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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Brisbane and the Gold Coast’s median house price now sits at $475,000, according to the latest quarterly data from RP Data-Rismark.
Houses in Brisbane and the Gold Coast were up 10.6% from the March quarter of last year. RP Data’s results still put Brisbane and the Gold Coast’s quarterly median house price behind those recorded in Sydney, Melbourne, Perth and Darwin.
Property Observer takes a look at last quarter’s sales to see just what you can get for Brisbane and the Gold Coast’s median house price.
<a href="https://www.realestate.com.au/property-house-qld-runcorn-116188719" target="_blank">26 Premworth Place, Runcorn</a>
<img src="/images/2014/04/28/runcorn.jpg" width="460" height="345">
This three bedroom brick house in <a href="/news">Brisbane’s south</a> sold for $463,000 in March. The twenty year old home sits on a 465 square metre block, with buses and local schools within walking distance.
<ul>
<li>Price: $463,000</li>
<li>Bedrooms: Three</li>
<li>Drive to CBD (Brisbane): 17 minutes</li>
</ul>
<a href="https://www.realestate.com.au/property-house-qld-burleigh+heads-116146079" target="_blank">6 Arbury Hill Close, Burleigh Heads</a>
<img src="/images/2014/04/28/image10.jpg" width="460" height="345">
Set on a 715 square metre block, this four bedroom home in <a href="/news">Burleigh Heads</a> was secured for $465,000 last month. The house includes built in robes in all rooms, two bathrooms and open plan living, kitchen and dining areas. The vendors purchased the Gold Coast house for $285,000 in 2002.
<ul>
<li>Price: $465,000</li>
<li>Bedrooms: Four</li>
<li>Drive to CBD (Gold Coast): 18 minutes</li>
</ul>
<a href="https://www.realestate.com.au/property-house-qld-north+lakes-115624731" target="_blank">2 Kultarr Street, North Lakes</a>
<img src="/images/2014/04/28/north%20lakes.jpg" width="460" height="345">
Situated in the outer-northern Brisbane suburb of North Lakes, this four bedroom, two bathroom house changed hands for $472,000. The home has ducted air conditioning throughout and an open plan living and dining area. The 563 square meter plot backs onto a nature reserve.
<ul>
<li>Price: $472,000</li>
<li>Bedrooms: Four</li>
<li>Drive to CBD (Brisbane): 38 minutes</li>
</ul>
<a href="https://www.realestate.com.au/property-house-qld-chermside+west-116119807" target="_blank">15 Ben Street, Chermside West</a>
<img src="/images/2014/04/28/chermside.jpg" width="460" height="345">
This four bedroom home sold in March for $450,000. The property is located in <a href="/news">Chermside West</a>, just over 10 kilometres from the Brisbane CBD. Set on 696 square metres, this home was purchased by the vendors for $197,000 in 2002.
<ul>
<li>Price: $450,000</li>
<li>Bedrooms: Four</li>
<li>Drive to CBD (Brisbane): 18 minutes</li>
</ul>
<a href="https://www.realestate.com.au/property-house-qld-runaway+bay-115611487" target="_blank">28 Clam Street, Runaway Bay</a>
<img src="/images/2014/04/28/main%206.jpg" width="460" height="345">
Vendors picked up $482,000 for the sale of this home in Gold Coast’s <a href="/news">Runaway Bay</a>. It has three bedrooms, a newly renovated bathroom and polished floorboards throughout. The property also includes a well-sized backyard and pool.
<ul>
<li>Price: $482,000</li>
<li>Bedrooms: three</li>
<li>Drive to CBD (Gold Coast): 19 minutes</li>
</ul>
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jrichardson-uRX5hFdKfN

What can you get for Brisbane and the Gold Coast’s median house price?

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We're not asking the right questions. That's why the property industry is getting so many misleading answers about important issues.
I think this explains, in part, why so many believe we have an affordability crisis and a housing shortage, when so much of the research data contradicts these widely-held beliefs.
Surveys of prospective first home buyers usually ask whether they think they can afford a home. The answer is meaningless, or at best misleading, unless there are further questions.
Those might include:
<ul>
<li>
Why do you think you can't afford to buy? 
</li>
<li>
Have you tried to buy? 
</li>
<li>Where have you looked? </li>
<li>Are you willing to compromise to get into the market?</li>
</ul>
The big problem, as I see it, is not an affordability problem but an expectation problem.
If you read between the lines in industry surveys and street interviews by media, it's clear many wannabe home buyers have a perceived problem because they've absorbed newspaper headlines and looked no further.
Why bother when you read daily that prices are through the roof (when in reality this is true only of Sydney)?
Others have a problem because they want their dream situation in their first purchase. People are quick to complain they can't afford a home but then we discover they want to live in a million dollar suburb.
Many commentators on real estate issues such as affordability apparently believe nothing ever changes. The assumption is that the current generation of young adults want what their parents wanted and should behave accordingly. That assumption is wrong.
<blockquote>
The big problem, as I see it, is not an affordability problem but an expectation problem.
</blockquote>
When the market share of first time buyers declines, it's assumed there's an affordability problem. No other option is considered. The possibility of demographic change is overlooked.
This is the nub of the issue because it's clear that today's 20-something's have different priorities to their parents. Married with kids and a mortgage before the age of 30 is not on the bucket list. Lifestyle takes priority and commitments can wait.
There's a similar issue with the idea of an undersupply of housing. Individuals and organisations stating under-supply as a fact (one that's accepted by many journalists without question) also fall into the trap of believing nothing changes.
Their analysis is flawed because they're using out-dated models about how many new dwellings are needed for a particular level of population growth. The assumption is that the average household size is X and if you divide population growth by X, that's how many houses should be built.
But a lot has changed. Young Australians are staying longer at home with their parents. Overseas migrants comprise a major chunk of population growth but it's coming from non-traditional sources with different household patterns.
Household sizes are rising again. Whereas in the past the typical household was a small family in a big house with surplus bedrooms, people are now buying homes that reflect their actual needs - e.g. opting for a two-bedroom apartment rather than a large, expensive and wasteful four-bedroom house.
The bottom line is that housing demand is created when someone buys a block of land and engages a builder. If that's not happening to the degree many expect because of what their formula tells them, then the formula is flawed.
The industry that complains about the alleged housing shortage is the industry whose job it is to build houses. If the vast undersupply they claim is real, there's a massive opportunity being missed by the industry doing the grizzling.
The industry will continue spinning its wheels until it starts asking the right questions. If there's a shortage, where are the queues at housing estates? And why is there no rental growth? And what are the real reasons young people have stopped buying in numbers?
You can contact Terry via <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>. 
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terryryder-YECXbqmri2

