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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Median house price across Australia's eight capital cities increased by 1.4% over the June quarter to a median of $519,768, according to the latest Real Estate Institute of Australia (REIA) Market Facts report compiled in collaboration with Bendigo Bank.
For the year to June capital city house prices are still down 3.1%, according to REIA calculations.
Canberra was the only capital city where house prices fell over the three months from April to June, recording a 5% drop to a median of $494,125, while Perth house prices were unchanged at $475,000 and Sydney house prices changed little, up 0.2% to a median of $642,425.
In its June quarter capital city house price update, the ABS recorded a 1.3% fall in Canberra house prices, compared with a 0.5% rise nationally.
Housing Industry Association ACT executive director Neil Evans said at the time that cheaper Canberra house prices might indicate that Canberra now had the right number of houses for its population.
''It's a difficult thing to pinpoint, but one thing I think is a major player … is when supply meets demand you might get drops,'' he told the Canberra Times.
In contrast to falling house prices, unit prices were up 2.4% over the quarter, with the REIA’s ACT institute pointing to a growing propensity among professional couples and singles to choose to live in an apartment complex.
The REIA recorded median house price decreases in all zones in the ACT, with the largest decline evident in the high-end inner-central zone – comprising Canberra North and Canberra South – down by 9.7% to a median of $650,000
Year-on-year, the inner central zone also recorded the largest drop of 12.2%.
The inner-south zone, comprising the Canberra suburbs of Woden and Weston Creek, fell 4.3% to $574,000; the west and north zone comprising Belconnen, Gungahlin and Hall fell 6.3% to $450,000, and the outer-south zone incorporating Tuggeranong fell 1.5% to $480,000.
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Melbourne house prices rose 2.9% to $535,000, while Brisbane managed a gain of 1.9% ($433,000) and Adelaide up 3.4% to a median house price of $395,000.
There were solid house price gains among the smaller capital city housing markets, with Hobart up 4.8% to a median $370,000 and Darwin house prices up 3.6% to $570,000.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/reiasept121.gif"><img src="/images/stories/2012/09/reiasept121thumb.gif"></a>
Hobart and Darwin were the strongest-performing unit markets over the quarter, registering gains of 5.9% and 4.8% respectively as the weighted average median unit price increased by 0.6% over the quarter to $429,558.
Among the larger capital cities, Brisbane was the strongest capital city unit market, registering a gain of 3.2% to a median of $376,500, with Melbourne unit prices up 1.9% to $450,000.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/09/reiasept122.gif"><img src="/images/stories/2012/09/reiasept122thumb.gif"></a>
REIA president Pamela Bennett says the national house price gain of 1.4% over the quarter was “good news for investors too with improving yields thanks to tight vacancy factors and the impact on rental returns coupled with lower borrowing costs”.
“Every capital city with the exception of Adelaide and Hobart experienced strong demand for rental accommodation during the June quarter. National vacancy rates remain low.
“While economists keep a close eye on overseas markets and in particular the Euro crisis, in Australia, a turning point seems to have been reached and the overall mood for the housing sector is one of quiet confidence,” says Bennett.
Bendigo and Adelaide Bank’s executive for retail, Dennis Bice, says the report shows there has been growth across a number of market sectors.
“The results underscore the old property adage that there really are ‘markets within markets’ both at different levels in different cities and in regional centres around the states and territories where good value and solid returns can still be found,” he says.
The report was compiled based on figures supplied by the state and territory real estate institutes, Australian Property Monitors and various state government housing and land departments.</body></html>

lschlesinger-FZcF9M3vE6

Canberra house prices fall 5% in June quarter as nationwide prices are up 1.4%: REIA

