>
Competition between Wesfarmer’s Bunnings and Woolworth’s Masters for the DIY market will deliver benefits for the south-east Queensland bulky goods property sector, according to the latest Midwood Report on the Queensland property market.
"The bulky good sector is set to begin its recovery this year," says the August quarter Midwood Report, authored by Bill Morris.
Both Bunnings and Masters plan to open around a dozen stores throughout south-east Queensland over 2012 and 2013.
Masters has plans for stores at Bremer, North Lakes, Upper Coomera and Stafford, while Bunnings has stores underway or planned for Arundel, Oxenford and Newstead.
Midwood also notes a number of other major retailers have plans to open bulky goods stores in the region in 2012 and 2013.
These include American bulk-buying chain Costco, which is looking to open its forth Australian store in Brisbane at Stockland North Lakes Business Park.
“Preliminary planning approval has been given for a 14,000-square-metre area with room for 750 car spaces on the seven-hectare space,” says the Midwood Report.
IKEA also announced plans to build its second superstore in Brisbane at the Westfield precinct at North Lakes.
"However, they are awaiting approval from the council," says Midwood.
A 27,660-square-metre Harvey Norman store is to be completed in Maroochydore on the Sunshine Coast, and a 10,451-square-metre Gold Coast Homemaker Centre on Bundall Road has been has been proposed for completion in late 2013.
Recent bulky good store sales include a showroom on Old Pacific Highway in Oxenford, which sold for $4.7 million in June, with the sale negotiated by Pat Cavanagh and James Crawford from Colliers International Gold Coast.
The 1,700-square-metre building on a 3,853-square-metre site, anchored tenanted by Reece Plumbing and Ideal Electrical, last sold for $1.7 million in 2004, according to RP Data records.
The improved outlook for the bulky goods sector is not just confined to south-east Queensland, with A-REIT Charter Hall currently negotiating to buy a $230 million portfolio of Bunnings Warehouse properties across Australia in a sale-and-lease back deal.
Charter Hall may roll the Bunnings stores into a new unlisted fund with the backing of a major pension fund, reported the Australian Financial Review.
In its September spring forecasting report, BIS Shrapnel forecast an 18% rise in  non-residential commencements in Queensland in 2012-13 led by a 37% increase in the value of warehouse commencements with four 40,000-square-metre developments currently anticipated to start.
</body></html>

DIY wars good news for south-eat Queensland bulky goods property sector: Midwood

<html><body>
It appears Federal Treasurer Wayne Swan has taken RBA governor Glenn Steven’s “glass half full” speech to heart, finding something positive in the International Monetary Fund’s (IMF) lastest downgrade of global growth and risk of recession warning.
<a href="https://twitter.com/SwannyDPM" target="_blank"><img src="/images/stories/2012/10/swantweet.jpg"></a>
Australia ranked the 15th  biggest economy in the world in 2007 when Labor came to power.
In its <a href="https://www.propertyobserver.com.au/economy/imf-vindicates-rba-october-rate-cut-as-it-warns-of-one-in-six-chance-of-recession-in-advanced-economies/2012100957047" target="_blank">October World Economic outlook, the IMF</a> warned there was a one in six chance (17%) of a recession in advanced economies, while also reporting that Chinese economic growth slowing to around 7% in the first half of 2012.
The IMF has cut its global GDP forecast by 0.2 percentage points to 3.3% for 2012 and by 0.3 percentage points to 3.5% in 2013.
Forecasted growth for advanced economies in 2013 has been cut from 2% to 1.5%.
</body></html>

Tweet of the day: Australia is punching above its weight economically, says Wayne Swan

