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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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><table width="464" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="64">
Postcode
</td>
<td valign="bottom" nowrap width="92">
Suburb
</td>
<td valign="bottom" nowrap width="88">
Median Price
</td>
<td valign="bottom" nowrap width="87">
Median Rent per week
</td>
<td valign="bottom" nowrap width="133">
Median Rental Yield
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2912
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">GUNGAHLIN</a>
</td>
<td valign="bottom" nowrap width="88">
$334,000
</td>
<td valign="bottom" nowrap width="87">
$440
</td>
<td valign="bottom" nowrap width="133">
6.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2601
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">CITY</a>
</td>
<td valign="bottom" nowrap width="88">
$450,000
</td>
<td valign="bottom" nowrap width="87">
$578
</td>
<td valign="bottom" nowrap width="133">
6.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2612
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">BRADDON</a>
</td>
<td valign="bottom" nowrap width="88">
$424,000
</td>
<td valign="bottom" nowrap width="87">
$500
</td>
<td valign="bottom" nowrap width="133">
6.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2617
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">BRUCE</a>
</td>
<td valign="bottom" nowrap width="88">
$398,750
</td>
<td valign="bottom" nowrap width="87">
$465
</td>
<td valign="bottom" nowrap width="133">
6.1%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2902
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">KAMBAH</a>
</td>
<td valign="bottom" nowrap width="88">
$380,000
</td>
<td valign="bottom" nowrap width="87">
$440
</td>
<td valign="bottom" nowrap width="133">
6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2612
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">TURNER</a>
</td>
<td valign="bottom" nowrap width="88">
$436,500
</td>
<td valign="bottom" nowrap width="87">
$498
</td>
<td valign="bottom" nowrap width="133">
5.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2913
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">PALMERSTON</a>
</td>
<td valign="bottom" nowrap width="88">
$380,000
</td>
<td valign="bottom" nowrap width="87">
$430
</td>
<td valign="bottom" nowrap width="133">
5.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2906
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">BANKS</a>
</td>
<td valign="bottom" nowrap width="88">
$375,000
</td>
<td valign="bottom" nowrap width="87">
$420
</td>
<td valign="bottom" nowrap width="133">
5.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2606
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">PHILLIP</a>
</td>
<td valign="bottom" nowrap width="88">
$429,000
</td>
<td valign="bottom" nowrap width="87">
$480
</td>
<td valign="bottom" nowrap width="133">
5.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="64">
2906
</td>
<td valign="bottom" nowrap width="92">
<a href="/news">GORDON</a>
</td>
<td valign="bottom" nowrap width="88">
$369,000
</td>
<td valign="bottom" nowrap width="87">
$413
</td>
<td valign="bottom" nowrap width="133">
5.8%
</td>
</tr>
</tbody></table></body></html>

awalsh-7Ub9EypybQ

The 10 Canberra suburbs with the highest yields: RP Data

<html><body>
Unlisted property trusts have delivered stronger and more stable returns than REITs over the last 25 years, according to a new report published by the Property Funds Association of Australian (PFA), the peak body representing the unlisted wholesale and retail property funds sector.
The strong income performance and low volatility are factors which should encourage investors to add direct property to their portfolios, the report argues. 
It also explains why unlisted property investments have exceeded those made in the listed space over the past 12 months, with the PFA estimated the cumulative value of the direct property sector to be around $55 billion.
The report, compiled by Atchison Consultants, compares the returns generated by the Property Council of Australia/IPD Composite index (covering 1,629 direct property investments) with those generated by the benchmark S&amp;P ASX A-REIT 200 Accumulation Index (commonly called the A-REIT Index).
Apart from the three years to March 2012, direct property returns has exceeded listed property returns over all periods over the last 25 years. 
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/09/reits.gif" title="Click to enlarge"><img src="/images/stories/2012/09/reitsthumb.gif"></a>
In addition, the unlisted property sector has been a more stable investment vehicle than listed property, which boomed before the GFC before crashing soon after.
According to the report, throughout the GFC, volatility of returns had been at extreme highs in the listed property market peaking at an annualised 34% in December 2009.
And while volatility of returns has stabilised in the REITs sector to around 17% as confidence in the listed property market returns, annual volatility of direct property returns have been constantly below 5%.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/09/reitoct2.gif" title="Click to enlarge"><img src="/images/stories/2012/09/reitoct2thumb.gif"></a>
 