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When John Howard candidly told Australians they'd "never had it so good" in 2006, he learned the hard way that the truth doesn't stand a chance against other powerful narratives run in national media – that we're a nation of battlers doing it tough.
The latter story is easy to tell in an era of unusually high private debt, because no matter how many “things” you've bought with somebody else's money, somewhere in your financial subconscious is the knowledge that gearing works both ways – to accelerate your profit in times of growth and multiply your losses in times of recession.
Yesterday's housing finance data should be a wake-up call for both the federal government and opposition, but for the latter in particular – because it still looks most likely that Tony Abbott will preside over the really nasty part of the turn in the nation's private debt position.
Since the onset of the GFC both state and federal governments have used first-home buyer bonuses to stimulate the housing market – that is, to encourage home buyers to borrow more than would otherwise be possible.
The net effect is like drinking a strong coffee to wake up on a long drive. When the first one wears off, you'll need an even stronger one to pump the adrenal glands again; and then a stronger one still until all your energy is burned up and you fall asleep at the wheel anyway.
This week’s ABS data showed a seasonally adjusted decline of 1.8% in the value of home loans approved.
The split between investors and own-occupiers tells the more alarming story – investor commitments, by value, fell a seasonally adjusted 2.7% against a decline in owner-occupier commitments of 1.4%.
And on the horizon is the prospect of Labor cutting generous tax concessions on property for self-managed superannuation fund holders.
Super tax concessions are perhaps the biggest slice of returned tax revenue available to the federal government as it tries to shore up the federal budget.
Lara Tingle reported in yesterday's Financial Review: "Generous capital gains tax breaks for self-managed superannuation funds which invest in property are the government’s clearest target."
In the past four years, SMSFs have ramped up commercial property holdings more than residential property – by 49% and 37% respectively – but it is the housing market that is likely to suffer most if there is a stampede to cash out what was once the “safe as houses” investment.
The counter arguments that have been made in the past four years are good, in theory, but are failing to provide the market support their proponents suggest.
The main arguments are firstly that we have a housing shortage that will drive demand come what may; and, secondly, that the RBA has been “keeping its powder dry” by keeping real interest rates exceptionally high, and rate cuts can always breathe new life into the market.
On the first point, the housing “shortage” is not showing up in new dwellings – there are alternatives to families expanding into new housing stock, such as staying a year or two more with mum and dad, or staying in house-share arrangements. Buyers are holding off buying so as to take advantage of softening prices. This week’s data showed a staggering fall of 6.8% in the number of loans approved for new dwellings.
On the second point – that RBA rate cuts will stimulate further borrowing – economists were dismayed this week that the two rate cuts at the end of 2011 had failed to bump up borrowing, and the jury is still out on whether the 75 basis points of cuts made in May and June can solve this problem.
John Howard's comment that we'd "never had it so good" was made just before the zenith of the global private debt bubble that we now call the GFC.
Since then our savings rate has increased, borrowing appetite has decreased, consumer confidence and retail conditions have tumbled, and only a series of “strong coffees” has kept housing from falling further.
Against this backdrop the Gillard government has continued to issue debt way beyond the stimulus phase of the GFC clean-up, and on top of that has now added around $15 billion in extra spending – in education, national disability insurance, dental care and further asylum seeker processing measures.
Fast forward two years, and a newish Abbott government will likely be dealing with further contraction in the debt-funded part of national consumption and an anaemic or bleeding housing market.
It will also likely be suffering lower corporate tax revenues from mining (the MRRT, which Abbott has vowed to repeal, will be so small as to be virtually irrelevant), and will be slashing public service jobs to try to keep the budget in surplus.
Moreover, if the dollar does eventually follow the terms of trade down – it's currently staying stubbornly high despite coal prices being off 30% and iron ore down nearly 50% so far this year – Australian consumers will begin 'importing inflation'.
All of which means that the moment in which Australians "never had it so good" was probably some time in the past few months.
Get ready, therefore, for many nostalgic references by Labor to the “golden era” of the Gillard government, not the Howard government, during the 44th parliament.
Given the number of ill winds blowing towards Australian households at this time, one has wonder why Tony Abbott wants to be in charge at all.
This article originally appeared on<a href="https://www.businessspectator.com.au/" target="_blank"> Business Spectator.</a>
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rburgess-njBfbKvUvS

Housing finance data should be a wake-up call for government and opposition

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One of Sydney's best-located shopping centres, the Kings Cross Centre beneath the iconic neon  Coca-Cola sign, has been listed for sale by fund manager Challenger.
The retail centre at 82-94 Darlinghurst Road, Potts Point, is anchored tenanted by a two-level maze-like Coles and surrounded by apartment buildings, hotels, bars, restaurants and cafes that make up the social fabric of Kings Cross and Potts Point, one of the most densely populated parts of Sydney.
It forms part of the Challenger Premier Hybrid Property Fund and in 2009 had a book value of just under $26 million.
ASX-listed Challenger is a life insurance and investment management firm managing in excess of $33 billion in assets and is a significant investor in property and infrastructure. It was set up in 1985 and backed by Kerry Packer from 1998, when his Consolidated Media held a nearly 20% stake. James Packer sold this stake in  2009.
An expressions of interest campaign, which closes on October 4, is being led by CBRE’s Steve Lerche and Sashi Makkapati in tandem with City Commercial’s Warren Duncan and Miron Solomons.
Lerche is expecting offers around the $25 million mark and expects interest from private investors and "genuine foreign investor interest".
He says the centre’s highly recognised location below Sydney’s iconic Coca-Cola sign will be a “key attraction for prospective purchasers as will the strength of the tenancy profile”.
In 2004 it traded for $39 million when fund manager HSBC Asset Management bought what was then the Kingsgate Shopping Centre as well as the Coca-Cola sign from New Zealand's Kingsgate Investments.
Challenger acquired the shopping centre when it acquired HSBC’s asset management business in 2005.
The fund manager spent $11 million redeveloping it as part of a wider gentrification wave occurring across Kings Cross, Potts Point and Darlinghurst areas at the time.
The heritage-listed Coca-Cola sign – called by some "the gateway to the cross" – is considered one of Australia’s most recognisable advertising signs.
It was acquired by Coca-Cola Amatil in 2008, when it bought it from Challenger Advertising.
Coca-Cola Amatil had leased the sign since it was built in 1976 and was paying around $1 million a year just before acquiring it.
The shopping centre sits at the base of the Zenith Residences, a 97-apartment complex that was formerly the Millennium Hotel.
Aside from Coles and Liquorland, the centre comprises 24 speciality stores including Pie Face and Flight Centre, four kiosks and four ATMs and has a gross lettable area of 4,429 square metres spanning three levels.
The centre is currently 98% leased, with the Coles and Liquorland occupying more than half of the available retail space (2,600 square metres) on a lease expiring in 2022.
Coles is currently paying base annual rent of just over $1 million with fixed 4% to 5% annual reviews.
When fully leased the centre brings in net income of just over $2 million annually.
The vacant 110-square-metre shop, which faces out onto William Street, is being offered for lease at a gross annual rent of around $140,000.
City Commercial's Warren Duncan says the area has undergone “major gentrification with the revitalisation of William Street, and the establishment of fashionable apartment buildings, hip hotels and trendy bars, restaurants and cafes”.
He says the area’s demographic has evolved to service a growing number of affluent professionals who have significantly altered the character of the suburb.
</body></html>

