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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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You’ve done your research, your due diligence and you’ve found the property you want to buy. Now what? It’s time to submit an offer on the property. This can be a nerve wracking part of the process as you wait to see how much competition you face and just how much the vendor is likely to sell for. However, in most states and territories, it’s a relatively simple process.
If you’re interested in negotiation, you may want to read our guide: <a href="/expert-insights/how-to-negotiate-the-property-price-you-want">How to negotiate the property price you want</a>.
Offers can be as informal as a verbal price suggestion, or as formal as a signed contract with conditions and details attached. The approach is, largely, up to you. In Queensland, written offers are pushed for and are most common. Written offers must be presented to the seller unless it is below a pre-determined value and can be useful starting points for sellers and buyers. Similarly, they offer a degree of formality beyond a verbal agreement, which cannot be relied upon.
An expression of interest may see you required to pay an initial deposit, as this proves that your offer is serious. This doesn’t, however, ensure you have the property nor that it will even get taken down from being listed. The deposit will be refunded if you don’t enter a contract to buy the home.
When an offer is accepted, you need to be ready to sign the contract of sale and go through the buying process. Before this time there is the risk of being gazumped by another buyer - that is when the vendor accepts another offer even with a verbal agreement to buy the home.
Unconditional and conditional offers
Offers can be presented similarly to the below, which is an example of a conditional offer:
We would like to make a formal offer of $X to the vendor for the property [address]. This is subject to the following conditions.
[Legal review of the contract, property valuation, inspections, finance similar]
Potential time limit for the offer.
Unconditional offers can also be made that don’t provide the ability for you to leave the offer should termite damage or similar be found. These can be enticing for vendors, and you will be legally required to go through with the process. You may be more familiar with these a auction. Buyers are most likely to add conditions around inspections and their own financing.
You can offer multiple offers at any one time – perhaps one for a lower price unconditional, and one for a higher price requesting access.
Where to now? Here observer <a href="/expert-insights/investing/the-eight-steps-a-property-buyer-takes-after-an-offer-is-accepted">Cameron McEvoy explains the eight steps that every buyer takes after submitting an offer</a>.
Recommended step: Get a copy of the sale contract from the real estate agent prior to time and have it examined by your conveyancer.
RECOMMENDED READING:
<a href="/news/how-to-get-your-low-offer-accepted">How to get your low offer accepted</a>
<a href="/expert-insights/investing/be-cautious-when-making-your-first-offer-on-a-property-or-negotiations-could-end-before-they-begin">Caution you need to take when making an offer</a>
<a href="/expert-insights/buying/five-questions-to-ask-before-making-an-offer-on-property">Five questions to ask before making that offer</a>
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jduke-EHk3XBmHkn

