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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Unfortunately, you simply can't avoid experiencing some pain whenever structural changes occur within the economy.
However, these changes also provide considerable opportunities for the shrewd commercial property investor. But more on that later.
The reality
It is a huge mistake when governments rush to provide financial support to declining manufacturing industries.
Clearly, those industries will never sustain a profitable position, given Australia's relatively small population, and the consequential short production runs.
The sad reality is that some companies need to be allowed to fail (or be absorbed) so the more competitive and profitable companies can become more productive.
The unemployment truth
There has been much publicity given to recent layoffs from companies downsizing. But interestingly, unemployment levels have remained steady — and in some months, even fallen.
Sure, the mining sector is chasing more employees — to the point of having to "import" them. But not all those laid off are heading west or north. And besides, the mining boom will not continue for ever.
Looking deeper 
As such, there must be something else going on within the Australian economy that is helping to sustain growth now, and into the future.
<img src="/images/stories/2012/08/langaug27.gif">
Source: <a href="https://www.afr.com.au/" target="_blank">Australian Financial Review</a>
And the above graph provides you with the answer.
The sector-by-sector comparison shows that services alone currently contribute around 77% of Australia's GDP.
And manufacturing, mining and agriculture combined are contributing only about 23% of GDP.
Looking forward
Therefore, Australia needs to focus upon its obvious strength — providing highly educated specialist skills to local and overseas markets.
For example, our mining firms have not flourished simply because Australia has resources, which the rest of the world needs.
Much of the profit stems from the cutting-edge engineering solutions adopted by our companies — which have provided them with clear cost advantages.
Furthermore, many of the world's breakthrough technologies and techniques have been developed by Australian scientists, doctors, engineers, architects and the like.
Bottom line: This is where governments need to be investing heavily — rather than propping up failing industries with little or no competitive advantage.
Compared to many Western countries, Australia already punches well above its weight for productivity in the knowledge and service sectors.
And for commercial property investors, this surging service sector will always be needing offices, design studios and related accommodation into the foreseeable future.
That augers well for the suburban strata-office market.
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

Suburban strata office market looking good for commercial property investors

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<img src="/images/stories/2012/08/5point08percent.gif">
The rental yield for houses in regional Victoria, according to Residex. The median house rent is $315 per week, which is exactly the same as this time last year.
 
<hr>
 
<img src="/images/stories/2012/08/5point29percent.gif">
The rental yield for houses in regional South Australia, according to Residex. The median house rent is $255 per week, which is up 2% from this time last year.
 
<hr>
 
<img src="/images/stories/2012/08/5point49percent.gif">
The rental yield for houses in regional New South Wales, according to Residex. The median house rent is $360 per week, which is up 3.45% from this time last year.
<hr>
<img src="/images/stories/2012/08/5point5percent.gif">
The rental yield for houses in regional Tasmania, according to Residex. The median house rent is $270 per week, which is up 3.85% from this time last year.
 
<hr>
 
<img src="/images/stories/2012/08/5point58percent.gif">
The rental yield for houses in regional Queensland, according to Residex. The median house rent is $390 per week, which is up 4% from this time last year.
 
<hr>
 
<img src="/images/stories/2012/08/5point74percent.gif">
The rental yield for houses in regional Western Australia, according to Residex. The median house rent is $375 per week, which is 13.64% up on this time last year.
<hr>
<img src="/images/stories/2012/08/5point88percent.gif">
The rental yield for houses in regional Northern Territory, according to Residex. The median house rent is $540 per week, which is up 4.85% from this time last year.
<a target="_blank" href="https://www.propertyobserver.com.au/landlords/melbourne-s-395-is-lowest-of-capital-city-house-rental-yields-residex-state-by-state-analysis/2012082156145">Residex has also compiled a list of house rents for landlords in capital cities.</a>
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Victoria's regional house landlords reap $315 a week: A state-by-state rental yield analysis: Residex

