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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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A return to growth in the house building and apartment building sub-sectors have boosted national construction to the point where it’s recording its strongest reading in three and a half years in September, according to the Australian Performance of Construction Index.
While this positive result was seen, with a 3.9 point lift, the index record stayed just under the 50 “break even” point at 47.6.
Growth in new orders was listed as the reason for expansion in activity for the first time since April 2010.
Australian Industry Group chief economist, Julie Toth, said that the construction sector is now closer to stabilisation more so than at any time up until 2010.
“The housing and apartment sectors are driving the industry’s improved performance on the back of lower interest rates and a lift in buyer sentiment. Meanwhile, declines in both commercial and engineering construction moderated in the month,” said Toth.
“Despite these encouraging trends, it is clear that the industry continues to face a tough operating environment with impediments such as tight credit conditions and a lack of public sector building activity continuing to weigh on overall activity. Nevertheless, with new orders increasing for the first time since May 2010, there are grounds for cautious optimism that the current improving trend can be sustained in coming months,” she said.
Propell National Valuers economist, Linda Phillips, said that it's worthwhile remembering that there's still strictly a decline - it's just a slower decline than has been seen in recent times.
"What is actually happening is that the construction sector continued to decline in September, but is declining at its slowest pace in 3 1/2 years and is expected to level off in the coming months, pointing to a possible expansion in the new year," said Phillips.
"A reading of 50 is a breakeven point, indicating that activity is neither increasing nor declining. The index has climbed to 47.6 in September, which means that construction activity is still declining, but by not as much as previously. However, with improvements in housing construction demand, it is likely that the index will move towards breakeven in coming months," she said.
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jduke-EHk3XBmHkn

Construction at strongest in years, but still declining

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Realestate.com.au has revealed the suburbs most-searched for by property buyers in Australia.
The South Australian suburb of Parkside tops the list, followed by Freshwater in NSW and Belair in South Australia.
The list is published every quarter.
Belair, Ashwood, Blackburn South and Stanmore are all newcomers to the list, while Freshwater, Fullarton and Newmarket regained popularity with buyers after dropping off last quarter.
The top 10 suburbs are:
1. <a target="_blank" href="/news">Parkside </a>(SA)
2. <a target="_blank" href="/news">Freshwater </a>(NSW)
3. <a target="_parent" href="/news">Belair</a> (SA)
4. <a target="_blank" href="/news">Newmarket </a>(QLD)
5. <a target="_blank" href="/news">Surrey Hills</a> (VIC)
6. <a target="_blank" href="/news">Ashwood</a> (VIC)
7. <a target="_blank" href="/news">Blackburn South</a> (VIC)
8. <a target="_blank" href="/news">Fitzroy North </a>(VIC)
9. <a target="_blank" href="/news">Stanmore </a>(NSW)
10. <a target="_parent" href="/news">Fullarton </a>(SA)
Parkside also took out top spot in the website's <a target="_blank" href="/news">July report</a>. 
At the same time last year the top 10 suburbs were:
1. <a href="/news">Parkside</a> (SA)
2. <a target="_blank" href="/news">Norwood </a>(SA)
3. <a target="_blank" href="/news">Walkerville </a>(SA)
4. <a target="_blank" href="/news">Hazelwood Park</a> (SA)
5. <a target="_blank" href="/news">Mont Albert</a> (VIC)
6. <a target="_blank" href="/news">Clifton Hill</a> (VIC)
7. <a target="_blank" href="/news">Park Orchards</a> (VIC)
8. <a target="_blank" href="/news">Unley </a>(SA)
9. <a target="_blank" href="/news">North Rocks</a> (NSW)
10. <a target="_blank" href="/news">Carlton North</a> (VIC)
 
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awalsh-7Ub9EypybQ

Top 10 most searched for suburbs in Australia

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We've been reading about it for the last few weeks, and some of us have been talking about it for years: The Property Bubble.
We asked some of the country's top economists and commentators in the property space to share their thoughts exclusively with Property Observer.
They were each asked:
Do you think there is a property bubble in Australia? Why/Why not?
Here, we share their responses to this question.
We also invite other spokespeople, and readers, to have their say.
Yesterday we polled our readers to find out their views on the question; the results are below. It's fairly clear most of you believe there is a housing bubble or one coming soon.
<img src="/images/stories/2013/10/04/poll-results-oct-4.jpg" width="470" height="258" alt="poll-results-oct-4">
Email <a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a> if you have an opinion that you think hasn't yet been shared.
Here are our experts' opinions.
 