How to: Make an offer on a property

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Online real estate listing website realestate.com.au has revealed the top 10 suburbs in Australia for viewers per listing. According to the quarterly Top Sellers’ Markets report, New South Wales takes out four of the top 10 suburbs, with Victoria close behind with three of the most viewed suburbs.
The top spot this quarter goes to NSW’s Balgowlah, with the suburb’s sellers seeing more viewers per listing than anywhere else in the country. According to John Cunningham of Cunningham’s Property in Balgowlah, the result is unsurprising.
“There has been a significant increase in demand for property in the Balgowlah area in the last few months. Open homes in the suburb are attracting twice the number of interested parties compared to last year and the average days-on-market for property is currently down to 16 days,” said Cunningham.
“It has always been a convenient and desirable location. There is a good mix of houses and apartments which makes it popular with both investors and owner/occupiers. With cafés, restaurants and fresh food markets nearby, it certainly offers buyers great lifestyle opportunities.”
According to realestate.com.au’s General Manager of Sales and Operations Arthur Charlaftis, Top Sellers’ Markets list is indicative of increased buyer interest in the suburb.
“The Top Sellers’ Markets looks at supply and demand in each suburb and ranks the suburbs accordingly. A position in this list suggests that it could be a good time for property owners in these areas to consider selling as there are a high number of buyers looking for property in that suburb,” he said.
Eight suburbs have made the national list for the first time.
<ol>
<li>
<a href="/news">Balgowah</a>, NSW: According to RPData, the median house price for Balgowah is currently $1,220,000, with units going for a median price of $705,750. <a href="https://www.realestate.com.au/property-house-nsw-balgowlah-116447799" target="_blank">This two bedroom home</a> at 4 Kitchener Street (pictured below) is on the market with $900,000 plus expectations. <img src="/images/2014/03/31/balgowah%20march%2031.jpg" alt=""> 
</li>
<li>
<a href="/news">Albert Park</a>, VIC: The highly sought after inner city Melbourne suburb has a median house price of $1,542,000. The home of the The Block: Fans v Faves currently has a been enjoying an exceptional high and medium density market, with median unit sales price of $2,375,000 for February, according to RPData. 
</li>
<li>
<a href="/news">Norwood</a>, SA: One of two South Australian suburbs on the top 10 list, Norwood is located four kilometres from Adelaide's city centre. Its median house sales price in February was $960,000, with a median unit price of $640,000. The suburb is currently offering <a href="https://www.realestate.com.au/property-house-sa-norwood-116015207" target="_blank">this impressive bluestone villa </a>at 33 Edward Street (pictured below).  <img src="/images/2014/03/31/norwood%20march%2031%20one.jpg" alt=""> 
</li>
<li>
<a href="/news">Frenchs Forest</a>, NSW: This northern Sydney suburb has a median house price of $1,05,000, and a median unit price of $875,000. It is the first time the Northern Beaches suburb has made realestate.com.au's list. Vendors are accepting offers over $850,000 for <a href="https://www.realestate.com.au/property-house-nsw-frenchs+forest-116508867" target="_blank">this bright three bedder</a> (pictured below) at 7 Newell Place. <img src="/images/2014/03/31/frenchs%20forest%20march%2031.jpg" alt=""> 
</li>
<li>
<a href="/news">Cherrybrook</a>, NSW: One of only two suburbs to have made the list from the previous quarter, demand for properties in Cherrybrook has seen an increase in buyer demand, jumping from ninth place to fifth. Last month, the suburb had a median house price of $976,000 and a median unit price of $645,000. 
</li>
<li>
<a href="/news">Brighton</a>, SA: The beachside suburb of Brighton makes the list for the first time. It has one of the lower median housing prices of suburbs on the list, at $660,000. The median unit price for Brighton is $355,000. 
</li>
<li>
<a href="/news">Fitzroy North</a>, VIC: The inner-northern suburb has seen a steep price increase in the past decade, with a current median house price of $1,240,000. <a href="https://www.realestate.com.au/property-house-vic-fitzroy+north-116454363" target="_blank">This semi-detached home</a> (pictured below) at 526 Rae Street is currently going for $720,000-$790,000.  <img src="/images/2014/03/31/fitzroy%20north%20march%2031.jpg" alt=""> 
</li>
<li>
<a href="/news">Holland Park</a>, QLD: Holland Park is Queensland's only suburb  to make the list. Eight kilometres from the Brisbane CBD, a high proportion of residences in the suburb are wooden post war Queenslanders, like <a href="https://www.realestate.com.au/property-house-qld-holland+park-116439127" target="_blank">this renovated five bedroom home</a> (pictured below) on Arnold Street. The median house price in the suburb is $510,000, while the median unit price is $345,000. <img src="/images/2014/03/31/holland%20park%20march%2031.jpg" alt=""> 
</li>
<li>
<a href="/news">Ormond</a>, Vic: The south-eastern Melbourne suburb of Ormond had a median house price of $765,000 and a median unit price of $632,500. It is the first time that Ormond has appeared on realestate.com.au's list. 
</li>
<li>
<a href="/news">Engadine</a>, NSW: Southern Sydney's Engadine rounds out the top 10 list. Demand in the suburb has increased sharply since 2009, when the median house price for the suburb was $480,000. The median house price is now $744,996, while the median unit price is $523,000. Vendors are expecting offers over $769,000 for this<a href="https://www.realestate.com.au/property-house-nsw-engadine-116504635" target="_blank"> five bedroom, three bathroom home</a> (pictured below) at 135 Thurlgona Road.  <img src="/images/2014/03/31/engadine%20march%2031.jpg" alt=""> 
</li>
</ol>
</body></html>

