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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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The increasing expenditure associated with Australia’s ageing population will necessitate reforms to the country’s taxation system, according to the latest Economics Group Research Note from the Housing Industry Association of Australia (HIA).
With the number of Australians aged 85 and over projected to grow from 455,000 to 1 million in the next 25 years, the country’s working population is expected to decline in relation to the number of senior financial dependents. The country's shifting age demographics are likely to intensify public expenditure pressures, with HIA claiming that the residential construction sector will play a direct role in Australia’s response to the ageing population.
Currently, the Public Budget Office estimates that the structural budget balance will remain in deficit in 2016/17. As such, in its report HIA advocates a series of structural taxation reforms extending to the housing construction sector to help manage Australia’s shrinking taxation base.
The report states that new housing is Australia’s “most heavily and inefficiently taxed sector”, contributing about $40 billion 11% of total taxation revenue per year across all levels of government.
“Taxes on new housing are not only excessive, but are disproportionate relative to the rate of taxation on other sectors of the economy – the average tax burden on the residential building sector is estimated at around 31% of the value of output, which compares to an economy-wide average of 24.4%,” writes HIA in the report, titled Housing: Paving the Road to Recovery?
Citing the 2010 Ken Henry Tax Review, HIA also criticises stamp duties as inefficient and providing a disincentive for older Australians to move to more appropriate dwellings. In the final recommendations of Australia’s Future Tax System, Henry advises that “ideally, there would be no role for any stamp duties, including conveyancing stamp duties, in a modern Australian tax system”. Instead, the review recommends a broad land tax.
HIA’s report also raises the issue of providing adequate housing stock to meet growing demand. Pointing to legislative barriers to housing supply, the industry body claims there is a shortage of housing stock and inflating home ownership and rental prices.
Although housing supply is largely regulated by state and local governments, HIA claims that the federal government can take action to increase new housing stock, such as tying funding to public and social housing delivery benchmarks.
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jrichardson-uRX5hFdKfN

Housing taxation reform required to deal with ageing population: HIA

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The receivership sale of Heritage Golf and Country Club in the Yarra Valley’s Chirnside Park, north-east of Melbourne, has secured $17.8 million, just over half its over-inflated $30 million book value.
The two golf course, 230 hectare property has been bought by HGC Properties, a company directed by Melbourne accountant Sam Cimino, with its only shareholder being, Fly Group Limited, an entity without any directorial paperwork which is understood to have origins in China.
Scott Callow and Mark Wizel of CBRE Hotels negotiated the sale on behalf of the receivers PKF Lawler in conjunction with Michael Hede of Knight Frank. 
"We are certainly in a different cycle of commercial property when golf courses are quickly selling," Mark Wizel told Property Observer.
"Banks have an increased preparedness to lend on non-core assets.
"There is Chinese buying appetite for leisure property, not just the residential projects that have been the dominant desire to date," Mark Wizel said.
The Jack Nicklaus-designed St John golf course ranks among the best golf courses in Australia. The property is located on the Yarra River near Chirnside Park and has two 18 hole golf courses (the St John Course, south side designed by Jack Nicklaus in 1996) along with the Henley Course, on its north side designed by Tony Cashmore in 2002.
The property included townhouse development land and residential lots (STCA). 
Heritage Golf &amp; Country Club has a strong established membership base with 1,394 members. It hosted the Victorian PGA Tournament in February this year. 
There were about 47,500 golf rounds by played annually.
<a href="https://cbre.realcommercial.com.au/property-land+development-vic-chirnside+park-501095227" target="_blank">Heritage Golf and Country Club</a> was under the control of the Melbourne businessman and property developer Guo Zhao “Sunny” Sun.
Mr Sun acquired the golf estate around 2011 at just short of $15 million. But he subsequently became embroiled in a Victorian Supreme Court dispute with business partner Wang Hua, China’s 790th richest person, over control of the country club, as reported by Fairfax Media.
A court ordered followed that Heritage Golf and Country Club Pty Ltd be wound-up with the creditors owed $13.8 million, according to a News Ltd report which suggested one creditor, the Alter family, through its Austpac Funds Management, unsuccessfully proposed a deed of company arrangement.
Sun had purchased the property from receivers to the Letten Schemes, a series of property investment funds established by Mark Letten that fell apart during the global financial crisis.
Wang Hua and Mr Sun founded residential development company Kingsland Group, which has built small-scale townhouse and apartment developments in Melbourne since around 2003.
Wang Hua, from the Jeshing Group, was <a href="/news/offshore-buyer-secures-16-st-georges-road-toorak-from-peter-devitt-in-circa-20-million-sale">the mystery buyer who spent $18.58 million last year</a> on the Toorak estate of the director of construction company L.U. Simon Peter Devitt through Kay &amp; Burton agent Ross Savas (pictured below), in the name of his wife, Xiao "Kylie" Yan Bao, who received an Australian visa in 2001. She had bought a mansion on Irving Road, Toorak for $3,399,000 in 2003.
<img src="/images/stories/flexicontent/l_toorak-sept-23-breakout.jpg" alt="Offshore buyer secures 16 St Georges Road, Toorak from Peter Devitt in circa $20 million sale">
Private homes overlooking the course have been sold over the years, with Fletchers currently having a three bedroom townhouse offering on Turnberry Lane (pictured below). <a href="https://www.1turnberrylanechirnsidepark.com" target="_blank">It had $1.3 million hopes</a>, after being passed in at $1.05 million at auction last month. Its vendor is not connected to the golf course ownership.
<img src="/images/2014/04/23/chirnside%20april%2023%20one.jpg" alt="">
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jchancellor-FAypfDUnLy

