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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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I’ve spent considerable amount of time in the US in the last six months; both as a holiday-renter in Hawaii and as a short-term-stay, ‘business-traveller’ in Los Angeles. During these visits I’ve had some great exposure to the self-managed holiday rental property market not as an investor, but as a tourist renter.
The time spent got me to thinking about self-managed rental investment properties and produced a list of pros and cons if you are considering this leasing strategy for your rental property.
Pros
<ul>
<li>Gross returns can be lucratively higher than residential home property investment.</li>
<li>Property types that can achieve this aren’t just restricted to ‘holiday rentals’, whereby you buy into a scheme such as a time-share condo, or as part of a resort investment, but also well-located, private properties.</li>
<li>You are the ‘direct manager’ of your property, enabling you to save money on management fees. This can create a greater chance of a property being positively geared and returning better revenue.</li>
<li>Online services such as AirBnb and TripAdvisor enable you to affordably find short-term tenants easily and securely. This means that investors could consider coastal properties that are not part of any specific resort complex as potentially high-return short-term-stay, self-managed, investment properties.</li>
</ul>
Cons
<ul>
<li>Though gross returns are higher, sometimes net returns are not as great due to increased management fees eating away the revenue. For some properties the returns might even be less than a traditional domestic investment property, but with more management work (i.e. your spare time) required.</li>
<li>Seasonality. In Australia this is a big deal. Take for example holiday properties in the south or Tasmania. Demand may be great in summer, but those returns achieved in summer may not average out over a financial year to be very good, when accounting for the quiet times during winter.</li>
<li>Running costs. One of the biggest challenges in Australian holiday property is that most properties are part of complexes with extortionately expensive management costs. So, above and beyond the standard strata, council, and water rates you’d need to pay, there are cleaning/housekeeping costs, higher owners strata rates to pay for pools, additional staff, and so on, to be aware of.</li>
<li>Seaside property maintenance. Unlike residential housing on the coast, where the sea air eats away and the pretty paint work yet the property can still be rented as-is, seaside holiday resorts need to look immaculate at all times, to ensure the resort remains desirable for future guests and this comes at a significant cost to owners.</li>
</ul>
Further Considerations
Taking Hawaii as an example/case study; I believe some locations offer solid investment potential for those open to the concept of remote self-management and some different options both in terms of ownership structure and costs, as well as supply and demand. Here’s just a short list of observations I made, through asking some locals and concierge staff some questions:
<blockquote>
Some locations offer solid investment potential for those open to the concept of remote self-management
</blockquote>
Climate
Climate plays a huge part to the overall financial success or failure of a rental property of this type. The beauty of a place like Hawaii is that for almost every month of the year the climate is pretty much the same, year-round. This means that demand for holiday property is consistent all year long, with no real dry-spells; i.e. very low vacancy rates. Australian holiday rental properties in a year-round climate are harder to source.
Demand for the area
With a domestic population of 350 million and growing, Hawaii is highly appealing for domestic US holidaymakers. This is an important area to pause on. Solid domestic tourism participation is important in any country – Australia included – because these holiday makers aren’t affected by currency exchange variations when they travel. This makes travelling in your own backyard constantly feasible.
Australia on the other hand has a small domestic population, making holiday rentals higher risk because of our reliance on international tourists to rent the properties. Our fluctuating currency suddenly becomes an unknown that is difficult to account for in your investment.
Exclusivity:
A place like Hawaii is expensive to fly in to from any location in the world, not just Australia. This isolation mixed with strong desirability creates a near-unique opportunity for Hawaii more-so than Australia to attract only affluent holiday-makers.
With a more affluent audience occupying the properties there is reduced risk of damage to properties and other problems that can occur when a location is not as exclusive. Insurances of course always need to be considered for any property investment; however, policies are often more affordable when an affluent rental tenant occupant (even short term ones) are quoted on.
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cmcevoy-Go82SmsJA9