The problem with first home buyers isn't affordability, it's expectations

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Not all Sydney home owners have been beneficiaries of the recent price fillip.
Hunters Hill appears the laggard standout suburb with 0.9% price growth over the past year to its current $1.6 million house price median.
Sydney house prices are up 16.9% over the past year.
''It is no surprise that Hunters Hill has been flat,'' Dr Andrew Wilson, the senior economist at Australian Property Monitors, told the Fairfax Media local paper.
''A lot of prestige suburbs are still playing catch up and Hunters Hill is a classic example of that.''
Dr Wilson said the strongest growth for prestige suburbs like Hunters Hill was before the global financial crisis.
''But with the stockmarket rising they are certainly set to catch up now,'' he suggested.
But Property Observer reckons there's more systemic issues at work hampering price growth - certainly more so off the riverfront than the prestige waterfront trophy homes.
And indeed it is most evident that there are two Hunters Hills - with many of the laggard sales being on the other side of Burns Bay Road, and away from the more popular sandstone and jacaranda peninsula. So a high proportion of slow price growth happens on Bonnefin Road, Abigail Street and Avenue Road, almost Gladesville in location hanging off the Hunters Hill coat tails.
The suburb is a low demand locality historically with an unusually higher proportion of its sales being to devoted upgraders within - not naive about the pricing so therefore careful not to over pay. So not the usual high volumes coming in from elsewhere around Sydney, but they certainly do come from mostly the inner west suburbs like Strathfield.
Its village retail life is hardly vibrant and the single main road entry point must be a bother sometimes.
There have been around 120 house sales since early 2013 of the 2,200 freestanding abodes in the peninsula suburb which Property Observer put under the spotlight.
They ranged from $925,000 to $5.3 million. 
Just the three sales went backwards including the $1.8 million sale last year of the five bedroom at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113801467" target="_blank">3 Gladesville Road</a> which had <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/52541" target="_blank">sold in 2007 at $1,875,000</a>.
The four bedroom <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/170882" target="_blank">5 Ramleh Street</a> went backwards to $1.36 million last year from $1.43 million in 2007.
The priciest price reversal was <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113106287" target="_blank">Kyarra, the 1886 sandstone mansion</a> which sold for $4.5 million at 1 Madeline Street (pictured above) last year having sold at $4.7 million in 2004.
The four bedroom <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-116045247" target="_blank">3 Martha Street</a> went up - but just $10,000 from $2.3 million in 2003 to 11 years later a $2.31 million sale earlier this year.
The <a href="https://www.domain.com.au/Property/For-Sale/House/NSW/Hunters-Hill/?adid=2009730390" target="_blank">23 Bonnefin Road</a> sold for $2.8 million last year having sold at $2,794,000 in 2007 with $500,000 works to convert it from its duplex status in the meantime.
The four bedroom <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-112893451" target="_blank">36 Abigail Street</a> sold for $1.71 million in 2013 having sold at $1.68 million a decade earlier in 2003.
The four bedroom cottage at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113048891" target="_blank">45 Everard Street</a> sold for $1,406,000 in April last year having sold at $1.35 million in March 2010 and $1,261,000 in June 2006 with its then contemporary addition, suggesting to Property Observer the price malaise is longer term than Dr Wilson attests.
Ditto Emsworth, the 1906 house at <a href="https://www.homesales.com.au/sold/19-the-avenue/hs569633.aspx" target="_blank" style="line-height: 1.3em;">19 The Avenue</a> sold for $1.34 million last year having sold at $1.3 million in 2007 and at $1.1 million in 2002.
The renovation opportunity at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113960383" target="_blank">2 Johnson Street</a> sold last year at $1.38 million having sold at $1.35 million in 2006.
The 1886 extended house at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-114061947" target="_blank">4 Alexander Street</a> sold for $3.3 million last year having sold at $3.25 million in 2008.
The riverfront home at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-115862427" target="_blank">37 Bonnefin Road</a> sold for $3,155,000 earlier this year having sold at $3.05 million in 2007. Not much growth between 2007 also at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113687311" target="_blank">21 Madeline Street</a> with its sale of $2.66 million in 2007 and $2.7 million last year.
The house at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113219875" target="_blank" style="line-height: 1.3em;">65 Woolwich Road</a> sold for $2 million last year having sold in 2010 for $1.91 million.
The contemporary home at <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-113574783" target="_blank">17 Augustine Street</a> sold for $1.88 million last year having sold at $1.8 million in 2011.
The four bedroom <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-107421916" target="_blank">36A Barons Crescent</a> sold for $1,505,000 last year having sold at $1.4 million in 2006.
The three bedroom renovated house at 48 Bonnfin Road sold for <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/178504" target="_blank">$1.52 million</a> last year having sold at <a href="https://www.propertyobserver.com.au/https://www.mcgrath.com.au/buy/house-hunters-hill-nsw-2110/59334" target="_blank">$1.45 million</a> in 2008.
The sale of <a href="https://www.realestate.com.au/property-house-nsw-hunters+hill-114303163" target="_blank">80B Park Road</a> shows not even the introduction of a fresh estate agency can overcome the price lethargy with it selling at $1,328,000 last year having sold at $1.29 million in 2006.
</body></html>