Jack Nicklaus-designed St John course at Heritage Golf and Country Club, Chirnside Park sold

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Investors in all states except South Australia and the Northern Territory plan to increase their exposure to property over the June quarter, a sentiment survey has found.
High income earners, those working in professional jobs and people living in larger households were most likely to say they intended to boost their property investment portfolios over the next three months, the latest MLC Quarterly Australian Wealth Sentiment Survey revealed.
More than 2000 people responded to the national survey, which was released in mid-April.
Investors were asked about their existing financial situation and whether they were more or less likely to invest in certain asset classes over the next three months.
Investment property was the only growth asset to which respondents planned to increase their portfolio allocations, although appetite for investment property was down slightly from the previous survey for the December quarter.
All groups said they would cut their holdings of shares and diversified balanced funds over the June quarter.
 <img src="/images/2014/04/17/zoe-april-17-three.jpg" alt="">
Source: MLC Quarterly Australian Wealth Sentiment Survey Q1, 2014
The results are in line with an improvement in broader consumer sentiment towards residential property, as recorded by the NAB Residential Property Index, which rose one point to a high of 37 in the March quarter.
The outlook for house prices improved across all states except Victoria, with further increases expected in the next six, 12 and 24 months. Rental growth, however, was subdued indicating investment property yields could fall.
<img src="/images/2014/04/17/zoe-april-17-two.jpg" alt=""> 
Source: NAB Quarterly Australian Residential Property Survey: Q1 2014 
Around 30% of respondents to the MLC sentiment survey who earned more than $100,000 already had property investments. Some 10% of people in that wages bracket said they planned to invest more in property over the next three months.
Property was a more popular investment choice with younger people than with those aged over 50. Around 10% of people aged 49 and under said they were looking to buy property during the June quarter. On a net investment basis, over-50s intended to slightly reduce their property exposure.
Debt reduction was the top priority for the majority of people surveyed with around one in three saying that would be their goal for the three months to the end of June.
A large group also said they would invest more in cash and term deposits, as well as superannuation in the coming months.
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zfielding-GvX3Uq9KTa

