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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Domestic retailers may be fighting back. New figures from the Commonwealth Bank show total online retail spending remains strong, but domestic retailers are getting a bigger slice of the pie – growth is up 40% compared to international retail at just 17%.
The figures show an increasing amount of competition coming from bricks-and-mortar retailers, which have invested <a href="https://www.smartcompany.com.au/entrepreneur-watch/retailers-gst-import-hopes-will-come-to-nothing" target="_blank">millions in their multichannel strategies</a>.
CommSec chief economist Craig James says the figures show purely online players don't have the advantage they once did.
"After a year of explosive growth in 2011, the pure play online retail sales growth is converging with total online sales growth."
"This may be an early sign that the international trend of traditional 'bricks and mortar' retailers dominating the online channel is playing out in Australia."
And with the debate over online GST still raging, the CBA points out imposing GST on purchases above $100 would hit 57% of online transactions, against the current 4%.
"While GST is only one factor in Australia's higher retail prices, imposing GST on a larger proportion of transactions would help even up an otherwise unfair playing field."
The analysis is based on two million transactions taking place on the Commonwealth Bank's own credit and debit network.
They show continued strong growth among online retail, which is up 30% in the year to July 2012 at a total of $14 billion. That represents 5.4% of total online sales, with clothing now the fastest growing category.
Traditional retail trade is growing at just over 3% a year.
And while the statistics mostly confirm what the business community already knows, James says there are some key points to be taken – including that strong growth in online is continuing, with 25% of CBA customers having purchased online in the past 12 months.
And those same people have lifted their transaction amount by 22% on average, resulting in an increase in online transaction volumes of 52%.
The figures also show domestic retail is catching up, taking 60% of sales, from 55% last year, "suggesting that Australian consumers are increasingly able to satisfy their online consumption needs from local retailers".
And while sales growth may be continuing, the introduction of new online customers isn't, the CBA says, with the market now reaching a saturation point.
"We estimate that almost 50% of online spending growth is now coming from existing customers shopping more frequently online. This compares to about 33% last year."
The statistics also reveal key demographics, with the majority of purchases made by those under 45 years of age. However, the growth in transaction frequency was similar across all age groups.
Overall, James says the figures are a warning for pure play online retailers that they cannot rely on being online as a point of difference.
But he also says these <a href="https://www.smartcompany.com.au/retail/051904-harvey-norman-s-katie-page-warns-of-offshore-exodus-over-gst" target="_blank">bricks and mortar retailers moving online</a>, such as Myer and David Jones, "have to work hard to deliver a credible online offer in the short term".
"The online retail channel remains a significant issue for Australia's retailers, but the latest trends suggest the local industry is finally adapting. This should be comforting for the many retailers who now have online as a strategic goal."
"The conservative nature of Aussie consumers and the ongoing shift to online spend will continue to hurt traditional retailers," he says.
"Domestic store retailers will need to continue discounting in the current climate in order to entice customers."
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Australian retailers securing more of online retail pie: CommBank

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National luggage, leather goods and travel accessories retailer Victoria Station has pre-committed to a nine-year lease with renewal options at a $9 million office and warehouse facility at Keysborough in Melbourne’s south-east.
The facility will act as its national headquarters and distribution centre.
Due for completion by owner/developer BFD Constructions in mid-November, the 1 Atlantic Drive, building will comprise a 7,396-square-metre warehouse with a 560-square-metre office component on a 14,850-square-metre site. The deal was brokered by Savills Australia’s Joseph Catanese.
The rent is believed to be around $700,000 per annum. BFD Constructions purchased the property last month for $3.2 million.
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Luggage retailer Victoria Station signs nine-year office/warehouse lease in Melbourne suburb of Keysborough