jchancellor-FAypfDUnLy

House sales showing Hunters Hill is Sydney's price growth laggard suburb

<html><body>
Currently, more than $47 billion worth of infrastructure projects are planned for Brisbane city, with suburbs emerging as those to benefit most from the spend, according to Place Advisory.
Director of Place Advisory, Lachlan Walker, said that while all areas of Brisbane will see themselves doing well from the improved infrastructure, there will be some potential hotspots.
“The current infrastructure pipeline has more than $47 billion worth of major projects in various stages, all of which will further enhance the attractiveness of the city, drawing in both owner occupiers and investors," Walker said.
“But while we know Brisbane as a whole will benefit, we can certainly pinpoint some particular suburbs that will benefit more than others from infrastructure planned or underway, and by benefit we mean see a marked increase in demand to live there, resulting in greater price and rental growth.”
He pointed to the following suburbs and the infrastructure they will benefit from:
<a href="/news">Brisbane City</a>
Underground Bus Loop: Currently in concept stage. To connect at George Street, Queen Street, Albert Street and Adelaide Street in the CBD to reduce confestion and travel times.
“Since it only runs through the city, the Underground Bus Loop will benefit residential properties located in the CBD itself, as well as neighbouring Spring Hill,” said Walker.
<a href="/news">Spring Hill</a>
Underground Bus Loop
<a href="/news">Woolloongabba</a>
BaT Tunnel: Currently in concept stage. This will be a 5.4 kilometre proposed north-south tunnel to bring trains from Dutton Park to Spring Hill. Walker expects that the journey will be shortened in this area from the southern suburbs to the inner north suburbs, helping reduce the requirement to travel through CBD conhestion.
“It will be built to accommodate the additional 130,000 workers expected for the CBD and adjacent suburbs over the next 20 years, and will fulfil the need for public transport services for the next 50 years,” he said.
<a href="/news">Dutton Park</a>
BaT Tunnel
<a href="/news">Toowong</a>
Legacy Way: A tunnel set to connect the Western Freeway at Toowong with the Inner City Bypass at Kelvin Grove. It will minimise congestion and allow easier access to the airport, and will cut out the use of major roads.
“Upon completion Legacy Way will almost halve peak travel times between the Western Freeway and the ICB," he said. Indooroopilly Shopping Centre Redevelopment : Expected to come to a completion soon. Involves expansion and renovation of existing shopping centre and an adjoining new plaza at the junction of Station and Stamfords Roads.
“With the redevelopment aiming to bring a quality of shopping that’s currently lacking in the western suburbs, it will benefit the entire area, including Indooroopilly itself, as well as Toowong, St Lucia, Taringa, Graceville, Chelmer, Sherwood, Fig Tree Pocket, Jindalee and Kenmore,” said Walker.
<a href="/news">St Lucia</a>
Legacy Way
Indooroopilly Shopping Centre Redevelopment
<a href="/news">Indooroopilly</a>
Legacy Way
Indooroopilly Shopping Centre Redevelopment
<a href="/news">Hamilton</a>
Kingsford Smith Drive Upgrade: In concept phase. Running off Kingsford Smith Drive, it will reduce congestion and benefit local residents.
Brisbane Airport New Parallel Runway: Currently under construction. Looks to support the needed flights in and out of Brisbane, which may result in increased demand for property with access to the airport.
“Consequently we believe suburbs such as Hamilton and Nundah will see a boost in popularity from the construction of the new parallel runway. They’re in close proximity to the airport and easy to get to and from for travellers," said Walker.
<a href="/news">Nundah</a>
Brisbane Airport New Parallel Runway
Other suburbs that may benefit: <a href="/news">Taringa</a> (from Indooroopilly Shopping Centre Redevelopment) and Mt Coot-tha (both benefiting from Legacy Way), and <a href="/news">Graceville</a>, <a href="/news">Chelmer</a>, <a href="/news">Sherwood</a>, Figtree Pocket, <a href="/news">Jindalee</a> and <a href="/news">Kenmore</a> (from Indooroopilly Shopping Centre Redevelopment).
Despite these benefits for the area, Walker said that the best time to buy is as soon as the infrastructure project is announced.
“However, once the benefits of the project flow through to the area there will only be increased demand from buyers and renters, and this means prices and rents will continue to grow, or at the very least be stable.”
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Nine Brisbane suburbs to become property hotspots: Place Advisory

