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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 Australian Bureau of Statistics has recently released demographic data at a capital city level to June 2013. 
We have <a href="/expert-insights/investing/abs-stats-reveal-population-growth-is-escalating-in-nsw-and-victoria">previously covered the population data</a> however, when the data is paired with dwelling approvals data over the same period there are some very interesting findings.
Over the 12 months to June 2013, the population of the combined capital cities increased by a total of 313,387 persons.  At the same time, there were 114,825 capital city dwelling approvals over the period.  Based purely on the ratio of population growth to dwelling approvals, there was one dwelling approved for construction for every 2.73 residents added to the capital cities.
At a national level, the 2011 Census reported that average people per household at that time was 2.6 persons.  Based on that figure you can see that population growth has exceeded dwelling approvals over the past year.  Of course measuring demand for housing is not quite so simple.  Although it is a bit old now, the former Deputy Governor of the Reserve Bank (RBA) gave a speech entitled ‘Housing and the Economy’ to the National Housing Conference in November 2009, which is available <a href="https://www.rba.gov.au/publications/bulletin/2009/dec/pdf/bu-1209-5.pdf" target="_blank">here</a>.  In the speech he posed the question, ‘Are we building enough dwellings?’  Two of the most interesting revelations from the speech were:
<ol>
<li>A higher proportion of the new dwellings built are simply replacing existing homes that have been demolished.  The RBA estimated that between 2001 and 2006, around 15% of new dwellings built replaced those that had been demolished; 10-15 years earlier that figure was less than 10%. 
</li>
<li>A significant proportion of dwelling investment appears to have gone into holiday homes or second homes.  Census data (2006 Census) shows that the number of dwellings built has exceeded the increase in the number of households by a large margin.  As a result, the ratio of the number of dwellings to the number of households has been rising over time; as at 2006, there were 8% more dwellings in Australia than there were households.  Presumably, most of this surplus reflects holiday houses and second houses.</li>
</ol>
So at a national level, the former Deputy Governor’s speech suggested that in order to cater to dwelling replacements and secondary homes we need to construct 23% more dwellings than the previous simplistic analysis of measuring the rate of population growth compared to approvals.  Also keep in mind here that we are looking at approvals, they won’t necessarily all go on to become commencements and ultimately completions.
An assumption we could make here is that, holiday and second homes are generally more likely to be situated outside rather than inside a capital city.  As a result, the second revelation detailed above is probably not going to have as much of an impact at a capital city level.  Nevertheless we still have to allow for the 15% of homes which have been demolished when looking at the approvals data.
<blockquote>
Maybe it is time to look at ways that we can incentivise developers to bring vacant land to the market quicker rather than banking land and drip-feeding it to the market.
</blockquote>
Across individual capital cities, the 2011 Census reported that on average; Sydney, Brisbane and Darwin had 2.7 persons per household, Melbourne, Perth and the Australian Capital Territory had 2.6 persons per household and Adelaide and Hobart had 2.4 persons per household. 
Returning to the original findings, over the year to June 2013, the capital city population increased by 313,387 persons and 114,825 dwellings were approved for construction.  If we adjust for average household sizes as per the 2011 Census, to match population growth there would have ideally been a slightly higher 119,135 approvals over the year.  If we then further adjust for the assumption that we should approve 15% more homes to replace demolitions, there should have been 137,005 dwellings approved for construction last year, a shortfall of 22,180 capital city approvals.
<img class="aligncenter size-full wp-image-3122" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-11.jpg" alt="Chart 1" width="500" height="181">
As the above chart shows, the supply of new dwelling approvals was generally quite sufficient through the 1990s however, throughout the 2000’s new dwelling approvals have been insufficient in relation to the level of population growth.  We are now seeing rising dwelling approvals on the back of escalating housing demand and rising home values which is encouraging however, it will have to continue for many years to make up for the insufficient supply response over the past decade or so. 
In Sydney and Melbourne, there was one home approved for every 2.72 and 2.48 new residents respectively indicating a level of supply closer to equilibrium with demand over the most recent year.  New supply remains very much insufficient in Brisbane and Perth where one new home was approved for every 3.26 new residents in Brisbane and 3.45 new residents in Perth.