Buyers sought for Challenger’s Kings Cross Centre below iconic Coca-Cola sign with $25 million expectations

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La Contadina, an iconic Carlton restaurant on Rathdowne Street, is going under the hammer after 30 years of continuous operation by the same family.
The Mico family have run the restaurant as a classic Melbourne institution but have decided to sell up.
Guy Naselli and Raff De Luise from ICR Property Group are expecting $2 million plus at its September 27 auction.
The Mico family arrived in Australia from Italy in 1967 and have been running restaurants since then. Giovanni, the current owner of La Contadina, took over family affairs in 1975.
Not only did he run the restaurant, he has apparently also been a singer an actor and a film director.
The Mico family are very fond of the celebrities who have eaten at the restaurant which even included the much photographed former Prime Minister John Howard.
The restaurant was recently listed for lease at $1450.00 per week plus GST and all outgoings, but that leasing fell through and it’s being offered with vacant possession.
Naselli says the property could lease at $120,000 per annum.
The solid brick building is a two storey freehold with a first floor residence or office.
The walls of the restaurant are adorned with photos of Carlton celebrities and other memorabilia.
Naselli says the furniture and decorations aren’t included in the sale but there is the possibility to negotiate with the owners after settlement.
<img src="/images/stories/2012/09/howard.jpg">
It sits on 150 square metres of land on the east side of Rathdowne Street, 600 metres north of the exhibition gardens.
The heritage listed property was briefly listed for sale in 2011 through the same agent. It was also listed in 1997 for $385,000.
“The original subdivision dates abck to 1948, so the building age must be pretty close to that,” says Naselli.
“It’s been getting a fair bit of interest. Including a couple of inquiries from developers.”
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awalsh-7Ub9EypybQ

Iconic Carlton restaurant La Contadina listed with $2 million-plus expectations

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The Queensland state government will scrap the $7,000 first-home owners' grant with immediate effect, with the new $15,000 handout for those building a new home to begin tomorrow.
Details of the new 'first home owner construction grant' were announced today by Treasurer Tim Nicholls delivering the first Liberal Queensland budget in 15 years.
The immediate introduction of the new $15,000 grant is designed to prevent an artificial lull in first-home buyer activity, as has happened in NSW, where the $15,000 handout will begin October 1. The existing $7,000 first-home owners' grant will remain in place in NSW until then.
Nicholls called the new grant the most generous first-home buyer handout in Australia.
Although he did not explain the claim, proportionally Queensland's is a more generous scheme than that in NSW, given median house and unit prices in Brisbane are $430,000 and $350,000, compared with $590,000 for a Sydney house and $470,000 for a Sydney unit.
Nicholls said the $7,000 first-home owners' grant – introduced in July 2000 – had “outlived its usefulness” and had just added $7,000 to the cost of a house.
“First-home buyers have been competing with each other, which just means higher prices,” he said.
Nicholls said the new $15,000 first-home buyer new home grant was based on discussion with many in the construction industry and many economists, who called for the $7,000 grant to be removed and replaced.
“We have listened and acted.”
However, he did not explain how the $15,000 handout would not add to the cost of a new house in the same way he claimed the $7,000 had pushed up existing house prices.
</body></html>

New 'most generous' Queensland $15,000 first-home buyers new home grant to begin tomorrow: Treasurer Tim Nicholls

