Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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The capacity of international social media to enhance real estate agents’ property sales successes cannot be overestimated. It’s a resource of infinite reach and potential - and it carries details of their offerings right into willing buyers’ homes.
Coupled with this, there are almost unlimited numbers of potential buyers out there – often wealthy Chinese – who want to see and read about property of all descriptions and for almost any price.
And one country in which they are especially interested in buying is Australia.
To make social media work well, it helps to understand exactly how it fits into the online marketing process, which is where a new e-book: ‘7 Ways to Improve your International Social Media Marketing’, can help.
The author is Andrew Taylor, co-CEO of Juwai.com, who has 10 years experience in marketing and media in print, online, television and radio brands across Australasia and Pan-Asia. He was a company director and greater China country manager for REA Group, and led its acquisition and growth strategy for Asia.
As co-founder - with Sue Jong - and co-CEO sales and marketing at Juwai.com since 2010, Taylor devotes his time to market research and developing the business. He introduced world first research on Chinese property buying behaviour, the results of which went in the Juwai.com messaging and branding.
The depth of his China research, consumer market insight and property industry expertise, is now channelled into the valuable intelligence provided to customers looking to reach Chinese property buyers.
Jong is is Juwai.com’s international marketing manager, driving marketing and branding efforts and bringing relevant research and insights on Chinese buyers to customers worldwide.
Central to sales success is the “conversion process”, Taylor says.
“That’s because it’s how you ‘convert’ a random web surfer into a member of your mailing list or an out-and-out lead.
“Let’s start on the outside and work our way in. Let’s say a mainland Chinese woman named Chu Lam is considering buying an investment property. She wants something in the $5 to $10 million range, within an hour of an international airport and with oceanfront views.
“Lam hits Weibo, the Chinese version of Twitter, and searches for, ‘luxury beach property’. Because you have been active on Weibo, her search results include a couple of your recent waterfront listings. There is also a link to our e-book on your website entitled, ‘5 Tips for Choosing a Beachfront Property’. 
 
“As a good manager, you had juwai.com translate and localise both your website and your e-book into Chinese. Lam submits her email address to you on the registration form to receive the e-book. Now you have her email address. And, you know she is interested in beach-front property.
“You follow up with an email the next day. You offer to talk her through the recent beachfront sales in your area, so she can get  a better idea of the market. And, you continue to build the relationship from there – the same way you would with any lead.’’
That is how social media fits into the online ‘conversion’ process – or the process of converting inquiries to sales.
Language barriers are overcome by:
<ol>
<li>The agent or the buyer asking the Juwai.com multi-lingual call centre and account team for free help. The staff will translate communications, answer questions and, in other ways, help the agent build a relationship with the buyer. Staff can even make a phone call for the agent if he/she is having trouble reaching a number in China. Juwai.com claims to be the only real estate portal in the world with a call centre.</li>
<li>The company says many Chinese buyers will have the communications issue in mind when they start looking for property in Australia. They may have a colleague or a friend or family member who speaks English, and they often ask them to help. “For example, an agent in Mosman last year sold two plots of land to a Chinese buyer who didn’t speak English. The buyer sent a Sydney-based, English-speaking colleague to check it out before he flew into town to buy it,’’ Taylor said.</li>
</ol>
<ol start="1"></ol>
<ol></ol>
In the e-book the introductory content is for real estate marketers who are relatively new to the subject. This content includes step-by-step instructions on how to get started with this aspect of marketing and learn its fundamentals. “After reading it, they will be able to execute basic marketing tactics related to working with Chinese buyers,’’ Taylor says.
 
The intermediate content is for those familiar with the subject but who have only basic experience in executing strategies and tactics on the topic. This content covers the fundamentals and moves on to more complex advice and examples. After reading it, agents are expected to feel comfortable with this aspect of marketing to Chinese buyers.
 