The following charts track the annual population growth and the annual number of dwelling approvals across each capital city.
<img class="aligncenter size-full wp-image-3114" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Syd-chart.jpg" alt="Syd chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3115" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Mel-chart.jpg" alt="Mel chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3116" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Bne-chart.jpg" alt="Bne chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3117" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Adl-chart.jpg" alt="Adl chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3118" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Per-chart.jpg" alt="Per chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3119" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Hob-chart.jpg" alt="Hob chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3120" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Dar-chart.jpg" alt="Dar chart" width="500" height="179">
<img class="aligncenter size-full wp-image-3121" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Can-chart.jpg" alt="Can chart" width="500" height="179">
As the above charts show, the disconnect between the level of population growth and dwelling approvals over the past decade have been greatest within our largest capital cities.  It is no coincidence that these cities are also the regions that have been recording the greatest increase in population over this period.
A further important consideration when looking at the relationship between population growth and dwelling approvals is the type of product that is being developed for the market.  While the city-wide analysis is valuable new housing typically comes in the form of new houses on the outskirts of the city or medium to high density product within the inner city areas. Over time, we are seeing a shift away from greenfield housing development in most capital cities towards infill higher density development.
<img class="aligncenter size-full wp-image-3123" src="https://blog.rpdata.com/wp-content/uploads/2014/04/Chart-21.jpg" alt="Chart 2" width="500" height="182">
Over the year to June 1991, 29.9% of all new dwelling approvals across the combined capital cities were for units as opposed to houses.  In June 2013, 49.7% of all dwelling approvals over the year were for units.  Over the year, there were more units than houses approved for construction in Sydney (66.1%), Melbourne (52.7%), Brisbane (50.1%), Darwin (64.5%) and Canberra (54.9%).  The unit category type includes townhouses and semi-detached homes as well as units. 
The 2011 Census reported that across the separate house category, the most prevalent number of bedrooms is three bedrooms (49.6%) and four bedrooms (32.4%).  When you combine the results for semi-detached and units the most prevalent number of bedrooms is two bedrooms (50.1%) and three bedrooms (28.6%). 
To look at it another way, 88.8% of detached houses have three bedrooms or more compared to 66.9% of units having two bedrooms or fewer.  The point here is that if you are going to deliver more units to the market, they typically have fewer bedrooms and therefore are likely to have a smaller average household size than a detached house would.  As a result, it is likely that as the delivery of units increases there actually needs to be a greater number of units constructed in order to cater for population growth than there would have been if houses were exclusively built.
It is clear for the analysis that particularly within the four largest capital cities there has been a growing deficiency of dwellings approved for construction over recent years when compared to population growth.  Over the past 12 to 18 months there has been a noticeable rise in dwelling approvals however they will have to continue to rise over coming years to make up for the deficiency over recent years.  Particularly in Sydney, Melbourne and Brisbane we are seeing a push to greater density in the inner city areas. 
So how do we fix the supply side problems? 
There are many solutions but I think in the main we need to approve new developments faster, increase developable land both in the inner city and within greenfield areas and reduce the costs of new development to the developer because these costs are ultimately passed on to consumers.  Remember that developers are commercial entities looking to make the best possible returns for shareholders. 
Maybe it is time to look at ways that we can incentivise developers to bring vacant land to the market quicker rather than banking land and drip-feeding it to the market.  Whether that be an additional tax on undeveloped land or some sort of financial incentive to bring stock to the market, I am not sure, but it is clear that particularly within the major capital cities the current conditions are not working and finding a way to increase the supply of new dwellings is imperative.
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ckusher-ujnxiKuFQs