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Unit and townhouse prices in Brisbane increased by 3.8% over the June quarter to a median of $402,500 but sales volumes fell as some buyers awaited stamp duty changes that kicked in on July 1, according to new figures published by the Real Estate Institute of Queensland (REIQ).
The strong quarterly performance means unit prices are now down just 1.5% on a year ago, with a 12-month median price of $399,000.
The REIQ noted an increase in the number of high-end unit sales in Brisbane city and city-fringe suburbs, which it says “augurs well for confidence levels amongst buyers”.
It also noted an  increasing number of first-home buyers and investors in the market (these two groups are unaffected by the July 1 stamp duty changes) compared with owner-occupiers over the June quarter.
There was a mixed bag of results for inner-city suburbs, which are the focus of a wave of new apartment projects, with around 40 in various stages of development and construction.
In the Brisbane CBD, where Harry Triguboff’s Meriton group is building Brisbane’s tallest residential tower, the 81-level Infinity tower featuring 546 apartments, prices climbed 37.2% to a median $532,500 to be down only 0.5% year-on-year
In Hamilton, site of Devine and Leighton Holdings $500 million Hamilton Harbour mixed-use development along the northern banks of the Brisbane river, unit and townhouse prices were up nearly 10% over the quarter to a median of $445,000 – down 0.4% year-on-year.
Also along the northern banks of the Brisbane River, Newstead unit prices rose 57.6% over the quarter to a median of $750,000 due to a high number of waterfront properties. Year-on-year they are down nearly 13%.
In neighbouring New Farm, apartment prices rose nearly7% to a median of $510,000 but are down 4.8% year-on-year.
However, over the quarter, median prices fell in 6.4% in Fortitude Valley ($379,000), 17.1% in the West End ($487,000) and 16.7% in another development hub, Woolloongabba ($400,000).
<table border="0" cellpadding="0" cellspacing="0" width="394">
<colgroup>
<col width="175">
<col width="73">
<col width="73" span="2">
</colgroup>
<tbody>
<tr height="68">
<td height="68" width="175">Locality</td>
<td width="73">Median Sale Mar12</td>
<td width="73">Qtrly change</td>
<td width="73">1yr change</td>
</tr>
<tr height="16">
<td height="16">BRISBANE</td>
<td></td>
<td></td>
<td></td>
</tr>
<tr height="16">
<td height="16" width="175">BRISBANE CITY (LGA)</td>
<td>$402,500</td>
<td>3.8%</td>
<td>-1.5%</td>
</tr>
<tr height="16">
<td height="16" width="175">ANNERLEY ~ * t</td>
<td>$350,000</td>
<td>-13.6%</td>
<td>-2.5%</td>
</tr>
<tr height="16">
<td height="16">AUCHENFLOWER ~</td>
<td>$477,500</td>
<td>32.6%</td>
<td>-2.9%</td>
</tr>
<tr height="16">
<td height="16" width="175">BRISBANE CITY ~ *</td>
<td>$532,500</td>
<td>37.2%</td>
<td>-0.5%</td>
</tr>
<tr height="16">
<td height="16">BULIMBA ~</td>
<td>$497,000</td>
<td>-7.5%</td>
<td>0.4%</td>
</tr>
<tr height="16">
<td height="16">CALAMVALE ~</td>
<td>$365,000</td>
<td>17.7%</td>
<td>0.0%</td>
</tr>
<tr height="16">
<td height="16" width="175">CAMP HILL</td>
<td>$387,750</td>
<td>1.4%</td>
<td>-10.1%</td>
</tr>
<tr height="16">
<td height="16" width="175">CARINA</td>
<td>$447,500</td>
<td>-2.5%</td>
<td>1.2%</td>
</tr>
<tr height="16">
<td height="16" width="175">CARSELDINE * t</td>
<td>$410,000</td>
<td>20.2%</td>
<td>0.3%</td>
</tr>
<tr height="16">
<td height="16" width="175">CHERMSIDE *</td>
<td>$368,000</td>
<td>5.9%</td>
<td>-10.3%</td>
</tr>
<tr height="16">
<td height="16" width="175">CLAYFIELD * t</td>
<td>$355,750</td>
<td>-3.5%</td>
<td>7.6%</td>
</tr>
<tr height="16">
<td height="16">COORPAROO</td>
<td>$345,000</td>
<td>-3.6%</td>
<td>-3.4%</td>
</tr>
<tr height="16">
<td height="16" width="175">EAST BRISBANE ~</td>
<td>$424,500</td>
<td>15.5%</td>
<td>-6.7%</td>
</tr>
<tr height="16">
<td height="16">EIGHT MILE PLAINS</td>
<td>$350,000</td>
<td>6.1%</td>
<td>-9.1%</td>
</tr>
<tr height="16">
<td height="16">EVERTON PARK ~ *</td>