Investors intend to boost property portfolios over next three months: MLC survey

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The longest standing prerequisite for being a politician in Australia is to turn a question into a rhetorical question – cue Sydney’s political self-preservation argument for a second airport.
This particular debate goes way back to the 1970s where nearly five decades after the initial announcement reality has now come to the fore. The only reason for this five decade delay was the concern of politicians losing office should they back such a controversial recommendation.
The Sydney to Melbourne route in 2011 was declared as the fifth busiest in the world. Sydney airport is by far the busiest in Australia with approximately 36 million passenger movements and 320,000 aircraft movements annually. By 2035, projections have passenger movements at 80 million and aircraft movements at nearly 430,000.
For too long Sydney has fictitiously survived under the falsehood that everything happens within just a 15 kilometre radius of the Sydney CBD. This myth was exposed further in 2014 when the state government moved that 24 hour a day, seven day a week clearways would come into force. Sydney was suffocating and the only solution was to move west – the embarrassing part of this entire debate is why has it taken so long?
<blockquote>
For too long Sydney has fictitiously survived under the falsehood that everything happens within just a 15 kilometre radius of the Sydney CBD.
</blockquote>
Look no further than the fact that Sydney does not have a plan to cope with the fastest growing population in Australia – which has resulted in residents moving elsewhere for a better lifestyle.
Kudos to Parramatta which has fast-tracked itself as Australia’s boomtown over the next five years with a record $8 billion designated with 33 major projects on the drawing board – when completed this will make it Australia’s fifth biggest CBD. An extra 838,000 square metres of commercial space and more than 3,700 apartments and townhouses have been approved.
This week’s announcement for a second Sydney airport at Badgerys Creek will add the largest construction growth spurt that NSW has ever seen – not surprisingly this will have a flow on effect to north and south coastal areas which will be watching the Sydney expansion with enormous interest – cue Newcastle and Wollongong.
Three graphs that will be of great interest not only to NSW but for every capital city in Australia will be:
<img class="aligncenter size-full wp-image-8505" src="https://www.rwm.com.au/files/2014/04/17-04-2014-11-17-08-AM.jpg" alt="17-04-2014 11-17-08 AM" width="599" height="401">
<img class="aligncenter size-full wp-image-8506" src="https://www.rwm.com.au/files/2014/04/17-04-2014-11-12-09-AM.jpg" alt="17-04-2014 11-12-09 AM" width="518" height="465">
<img class="aligncenter size-full wp-image-8507" src="https://www.rwm.com.au/files/2014/04/17-04-2014-11-15-26-AM.jpg" alt="17-04-2014 11-15-26 AM" width="525" height="453">
NSW has been stymied by a lack of direction which has been highlighted by elected politicians preferring their own vote protection over making crucial decisions that will guarantee growth, jobs and prosperity for NSW. Comparing the Olympic Games in Sydney in 2000 to the second airport announcement is like comparing a skateboard to a train. It is interesting to note that over the last 40 years Melbourne has increased its population by two thirds while Sydney has managed just a little over half.
So what will these announcements do to property prices? Well that’s pretty easy to answer as property prices are determined by supply v demand. For too long properties within a 15 kilometre radius of the Sydney CBD have attracted all the interest – this will now change significantly with the move by businesses in a westerly direction given that is where the workforces are (or will be). <a href="/news">Parramatta</a> and surrounding areas will flourish given that such infrastructure spending is unprecedented in an area outside the Sydney CBD region. Another bonus is that this construction boom will (in time) significantly bring down rents.
Australia is right in the middle of a housing affordability crisis which also has been conveniently ignored by politicians given this too is placed in the too hard basket. So it was interesting to note this week that New Zealand’s Housing Minister (yes, they have one and Australia does not) Nick Smith announced that he set an ambitious target to reduce housing affordability in NZ back to the long-run average of four times. Australia and NZ both share a median market of around 5.5%. Although this grand scheme lacks detail at least it has been tabled which is not the case in Australia given it’s not spoken about, and we don’t even have a designated minister.
Premier Barry O’Farrell fell on his sword last week and there is no denying he had to go. Brace yourself for plenty more revelations from ICAC and the Royal Commission into unions where I predict a record number of by-elections across Australia.
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robertsimeon-hRNTwJyXkQ

The announcement that finally had Sydney smiling