The advanced content is for real estate marketers who are, or want to become, experts. “We walk you through advanced features and strategies so you can develop full mastery,’’ Taylor says.
“After reading it, you will feel ready not only to execute strategies and tactics for yourself, but also to teach others and even lead entire teams, businesses or networks to success with Chinese buyers.’’
Taylor says social media lets sellers connect with potential real estate buyers, wherever in the world they are located.
“Once you have a connection with these buyers, you can pull them forward into your marketing process, bringing them to your website, or getting them to contact you. Buyers who find and contact you directly via social media tend to be closer to a purchase than other prospects.’’
He says international buyers make up an increasingly important share of real estate transactions. And it’s not just in the traditional cities like New York, London and Sydney. “Wei Gu, of the Wall Street Journal, reports that Chinese and other international buyers are ‘increasingly snapping up properties in second-tier cities with better prices and growth potential’.
“They are going beyond the cities that have long attracted international buyers and landing in regional destinations.’’
In Australia, the cities and towns with the fast-growing Chinese buyer interest this year has included Perth, Darwin, Mandurah and Geelong — according to user data on Juwai.com. They aren’t the top areas for Chinese buyers, but they are the fastest growing, Taylor says.
“Chinese buyers don’t account for the majority of transactions. But, they account for a significant number, and they tend to be more profitable and spend more per transaction than other buyers. Chinese buyers tend to spend more than twice the median house price in a given market, according to data from the US.’’
So, you can limit yourself to the low-spending locals, or, you can use social media to attract the big-spending international buyers. If you choose the latter, follow Juwai.com’s seven-step process and you will be well on your way to international social media success.
Some tips:
Pick your target countries: 
Pick the obvious countries, either the places that are sending the most buyers to your market, or the ones where you have a cultural or linguistic advantage. If you live in Miami and speak Portuguese, it probably makes sense to include buyers from Brazil in your list of targets.
Pick your social networks: You might use Facebook to keep up with your friends, because most of them are on it. But to reach sales prospects, you have to go to the social networks they prefer.
You might be surprised how limited the international reach of networks like Facebook and Twitter are in other countries, Taylor says. While Facebook has 50% penetration in the United States, the world average for Facebook penetration is only 12.1%.
While the Middle East and Asia have a big share of wealthy potential buyers,  Facebook’s penetration is only 5% and 9%, respectively. In Russia, social network VK has 100 million active users — more than Facebook in that country. In China, QZone has 603 million users, according to China Internet Watch. 
 Set your goals:
Some local agents are content to use social media as nothing more than another customer service platform. That is, they use it as they would the phone or email, to communicate with prospects with whom they already have some sort of relationship. Others are more ambitious. They use social media to bring more traffic to their website or to give their brand more exposure, especially in new markets. 
Whatever your goals, having a coordinated, planned approach will make it easier to operate on multiple social networks, and even in multiple languages.
Decide ahead of time how you want to use social media, and choose your tactics accordingly.
Graphic: Chinese prefer their own social media networks
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/11/29/laptop-mediacomparison-AUS-big.jpg" title="Click to enlarge"><img src="/images/stories/2013/11/29/laptop-mediacomparison-AUS-small.jpg"></a>
Choose your languages.
Only about 1% of Chinese speak English, and nine out of 10 Europeans prefer to surf the web in their native tongue. Get the picture? When deciding which languages to operate in, focus on those used by the largest numbers of your prospects. 
 Decide how many accounts you really need. 
You might be tempted to set up a Facebook page for every language in which you’d like to work with buyers. That would be a mistake. You can achieve the same results with just a single page on Facebook using its post-targeting tool. 
Access it at the bottom of the compose box, just next to the ‘post’ button. 
Let’s say you put up an item in Russian. Use the targeting tool to select Russian speakers, or even residents of individual Russian cities. Other social networks have similar tools.
Once you have created your new post, click on the word ‘public’ in the blue box, at that bottom of the post. Select “Location / Language” and go on to target the post to your preferred populations.
Create a destination on your website for each language. 
If your goal is to acquire new customers via social media, ultimately you will want them to visit your website. Post all of your new content for each segment of buyers on your site first. Then link back to it from your social media posts.
Once they are on your website, you will have more opportunities to capture their contact information, show them listings and persuade them to work with you. This is an extra step compared to simply posting a link in your Twitter feed to a news article, without first posting that news article on your own website.
It’s worth it. You’ll generate more direct traffic to your site. If you do a good job of converting on your site, you will then generate more leads and – ultimately– commission revenue.
 
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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staylor-63KgDrKwoY

Securing a Chinese buyer for your property

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Any Australian property built prior to 1980 has an increased chance that some form of asbestos material has been used in its construction. This can be a major concern for any investment property owner, particularly when faced with the potential health risks, and if necessary, the cost of asbestos removal.
If left undamaged asbestos does not usually pose a health risk; however, when asbestos has been disturbed or damaged, the fibres within it become a health concern to anyone exposed.
Due to the serious health risks associated with asbestos, it is now law in most states and territories across Australia that every commercial building constructed prior to December 31, 2003 has an asbestos register and an asbestos management plan. It is the responsibility of the person with control or management of the property to ensure that this register and management plan is current.
An asbestos register lists all identified and assumed asbestos within a building. The asbestos management plan outlines the presence of asbestos as well as the safe work procedures, control measures and emergency procedures for a building containing any identified asbestos. This management plan must be kept up-to-date and reviewed at least once every five years.
In a situation where asbestos becomes hazardous, it may need to be removed. For a property owner, the cost of its removal can be a large burden. However, under Section 40-755 (Environmental Protection Act) of the Income Tax Assessment Act, a property owner is able to claim a deduction for the removal of asbestos from their income producing property if the asbestos poses a health risk.
The Australian Taxation Office allows the property owner to deduct the expenditure incurred for the main purpose of carrying out environmental protection activities. The removal of damaged asbestos from a residential investment property or commercial building is classified as an environmental protection activity as its sole purpose is to prevent contamination or pollution of a property.
When completing any improvement to an income producing property, including asbestos removal, make sure you contact a specialist quantity surveyor so that the remaining depreciable value of items being removed is captured. A post-work depreciation schedule should also be completed as any replaced items and structural improvements are eligible to be claimed and could mean a greater cash return from your investment property.