jrichardson-uRX5hFdKfN

The top 10 most viewed suburbs: realestate.com.au

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Anyone in who has searched though one of the online real estate websites recently, will understand the frustration experienced when price quotes are missing – and judging from Australia’s real estate obsession, it’s no meaningless amount. The REA group alone claim to get “8.8 million unique visitors each month”.
Putting a price on real estate, particularly with homes offered as private treaty, is not difficult.
Ideally, an assessment of the property is undertaken by the sales agent – one familiar with market sales in the immediate locality – and in conjunction with the vendor, a price is set that produces a happy balance between both vendor expectation and local comparable sales.
If interest is lagging in the two weeks following, the agent can negotiate with the vendor to reduce the range.
If sales enquiry is healthy – or an offer in excess of the range is achieved and subsequently rejected – the agent has the ability and ethical responsibility (in conjunction with their vendor) to change the quoted range to reflect the heightened level of interest.
For a proportion of agents acting within their “reasonable” duty of service, this still is the norm.
However, now it seems every second advertisement you click upon, whether auction or private treaty has “contact agent” or a similar term listed underneath the subheading “price”.
An enquiry then produces a roundabout of guessing games with somewhat wishy-washy lines totted out, such as “it’s too early to tell”.
In other words, the agent is indicating he has no idea where to place his price quote, because Joe Blogs buyer hasn’t yet walked through and in some occurrence of pure fiction, stopped to tell the agent exactly what he’s prepared to offer.
Whilst we all agree –in a free market - real estate can only be valued on what a willing buyer is prepared to pay; this is precisely why real estate agents appraise a property against recent comparable market sales in the first place.
When combined with good local knowledge, a market appraisal (not to be confused with a valuation,) will give the agent a very good indication of buyer demand – at least to the degree of being able to publish a negotiable price range that falls in line with vendor expectation at the outset.
I should pre-empt before going further that a proportion of agents I speak to will give me a realistic idea of vendor expectation upon enquiry – however, after years of complaints within the industry regarding those who still choose to lowball their ranges, or quote using a ‘plus’ price, (which in today’s terms, can mean anything from 5-30%) – there continues to be an overall lack of transparency within the sector, allowing a number of agencies (particularly when advertising for auction) to continue selling buyers “false hope” with no fear of reprimand.
To give an example, I recently attended an auction in the Balwyn High School zone.  The property was quoted at $700,000 plus, and later revised to $750,000 plus in the final week of the campaign.
A call to the agent indicated vendor expectation was “very reasonable,” they “hoped” to get over $800,000 I was told, but “who knows?” 
The comparable data told a different story.  A price in excess of $850,000 should have been expected.  This selling agent – (an expert in the area) – would have known this, and the auction merely confirmed it.
The opening bid was $800,000 - $50,000 above the price quote. 
The property did not reach its reserve until $900,000 - $150,000 above the price quote. 
With competition from seven bidders, it finally sold for $1,011,000 – but not before a neighbour I’d been casually chatting to, leaned across and revealed the ‘wish’ price, when she whispered: “I know the vendor, and she wants a million.”
It’s time we valued the ethical side of our sales industry with a little more seriousness than pricing an item on e-bay – with a “quote ‘em low, watch ‘em go” mantra.
The continual problem with different methods of quoting – or lack thereof – runs to the very base of mistrust most buyers have against the real estate industry as a whole - and it’s a brush that tars us all.
<blockquote>
It’s time vendors were required to take shared responsibility with the agency for their own paid advertising campaigns and ensured their reserves are published at the outset.
</blockquote>
Even in a buoyant market, recent data will give a good pinpoint of expectation for the agent to advise their vendor’s of an appropriate reserve at the outset – should market forces take over once the property has reached that reserve, so be it – it doesn’t change what should be a simple exercise.
It seems silly to point out the obvious, but no buyer likes to play guessing games when it comes to putting a price on an advertised listing – and neither should they have to.
Everyone understands real estate is a negotiated asset, however, the verbal game playing that now surrounds the sales industry is often laughable – ranging from “we don’t know yet” to “properties in the area are selling in the $400,000 and $500,000 range” – information a simple internet search could reveal.
When an enquiry is made regarding price, the one bit of information buyers require, is an accurate ‘ball park’ indication of vendor expectation. 
Whether it’s too high, or at a reasonable level for market demand doesn’t matter – the vendor is signing the contract and therefore interested buyers need evaluate if it falls in line with their own budget constraints.
As for an assessment of value - if we were operating in an ideal world, buyers would ignore price quotes altogether and do their own research to establish market value, prior to spending hundreds on a pest and building inspections or solicitor fees chasing an unobtainable dream. However, despite recent improvements, closely comparable sales data is not always readily available.  In Victoria, many are still listed with undisclosed prices.  
Computer-generated “estimates,” are just that - and more often than not, hopelessly inaccurate at providing the depth of information buyers require for effective negotiation.
Suburb reports are equally unhelpful, and while median data will give a clue of the dollars the majority market is spending, they are no help when evaluating individual property prices.
Using a buyer agent who has access to such information is all well and good – however, agents should not have a monopoly on data, and it’s reasonable to suggest buyers deserve a “hint” of vendor expectation by way of an accurate price quote before wasting time and money chasing a dream.
A handful of agencies dealing with the more volatile luxury end of the market, in which interest is discretionary, understandably choose to sell via ‘expressions of interest’. However, the decision to drop the quoted range all together, from a large percentage of real estate advertisements seems, in a good number of cases, to have been employed as “self-protection” from accusations of “underquoting” – a policy designed to protect the sales agent – and not one that’s necessarily in the best interests of their client.
Vendor expectation can often be inflated.  It’s made worst by the commission-based competition between real estate agents and their respective agencies – which can promote the need to “buy” a listing through selling false hope, or risk missing out to a competitor who promises they can achieve more.
Quoting low ‘legally’ is not difficult. In Victoria – which has fallen under more scrutiny that any other state - if the vendor does not disclose the reserve on the sales authority when assigning their listing to an agent, (which is the general practice and advised by most) the quote does not need to reflect vendor expectation.
Instead, an agent must provide a written estimate of market value, which if a range, should be no more than a 10%.  This range is theoretically based on comparable data, but finding near by results to establish a lower price is not difficult - should that be the intention.
For example, in the story I highlighted above – comparables on nearby streets outside the schools catchment area would have placed the listing closer to the quoted range.
Similar applies within the suburb - if you’re not familiar with the good and bad streets, which attract different levels of demand, the price differences can be stark.
Albeit only by quoting below the agents written estimate of market value on the authority is officially “underquoting”. Therefore, under current legislation, the written estimate does not necessarily need to reflect vendor expectation.
It may not be admitted as such, but when agents list a property it is common practice to encourage the vendor to withhold their reserve price. This enables a conservative estimate of value – as either a verbal or published quote range – to glean as much buyer enquiry as possible.
Once again I stress, that each agent has different ethics. I am talking generally across the industry – and unfortunately, there is enough evidence of the above practices to pollute an overall impression of the whole.
Furthermore, if one agent quotes low, and another in the same suburb quotes at a level more reflective of reality – guess which listing gathers the greatest enquiry? A catch- 22 for agents working to turn over business, in a very competitive commission based sector.
The only time an agent is required to adjust the range higher, is if a written offer in excess of the published figure is received. However, what typically happens in this scenario, is the number – (should there be one) – is removed altogether.
The above process of ‘quoting low,’ is sold to the vendor via an explanation of the “buyer pyramid” – it works a little like step quoting – get the lower priced bidders to build momentum during the auction, to fuel those bidding with healthier bank accounts to step in at the end.
In this scenario, during which emotions are strong, buyers tend to bid to win, rather than bid to buy. In a heated market, rational thinking is generally not employed, especially when competition is fierce and ‘fear of missing out’ ensues.
Without the lower budget bidders, auctions can pull up short lacking the usual frenzy that has - in our boom eras of growth - significantly contributed to pushing medians to unsustainable levels and exacerbating upward swings in the market cycle.
Furthermore, any gaping hole between the quote and reserve can be waved off with the excuse that the vendor ‘changed their mind’ – or ‘upped’ expectation.  Hence why it is so easy to get away with purposefully placing the price range below the level at which the vendor will sell – and when that quote is verbal, it’s arguably easier still.
To suggest that a property owner’s expectations fluctuate to such an extent so as to not be represented in the price quote is highly questionable. Having worked as a sales agent in previous years, I can categorically say there was never a time where I didn’t know my vendor’s approximate reserve well enough in advance of the auction, to place a reasonable quoted range on a listing from day one.
Furthermore, vendors are not without blame. Assuming the price quote is a estimate based on “recent comparable sales” and the vendor isn’t in the dark when it comes to the price quoted on his or her vendor-paid advertising, why would he or she agree to list the property and quote at a level they would not be willing to sell for in the first place?
In such instances, I would suggest this is a pretty good example of what should officially be termed “underquoting” – conservative at best, deceitful at worst.
There are many solutions to this puzzle, which would not be difficult to legislate. 
Some states have suggested banning quotes altogether – either verbal or otherwise - but this does not take us closer to an effective solution for buyers. Additionally, it makes it very hard for a good sales agent to interact with buyers to enable them to modify their vendor’s expectation as the campaign progresses.
With this in mind, I would suggest, it’s time vendors were required to take shared responsibility (with the agency) for their own paid advertising campaigns and ensured their reserves – or ranges in which they’re prepared to negotiate within – are published at the outset and provide an accurate indication of a price they are willing to consider.
If minds are changed, quotes should be changed, but leaving such a large question mark for buyers, who are increasingly frustrated at having their time, money, and energy wasted, is damaging for all concerned. 
Follow Catherine on <a href="https://twitter.com/CCASHMORE_BUYER" target="_blank">Twitter</a> or via her <a href="https://catherinecashmore.wordpress.com/" target="_blank">Blog</a>.
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catherinecashmore-6LXia3pPQj