<html><body>
The International Monetary Fund (IMF) says there is a one in six chance (17%) of a recession in advanced economies, with Chinese economic growth slowing to around 7% in the first half of 2012.
The warning, contained in its October 2012 World Economic Outlook report, vindicates the decision by the Reserve Bank to reduce the cash rate in October primarily due to global risks and concerns expressed by RBA governor Glenn Stevens in his monetary policy decision statement that growth in Asia "is being dampened by the more moderate Chinese expansion".
“There is now a one in six chance of global growth falling below 2%, which would be consistent with a recession in advanced economies and low growth in emerging market and developing economies," says the IMF, which has cut its global GDP forecast by 0.2 percentage points to 3.3% for 2012 and by 0.3 percentage points to 3.5% in 2013.
The IMF reports that the global recovery has continued “but it has weakened”.
“In advanced economies, growth is now too low to make a substantial dent in unemployment. And in major emerging market economies, growth that had been strong earlier has also decreased.
“Relative to our April 2012 forecasts, our forecasts for 2013 growth have been revised from 2% down to 1.5% for advanced economies, and from 6% down to 5.6% for emerging market and developing economies.
Australia's outlook is better than most advanced economies, with the IMF expecting Australian economic growth of 3.3% this year and 3% growth in 2013.
The IMF notes monetary policy has been easing and will "remain very accommodative", with "various advanced economies recently cut policy rates (Australia, Czech Republic, Israel, Korea) or postponed rate hikes".
In line with the RBA concerns, the IMF warns that slowing growth in China “has affected activity in the rest of Asia, a consequence of the deepening of linkages throughout the region in the past decade”.
The IMF forecasts Chinese growth to slow to 7.8% in 2012 and then pick up to 8.2% in 2013. The Chinese economy grew by 9.2% in 2011.
“Growth is estimated to have weakened appreciably in developing Asia, to less than 7% in the first half of 2012, as activity in China slowed sharply, owing to a tightening in credit conditions (in response to threats of a real estate bubble), a return to a more sustainable pace of public investment, and weaker external demand,” says the IMF.
The main impact of a global recession on Australia would be a further sharp fall in commodity prices, a decline in real national income and an increase in unemployment with the IMF noting that “in Australia, continued strong mining activity and related investment have also supported growth”.
Olivier Blanchard, economic counsellor at the IMF, warns that the recovery has “suffered new setbacks, and uncertainty weighs heavily on the outlook”.
“A key reason is that policies in the major advanced economies have not rebuilt confidence in medium-term prospects."
The IMF notes that there has been a clear change in attitudes in the key eurozone area, "where new architecture is being put in place”.
“The lessons of the past few years are now clear. Euro area countries can be hit by strong, country-specific, adverse shocks.
“Weak banks can considerably amplify the adverse effects of such shocks. And, if it looks like the sovereign itself might be in trouble, sovereign-bank interactions can further worsen the outcome.”
The IMF says its lower forecast rest on “critical policy action in the euro area and the United States, and it is very difficult to estimate the probability that this action will materialise”.
</body></html>

IMF vindicates RBA October rate cut as it warns of one-in-six chance of recession in advanced economies

<html><body>
Buyers’ agents have cautioned first-home buyers that viewing too many properties can create confusion rather than help them make the right first purchase.
This follows the latest Mortgage Choice First Homeowner Survey, which found that on average first-home buyers look at 21 properties as part of the home-buying process.
Almost one-quarter (23%) of respondents said they had looked at somewhere between 21 and 50 houses before making a purchase, and 8% looked at more than 50 properties.
The survey also found that more than four out of five first-home buyers (82.3%) said they had no regrets about their final choice, with those in WA the most satisfied (90%) and those in Victoria the least satisfied (79.4%).
Despite the overall high satisfaction rating, the survey found that the biggest regrets among first-home buyers was wishing they had bought a property in a different area (27% of respondents), followed by more than a quarter of first-home buyers (26%) wishing they had shopped around more for a property.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/10/fhb.gif"><img src="/images/stories/2012/10/fhbthumb.gif"></a>
One-fifth of first-home buyers wished they’d either waited until they could afford a different property closer to their idea property, bought a different property type, waited until they were in a better financial position to buy or bought a less expensive property.
Fewer than one in 10 (8.2%) expressed regret at their choice of mortgage provider.