Shane Oliver – Head of investment strategy and chief economist, AMP Capital<img src="/images/stories/2013/10/04/shane-oliver-profile.jpg" width="125" height="150" alt="shane-oliver-profile" style="float: right;">
NO BUBBLE YET, BUT RISKS HAVE INCREASED
What a difference a year makes! A year ago the big concern was that interest rate cuts won't work to boost the economy with some predicting a house price crash. Now it’s the other extreme with worries of a bubble. To be sure the risks of the housing market becoming a bubble have increased: mortgage rates are around record lows, house prices are picking up and buyer confidence has returned.  
However, just because house prices are rising at above average rates doesn't mean it’s a bubble any more than the falling prices over the 2010 to 2012 period means a property crash. Some aspects of a bubble certainly exist, in particular Australian house price to rent and house price to income ratios are well above long term average and well above global average levels. But this has been the case for more than a decade.
Other aspects that would normally be expected in a bubble are not yet present: house prices have only just risen above 2010 levels and have only been rising for a year, whereas housing bubbles normally see years of gains; housing credit growth is still around record lows at 4.7% year on year whereas during the bubble years last decade it was in the double digits; and I don't see the sort of speculative fever that normally goes with bubbles although we may be starting to get there given the media coverage.  
Finally, rising unemployment will likely be a constraint.  
So while the risks of the housing market becoming a bubble have increased I doubt we are there yet - one year of average home price gains of 5.5% certainly does not qualify - and there is a good chance we will avoid one in the year or so ahead. To be honest I rather hope we do, because bubbles bring the risk of official measures to pop them and by definition run the risk of ending with a crash.  
 
Steve Keen – Professor of economics and finance, University of Western Sydney<img src="/images/stories/2013/10/04/Steve-keen-profile.jpg" width="125" height="150" alt="Steve-keen-profile" style="float: right;">
BUBBLE HAS BEEN HERE FOR A WHILE
 
Yes there's a bubble--or rather that the bubble that began to burst back in 2012 has been given a new lease of life by falling mortgage rates, and the rise of two new classes of buyers, both of which should have been limited by public policy but have instead been promoted by it: wealthy Chinese buyers hedging their political and environmental bets by buying property on Australia, and self-managed superannuation funds who are now allowed to call a levered bet on property an investment.  
No sane country allows 50% of its new properties to be bought by non-residents: the rational limit applied by many European countries is 10%. Our policy is doubly insane given our geographic location and size, since there are certainly more Chinese millionaires than there are Australians.  
And superannuation funds should be allowed to buy properties for the income stream, but with no leverage. The leverage and seeking capital gain turns this from an investment to a speculation, and the leverage itself drives up the prices and causes the desired capital gain.  
These two additional forces drive out first home buyers, making for disastrous social policy. But it seems appeasing baby boomers with ever rising house prices matters more to both parties than affordable housing.  
The flies in the ointment for this bubble are (1) that Australians haven't deleveraged after the GFC, as Americans did. US mortgage debt has fallen from 86% of GDP to 68%, we have flatlined at about 88%. So any interest rate rise--and I think the RBA will be forced into them soon given this bubble (that they could have prevented with LVR controls as in New Zealand)--will crucify demand from upgrades and even investors; and (2) that the buyers are far more investors now than upgraders. They are utterly dependent on Chinese and superannuation demand to make a profit, because they can't all get rich selling second hand houses to each other.  
So I stick with seeing this as a suckers rally, but one aided and abetted by a compromised political class.  
 