Legally underquoting?  How agents get away with it  

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Yesterday the Australian Bureau of Statistics (ABS) released its quarterly demographic statistics for September 2013.  Unfortunately this data set has a significant reporting lag nevertheless it is still a valuable regular release.
<img class="aligncenter size-full wp-image-3045" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Chart-1.jpg" alt="Chart 1" width="500" height="183">
Over the September 2013 quarter, the national population increased by 100,556 persons or by 0.4%.  Throughout the 12 months to September 2013, the national population has increased by 1.8% from 22.8 million persons to 23.2 million persons (405,446 new residents).
<img class="aligncenter size-full wp-image-3046" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Chart-2.jpg" alt="Chart 2" width="500" height="184">
Looking at the components of national population growth, natural increase (or births minus deaths) was recorded at 164,428 persons over the past year and was 2.9% higher compared to September 2012. 
<blockquote>
While the rate of population growth is accelerating in New South Wales and Victoria it is slowing or stable across all other states. 
</blockquote>
In fact, the rate of natural increase is now at a record high level. 
The other component of population growth at a national level is net overseas migration.  Over the 12 months to September 2013, there were 241,018 net overseas migrants; the figure was 1.0% higher than over the previous year.  Although net overseas migration was higher over the year, it actually fell compared to June 2013.
<img class="aligncenter size-full wp-image-3047" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Chart-3.jpg" alt="Chart 3" width="500" height="185">
Looking across the individual states, population growth over the 12 months to September 2013 was greatest in Victoria (110,537), New South Wales (108,067), Queensland (83,737) and Western Australia (76,346). 
These four states accounted for 93.4% of total population growth over the year.  Annual population growth for New South Wales was at its highest level since June 2009 (110,294), in Victoria growth was at its highest level since September 2009 while in Queensland and Western Australia population growth was lower than in June 2013 (88,598 and 81,327 respectively).
<img class="aligncenter size-full wp-image-3048" src="https://blog.rpdata.com/wp-content/uploads/2014/03/Chart-4.jpg" alt="Chart 4" width="500" height="186">
Looking at the rate of population growth over the year, it was fastest in Western Australia (3.1%), Victoria (2.0%) and Queensland and the Northern Territory (both 1.8%). 
At 1.5%, New South Wales’ rate of population growth was at its highest level since September 2009 and in Victoria population growth was at its highest level since December 2009.  While the rate of population growth is accelerating in New South Wales and Victoria it is slowing or stable across all other states. 
Most notably, the rate of population growth in Queensland is at its slowest pace since September 2011 and in Western Australia it is at its slowest pace since December 2011. 
The Australian Capital Territory has also been recording strong population growth recently however, the 1.6% growth over the past year is the slowest rate of growth since December 2006.
The data indicates that population growth is escalating into the two most populous states, New South Wales and Victoria, which, perhaps not so incidentally, are also showing the strongest housing market conditions. 
In each other state and territory the rate of population growth is generally waning. 
Overseas migration may have also peaked which is no surprise given that the mining investment peak may have already or is expected to shortly pass. 
We believe that population growth will remain at high levels on an historic basis however, it would not surprise us to see the rate of growth slow further over the coming quarters.
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ckusher-ujnxiKuFQs