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The building and telecommunications industries are expected to pick up in the next few years as the mining sector slows, although other businesses are set to struggle, according to a new report. 
BIS Shrapnel has released forecasts for resources, health services, telecommunications, wholesale trade, building, education, retail, manufacturing, utilities and administration. 
According to BIS Shrapnel, mining investment will continue to underpin activity over the next few years. 
“Mining investment will continue to grow, albeit more slowly, for a few years yet,” says BIS Shrapnel chief economist Dr Frank Gelber. 
But as mining investment peaks in 2014 and starts to decline, non-mining investment will stabilise and start to pick up, taking over as the engine of growth, BIS Shrapnel said in its report. 
Stock shortages, population growth and lower interest rates should stimulate the housing market and dwellings investment, according to the report. 
Meanwhile, non-mining businesses “are not investing enough”. Current economic growth will eventually absorb excess capacity, prompting the next round of business investment. 
“That will impact on the performance of different industries,” Gelber says. 
BIS Shrapnel expects the building industry to gradually improve, supported by a recovery in dwellings building from late this year. 
Next year, non-dwelling building should also pick up as supply tightens after many years in the doldrums. 
“And, remember, mining investment is still rising,” Gelber says. 
“That means overall investment in the construction industry should grow strongly over the next year, but employment will remain subdued.” 
Another area where investment is set to expand rapidly is in telecommunications. 
This is consistent with recent announcements by Telstra, and will be further supported as the private sector invests to take advantage of the National Broadband Network. 
This investment will be accompanied by increased output and employment in the telecommunications industry. 
Meanwhile, education is likely to stabilise after contracting for several years. 
The annual value of exports of education services has fallen by nearly 20% over the past two years, according to BIS Shrapnel, to below $15 billion from $18 billion in 2009-10. 
This is due to the fact that the number of foreign students in Australia has plummeted, deterred by the high Australian dollar, the weak global economy and regulatory changes in Australia. 
While these factors are still in play, and are therefore depressing the level of activity, BIS Shrapnel does not expect them to become any more intense. 
As a result, growth in the education industry should return, supported by ongoing demand from Australian students as the population grows and government spending on education increases. 
Retail should also continue its recent recovery, supported by the current low level of interest rates, increased household incomes and continued growth in domestic demand more generally. 
The generally improved conditions should benefit transport, postal and warehousing industries. 
The accommodation industry is a mixed bag, with CBD hotels benefiting from strong business travel, but tourism continuing to be affected by the high dollar. 
The high dollar – coupled with rising production costs and weakness in key international markets – will also continue to weigh heavily on the majority of manufacturing industries. 
However, some sub-sectors are benefiting from the mining investment boom, while other sub-sectors will benefit from increased building. 
“Nevertheless, we expect low output growth in manufacturing over the next year, with further declines in profitability, investment and employment,” the report says. 
Output growth in the electricity, gas and water industries should also remain subdued as businesses and consumers continue to look for ways to cut their energy usage amid rising costs.
This article originally appeared on <a href="https://www.startupsmart.com.au/" target="_blank">StartupSmart</a>.
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Building and telco sectors set to lead post-mining surge: BIS Shrapnel

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According to the recently released National Accounts data for March 2012, mining activity accounted for 7.7% of the country’s Gross Domestic Product (GDP).