The pros and cons of self-managed holiday rentals

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Have you noticed how people are generally now acting in a far more positive manner and that's simply because they are starting to feel "wealthy" again.
But you need to look deeper
With share and property prices rising, consumer confidence has finally returned — which was confirmed by the improved retail sales during December and January.
Plus, you saw GDP exceed expectations — by rising 2.8% for the December quarter.
This increased spending is also being supported by high household savings.
A clear indication of renewed confidence
And this has shown now up in spending for entertainment and eating out — which historically, has been recognised as a clear indication of renewed confidence.
New housing approvals have improved by 35% over the past 12 months. And once complete, these homes will also need to be fully furnished — which is great news for all the homemaker centres.
Furthermore, Coles will be investing more than $1 billion to construct 70 new supermarkets, over the next three years.
<blockquote>
All of those workers who contribute to this surge in exports will all need to be housed somewhere.
</blockquote>
In its May Budget, the government intends to curb wasteful recurrent expenditure inherited from Labor. While it also plans to embark upon significant infrastructure projects — to start boosting employment around the country.
A surge in exports
For the first time in most people's memory, Australia will be enjoying a positive balance of trade.
In other words, for the next decade or so, you should be seeing our exports exceeding imports. And this will further help in reducing Australia's overall debt.
Even though the boom in mining expenditure may have come to an end, the resultant export of raw materials will now continue for years to come.
Furthermore, our exports in education, tourism and business services will all grow dramatically — as the global economy improves.
All of those workers who contribute to this surge in exports will all need to be housed somewhere. And that will open up opportunities for new suburban office and warehouse facilities around Australia over the next three to five years.
Further evidence of an underlying strength in the commercial property market is now provided by the latest IPD/Property Council index.
During 2013, you saw investors (both local and overseas) stride out from the shadows of the global financial crisis. And as this graph confirms, every sector has displayed a healthy improvement in selling yields.
Both the US and UK commercial property sectors have responded slightly ahead of Australia, because their labour markets (and therefore demand for space) have been improving at a faster rate.
Savvy investors are already in the market
Investors have already sought out solid opportunities.
Nevertheless, there has been significant (and consistent) Asian money pouring into Australia over the past 12 to 18 months — as investors have already sought out solid opportunities in the $100 million plus bracket.
This has effectively forced local buyers to bid up prices for lower-valued properties — or simply miss out on securing a position, before the expected upsurge gets fully underway.
The effect of this strong activity won't take very long to filter down through to the lower price brackets and then, out into the wider suburban markets around Australia.
Bottom line: They say that no one rings a bell at the bottom of the market. However, what's occurring is probably the closest you'll likely get.
Therefore, observe the signs and make sure you act accordingly if you've been at all hesitant about stepping into the market.
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chrislang-EQKojcgJPV

Commercial property benefiting from economic upturn

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Kerry Packer once said ‘Cash is king’.  That was easy for him to say after Alan Bond had just given him $1 billion.
For the majority of us who do not have the luxury of a Bond we need to invest our money so we can accumulate the cash at some future date.
As property investors begin to return to the market many will be enticed by the lure of cash tax benefits such as depreciation and stamp duty savings.
While these benefits are an important consideration in your overall investment strategy, they should never be the driving factor in asset selection. This is because they are short-term tax benefits that have very little impact on the future performance of the investment.
<blockquote>
Yes it maybe is true that cash is king for those that have it, but for the rest of us the long-term viability of the investment is ‘King’
</blockquote>
Stamp duty savings are a one off benefit at the time of purchasing off the plan. At the same time most of the depreciation allowance an investors receives is used up in the first five to 10 years.
Investors need to be wary that these tax benefits are often used as marketing tools to sell property but because they are only short-term the investor will not be able to use the same marketing tools when it comes time to sell their investment.
When selecting investment property it is important to focus on the long term economic drivers that will underpin its performance and will continue to be there in years to come. These factors include the underlying land value, supply relative to demand and the evolving demographic trends. 
While there is nothing wrong with investing for tax benefits investors need to consider the overall investment. In other words if in the end the investment does not make any money or even worse looses money were the tax benefits alone worthwhile.
My understanding of investing is to invest to make money at some date in the future. The benefits should come at the end not at the start.
Yes it maybe is true that cash is king for those that have it, but for the rest of us the long-term viability of the investment is ‘King’. Everything else is just a bonus.
As property investors return to the market they would be wise not loose sight of that fact.
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marmstrong-sd3emVLPPb