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Most first-time investors – and indeed established portfolio owners alike – will have apartments and units as part of their core investment property acquisition strategy.
From a public/tenant liability perspective, apartments are often thought of as a safer property type in this regard, in comparison to detached houses. However, this is not to say apartments and units aren’t without their own risks.
Here’s a short list of safety risks you need to know about, as a landlord, that might come back to hurt you, if left unchecked.
<ol>
<li>
Curtains and vertical blinds  Recent compliance changes in several states pertaining to curtain/blinds are very important. For most curtains and blinds; a rope-style pulley system is the commonplace curtain raising/lowering/opening mechanism. However, many older-style pulleys (say blinds older than four or five years), are a child safety hazard, and children can be at risk of choking if caught in the connected pulley strings. This risk is an easy and cheap fix; just Google ways to replace or cut and repair the pulley strings to make sure they are compliant. 
</li>
<li>
Safely opening windows  On to windows as opposed to blinds now, and the requirements per-state/territory change, so be sure to research the compliance rules specific to the state your property is in. In some states, the rules on the gap a window is able to open (for units where the windows are above a certain height from the ground – so, some ground floor units may be exempt) is undergoing change currently.  The safest thing to do is ensure your apartment’s windows are fully compliant with your state’s rules. This is again a child safety issue, and rules were introduced to prevent children falling out of high windows. For instance, in some states there are rules that require windows to open to no more than just 12 centremetres width. 
</li>
<li>
Fire alarms need to be tested regularly  This sounds like one of the most obvious unit and apartment safety issues, but I am constantly surprised by the number of investors I speak to who do not regularly check the working function of Smoke and fire alarms in their properties. The simplest way to regulate this is to ensure your managing property agent checks them for you (and signs off on the inspection report, having indicated they are in working order). However, this isn’t already an iron-clad guarantee that the devices are functional or have even been checked. From a legal standpoint, should any fires break out, the managing agent may not be held accountable to this either. Smoke alarms vary in price, from as low as a $9 K-Mart job, all the way to premium products that include regular servicing options to ensure compliance and safety is checked and maintained. These are the safest and most legally-liable solutions, though the cost is much higher for this piece of mind. 
</li>
<li>
Balcony balustrade heights  Balcony balustrade height requirements vary from state to state, however it is something to check in on for both newer and older apartments alike. If a balcony balustrade on a property you are considering purchasing as an investment appears to be quite low, it is work querying this with the selling agent. Also, investigate compliance issues that may result from a child (or adult!) balcony fall or accident as a result of a low-built balustrade. Again, ground floor apartments and units are often exempt from this requirement. 
</li>
<li>
Internal and external stairwell balustrade heights  Similarly to item number four above; be conscious of balustrades on stairwells both inside the unit and outside too. The exceptions of course are any ‘common property’ stairwells. Any accidents or deaths pertaining to incidents on these common-property stairwells are handled by the strata plan liability insurances, and not individual unit or apartment owners.  I was actually caught out on this in my most recent property purchase. The property featured a modern ‘floating’ internal stairwell that simply had a raised, open-air hand rail, with no connection to the steps below it. This meant that a child or infant could potentially make it half way up the stairwell, then fall off the steps over the side balustrade, and injure themselves. 
</li>
<li>
Get a building and pest inspections report and read it carefully The above stairwell discovery was only found when I had the building and pest inspection report completed, prior to cooling off period ending. I’d identified the issue and investigated a plan to resolve it, prior to the cooling off period ending, and I make the same recommendation to would-be investors out there reading this, to do just the same. A building and pest inspection is so valuable for this reason. Sure, it is a few hundred dollars extra expenditure on the property, however it can save thousands later on. Most investors and property buyers assume this report just reveals any structural faults and rodent/insect problems, however the real value lies in the ability to foresee liability issues early on, before you complete your cooling off (aka ‘back out of the deal!’) period.
</li>
</ol>
You can visit Cameron's blog at <a href="https://www.propertycorrespondent.com.au/" target="_blank" rel="nofollow">Property Correspondent.</a>
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cmcevoy-Go82SmsJA9