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"It’s been almost impossible to give accurate price guidance when potential purchasers are prepared to fight and bid aggressively, resulting in some delighted vendors," the Ray White chairman Brian White recently noted.
The admission accompanied the Ray White Group achieving $3.2 billion in March sales nationally.
"How wise are vendors to have embraced auction in this cycle," <a href="https://www.raywhitegroup.com/white-paper/" target="_blank">he said in his latest monthly advisory</a>, The White Paper.
"All of the talk in Australia is about Sydney.
"But it went much broader than Sydney," he said earlier this month.
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"It’s always a good sign for Australia when New South Wales is powering.
"It becomes a catalyst for confidence across the nation," he said. 
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"Ray White in Victoria set a new record reflecting a dramatically improved Melbourne market," he said.
He pinpointed a number of offices that "showed just how big some real estate agencies can become.
"For example, <a href="https://rwdbgroup.com/" style="line-height: 1.3em;">Double Bay</a> did $120 million, <a href="https://rwremuera.co.nz/" style="line-height: 1.3em;">Remuera</a> in Auckland did $55 million, <a href="https://raywhitegw.com/" style="line-height: 1.3em;">Glen Waverley</a> in Melbourne also did close to $50 million.
"All massive increases over any previous level."
Last November he noted New South Wales was the standout with its first $1billion month, adding the experience at Ray White Balmain where Sam Kelso and Emily Sim opened a new business and were profitable in the first year, was "inspiring." 
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"We’re seeing record auction clearance rates," he wrote in late 2013.
"Property prices are increasing in most markets, particularly the big cities. 
"The highest percentage of property is now being taken to auction. 
"Confidence to upgrade one’s home is being backed by enthusiasm of a cycle a-go.
"Sooner or later, the cycle will lose intensity," he acknowledged. 
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Mr White likes to call markets as accurately as possible, and in the past weaker markets once noted "There's a terrible statistic in the industry that shows about half of sales are made at a price that is less than the owner was previously offered."
And he had also advised the only softness was the confidence hit that resource regions in Australia are now experiencing. 
"On a bearish note, prices are dropping in resource areas.
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"A reminder of how closely linked property prices are to economic activity," he said. 
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Brian White has said the continued focus on China had resulted in the company being recently invited to present at a key investment conference being held by CCPIT – the arm of the Chinese Government promoting investment within and outside of China.  
But adding that while project sales continued at remarkable levels - "what would this market look like if it no longer had Asian interest?" 
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Ray White chief says auction price guidance "almost impossible" in aggressive Sydney market

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So the talk is that NRAS might be stopped in the upcoming May Federal Budget.
For mine, this is one government scheme that really works for the building industry and low-income households.
We have worked on several NRAS-based new projects.
I support the media blast by Metro and the UDIA.
Read on to see what we wrote about NRAS back in 2011.
To my surprise, very few investors (and sadly fewer property gate-keepers) know about NRAS.  And if they know something about it, then they are dismissive of it.  And mostly – I feel – out of fear and/or ignorance.
Yes, like most government schemes, what NRAS is and its merits, have been poorly communicated.  And in some instances, its application further entrenches its incorrect “welfare housing” persona.  But overall, it is a great scheme and too few investors (and developers) are taking the $10,000 annual rental subsidy seriously.
<blockquote>
For mine, NRAS is one government scheme that really works for the building industry and low-income households.
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So what exactly is NRAS?
The National Rental Affordability Scheme (NRAS) is a federal government initiative designed to tackle the issue of affordable housing.
NRAS is not a public or social housing programme, but rather a tax incentive to provide quality housing at below market rental rates.
Run in conjunction with state governments, NRAS aims to induce more investment in the lower price range of the residential construction and rental market by offering inducements to investors who participate in the scheme.
NRAS offers property investors a tax-free incentive for each property while participating in the scheme for a maximum of 10 years.
Currently, this incentive is $9,524 per year for every NRAS dwelling an investor owns, comprising a federal government contribution of $7,143 per dwelling, available as a refundable tax offset; plus a state or territory contribution of $2,381 per dwelling per year, as a cash payment or in-kind financial support.
In return, rents for NRAS dwellings must be charged at no more than 80% of the market rent valuation and there is to be a maximum of one rent increase for each dwelling each year.
In Queensland for example, the state government maintains a list of NRAS-approved tenants, who must meet strict eligibility requirements.
When a vacancy occurs, eligible rental applicants are referred to approved tenancy managers who manage NRAS properties on behalf of owners.
Standard residential tenancy laws apply to NRAS properties just as they do for any private residential investment.
In other words, the same rules regarding evictions, maintenance obligations and responsibilities of tenants apply to NRAS tenants as they do to other tenants in the private sector.
Rents are indexed annually in line with the percentage change in the rental CPI component, except in years four and seven when independent valuations are required.
And, importantly, investors may exit the scheme at any time with appropriate notice and without any financial penalties.
In general, NRAS projects are well-located in terms of jobs, amenities and public transport.  And in general, the design and quality of NRAS dwellings compares favourably with any private non-NRAS dwelling.
NRAS properties often co-exist within developments with other non-NRAS product.
Some of the points of difference that NRAS offers to property investors are:
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<li>All the benefits of a normal investment property with added annual tax-free government incentives</li>
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<li>Investors can apply property expenses, non-cash deductions and allowances against a lower assessable rental income, increasing the gearing benefit</li>
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<li>More than 1.5 million Australian households are eligible to rent NRAS properties, hence vacancy risk is negligible</li>
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<li>Tenants are selected on their potential to be good tenants and their capacity to meet strict eligibility requirements</li>
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<li>In many markets, NRAS properties often deliver a cash flow positive investment</li>
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<li>Importantly, self-managed super funds can purchase</li>
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<li>NRAS dwellings are private property – no government holds or caveats.</li>
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So here we have a scheme that shows many investment properties as cash-flow positive in the first year – and these are more often than not backed up by impressive (well by residential property standards) independent financial analysis.
What’s not to like here?  You are making money from day one; providing affordable rent for those that are finding it a bit hard; have a ten-year rental guarantee (assuming the government doesn’t water down or scrap the scheme); hassle free-management (on paper at least) and a box of chocolates from the government every year.
It appears to tick all the boxes.
Several of our developer clients inform us that their NRAS product is now the first to sell to investors.
Yet the banks are scared of it and will only finance 70% of the purchase price.  Some banks flatly refuse to be involved.  So, too, do too many solicitors, accountants, loan brokers and real estate agents.
True to form, valuers are discounting end prices by 20% – one assumes because the owner can only charge 80% of market rent and most valuers won’t include a subsidy when determining value, despite it coming from the government and being a 10-year programme.
Yes, NRAS is somewhat new; it hasn’t been that well communicated and it is a government-funded subsidy.  But welfare housing it isn’t and gone are the days where one’s residential investment strategy was as simple as “buy and forget”.
Our mindset is that property investors will need to look for every break they can get.
NRAS is a break worth considering.
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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michaelmatusik-49YzLvdmNv