Our capital city population is booming but housing supply failing to keep up

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GUEST OBSERVATION
The National Rental Affordability Scheme (NRAS) looks set for a major shakeup by the government, following suggestions it has been <a href="https://www.theaustralian.com.au/national-affairs/rudds-housing-gift-to-students/story-fn59niix-1226843122005" target="_blank">hijacked by universities</a> to develop subsidised studio apartments for wealthy international students, and that foreign investors, brokers and small time investors are <a href="https://www.theaustralian.com.au/higher-education/top-end-of-town-rorted-nras-scheme/story-e6frgcjx-1226855021305" target="_blank">exploiting</a> NRAS tax breaks.
It is true that about 20% of dwellings approved for NRAS subsidies are student accommodation. About 25% of these (5% of all the housing produced, or around 1000 dwellings) are apparently let to foreign students. Whether they are indeed wealthy is another question, though it’s clear some fine tuning of NRAS eligibility might be warranted.
At the same time, it could equally be argued that the increased supply of subsidised units in high rent areas around universities will create some downward pressure on rents to the benefit of all tenants in the area.
Indeed, even if some units are rented to people outside the initial target group, by far the more important concern should be the failure of the scheme to achieve anything like its supply target.
Failing to meet targets
To make a real difference for low income renters in major cities, NRAS needs to impact market rents by providing a genuine alternative at the local level. But against an initial target of 50,000 dwellings, more than six years in NRAS has stimulated construction of only about 20,000 new rental properties nationally. At this scale the supply effect of the scheme is minimal. So we are effectively left with another form of welfare housing – albeit for working households – which also means an emphasis on eligibility and targeting, and thus the worry about overseas students.
For more than 20 years governments in Australia have tried to attract private investors in ways that are sometimes creative, and sometimes crude. Examples include public-private toll roads, or the sell-off of once public assets like Qantas. Reducing public debt, increasing efficiency, improved choice for consumers and increased accountability are among the reasons given.
But there are two sides to this ledger, and recruiting market operators to deliver policy objectives carries inevitable costs. This might be in the form and distribution of services, the final cost to consumers, and the ethical behaviour of self-interested investors and providers.
Australia’s skewed housing market
NRAS was designed to induce private investors into providing affordable rental housing. The cost of housing is not just a problem for lower income households unable to afford decent and secure accommodation. Unavailability of affordable housing, especially in Sydney, Melbourne, Brisbane and Perth, has much wider social, economic and environmental consequences.
Many lower paid workers are forced to choose between spending more than half their income on rent, or commuting long distances – if they are able to access work at all – and bearing the cost in time, money and family life. When unemployment or family breakdowns happen, the next step is often homelessness, which can so easily begin a cycle of social exclusion.
When the population is growing and there is undersupply of housing, rents rise to meet the repayment commitments of mortgage holders. These in turn are driven upwards by speculation. The same process adds to insecurity for tenants as landlords turn property over to realise their capital gains.
Of course negative gearing already allows investors to reduce the cost of housing investments. By offsetting interest payments, maintenance and other costs, investors reduce their taxable income. Despite plenty of opponents, governments have retained it for fear that investors will desert the rental property sector. But as its critics point out, negative gearing directs the biggest benefits to the most expensive properties and provides an incentive to upgrade property and charge more rent.
NRAS is also a tax benefit, but it provides a fixed rebate of around A$10,000 a year for ten years. Investors can claim the rebate so long as a property is rented through an approved non-profit housing manager at 20% below the market rate. Potential tenants are means tested. In this way NRAS sought to keep investors in the affordable sector for the longer term. If they sell early in order to realise capital gains then the benefit is lost. It also means that low income tenants are less exposed to unexpected rent rises and unscrupulous landlords.
Beware xenophobia
Concerns about international and small investors exploiting NRAS tax benefits appear to be misplaced if not simply mischievous. The main purpose of NRAS is to make affordable housing at least as attractive to investors as short term capital gains. It was intended to stimulate exactly the kind of activity that its critics describe. Indeed if it was really a “cash cow for canny investors” then a lot more new housing might have been built.
Pointing to international investors and students as somehow ripping off Australian taxpayers through NRAS plays directly into xenophobic fears about Asian interest in Australian property. The question must be asked: is a locally based speculator with an interest in short term capital gains preferable to an international investor committed to providing affordable rental housing in Australia for at least ten years?
In his review Housing Minister Kevin Andrews should carefully consider whether NRAS should be allowed to fulfil its aim of creating a viable long term investment option in affordable rental housing.
Should it be expanded so that it puts downward pressure on rents in our major cities, or should it be reduced to another welfare housing program?
If the government prefers closely targeted housing then a market/private sector driven scheme is surely not the way to go, while if private investment is to power the housing system then we have to accept that the property investment market is now a global one.
Michael Darcy is director of Urban Research Centre at University of Western Sydney.
Michael Darcy receives funding from Pacific Link Housing; and the Australian Research Council. He is a former Board member of NSW Shelter and has had a research partnership with the Tenants Union of NSW. He is a member of the ALP.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. 
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jake-cSmGT7VXVf