<hr class="system-pagebreak">
 
The report notes that direct property returned positive annualised performance over all periods to March 2012.
“By comparison, listed property experienced a negative return of 13.3% per annum over five years to March 31 2012, mainly attributable to the large fall in the listed property during 2007 to 2009 in the GFC.
“All listed equities fell significantly during this time. The fall in listed property was exacerbated by substantial increase in debt finance used by A-REITs in expanding property portfolios.
“Subsequently as the GFC emerged the banks required reduced levels of debt. Investments in riskier activities such as property development and the uncertainty and poor performance associated with the increased exposure to offshore property at high gearing levels also contributed to the negative performance,” says the report.
PFA president Robert Olde says investors should take note of the low volatility figures for direct property investments revealed in the report.
“They are low compared to those of both equities and listed property vehicles such as A-REITs. In our view this is another signal of the opportunities offered by direct wholesale and retail property funds, trusts and syndicates.
“The findings in this report are a strong validation for the inclusion of direct property in a diversified portfolio – and even more so when times are tough and turbulent.
“Since the GFC, for example, direct property has continued to demonstrate the kind of resilience and positive total returns that other asset classes simply have not. And judging from inflows in the past 12 months, investors are beginning to understand the hard facts.”
PFA vice president Jason Huljich says the research constitutes a valuable update for investors seeking to strengthen their portfolios in the face of a continuing uncertainty. 
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lschlesinger-FZcF9M3vE6

Less volatile unlisted property investments have outperformed REITS over last 25 years: PFA report

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The Mirvac Group has sold 50% of its stake in the Old Treasury Building, Perth to K-REIT Asia for $165 million.
It's a new A-grade commercial tower project on the site of Perth’s Old Treasury.
The deal will have to wait for approval from the Foreign Investment Review Board.
It has a construction completion date set for 2015.
The building will have 30,800 square-metre space with 98% pre-committed by a 25-year lease to the WA state government.
K-REIT will fund 50% of the development costs, at an effective rate of 7%.
Mirvac’s Bevan Towning said he was delighted with his company’s second co-investment with the Singapore-listed group.
“This transaction is Mirvac’s second co-investment with K-REIT, following the sale of a 50 per cent interest in our latest premium grade Sydney office tower, 8 Chifley Square, and we are delighted to work with K-REIT to deliver one of Perth’s flagship projects.”
Mirvac Constructions, a subsidiary of the Mirvac Group, will deliver the building under a fixed-price design. It is anticipated that on completion, Mirvac Asset Management will be appointed as property manager by the co-owners.
The property is targeting a five-star <a target="_blank" href="https://www.gbca.org.au/green-star/">green star</a> rating by the Green Building Council of Australia and is designed to achieve a 4.5-star <a target="_blank" href="https://www.cbd.gov.au/NABERSRatings.aspx">NABERS Energy Rating</a>.
Last November Property Observer reported the <a target="_blank" href="https://www.propertyobserver.com.au/developments/perth-s-old-treasury-to-become-aman-resort/2011110752242">Old Treasury buildings </a> were being refurbished into an ultra-exclusive Aman Resort, while a 35-level office tower was being developed at the centre of the site, which is part of the St George’s Terrace Cathedral Heritage Precinct.
 