Six apartment safety risks every investor must know about

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With Sydney and Melbourne’s rising dwelling prices across much of last year, Australia’s property commentators are again looking at the possibility that our price growth is due to a bubble.
The economic phase is largely characterised by prices that have inflated beyond fundamental property values.
Those who have diagnosed a bubble in our housing market are either realists or fear mongers, depending on who you ask. Property Observer took the issue to a panel of economists and industry analysts, asking:
<ul>
<li>What are the warning signs of a growing bubble in the housing market? 
</li>
<li>Is Australia experiencing a property bubble?</li>
</ul>
Arek Drozda – Independent property market analyst
Firstly, let’s define a bubble in more precise terms since there are many different approaches to describe this phenomenon.  I prefer the simple definition that a bubble is “trade in high volumes at prices that are considerably at variance with intrinsic values”.
By this measure, the Australian residential property market is far from bubble territory. In particular:
<ol>
<li>The last time we experienced really high volumes of residential property transactions was in late 2006 and 2007. Despite reports of the biggest ever number of weekend auctions, the total volume of property transactions in 2014 is still subdued in comparison. </li>
<li>This period (up to March 2008) also coincided with high prices and, most importantly, purchase affordability was at its lowest since early 1990’s.</li>
</ol>
The reason for low affordability was that the cost of buying (comprising of mortgage payments, council and water rates as well as other expenses associated with owning a property) ballooned to proportions far exceeding the pace of rises in personal incomes, making property prices at that time “considerably at variance with intrinsic values”. Simply, housing market was in a bubble then.
<blockquote>
"Australia's residential property market is far from bubble territory" - Arek Drozda
</blockquote>
Despite the recent gains in property prices, purchase affordability in 2014 remains at historically high level (not far from 2009 level when Australia and the world were in the depths of the global financial crisis). 
Therefore, there should not be any concern about the bubble until the volume of property transactions reaches 2007 levels and until there is a significant drop in affordability. Prices and interest rates still have a lot of room to move before this will happen.
<img src="/images/2014/04/22/shane-oliver-profile.jpg" alt="" style="float: right;">
Shane Oliver – Head of investment strategy and chief economist, AMP Capital 
The characteristics of a bubble in the housing market are a combination of overvaluation in terms of the prices relative to fundamentals, excessive credit growth, with signs that investors are piling in using borrowed money and finally self-perpetuated exuberance, where past price gains are feeding current price growth.
We saw that in the major capital cities in Australia going into 2000, 2003 and 2004. We had many years of strong price gain. Housing related credit growth was above 20%, and property spruikers like Henry Kay were out in force. The market had become well and truly overvalued.
Some of those indicators are in place now. Housing prices are overvalued in comparison to wages and rental income, both in comparison to Australia’s history and on an international basis.
But we’re not seeing the debt driven frenzy that we saw ten years ago. Credit growth is in single digits, and we’re not seeing the degree of exuberance we saw a decade ago. Cooking shows still out-rate the home development shows.
In Australia, two cities are in double digits but the other capital cities are seeing growth under 5%.
Sydney was perhaps the most bubbly of all the property markets a decade ago, and it’s the one that had the weakest experience in the last decade, starting with the western suburbs in 2004 and 2005. So there’s a degree of catch up going on in Sydney, which partly reflects a return to confidence.
Average capital city growth is above 10%, but that growth is dominated by Sydney, which is up around 15% or 16%.
There are several things investors need to be worried about with Sydney. Firstly, there are probably better opportunities in the states than in Sydney right now.
Secondly, we have seen a strong recovery triggered by a reduction in interest rates, and they’re likely to be raised again, probably later this year.
<blockquote>
"We’re not seeing the debt driven frenzy that we saw 10 years ago" - Shane Oliver
</blockquote>
Thirdly, rental yields are quite low, so investors getting into property need to accept that they are a lot more dependent on capital growth to get double digit returns, if that’s what they’re expecting.
The term ‘bubble’ conjures up images of some sort of crash, a la some parts of the US, Europe and Japan in recent times, particularly around the GFC. But I don’t think we’re at that point yet. Rates will go up, and capital growth will soften but prices probably won’t crash. The important thing is for investors to have realistic capital growth expectations.
<img src="/images/2014/04/22/soos-profile.jpg" alt="" style="float: right;">
Philip Soos – Property market economist and housing bubble researcher 
The first thing you’ve got to do is define what a bubble is. And with all property analysis it’s such a vacuous term.
I take the definition of economist Hyman Minsky. He defined an asset bubble as when the rent from an asset, or income from an investment, cannot pay down principal, interest and the running expenses. That means they’re making an income loss. The only way for an investor to make a profit is through capital gain.
That occurred in 2001 onwards when investors on aggregate became negatively geared in Australia. But it’s been worthwhile for most, because the capital gains have been enormous, especially in Melbourne.
There are three requirements of a housing bubble. Firstly, an increase in real housing prices. Secondly, an increase in the debt used to purchase houses, the mortgage debt to GDP [gross domestic product] ratio. That’s something that Steve Keen has popularised. And thirdly, net rental income losses.
<blockquote>
"Right now, we’re seeing the largest bubble on record" - Philip Soos
</blockquote>
You can also see a bubble through other indicators such as price to income, price to rent, total land values to GDP, the value of housing stock to GDP. There’s also the Kavanagh-Putland index – the total value of property sales on an annual basis relative to GDP – and the debt to cashflow ratio, which compares housing debt to income flows, or net rental income.
Right now, we’re seeing the largest bubble on record. In the post-war period we had two major bubbles. First was coming out of the war in 1974. That was a small housing bubble. It collapsed and gave us a severe recession.
In the late 80s, there was a massive commercial real estate bubble which gave us the early 90s recession. With those two bubbles, real prices and private debt moved up. The same trends are present today, but the trends are much greater now.
Housing prices began to lift off in 1996 and peaked in real terms in 2010 – we’ve never had such a sustained growth in housing prices.
If and when it the bubble bursts, it’s going to induce a pretty severe economic downturn. We’ve never had anything quite like a bubble of this size. The biggest one we’ve seen prior was in the 1880s, when there was a bubble in Melbourne and Sydney. When it burst in the 1890s, it destroyed the economy and produced a depression worse than the one seen in the 1930s.
Article continues on next page. Please click below.
<hr class="system-pagebreak">
 