Although this may not sound overly significant, the only other items that contributed a greater amount to overall GDP were: financial and insurance services (9.8%), ownership of dwellings (8%) and construction (7.8%). Note that ownership of dwellings is reflective of the value of all dwellings plus other items, including agency fees, repairs and maintenance, loan application fees and other miscellaneous expenses.
Despite the fact that mining accounts for 7.7% of Australia’s economic growth, employment data from May 2012 shows that only 2.4% of Australians are employed in mining. Of course the number is likely higher when you consider services with links to mining. However, it is clear that the size of the workforce is not commensurate with the sectors current importance to economic growth.
Click to enlarge
<a href="/images/stories/2012/08/rpaug272.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/rpaug272thumb.gif"></a>
The first chart shows that despite the magnitude of the current mining and resources boom, mining’s overall contribution to GDP has changed very little over the past 25 years.
Based on this figure it is clear that the mining sector is currently a very important component of Australia’s economic growth and intertwined with that is the importance of the housing sector, with ownership of dwellings accounting for 8% of GDP.
Across the housing market a majority of regions detailed have recorded an increase in median selling prices over the past 12 months. In the most extreme example, <a href="/news">median selling prices have risen by 30.7% over the year across the Isaac council area</a>, which takes in much of Queensland’s Bowen Basin. The Whitsunday region, including the towns of Bowen and Port Pirie, is the only region that has recorded a decline in median selling price.
Over the past 10 years all regions except Muswellbrook (9.7% pa) and Kalgoorlie/Boulder (9.6% pa) have recorded average annual growth in median selling price in excess of 10%pa. Once again, Isaac is the standout with median prices increasing at an average annual rate of 32.3%.
Rental rates have also shown robust growth over recent times, highlighting the impact that a lack of new housing supply can have on some of the boom mining towns. Rents have increased over the past year across each region except Port Pirie and have risen by 88.2% across the Isaac council region.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/rpaug273.gif"><img src="/images/stories/2012/08/rpaug273thumb.gif"></a>
Across the unit market there is typically a much lower supply of properties in these mining regions than there is for detached houses. While most of the council areas detailed recorded an increase in median house price over the year, median unit prices fell or were unchanged in nine of the 14 regions detailed. Despite the typically sluggish growth in prices over the past year, most have recorded strong increases over the past 10 years, albeit not typically as strong as the growth in house prices.
 
<hr class="system-pagebreak">
Unit rental rates have generally recorded quite strong increases over the past 12 months across the regions. This is likely due to the fact that unit rents are typically cheaper than those of detached houses and with many companies becoming more conscious of the costs associated with housing mining employees they are looking for more affordable alternatives such as units.
 
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/rpaug274.gif"><img src="/images/stories/2012/08/rpaug274thumb.gif"></a>
Overall, many of the major regions linked to the mining and resources sector have recorded increases in both median sales prices and rental rates over the year. With commodity prices seeming to have recently peaked, based on the RBA Commodity Price Index prices are down by 9.8% from their peak. Despite the recent fall, thanks to the surge in commodity prices since early 2009, the index remains 13.2% above the previous September 2008 peak. Whether the fall away in prices is enough to dampen the sector is yet to be seen.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/rpaug275.gif"><img src="/images/stories/2012/08/rpaug275thumb.gif"></a>
A number of miners have already flagged that they are going to cut back on spending and some have already announced job losses. With the rate of growth in the Chinese economy slowing to a more sustainable pace it will be important to see what impact these factors have on mining communities over the coming year.
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 href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
Photo of Parker Point loading facility Western Australia courtesy of Rio Tinto.
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Property ownership contributes more to Australia's GDP than mining: Cameron Kusher

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<img src="/images/stories/2012/08/350k.gif">
The net annual rental that Furniture &amp; Bedding will pay to lease a 9,601-square-metre office and warehouse facility at Clayton in Melbourne’s south-east. Director of Savills Notting Hill office Lynton Williams negotiated the three-year deal at 106 Fairbank Road on behalf of a private investor.
 
<hr>
 
<img src="/images/stories/2012/08/42k.gif">
The net gross face rent per annum that L.F Fitness For Fun Pty Ltd will pay to lease a brand new 275-square-metre showroom at 343 Reserve Road, Cheltenham. The lease is for five years plus renewal options. The lease was negotiated by Sasan Misaghian from Colliers International. The lessor is Keasment Pty Ltd. The showroom is part of a development featuring five recently built showroom/warehouses located just off Bay Road and in close proximity to Neapean Highway.
 