ABS stats reveal population growth is escalating in NSW and Victoria

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Moderate growth in office stock take-ups from government related leases in Sydney and Melbourne and demand from smaller private tenants has not been enough to overcome slowing tenant demand, according to Knight Frank’s Annual Eastern Seaboard Suburban Office Report.
However, in spite of the understated performance in leasing markets, the report noted that east coast investment sales activity reached record levels over 2013, with $1.15 billion worth of sales greater than $10 million, a result that was up 62% from 2012 level and that exceeded the previous record in 2007 by 12%.
The report cites sluggish labour market as a primary factor in decelerated demand in the suburban office market. The east coast suburban vacancy rate for January was at 8.2%, up from 7.5% the year prior, said Knight Frank head of research and consulting, Matt Whitby.
 “The only market to buck the upward trend in vacancy rates over the past year was Brisbane (9.3% down from 10.2%), albeit this was solely driven by the improved performance and take up which occurred in the inner north eastern precinct, including suburbs such as Lutwyche, Nundah, Eagle Farm and Hamilton,” said Whitby.
“Over the past year, the suburban vacancy rate in Melbourne increased from 6.1% to 7.5%, whilst Sydney’s suburban vacancy reached 8.7%, up from 8.4% a year earlier.”
Frank Knight reports that supply levels have remained relatively benign, with gross office supply levels in all markets over 2012 and 2013 below the historical average. In 2012 the total east coast office supply was at 87,996 square metres, while in 2013 84,527 square metres were supplied.
“Development activity in the suburban market is expected to pick up in 2014, with just over 100,000 square metres expected to be completed, driven by larger developments in Melbourne and Sydney,” noted Whitby.
“These projects are underpinned by government/public sector entities such as the Australian Taxation Office (two buildings), South East Water, Australia Post and the CFA. The suburban markets are expected to remain largely pre-commitment led for the larger projects, attracting cost sensitive but location indifferent entities which seek modern, large floor plate accommodation. In addition, some smaller speculative construction in the office parks is expected to continue.”
Average east coast suburban office gross face rentals have recorded approximately 0.4% growth for A-grade assets over the past 12 months. Weighted average A-grade gross face rents are currently $403 per square metre, ranging on average from $441 per square metre in Brisbane to $396 per square metre in Melbourne.
<img src="/images/2014/03/28/kf-chart-two-march-28.jpg" alt="">
However, gross effective rents (rents averaged over the full term and taking into account incentives or rent-free periods) fell by 1.9%, as incentive levels over the year. Prime incentives were up over the year, according to Knight Frank, averaging 22%, from 20% a year ago on a weighted basis.
The eastern seaboard suburban market’s highest average face rentals were found in Brisbane’s inner north precinct, at $475 per square metre.
“Although the majority of sub-markets recorded flat to negative rental growth over the past 12 months, the exceptions were the relatively strong performing markets of the outer east in Melbourne along with the south and inner west in Sydney,” Whitby commented.
“Gross face rental growth was highest in the outer east precinct in Melbourne at 4.1% and the majority of which came from the lift in prime rents associated with the development of new generation projects built over the past two years.
“In Sydney, the south region, which recorded gross face rental growth of 2.4%, has been one of the better performing markets in terms of leasing activity as a result of relatively firm enquiry levels seeking creative style accommodation along with access to the improving amenities of the area. In the Sydney Inner West, face rental growth of 2.4% has been recorded on the back of the steady momentum in the Sydney Olympic Park and Rhodes markets, albeit the rise in A-grade incentive levels to 24% from 22% offset the growth on an effective basis.”
Of the suburban market’s performance in comparison to results from the CBD, Whitby noted that the suburban market continues to trail behind.
“The suburban market continues to lag the yield compression being experienced in the CBD and core markets. However an average 20 basis points of firming occurred over the past year, driven by Melbourne which recorded a 40 basis point compression in prime and 50 basis point of firming in secondary assets,” he said.
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Labour market headwinds see east coast suburban office vacancies up: Knight Frank