<hr>
Bradley Beer is the managing director of <a target="_blank" href="https://www.bmtqs.com.au/">BMT Tax Depreciation</a>, a leading quantity surveying firm specialising in the preparation of tax depreciation schedules for property investors. BMT also work with accountants, financial planners, developers and property managers to help to maximise the depreciation deductions available for property investors and commercial property owners.
 
 
 
  
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bbeer-RnXpp32fnV

Property investors can reduce the risks and costs of asbestos removal

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Declining commodity prices and high production costs are hampering investment in the mining industry, with new figures revealing big decreases in planned projects.
The value of projects in the “publicly announced” phase has fallen by between $12 billion and $19 billion since April, according to the <a target="_blank" href="https://www.bree.gov.au/documents/publications/remp/REMP-2013-10.pdf">Bureau of Resources and Energy Economics October update</a>. The number of projects at the “feasibility study” phase fell by 12 to 162, down $24 billion.
The only bright spot in the report was an increase in the number of projects completed. Wayne Calder, the deputy executive director of the Bureau, said this trend meant Australia was “seeing a transition from the investment phase of the resources boom to the production phase”.<img style="font-size: 0.8em;" width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/36312/width668/8wkkgq5g-1385546490.jpg">
Number and nominal value of projects that have been committed to. Bureau of Resources and Energy Economics
Five projects worth $1.7 billion received approval for construction between May and October this year, the lowest number in over a decade. The value of projects under construction or preparing for construction fell to $240 billion, down $23 billion from April.
But the falls aren’t a big surprise, according to Vlado Vivoda, a research fellow at the Griffith Asia Institute, Griffith University. “A lot has already been committed and there is a lot of competition internationally particularly in [liquified natural gas],” he said.
“I think committing any more would be very risky particularly given the costs in Australia of exploring and producing resources, which are higher than in other countries.”
The overall decline in projects was spread unevenly across different resources and across all phases.
Petroleum exploration expenditure, for instance, increased by 47% compared to the previous year, to $4.9 billion, the highest spend on record. But coal exploration declined by 36% to $557 million for the year.<a style="font-size: 0.8em;" href="https://c479107.ssl.cf2.rackcdn.com/files/36311/area14mp/3q3thprt-1385546273.jpg"><img width="470" src="https://c479107.ssl.cf2.rackcdn.com/files/36311/width668/3q3thprt-1385546273.jpg"></a>
<a style="font-size: 0.8em;" href="https://c479107.ssl.cf2.rackcdn.com/files/36311/area14mp/3q3thprt-1385546273.jpg"></a>Locations of projects at the “committed stage”, where construction has started or is about to commence. Bureau of Resources and Energy Economics
Dr Vivoda said cancellations of some large projects were responsible for a large part of the overall decline. He pointed to the <a target="_blank" href="https://www.perthnow.com.au/news/western-australia/woodside-will-not-go-ahead-with-an-lng-processing-plant-at-james-price-point/story-fnhocxo3-1226618536271">announcement that Woodside Petroleum would go back to the drawing board</a> for its $45 billion Browse Point LNG project in WA.
However “mega projects” continued to represent the largest proportion of investment in resource projects, increasing to 82% from 34% five years ago.
Richard Fulford, a senior lecturer at Edith Cowan School of Business, said falling commodity prices meant mining companies did not want to commit further than necessary.
“Commodity prices have either been constant or fallen over the previous five years,” he said. “The price of LNG in US dollars is now only 33% of what it was in June 2008. And thermal coal prices are similar to today to what they were five years ago.”
Dr Fulford blamed increased overseas investment in resources for lower commodity prices. “It’s mainly due to other nations, such as Brazil, Qatar, Indonesia and South Africa, investing heavily in the resource sector,” he said.
An increase in shale gas production in the US was also contributing to lower prices, according to Dr Vivoda.
“What have we’ve seen is essentially a lot of potential LNG coming into the Asian market in particular,” he said. “And we also have a drop in domestic demand for coal in America.”
A focus on productivity could be part of the answer to high costs, according to Jeff Bennett, a professor of environmental management at ANU’s Crawford School of Public Policy. “The labour force in mining is very productive because of course the sector is very capital intensive. One person controls a lot of machinery.”
“But of the pipelines of new projects coming through is thinning out, there will be less opportunity [for workers],” he said. “We saw the other day that Rio Tinto is restricting its <a target="_blank" href="https://www.smh.com.au/business/rio-tinto-shuts-off-gas-plans-for-its-gove-refinery-20131126-2y842">Gove operations</a> with impacts on indigenous employment.”
“Of course this is something we need to be very mindful of, particularly in regional areas where employment is often very hard to find,” Professor Bennett said.
 
<hr>
 
This article was originally published at <a target="_blank" href="https://theconversation.com">The Conversation</a>. Read the <a target="_blank" href="https://theconversation.com/mining-construction-takes-big-hit-as-sector-moves-to-production-20854">original article</a>.
 