<hr>
 
<img src="/images/stories/2012/08/656110.gif">
The net rental income Bunnings is paying on a 10-year lease of a 20,090 square metre bulky goods site at 220 Jubilee Highway, Mount Gambier, in South Australia. The lease expires in August 2010. The site features a 5,124-square-metre showroom, 1,765-square-metre timber yard and 1,386-square-metre outdoor nursery. The property is being sold by Jamie Guerra and Stephen Bolton from Jones Lang LaSalle via expressions of interest closing September 20. The Bunnings lease agreement features 3% annual increases with market reviews every five years.
 
<hr>
 
<img src="/images/stories/2012/08/495.gif">
The initial gross rent per square metre per annum that forensic accounting firm Jirsch Sutherland will pay on a two-year lease at Level 9, 23 O'Connell Street, Sydney. The deal for the 368-square-metre whole floor was negotiated by Ray White Commercial’s John Skufris. The O’Connell Street tenancy is owned by Accord Pacific Resorts and offers natural light from two sides. The tenancy includes a reception and waiting area, a boardroom, meeting rooms and executive offices plus its own amenities as well as the availability of additional storage space.
 
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<img src="/images/stories/2012/08/159.gif">
The annual rent per square metre that Gemini Accident Repair Centre will pay to lease 1,663 square metres at 24 Herbert in Artarmon on Sydney’s north shore. The lease term is five years plus a five-year renewal option and was negotiated by Brad Sutton of Sutton Anderson.
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Commercial leasing: Sydney’s Furniture & Bedding signs $350,000 lease

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The reverse auction of the historic Burrawang Café in the Southern Highlands held on Sunday attracted three registered bidders and a large crowd came to watch but it failed to sell.
The auction was called by well-known  auctioneer Damian Cooley and set aside when the price fell to $1.5 million, having begun at $1.68 million.
Local Southern Highlands agent Rick Mooney from Raine &amp; Horne, who holds the listing, is currently in negotiations with all interested parties and hopeful of achieving a sale shortly.
Under a reverse auction, the price starts at market value (set by the vendor) – above the reserve price – and decreases until a bid is placed that is the winning bid. The winning bid is the first bidder to put their hand up.
Cooley used the visual aid of a red and green light to conduct the auction.
When the price reached the vendor’s bottom line, a red light was displayed and the auction stopped. While the green light was on the property could still be bought during the auction.
The property, at 11 Hoddle Street in Burrawang, had last traded for $690,000 in June 2002, according to RP Data records.
“There was a terrific crowd of over 150 people, which for Burrawang is an enormous turn-out," Cooley tells Property Observer.
“Although it did not sell at auction, it was a great success and a credit to Raine &amp; Horne Bowral for their marketing.”
The café has been listed for sale since July last year with an original asking price in excess of $2 million.
Prior to the auction, a spokesperson for NSW Office of Fair Trading confirmed to Property Observer that there was “nothing unlawful about conducting an auction of residential property and rural land using the reverse auction process as long as all statutory obligations are met”.
However, the spokesperson said a there may be “a number of practical difficulties” the most obvious being where two bids are made at the same price by different registered bidders”.
“If this were to arise, the auction conditions would need to deal with how to resolve the matter.”
In this regard, Cooley said it would be up at his discretion and he would accept the bid in which in his opinion is in the best interest of the vendor.
“If there is a dispute in the bidding the auctioneers/my decision is final.”
<a href="https://www.propertyobserver.com.au/auctions/southern-highlands-burrawang-cafe-reverse-auction-not-the-first-but-still-stirring-up-debate/2012072055673" target="_blank">Burrawang Cafe is located in the main street of Burrawang, about 12 minutes to Bowral.</a>
It dates back to the 1860s and has been fully restored.
The café and Bower Cottage (also of 1860s vintage) stand on a half-acre (0.2-hectare) block, and both are currently leased on rolling monthly leases.
Burrawang General Store Cafe is a fully operational 100-seat timber restaurant featuring floodlit barrel ceilings. It is fully licensed and includes a 3,000-bottle cellar, a landscaped and manicured English garden and a separate office.
Bower Cottage is a fully renovated three-bedroom weatherboard home on the same title complete with a promenade balcony and polished floors. It features a living and dining area with garden views, a fireplace with access to an alfresco entertaining area. It also includes a separate studio.
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No takers for Burrawang Café in Southern Highlands as reverse auction stops at $1.5 million