NRAS is an investment break worth considering

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I’ve been asked to write an answer to the question, “Which is better – an apartment or house?”
It’s one of the most common queries buyers ask - especially in light of what seems to be an inexhaustible high-density apartment boom, taking place in Sydney and Melbourne in particular.
In New South Wales alone, the latest data from the ABS shows apartment approvals near a record high, numbering 25,517 units in the year to February 2014 - a 69% share of total figures. Country wide, approvals of both units and apartments now sits at its highest level in <a href="https://www.macrobusiness.com.au/2014/04/australias-supply-side-squeeze-continues/" target="_blank">history</a>.
In Sydney in particular, the news is deemed ‘positive’ – assumed to put downward pressure on both rents and prices. But contrary to popular belief, additional supply of property does not always equate to lower prices.
For decades, the city’s supply has been hampered by stringent planning requirements, allowing big developers with a greater financial capacity to hold the upper hand. Consequently, a larger proportion of developers currently active in CBDs gain their funding offshore (which, according to some analysts, is expected to reach near 100% in Melbourne by 2016). 
<img src="/images/2014/04/28/cashmore-april-28.jpg" alt=""> 
In NSW, the shortage of stock required to cater to the needs of a market, which currently consists of over 50% investors in central areas, has resulted in a spike in prices, which has diverged considerably from other states.
Sydney is booming, and the real estate agents are busy making hay. However, it’s hard to term these dwellings as affordable – or for that matter, desirable.  They are not built for home buyers - they’re temporary pit-stops for renters who need to stay centrally located.
Groups such as Charter Keck Cramer estimate up to 90% of the apartments released in Melbourne’s central regions since 2009 have been sold to investors – albeit, it doesn’t make them good investments.
Complexities of construction
In order to maximise yield, they typically have a floor size of around 60-70 square metres (for a two bedroom dwelling) – compromising natural light and storage space along the way.
Furthermore, the challenge of keeping apartment prices low is complicated by zoning regulations, rendering some neighbourhoods immune from dense development, whilst others have been given the green light.  
This further limits the tight concentration of land where construction can occur and from a micro perspective, escalates already inflated land values for the sites deemed suitable.
The developers are not altogether to blame. Getting planning and building approval for an apartment block is a costly venture, requiring 100% debt cover and often resulting in a period of years from concept to ‘lock up’ (a six year period not being unusual).
The complexities include levies for funding of communal facilities (such as underground parking, street lighting and so forth), which understandably contributes significantly to the cost of the product and often a lengthy period to resolve protests from existing residents, who understandably fear the social and economic impact causing a downward valuation on their own wealth fund for retirement.
To obtain the necessary funding, larger percentages are marketed to overseas buyers using vastly inflated commissions.
High owner corporation fees to fund the required security features, lighting in corridors, lifts, lifestyle amenities (such as a gym or roof top garden for example) equate to at least a few thousand a year.
Some developments offer rental guarantees, promising a return not possible once it’s expired. And should the developer encounter financial difficulties during this period, there is no government legalisation backing up any promise of payment.
Good investments?
To give some idea - the floor plan below was taken from a building just north of Melbourne’s CBD, which was purchased off the plan in 2012 for $580,000, and sold some 18 months later for $476,000.
 <img src="/images/2014/04/28/cashmore%20april%2028%20two.png" alt="">
A sample floor plan for a two bedroom off the plan apartment.
Another in the block was promised a rental return some $50 a week higher than it achieved on the open market, examples such as this leave most local investors hoping tax concessions will help compensate their losses.  
Having worked in a rental apartment previously, I can anecdotally confirm turnover in this type of development is high - with renters generally preferring lowrise to highrise - and despite common belief that renters are poverty stricken ‘wanna be’ home owners, the demographic that live in apartments (typically young, childless, working couples) have aspirations that often exceed what’s currently on offer.  Therefore, whether we’re increasing supply for the ‘needs’ of the rental sector in central localities on a micro level is questionable.  
Melbourne’s Southbank has vacancy rates often topping 8%, which also falls in line with data obtained from Prosper Australia’s recent speculative vacancy report, which analyses water usage to assess residential vacancies across the metropolitan region over a 12 month period – the methodology of which is explained in detail <a href="https://www.prosper.org.au/2013/11/01/speculative-vacancies-in-melbourne-2013-report/" target="_blank">here.</a>
The research shows 7.9% of accommodation in the suburb uses no water at all, and over 22% less than 50 litres per day (a statistic which may be influenced to a limited extent, by some being serviced apartments).  Needless to say, periods of vacancy which put downward pressure on yields, is not what most investors have in mind when acquiring a property – yet an increasing number are doing so in their SMSFs and are acutely reliant on cash-flow.
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Buying close to the city a better option?
All of the above, works on the assumption that most people like to live close to the city and whilst this may apply to residents in their early years, who delight in the hub and bub of an inner city lifestyle - including student renters who need to locate close to nearby university campuses - there isn’t much evidence that the rest of us are prepared to give up space to live in the type of accommodation constructed.
Indeed, the idea that demographically we’re becoming a nation of downsizers is somewhat mythological, but it doesn’t stop the flow of regular articles suggesting we’re all becoming a nation of happy strata dwellers. Once again, it’s often another excuse by property commentators (including buyer advocates specialising in apartment sales –often not openly obvious when you cruise their websites) to promote this option over others. 
Whilst we’re likely to see a trend toward apartment living due to lack of feasible alternatives, it’s been shown the elderly overwhelmingly downsize to medium density accommodation, thereby avoiding highrise developments altogether. Younger generations in their 20s and 30s have a greater propensity towards high density living, with the proportion increasing; however, figures still only peak around 14% at the age of 27 and the trend across all age groups is marginal, with only one in 20 choosing this form of accommodation nationwide (as of the 2011 census).