NRAS fears are misplaced

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GUEST OBSERVATION
When I speak to someone looking to buy an off the plan property, one of my first questions is usually “investor or first-time buyer?”
Recently it was claimed that there is currently a ‘property war’ between first time home buyers and investors, each one vying for in-demand properties throughout Australia. If there is a property war, then the investors are winning. They have more experience, better credit, and in most cases, the confidence to act quickly.
Last year saw a lot of first time buyers forced out of the market due to high property prices and excessive demand. The proportion of first home buyers of all owner-occupied loans financed in January increased .5% from December. Although this is a good development for buyers and the market, this stat is still five times less than investment loans financed. But for those intimidated by the investor presence, first time buyers can easily move into top quality properties.
One of the priority issues for first time buyers is location. Most buyers are looking for something close to the city and close to work, which is where the investors begin driving competition. Smart investors will recognise these areas as the key hotspots and are also looking in these areas. But there are brand new developments in Surry Hills, Rosebery and Alexandria that pose fantastic opportunities for those looking to take a step into the market.
Most inexperienced buyers don’t realise how cost effective off the plan purchases are. Many assume that because it is a new development it is going to cost them more. But seeing as many off the plan purchases occur months ahead of moving in, they afford you the time to save a larger deposit and allow you to qualify for the First Home Owners Grant if applicable.
Off the plan purchases represent some of the best opportunities for first time buyers to not only move out of home, but to move into the market as investors. Now more than ever, buyers are taking the opportunity to buy a new apartment and rent it out to pay off their mortgage faster. With the large number of young professionals looking for homes and willing to pay higher prices for better locations, the potential for return off a purchase can be significant.  
Sam Elbanna is managing director of <a href="https://www.cpmrealty.com.au/" target="_blank">CPM Realty</a>.
 
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Not according to ‘the plan’: First home buyers missing out on off the plan opportunities

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From a first home buyer perspective, there is something very wrong with the housing market in Victoria.
In February, the most recent data available from the Australian Bureau of Statistics (ABS) showed that the total number of dwellings financed for first home buyers had sunk to a 23 year low.
In February there were 1,402 dwellings financed for first home buyers which  represented a mere 11.76% of the entire number financed. This was lower than in January when first home buyers represented 12.7% of the market and the lowest in raw terms since July 1991 when the population of Victoria was 31% less than it is today.
The reasons behind  this result are debatable. Some will say that the causes are high property prices, but this alone is not borne out by the data. When home values last peaked, in October of 2010, the proportion of first home buyers was 18.2%. In real terms, prices are not significantly different at this point which suggests that the problem is not entirely the price.
Others point to the fact that rents are not rising and suggest that intending first home buyers are preferring to rent.
Another perspective is that the change to financial assistance for first home buyers has caused many to not enter the market. At the same time as the large step down in the proportion of first home buyers occurred in the middle of last year, the $7,000 First Home Buyer Grant for established homes came to an end.  This alone cannot be the only issue as at the same time stamp duty was being progressively lowered for first home buyers.
The reasoning for this change in the market is probably a combination of all  issues mentioned and if the market  remains this way, it will represent a significant structural change in the local housing market.
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rlarocca-zWhvjay44N

First home buyers in Victoria lowest in 23 years

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According to the latest RP Data-Rismark Home Value Index Results, Melbourne dwellings sold for a median price of $515,000 for 2014’s March quarter.
Melbourne's median dwelling price has increased 11.6% increase year on year, the second biggest yearly increase after 15.6% growth in Sydney median dwelling price.
Property Observer looks at five Melbourne homes that recently sold around the median $515,000 mark.
<a href="https://www.realestate.com.au/property-apartment-vic-fitzroy+north-107254529" target="_blank">41/9-19 Miller Street, Fitzroy North</a>
<img src="/images/2014/04/17/image3.jpg" width="456" height="342">
An apartment (pictured above) in Fitzroy North’s Miller Park complex sold for $510,000 on 9 April. The two bedroom first floor unit opens onto secure communal gardens and is situated just off Nicholson Street. This property sold below March’s median unit price for <a href="/news">Fitzroy</a>, which was $671,000 according to RPData.
<ul>
<li>Price: $510,000</li>
<li>Rooms: Two</li>
<li>Drive to CBD: 10 minutes</li>
</ul>
<img src="/images/2014/04/17/fitzroy%20north%20april%2017%20one.jpg" alt="">
<img src="/images/2014/04/17/fitzroy%20north%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/fitzroy%20north%20april%2017%20three.jpg" alt="">
 <a href="https://www.realestate.com.au/property-house-vic-reservoir-116400331" target="_blank">170 Spring Street, Reservoir</a>
<img src="/images/2014/04/17/image2%201.jpg" width="460" height="345">
This three bedroom home in Melbourne’s northern suburbs sold at $510,000 earlier this week. Another one sold on the back of its development potential, the weatherboard sits on a 585 square metre plot within walking distance of <a href="/news">Reservoir</a> train station and the Preston market. It was purchased by the vendors in 2006 for $258,000, almost doubling in value over eight years.
<ul>
<li>Price: $510,000</li>
<li>Rooms: Three</li>
<li>Drive to CBD: 18 minutes</li>
</ul>
<img src="/images/2014/04/17/reservoir%20april%2017%20one.jpg" alt="">
<img src="/images/2014/04/17/reservoir%20april%2017%20two.jpg" alt="">
 