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Reserve Bank governor Glenn Stevens appeared before the House of Representatives Standing Committee on Economics on Friday. In his opening statement, the governor set out the RBA’s economic assessment. Naturally, the themes were along the lines of those outlined in the RBA’s quarterly Statement on Monetary Policy, published a fortnight ago. In short, the RBA judges that the Australian economy has been growing close to trend over both the second half of 2011 and up to the middle of 2012. This allows for the likelihood of a more moderate expansion of real GDP in the June quarter than in the March quarter. Growth at around trend pace accords with the RBA’s expectations. Consistent with trend growth, the rate of unemployment remains essentially unchanged from this time last year. On prices, core inflation has moderated to about 2% and the RBA expects inflation to remain consistent with the target. The exchange rate appreciation has had a significant impact on prices for traded goods, but this dampening effect is starting to wane. This will require that the more moderate growth of domestic costs and prices that we have seen will need to continue in order for inflation to remain consistent with the target. On the world economy, the governor emphasised both the risks and that the global slowing to date has “been of the more ordinary variety”. Growth for the world as a whole is close to its long-run average and the IMF forecast for world GDP growth of about 3.5% for this year seems reasonable, although the risks seem weighted to the downside. The governor’s discussion of the Australian economy looked ahead to the peak of resource investment within the next couple of years, as was outlined in the SoMP. The expectation is that growth will still be close to trend, albeit with a different composition (with exports, residential and non-residential construction starting to pick up). Committee chair Julie Owens, a member of the government, opened the Q&amp;A with four leading questions, each of which invited the governor to acknowledge that the Australian economy is performing reasonably well, notwithstanding suggestions to the contrary. Not surprisingly, the governor obliged, agreeing with the proposition of these questions. The governor continues to see the economy as a “glass half full” and referred to his most recent speech of July 24, “The Lucky Country”, where he put the case that Australia is relatively well placed to withstand perceived downside risks. Other questions focused on the currency, the labour market and the mining boom. There were a few key take-outs on these issues. The governor judges the Australian dollar to be “a bit on the high side” but “not dramatically so”. In terms of the risks to the economy, the question was if the dollar was a “long way above” fair value and whether it was above fair value for a “long time”. The governor noted that the RBA has not intervened in the currency market and the tone of his comments could be interpreted as implying that, given current circumstances, there is no plan to do so. As for intervention by the Swiss National Bank, the governor noted the differences between Switzerland and Australia. In an earlier question, on forecasting, the governor referred to the difficulty of predicting the impact of shocks to the economy. He cited the current strength of the Australian dollar despite declines of the terms of trade. With the dollar not playing its normal shock-absorber role, there are important implications for the economy. The governor suggested that it is not inconceivable that the Australian dollar could go higher (due to safe haven effects and generally high rates of return in Australia). The RBA views the labour market not only in terms of national averages, but also sees the labour market as a “patchwork”. The RBA tracks the dispersion of the unemployment rate across regions. This shows that the labour market is currently not more of a patchwork than normal. The governor is surprised that dispersion is not bigger and noted that it could get bigger. On the mining investment pipeline, the RBA’s view on the outlook has not changed in response to recent announcements. The RBA has long expected that the peak of the investment phase will be in the next couple of years and that mining investment as a share of GDP will reach around 9% of GDP. The next phase will be the boost to mining output, the export upswing. As for the Westpac view, we were not surprised by the governor’s comments. Moreover, there was no discernible market reaction to the testimony. In our judgement, additional interest rate relief will be required to ensure robust growth of the Australian economy during 2013. We expect world growth to be sub-trend this year, forecasting a slowing to just 2.8%. The Australian labour market is likely to be soft over the remainder of this year, with the unemployment rate rising to a forecast 5.7%. Structural change, reinforced by the current strength of the Australian dollar despite lower global commodity prices, tighter fiscal policy, both at the state level and federally, household sector deleveraging, and ongoing caution against the backdrop of global uncertainty are all weighing on job prospects. Our central case forecast is for the RBA to reduce the cash rate to a low of 2.75% by the first quarter of 2013, but with the next move not until the December quarter given the RBA’s current wait and see approach.
Bill Evans is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator.</a>
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More RBA interest rate relief needed to ensure robust economic growth