<hr class="system-pagebreak">
Tim Lawless - National research director, RP Data
<img src="/images/stories/2013/10/04/TimLawless-profile.jpg" width="125" height="150" alt="TimLawless-profile" style="float: right;">
NO BUBBLE YET, BUT WE NEED TO TALK ABOUT IT
 
The first thing to point out is no I don't think there is a property bubble but the debate it worth having. We’ve seen values up by 3.7% over the quarter and since it bottomed out last year, it's great to see a growth cycle and at the beginning of a cycle you see strong rates of growth. But these rates of growth are not as strong as we have seen in previous cycle starts. In saying that, I think the debate is more focused on two key markets - Sydney and Melbourne, which is dragging the capital cities up.  
Our index is a weighted index and so these cities have heavier weighting as they have more stock. Brisbane was actually down in September and over the past decade; values have only risen in Brisbane by 4% per annum.  
Look back to 2007 and Brisbane arguably overshot the mark, which is why it's largely subdued now as it's feeling the pain from a strong run of growth in 2007.
As capital gains outpace rental growth the impact on yields naturally dampens investor exuberance.  
Melbourne yields on a house are 3.5%. As yields become eroded and there’s more speculation about these markets overheating, we’ll see investors move to other markets. Brisbane is the obvious candidate as dwelling values are substantially lower, yields are much higher and the fundamentals are relatively strong. I think Brisbane will be a natural flow-on point.
Perth and Darwin have been standouts until six months ago, and now they’re hitting the breaks. It’s explainable by the slowdown of the mining sector and some of the slowdowns and cancellations of projects we’re seeing. It stands to reason that as labour markets slow so does the housing market, as the two are intertwined.  
Generally when you talk about a bubble you're talking about a strong unsustainable ramp up that will be followed by a correction. Over the past quarter the growth rate is high and warrants this sort of discussion. They should be watched with scrutiny if we see the growth continue into 2014, but I don’t think we’re in a bubble yet. However, this conversation is healthy to have.  
Even though the Reserve Bank and APRA haven't been overt in their actions I think it's guaranteed their over the table discussions would be deliberate with the financial sector to ensure lending standards are maintained.  
 
Saul Eslake - Chief economist Australia and New Zealand, Bank of America Merrill Lynch<img src="/images/stories/2013/10/04/saul-eslake-profile-2.jpg" width="125" height="150" alt="saul-eslake-profile-2" style="float: right;">
NO BUBBLE YET, PUT POTENTIAL RISKS
 
At this stage I don't think it is accurate to characterise Australia's property market as a 'bubble'. It's certainly true that Australian property prices have begun to rise again, spurred by very low interest rates and by the interaction between strong growth in 'underlying' demand and unresponsive supply. And it's also true that the current rise is occurring from a very high base, both by historical and by international standards. So far, however, the current upswing in property prices doesn't seem to be being driven by rapid growth in debt, which is another key hallmark of a 'bubble'.
After rising very rapidly between 1992 and 2005, household debt has been fairly stable as a proportion of household disposable income since 2006. And over the past year, during which property prices have risen by an average of 5.3%, the total stock of housing debt outstanding has risen by only 4.7%, close to historical lows.
However, if interest rates remain at very low levels for an extended period (or fall further), it is quite conceivable that the Australian property market could take on 'bubble'-like characteristics, with people borrowing in order to buy property purely in expectation of reaping capital gains.  
One worrying feature of the current upturn in the property market is that it is being driven to a greater than usual extent by investors, who, to a much greater extent than owner-occupiers, typically buy established properties rather than new ones. If that remains the case as the upturn continues, it will do more to boost prices and less to induce new construction than either the Reserve Bank wants, or the country needs - increasing the chance of an abrupt correction when interest rates start rising again - which they will do sooner rather than later if property prices and mortgage debt start to rise at rapid rates.
Ideally, the federal government would reform the taxation system so as to reduce the extent to which it inflates speculative demand for housing, while state and local governments would reform their tax systems and their planning policies so as to make it easier to boost the supply of housing. But history argues against expecting much on either score.  
 