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Trends shaping the property market are a fascination for anyone looking to find the next area to see capital growth, or to predict where demand may lie.
Interestingly enough, it’s not the ‘ageing’ population that has demographer Mark McCrindle’s interest – but ‘downageing’.
This is a concept where people live the typical lives of those that would usually be younger and is what McCrindle says is the next cultural trend to shape the country, interstate migration and the property markets.
While McCrindle doesn’t necessarily mean that we’ll see those in their 50s turn to a lifestyle of two minute noodles and two minute relationships, he does suggest that we’ll see Australians retire later in their lives, working into their 70s, and moving into areas that have better employment opportunities. This may go some way to debunking the tree-change, sea-change culture that is the commonly expected next shift of the ageing population.
Presenting the trend to the Urban Development Institute’s National Congress in Brisbane, he announced that the property sector needs to rapidly change to react and accommodate to the downagers.
“Because we are, overall, living longer, we recognise the financial need to also work for more years and set ourselves up better from the start,” he said.
McCrindle’s own research, in conjunction with Australian Bureau of Statistics data, saw Australians working longer and also moving more frequently across the country.
“The states with the highest population growth rates WA, ACT and QLD (3.4%, 2.2% and 2.0% respectively) are also the states with the nation’s lowest unemployment rates 5.9%, 3.4% and 6.2%,” he said.
However, downageing is across market sectors and age groups.
“As a direct result of the downageing pattern, young Australians are less inclined to rush into employment or marriage, choosing instead to expand their tertiary education and save money whilst living at home with family members,” he said.
These delays in achieving ‘traditional’ milestones, such as starting a family or getting a job, is causing more mobility across communities, he said, noting this means that transient populations are more common.
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The new trend shaping Australia’s property market: Demographer

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The recent Australian Bureau of Statistics’ demographic information release has been picking up by the Housing Institute of Australia (HIA), who explained that it pointed to a strong and ongoing demand for housing.
With Australia’s population ticking upwards, by 100,000 people in the September quarter of 2013, cites HIA economist Geordan Murray, the new total is 23.24 million. “The result provides annual growth of a relatively strong 1.8 per cent,” said Murray.
In the year lead up to September, the birth minus death rate, also referred to as the natural population increase, increased the population by more than 164,000 people, to the tune of 2.9% growth and a 0.7% overall annual population growth addition.
“We have a situation where the importance of migration in securing the nation's future economic prosperity is widely, and appropriately, acknowledged. It is vital that the implications of stronger population growth for housing demand are reflected in a clear and strategic focus on housing supply policy from all levels of government,” he continued.
Net overseas migration also increased by 1% in the year to September 2013.
Population growth and the relationship with housing is a keenly discussed factor in Australia’s future. Observer <a href="/expert-insights/investing/long-term-population-growth-forecast-makes-australia-a-sensible-investment">Pete Wargent recently pointed to this aspect as the reason why Australian property is attractive to invest in</a>.
“It's often said that where a population does not grow then GDP growth may likely stall, in part because Australia, like many developed nations, has an ageing population,” he explains of the dynamic.
Criticism has also been levelled at government bodies in the past for not planning ahead for population growth, and the <a href="/expert-insights/investing/our-politicians-are-ignoring-the-realities-of-population-growth">HIA’s comments have been cited by Robert Simeon in regards to this</a> back in December
The Urban Development Institute of Australia is <a href="/news/better-planning-critical-for-projected-population-growth-udia">suggesting more land releases and a closer look at policy</a>.
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Demographic statistics from the ABS point to housing demand: HIA