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While the idea of an offshore marketing campaign can be appealing, there are some obstacles to avoid, so I would like to round off this topic with a check list of key points.
Experience dictates that there needs to be access to a database of strongly motivated buyers, which cannot be created overnight. This data needs to drawn from experienced buyers who are very familiar and comfortable with making early commitments to buy foreign real estate.
But clearly all of these potential buyers will have varied reasons to consider a project. Some buyers will be attracted to a particular area, for example projects near a major university, and they will be keen to secure their purchase. The needs of others may not be easy to identify, but during the course of a well-managed campaign their motivation should become more evident. At different times marketing offshore has been very popular, but the success of Australian projects varies.
Across Asia there can be support for this style of marketing, however it will typically only be of value for brand-new buildings with no prior local exposure.
When taking product into an international market like Asia, there are some key elements that have to be taken into account. The developer must allow sufficient marketing funds, have a local partner in each country and ensure that all marketing material is correctly pitched to local conditions.
It is also worth keeping in mind that the offshore buyer usually favours developers with a strong domestic track record and that develop a regular flow of projects in all market cycles.
We need to consider how the project on offer will be perceived, and generally it should be in a location close to transport links, recreation, and shopping and educational facilities.
So in summary I would suggest the following key pointers: 
<ul>
<li>The product mix taken into the markets needs to present a good range of suitable apartments, picked with key features that are in line with current buyer expectations.</li>
<li>Always keep in mind, as already noted, that offshore buyers like to have the first-release opportunity. This is one reason offshore marketing works on any scale with new product.</li>
<li>At an offshore event you need to on hand have full details covering Foreign Investment Review Board, legal, migration and finance information. This needs to be reliable detailed information or people fully versed in these area.</li>
<li>All marketing material needs to be complete and accurate, in particular floorplans, finishes and aspect and view images.</li>
<li>Buyers will also be keen to know about any fees they may have to pay, both as part of the purchase and any ongoing fees, like strata levies.</li>
<li>There should also be strong locally based support in each market.</li>
<li>One final point, if possible at any major project launch it is ideal to have a mix of local representation, with legal support as well as Australian-based sales team members. </li>
</ul>
Offshore marketing should never be seen as over-simplistic, as this is certainly not the case. Each project requires detailed planning, and market conditions and sentiment can and do shift.
Off-the-plan sales have been and are still popular, but they require a well-established foundation of local knowledge, and the buyer product match needs to be right on target. As I summarised at the start of this subject, the numbers involved are not exhaustive and this will always remain a specific marketing option.
Peter Chittenden is managing director for residential of <a target="_blank" rel="nofollow" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International.</a>
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pchittenden-eLqUUC8TWW

Obstacles to avoid when marketing a residential development offshore

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Located 40 minutes to Melbourne’s west, the satellite city of Melton has weathered the ups and downs of the property market better than most. As a result of its location and relative affordability – our median house price is half of Melbourne’s at $250,481 – Melton has remained attractive to first-home buyers, investors and renters alike.
While traditionally many Victorian suburbs record a spike in activity during  spring selling season, in Melton our market generally remains consistent throughout the year due to high supply and demand and that all-important affordability factor. So while Melton hasn’t experienced a sudden flurry of activity there has been a noticeable upswing in market confidence this spring. Improved buyer sentiment has encouraged sellers, previously hesitant to enter the market, to list their properties – but this isn’t just because spring has sprung, it’s about stronger economic conditions.
At hockingstuart Melton we’ve seen the average number of days on market drop by 30% since the start of 2012 and the number of homes we’ve sold increase by 27% from August to September.
Melton’s growth is largely due to the fact it has remained an affordable option for those looking to buy and invest. Decreasing interest rates has helped by encouraging more first-home buyers and investors into the market. Consequently, properties at the lower end of the market are proving very popular. So far this spring, homes in the $200,000 to 300,000 range have been selling exceptionally well, and we’re expecting this to be the case for <a target="_blank" href="https://www.domain.com.au/Property/For-Sale/House/VIC/Melton-West/?adid=2010041504">18 Ridgeway Drive</a>.
With the first-home bonus for newly built homes scrapped earlier this year, established properties are currently the most popular, as they’re a cheaper alternative to new homes – we recently sold this three-bedroom family home at <a target="_blank" href="https://www.realestate.com.au/property-house-vic-melton-111236091">42 Penguin Street</a> for $226,000. That said, recent trends in our market show first-time buyers prefer new homes if they can afford it, so with further interest rate cuts predicted and the resulting increase in the affordability of loans, we’ll likely see renewed demand for new homes.
 