<hr class="system-pagebreak">
Louis Christopher – Owner, SQM Research<img src="/images/stories/2013/10/04/Louis-Christopher-profile.jpg" width="125" height="150" alt="Louis-Christopher-profile" style="float: right;">
NO BUBBLE, RECOVERY SET TO ACCELERATE
Typically, a bubble is characterised by explosive rises in prices (typically double digit annualised price rises) which occurs across the most of the sector or economy. At this point in time national house prices are only recording modest to moderate capital growth rates (at about 6% annualised) with one city (Canberra) actually recording price falls. There are only two cities recording above average price growth, that being Sydney and Perth.
To call it a national housing bubble, we would need to at least see Melbourne and Brisbane also record double digit capital growth. That just simply isn’t happening right now and is not likely to happen given those market are currently well supplied.  
However, we do envision a situation that dwelling price growth rates will accelerate to a point later next year, where it may become a little uncomfortable for the RBA and, at that point, they may wish to tap on the brakes and lift interest rates to slow the pace down a little. That maybe a difficult proposition for the bank, especially if the economy itself is recording below average GDP growth rates and especially if most of the national lift in dwelling prices is really just coming from a heated Sydney market.  But even if that is the case, it still may not be classified as a 'bubble'. But rather a very manageable situation that can be nipped with just a tap of the interest rate brakes.  
So, is the Sydney market in a bubble? Sydney itself was actually overdue for a large lift in prices. The local market has largely underperformed compared to other capital cities over the past 10 years in what was really a consolidation period from a rather frothy market back in 2003; a point in time when the Sydney market was indeed extremely overvalued.
In terms of the valuation metrics we consider, even with the price rises we have had to date and SQM’s rather bullish forecast for next year taken into account, Sydney would still not be at those hefty highs recorded ten years ago. There are also some firm fundamentals driving the market; namely being a genuine shortage of accommodation, an improving state economy which has kept unemployment below the national average; a strong population growth rate. That is not to say the market won’t get into overvalued territory in this cycle; it will. But just not right now.  
So, in our firm conviction there is no property bubble at present in the Australian housing market. End of story. Before blindly following those who make such warnings, perhaps do some research on their previous calls. I can tell you now; it’s not a pretty picture.  
If there was a current property bubble right now, you would hear it from us first. Our track record speaks for itself. We are on public record as forecasting the downturn of 2010 to 2012. And we are on public record for predicting the recovery of 2013. And now in recent weeks have been on public record as being picking that this recovery will accelerate into 2014. We are the only analysts out there with this type of record and it is done without a conflict of interest or deliberate hysteria.  
 
Andrew Wilson – Senior economist, Australian Property Monitors<img src="/images/stories/2013/10/04/AndrewWilson-profile.jpg" width="125" height="150" alt="AndrewWilson-profile" style="float: right;">
NO BUBBLE AND NO CRAZY BOOM
 
So here we go again. The housing market bubble bandwagon is up and running – but this time it’s a crazy boom not a scary bust that is being predicted by some for the Sydney housing market next year.  
The reality more likely is that the Sydney housing market is about as close to a boom next year as it was to the bust that was widely predicted for last year.  
Low interest rates, rising confidence and a surge in investor activity are the current drivers of the Sydney housing market together with a solid performance by the local economy.
But the underlying drivers remain problematic for sustained high levels of house price growth next year. Sydney’s unemployment rate is now rising towards 6% and predicted to continue to rise. Wages and profit growth remain subdued in a low inflation economy with a stagnant stockmarket continuing to constrain growth in the prestige market. The prospect of sharply falling rental yields will also prove a disincentive for new investors.  
Prices growth in Sydney is likely to peak over the next six months with continued solid growth dependant on a sustained revival in the economy and unemployment falling to or below 5%.  
For the record, Sydney’s highest annual house price growth over the past 20 years was in 2002 at 22.2%. Next best was 2001 at 17.4%.  
If, as has been heroically suggested by some, Sydney house prices were to rise by 20% next year that would bring the median price to nearly $900,000. Enough said.  
 