<a href="https://www.realestate.com.au/property-apartment-vic-southbank-116430995" target="_blank">6/100 Dodds Street, Southbank</a>
<img src="/images/2014/04/17/image2.jpg" width="460" height="345">
This two bedroom unit (pictured above) sold for $511,000 this past weekend. The apartment in a low-rise complex has an open plan living area and is located near Melbourne’s Botanical Gardens. Though selling below <a href="/news">Southbank</a>’s March median price of $566,000, the property’s value almost doubled over the past 11 years. The vendors purchased the Dodd Street apartment for $265,000 in 2003.
<ul>
<li>Price: $511,000</li>
<li>Rooms: Two</li>
<li>Drive to CBD: Six minutes</li>
</ul>
<img src="/images/2014/04/17/southbank%20april%2017%20one.jpg" alt="">
<img src="/images/2014/04/17/southbank%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/southbank%20april%2017%20three.jpg" alt="">
 
<a href="https://www.realestate.com.au/property-house-vic-altona+north-116006059" target="_blank" style="line-height: 1.3em;">26 First Avenue, Altona North</a>
<img src="/images/2014/04/17/main%203.jpg" width="460" height="345">
A new build in Melbourne’s south west, this three bedroom, two bathroom home (pictured above) sold for $525,000 on Monday. Bedrooms are carpeted while living areas feature hardwood flooring. The brick house with a courtyard and garage sold above the March median for houses in <a href="/news">Altona North</a>, which sat at $507,000.
<ul>
<li>Price: $525,000</li>
<li>Rooms: Three</li>
<li>Drive to CBD: 17 minutes</li>
</ul>
<img src="/images/2014/04/17/altona%20north%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/altona%20north%20april%2017%20three.jpg" alt="">
<img src="/images/2014/04/17/altona%20north%20april%2017%20four.jpg" alt="">
 
<a href="https://www.realestate.com.au/property-house-vic-watsonia+north-116392011" target="_blank">12 Busst Drive, Watsonia North</a>
<img src="/images/2014/04/17/main%204.jpg" width="460" height="345">
Situated 17 kilometres north-east of the Melbourne CBD, this <a href="/news">Watsonia North</a> home (pictured above) sold for $515,500 this past weekend. The three bedroom house with front and backyards is situated on a corner plot, with the selling agent suggesting the possibility of further development subject to council approval. The home was last advertised to tenants at $380 per week in February, putting rental yield at 3.84%.
<ul>
<li>Price: $515,000</li>
<li>Rooms: Three</li>
<li>Drive to CBD: 27 minutes</li>
</ul>
<img src="/images/2014/04/17/watsonia%20north%20april%2017%20two.jpg" alt="">
<img src="/images/2014/04/17/watsonia%20north%20april%2017%20three.jpg" alt="">
<img src="/images/2014/04/17/watsonia%20north%20april%2017%20four.jpg" alt="">
Photo of Melbourne courtesy of Vincent Q/flickr.
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jrichardson-uRX5hFdKfN