Obviously, most local home buyers prefer houses to apartments – and for the highrise price tag of a two bedroom flat, there’s far more bang for buck in established accommodation that doesn’t come with the additional risk of a view being built-out, queues to exit the car park, and 150 immediate neighbours traversing through various stages of their housing ‘career’.
At 44%, the typical Aussie home still has three bedrooms and the stats show only one or two residents occupy the majority, with a big increase in the number of four-bedroom homes, which now make up almost a third of our total housing stock. 
The single person household is no longer the fastest rising demographic. In the five-year period to 2011, lone person households had dropped from 24.4% to 24.3%, while group households (shared accommodation) jumped from 3.9% to 4.1%.  Whether the trend continues will become apparent in time.
In the rental demographic, this is likely due to reasons of affordability – renting a one bedroom inner-suburban apartment can often be more costly than an older three or four bedroom detached dwelling a few suburbs out. Therefore, it makes sense to share and this trend is mirrored in international markets – such as the UK and Canada, which produce similar data in their own census breakdowns.
Most of the first home buyers who cross my path also follow the above pattern.  Rarely do they opt for a one bedroom apartment – unless they’re restricted to a particular suburb. Most opt to move outwards and purchase something larger and if given the option, would rather rent until they’re able to afford a suitable property for their five- to seven-year time needs. 
Affordability constraints driving buyers away from city areas
Extra supply for the buy to let market should not be diminished, and it’s not my intention to do so.  However, there’s a broader need to establish quality accommodation for a larger proportion of home buyers who will accept townhouse living if locating inner city, but reject high density developments. And contrary to popular belief, it is possible to accommodate an equal number of residents in medium density dwellings without building to the skies.
Movements such as <a href="https://www.policyexchange.org.uk/images/publications/create%20streets.pdf" target="_blank">Create Streets</a> in the UK are at the forefront of pushing low rise initiatives, and Robert Dalziel – the London-based architect for Rational House, who visited nine cities around the world, including Mexico City, Shanghai and Berlin, has comprehensively examined how high-density can be made agreeable for a broad demographic of home buyers.  More information can be found in his book –commissioned and published the Royal Institute of British Architects: entitled <a href="https://www.propertyobserver.com.au/https://www.amazon.com/House-In-The-City-Architecture/dp/1859464521" target="_blank">A House in the City — Home Truths in Urban Architecture.</a>
Therefore, the major part of Victoria’s growth (mirrored in other states) has been evidenced in fringe localities such as Wyndham, Melton and Whittlesea. And one thing we’re not short of in Melbourne (and for that matter most other states,) is land.  Albeit, as I’ve written previously - regulatory constraints in outer suburban localities have increased land prices disproportionally, making the entry point for such developments effectively double what it should be. 
To demonstrate, following correspondence with Wendell Cox, author of the <a href="https://www.demographia.com/" target="_blank">Annual Demongraphica Housing Affordability Report</a> in reaction to a recent piece I <a href="https://catherinecashmore.com.au/wp/?p=494" target="_blank">wrote</a> outlining differences in international markets, Cox constructed a nice little chart which cuts through the usual measures used to convince readers that ‘housing has never been more affordable’, with an overwhelming focus on mortgage serviceability rates alone.
Instead, it demonstrates the speculative nature shaping the property cycle, which affects not only established house prices, but building activity as lot sizes reduce, whilst land prices per square metre, outpace income growth considerably.  (Something, which only a broad based land tax coupled with changes to supply policy will solve.)
<img src="/images/2014/04/28/cashmore-april-28-two.jpg" alt=""> 
Source: Demographia
Cox points out that ‘urban containment’ – contrary to the political rhetoric – does not result in cheaper prices.  However, to date, every reform put in place to release more land and build an abundance of accommodation, has resulted in higher prices per square metre both here and similarly in the UK and USA.
What to do?
Back to the question at hand – quite evidently, purchasing a new off the plan flat in either Sydney or Melbourne is not going to grant a windfall in economic rent (capital gains).  
You’ll often read commentators dictating that apartments perform better in their median data than house prices – and whilst it may be the case over the short term, it has not been proven over the long-term. In fact, over a long time frame, median detached house prices have outperformed unit prices and there are sound fundamental reasons why this may continue.
Broadly speaking, as a “set and forget”, providing you’re careful with the pre-purchase due diligence (strata reports - ensuring its not a stratum or company share title, which can cause issues in terms of financing and attracting future demand - fees, size, price, zoning, position, facilities, and so forth) apartments generally attract a higher yield, are low maintenance, and when issues with the building do occur, they are typically handled by the owners’ corporation and/or property manager.
Purchasing land offers more options – (subject to feasibility) - allowing extension, subdivision, back garden granny flats and so forth - our largest demographic of buyer are families and therefore land is still the golden nugget for most accommodation seekers.
No matter what kind of buyer you are – at some point you’re going to want to sell the home and move on, therefore acquiring an option that maximises consistent demand is critical in any equation.
Albeit, with the apartment choice being either an aged block in need of maintenance or new and subject to over supply. Or in terms of a house – budget restrictions only allowing a compact block in a fringe development in which landowners have control over how they ‘drip feed’ supply onto the market, I quite often advise purchasers to consider an alternative option. 
And, for that piece of advice, you’ll have to contact me direct.
You can contact Catherine via <a href="mailto:cc.cashmore@gmail.com" target="_blank">email </a>or <a href="https://twitter.com/ccashmore_buyer" target="_blank">Twitter</a>.
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catherinecashmore-6LXia3pPQj