<hr class="system-pagebreak">
Harley Dale - Chief economist, Housing Industry Association<img src="/images/stories/2013/10/04/harley-dale-profile.jpg" width="125" height="150" alt="harley-dale-profile" style="float: right;">
NO HOUSING BUBBLE, WE'RE IN A RECOVERY
 
Australia does not have a housing bubble, but rather a recovery in some dwelling price markets. Nationally, dwelling prices are no higher in real terms than back in late 2007. Dwelling prices are still declining in three capital city markets and in non-metro Australia, and are barely growing faster than the rate of inflation in a further two cities.
Not quite ‘speculative fervour’! Australia does not have high levels of new home building – we are constructing fewer homes than a decade ago. We do not have an extremely high level of transactions occurring as investment properties change hands in rapid fashion – transactions volumes are recovering but are still below historical averages.  
Median dwelling prices are growing strongly in Sydney, Perth, and to a lesser extent Melbourne. Sydney is receiving much attention, but prices there were the worst performing of any capital city market over a decade. A ‘first stage’ recovery in new home construction is underway in both Sydney and Perth and it is crucial that further growth occurs in 2014 and 2015.
A sustainable lift in the supply of new dwellings and how that can be assured is where the focus needs to reside, not a preoccupation with a fictitious bubble. The latter focus harms the prospects of a sustainable, broad-based new home building recovery emerging at the very time when that is one of the key outcomes the Australian economy requires.  
 
Whose opinion would you like to have added to the list? 
Email <a href="mailto:jduke@propertyobserver.com.au">jduke@propertyobserver.com.au</a> and we’ll consider getting their viewpoint.
 
 
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Is there a property bubble? The experts have their say

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HE SAID: SADLY, NO
<img height="225" width="150" src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" style="float: right;">
Although I am a devotee of the famous opera diva, I don’t think her name carries much weight anymore.
Indeed, I notice the current listing of a Warrawee residence, Kirkoswald, makes no mention of her name in its marketing campaign. Unlike previous advertising campaigns when her name was considered noteworthy. It last sold for $4.9 million in 2005.
During the height of her fame early last century, Dame Nellie Melba performed in a reception room at Kirkoswald, at 22 Warrawee Avenue (pictured below), the 1906 Victorian Free Classical style mansion designed by architect J. Burcham Clamp for Irish-born John Meloy, a master carrier from Glebe.
{yoogallery src=[images/stories/2013/10/11/war]}
'Kirkoswald' 22 Warrawee Avenue, Warrawee
These days, property listings are more likely to mention Lady Gaga’s attendance at a property - to wit, Moebius House, the Dover Heights residence as yet unsold.
Of course, Dame Nellie’s enduring association is the famous Peach Melba dessert. I recall seeing the dessert featured on an original 1890s menu displayed in a museum at Villeneuve-Loubet, a village in the South of France. This museum celebrates Auguste Escoffier, the king of celebrity chefs who created many famous dishes.
In 1893, while working as a chef at the Savoy in London, Escoffier invented Pêche Melba in honour of the Australian opera singer, and four years later he devised Melba toast. Nellie often ate at Escoffier’s restaurants while performing in Covent Garden during the late 1890s and early 1900s.
 