<td>$455,000</td>
<td>3.4%</td>
<td>-9.1%</td>
</tr>
<tr height="16">
<td height="16">FORTITUDE VALLEY *</td>
<td>$379,000</td>
<td>-6.4%</td>
<td>3.9%</td>
</tr>
<tr height="16">
<td height="16" width="175">GREENSLOPES</td>
<td>$331,000</td>
<td>3.4%</td>
<td>-5.6%</td>
</tr>
<tr height="16">
<td height="16" width="175">HAMILTON * f</td>
<td>$445,000</td>
<td>9.9%</td>
<td>-0.4%</td>
</tr>
<tr height="16">
<td height="16" width="175">INDOOROOPILLY</td>
<td>$374,000</td>
<td>-8.8%</td>
<td>6.0%</td>
</tr>
<tr height="16">
<td height="16" width="175">KANGAROO POINT ~</td>
<td>$495,000</td>
<td>25.8%</td>
<td>-12.5%</td>
</tr>
<tr height="16">
<td height="16" width="175">KEDRON ~</td>
<td>$440,000</td>
<td>27.4%</td>
<td>14.5%</td>
</tr>
<tr height="16">
<td height="16" width="175">KELVIN GROVE *</td>
<td>$472,500</td>
<td>18.1%</td>
<td>5.1%</td>
</tr>
<tr height="16">
<td height="16">MOOROOKA * t</td>
<td>$398,750</td>
<td>11.7%</td>
<td>-0.5%</td>
</tr>
<tr height="16">
<td height="16" width="175">MORNINGSIDE</td>
<td>$460,000</td>
<td>10.8%</td>
<td>4.1%</td>
</tr>
<tr height="16">
<td height="16">NEW FARM</td>
<td>$510,500</td>
<td>6.9%</td>
<td>-4.8%</td>
</tr>
<tr height="16">
<td height="16" width="175">NEWMARKET *</td>
<td>$407,000</td>
<td>3.9%</td>
<td>-9.5%</td>
</tr>
<tr height="16">
<td height="16" width="175">NEWSTEAD ~ * f</td>
<td>$750,000</td>
<td>57.6%</td>
<td>-12.9%</td>
</tr>
<tr height="16">
<td height="16" width="175">NUNDAH ~ *</td>
<td>$345,250</td>
<td>1.8%</td>
<td>-7.7%</td>
</tr>
<tr height="16">
<td height="16" width="175">SOUTH BRISBANE ~</td>
<td>$433,500</td>
<td>1.3%</td>
<td>5.9%</td>
</tr>
<tr height="16">
<td height="16" width="175">SPRING HILL</td>
<td>$392,000</td>
<td>5.2%</td>
<td>-0.6%</td>
</tr>
<tr height="16">
<td height="16">ST LUCIA ~ *</td>
<td>$480,000</td>
<td>9.1%</td>
<td>9.7%</td>
</tr>
<tr height="16">
<td height="16" width="175">TARINGA ~</td>
<td>$393,000</td>
<td>-20.0%</td>
<td>22.8%</td>
</tr>
<tr height="16">
<td height="16">TENERIFFE ~ * f</td>
<td>$580,634</td>
<td>8.5%</td>
<td>0.0%</td>
</tr>
<tr height="16">
<td height="16" width="175">TOOWONG</td>
<td>$438,000</td>
<td>8.7%</td>
<td>8.8%</td>
</tr>
<tr height="16">
<td height="16" width="175">WEST END * f</td>
<td>$486,800</td>
<td>-17.1%</td>
<td>0.8%</td>
</tr>
<tr height="16">
<td height="16" width="175">WOOLLOONGABBA *</td>
<td>$400,000</td>
<td>-16.7%</td>
<td>6.7%</td>
</tr>
<tr height="16">
<td height="16" width="175">YERONGA</td>
<td>$410,000</td>
<td>8.6%</td>
<td>-1.6%</td>
</tr>
</tbody>
</table>
Source: REIQ
~ Medians affected by varying quality of stock sold * Medians affected by varying quantities of new properties sold f Medians affected by varying numbers of waterfront properties sold t Medians affected by varying numbers of townhouse/villas sold - Due to the nature of properties in this suburb, some group titled property sales have been omitted
The stamp duty concession provides a concessional stamp duty rate of 1% up to a value of $350,000, with stamp duty charged at normal rates for the remaining value of the home purchase.
However, there may be an artificial lull in the number of first-home buyer purchasing new apartments in the final months of 2012 depending on when the state government new $15,000 handout for new home purchase kicks-in. The government has plans to scrap the $7,000 first-home owner grant.
“As was the case with the house market, there was reduced unit and townhouse sales activity over the June quarter as many buyers waited for the return of the stamp duty concession on 1 July,” REIQ chief excecutive Anton Kardash says.
“However, as first-home buyers and investors were unaffected by the stamp duty change, these buyers were more prominent over the June quarter.
“Given the affordability of units and townhouses, as well as their often more central locations, first-time buyers and investors often compete for this type of property, which may be partly responsible for the increases in median prices we experienced over the period.”
 