Which is a better investment – an apartment or a house?

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A Hurstville Hungry Jacks premises sold for $6.65 million at auction last week.
It reflected a yield of around 2% for the Forest Road premises. 
The vendor’s reserve was $3.15 million according to William Gunning from Gunning Commercial.
Strong buyer interest from local buyers and mainland Chinese investors meant the Hurstville retail market was strong with yields sometimes under 5%.
Late last year the Huaxing Supermarket premises at 198 Forest Road fetched $2.23 million when sold to L &amp; J Zhang Pty Ltd. The premises are 209 square metres.
The last big sale was $11.65 million last June when 124 Forest Road was sold to Shanghai Lihua Hurstville Pty Ltd by Smart Giant (Aust) Pty Ltd.
In 2012 the refurbished two-storey retail strip property leased to NAB sold for $9.013 million equating to a yield of 5.85%.
The bank branch sits on a 418-square-metre site at 252 Forest Road.
On the office front, earlier this year Centuria sold a 4,800 square metre commercial office building at 8 Woodville Street, Hurstville for $17.35 million ($3,615/m²), reflecting a yield of 8.3%.
It last sold for $13.38 million in 2008 when bought from Immer (169) Pty Ltd. 
The office market is being watched closely as the NSW Office of State Revenue is moving from Hurstville to Parramatta premises.
The decision was part of the push which will see more than 3,000 public servants head west under the proposal of then Premier and Minister for Western Sydney Barry O’Farrell “decade of decentralisation” policy.
The Office of Environment and Heritage is also moving Hurstville to Parramatta.
The Australian Taxation Office’s announced last year that it would close its Hurstville office in early 2015, with the relocation or loss of about 500 jobs.
Gunning have listed an investment opportunity in a central location in the shopping strip and commercial precinct .
The 227-229 Forest Road building comprises four levels – with the upper three commercial space. 
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The property has multiple tenancies, and a rental income of $1,011,812 gross. The building size is 1,776 square metres.
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Retail investors hungry for Hurstville despite office market unrest

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Druids House, the office block at 302 Pitt Street, is set to become a hotel.
It follows its late 2013 purchase by Melbourne property developer brothers, Dean and Jonty Rzechta for around $10 million.
It had previously traded in 2004 for $5 million to G Capital Holdings, associated with Bill Gertos, when offloaded by the Grand Lodge of the United Ancient Order of Druids.
<a href="https://development.cityofsydney.nsw.gov.au/Datasource/DANotifications/1145200_022.pdf" target="_blank">The application before Sydney City Council is for the adaptive re-use as 136 room hotel</a>.
The application seeks a 10 storey addition to the six storey 1909 building set on 520 square metres between Bathurst and Liverpool Streets.
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A 500mm setback is proposed to levels six, seven and eight then levels 9-15 will be setback six metres from the street frontage. 
There had previously been off the plan marketing of residential units with prices from $425,000 for studio apartments, for a 10 months period beginning late 2010 that accompanied plans for a 17 storey apartment block.
It was marketed as an "extremely rare developer release, pre-DA opportunity."
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There is no heritage listing with the Lodge Room on level four the only strong reminder of the Druids’ occupation of the building. It is proposed to be removed, but there will be retention of the façade and windows, most of which date from 1927. 
Druids House was built as a five-storey 1909 factory for the Welsbach Light Company, known then as Welsbach House. 
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The Welsbach Lighting Company which was founded by Carl Auer von Welsbach, a chemist who is famous for inventing the gas mantle and the metal filament for light bulbs. 
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It was a fully-equipped factory in Sydney owned by the company, which had until then been operating in Australia by carrying out various stages of its manufacturing in England. But having German origins, the company was declared an enemy in 1914 and its occupation of the building ended.
In 1927, 302 Pitt Street was altered for use by its new owners, the United Ancient Order of Druids, a fraternal society founded in London in 1781.The Australian contingent of Druids had been active since the 1850s and another Druids House was established in Melbourne in 1927 at 407 Swanston Street. 
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At the time of the 1928 opening ceremony, the United Ancient Order of Druids had approximately 240,500 members and was playing an active role as a Friendly Society in Sydney.
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Druids House in Sydney was opened in 1928, with the Sydney Morning Herald reporting that the opening ceremony was attended by the assistant treasurer, Mr S. Stevens.
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The plans have been prepared by Scott Carver with an estimated $22 million cost for the company, Ninety Four Street.
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The last plans date back to 2011 when <a href="https://www.skyscrapercity.com/showthread.php?t=1336071" target="_blank">a 17 storey residential building was approved</a>, then in 1997 when Peter Skerrett held an option to buy 302 Pitt Street with residential prospects.
The current plans are likely to attract opposition from residents of the neighbouring Princeton complex.
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Druids House on Pitt Street set to become 15 storey Sydney hotel