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abishara-dhmMVBjDxV

Mirvac sells 50% of the Old Treasury Building, Perth project to K-REIT Asia

<html><body>
Amid all the negativity about real estate, much of it peddled by groups representing builders, not many people realise how much home lending has grown this year.
ABS data shows a 7% rise in the number of home loan commitments in the 12 months to the end of July 2012.
New South Wales, Western Australia and the Northern Territory have all had double-digit growth in loans to owner-occupiers in the past year.
Queensland, Victoria and South Australia have also experienced more activity by home buyers. There’s been little change in the ACT, leaving Tasmania, the basket case among the state and territory economies, as the only jurisdiction with a decline in home loans.
Loan commitments by investors have also risen, though by less. The value of loans to individual investors is up about 2% in the past 12 months. Queensland, the Northern Territory, NSW and Western Australia have had the most marked rises in investor activity.
The figures show that we generally have a recovery happening, but it’s not being inspired by investors, nor by first-home buyers. ABS data shows that only 19% of loans to home buyers are for first-time buyers.
The upturn in market activity is being led by that highly under-rated market sector, the one that no one talks about, the people who never get blamed for rising house prices but who are, undoubtedly, the reason our home prices tend to rise steadily. These are the trade-up buyers – i.e. home buyers other than first-home buyers.
 
<hr class="system-pagebreak">
 
Right now only about 30% of the residential buying market is investors; 70% are owner-occupiers, of which less than one-fifth are first-home buyers.
The current market share of the total residential market is 13% first-home buyers, 30% investors and 57% owner-occupiers other than first-home buyers.
Buyers in this latter category are the unsung heroes (or villains, depending on your viewpoint) of the residential market. When hand-wringers are rabbiting on about the fictitious affordability crisis and looking for someone to blame for our terribly expensive houses, they usually single out grants to first-home buyers or tax benefits for investors.
In doing so, they always get it wrong, which is why they always fail to get a response out of politicians and industry leaders.
They always ignore the party most responsible for the general upward spiral of property values: the people who not only comprise the bulk of the market but have the financial capacity and motivation to pay a top price (unlike first-home buyers, who are constrained by a tight budget, and investors, who have no emotional attachment to what they’re buying and just focus on the numbers).
When these trade-up owner-occupiers are busy, markets rise. The latest figures suggest they’re out in greater numbers this year, and that’s why capital city prices are now showing signs to rising again.
If political leaders, like the Neanderthals who currently run Queensland, really want to stimulate the property market and get people building houses, these are the people they should be targeting.
Instead of tossing a few bones at first-home buyers, 80% of whom prefer to buy established homes because they’re cheaper and better located, they should be encouraging the people who comprise the bulk of the market and have the capacity to pay a little more.
That won’t happen, of course, because it would be deemed politically unacceptable to be helping older, more affluent households, rather than struggling young couples who have somehow acquired the status of a protected species in residential Australia.
Regardless of what politicians do or, more to point, don’t do, our major markets are moving forward and it’s all being led by the silent unacknowledged majority who get no government grants and no tax benefits.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank" rel="nofollow">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" target="_blank" rel="nofollow">followed on Twitter</a>.
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terryryder-YECXbqmri2