 
<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/20854/count.gif" width="1">
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jake-cSmGT7VXVf

Mining boom moves to production stage as new project constructions fall

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The Australian Bureau of Statistics went to a lot of trouble this week to tell us what they think the population will be in 2075. If you’re bored enough to be interested, they think the national population will double by then.
And as I scanned all the breathless coverage from press-release-recycling journalists, I wondered: why did they bother?
What is the point is speculating about the population 62 years from now? Does anyone give a hoot? Many of us won’t even be around to check the accuracy of the forecasts.
What chance that the ABS boffins will be even remotely close to right about this? They’re unable to accurately estimate the population from one year to the next - and have to make adjustments to their guesstimates every five years when the Census reveals the true figures.
Given that a big portion of the projected growth is based on speculation about migrant numbers, do the ABS people really think they know the direction of federal government policy in 2020, or 2030 or 2050?
Do their crystal balls tell them about medical advances 40 years from now, which might impact on life expectancy? Have they considered that social attitudes about starting a family might undergo major shifts between now and 2075.
Western Australia media got quite excited because this pointless piece of daydreaming concluded that Perth will be bigger than Brisbane in 2028. Why would they bother reporting this fantasy? A lot can change in 15 years.
Anyone thinking of basing a business plan or an investment decision on this kind of thought-bubbling should be aware that you don’t get your money back if the forecast is wrong.
Consider this: in the early 1970s, it was projected by federal government bean-counters that the population of Albury-Wodonga would be 300,000 by now. It’s actually 86,000 today. Oops.
The politicians and public servants who made those brave predictions 40 years ago didn’t take into account that a future change of government would result in the scrapping of the social engineering plans of the Whitlam years.
Yet the ABS forecasters today are confident enough in their abilities to state that the Tasmanian population will start declining exactly 34 years from now.
The whole exercise is a waste of time and public money. We know from experience that economists and bureaucrats cannot accurately predict what will happen next year, much less half a century from now.
Population growth is, of course, an issue of consideration for property investors. I do believe, however, that it is over-rated in its importance.
Some “clubs” which claim to do lots of research to serve their investor members have a simplistic follow-the-population-growth philosophy. Buy real estate where high population growth means high demand for dwellings.
The flaw in this flimsy theory is that they have considered demand but forgotten supply.
Experience shows us that high population growth can be the worst thing to happen to a property market. Developers pile in and invariably build too much new supply. We’ve seen that happen repeatedly in Gold Coast City and also recently in the Wyndham City area of Melbourne, which has challenged the Gold Coast as the national population growth leader, and in Gladstone in Queensland, where dwelling demand created by massive gas plants has been suffocated by an excess of new supply.
Around 2005 and 2006, property investors flocked to buy in Mandurah south of Perth because that region was one of the nation’s population growth stars. Most of them would regret their purchases as too much supply and an evaporation of demand led to five to six years of price decline.
Steady growth in resident numbers is a good thing for property markets. Runaway growth can stifle prospects for increases in values.
 
<hr>
 Terry Ryder is the founder of <a style="font-size: 14px;" rel="nofollow" href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a> and you can contact him via <a target="_blank" href="https://mailto:%20ryder@hotspotting.com.au">email</a> or on <a style="font-size: 14px;" target="_blank" href="https://twitter.com/hotspotting">Twitter</a>.
 
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terryryder-YECXbqmri2

Shot in the dark: Predictions of future population numbers are a waste of time and money