<img height="225" width="150" src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" style="float: left;">SHE SAID: YES, OF COURSE
Dame Nellie Melba is more current than ever. Only this week her name was splashed across London following her appearance (played by Dame Kiri Te Kanawa) in the latest episode of Downton Abbey’s season four. Last month about 10.5 million people tuned in to watch the season four launch of the popular television series.
Rupert Christiansen, the opera critic of The Telegraph in Britain, noted Melba’s enduring notoriety this week. But his column gave the writers of the television series a serve by noting: “Downton Abbey got Nellie Melba all wrong. Confined to her room with a cup of tea and treated by Carson as though she was a visiting tradesperson during her visit to Downton Abbey? The real Dame Nellie Melba wouldn’t have tolerated such treatment for a nanosecond. In 1922, she had enjoyed 30 years of being received as a social equal by crowned heads and aristocrats throughout Europe, and she would only have sung at a private party as a personal favour to her host. Melba was nobody’s hireling: she called all the shots, and the Granthams and their staff would have quaked at her approach.”
With the number of expats living in London, who could be watching Downton Abbey while searching on the internet for a mansion back home in Australia, it may be a good idea for <a target="_blank" href="https://www.mcconnellbourn.com.au/buying/NSW/North-Shore-Upper/WARRAWEE/House/1P2507">McConnell Bourn </a>agent Carole MacRae to amend her advertisements for Kiroswold at Warrawee. Certainly worth adding Dame Nellie Melba’s association to the marketing of the mansion which sits on 2,640 square metres with verdant gardens, a tennis court and swimming pool.
Of course, Kirkoswald is not the only mansion connected with Melba. The immensely wealthy operatic superstar’s longest association with a Sydney property is Rose Bay’s Fernleigh Castle.
Melba rented Fernleigh Castle initially at 30 guineas a week in 1911, and seemingly stayed for two years. But the prima donna’s tenancy, like her life, was not without incident. An uproar ensued after Melba had trees chopped down to improve her harbour view from the circa 1892 sandstone mansion.
During the First World War, Melba worked tirelessly on singing tours of Australia to raise money for war charities - about £100,000, a vast sum at the time. In recognition she was made a Dame Commander of the Order of the British Empire (DBE) in March 1918 “for services in organising patriotic work”.
Other homes Melba is known to have sung at include:
·     Katoota in Avenue Road, Hunters Hill, Sydney
·     Moombara, a former vice-regal residence at Port Hacking, Sydney
·     Amanbah House at Maitland (Hunter Valley NSW)
·     Coorah at Wentworth Falls (Blue Mountains NSW)
·     Como in South Yarra, Melbourne
In her twilight years, <a target="_blank" href="https://warrenfahey.com/fc_nsw-manar5">Dame Nellie had a Sydney bolthole at Manar, a gracious apartment building at 42 Macleay Street, Potts Point.</a>
Coombe Cottage at Coldstream, a small town situated at the gateway to the beautiful Yarra Valley and about 50 kilometres east of Melbourne, was her home. The property is now owned by her great-grandsons, Lord Samuel Vestey and the Hon. Mark Vestey.
Born Helen 'Nellie' Porter Mitchell on 19th May 1861, Melba was the first Australian to achieve international recognition as a classical musician. In later life she set up a music school at Richmond which she merged into the Melbourne Conservatorium.
 
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Is there still cache in selling a home where Dame Nellie Melba once sang? He Said/She Said