 
 
 
 
 
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Brisbane unit prices up 3.8% in sluggish June quarter but mixed-bag of results for apartment development hotspots: REIQ

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Last week, Terry Ryder once again stressed the argument against issues of affordability, citing anyone seeing a “crisis in affordability needs to get back to the drawing board” and “stop wasting everyone’s time”. 
<a href="https://www.propertyobserver.com.au/residential/there-is-no-australian-housing-affordability-crisis-terry-ryder/2012090456393" target="_blank">According to Ryder</a>, we need do nothing to address housing affordability, and the only participants pushing prices higher are emotionally driven second-time buyers who get a little “wallet happy” when purchasing their dream homes.
Although Australia may still possess a good proportion of owner-occupiers to renters – enabling some in the industry to close their eyes to distress calls coming from the increasing numbers locked out altogether – both state and federal governments would be foolhardy to ignore the downward trend in ownership and the reducing pool of first-home buyers.
What may seem in some people’s eyes nothing more than a molehill on a well-trodden historical path is slowly threatening to evolve into a future generation’s mountain.  If we sit back today and tell everyone to “smell the roses”, we risk leaving our grandchildren to inherit a problem unable to be ignored, prevented or for that matter, fixed.
You don’t need to look far for the evidence.  With each census released the level of home ownership slides downwards, the numbers in mortgage stress or struggling to service rising yields increase, not to mention the astronomical rise in residents living in “rooming” accommodation – up fourfold since 2006.  It’s important not to dismiss the factors associated with the above trends because the growing problem – wherever you choose to lay the blame – is undeniable.
It would also be foolish to ignore – as some would have us do – lessons we can reap from the far larger housing crisis occurring in Europe and the USA. We have fared better for a number of reasons; however, this doesn’t dismiss the flaws associated with high levels of debt-financed ownership.
Australia still has a comparatively low number of mortgage defaults, however, the rising numbers suffering mortgage stress are enduring their own crisis trying to balance the family budget.  Once again this is broadly evidenced in ABS data – which goes to substantiate other data proving that housing is increasingly used as a buffer to meet welfare needs, with greater numbers dipping into the pot of reducing equity and reaching retirement whilst still servicing mortgage repayments.  Once again, you don’t need to look far for the evidence – I have cited the data in previous articles I’ve written for Property Observer. 
Should our economy go belly-up, there is little protection against the investment risks associated with this trend.  In such a circumstance, the precarious nature of the situation would be fully exposed and felt by a majority – not just the minority we’re being told to ignore.
Policies such as the first-home owners’ grant and negative gearing were put in place under the guise of aiding affordability and increasing the supply of rental accommodation.  However, based on the data above they are, to a large extent, failing to address either.  Proponents arguing that the first-home owners’ grant and subsequent GFC first-home owners’ boost did nothing to fuel an unprecedented boom of price growth during 2009 because it only applied to a minority show a degree of ignorance on the broad effects of market influences.
Certainly, first-home buyers are a minority; however an increased surge at the bottom of any market automatically spurs momentum across the buying landscape as a whole.  The snowball effect witnessed in 2009 was a result of the first-home owners’ boost stimulating a buzz of excitable market activity, along with unnaturally low interest rates, and a consequential jump in the average size of home loans across all price points.  In short – it was fuelled by an impulsive snowball of cheap credit.
It encouraged first-time buyers to rush in – many opted for new homes and off-the-plan developments, and they were given as much as $30,000 by the government for these purchases.  Consequently they purchased into a bubble, and as soon as the incentives ended, prices in the new estates plummeted.  These are the estates Ryder correctly points out to be comparatively affordable.  Of course they are – few want to live there unless there’s a large dangling carrot clouding the way.
I’m still coming into contact with vendors who – riding high on the wave of momentum – purchased into the sparsely facilitated fringe suburbs and four years later continue to fund a mortgage worth more than their principal place of residence.  They are essentially locked into an estate, sparse on amenities, unable to sell because buyers not buoyed by the momentum of a rising market and Mickey Mouse grants take the time to think before they buy. There is no activity to motivate growth or build a pool of equity, and consequently a proportion of vendors are well and truly stuck in their own housing nightmare.
 