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Tender prices and construction industry confidence are on the rise across the eastern seaboard and in Perth, according to national quantity surveying firm WT Partnership. And, it says, most markets are “showing significant improvement in sentiment and activity over the last three months.’’ 
The firm’s quarterly market report says the change in federal government in September appears to have renewed optimism in the construction sector in most states. “Although both federal and state government spending remains tight, private investment in both building and infrastructure looks set to take up capacity in these sectors,” it says. 
WT Partnership expects tendering nationally to remain tight for the next six-12 months as contractors look to fill their order books into 2014. “The construction market appears to have turned with consultants and contractors expecting improved activity in 2014.”
In most states, WT Partnership offices are finding that large residential projects, especially at the lower end in investment grade and first homebuyer products, are boosting the overall market. This renewed activity is not likely to impact upon residential construction costs overall, however, it is expected that in some trades, labour costs will increase as skill shortages kick in.
Subject to the strength or decline in value of the dollar, WT Partnership is expecting to see national average tender price escalation in 2014 trending below 2.0% with an increase to 2.5% for 2015 and 2016.  Individual state predictions vary widely.  
Highlights from the report include:
New South Wales
“Across NSW, the building industry shows signs of improvement, with housing construction increasing for the first time in three years. Sydney CBD rental markets and residential sales volumes have continued to increase in the quarter,” said Nick Deeks, WT Partnership’s national managing director. He says the planned $30 billion of infrastructure to be completed over the next seven years, supported by the state and federal governments, is buoying sentiment and supporting costs.  Tendering remains competitive.  
“We are projecting average cost escalation of 1.25% for 2013, 3.0% for 2014 and 4.0% for 2015 and 2016.”
Queensland
“Tender prices are on the move in south-east Queensland with the recent uplift in residential, commercial and retail construction activity. It is likely that the extremely competitive pricing by major builders over recent years will ease and we will see escalation rising from the current 2.0% to 4%-plus per annum in 2015-16,” said Jason Thornley, Queensland director, WT Partnership. 
Victoria
Confidence in the Victorian construction sector continues to improve as overseas investment in major residential projects continues to boost the market. “The state government’s commitment to a number of major infrastructure projects is improving confidence as engineers and contractors position themselves for demand,” said James Ford, Victorian director, WT Partnership.   
Adelaide
“In the past 24 months Adelaide has had one of the deepest and most rapid falls in construction pricing throughout the country. During last year, tender return prices fell by as much as 20%,” writes Sam Paddick, South Australia director, WT Partnership.  There are some signs that developers are starting to respond to these low levels of pricing, with retail the first to move forward with projects, he said. 
Western Australia
“The continued slowdown in the resources sector in Western Australia, coupled with the recent credit rating downgrade of the state’s finances by Standard and Poor’s, has eroded market confidence,” writes Scott Parrott, WA director, WT Partnership.  ‘’Despite this weakness we still expect strong activity in various sectors over the coming year. Retail investment appears to have gained momentum in WA, with a considerable amount of work being priced or in the pipeline.’’ 
Australian Capital Territory
“In the ACT, following the recent change of government, there is concern over economic conditions and confidence remains suppressed,” writes James Osenton, ACT director, WT Partnership. The contractor environment continues to be lacklustre. 
Tasmania
The Tasmanian economy continues to struggle in the face of dramatic cuts to GST revenue, high unemployment and low population growth, however, recent state and federal government funding announcements have buoyed sentiment in the construction sector.  Tender margins are still extremely tight.
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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Construction industry showing "significant improvement" in sentiment and activity since federal election

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The Australian Bureau of Statistics (ABS) released national population projections earlier this week.  The data looks at the projected growth in the national population from 2012 through to 2101 and the data provides a fascinating insight into the potential future of Australia over the coming years and decades.
The projections look at three different scenarios which can be read about <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/3222.0Main%20Features52012%20(base)%20to%202101?opendocument&amp;tabname=Summary&amp;prodno=3222.0&amp;issue=2012%20(base)%20to%202101&amp;num=&amp;view=" target="_blank">here</a>.  For the purposes of this post we are utilising ‘Series B’ or the medium level projections.  Based on this series, Australia’s population was estimated to be 22,721,995 persons in 2012, by 2101 the population is projected to be 136% higher at 53,564,333 persons.  Under this scenario we would see the national population from 2012 having doubled by 2071.  Keep in mind Australia was first settled by Europeans in 1788 so it took 224 years to get to the 2012 population and it projected to double in just 59 years.
Projections are also provided at a state and capital city level from 2012 through to 2061, at which time the national population is projected to be 41,513,375.
<img width="470" height="234" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/state-by-state.jpg" alt="state by state" class="aligncenter size-full wp-image-2741">
The above table details the estimated population as at June 2012 and the percentage of the national population across each state and compares it to the same projected data for 2061 as well as showing the average annual growth rate over the period.  At a state level, the proportion of the national population is projected to fall in New South Wales, South Australia, Tasmania and Northern Territory.  The proportion is projected to remain static in Victoria and rise across Queensland, Western Australia and the Australian Capital Territory.  Western Australia (2.0%), Queensland (1.5%) and the Australian Capital Territory (1.4%) are projected to record the greatest average annual rate of population growth while Tasmania (0.2%), South Australia (0.7%) and New South Wales (0.9%) are projected to record the lowest growth rate.
Of course these are just population projections and are no way set in stone however, it does seem inevitable that the population of the country will expand substantially (even based on the low series of assumptions) over time.  The big question remains where and how will we house all of these additional citizens? Based on the data provided in the release it seems that a significant majority of the population will continue to live within our capital cities.
<img width="470" height="205" style="margin: 0px auto 15px; padding: 3px; border: 1px solid #e6e6e6; outline-width: 0px; background-color: rgba(255, 255, 255, 0.701961); max-width: 100%; text-align: center; height: auto; display: block; vertical-align: bottom;" src="https://blog.rpdata.com/wp-content/uploads/2013/11/cap-city-by-cap-city-580x253.jpg" alt="cap city by cap city" class="aligncenter size-large wp-image-2742">
The above table details the estimated population as at June 2012 and the percentage of each state’s population across each capital city and compares it to the same projected data for 2061 as well as showing the average annual growth rate over the period.
There are quite a few interesting points to take from these long-term projections.  Firstly, by 2061 Sydney will no longer be the nation’s most populous city and Brisbane will no longer be the nation’s third most populous city.  Melbourne will overtake Sydney as the most populous city in 2053 and Perth will overtake Brisbane as the third most populous city in 2028.
The proportion of Australian’s living within a capital city is already quite high at 66.1% however, this is projected to increase to 73.4% by 2061.  Think about that, out of a projected population of 41.5 million, almost three out of every four Australians will live in a capital city.  If we focus on the four most populous capital cities, 57.3% of Australians currently live in Sydney, Melbourne, Brisbane or Perth.  Based on the population projections, by 2061 65.8% of the total national population will live in Sydney, Melbourne, Brisbane and Perth.
Should this scenario actually come to fruition it will create significant challenges for each of these cities.  Obviously housing is a challenge which immediately comes to mind, how and where these people can be housed and what it would mean for property values.  Over time the capital city areas do expand however, for a city such as Sydney that is surrounded by water and national parks the scope to expand is quite limited. No wonder the inner city areas are undergoing such rapid densification.
Elsewhere you can continue to grow the urban sprawl but there must be a consideration around how people travel around the city and commute to their jobs.  Transport infrastructure is typically already insufficient, without appropriate investment levels how much worse would it be by 2061?  Of course, for some, purchasing a home in a capital city is already out of reach; how do governments ensure that a greater number and proportion of capital city residents doesn’t just lead to further escalation of property values?
Of course these figures are in no way set in stone however, it does appear that the country’s population will continue to grow which will pose myriad challenges.  In my opinion the greatest concern is the projection of a greater centralisation of the population to our capital cities and more pointedly the four most populous cities. 
As mentioned, in each of these cities there are already affordability barriers for certain home buyer cohorts and investment in transport infrastructure has not been sufficient.  In my opinion we should be looking to a decentralisation of the population rather than encouraging more and more people to the capital city.  Not only do regional markets tend to have lower house values, in many instances they offer a superior lifestyle than that which is available within our major capital cities. 
The biggest challenge of course is employment in regional areas however, with the advent of high speed internet and major infrastructure projects such as the National Broadband Network (NBN) we will hopefully see the nature of work change with more telecommuting taking place and less focus on physically being located within an office. 
Alternatively, many businesses do not necessarily need to be located within a major capital city.  Perhaps governments could incentivise major businesses to locate their headquarters or major offices outside of Sydney, Melbourne, Brisbane or Perth.