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GUEST OBSERVATION
Prime Minister Tony Abbott’s planned repeal of 9,500 redundant regulations and 1,000 Acts of Parliament could loosen dangerously close ties between politicians and developers. While such ties are problematic in many parts of Australia, the recent investigation of the Obeid family by NSW’s Independent Commission Against Corruption has brought this issue to the forefront.
Research that I undertook when I was leading a 2011 bid for a Cooperative Research Centre in Heritage demonstrates that the nexus between politicians and developers in Australia has become perilously close. Over the last decade, red tape involved in the heritage approvals process has resulted in a dramatic increase in direct ministerial approvals for developments.
In New South Wales, for example, the use of ministerial <a href="https://majorprojects.planning.nsw.gov.au/index.pl?action=search&amp;page_id=&amp;search=&amp;authority_id=&amp;search_site_type_id=&amp;reference_table=&amp;status_id=&amp;decider=&amp;from_date=15%2F2%2F2011&amp;to_date=3%2F3%2F2011&amp;x=68&amp;y=17" target="_blank">approvals for major projects or infrastructure</a> rocketed from a total of nine during 2001-2005 to 457 in 2010. Forty-three were approved in the two weeks prior to the state government going into caretaker mode.
Red tape is needed to reduce risk and to ensure transparent and equitable processes. However, too much red tape stifles investment. Moreover, frustrated developers seek greater use of ministerial “call in” powers to circumvent slow approvals.
<blockquote>
There is an economic need for a streamlined information system that reduces the approvals delay and provides certainty for developers.
</blockquote>
Australia’s current heritage approvals process is fragmented across jurisdictions, between agencies and between Indigenous and non-Indigenous heritage. This has produced mountains of uncoordinated, non-standardised data. This data is inaccessible, often redundant and usually incomplete.
Decision-making power is dispersed across numerous agencies. Decisions depend on the interpretation and knowledge of individuals rather than on a solid evidence base. We need integrated data-sets that make it possible to determine what is common from what is rare or unique. Common approaches to data collection, storage and use should produce consistent decision-making.
The escalation of ministerial approvals for major developments in NSW emerged in 2005. The Environmental Planning &amp; Assessment Act 1979 was <a href="https://www.planning.nsw.gov.au/en-us/developmentproposals/developmentassessmentsystems/part3aassessmentsystem.aspx" target="_blank">amended to include Part 3A</a> for major projects of state and regional significance. Part 3A determined that the only planning approval required was that of the NSW planning minister. Each project had a spend in excess of $50 million.
With Part 3A, both concept and project approval from the minister had statutory force. Part 3A projects circumvented local council approval and both state heritage acts. These projects did not need approvals under either the Heritage Act, 1977 or the National Parks and Wildlife Act, 1974. Moreover, Part 3A projects were protected from emergency protection orders and third party legal challenges under state environmental or planning statutes.
While the aim of Part 3A was to provide up-front certainty for long-term or complex projects, this provision was abused. When the Liberal government came to power in NSW Part 3A was replaced by two separate assessment frameworks. One is for state significant development. The other is for state significant infrastructure. Importantly, the new system constrains the “call-in” powers of the Minister.
It was anticipated that the number of applications designated as state significant would drop by half. Nevertheless, the level of ministerial approvals for major development projects is still way beyond what it was a decade ago.
Throughout Australia fast-tracking major projects through ministerial approval has become a viable alternative to following due process. Occasional exemptions have become routine and the nexus between politicians and developers has grown murkier.
A sustainable alternative to relying on ministerial approvals for large developments is to lessen delays in heritage approvals. Reducing red tape is one part of this.
Developers need access to sound information. A standardised, integrated and coordinated information system would support sound decision-making. A comprehensive database would make it possible to assess if a cultural heritage place is unique, or one of thousands. Such a system would make it possible to classify and rank heritage assets. It would provide an evidence base for determining what can go and what needs protection.
Uncertainty over heritage approvals is costing investment and jobs throughout Australia. In the resource sector, for example, <a href="https://www.fraserinstitute.org/research-news/display.aspx?id=20902" target="_blank">The Fraser Institute’s annual Global Survey of Mining Companies</a> consistently identifies uncertainty over the protection of wilderness, parks and archaeological sites as a strong deterrent to investment across Australia.
There is an economic need for a streamlined information system that reduces the approvals delay and provides certainty for developers. Such certainty needs to be based on good, irrefutable data. In addition, decision-making should be informed by community values in order to pre-empt conflict and provide long-term confidence.
Australia’s cultural heritage is recognised globally as unique. It includes the world’s oldest continuous cultural traditions, some of the first evidence for modern human behaviours and rich rock art complexes. In addition, it includes the histories of more than 200 migrant groups.
This important heritage needs to be protected. However, we need to grow Australia’s economy and we can’t keep everything. Decisions have to be made about what we pass on to the next generation as heritage and what we let go. These decisions need to be transparent, fair and consistent.
Reliance on ministerial approvals raises concerns about transparency and challenges the integrity of the system. It is possible that the current corruption cases in NSW are only the tip of the iceberg.
Claire Smith is professor of archaeology at <a href="https://www.flinders.edu.au/" target="_blank">Flinders University</a>.<img src="https://counter.theconversation.edu.au/content/24638/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
Claire has received research and community project funding from a number of mining companies, including BHP-Billiton and Rio Tinto.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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jake-cSmGT7VXVf

Tackle fast-tracking of approvals to close nexus between politicians and developers

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The flattening number of properties sold under the hammer, which has dropped to one in four from one in three, and the weaker average number of bidders at each auction, which has fallen from the mid twos to the high ones, are signs the market is easing.
But we are not saying that it is going backwards. The market has been taking off for the last 18 months since October 2012, and this may be the first signs of a leveling of the altitude.
Last month we had clearance rates in the 70s – but now it is in the 60s.  It is still moving forward, its just that the angle of the ascent is not as steep in March as it was in early February.
It’s also still possible that the market may simply be in a slight lull before it begins another rise, exactly like the upwards staircase (rise, level, rise, level) we saw last year and towards the end of the previous year.
At the three auctions I bid at on Saturday, there were two bidders (Hampton), four bidders (Brighton East) and four bidders (Malvern East). All three were bought under the hammer having sailed comfortably past their quotes and then their reserves.
Next week is another Super Saturday, with nearly 200 $1 million plus auctions scheduled across Melbourne. So, by 6pm next Saturday we should have a definitive answer on whether we’re seeing a real change in the market direction as we go into Easter.
Negotiation council
But the action is not all auction-based right now. While by the end of last week we had cleared the decks a little and were down to only four ongoing negotiations, a week later we were back up to eleven ongoing negotiations that were being discussed and picked apart at our twice weekly negotiation councils.
A number of clients have asked us what is a negotiation council and what happens at them.
All the better selling agencies have them. They are like match committees or, for the sportingly challenged, like board meetings. We have them twice a week – Tuesdays and Fridays – and we discuss any of our active negotiations, including private sales, expressions of interest, auctions, and off-markets. As I said, we had 11 such discussions on Friday.
The meetings can be formal or informal. Eight to 10 of us sit around a space, and each negotiation is presented and workshopped. We look at what the client wants, the current state of play, the outside forces, the agents involved and their track record and so on, and then we simulate different plays and look at possible outcomes just as a coach would draw up on their chalkboard.
Even though I have bid at more than 1,000 auctions and negotiated hundreds of private sales, EOIs and off-markets, I find these meetings most valuable. Someone almost always has something to improve the plan, and even if they don’t, that fact gives me greater strength going forward that we’re going about things the right way.
A negotiation council is the standard procedure at any good agency, on any deal. This is why you rarely, if ever, get a standard or quick reply to an offer. Over the years the making and receiving of offers has become a very sophisticated process. Every time a milestone is hit by a buyer, e.g. an offer or a significant increase in an offer, it is taken back to their client and also taken back to their negotiation council.
Once the negotiation council has discussed the deal and agreed on a strategy, a smaller negotiation team is given clear parameters of how and when to operate. Deals are done once the result is firstly approved by the client and then secondly if it falls within the agreed negotiation council process parameters. That way a bigger organisation can operate relatively quickly and nimbly to meet the characteristics of a fast moving deal, while still having the benefit of everybody’s input.
Tug of War
I am still surprised when an otherwise very sophisticated businessman tells me proudly that they are launching a full-on assault on what they consider to be a measly agent to secure their dream property. They just don’t know what sort of a self-inflicted ambush they are walking into.
You may be chock-full of adrenaline and overloaded with other types of negotiation experience, but if you are dealing with a successful agency on a good home, you are not in man-to-man combat, you are in a tug of war – and the sides aren’t even.
On one side, pulling furiously in the quicksand, is you.
On the other side, on a relatively firm footing, is a team of two, three or more – in some cases backed up by a number of others feeding them info and plays and scripts and research.
Take a look in the footy coach’s box next time you watch the footy on the telly – that is what you are likely to be up against when you are engaged in an expression of interest, pre-auction offer, boardroom auction, lengthy private sale or off-market.
Good luck!
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maljames-vHwm28JUAa