What Melbourne's median house price really gets you

<html><body>
Living in compact housing is becoming more popular across Australia due to our changing demographic makeup and lifestyle expectations.
Demography
Every second household in Australia currently supports either one or two people.  Let me repeat, 51% of households, according to the 2011 Census, held just one or two people.
It is forecast that this proportion of one and two person households will rise.  Some estimates are that two-thirds of Australia’s homes will support singles or couples within a generation.
We are not just talking about the Gen Y rental markets here, but owner-resident households too.  This trend is even more pronounced for aging baby boomers and their first generation parents.
Lifestyle
Our time-short lifestyle is making the increased commuter time from ‘home’ to ‘work’ to ‘play’ (whether by car or public transport) less acceptable.
The increasing cost of long private commutes (petrol, car maintenance and insurance etc.) and the need for several cars is making the idea of a ‘go-card’ and public commutes/walking/cycling more appealing.
<blockquote>
The most important consideration in any new investment property purchase is who is likely to be the next owner after you.
</blockquote>
The lag in infrastructure provision to outlying new suburbs is adding additional strain on a public which increasingly wants more now.  Waiting for things (like neighbourhood services and amenity) is no longer part of our creed.
We, as a nation, by and large, seem happy to trade ‘space’ for ‘place’.
Creating place
I often repeat this simple phrase – “density needs to be offset”.
If we are going to live in a more compact dwelling space, then that space itself, and what surrounds it, needs to better than if our home and private yard was much more voluminous.
I am not staying that detached homes are potential dumps or that living on acreage is akin to being in a pigsty*, it’s just that the room for error is far greater in tight confines.
If I have learnt anything from watching those property shows on Foxtel, it is that space is often working against you when it comes to small builds.
Better buying
Compact housing design, like for apartments, must be clever in its use of space; finishes; building amenities and services.
One of the keys to better housing investment is to match the aspirations of the resident now and into the future.  The most important consideration in any new investment property purchase is who is likely to be the next owner after you.  It’s the next buyer who determines your capital growth potential and in most cases it is best if that next buyer is an owner-resident.
So what are some rules to buying a better compact dwelling?
<ol>
<li>
Space  Now this may sound like an oxymoron, but one should always buy as much space as one can afford.  There are basic human dimensions that can only be compromised so far.  For example, living areas must allow for residents and guests to easily move around.  One needs to be able to walk around a queen sized bed.   You do need to do the three S’s (shower, shave and s… well you get the picture) in a bathroom.  Kitchens aren’t just places for Clooney coffee machines, they need workable bench space, multiple storage options; good lighting and a full suite of appliances. 
</li>
<li>
Natural light and ventilation  Think energy efficiency.  The best way to do that is via natural light and ventilation.  All glass should be full floor to ceiling, designed to ensure privacy. 
</li>
<li>
Ceiling height  Space should not only be judged on floor area, but also by ceiling height.  It’s the perception of space that is important, not just the overall metereage. Buy apartments with a minimum ceiling height of 2.6 metres, over 2.7 metres is better still.  
</li>
<li>
Lighting and ceiling type  Down lights recessed into a plasterboard ceiling.   The plasterboard ceiling creates an air gap between the concrete slab structure and room itself.  This creates an important acoustic barrier that lessens noise from the apartment above.    Make sure there is enough lighting in the kitchen; bathrooms and laundry area. 
</li>
<li>
Hard floor finish  Carpet is out and tiles or timber is in when it comes to living areas.  Carpet in bedrooms is still strongly favored. 
</li>
<li>
Great kitchens  The kitchen is usually the ‘centerpiece’ of one’s home.  But when it comes to compact living, the kitchen’s status has lifted to ‘showpiece’. Let’s get a bit specific here, kitchens should incorporate:  Stone bench tops and high quality splash backs;  Designer cupboards and drawers – in fact the more drawers the better;  High quality appliance package with cooktop, oven, range hood, dishwasher, convection microwave and refrigerator – yes a microwave and fridge;  Good task lighting is vital  
</li>
<li>
Functional bathrooms  When it comes to local moves, one of the most cited reasons why is that the bathrooms weren’t practical.  Bathrooms need to have:  Sizable showers with detachable shower rose;  Mandatory WC;  Vanity with sufficient storage and shelves; Floor to ceiling tiled walls;  Natural light and direct ventilation if possible – i.e. operable windows;  Several towel rails;  Include stand-alone bath if space permits  
</li>
<li>
Separate laundry  A dedicated laundry area that is well ventilated and capable of linen and appliance storage - in fact the more storage the better.  
</li>
<li>
Storage Think about those designer closet advertisements you see in the weekend papers or on TV.  Storage is king when it comes to compact living.  The better the storage space the better your tenant and owner-resident resale appeal.  And this is the one area that most developers – like nearly all of them – don’t do well.  Sadly, most aren’t even interested in addressing this issue.  
</li>
<li>
MPR  One bedroom apartments – for example - can sometimes be a room short.  A small multiple purpose room or study has a variety of uses for a one or two person household.  It should be large enough to have a single bed, study desk and some robe space. 
</li>
<li>
Good sized balconies  A well-proportioned balcony not only allows for outside private entertaining, but allows the ‘outside in’.  The balcony should be able to accommodate a six seat table setting and room for a small BBQ.  A glass up stand is much better than a solid balustrade. 
</li>
<li>
Aspect and view  The most preferred aspect is north, but there are occasions where south, east and west can have a more appealing outlook and view.  An inviting view is a strong lifestyle and resale benefit. 
</li>
<li>
ASC  All living areas and all bedrooms these days should have individual air-conditioning.  Key card or intercom security to building and apartment floor is also mandatory.  Any new compact home should be capable of access to the NBN or broadband wireless. 
</li>
<li>
Car parking  One car per apartment is the minimum required to have future owner-resident appeal.  When it comes to the provision of visitor car spaces, one per four apartments is ideal. 
</li>
<li>
Lifts  Lifts and their operation are vital when it comes to apartment living.  A good lift service with access to basement carpark is one lift per 50 apartments. 
</li>
<li>
Recreational facilities  Residents and guests always appreciate a common area incorporating a swimming pool and deck.  Other meeting areas are also highly regarded.  A great foyer works wonders but gyms are better done offsite these days. These rules apply always.  But become vital when looking at buying in a crowded market.  Our property pick <a href="https://matusik.com.au/files/2013/03/Matusik-Property-Picks-March-2014.pdf" target="_blank" style="line-height: 1.3em;">rules</a> also apply.
</li>
</ol>
Good investing.
*I live on acreage in Brisbane’s west and let me tell you space allows one to hide a multitude of property sins.
Our thanks go to John Egan, <a href="https://www.eganprop.com.au/" target="_blank">Egan Property Solutions</a>, for his collaborative contribution to this article.
Visit Michael's <a href="https://www.matusik.com.au/" target="_blank">website</a>, read <a href="https://www.matusikmissive.com.au/" target="_blank" rel="nofollow">his blog</a>, follow him on <a href="https://www.facebook.com/ThinkMatusik?fref=ts" target="_blank" rel="nofollow">Facebook</a> and <a href="https://www.twitter.com/michaelmatusik" target="_blank" rel="nofollow">Twitter</a>, or connect via <a href="https://www.linkedin.com/in/michaelmatusik" rel="nofollow">LinkedIn</a>.
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michaelmatusik-49YzLvdmNv