<hr class="system-pagebreak">
Catherine Cashmore from National Property Buyers tells Property Observer it is very fine balance between viewing too few properties and too many and getting confused, which is where most first-home buyers go wrong.
“It comes down to experience, knowing the area you want to buy in and the property you want. You need to filter out the rubbish," she says.
There is some evidence for this in the survey with WA first-home buyers the most satisfied despite viewing the fewest properties on average – 17.8 compared with a national average of 21.3
Cashmore says the number one regret highlighted in the survey – first-home buyers wishing they have bought a property in a different area – is “absolutely correct”.
She says many first-home buyers fall into a trap of wanting to buy, for example, a two-bedroom apartment in South Yarra but only have $300,000 or $400,000 to spend, when they need $500,000.
“It’s a balance between the three “Ps” – price property and position.
“You usually can’t comprise on price, so you must compromise on the other two. If you want a two-bedroom apartment, you might need to be more flexible on the location."
She also says that first-home buyers have to approach their first property purchase with something of an investor’s mindset.
“It’s your first property purchase… You won’t live there you whole life.”
Paul Osborne, founder of buyers’ advocacy group Secret Agent, makes a similar point about the number of properties first-home buyers should inspect.
“In terms of amount of homes inspected.  It works a couple of ways.  Those that have purchased the first place they've seen are taking a risk, while those that look at a huge amount of homes tend to get more confused with the more they view,” he says.
Osborne says buyers his agency advises often have remorse about buying something that is too common and has limited scarcity.
“These include new construction apartments and generic housing estates,” he says.
Another regret he says first-home buyers have is buying too far out from the city.
“Buyers often have remorse about getting something bigger – but located further out.  They find they don't really need the extra space but truly value the convenience of being close to the city. “
Lastly he warns of “emotional buying”.
“Many purchasers who engaged in emotion-filled auctions in 2009 and 2010 find themselves sitting in negative equity.  Some buyers regret how they bid at auction for their property,” says Osborne.
Commenting on the findings, Mortgage Choice spokesperson Belinda Williamson says the fact that people are viewing so many properties before making a purchase is a positive – “it makes sense to invest the appropriate amount of time into researching and viewing potential properties to make sure you are happy with the final decision.”
“If home buyers spent an hour viewing each potential property, the time can quickly add up. However, the hours spent planning and properly considering all your options upfront, can save you from the heartache of making a hasty decision that can either cost you financially or leave you dissatisfied with your decision.”
</body></html>

 First-home buyers risk confusion by viewing too many properties: buyers’ agents

<html><body>
Woolworths has announced its intention to sell down 69 shopping centres currently held on its own balance sheet into a new fund that it intends to list on the Australian Securities Exchange (ASX) as a new A-REIT. The fund will be called the Shopping Centres Australasia Property Group (SCA Property Group).
The new fund will be the seventh substantial retail A-REIT listed on the exchange and will increase the value of total assets under management in the sector by 2.2%.
To fund the acquisition, SCA will conduct a capital raising of between $425 million and $506 million. The proposed raising would offer a discount to the net tangible asset backing of the new group of between 5% and 20%. The distribution yield of the proposed trust would be between 6.9% and 8.3% depending on the final price paid. This is considerably higher than the weighted average ASX retail sector distribution yield of 5.5%.
The portfolio of 55 Australian and 14 New Zealand neighbourhood, sub-regional and freestanding shopping centres is valued at A$1.4 billion. Of these, 13 properties are still under construction. The centres are currently 95% leased, including Woolworths rental guarantees, somewhat below the A-REIT sector average of 99%. Woolworths will contribute 61% of the gross rental income. The weighted average lease term of the proposed fund is 15.8 years, compared with an ASX retail sector average of approximately 7.3 years. Gearing of the proposed fund is 27%, which is in line with the ASX retail sector gearing of 29%. 
Woolworths will have no ownership of the new company, which would have a separate board and management team. 
Woolworths shareholders will have the opportunity to vote on the proposal at the its annual general meeting on November 22. Should it be given approval to proceed and should the listing application be successful, the trust would start trading on November 26.
Mark Wist is senior asset consultant at <a href="https://www.atchison.com.au/" title="Atchison Consultants" target="_blank">Atchison Consultants</a>.
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News