 Housing recovery happening, driven by unsung trade-up buyers: Terry Ryder 

<html><body>
There are far fewer property investors in BRW’s Young Rich List than on the full Rich List, including older people, published earlier this year.
Eight of the members of BRW’s 100 Young Rich List have made the bulk of their money from property.
In the Rich List 200 published in May, some 55 of the members made their money from property.
Proportionally that’s three times as many property investors on the older list than the younger list.
The richest member of the young list who made his wealth from property is Shane Wilkinson, with an estimated worth of $72 million. Wilkinson started Pace Development Group in the mid-1990s.
The next is Paul Fridman, with an estimated worth of $65 million. Fridman says his apartment building company, Fridcorp, has “had a very good year”.
Jonathan Hallinan follows Fridman with an estimated worth of $63 million. The Melbourne-based developer has been operating in Brisbane, where it costs less to build and buy land. Hallinan says he keeps 20% of each project he builds.
Next up is Ronnie Elhaj at $55 million. The Cairo-born Elhaj has an equity stake and a marketing role in Perth house-building comapny Niche Living, which he established as Australian Property Alliance in the early 2000s.
The next property rich lister is Paul Fischmann, with an estimated worth of $39 million. Fischmann entered the hotel business 15 years ago, and his group 8Hotels now owns 14 boutique hotels, villas in Bali and Hepburn Springs in Victoria and apartments in Paris. He is due to open a new 90-room hotel in Sydney’s <a target="_blank" href="/news">Pyrmont </a>early next year.
Marcus Gilmore is next, with an estimated worth of $37 million. It’s his first time on the list. He is developing mining accommodation in the Pilbara.
Jay McAlister follows Gilmore with an estimated worth of $35 million. He owns a 50% stake in Queensland-based property developer Vantage Property Group.
Jason Di Iulio is the final property member of the Young Rich List, with an estimated worth of $25 million. He owns a network of property-related companies, including mortgage company Finance Mutual Australia and investment management business Assist Finance.
The BRW Young Rich List only includes people under the age of 40. The list excludes anyone who inherits most of their money.
A high number of athletes who made their wealth from sport but later invested in property are featured in the Young Rich List.
Basketballer Andrew Bogut, worth $40 million, has a number of investment properties.
Tennis star Lleyton Hewitt has invested much of his money into property including a home at Palm Beach, north of Sydney, and a penthouse in the Yve building on St Kilda Road, Melbourne.
And soccer player Mark Viduka, at $24 million, has property in Melbourne and Croatia.
Goalkeeper Mark Schwarzer, $20 million, has a healthy property portfolio in Sydney including an $11 million 1200 square metre harbour-front property.
Number one on the Young Rich List are technology entreupeneurs Mike Cannon-Brookes and Scott Farquhar at $480 million.
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Not many property tycoons in BRW Young Rich List

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Suburban shopping centres remain on the radars of offshore investors with a large mall in Sydney's Macquarie Park and five Centro shopping centres attracting interest.
The Abu Dhabi Investment Authority (ADIA) and Canada Pension Plan Investment Board (CPPIB) are considering acquiring a 50% stake in the Macquarie Centre shopping mall in north-west Sydney, according to reports in the Australian Financial Review.
Westfield holds a 27.5% stake in the centre, which is valued at $249.6 million with Westfield Retail Trust holding a 22.5% stake.
The other 50% interest is held by AMP Capital.
According to the AFR, the two offshore institutional investors will each acquire one of the Westfield stakes.
CPPIB has already committed to investing $1 billion in Lend Lease’s $6 billion Barangaroo project on Sydney harbour.
Centro Retail Australia is selling its half-shares in five malls said to be worth around $400 million.
According to Centro boss Steven Sewell the assets have “attracted quite a bit of investor appetite” both domestically and offshore.
Sewell is looking to raise cash to repay loans made to Singapore’s sovereign wealth arm, GIC, which owns a portion of debt on each of the shopping centres.
The five centres up for sale are Centro Cranbourne in Melbourne’s south east fringe, the nearby Star Zone Karingal, Centro Warriewood in Sydney’s northern beaches, Centro Mandurah south of Perth and neighbouring Centro Halls Head
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Offshore investors to take stakes in Macquarie mall and mulling Centro investments