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The Australian Bureau of Statistics (ABS) released Consumer Price Index figures for the March 2014 quarter earlier this week. 
The data showed that over the first quarter of the year inflation was recorded at 0.6%, down from 0.8% over the final quarter of last year.
Over the past year, inflation has been recorded at 2.9%.  The Reserve Bank (RBA) has an annual inflation target of between 2% to 3% over the medium term and although the reading is at the higher end of that band it is still within the range.
<img class="aligncenter size-full wp-image-3147" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-12.jpg" alt="Chart 1" width="500" height="184">
<img class="aligncenter size-full wp-image-3148" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-22.jpg" alt="Chart 2" width="500" height="179">
Interestingly, non-tradable (or domestic inflation) was outside of the target range at 3.1% but has fallen from 4.2% a year ago. On the other hand, tradable (or imported inflation) was recorded at 2.6% up from -0.2% a year ago.
<img class="aligncenter size-full wp-image-3149" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-31.jpg" alt="Chart 3" width="500" height="184">
Turning the focus specifically to housing, the housing component of CPI has increased by 3.6% over the 12 months to March 2014, its lowest annual reading since June 2012. 
Across the housing sub-categories, new dwelling purchases by owner occupiers rose by 2.4% over the year with relatively tame growth also recorded for: maintenance and repair of the dwelling (2.5%), rents (2.9%) and other housing (4.7%).  Water and sewerage recorded the greatest annual rise at 10.8% followed by: property rates and charges (7.9%), gas and other household fuels (6.9%), utilities (6.8%) and electricity (5.2%).
The 2.9% annual increase in rents was the lowest reading since June 2006.  Similarly, the 5.2% annual increase in electricity was the lowest annual rise since June 2007.  On the other hand, the 10.8% annual increase in water and sewerage was the greatest rise since the 12 months to June 2011.
Another important consideration is the impact of inflation on home values.  Calculating ‘real’ home values by adjusting the RP Data-Rismark Home value Index for inflation provides valuable insight.
<img class="aligncenter size-full wp-image-3150" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-41.jpg" alt="Chart 4" width="500" height="178">
As the above chart highlights, once you adjust for the impact of inflation the level of capital growth over the longer term is much lower. 
In fact, when you adjust for inflation, combined capital city home values peaked in the September 2010 quarter and are still -1.8% lower than that level.
<img class="aligncenter size-full wp-image-3151" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-51.jpg" alt="Chart 5" width="500" height="182">
Over the 12 months to March 2014, combined capital city home values have increased by 10.6% however, when you adjust for inflation the rise has been a lower 7.5%. 
Across each city the rate of capital growth over the year is somewhat lower when you adjust for inflation and markets such as Hobart and Canberra which have recorded low levels of value growth have actually recorded value falls.
<img class="aligncenter size-full wp-image-3152" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-6.jpg" alt="Chart 6" width="500" height="184">
Home values across the combined capital cities are currently 7.2% higher than their previous peak according to the RP Data-Rismark Home Value Index. 
However, as mentioned above, when values are adjusted for inflation the story is quite different with values -1.8% lower. 
Across every capital city except for Sydney home values are lower than their previous peak in inflation adjusted terms.
<img class="aligncenter size-full wp-image-3153" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-7.jpg" alt="Chart 7" width="500" height="179">
Looking at the compound annual rate of value growth over the past five, ten and 15 years in inflation adjusted terms you can see some interesting trends.  Sydney home values have increased at an annual rate of 3.6% over the past five years, but earlier soft market conditions have resulted in value growth of just 0.4% pa over the past decade.
Brisbane home values have fallen at a rate of -2.3% per annum over the past five years and over the same period Adelaide home values are -1.0% lower per annum, Perth values have fallen by -0.2% per annum and Hobart values have declined by -3.1% each year. 
Over the past decade, Darwin has been the standout performer with values rising by 5.9% per annum and the weakest market has been Hobart where values have fallen at a rate of -0.1% each year.
With mortgage rates at such low levels and the 10 years of no ‘real’ growth in Sydney home values it goes some way to explaining the rising demand and surging home values. 
Melbourne is also seeing strong capital growth but when compared to Sydney has been a much stronger capital growth performer over the past decade.  Despite a weak five years in terms of capital growth we are yet to really see the housing market heat up in Brisbane and Adelaide. 
In Perth the housing market was strong early in this growth phase however; capital growth is now fading despite the fact that values are still lower in real terms than they were five years ago.
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