<hr>
Cameron Kusher is senior research analyst at <a target="_blank" rel="nofollow" href="https://www.myrp.com.au/">RP Data</a>.
 
 
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ckusher-ujnxiKuFQs

How will Australia cope with the housing demands of a doubled population?

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Not much to report on the share markets: the Fed taper keeps getting deferred and US stocks remain in a significant uptrend.
There has been a lot of talk about shorting the market over the last few years due to the world ending - and it still might yet. There are a lot of debt-related issues in the world (both public and private) where the full pain of a long-term resolution has never fully been taken.
But you'd have done very well indeed just to hold the index - the Dow Jones Industrial Average is +27% year on year...and the returns since the middle of 2009 have been staggering.
The share market recovery has been less dramatic in Australia, in part due to a historically strong Aussie dollar which may have made our stock market less appealing to foreign investors.
Nevertheless, excellent returns for holder over the past half decade, particularly for those holding strong dividend-paying stocks.
You could have done well from shorting the market if you timed your entry and exit well, but that's a tough gig to get right for most average traders/investors.  As a general rule, for most people, there is a far greater chance of long-term success through owning quality income-producing assets.
<img style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://hfgapps.hubb.com/asxtools/imageChart.axd?s=xjo&amp;pi=Index&amp;ct=3&amp;tf=M5&amp;ovs=&amp;si=Code%20not%20supplied&amp;tima1=0&amp;tima2=0&amp;bi=2&amp;bima=0&amp;comt=index&amp;ds=xjo&amp;dovs=0&amp;ex=ASX&amp;ex2=ASX&amp;val=1&amp;stmp=20131127092914225" height="275">
Source: ASX
I keep reading articles about how, for various reasons, property in Sydney is not a good investment. Well, you can keep telling yourself that if you like and if it makes you feel better, but unfortunately, that's nowhere near being the case.
SQM produces an excellent <a target="_blank" href="https://www.sqmresearch.com.au/graph_median_weeks.php?region=nsw%3A%3ASydney&amp;type=c&amp;t=1">'vendor sentiment index'</a> based upon asking prices by property type and by capital city. It's one of my favourite reporting tools. Here is their key:
<a style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;" imageanchor="1" href="https://3.bp.blogspot.com/-3OLWG4aNmhc/UpUjPkJIiTI/AAAAAAAAK8g/tkxEZL4vgyM/s1600/key.jpg"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://3.bp.blogspot.com/-3OLWG4aNmhc/UpUjPkJIiTI/AAAAAAAAK8g/tkxEZL4vgyM/s400/key.jpg" height="137" border="0"></a>
And here has what has happened to Sydney dwelling prices since the financial crisis, which is to say, sentiment has been very, very strong across all property types. And sentiment is continuing to get stronger, with SQM forecasting a boom in prices of 15-20% in 2014.
Vendor expectations are getting higher, and as anyone who has actually bought in the established Sydney market of late will know, there are stacks of buyers out there ready to meet them.
<a style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;" imageanchor="1" href="https://4.bp.blogspot.com/-BneE8m7x4Ck/UpUjXszvRrI/AAAAAAAAK8o/M7-pc-LKFC0/s1600/Sydney+SQM.jpg"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://4.bp.blogspot.com/-BneE8m7x4Ck/UpUjXszvRrI/AAAAAAAAK8o/M7-pc-LKFC0/s400/Sydney+SQM.jpg" height="167" border="0"></a>
Source: SQM
If you think back to my posts on population growth, <a target="_blank" href="https://petewargent.blogspot.com.au/2013/11/whats-going-to-happen-to-australias">here</a> and <a target="_blank" href="https://petewargent.blogspot.com.au/2013/11/more-on-population-growth">here</a>, combined with an inherent under-supply in the harbour city and low interest rates, it's not hard to see why.
Sure, population growth in itself does not cause property prices to move higher, but in the supply-constrained desirable suburbs that is precisely the impact it is having.
Wondering whether Adelaide will start to pick up a bit now? You'd think it would have to sooner or later after a very uninspiring and under-performing five years, but at this stage, according to SQM's vendor sentiment index...no dice.
<a style="color: #253fff; margin-left: 1em; margin-right: 1em;" imageanchor="1" href="https://3.bp.blogspot.com/-AGHPjKupxTI/UpUoKQ5zvcI/AAAAAAAAK84/swYEKC12f50/s1600/adelaide+sqm.jpg"><img style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px;" width="400" src="https://3.bp.blogspot.com/-AGHPjKupxTI/UpUoKQ5zvcI/AAAAAAAAK84/swYEKC12f50/s400/adelaide+sqm.jpg" height="163" border="0"></a>
Source: SQM