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The 1887 built Queenscliff Hotel on the western tip of Port Phillip bay has been listed for sale with all its antique furnishings in one line.
The heritage-listed hotel was designed by Melbourne architects Reed, Henderson &amp; Smart, the same architects responsible for the State Library of Victoria, Collins Street Baptist Church, Melbourne Trades Hall and a number of Melbourne university buildings.
It was built by NW Frogley in the English Queen Anne style for Martha Nugent and Joseph Goslin, wealthy local citizens at the time.
Heritage documents say the building is an extraordinary example of the architects’ work.
“The polygonal tower, with its coned roof and bellcast profile, and the Dutch gables, with steep slit openings, are of interest for their reflection of northern European Renaissance architecture, particularly from countries as such France and the Netherlands.”
Heritage documents celebrate the façade of the building for its “essentially intact exterior”.
“The Queenscliff Hotel is of social significance for its associations with wealthy Victorian society around the turn of the century, who regarded Queenscliff as a fashionable summer holiday resort, particularly as it was within easy reach of Melbourne after the opening of the Geelong-Queenscliff railway in 1879 and the introduction of paddle steamers to transfer passengers from Melbourne by sea.”
The 15-bedroom mansion has been run as a leisure property since it was built.
The current owners acquired the property about 10 years ago from restaurateur Patricia O’Donnell, sister of the now deceased Mietta O'Donnell, who ran the hotel as a fine dining hotel for a number of years.
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The hotel was first restored for modern use in 1978, being converted from a run-down pub status to its heritage glory.
Queenscliff first became a significant tourist destination in the late 19th century with holiday-makers taking a two-hour paddle steamer journey from Melbourne. The influx continued with the 1879 opening of the Geelong railway line, which coincided with the construction of a number of luxury hotels including the Palace Hotel, the Baillieu Hotel and the Vue Grande Hotel.
Tourist numbers dwindled with the popularisation of cars and the cancellation of a daily rail service, but the 1980s was the start of a tourism revival for the town.
The 1,669-square-metre property been listed by Neil Laws and Damian Cayzer from Kerleys Coastal Real Estate in Point Lonsdale. They are seeking $4 million to $6 million for the 19th-century building.
Laws says there has been significant interest in the property including people who want to convert it into a residence.
“It’s not a massive building like some of the others in Queenscliff, so that would be doable,” Laws says.
There has also been interest in people running just the accommodation side of things who would sublease the restaurant business.
It includes a formal dining room, a conservatory restaurant, a boat bar, front and rear al fresco garden restaurants, a commercial kitchen, a turret room and a manager’s apartment.
It is zoned mixed use/business 1, which allows for a number of alternative uses.
The building is being offered with all plant and equipment, antique furniture, licences, permits and chattels.
Tenders close on Wednesday November 7.
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Historic Queenscliff Hotel listed, along with antique furnishings

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As we go into our footy-induced/ school holiday auction activity hibernation we thought we would look at the key issues facing buyers right now in the spring marketplace. Here are our top five.
1. Underquoting
Underquoting is back with a vengeance. It is a real stain on our profession. Like dummy bidding it causes great angst to a large number of buyers and sellers (yes, sellers as well).
Underquoting is the deliberate lying to buyers by agents as to the price the vendor is likely to be seeking. It is not legal in this or any other market. It is different to the<a href="https://www.propertyobserver.com.au/residential/a-smart-buyer-s-guide-to-step-quoting/2011091451554"> legitimate practice of step quoting</a>, which is the raising or lowering of a quote by an agent during a campaign in response to buyer interest, to more accurately reflect the expected sale range, while keeping the vendors’ expectations (which may move) within that range.
While underquoting is illegal, the government and REIV are doing nothing about it, either because they can’t or because its proponents are all-powerful and the authorities are scared of them. They cannot be ignorant of its occurrence – it is rife in much of Melbourne’s inner east and now some of bayside.
Writing this comment is doing us no favours in terms of our relationships with particular agents (which we value). And, to be honest, underquoting is good for our business: the more of it there is, the more enquiries we receive for our services.
However, we find underquoting unacceptable – and we are particularly concerned at the increasing dominance of the company that is forcing the issue and encouraging other companies to do the same just to compete. A whole new generation of salesmen and saleswomen are being taught to lie for a living and then being allowed to think that this is consistent with professional conduct.
Given that the government and the REIV have proven they do not have the “cahoonas” to take this on, until they do, if there is to be change, then it must come from within the company(s).
We urge the company, for which we have the utmost respect as professional agents outside this issue, to reconsider its methods and set higher standards than the lofty ones it is currently achieving.
Nobody’s perfect, our company included, but that doesn’t mean you can’t try and fix a problem.
Underquoting is hurting our truly great profession. It is simply plain wrong and it is ultimately ineffective. 
2. Stock levels
Stock levels are the market enigma right now. Because stock is at low levels, buyers are finding it frustrating to be in the market looking – but it is the low stock levels that are holding market prices up, which in turn, keeps a market for buyers to be looking in. <a href="https://www.propertyobserver.com.au/residential/buying-property-in-early-winter-demands-a-change-of-tack-mal-james/2012041654302">Trading up</a> is a sensational idea right now, but you need to be able to find the right home to trade up into.
3. Valuations and banks
Sustained price drops since April 2010 across many (not all) of the top end market has made “getting the cash together” a greater complication for buyers than in previous times.
Buyers need to deal with a) reduced equity in their own home and b) the fact banks are not always rubber stamping the price paid on their new target home.
The uncertainty of dealing in very fluid negotiations with a very rigid banking systems has meant a greater skill in deal making is required than in the boom markets of yesteryear.
But please, banks are actually doing the right thing – there is no bank bashing in the argument.
You need to know how bank valuers think, how bank valuers act and how bank valuers value because if you don’t, you may have a nasty surprise the week after you thought you made a good decision and bought a home you thought the banks would fully support you on.
 