At the same time, developers are struggling to sell homes off the plan as the market is flooded with blocks of land and house-and-land packages being offered for sale. Buyers prefer a finished home they can walk through, touch and see. For example, <a target="_blank" href="https://www.realestate.com.au/property-house-vic-melton+west-111792155">12 Rainsford Place</a> was sold in just two days and <a target="_blank" href="https://www.realestate.com.au/property-house-vic-melton+west-111706099">2 Ormonde Esplanade</a> in two weeks.
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In terms of rental yields, the greatest return on investment is coming from investment properties priced between $200,000 to 250,000 (returning between $250 to 285 per week) and in some cases allowing investors to positively gear their property – a rarity in recent years. Further up the scale, investment properties between $250,000 to 300,000 are showing rental yields approximately matching the repayments of investors (up to around $300 per week).
At the higher end of the Melton market, in the $300,000 to 400,000 bracket, we’re seeing a trend in families look to upgrade to larger homes on large blocks within 40 minutes of the city.
Likewise properties priced above $400,000 are attracting increased interest from home buyers. For example, we recently sold a property at <a target="_blank" href="https://www.realestate.com.au/property-house-vic-melton-111311443">54 Unitt Street</a> at auction for $584,000. There were three active bidders and a crowd of over 40 spectators who saw the property sell above reserve price. Auctions are rare in Melton, given that most buyers borrow approximately more than 80% of the purchase price and the conditions imposed on securing loans of this type see most properties sold privately. To see this level of competitive bidding is yet more evidence of improving buyer sentiment.
So, what is the outlook for the rest of the year? With economists predicting further interest rate cuts in the near future, further aiding Melton’s affordability factor, buyer confidence will only continue to improve and in turn this will encourage more sellers to list their properties.
With all this in mind, I expect to see supply and demand for properties in Melton increase into the new year, driving up median house prices and rental yields. So for budding buyers out there, it’s a good time in Melton’s market cycle to invest – and not just because it’s spring!
Julian Conte has more than a decade experience in real estate and is director of <a href="https://www.hockingstuart.com.au/" target="_blank">hockingstuart </a>Melton and Werribee.
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Property market picking up in outer-Melbourne suburb of Melton thanks to improved buyer sentiment: Hockingstuart

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The capital cities of Australia’s resource states are leading the property market recovery, according SQM Research managing director Louis Christopher.
Christopher places Perth houses and units at 6.30 on the property clock, indicating the market has just bottomed out and heading into an upswing, and Brisbane houses and units at six o’clock, indicating the market has bottomed out.
<img src="/images/stories/2012/10/clock-generic.jpg">
His assessment of the Perth market is based on falling listings and a tightening rental market.
Perth house and unit prices have also stopped falling, says Christopher.
In its September stock-on-market report, SQM found that Perth online residential listings declined by 3% to 17,517. Year-on-year they are down 14.6%, the biggest decline of the mainland capital cities (excluding the much smaller Darwin market).
SQM also found that the Perth vacancy rate tightened from an already very low 0.7% in July to 0.6% in August, with just 1,177 properties available for rent (compard with more than 2,600 in Adelaide and nearly 12,000 in Melbourne). Apart from Darwin (0.5%), Perth has the tightest rental market in Australia.
This tightening vacancy rate resulted in median house rents increasing by $10 to $450 per week over the August quarter, with weekly rents for units, apartments and villas rising by $20 to $430 per week, according to the latest REIWA data.
Christopher says Brisbane has bottomed out due to falling listings volumes and house prices no longer falling.
According to SQM Research, Brisbane online residential listings are down 8% year-on-year to September, with the vacancy rate at a tight 1.5%.
 