Is cash really 'king'? Knowing if your investment stacks up

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It’s been quite fascinating to follow the Asian buying phenomenon of Australian real estate of late – more particularly how the buying demographics are changing. Most notable the smallest market demographic today in Australian real estate is brand new constructed properties which remain dominated by Asian investors. In recent times we have seen a shift with Asian investors moving into the traditional home market which previously was a no-go market. A reason why would be that this is Australia’s largest property market so it makes sense that now they want to participate in all the available markets.
On a global scale Australia has not really attracted the ultra high net worth individuals (UHNWI) although we are now witnessing this emerging market with the world’s wealthiest fast tracking real estate acquisitions in Australia. Knight Frank 2014 forecasts that 66% of global growth in the numbers of UHNWIs will be from Asia over the next 10 years.
No doubt they would be closely observing that prices have been the strongest in Sydney (up 14% over the past year), Perth (9%), and Melbourne (8%) although it is yet to be ascertained what percentage of these new found gains can be attributed to foreign ownership. Knight Frank Australia’s research director Matt Whitby said there was growing demand from Asian buyers, particularly Chinese, for prestige residential properties in Sydney: “This is driving prices and it is expected Sydney’s prime market growth will continue into 2014, buoyed by low interest rates and steady foreign demand, especially from South-East Asia and China.”
In 2013, over 74% of overseas investment into residential developments in Australia originated from Asia. If one looks at the Forbes billionaires list there are 135 property tycoons in the list who have obviously benefited of late from surging property values around the globe. Even more interesting is that 14 out of the top 20 richest property billionaires hail from Asia. This is further reinforced by recent Foreign Investment Review Board data which shows that Chinese buyers poured $5.9 billion into Australian property last financial year.
Last week in Property Observer Jonathan Chancellor wrote an interesting piece <a href="/news/the-ngs-singapores-richest-family-spend-425-million-on-sydney-trophy-property">The Ngs, Singapore’s richest family, spent $425 million on Sydney trophy property,</a> which again highlights how Sydney in particular is now top of the shopping list for wealthy Asian investors. The sad reality being that with all the buying loopholes currently available in Australia our government has absolutely no idea just how large this buying purge is – well not until 2016 when the next Census of Population and Housing is conducted in Australia.
<a href="https://www.rwm.com.au/files/2014/03/13-03-2014-11-58-11-AM.jpg"><img class="aligncenter size-full wp-image-8465" src="https://www.rwm.com.au/files/2014/03/13-03-2014-11-58-11-AM.jpg" alt="13-03-2014 11-58-11 AM" width="460" height="234"></a>
<a href="https://www.rwm.com.au/files/2014/03/13-03-2014-11-59-51-AM.jpg"><img class="aligncenter size-full wp-image-8466" src="https://www.rwm.com.au/files/2014/03/13-03-2014-11-59-51-AM.jpg" alt="13-03-2014 11-59-51 AM" width="460" height="255"></a>
Interesting that the research into these graphs by Digital Finance Analytics (DFA) found their surveys identified that after 12 months in Australia most are likely to buy in Sydney (47%) or Perth (35%). By extrapolating this data DFA estimates demand for property from migration over the next three years shows an extra 900,000 properties will be needed – of this about 5.6% is driven by net migration. On that basis given past and present construction data I would think we would be lucky to see 300,000 of the required 900,000 new homes built by 2016. On that very basis it would be reasonable to assume that prices more particularly in Sydney will continue to rise for quite some considerable time to come. At some stage down the track governments will be left with no alternative but to play catch – up where the fastest way to do that will be to build highrise developments.
<blockquote>
Negative gearing is now completely out of control to the extent it has the government at a complete loss to understand what is the best approach.
</blockquote>
Unfortunately in Australia today, aside from not having a Housing Minister, there is no strategic housing plan in place so there is absolutely no possibility of these recommended key performance indicators being met. Why should overseas investors be allowed to qualify for first home buyer grants? Then of course we come to negative gearing which is now completely out of control to the extent it has the government at a complete loss to understand what is the best way to bring this back under control.
I’m proud to say that <a href="https://www.rwm.com.au/2014/03/07/the-great-chinese-property-burn/" target="_blank">last week’s post</a> did start many conversations<a href="https://www.rwm.com.au/2014/03/07/the-great-chinese-property-burn/" target="_blank" title="The Great Chinese Property Burn.">.</a> Which is why I believe that Tony Abbott and Joe Hockey will tighten overseas buyers when the May Budget is handed down because nobody can really tell just how powerful this buying dynamic is until many years later.
A Housing Minister and an Australian strategic housingpPlan would be a wonderful start given at present we are catering for parties with absolutely no idea how many will turn up. We all know what happens when that happens, don’t we.
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robertsimeon-hRNTwJyXkQ