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In real estate there is no truer commodity than vacant land.  Houses and units inherently show a qualitative bias; the value of a house or unit is influenced by various factors such as the size of the home, the state of repair, the architecture, the attributes of the home such as number of bedrooms and bathrooms and whether the home has value added components such as a swimming pool or shed.
The value of vacant land, on the other hand, is primarily influenced by geographic context and land area.  Sure there are other factors that can affect land value such as the council zoning and the shape of the land parcel, however compared with a dwelling it is much easier to quantify and compare land values across regions.
A simple way to do this is to use median land prices, however a median land price only shows the typical price for which a block of land sells; this measure takes no account of how big or small the block of land is.  A much better way to measure the value of land is based on a rate per square metre.
To illustrate this point, using the median land price measure shows Sydney to be the most expensive land market in the nation.  Based on sales over the past 12 months, the typical block of land in Sydney sold for $283,500.
Using a rate per square meter measure it is a different story.  On this basis, Perth is the most expensive vacant land market, with the typical vacant block selling at the rate of $555 per square metre.  Sydney is the second most expensive market at $547 per square metre and somewhat surprisingly, Adelaide is the third most expensive at $486 per square metre (despite having the second most affordable median sale price).
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The difference really comes down to the size of the blocks being sold. The median land area for vacant land sales in Adelaide is the smallest of any capital city at just 375 square metres. So, despite being the most affordable mainland capital city based on median prices, on a rate per square metre basis, Adelaide land is actually relatively expensive.
Conversely, the most densely populated capital city, Sydney, still has the third largest median land area across the major capitals at 544 square metres.
From a development perspective, why not reduce the typical land area to maximise the development yield and improve housing affordability? The reason probably comes back to the constraints of council zoning and town planning regulations.
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The small lot sizes in Adelaide may come as a surprise, however the production and development of small lots is likely to become more evident across the other capital cities over time and is partly due to a state government program whereby developers have to include a proportion of affordable housing within most new developments.
Smaller lots and smarter housing design is a fairly straightforward mechanism to combat housing affordability and to improve density around primary working nodes and transport corridors.  The trend towards smaller lots is evident across all of the capital cities but not to the same extent as in Adelaide.  The important part of shrinking lot sizes to make housing more affordable is to ensure that there are enough parks and recreational facilities close by to cater to the needs of those home owners.
Cameron Kusher is senior research analyst at <a target="_blank" href="https://www,myrp.com.au">RP Data</a>.
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Perth nudges out Sydney as the capital with the highest-priced land per square metre