<hr>
Pete Wargent is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
 
 
 
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pwargent-M4siyDbqQY

The good (and the not-so-good) investments since the GFC

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The Commonwealth Property Group has terminated its exclusive takeover talks with the Dexus consortium, in the wake of the $3 billion GPT rival bid last week.  
The decision to end the "process agreement" was specifically due to Dexus and its partner the Canadian Pension Fund not matching the competing proposal from GPT within the specified period of time spelt out in the agreement. The decision allows GPT to start talks with the Commonwealth Property Fund (CPA). 
However, CPA management did say that the Dexus consortium "may undertake further due diligence on CPA, on a non-exclusive basis until 9 December."   
Last week, Credit Suisse analyst said it that it may be difficult for the Dexus consortium to match the competing bid offer.
GPT is offering $O.75325 in cash and 0.141 GPT security for every CPA unit. Based on GPT's closing price on 18 November, the offer values CPA units at $1.272.
The Dexus and Canadian Pension Fund offer is valued at $1.219 per unit. 
One reason Credit Suisse gave was that "if DXS were to match GPT’s offer by increasing the cash offer by 2.7¢ to 73.7¢, implying a total bid price of $1.24, this would see EPS accretion (FY15) reduce to ~1.3–1.8% as compared to the guidance of 2–2.5%". 
On that basis, net tangible asset dilution would increase from 1.9% to 2.7%, they said.  "As a result, we see limited scope for DXS-CPPIB to justify any further premium".
However, with Dexus already holding a key blocking stake of 14.9% in CPA, a likely end scenario is a break up of CPA's $3.8 billion property portfolio. Dexus has already said it won't be supporting the rival offer and GPT needs to reach a compulsory acquisition target of 90% before it can offload any of the CPA assets.
<a href="mailto:news@propertyobserver.com.au" target="_blank">news@propertyobserver.com.au</a>     
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kjiminez-eaYKfU7qd2

CPA terminates exclusive takeover talks with Dexus consortium

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A pronounced shortage of stock and heightened competition for property assets is forcing offshore investors into capital partnerships with local players to secure a foothold in the Australian property market.
The findings were revealed in new research from Cushman &amp; Wakefield which showed that since the end of the GFC, the total value of transactions recorded in the Sydney, Melbourne and Brisbane office markets had topped $10 billion in the 12 months to June 2013.
But despite that significant spike, the report pointed out that there had only been a limited number of direct property purchases.
Cushman &amp; Wakefield associate director of research and consultancy Peter Ainge attributed that shift to the increasing practice of capital partnerships.
“The proportion of capital partnerships to total sales has grown rapidly since the end of the GFC, with 46.4% of transaction volumes recorded in the Australian retail market and the eastern seaboard office markets in 2012 involving a capital partnership,” he said.
This year, the proportion of capital partnerships to total sales slipped back to just below 40%.
Cushman &amp; Wakefield estimates the weight of money from offshore buyers aimed at Australian commercial assets to be US$16.5 billion (AU$18.5 billion) as at September. Combined with the shortage of prime available stock, Ainge said “it is clear that offshore investors need to get creative to penetrate the domestic market.”
Sydney was where capital partnerships had been the most prominent, the report said. One notable partnership was the $1.2 billion privatisation of the Charter Hall Office REIT, which saw the grouping of the Government of Singapore Investment Corporation (GIC), PSP Investments from Canada (PSPIB) and Charter Hall Group.
Stockland was another prominent name recognising this trend, it said, having made available a stake in its Piccadilly Centre in Sydney CBD, which should appeal to offshore money.
“As well as the shortage of prime stock making capital partnership a necessity for offshore investors intent on investing in Australia, the relatively higher barriers to investment when acquiring prime property investments is another important driver of this model,” said Mr Ainge.
The report cited a number of pros and cons in capital partnerships.
Among the advantages identified by Ainge were access to prime assets that would otherwise be unavailable, lower entrance costs, access to existing management expertise, reduced single building exposure and increased portfolio diversification. On the flipside, he said adopting a capital partnering relationship still required risk mitigation when it came to the potential for difficulties in exit strategy, pricing risk and the investor having limited control of the asset.
With investment appetite for core Australian investments continuing to grow, and alternative investment opportunities shrinking rapidly, “it is expected that the uptake of the capital partnership model will continue to grow in popularity,” it concluded.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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Offshore investors forced into local capital partnerships by lack of stock, heightened competition: Cushman & Wakefield