The shifting dynamics of the current buyer demographic 

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Over $10 million was spent on real estate every day in Boroondara during 2013.
It takes a few months after the end of the calendar year for a vast majority of property transactions to settle and be finalised.
With final numbers for 2013 now available, a comparison with previous years can now be undertaken.
In 2013 there were 81,590 residential sales in Melbourne and 107,845 in Victoria. Looking at the Melbourne market over the medium term this is a comparatively low level of sales. Since the year 2000, nine years have seen a higher level of sales with a peak in 2007 with 105,194 sales.
Thankfully, a combination of more confident consumers and record low interest rates has been the catalyst for the level of sales in 2013 rising above the two preceding years of 77,867, and 73,459 respectively.
It is important to note that the volume of transactions has a direct impact on the health of the Victorian government budget as a significant portion of its income is derived from stamp duty as well as the industries that supply and support the housing sector, real estate, building and ancillary services.
On a more local basis, the highest number of sales took place in the city’s growth areas with the highest levels of the spending taking place in the inner east.
<blockquote>
The highest number of sales took place in Melbourne's growth areas with the highest levels of the spending taking place in the inner east.
</blockquote>
Across the state’s municipalities, the highest number of total transactions took place in Casey where 4,130 sales were recorded equating to around 11 sales every day. Similar numbers were recorded in the Mornington Peninsula with inner city locations, Melbourne and Boroondara following.
The largest volume of sales in financial terms was recorded in Boroondara where $3.97 billion was spent on residential real estate, or just over $10 million every day.
At the other end of the scale, Nillumbik recorded the lowest number of sales, at 946 and the lowest in financial terms at $507 million.
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rlarocca-zWhvjay44N

$10 million spent on property every single day in Boroondara

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Five years ago, 30% of new dwellings constructed were units and townhouses. Since 2009, the market-share of attached dwellings has risen steadily, reaching 39% last year.
And the latest building approval figures suggest units now comprise 43% of new dwellings.
According to research from Bankwest, demand for medium-density housing has reached the highest level on record.
The Bankwest Housing Density Report revealed that 43% of new home approvals are medium-density dwellings. This is up from the 39% national average in the previous year.
Not surprisingly, capital cities account for 87% of medium-density approvals in the past 12 months. In five cities, units and townhouses comprised more than half of total dwelling approvals – including 68% in Sydney, Canberra and Darwin, as well as 55% in Melbourne and 53% in Brisbane.
Partly this is about affordability. In Sydney, the median unit price is $221,000 less than the median house price. In Melbourne the difference is $138,000, while in Darwin it’s $165,000.
But it’s more to do with lifestyle choices. Busy lives and the value people place on their leisure time points many buyers to a life-maintenance dwelling that doesn’t have gardens to weed and lawns to mow.
For those who want to be close to the inner city at a reasonable price, an apartment is the favoured option.
But buyers need to be careful. Several of our inner-city unit markets are over-supplied and it’s likely to get worse.
<blockquote>
But buyers need to be careful. Several of our inner-city unit markets are over-supplied and it’s likely to get worse.
</blockquote>
Melbourne already has huge vacancies (up to 10% in some near-city markets) and, according to PRDnationwide research, there are 88 large-scale unit projects under way or proposed.
Brisbane has high vacancies (6% in the CBD and approaching those levels in several inner-city suburbs) and has 69 large unit developments coming up. Perth has high vacancies as well, though the number of new projects in the pipeline is relatively small, with 13 new ones identified by PRDnationwide.
Sydney, to date, has not developed an over-supply and there are relatively few projects in the pipeline: 27 new ones under way or proposed.
It’s in Sydney that the trend towards medium-density living is most noticeable. Several of Sydney’s growth markets are apartment markets, including the inner-city areas Chippendale, Darlinghurst and Woolloomooloo - and the City of Canterbury, which includes suburbs such as Campsie, Lakemba and Roselands, where units are affordable.
Rising demand for apartments as a dwelling choice has also challenged the old paradigm that houses on land show better capital growth than units. Apartment markets are increasingly recording growth rates comparable to, and in some cases better than, houses.
But the surplus syndrome means buyers need to be choosy and do plenty of research into vacancy rates and building approval levels before committing.
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terryryder-YECXbqmri2