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Buying a house with a granny flat can allow buyers to earn an income from their property while still living there. It’s a double whammy.
Or investors can buy one property and earn two incomes off the one site.
In rural areas properties with granny flats can be bought for as little as $69,000, though significant work may have to be undertaken.
Property Observer has found eight houses with granny flats – either recently sold or currently for sale – that could earn buyers an income for less than $200,000.
<a href="https://www.realestate.com.au/property-house-vic-eskdale-111001571" target="_blank">1. 8 Little Snowy Creek Road, Eskdale, Vic 3701</a>
$69,000
It’s not pretty, but it’s very cheap. The “quaint” weatherboard home comes with an equally quaint self-contained bungalow. It needs renovation, but it’s in a beautiful location in the Mitta Valley at the foothills of Mt Bogong. The property comes with views over the nearby caravan park. Eskdale is a town of 200 people, 50 kilometres south-east of Albury-Wodonga.
Its being market as a great investment for someone looking to do some hard work but in return the potential income would be for the house about $160 a week and the flat rental of about $100 a week.
Agent Murray Bingham from RMB Realty Jindera is selling the property.
2. <a href="https://www.realestate.com.au/property-lifestyle-vic-lismore-7435201" target="_blank">18 William Street, Lismore, Vic 3324</a>
$110,000
In somewhat better condition this post-war vinyl-clad home comes with a large granny flat that’s currently being used as a workshop. The house comes with a country garden with established roses and various plants. Ray White Ballarat agent Trevor Booth is selling the property and says self-contained flats like this can be a great opportunity to earn income.
“It does have the advantage of being able to reduce mortgage payments by generating extra income from the flat. Though sometimes they’ll be used for the exact purpose they were intended for – elderly relatives that may have sold up their property and want to be more accessible to their immediate family.”
He says the flat could earn around $70-$80 a week and the house would rent for around $150 a week.
3. <a href="https://www.realestate.com.au/property-house-nsw-deniliquin-107410675" target="_blank">313 Finley Road, Deniliquin, NSW 2710</a>
$155,000
An “understated” home with a separately tenanted granny flat is up for sale in Deniliquin, the rice-growing town 66 kilometres north of the Victorian border at Echuca. The town recently reopened the rice mill, one of the largest in the southern hemisphere, after a break in the 10-year drought.
The owners have apparently kept the rents for the properties low with elderly residents in both.  The main house is rented at $150 per week and the granny flat is $105 per week. With some renovation work, the main house could rent for $180 per week, and the flat at $120 per week.
With the rice mill reopened, demand for rental properties has increased. And for the first time in years farmers have been given their full water allocation and are expecting a bumper crop.
4. <a href="https://www.realestate.com.au/property-house-nsw-deniliquin-107583523" target="_blank">443 Wood Street, Deniliquin, NSW 2710</a>
$165,000
In the same town by the same agent, this three-bedroom house includes a two-bedroom self-contained flat. Each is fully fenced with garden sheds and its own carport. Agent Trent Lloyd of TLC real estate says the flat could rent for $110 per week while the main house would rent for $160 per week.
5. <a href="https://www.realestate.com.au/property-house-vic-robinvale-108803351" target="_blank">23 Ronald Street, Robinvale, Vic 3549</a>
$165,000 to $185,000
Back in Victoria, this time in Robinvale, this three-bedroom family home comes with a three-bedroom bungalow out the back. The bungalow is currently set up with a canvas annex covering a purple sofa. It’s on 590 square metres.
Agent Chris Katis from Barry Plant Mildura says Robinvale is an interesting case where properties tend to be rented out by the head rather than by the room. Up to nine people have been living in the cottage, each paying $60-$70 per week, giving a potential of more than $500 a week. 
“We’re very short of housing here, and there’s a big demand for labourers on the farms,” Katis says.
“The rental situation happens a fair bit because of the lack of housing.”
6. <a href="https://www.realestate.com.au/property-house-vic-nhill-110659773" target="_blank">184 Nelson Street, Nhill, Vic 3418</a>
$169,000
In Nhill, halfway between Adelaide and Melbourne, this three-bedroom period homes come with a self-contained unit. The main house comes with a large living area and a formal dining room.
Andrew Seers from Aaron Lewis Property Agents Horsham is selling the property.
7. <a href="https://www.realestate.com.au/property-house-qld-mount+morgan-109622406" target="_blank">15 Dobbs Street, Mount Morgan, Queensland</a>
$180,000
In Mount Morgan, 32 kilometres south of Rockhampton, a three-bedroom metal-clad home just sold for $180,000, with a fully separate granny flat. The house comes with a deck, air-conditioning, steel stumps and a fully concreted handyman's work area. The whole block is 814 square metres.
The utility meters on the property were recently changed to allow for separate renting. Agent Raine and Horne agent Kerri-Anne Percival says the property market in Mount Morgan is booming. She says a possible new mine site nearby and the purchase of Mt Morgan Mines could drive prices up quickly.
8.<a href="https://www.realestate.com.au/property-house-qld-childers-110773611" target="_blank"> </a><a href="https://www.realestate.com.au/property-house-qld-childers-110773611" target="_blank">6 Noakes Street, Childers, Queensland, 4660</a>
$180,000
This house in the mining town of Childers recently sold for $180,000. The granny flat needs a new kitchenette, which agent Michael Vella says would cost $4,000, but once that’s done the flat would rent for $180 a week while the house would rent for $220 per week.
Vella says there is a massive shortage or rental properties in the town driven by mining in surrounding areas. One rental agency in the town has no  empty properties, while the others have just a handful.
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Eight two-income granny flat investment offerings for under $200,000 across Australia 