<img src="/images/2014/04/22/cashmore-proifle.jpg" alt="" style="float: right;">
Catherine Cashmore - Independent market analyst
People buy property based on expectations of future growth. 
The prices buyers are paying in some areas of Melbourne indicate a sense of exuberance – a bullish expectation that the good times will continue. 
This is not just evident in the residential sector, but the commercial sector also. Time on market has reduced, reserves are being surpassed, auction clearance rates are holding up despite the increased number of listings, lending data is still indicating we're on an upward trajectory – the list goes on.
As is the case in any cycle, the tide is quick to change if purchasers feel growth prospects will not be realised for the period of time they intend to hold the investment – and we do face significant headwinds in the local economy. 
This could be the result of a number of economic forces which usually act in combination – i.e., not one rate change alone but rather a series of projected rate hikes, job insecurity, fluctuations in the stock market, a report indicating a change to housing policy, restrictions on lending, lower wage growth, and so forth.  
<blockquote>
"Inevitably, the tide will turn" - Catherine Cashmore
</blockquote>
Buyers will move in sentiment faster than vendors.  Vendors have typically gone through a period of conditioning prior to placing their dwelling on the market. Therefore they are 'set' on achieving a price. Hence the market often stagnates at the turn of a cycle, and housing data can often miss the true drop in prices should vendors be forced to sell. 
This growth phase has a number of forces behind it.  In Sydney and Melbourne (not so much other states), wealth coming into the country from Asia (by way of migrants and off shore lending) is significant and should not be overlooked. I go into further detail <a href="/expert-insights/investing/we-need-to-direct-foreign-investment-in-real-estate-effectively-not-stop-it">here</a>. Our loan data doesn’t pick this up. 
However, money being poured into infrastructure by the current administration, and the boom in building activity, will also bear an upward influence on land prices, although not necessarily on individual unit prices, which are subject to oversupply in city areas.
Inevitably the tide will turn. However, if you're asking me for a 'crash' prediction, while I have no doubt we will experience one, we are, in my opinion, a way from it yet. 
As for why prices are as high as they are, and the impacts this has on society as those on the fringes are increasingly forced out (as I point out <a href="/expert-insights/buying/the-widening-inequality-and-economic-growth-gap-what-does-this-mean-for-housing">here</a>),  I would advise reading <a href="/expert-insights/investing/looking-at-our-housing-market-through-foreign-eyes">my latest article</a>, which addresses the matter in detail.  
Harley Dale – Chief economist, Housing Industry Association <img src="/images/2014/04/22/harley-dale-profile.jpg" alt="" style="float: right;">
Price increases for residential property are being driven by Sydney and Melbourne. There is evidence that the price recovery is broadening, but overall growth outside our two largest capitals is modest. We don’t have a classic bubble scenario in Australia where a frenzy of speculative activity is rife and widespread.
Price increases in Sydney reflect the response to what was a severely supply-constrained market for nearly a decade, although we wouldn’t want to see current rates of growth sustained for a long period. The rate of growth in Melbourne should ease.
<blockquote>
"We exaggerate price weakness when it occurs, but then lament a reversal to price growth" - Harley Dale
</blockquote>
In general our population is increasing and our economy is growing, albeit not at the trend pace we would prefer.
We will see some broadening of dwelling price growth relative to that which is currently evident.
We don’t want to see the situation get out of control, but it isn’t.
We exaggerate price weakness when it occurs, but then lament a reversal to price growth. Let’s just carefully assess how prices behave over the course of this year and stop sensationalising the issue.
<img src="/images/2014/04/22/wilson-profile.jpg" alt="" style="float: right;">
Andrew Wilson – Senior economist, Australian Property Monitors 
A bubble is certainly a nebulous concept because it is something that’s not really defined – other than the fact it ranks with other nightmare bedtime stories as a frightening concept for investors.
The reality is a lot different from the fear. The perception is that unsustainable growth leads to a collapse in housing prices.
That’s not the experience of the Australian housing market. In Australia, our market has been characterised by strong periods of growth, followed by moderate price corrections.
We’ve rarely seen any period of annualised price decline, and when we do it’s at very minor levels, with decline rarely over 5% in any year, while we see double figure growth at times.
We about the housing market in cycles, like the business market. And of course they’re very closely related in terms of their underlying drivers.
<blockquote>
"As Mr Clinton once said, 'It’s the economy, stupid'.” - Andrew Wilson
</blockquote>
If we look at the bottom of a cycle, in Australia the trough is always higher than the previous trough point. So the underlying trend is always upwards.
If the trough point is lower than the previous one, we should be concerned, because we’d be seeing a more exaggerated bubble shape.
So we actually have moderation in the correction phase - we have more of a “wave” shape rather than a bubble shape, and the thing that drives that is the underlying upward trend in our economic cycles.
We have income growth, with competition for labour putting upward pressure on income, which gives us the capacity to pay for houses, and we’ll continue to have that with a healthy economy.
That pattern will continue unless there is some catastrophic economic event. But we’ve had very strong downturns in economic activity before and we didn’t see that any bubbles burst.  
We have a rigid financial environment, which reflects risk aversion from banks. We don’t have a market for lending like the U.S. had, with a lot of speculative lending, which can give us that bubble shape.
As long as our economy continues to grow and as long as we have a rigid and risk adverse financial system, we won’t see a housing bubble.
We also have an underlying shortage of property in most centres. Those that have the biggest property shortages tend to have the more modest corrections, and don’t have the same peaks and troughs of those markets that have a more abundant supply line.
As Mr Clinton once said, “It’s the economy, stupid”.
And as long as the economy continues to be a strong performer in terms of economic growth, we’ll avoid any steep declines in housing prices.
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Exclusive: How can we spot a housing bubble?