Units continue to challenge houses as the dwelling of choice

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The north shore commercial property market in Sydney is expected to be an investor favourite this year after stock shortages in 2013 and rising CBD prices, according to CBRE.
CBRE director, capital markets, institutional investments, Simon Kasprowicz, said that transactions would be strong this year, with strength being recorded in buyer enquiry levels.
Kasprowicz pointed to a ‘bottleneck’ of capital at the end of 2013, which he expects to translate into activity across the market.
“We expect to see further strong sales in 2014 on the back of some exceptional results in 2013 for A-Grade stock such as the transaction of Northpoint, 177 Pacific Highway and 168 Walker Street for $83.75 million in North Sydney,” he said.
Yields have, however, been compressing as a result of stock shortages and increased interest.
“The continuation of strong but scarce sales towards the end of 2013, coupled with higher levels of interest from buyers both established and new, is providing owners the opportunity to exit the market and capitalise on yield compressions,” he said.
While there are buyers across price ranges, there are three distinct groups.
1)      A-Grade assets with long Weight Average Lease Expiries and strong covenants
2)      Value-add opportunities with leasing risks and/or repositioning opportunities
3)      Residential development or redevelopment sites
 “In particular, there is strong overseas interest in the residential and redevelopment market, with these groups looking to convert commercial property to residential – further adding to the increased demand for office assets through the reduction of available fringe office space,” he said.
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Commercial north Sydney stock to be investor favourite, even as yields soften

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When looking for your next property acquisition, it can be easy to get swept away in the romance of it all – even the most savvy investor has been known to crumble at a walk in robe with ensuite or herringbone parquetry floors.
But as every expert will tell you, when it comes to purchasing for investment, it’s all about the numbers.
Wilson Property Agent’s principal and director Adrian Wilson advocates considering a property’s per square metre value as a way of looking past the fancy trimmings and getting to the property’s true investment potential.
“While location and magnificent views are an important factor to consider when purchasing a
 property, there is also the consideration of dollars per square metre when searching for the right place,” said Wilson.
“One of the best acquisitions we have available for a discerning opportunist is a penthouse property located in <a href="https://www.realestate.com.au/property-apartment-nsw-sydney-116199963" target="_blank">‘The Bond’ on Hickson Road</a>, occupying some 539 square metres and listed for auction in the mid 3 millions.”
<img src="/images/image2.jpg" width="460" height="345">
“The value for money on this property is exceptional when you conduct a property comparison and calculate the dollars per square metre,” Wilson said. At a listing price of $3-3.5 million, the Hickson Road apartment’s value equates to around $7000 square metre.
“I have been unable to locate any comparable sales data that supports a dollar per square metre rate at less than $10,000 to $12,000 per square metre for this property, putting its worth at upward of $5.5 million – a rare opportunity for a high end purchase.”
The Hickson Road penthouse is opposite the <a href="/expert-insights/buying/barangaroos-first-publicly-advertised-property-sells-for-2-2-million-as-market-heats-up">Barangaroo development</a>, with views north of the headland park and out towards Goat Island on Sydney Harbour. At over $6 billion, Wilson says that Barangaroo is likely to be the largest infrastructure project Sydney will ever see.
According to Tolga Ozer, sales director at Wilson Property Agents, a recent sale he conducted in the Barangaroo development highlights the value of considering a property’s dollar per square metre value. Ozer sold and exchanged a two bedroom apartment in Barangaroo’s Alexander building for $2.2 million, directly across the road from the Hickson Street penthouse.
“This two bedroom apartment in the Alexander building is circa 113 square metres on level six, plus one car space and is due for completion in 2015,” said Ozer. He compares his recent sale with the penthouse on Hickson Street.
“When you compare a mid-level two-bedroom property, which achieved $19,469 per square metre against a luxury 539 square metre, four bedroom penthouse on Hickson Road, with three car spaces, going for around the $7000 per square metre mark, the opportunity and rarity of this investment is really put into perspective.”
Next time you’re attempting to compare your potential investment to similar sales, consider the dollar value per square metre metric. It can also be used to calculate a ceiling on what you’re willing to pay for your investment.
Other top tips for recognising a property’s true value, from the experts:
 