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Another of the Richmond cottages from the 2011 series of the Channel 9 renovation show, The Block has come onto the market. <a target="_blank" href="https://www.realestateview.com.au/Real-Estate/43-cameron-street-richmond/Property-Details-buy-residential-6145815">It's the renovated three bedroom terrace of Rod and Tania</a>.
Our contrarian property commentary couple, Jonathan Chancellor and Margie Blok look at the merits of buying 43 Cameron Street, Banstead Cottage.
{yoogallery src=[images/stories/2013/10/04/rich]}
HE SAID: CAUTION<img height="225" width="150" src="/images/stories/2013/09/06/jc-silhouette-5.jpg" alt="jc-silhouette-5" style="float: right;">
It will be interesting to see how this listing performs as while there's been nice recent strong price growth just three along, this one looks a bit trickier to gauge.  
It was only a few weeks ago the dearest home in the 2011 Block Richmond renovation series resold for the first time. 
It was the three bedroom 37 Cameron Street Richmond cottage renovated by Josh and Jenna who had a $950,000 Block 2011 auction reserve.
Their Edwardian cottage sold under the television bright lights for $1 million. Its recent auction price guidance was $1 million plus. And it fetched $1,147,500.
Rod and Tania's auction reserve was $850,000, and while it didn't sell on the day, the couple's handiwork secured an ensuing $922,000 sale at an impromptu Jellis Craig onsite auction attended by six parties.
Just one of the interested parties had been at the auction, with the other five having only seen the property passed in on television. <a target="_blank" href="https://www.propertyobserver.com.au/victoria/take-two-auction-frenzy-as-only-one-offering-left-on-the-block/2011082351266">I called it an auction frenzy</a>.
It's now been listed by a Melbourne investment couple.
The current marketing for 43 Cameron Street has the price estimate as $900,000 plus. 
RP Data suggests the median Richmond house price sits at $773,000 which is down on the $800,000 median around the time of the 2011 auction, so best any interested parties don't get carried away in a mix of Block afterglow and Melbourne's current price spike. 
<img height="225" width="150" src="/images/stories/2013/09/06/mb-silhouette-4.jpg" alt="mb-silhouette-4" style="float: left;">SHE SAID: CAUTION
Ignore all the fun the hit television series generated and just figure out its fundamentals.
Especially if you are an investor because the rental returns have been diminishing over the past two years.
Indeed the neighbouring cottage recently became available for rent again and the investor was set to get even less return on the initial $860,000 outlay. It was Katrina and Amie's house at 41 Cameron Street which was listed at $950 a week shortly after the big 2011 auction and then next became available for lease at $895 a week. 
The indicative gross rental yield for <a target="_blank" href="/news" title="Richmond">Richmond</a> houses is an ordinary 3.8%, according to RP Data.
Another Block cottage was offered - at 39 Cameron Street - with a weekly $1,250 asking rent after the 2011 auction and then a year later at $1,000 a week.
Ofcourse there are good tax depreciation prospects, but be sure to get a building inspection report before its October 26 auction.
And don't forget to check out the impact of the Coles Property Group's 11 storey redevelopment of Richmond Plaza - it includes the carpark just across the road from the front facade of Banstead Cottage.
Nothing much in the metropolitan press since it was first mooted after the television series in late 2011, but I see the VCAT approval came through not so long ago for the 12,840 square metre site.  
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The latest Block Richmond cottage offering: He Said/She Said

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As the front covers of property investment magazines attest, many younger investors have done well by choosing to invest in the property market.
McGrath Real Estate boss John McGrath advises that provided you can afford it, you should get involved in property at a young age.
According to McGrath, over the long term property is a very “safe and stable asset class that will become your most valuable financial investment for the future.”
While it is the most expensive asset class, he says there are capital gains exemption on family homes and negative gearing on investments that can lighten the load.
Other reasons to consider investing now include very low interest rates and improved housing affordability.
There is also the opportunity to be a renter-investor– rent in a desirable area close to the city, shops and nightlife and buy a more affordable investment property further out of the city.
Young investors could also consider buying with friends or family.
<hr>
This article is fromProperty Observer's free ebook <a href="/guides/free-ebook-top-10-property-investment-tips">Top 10 Property Investment Tips</a>
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You are never too young to start investing