<hr class="system-pagebreak">
Investors looking to get into the Sydney market at the bottom of its cycle may have missed out, according to Christopher.
Christopher has Sydney houses at seven o’clock on the property clock, with units slightly further ahead at 7.30, indicating houses are well on their way to rebounding.
In both the case of houses and units listings are falling with SQM recording 2.9% fall in Sydney listings in September to be down 13.1% year-on-year to 30,408 properties for sale.
In both house and unit markets he says evidence of a recovery can be seen in rising Sydney auction clearance rates, which was 63% over the weekend.
However, Sydney houses are not making a homogenous recovery, with prestige houses stuck at four o’clock, according to Christopher, indicating they still have some way to fall.
Sydney units are slight further ahead of houses in the property cycle due to the introduction of the $15,000 first-home buyer handout, which applies to new homes, including apartments, marketed off the plan.
The Melbourne property market (houses and units) is assessed as having some way to go before bottoming out – at five o’clock on the property clock.
“Melbourne listings are still elevated and are not falling," says Christopher.
“There is some evidence of a rise in clearance rates, but no real evidence of a rise on prices, he says.
SQM has Melbourne online residential listings up 3.2% year-on-year to September to 51,564 properties listed for sale.
Adelaide and Canberra are assessed as flat property markets and at the same point in the property cycle as Melbourne (five o’clock).
In the case of Adelaide, Christopher says that “listings are still elevated, yet they are no longer rising at rapid rate.
“There is no evidence yet of increased buyer demand and prices are flat.”
In Canberra, apart from listings remaining high and prices flat, Christopher says the “outlook is uncertain due to the federal budget”.
Darwin is assessed as the only capital city market that has already rebounded (at nine o’clock) and heading towards it its peak.
“There has been a strong lift in Darwin house and unit prices starting in the first half of this year.
“Stock levels are falling rapidly. The rental market very tight,” he says.
SQM Research shows a 25.9% decline in Darwin properties available to purchase, with online listings falling from 1,616 in September 2011 to 1,198 currently.
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Perth and Brisbane heading into property market upswing: Louis Christopher

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Liquor retailer Cellarbrations will pay around $304 per square metre to lease a shop in the  Healesville Walk Shopping Centre, a popular Melbourne tourist destination.
The 230-square-metre store has been leased on a five-year term at a rental of around $70,000 per annum guaranteed by Metcash.
The deal was brokered by Savills Australia retail director Michael Di Carlo alongside colleague Jeremy Marmur. 
Di Carlo says there is a very high level of demand for tenancies at Healesville Walk.  
Anchored by a Coles supermarket, Healesville Walk is a community shopping centre with frontage to the Maroondah Highway. Other retail tenants include Liquourland, Bakers Delight, and National Australia Bank. The lessor is a major institutional investor/developer.
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Cellarbrations leases shop in Healesville Walk Shopping Centre