<ol>
<li>
<a href="/expert-insights/buying/a-quality-property-investment-is-not-dictated-by-prestige-or-price-but-by-growth-and-returns">Don't confuse "expensive" with "high quality"</a>. Capital growth potential is what counts.</li>
<li>
<a href="/news/vic/process-beats-intuition-when-buying-property-in-wake-of-autumn-auction-anxiety-mal-james">Follow a process, not your intuition</a>. For Mal James, the process is this: Clarity, assess-value, negotiate.</li>
<li>
<a href="/expert-insights/investing/a-couple-of-classic-first-time-investor-mistakes">Living in an area doesn't mean you know it's investment potential</a>. Familiarise yourself with the figures.</li>
</ol>
 
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How to look beyond the surface to recognise a good investment opportunity

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For the first time in 35 years, a Hamilton Hill home in Brisbane is being offered up for auction this week, having last sold for $60,000 in 1979.
The property, <a href="https://www.eplace.com.au/property.cfm?propertyID=2536483&amp;realestate=24_Hillside_Crescent_Hamilton_QLD_4007" target="_blank">24 Hillside Crescent</a>, sits on 506 square metres with no sales prior to its last sale. The house, built in the mid-to-late 1930s by the Queensland timber merchant W.S. Brett was designed for the merchant himself. At the time, it was covered by The Courier-Mail as a significant property.
The three-bedroom, two-bathroom 80 year old home retains a number of its historical features, including leadlight awning doors, polished cedar timber floors and high decorative ceilings.
Marketing the home is Sherrie Storor of Place, who said that this was a rare opportunity.
“This house occupies an elevated position on Hamilton Hill and has a wide frontage with panoramic sweeps down both reaches of the Brisbane River and onto the city skyline,” said Storor.
“The home was designed to co-exist with its amazing position, with the floor plan oriented to take full advantage of the amazing Brisbane scenery from nearly every room.”
It has formal and informal living areas, patios, an in-ground Jacuzzi and a terrace.
It is looking for buyers who are open to restoring the home, with renovations required on the home.
“There is ample scope to renovate this home and restore its historic beauty while adding instant value,” she said.
There has already been substantial interest from buyers, and the expectation is for some fierce bidding later on today.
“We’re confident the property will sell – in fact, we are under instructions from the vendor that the property must be sold,” she said.
The auction will take place on Thursday at 6.30pm at the Place head office in East Brisbane.
RP Data's 'land value' section from June last year puts the price at $1,150,000.
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Historic Brisbane, Hamilton Hill home up for auction

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Many tenants and landlords choose to maintain a degree of respectful distance. Not Michael Bloxsom, who agreed to help out his landlord – who just happened to be a street level drug dealer.
The 36 year old Bloxsom, from Rockhampton, was arrested when his landlord, Stephen Dobbs, was targeted by the police for drug trafficking.
<a href="https://www.themorningbulletin.com.au/news/cannabis-by-phone-landlord-district-court-/2193320/" target="_blank">The Mornington Bulletin</a> reports that Dobbs was sentenced to four years and 10 months jail on drug trafficking charges on December 18 last year, to be suspended after eight months.
Bloxsom pleaded guilty to one count of trafficking cannabis in the Rockhampton District Court. The court heard that Bloxsom was involved in about 18 supplies of values between $360 and $1,800 as part of Dobbs’s seven month long business. According to Crown prosecutor Susan Hedge, Bloxsom’s transactions accounted for less than 1.6% of total turnover.
Bloxsom didn’t get paid for his work, but did receive some cannabis in exchange for his assistance.
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