The rules for buying better compact housing investments 

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GUEST OBSERVATION
Value-add property includes a range of investment strategies, including buying assets at a discount to replacement costs; undertaking a releasing strategy; renovation and refurbishment of assets; redevelopment; strata subdivision of a property; land subdivision and rezoning of an industrial site.
Returns are delivered through the capture of market valuation enhancement as a consequence of insightful property management and capital expenditure, by improving property utilisation and improving occupancy. Upon completion the upgraded property asset may generate a higher and more reliable income.
Return and Factor Characteristics
Commercial factors associated with value-add property imply a periodic absence of income reflecting the time engaged in negotiating and concluding leasing or sale outcomes or implementing other value add strategies. The prospective return characteristics of value-add property and core property across the property spectrum are shown in Figure 1.
Figure 1: Effect of Increasing Commercial Factors
<img src="/images/2014/04/15/ming%20apirl%2015%20one.png" alt=""> Source: Atchison Consultants
Investment strategies illustrated in Figure 1, being core and value-add, exhibit different property factors and reflect increasing risk for which investors seek a higher return. Value-add property investment sits at the higher end of the spectrum, indicating an expected internal rate of return range of 12-20% per annum. Figure 1 also illustrates that as commercial risks are increased, the downside potential also increases.
Current Environment
Core property has the least risk for property investment. Given the prevailing prudent investing sentiment after the global financial crisis, these assets appealed to risk-averse investors. Investment opportunities providing enhanced returns above core property returns, may be generated by value-add property assets.
Investment in value-add property can be implemented through value-add property funds, or single asset syndicates. Participation tends to be limited to wholesale or sophisticated investors.
The conversion of secondary quality office space into residential apartments is a continuing trend. Lack of sites for residential use across capital city CBD markets, combined with softer investor demand for older office stock, has led to innovative managers offering funds which will participate in such projects.
A recent example of a value-add syndicate involved commercial office property in Sydney CBD which was 80% leased to two international corporate tenants. The building was purchased well below replacement cost reflecting a relatively poor lease structure. Value enhancement of the property is planned through upgrading the ground floor lobby entrance and external presentation of the building. This will result in the renewal of the lease with an existing tenant. In addition, the manager has identified a prospective tenant which will take the occupancy rate from 80% to 89%.
Ming Niu is an analyst at <a href="https://atchison.com.au/" target="_blank">Atchison Consultants</a>.
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mniu-gkBe4pvnDQ