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I often get asked the question from investors “which is better – an apartment or house?”. Of course, it broadly depends on what the investor hopes to achieve from their purchase and depending on their preferred location, the answer is often dictated by budget alone.
Broadly speaking, as a “set and forget” option that promises appreciation over time, it’s hard to beat an apartment close to inner-city amenities. Providing you’re careful with the pre-purchase due diligence in terms of property style and position, apartments generally attract a higher yield, are low maintenance, and when issues with the building do occur, they are generally handled by the owners’ corporation and/or property manager.
However, regularly you’ll read property commentators dictating that apartments perform better in their median data than house prices.  While this may often be the case over the short term, it has not been proven over the long term.  In fact, over a long time frame, median detached house prices have outperformed unit prices, and there are sound fundamental reasons why this may continue.
Apartments have their benefits.  The price of land in inner suburban capital city zones has become so expensive that for a good proportion of buyers restricted in location their budget is hamstrung to this type of property.  However, for the larger demographic, apartments are considered the place where you start out – not end up.
We get bombarded with this idea that everyone is “downsizing” – and once again it’s another excuse by property commentators specialising in apartment sales to promote this option over others.  Everyone’s living alone, they cry! They use previous census data to prove the single-person household is the fastest -growing demographic in the nation.
However, I’d hazard a guess that a good proportion of these single dwellers are comfortably living in houses or town residences, rather than pottering about in a one-, or even two-bedroom apartment – and recent census data proves exactly this.
At 44%, the typical Aussie home still has three bedrooms, and the stats show the majority are occupied by only one or two residents. In fact, only 14% of lone-person households live in one-bedroom dwellings, and there’s been a big increase in the number of four-bedroom homes, which now make up almost a third of the housing stock.
Not only this but, as the latest census results further prove, the single-person household is no longer the fastest-rising demographic. In the 2011 results, lone-person households dropped from 24.4% to 24.3%, while group households (shared accommodation) jumped from 3.9% to 4.1%. This is most likely due to reasons of affordability – renting a one-bedroom inner-suburban apartment can often be more costly than an older three- or four-bedroom detached dwelling a few suburbs out. It makes sense therefore to share, and this trend is mirrored in other international markets – such as the UK and Canada, which produce similar data in their own census breakdowns.
Most of the first-home buyers who cross my path also follow the above pattern.  Rarely do they opt for a one-bedroom apartment – unless they’re restricted to a particular suburb. Most opt to move outwards and purchase something larger and if given the option, would rather rent until they’re able to afford a suitable property for their five- to seven-year needs.  So who’s buying all the apartments?
What we do know is Australia-wide, 58% of apartments are owned by investors. Break this data down to a state-by-state capital city level and the investor-owned percentage of inner-city apartments is closer to 70% and in some states exceeds even this (ABS data.)
 
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Therefore, while there are a proportion of home owners selecting an apartment lifestyle, for many it’s still not the desirable option. Furthermore, data proves the first-home buyer demographic broadly prefer established over new, therefore it’s highly likely they will opt for older-style apartments in smaller blocks, all of which generally offer larger floor plans and fewer owners to battle with in the annual owners’ corporation meetings.
Furthermore, it seems when home buyers (first or otherwise) do purchase new, they will generally stick to low-rise apartment blocks. This is due to stricter lending restrictions for high-rise accommodation, coupled with high owners’ corporation fees and the not-so-desirable aspects this type of accommodation offers.  This is evidenced in the latest NAB quarterly Australian residential property survey.
The report notes that when it comes to inner-city new dwellings, demand across all states is strongest for “low-rise apartments and townhouses”, with “middle-ring housing” being the next best option. In fact, when broken down, demand for townhouses far outweighs demand for apartments.  Yet, despite this, across all inner-city regions, we’ve seen a boom in high-density accommodation – most of which has been in the form of relatively compact one- and two-bedroom high-rise dwellings.
It would seemingly make sense to build as much accommodation on a piece of land as possible, however I often wonder if once constructed, the council ever goes and inspects the developments it has approved?
I’ve had the “good fortune” to walk through many of the high-rise – and for that matter, low-rise – unit blocks. The artist drawings depicted in the pre-sale advertisements rarely represent the reality – which is always somewhat of a disappointment. Therefore, it pays for buyers to enlist the utmost caution when assessing apartments of this type prior to purchase (which of course cannot be done when purchasing off the plan). It’s also my experience that many home buyers consider the accommodation on offer in the newer units, poor value when confronted with the initial asking price.
<a target="_blank" href="https://www.propertyobserver.com.au/residential/units-more-affordable-but-buyers-still-attracted-to-detatched-houses-cameron-kusher/2012100256896">Last week RP Data published some interesting information that further clarifies the above</a>. The latest research shows the largest number of sales nationally is for detached dwellings as opposed to units or apartments.  Considering Australia’s biggest buyer demographic is made up of family home buyers with and without children, this isn’t surprising, however the data also shows a decline in the number of unit sales, which is interesting when it’s generally assumed home buyers at all stages would be flocking to the unit sector for affordability reasons.  After all, as one managing director of Colliers International recently stated:
“Australia is catching up with the rest of the world, with apartment living becoming more acceptable to families.”
I’d suggest there is a lack of significant evidence to back this statement up.
 