<hr class="system-pagebreak">
 
The other minority argument citing investors as only being a small uninfluential 30% proportion of activity – is once again somewhat misleading and only applicable if you lump Australia’s entire investment market under one dismissive umbrella.  Price rises caused by this demographic occur because 93% of investor transactions are in the highly sought-after inner-suburban localities where most people need and want to live for work purposes.  Consequently, the number of renters servicing unprecedented yields in established capital city locations – up 49.2% over the previous five years – now frequently exceeds 50%.
Furthermore, 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 rises closer to 70% and in some states exceeds even this.  Apartments are broadly considered to be the stepping stone to enable first-home buyers to get an initial foothold. Therefore, investors and first-home buyers are generally targeting the same reducing pool of established stock.  Two minorities competing for the same properties, in the same areas, at the same price points and the problem no longer looks quite so “minor”.
This is by no way an argument to reduce the amount of investors Australia fosters, but rather reduce competition in established home buyer markets (something negative gearing in its current capacity fails to do) and encourage investment in outer-suburban and regional townships. In doing so, we not only increase the supply of affordable accommodation, but increase pressure to fund these regions with public infrastructure – most importantly, train lines and other essential community facilities that are vital to stimulate growth.
This was principally why the urban sprawl was successful back in the 1800s when Melbourne (a city ahead of others in this regard) was in the initial stages of outer-suburban development.  However, with the onset of the motor car in the 1950s it was all too easy to excuse the need to extend public transport systems further outwards and consequently, following a population boom, we’re now gridlocked with over congested inefficient transport arteries.  Regardless of whether people choose to commute by car or not, I have yet to meet one buyer who is happy being locked into a car-dependent lifestyle.
There is not one quick fix answer to the question of affordability or how to tackle very real and growing crisis. However, boxing it up under the guise of a “minority” or dismissing subsequent commentary as an exaggerated headline-grabbing indulgence would be overwhelmingly short-sighted and foolhardy.
For millions of existing owners, their future security is dependent on maintaining the value of their properties and utilising the existing pool of equity – however for a growing proportion of young and old Australians, the cost of accommodation is becoming unmanageable even on the average wage.
It’s a 21st-century quandary, and getting the balance right will take time and a number of long-term policy changes – however, the issue cannot be ignored.  A few months ago in April, the Australian Housing and Urban Research Institute published its own analysis of the crisis in a report – funded by the government – entitled Sustaining home ownership in the 21st century; emerging policy concerns In it the authors pose a number of possible solutions, citing:
“We believe there is clear evidence that home ownership will prove unsustainable for increasing numbers of Australians in the 21st century.”
I too believe there is clear evidence of a growing crisis in housing affordability – and it’s one that requires an attitudinal shift from the view that it’s simply limited to a “minority” market.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
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catherinecashmore-6LXia3pPQj

Australia clearly has a growing affordability crisis

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Will China's growth pick up again? And will it continue to support both Australia and commercial property? Well, that really depends upon who it is you're asking.
Most miners are somewhat guarded; many journalists are painting a gloomy picture; and Labor politicians seem to be arguing among themselves.
So no wonder most of us are confused.
And whenever the general community is confused, it takes what seems to be the safest route and simply does nothing.
Let's peek behind the Chinese curtain
Perhaps the best place to begin is by talking with someone like leading architect Bruce Henderson, who is currently involved in designing major projects in Dilian, China.
He is right at the coalface — dealing with those making the decisions on Chinese future economic progress.
And his explanation of where things stand is alarmingly simple.
Unlike other major economic powerhouses, China only has one political player — the Communist Party.
The administration of that party changes every 10 years, and this is due to occur towards the end of this year. But more on that later.
The 10% to 13% annual growth in China (which required our iron ore and coal) has been driven by massive construction — mainly in new housing and infrastructure.
The government controls the release of available land, by selling long-term leases to developers.
Many of the recent massive housing projects have occurred by reclaiming farmland. (In other words, a 600-unit housing project may contain 100 government "pre-sales" to those rehoused farmers.)
Most of China's recent decline in growth (still at a healthy 8% per year) has occurred through the government's cut-back in granting new leases to developers.
With housing construction at a standstill, there is no income from land sales and the work for new roads, bridges and other infrastructure cannot proceed.
This is what has impacted adversely upon our mining sector.
Understanding the "Chinese logic"
Given that China only has one ruling political party, Communist leaders are solely concerned with image preservation.
Therefore, the outgoing administration has merely "responded to global pressure" and brought China's runaway growth under control — and in the process, orchestrated a soft landing.
When the new administration assumes control later this year, it will heap praise upon the outgoing administration for its "careful and prudent management of the economy".
The, the new administration will make itself look great by stimulating the economy, once again granting land leases for developers to recommence residential construction.
Now it all starts to make sense.
Unlike what you would find in Western countries, the incoming Chinese administration will not be "bagging" the outgoing administration.
Instead, its aim is to position both as having the country's best interests at heart — thereby, allowing the Communist Party to be the overall winner.
Bottom line: Right now, China is about to overtake the US as the world's leading economy.
However, next year (with the new administration in place), China's growth will again begin to surge. And this will not only flow through to Australia's economy, but also provide a welcome boost for overall global growth as well.
Therefore, as a commercial property investor, you can expect to see some solid gains through to 2018-19.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

What China's soft landing means for Australian commercial property investors: Chris Lang