The merits of a value-add property strategy

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The Emporium Melbourne - billed as Melbourne's new shopping mecca - has officially opened its doors.
Formerly the home of the Myer Lonsdale Street store, the fully leased Emporium Melbourne will offer more than 220 international and local retailers over seven levels of what the owner CFS Retail Property Trust Group is describing as "world class retailing".
CFS Retail Property Trust Group chief executive Angus McNaughton, said: “We have delivered today a spectacular new retail destination for the Melbourne CBD which brings together a high quality mix of fashion and food, supported by some of the best retail brands in the world.”
Among some of the first-to-Australia brands include iconic Japanese brand Uniqlo in a four-level flagship store, youth brand Zoo York, The Waiting Room by Dr Denim, Calvin Klein Watches and Jewellery, and UCLA Store.
When complete the centre will also house more than 20 Melbourne flagships stores including a three-level Topshop, a two-level Super Glue, Nespresso, Muji, Oroton and Guess.
The centre will also feature a 1,100 seat cafe court and more than 20 popular Melbourne food names. Among them will be celebrity chef George Calombaris's new concept souvlaki bar, South Melbourne Dim Sims, Charlie and Co, Becasse Bakery and I Love Pho. 
This comes after it was delayed, originally <a href="/expert-insights/investing/emporium-melbournes-opening-delayed-until-2014">planned for a December 2013 opening</a>. It was originally <a href="/expert-insights/investing/emporium-melbourne-likely-to-open-with-85-occupancy-rate-in-2013-goldman-sachs">suggested to open with 85% occupancy</a>.
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kjiminez-eaYKfU7qd2

The Emporium Melbourne officially opens its doors

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Expectations that Melbourne's CBD office market is in recovery mode have been declared premature by as much as 18 months.
The cautious assessment was revealed in BIS Shrapnel’s latest Melbourne Commercial Property Prospects 2014 to 2024 report which disputes claims that the mid-year fall in the city's CBD office vacancy rate from 9.8% to 8.7% as at December 2013 was a sign of a turnaround.
Instead, BIS Shrapnel senior project manager and report author, Maria Lee, attributed the reduction in vacancy rate in December 2013 to an unusually high level of withdrawals from stock.
"Had it not been for those withdrawals, the vacancy rate would have increased because net absorption was very weak", said Lee.
BIS Shrapnel doesn't expect such high levels of withdrawals to continue.
"The market will have trouble absorbing the quantum of floor space due for completion this year and next", she said.
"That said, due to the lumpy nature of completions it’s quite possible that the vacancy rate will fall temporarily in June 2014, but essentially we are bumping around the bottom in terms of the leasing market, vacancies and rents.”
BIS Shrapnel expects net absorption to remain fairly moderate in the near term, albeit it should pick up from the 10 year low recorded in calendar 2013.
Driving that view is the sustained soft patch in the Victorian economy. Specifically, Lee points to residential building activity falling, non-residential building being subdued and cuts in government investment a drag on growth.
She added that the high Australian dollar over the past few years had hit Victoria’s key trade-exposed industries, namely agriculture, manufacturing, finance and business services, international student education, and tourism.
Those factors "will not turn around immediately", said Lee.
BIS Shrapnel’s report sets out several reasons why the weakness in the Victorian economy is likely to continue for at least the next year before stronger fundamentals begin to reassert themselves:
<ul>
<li>Total building activity is likely to be soft for some time, dragged down by the residential sector despite the inner city apartment boom underway. </li>
<li>New public investment is expected to continue to trend downwards over the near-term as the state government attempts to consolidate the budget. </li>
<li>Engineering construction work done has further to fall due to the lack of major projects (apart from East West Link). </li>
<li>The Australian dollar is not yet weak enough to significantly boost the competitiveness of the state’s trade exposed sectors. Meanwhile, the closures of Ford, Holden and Toyota are a particular blow.</li>
</ul>
BIS Shrapnel anticipates that Victoria’s pace of economic growth will underperform against the national average for a "few more years".
For landlords and tenants, the report said, that meant that leasing incentives were likely to remain high for some time yet, continuing to affect owners but affording tenants a great opportunity to lock in low rents and/or upgrade to better quality accommodation.
Despite those headwinds, Lee made a point of saying that the economy was fundamentally strong and that the key drivers that underpinned the strength of the Victorian economy last decade were still in place.
"Consequently, the report forecasts a strong rebound in Melbourne’s office market in the second half of this decade," she said.  
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Forecasts of a Melbourne office recovery premature: BIS Shrapnel

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Former Wallabies player Matt Dunning has joined CBRE as a senior negotiator in its South Sydney industrial team.
Dunning, who had a distinguished career playing for the Australian rugby union team between 2003 and 2010, previously worked as business development manager at Workarena Pty Ltd. 
CBRE said that his appointment would bolster the agency's presence in region.
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