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4. Assessing values – information overload
With specific reference back to the previous point – one of the key skills required in this market is assessing “market” value. Some previous Buyer Masterclasses on “value”
<a href="https://marketnews.com.au/2010/10/a-home-land-building-emotion/">A way to value a home</a>
<a href="https://marketnews.com.au/2010/11/putting-a-price-on-land-value/">A way to value Land</a>
<a href="https://marketnews.com.au/2010/12/placing-a-value-on-a-building/">A way to value a building</a>
<a href="https://marketnews.com.au/2012/08/information-reiv-medians-and-balwyn/">What sort of information are you basing your value assessment on?</a>
5. Buyer emotions and negotiations
No articles has had a bigger, more sustained response than the <a href="https://marketnews.com.au/2012/09/sold-under-the-hammer-no-its-not-even-when-you-think-it-is/">Masterclass</a> and <a href="https://marketnews.com.au/2012/09/what-is-really-going-on-at-some-inner-melbourne-auctions/">Market Insight</a> article about buyer emotions
If you think you can manage your emotions and you want to try some DIY negotiations– here are some Buyer Masterclass ideas from previous years
<a href="https://marketnews.com.au/2010/08/negotiation-is-all-in-the-mindset/">Negotiation mindset</a>
<a href="https://marketnews.com.au/2010/09/cultures-%E2%80%93-better-results-often-come-from-understanding-not-fighting/">Understanding agent cultures</a>
<a href="https://marketnews.com.au/2010/08/the-best-negotiation-tool-maybe-a-coffee/">Coffee can work</a>
<a href="https://marketnews.com.au/2010/08/carrots-and-sticks-and-other-successful-negotiation-styles-that-don%E2%80%99t-involve-begging/">Carrot and stick</a>
<a href="https://marketnews.com.au/2010/08/how-to-ask-if-its-on-the-market/">Asking the “on the market” question</a>
Finally the spring buyer solution:
If all the early spring reading leads you to some considered, well thought-out panic, then there is help at hand – there are solutions!
If you are surgeon or lawyer, could we do your job without any training? If you are a financial person or a retailer could we do your job well at our first attempt in a difficult situation? Of course not!
So why buy a home, your biggest financial and emotional (material) asset when you could get a better long-term result?
It’s self serving we know, but get some professional help from Guy or Adam or Gina at James Buyer Advocates. However, if you don’t like the cut of our jib, then try one of our competitors such as David Morrell or Chris Koren or Richard or Monique Wakelin or Jenny Wright at Domain, Ian James at JPP or Kim Easterbrook at Elite to name a few.
As a buyer you actually do have very real choices if you want better results before Christmas.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
What do you think the spring 2012 property market holds? <a target="_blank" href="http://propertyobserver.com.au/ebooks/the-spring-property-outlook-survey">Complete our five-minute survey</a> for your chance to win an iPhone 5.
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Underquoting among five key issues facing spring residential property buyers: Mal James