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Further research from RP Data may throw some light on the demise in sales. It notes that the greatest number of unit sales is predictably in capital cities, where there is a large disparity between house and unit prices. For example, its analysis shows Canberra and Sydney have a gap of $110,000 between house and unit sales.  However, Melbourne only has a gap of $48,000 between the property types.
Consequently, the unit sales percentage in comparison to detached dwellings in both Canberra and Sydney is 42.5% and 42.8% respectively.  Obviously, the greater the difference in price, the larger the perceived value for buyers and investors who would therefore be encouraged to buy.
The report offers the following statement:
 “Demographic factors are also likely to contribute to greater demand for units, with baby boomers looking to downsize from their large family homes into something smaller and more easily maintainable.”
This is may be true for some property types that fall under the umbrella of a unit sale, however it’s unlikely to be the case for apartment sales.
While downsizing to a younger brain may be simply mean moving into a flat or apartment, elderly residents have a lifetime’s worth of furniture and memories to accommodate. Selling costs – along with stamp duty and the stress involved in a house move – often deter consideration of the above altogether.  However, when it does occur, the preference would certainly be downsizing the land component of the property rather than the level of accommodation. In other words, the good old single- or double-level townhouse or terrace.
It’s clear therefore the predominant market for inner-city unit sales (particularity high rise) is firmly in the court of the investor who is one step removed emotionally, and need not have personal lifestyle requirements as her main objective. This is all well and good, however if the investor is looking for capital growth over rental return she’s going to do a lot better focusing on property that attracts Australia’s larger buyer demographic – the owner-occupier market.  Hence why established or older-style period apartments in smaller blocks deliver higher long-term returns.
For investors who like the idea of purchasing new in order to take advantage of increased yields, various spruiked rental guarantees and tax depreciation benefits – they could find securing long-term tenants problematic. Vacancy rates in high-rise accommodation far exceed their established counterparts. For example, Melbourne’s Docklands and Southbank, which have the largest number of high-rise apartments, have vacancy rates of 10.4% and 9.2% respectively, however St Kilda East, which has a higher percentage of low-rise established apartment blocks, currently has a vacancy rate of 2.5%, according to SQM.
Considering the above, I would suggest it’s far more sensible when re-zoning inner-city land, to cater to a home buyer market and provide a greater proportion of accommodation to attract home buyers – principally low-rise developments and terrace housing – rather than building an endless supply of tower blocks. However, considering the pace of high-rise construction it’s a piece of advice I can all but guarantee developers and town planners won’t adhere to. Perhaps the property investors out there can take note instead.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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Should you invest in an apartment or a house?

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Melbourne landlords who find they are not receiving multiple enquiries every week about their vacant rental properties need to lower their rental expectations, according to Leah Calnan, director of Metro Property Management.
Speaking at yesterday’s Melbourne Home Buyer &amp; Property Investor Show, Calnan described the Melbourne rental market as “a little bit tough” for landlords for the past year.
“If your enquiries are minimal, it’s a price point issue,” Calnan said.
She said Melbourne landlords should not always expect to receive the same rent or more for a property as tenants changed.
“You have to change with the market,” she said.
“It’s much better for you to receive 90% of that $500 a week, for example, than no money at all.”
She also pointed out that prospective tenants searched in price “blocks” – for example, $450-$495, and so landlords could appeal to a broader range of renters by ensuring the rent fell within that block. She said a difference of $5 a week, from $500 to $495, could entice prospective tenants who otherwise would not see the property in internet searches.
In addition to reducing their rental expectations, Calnan suggested landlords offer prospective tenants sweeteners and incentives to make their properties stand out. She suggested a free barbecue, free 12-month Foxtel contract, a Coles/Myer voucher or paying for the cost of removalists in order to entice tenants.
“For you it’s a tax deduction, but it’ll make the property more attractive to tenants,” Calnan said.
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Melbourne landlords might need to lower rent to fill vacant properties: Leah Calnan