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The Western Australia property market is set to improve in the second half of 2012, on the back of what has been a steadying market, but any recovery is expected to be gradual, according to the First National Real Estate 2012 Property Market Outlook Mid-Year Update. 
The Update, released this week, is based on a survey of the 400-plus member network, and provides an insight into what member agents expect the market to do, drawing on their experience at a grass roots level.
The optimism is a result of new projects translating into employment opportunities and a steadily improving property market. 
The mining and resources sector continues to underpin the state’s economy, which is attracting strong levels of population growth. 
Business confidence and the flow-through effects to employees will be an important influence on how the public perceives conditions and, ultimately, their behavior. 
The key challenges facing the state’s property market are vendors adjusting their price expectations to meet market demand, especially in Kalgoorlie and some parts of Perth, and banks and securing finance, particularly for Kalgoorlie residents. 
Consumer confidence, especially as a result of current and planned infrastructure projects, coupled with better buying conditions, will cause the state’s property market toe further stabilise and steadily improve over the coming six months. 
The Update says the strongest growth will come from first home buyers, followed by upgraders, then investors. 
Home buying activity will be driven by improving rental yields and returns for investors and increased affordability through low interest rates and falling property prices. 
Property prices should stabilise or steadily improve, with house prices on the rise and representing the strongest-performing sector. 
The rental market in Western Australia is expected to perform well in the coming six months, with vacancy rates trending downwards and weekly rents trending upwards. 
Interest rates are expected to reduce further, adding to improving affordability levels, stabilising prices, strengthening buyer confidence and stimulating activity in the slow property market. 
However, the slow market recovery to date is forcing the hand of many financial institutions, which are being forced in some areas of Perth especially to foreclose, and so mortgage defaults are increasing. 
The commercial property market in Western Australia is being driven by the strengthening mining industry, particularly in the Kalgoorlie region. 
This growing demand in the resources market will also positively affect the Perth office market, where tight vacancy rates will cause demand to begin to flow to the outer regions of the city. 
Increased job opportunities will significantly impact the state’s commercial property market, with the strongest growth expected to be in the industrial sector followed by the service industry. 
The rural property sector in the state will be driven by limited availability of stock in built-up areas, and a need for price adjustments where demand is low. 
According to the Update, lifestyle properties represent the greatest growth in the rural sector for the state, especially in areas like Swan Valley, which is always a popular spot.
Cambell Giles is Western Australian state chairman of<a href="https://www.firstnational.com.au/" target="_blank"> First National Real Estate</a><a href="https://www.firstnational.com.au/" target="_blank"> </a>
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