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Since the onset of the global financial crisis in 2008, growth in capital city home values has been much more subdued.
Apart from the economic factors, the slowdown in capital gains can also be attributed to the fact that consumers have increased their level of savings and have subsequently reduced their levels of spending (particularly for housing).
Over the five years to August 2012, home values across the combined capital cities increased at an average annual rate of just 2.4%. Over recent years the rate of capital gains in the housing market has been slowing as the cost of purchasing a home has risen.
Breaking down the market performance into five-year increments highlights the recent slowdown in value growth. Between August 1997 and August 2002, capital city home values increased at an average annual rate of 12.0%.
This rate of growth slowed to 8.4%pa between August 2002 and August 2007 and has further slowed to 2.4%pa over the most recent five years. These results clearly show that as housing has become more expensive over time and since the onset of the GFC capital gains have significantly slowed.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/09/rpsept102.gif" title="Click to enlarge"><img src="/images/stories/2012/09/rpsept102thumb.gif"></a>
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
In every capital city, average annual capital gains in the market have been stronger over the first five years of the past decade than they have been over the most recent five years. In fact, across each city except Sydney, the rate of average annual growth over the past five years has been less than half that of the previous five years. Further highlighting the slowdown is the fact that over the last decade, every city except Sydney recorded average annual capital gains of more than 6%, while over the past five years the best performing capital city, Darwin, has recorded average annual gains of just 4.6% per year. Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/09/rpsept1031.gif" title="Click to enlarge"><img src="/images/stories/2012/09/rpsept103thumb.gif"></a>
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
The rate of inflation has been recorded at an average of 2.8% on an annual basis over the past five years. Given this, growth in home values over the past five years has been below the rate of inflation in Brisbane (0.2%pa), Adelaide (2.4%pa), Perth (-0.9% pa) and Hobart (-0.6%pa); while Sydney values have grown in line with inflation.
<img src="/images/stories/2012/09/capscombined.gif">
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
 
<hr class="system-pagebreak">
Across individual capital city housing markets, the table highlights the weaker market conditions prevalent across all capital cities over the past five years. For houses, capital gains have been lower over the most recent five years than the previous five years across each city. For the unit market, Sydney is the only city that has recorded a superior market performance over the past five years compared to the previous five years. Click to enlarge
 
<a rel="shadowbox" href="/images/stories/2012/09/rpsept104.gif" title="Click to enlarge"><img src="/images/stories/2012/09/rpsept104thumb.gif"></a>
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
Over the past decade, Darwin and Perth have been the standout performers for capital gains for houses, with this trend largely fuelled by exceptional growth between August 2002 and August 2007. For units, Hobart and Darwin have been the standout performers over the decade with the exceptional growth once again fuelled by the performance over the first five years of the decade. Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/09/rpsept105.gif" title="Click to enlarge"><img src="/images/stories/2012/09/rpsept105thumb.gif"></a>
Source: <a target="_blank" href="https://www.myrp.com.au/">RP Data</a>
Another important trend which has emerged over the past five years is the superior capital growth performance of units compared to that of houses. Across the combined capital cities, units have recorded average annual growth of 3.6% over the past five years compared to 2.2% growth annually for houses. Across individual capital cities, the unit market performance has outperformed that of detached houses over the past five years in Sydney, Melbourne, Brisbane, Perth and Hobart. This is most likely a response to affordability constraints present in the market and subsequently buyers seeking more affordable alternatives to detached houses.
This data highlights the significant increase in home values over recent years. The much more subdued growth in home values over the past five years is likely to be a better indication of how capital gains are likely to play out over the coming years rather than the exceptional value growth recorded over the first five years of the past decade.
Cameron Kusher is senior research analyst at <a target="_blank" href="https://www,myrp.com.au">RP Data</a>.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
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ckusher-ujnxiKuFQs

Residential property capital growth has stalled in five years since GFC: RP Data's Cameron Kusher

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Fairfield Chase Retail Centre, a Spencer Street property in Fairfield, NSW, with development approval for 119 units, has has passed in at auction on a vendor bid of $9.5 million.
Jones Lang LaSalle agent Anthony Bray is in further negotiations with a buyer. The asking price for the property is $10 million.
<img width="470" src="/images/stories/2012/09/fairfieldchase.jpg">
The centre currently earns $1,354,000 per year in rent, with 50% of that coming from the healthcare anchor tenant, which has a lease to 2018.
Along with the anchor tenant there are 22 others, including the Fairfield fruit market.
The building comes with development approval for two 76-metre residential towers with a total 119 one-bedroom, two-bedroom and three-bedroom apartments.
The site currently has 171 parking spaces, and the approved plans would add two further levels of parking for a total of 272 car spaces.
The Urbis-designed plans would involve the demolition of the existing retail centre to build a new medical centre, supermarket and specialty stores.
The plans were approved last year, so a new buyer would have four years before they lapse.
The shopping centre tenants are the subject of termination and/or relocation clauses, which agent Anthony Bray says provides flexibility for any buyers to realise the full development potential.
The 5,160-square-metre property is in the centre of Fairfield, nine kilometres south of Parramatta, between Spencer Street, Smart Street and Council Lane.
It went to auction on August 30.
Bray says properties like this are harder to come by.
“There are lot more properties like this being developed than there are approved.”
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