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If you want an example of how stimulus-sensitive the Australian housing market is, look no further than Brisbane or Canberra. Transaction volumes absolutely spiked in July. In Brisbane, our estimate of transaction numbers surged by 52% compared with the June reading, and in Canberra the number of home sales was 41% higher than sales in June.
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The last time month-on-month transactions were that high in Brisbane was back in March 2010, and for Canberra the number of sales in July hasn’t been that high since March 2011.
 
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Of course, the surge can be attributed to the changes in stamp duty rules in both Queensland and the Australian Capital Territory. The large jump in Queensland can also be attributed to the pre-concession slowdown, where buyers put off their purchases until the savings became available on July 1.
Queensland brought back the transfer duty home concession, which provides a concessional stamp duty rate of 1%, up to a value of $350,000 for owner-occupier purchasers. This is separate from the first-home buyer stamp duty concession, whereby first-time buyers pay nil stamp duty on purchases up to $500,000. The changes can save buyers up to $7,000 when they purchase a home.
Under the ACT’s taxation reform plan, stamp duty is on its way to being abolished completely. Although the reforms became live on June 6th of this year, the effect of the stamp duty discounts are certainly clear based on the July numbers. A statement from the ACT government spells out its views on stamp duty:
“Stamp duty is unfair, and poses a significant extra cost burden on people buying a home. It will be phased out progressively over twenty years. From tomorrow, stamp duty will be decreased, making buying a home cheaper. Stamp duty on a $500,000 home, for example, will fall by $2,450 immediately and by more than $7,000 over five years.”
The table below outlines the stamp duty savings from the new scheme (<a target="_blank" href="https://www.treasury.act.gov.au/budget/budget_2012/files/budgetpaper3/03_2taxationreform.pdf">see the document here</a>). With the Canberra median house price at $545,000, a saving of more than $2,450 is a reasonable incentive.
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A similar phenomenon was evident New South Wales when the state government announced stamp duty exemptions would cease on January 1, 2012. As a result, there was a 23% surge in buyer activity over the last quarter of the year compared with the September quarter. Click to enlarge
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Of course, another example of a stimulus in the housing market is the recent interest rate cuts, which are a much broader based incentive. It is no coincidence that the housing market started to gain traction at the end of May, after the RBA cut rates by 50 basis points, and again in June, slicing a further 25 basis points off the cash rate. Since the end of May, capital city dwelling values have risen 3.1%; with the further rate cut in October, it is logical to presume that the effect will provide further momentum for dwelling values. Click to enlarge
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Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/">RP Data.</a>
Photograph of Brisbane courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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Pick-up in Brisbane and Canberra property sales show how stimulus-sensitive Australia's property market is: Tim Lawless

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Knight Frank is selling 15 apartments in the AEA Sydney Airport Serviced Apartments building in Mascot in a receivership sale.
The company is offering the 15 strata-titled one- and two-bedroom apartments in one line.
The most recent sale in the building was one-bedroom apartment number 15, which sold for $234,000.
The properties are being sold by agents Brett Burridge and Richard Garland.
The building a short trolley push away from Sydney airport, seven kilometres south of the CBD.
The last review for the property on Trip Advisor complained of poor conditions and lack of service.
“The first calamity was to try to enter the property at 4pm. At the front door (off a busy cross street to Botany Road) the buzzer brought no one. A telephone call to the onsite manager, reservations number and then manager again, finally brought a tall, shoeless man in socks and dirty shorts and T-shirt to open the locked door for us,” reviewer EleWaggaWagga complained.
Rooms in the apartments start at $109 a night.
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