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Yesterday’s Missive found an undersupply of detached houses for sale in Sydney (2%), regional NT (2%), Darwin (3%) and Perth (3%).
<a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-darwin-and-perth-house-markets-undersupplied-but-regional-areas-oversupplied-michael-matusik/2012092556802">Detached housing markets at equilibrium are</a>:  Adelaide (4%), Brisbane (4%), Melbourne (4%), Hobart (5%) and regional NSW (6%).
The oversupplied detached housing markets are: regional WA (especially the <a target="_blank" href="/news">Margaret River</a> area) (14%), regional Victoria (9%), regional Queensland (including the Gold and Sunshine coasts and Cairns) (8%), regional SA (7%) and the rest of Tassie (well, Launceston) (7%).
But where are the stand-out post codes? And where are the shockers – the spots where housing supply has increased, and sometimes by lots?
The current top 10 improvers were all from Victoria, Queensland and WA. The two outer-Melbourne suburbs of <a target="_blank" href="/news">Werribee South</a> and <a target="_blank" href="/news">Wyndham Vale</a> had the biggest drops in housing stock for sale, although it’s worth pointing out there’s plenty more on offer very nearby – similar outer-Melbourne suburbs dominate the losers list, in fact some of them are right next door.
<img src="/images/stories/2012/09/matusept26.gif">
<a target="_blank" href="/news">Portland </a>in regional Victoria is worth a mention – it’s had a whopping 71% drop in the number of houses for sale over the year, with just 110 currently on the market. Portland’s main industry is – you guessed it – its busy port.
Queensland’s biggest drops in housing stock were <a target="_blank" href="/news">Yeppoon </a>near <a href="/news">Rockhampton</a>, <a href="/news">Coolum </a>on the Sunny Coast (down 31% to 618) and <a href="/news">Hervey Bay</a>. On the Gold Coast, <a href="/news">Paradise Point</a> and <a href="/news">Broadbeach</a> both have around 200 fewer houses for sale than this time last year – another tiny piece of good news for the struggling Goldie.
<a href="/news">Willetton</a>, a suburb in Perth (down 33% to 428 houses for sale), and <a href="/news">Mandurah </a>further south of the capital round out WA’s share of the top 10, with both WA locations also dropping about 200 houses each off the sales list.
The bottom 10 list is dominated by the outer suburbs of Melbourne, where houses for sale seem to be a dime a dozen. These are the spots that have experienced the highest jumps – leaps if you like – in the numbers of houses for sale. <a href="/news">Clyde North </a>in Melbourne’s southern outskirts has recorded a dramatic 213% rise (1,342 houses on the market); <a target="_blank" href="/news">Taylors Hill</a> out in the north-west has seen a 130% spike (to 1,158), while nearby <a target="_blank" href="/news">Rockbank </a>has leaped up by a staggering 295%. Seven of the top 10 losers are on the outskirts of Melbourne; the eighth Victorian entry is <a target="_blank" href="/news">Bairnsdale</a>, a small city in Gippsland.
The other two biggest losers are <a target="_blank" href="/news">Wurdong Heights</a>, a new development south of Gladstone in Queensland where demand from mining workers is quite high, and <a target="_blank" href="/news">Woorree</a> east of Geraldton in WA – also a mining area, where new homes, in the past at least, have been resold – and quite quickly.  Mining-related retrenchments, however, might slow down sales in the future.
PS - Thanks again to <a href="https://www.sqmresearch.com.au/">SQM Research</a> for access to its latest stock for sale Excel spreadsheets. Michael Matusik is the founder of <a target="_blank" href="https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a target="_blank" href="https://www.matusikmissive.com.au/" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a>or follow him on <a target="_blank" href="https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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The stand-out and shocker postcodes for detached housing supply

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There were 802 residential property sales in Perth for the week ending September 26, up 23% on the same week last year, according to the Real Estate Institute of Western Australia. The most actively traded suburb was Subiaco, with 18 sales.
REIWA says the number of listings, 10,048, is the lowest since 2010.
<img src="/images/stories/2012/09/reiwasept27.jpg">
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