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Longitude 131°, overlooking Uluru, is at Australia’s spiritual heart.
The Philip Cox -designed <a href="https://longitude131.com.au" target="_blank">Longitude 131° luxury wilderness camp at Uluru</a> has won acclaim for its eco-friendly intention, with tent-like suites dotted across the red dirt in the Northern Territory.
Its ownership sits within the indigenous-owned Ayers Rock Resort, that comprises five hotels bought by the Indigenous Land Corp from the listed GPT Group in late 2010 for $300 million.
It wasn't a straight sale but rather by instalments:
<ul>
<li>$81 million payment on settlement; 
</li>
<li>$81 million 12 months after settlement; and 
</li>
<li>$138 million five years after settlement.</li>
</ul>
The additional terms of the sale included GPT contributing $25 million towards capital expenditure to assist in the achievement of a higher value in which GPT may share. GPT will share in 46% of the increase in capital value of Ayers Rock Resort over $300 million.
GPT had opened it in 2002, with 12 of the 15 tents at the $9.4 million safari-style camp, then lost in a bushfire just 15 months after its launch.
Longitude 131°, on the edge of the Uluru-Kata Tjuta National Park (UKTNP), 10 kilometres from Uluru, had just been named by US magazine The Robb Report as among the world's top 10 new hotels.
It is now on a long-term management lease deal with Baillie Lodges, owned by entrepreneur Dick Smith’s daughter Hayley and her husband, James Baillie.
Prices have been at $2,200 per couple for a two-night food, drinks and accommodation package
Last year the Indigenous Land Corp’s tourism management arm managing director, Voyages' Koos Klein, the former Hilton executive, told the AFR that the Baillies "can do it better than we can do it. This gives us the opportunity to concentrate on our main resort where we employ 700 to 800 people, and where our focus is on indigenous employment and training."
After a downturn in tourism into the Northern Territory, the value of the resort was cut by $62 million last year, prompting the head of the Indigenous Land Corporation Dawn Casey to question the purchase of the Ayers Rock Resort telling Fairfax Media it was ''perhaps the largest single evaporation of public money in the indigenous policy domain, ever''.
Statistics from Parks Australia show visitors to Uluru declined by about nine per cent in 2011 to about 273,000 people. 
<div title="Page 1">
<div>
<div>
The majority of visitors to UKTNP surveyed were domestic visitors, while 31% of visitors were from overseas. 
<div title="Page 4">
<div>
<div>
International visitors were predominately from Germany; USA; other European markets including the United Kingdom, Netherlands and Switzerland; and New Zealand. 
</div>
</div>
</div>
</div>
</div>
</div>
Before the Windsors visit, Longitude has hosted celebrities, including Oprah Winfrey. 
<div title="Page 1">
<div>Tourism to Ayers Rock began as an informal activity around the mid 1950s , when a series of unofficial camps evolved at the base, followed by a rough airstrip and eventually some low quality hotels and hostels. By the early 1970's visitor numbers were estimated to be close to 50,000 a year.</div>
<div> </div>
<div>Visitor numbers hits over 75,000 per annum around the early 1980s when construction of Ayers Rock Resort commenced under the direction of the Conservation Commission of the Northern Territory.</div>
<div>
The existing hotels were compulsorily acquired by the Commonwealth Government, replaced on the new site by the new hotel.
The estimated costs of development were $600 million.
By 1984, visitor numbers had reached in excess of 130,000 a year.
Despite being operated by Sheraton and Four Seasons, the properties traded poorly.
In late 1997, General Property Trust purchased Ayers Rock Resort for $220 million. 
</div>
</div>
The Baillie Lodges collection of luxury lodges in wilderness destinations includes Capella Lodge on Lord Howe Island which launched the portfolio.
SA's Southern Ocean Lodge is also in the Baillie stable.
Last month James and Hayley Baillie abandoned plans to <a href="/expert-insights/investing/baillie-lodges-reveal-ribbed-modernist-addition-to-proposed-boutique-hotel-in-victorian-era-the-rocks-in-sydney">develop a $1400-a-night hotel in The Rocks in Sydney</a>, citing a threefold increase in construction costs.
Construction costs had an initial quote of $8 million but we tipped to blow out to up $23 million, making it impossible to make the nine-suite hotel stack up financially.
“The hard, sad reality is we have become such an expensive country, where the cost of construction has gone through the roof, especially at the quality end of the market,” he told The Australian.
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Longitude 131° at Uluru - glamping boost to follow Prince William and Kate visit