Negotiation council: Planning for success

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Shimmering like a beacon, the Gold Coast market has, for many, become a bellwether regarding the health of the Queensland residential market.
So, how is its shimmer?
Some facts first:
<ul>
<li>550,000 permanent residents</li>
<li>Sixth largest urban area in Australia</li>
<li>Growing by 11,000 new residents per annum</li>
<li>For every five people on the coast today, there will be eight within 25 years</li>
<li>One in three properties are rented</li>
<li>Three out of five rental households hold no children</li>
<li>59% of owner-resident households also hold no children</li>
<li>Yet three-quarters of all dwellings have three or more bedrooms</li>
<li>A quarter of residents rent from family or friends</li>
<li>Need to build 5,000 new dwellings each year</li>
<li>Just 2,500 approved last year</li>
<li>Past oversupply now absorbed</li>
<li>Median lot size is now 455 square metres</li>
<li>New detached housing development controlled by a limited few</li>
<li>Very little new housing supplied via small infill builds</li>
<li>310,000 locally employed</li>
<li>New jobs are being created – 5,500 last year</li>
<li>Unemployment is 5.7% but was 7.4% in 2011 and 9.5% in 2001</li>
<li>Average family household income is $77,500</li>
<li>6.2 income to detached house price ratio; 4.1 for attached dwellings and 4.5 for apartments</li>
<li>33% rental income spent to rent a house; 26% for attached dwellings and 28% for apartments</li>
<li>Gross rental yields for houses 4.4%; 5.2% for attached dwellings and 5.1% for apartments</li>
<li>18,000 residential sales this financial year</li>
<li>Our forecast is for 22,000 sales during fiscal 2015</li>
<li>56% moved within last five years</li>
<li>18% from interstate and 16% from overseas</li>
<li>1,200 vacant properties for rent</li>
<li>Vacancy rate is 1.4%, but rising</li>
<li>10,000 resales on market and falling</li>
<li>Rents rose between $10 and $20 – depending on product type – during 2013</li>
<li>$230,000 current median land price</li>
<li>$510,000 detached house</li>
<li>
$375,000 attached dwelling 
</li>
</ul>
But enough showing off.
Some comments
The Gold Coast has just entered a recovery – enquiry is increasing; so, too, is building activity and sales; return of price growth plus improving rents.  In short, a more equal market.
This recovery is likely to be weaker than past ones.  Employment growth, whilst occurring – which is a nice change for the Gold Coast – remains weak and housing affordability relatively low.
Low affordability is forcing many renters and owner-residents to accept more compact housing and within this, dwellings of smaller size i.e. with fewer bedrooms.
We anticipate the strongest residential demand for two and tight three-bedroom stock on the Gold Coast in coming years/decade.  Therefore investors should consider buying compact housing over more traditional detached product.
As for timing – and all things being equal – the Gold Coast should remain in the recovery phase of the cycle this calendar year; entering an upswing in the middle of next year and peaking in mid-2017.
Our work shows that almost all of the price and rental growth that takes place over the full property cycle takes place during its recovery and upswing.
So if you are looking at the Gold Coast as a place to buy a residential investment property, then this year is the time to do something.  Some really good bargains are available.
But investors, in the main, need to limit their expenditure to under $450,000 for resale or second-hand stock and under $550,000 for newly built or off the plan investment stock.
Our forecasts are for attached dwellings – on average – to rise by up to 8% on the Gold Coast over the next 12 to 15 months.  Less price growth is expected for traditional houses and vacant allotments.
At last, the Gold Coast, finally, has got a bit of a shine!
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>.<a href="https://www.matusik.com.au/" target="_blank" rel="nofollow"> </a>
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