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Tasmania recorded the nation's highest level of mortgage arrears for a second consecutive quarter, according to the latest report by Standard &amp; Poor's Ratings Services.
Six of the 10 worst-performing postcodes were in New South Wales, the standard mix of coastal areas and suburbs on the outskirts of Sydney.
Overall Australia's level of arrears for subprime loans in the June quarter was the lowest in 13 years, but loans greater than 30 days in arrears totalled 1.68% in Tasmania.
Next was New South Wales, at 1.48%, and Queensland, at 1.40%, according to the report, RMBS Performance Watch: Australia which compiles data from residential mortgage-backed securities which are a means for lenders to raise funds by selling bundles of loans to investors. It involves a high proportion of non-bank originators and financial institutions and subprime and low-doc lenders.
But there's also now the latest RP Data analysis that details the weakness of the Tasmanian property market saying Hobart has experienced the weakest performing market over the past year of all capital cities with home values falling by 0.7%. The median house sale sits at $325,000 and units at $236,000.
"The Hobart market weakness has been consistent over recent years with it also the weakest market over the past five years," RP Data's Tim Lawless noted.
"Unfortunately most other indicators remain weaker now than they were a year ago," he added.
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<div class="column">
Hobart Property Values
<ul>
<li>
? 6.0% quarter
</li>
<li>
? 0.7% year
</li>
<li>
? 1.8%  per annum over last five years
</li>
<li>
? 2.9% per annum over past 10 years
</li>
<li>
? 7.3% per annum over past 15 years
</li>
<li>
? 15.2% from peak
</li>
</ul>
</div>
</div>
</div>
<a target="_blank" href="https://www.propertyobserver.com.au/news/tasmania-s-unemployment-rate-holds-back-property-investment-but-watch-growing-overseas-student-numbers/2013110666223">I've recently written on Tasmania's high overseas student numbers</a>, but tourism activity on the island is expected to drive the brightest prospects for Tasmania's economic growth.
Earlier this month the Tasmanian motoring group RACT added the 60-room Freycinet Lodge, 60-room Cradle Mountain Chateau, and Strahan Village to its property portfolio.
It already includes the Grand Mercure Hobart Central Apartments, which it bought in partnership with the RACV for $25 million in June.
The motoring group will also take ownership of Gordon River Cruises.
The Farrell family’s Federal Group will maintain a small investment in the tourism assets with the deal done through Knight Frank Tasmania managing director Scott Newton. 
 The four assets are currently profitable but were operating at below preferred occupancy levels.
The RACT hopes its member base and seven million mainland affiliate automobile members will be willing tourists.
The deal comes as signs of an improvement emerge in Tasmanian tourism.
For the year ending June 2013, Tourism Tasmania reported that visitor numbers were up 12% to 961,600.
The total nights spent in Tasmanian hotels rose 7% with visitors spending $1.5 billion over the year which was 10% more than in 2012, the Tasmanian Minister for Tourism Scott Bacon said.
Federal still owns Hobart's Wrest Point casino and Launceston's Country Club casino along with the luxury resort Saffire on the state's east coast and the Henry Jones Art Hotel in Hobart.
The sale has likely freed up capital for Federal to develop a luxury hotel at Port Arthur.
The 4.5 Star Freycinet Lodge (pictured below) in coastal bushland on the shores of Great Oyster Bay. It includes 60 one and two-roomed cabins, restaurants and conference facilities. The property is leasehold with 41 years remaining, issued by Parks and Wildlife Service.
<img alt="freycinet-nov-27-one" height="317" width="470" src="/images/stories/2013/11/27/freycinet-nov-27-one.jpg">
Photo courtesy of Freycinet Lodge
The 4 Star Cradle Mountain Chateau includes 60 standard twin rooms, king spa rooms and deluxe split level suites, restaurants, bars and conference facilities.
Strahan Village, located on the bank of Macquarie Harbour on Tasmania's west coast. It features include two main areas of accommodation, four food and beverage areas including Hamers Hotel, View 42 Restaurant &amp; Lounge, Fish Café and Banjo’s Bakery and various tourism activities.
Gordon River Cruises is located on the Gordon River. 
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a>
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