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Mike Baird's election as Premier of New South Wales has the Urban Taskforce suggesting that this may be a boost for the state’s economy, but that it may also have a significant effect on planning.
CEO of Urban Taskforce, Chris Johnson, said that as Treasurer, Baird did well with the state’s economy and this is a good platform to build from.
“The NSW government had become too bogged down in reviews and committees,” said Johnson.
He said that Baird needs to demonstrate leadership and a “can do” approach.
“Barry O’Farrell gave sound leadership to NSW over the last three years but his term was marked by a cautious approach with many potential reforms being slowed down.”
He also pointed to Gladys Berejiklian’s election as Deputy Leader as a potential positive, pointing to a required focus.
“Clearly issues like the sale of the poles and wires can now be rethought and hopefully a new look at the unresolved planning reforms can occur,” he said.
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jduke-EHk3XBmHkn

Will Baird and Berejiklian do good things for NSW planning?

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Seven years ago a real estate professional in Tasmania sent me a bottle of whiskey because he liked what I wrote about his area.
I don’t particularly like whiskey and I don’t want gifts for writing positive things about a location, because it carries a whiff of corruption. But it was an expensive brand of liquor and I do remember receiving it, the name of the person who sent it, who he worked for and the fact that I sent him a thank-you note – although it was seven years ago.
I’m certain that if someone sent me a $3,000 bottle of wine and I sent that someone a hand-written thank you note, I would remember it.
So I’m incredulous that some sections of the media are painting NSW Premier Barry O’Farrell as a noble statesman who sacrificed himself at the altar of ethics in politics after a memory lapse. Give me a break; he is merely the latest politician to be mired in the cesspool that is the Australian Water Holdings, which is shaping up as Australia’s Watergate. More big names will fall before this one has played out.
Favours to businesses and property developers, in return for gifts or party donations, are all too common in Australian politics. It’s the single most likely explanation for the unnatural enthusiasm of the Victoria state government for approving more and more apartment towers in a vastly oversupplied market, often over the top of local councillors who said ‘no’ to the project.
If you want to understand how the politics of property development work in Melbourne, read the novels of Peter Temple, which have been turned into a series of television movies starring Guy Pearce and currently running on ABC TV.
But back to New South Wales, which now has a new Premier. Whatever the reality of the Barry O’Farrell situation, there’s no doubt that the state economy and the Sydney property market have benefited from his governance.
For almost 10 years, most of it under an ALP government that gets my vote as the worst in my lifetime, the Sydney market went nowhere and was the chronic under-achiever of capital city Australia. Then last year it sparked to life and showed the first meaningful growth since 2003.
<blockquote>
Suburbs will rise not so much because they’re near the airport, but because they have rail or motorway links that previously did not exist.
</blockquote>
The single biggest difference is that money is being spent on infrastructure. As I have often remarked, infrastructure spending is the number one game-changer in residential real estate.
Until recently Adelaide, a city a quarter the size of Sydney, had more new infrastructure happening than did the nation’s biggest city. But now Sydney is receiving belated impetus from long-overdue spending on infrastructure, included rail links, motorway upgrades and hospital expansions.
Many investors are asking whether they’ve missed the boat in Sydney. The short answer is that they should have been buying in 2012, when prices were down and competition was scarce. The 2013 upturn was highly predictable – and now many areas have had double-digit annual growth. I would be focusing on regional areas of NSW with strong growth prospects and a much higher degree of affordability, including <a href="/news">Wollongong</a> and <a href="/news">Dubbo</a>.
The longer answer is that there is still more growth to come to Sydney and the key to finding it is to follow the infrastructure trail.
There will a considerable boost to locations out towards <a href="/news">Rouse Hill</a> as completion of the North West Rail Link draws closer. Plans to build the missing link motorway in the north of Sydney will impact suburbs in that area. And now a whole new series of impacts have been introduced with the possibility that the Badgerys Creek Airport may actually happen.
Don’t be in too much of a rush to exploit the airport plan, because the best clues about where to buy are yet to be revealed. The most influential aspect about that facility will be the transport infrastructure to be built around it – the road and rail links feeding into it.
Suburbs will rise not so much because they’re near the airport, but because they have rail or motorway links that previously did not exist.
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

Follow the infrastructure trail to find future growth suburbs

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After 20 years of ownership, The Block Arcade in Melbourne has been sold for an undisclosed amount.
The sale, negotiated by Colliers International and Allard Shelton, is expected to have achieved around $100 million, with an expressions of interest campaign operating until 3 April.
Both local and offshore investor interest was strong for the property, which had been held by the Kearney family. It’s being sold to Melbourne family the Cohens, who are said to have a long backstory with the Block Arcade and the surrounding retail precinct. The family owns adjoining property.
<img src="/images/2014/04/22/melbourne-april-22-three.jpg" alt="">
The sellers, including property investor and barrister, John Kearny, and wife Alison, are both members of the National Trust and restored the Block Arcade after their 1993 purchase.
The arcade itself was built in 1892, and includes retail and upper level commercial spaces.
Retail tenants include Telstra, Hopetoun Tea Rooms, Haighs Chocolates, Crabtree &amp; Evelyn and Wittner.
The sale achieved 200 enquiries and 10 formal expressions of interest that spanned to Shangain and Moscow, according to Colliers International managing director of capital marks and investment services, John Marasco.
“The Block Arcade is a blue chip Melbourne CBD investment.  It also offers a number of exciting value-add opportunities including repositioning the asset to attract luxury retail brands to the precinct,” said Marasco.
Luxury brand retail tenants may be the next target of the Cohens.
<img src="/images/2014/04/22/melbourne-april-22-two.jpg" alt="">
Property manager of the arcade for the Keameys, Allard Shelton’s director Patrick Barnes, said that Collins Street is clearly where luxury retail brands want to position themselves.
“The Block Arcade is well positioned to capitalise on demand from luxury retailers trying to secure tenancies along Collins Street,” he said.
During 2013, the building attracted more than 3.5 million visitors.
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