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Are great property investors born or made?  
If you’re like me you were told from very young age that if you want to succeed at something – be it sport, school or a musical instrument – that you must put in time, hard work and importantly, practice.  
Most of us learnt our times tables by repeating them over and over – practicing multiplication was the most effective means of learning this skill.  
Well the same applies to property investment. Successful property investors are not born with a “how to” manual and they certainly don’t rely on luck.  
Fact is one of the big differences between the athletes, musicians and business people who excel in their chosen field, compared to the “average Joe” is in the years of practice they dedicate to honing their craft.  
And this also applies to property investors.  
Successful property investors understand that to be good at what they do – creating wealth with real estate – they must learn the rules, gain experience by “doing it” and then improve by refining how they do it.  
Training for investment success
In his book Outlier, Malcolm Gladwell noted that in most occupations where complex cognitive and motor skills are required – such as performing complicated surgery or playing the piano – experts in these fields have had an average 10,000 hours of training.  
The key is being able to eliminate all the “noise.”  
You need to be able to chunk down all the information available into usable bite-size pieces through a finely honed retrieval system that can quickly screen out irrelevant options given the specific situation.  
This skill comes from familiarity gained by “doing it.”  
It’s like top tennis players who through experience have developed a sense of where a ball is likely to be served by unconsciously noting the subtle changes in the stance of their opponent.  Or the champion cricketer who seems able to anticipate where a ball will be bowled even before it has left the bowler’s hand.  
It’s the same type of perspective that gives seasoned property investors an edge over the average investor.  
Think about it…  
Having lived and invested though five property cycles means I don’t get carried away by all the property naysayers and doomsday merchants that seem to concern many other investors.  
I’m not an eternal optimist. I’ve just seen it all before.  
Consistency is key
No matter which investment strategy you select, be it capital growth or cash flow, renovations or property development; you’re likely to find that a small group of investors, say 10% do really well and the rest struggle.  
Rather than jumping from one shiny thing to the next like the average investor, these successful investors do the same things over and over again.  
They set their goals, map their course and then keep doing what works, refining their skills along the way.  
By sticking with a tried and tested strategy, these investors know how to navigate any tricky bumps in the road and become accustomed to seeing the opportunities and potential earning power in market movements.  
This means their success depends on them and the skills they have refined throughout their investment journey, rather than on the market place.  
But that’s not how most beginning investors do it.  
They want to climb the property ladder all the way to the top and nothing will stand in their way.  
They start using the latest fad from some get rich quick seminar, buy their first investment and then look for the next big way to make millions. And thus begins a cycle of jumping from one bandwagon to the next.  
However we know most investors never achieve financial freedom. In fact most never get past their second property.  
This is in part because they have never refined their real estate strategy and taken the time to learn the rules of the game, so they inevitably fall at the first hurdle and more often than not, call it quits before they make any progress at all.  
That’s why around 20% of those who buy an investment property sell up in the first year and around 50% of those getting involved in real estate investment sell up in the first 5 years.    
So when will I become an expert?
The way to become an expert is to do one thing a hundred times, rather than 100 things once.  
Yes practice makes perfect, which means that rather than looking for the “one big deal that will make you rich quickly”, you should start your investment journey gently, knowing that you’ll make mistakes along the way and learning from these will make you a better investor.
 
Before you panic about having to commit 10,000 plus hours to property investment before you can call yourself an “expert”, let me assure you that there are ways to speed up the learning process in real estate.  
The simplest is to find a mentor who has already achieved what you want to achieve and let them guide you.  
Study how they think, because it’s likely a large part of their success comes from their mindset.  
Then emulate their successful behaviours and learn from the mistakes they made in order to advance your own skills and refine your own strategies.  
How will you know when you’re an expert?  
The main thing that separates the successful investor from the wannabe’s is an ability to consistently outperform the averages.  
And yes, to get to this level of expertise, takes time, patience and practice.
 
<hr>
 Michael Yardney is a director of <a rel="nofollow" href="https://www.metropole.com.au/">Metropole Property Strategists</a>.
 
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Successful property investors put in time, hard work and importantly, practice: Michael Yardney

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Deborah West of SydneySlice Executive Rentals shares her top tips for investment property owners:
Get landlord insurance: Landlord Insurance provides a range of protections that are not covered by standard home buildings and contents insurance.
Depreciation: Investors are often unaware of the tax deductions available through property depreciation. Negative Gearing: Make sure you claim all expenses, for example if you are living overseas you maybe can claim the cost of an airfare to inspect your property.
Review rent annually: Increase your rent by small amounts annually depending on the market.  Small increases every year ensures your tenants don’t get a big shock and leave.  Also means they get used to the increase annually. 
Time lease ends: Time lease end dates to be at times in the year when there is the most demand.  Usually around September-November or February-April. Try to avoid a your Lease ending in December or early January.
Maintenance: Regular maintenance will add value to your investment and ensure you get top rent.
Review your loan: Make sure you are getting the best interest rate.
Consider pets: If you can allow pets in your property some pet owners will be happy to pay a premium for this benefit. Just make sure you have pet clauses included in your lease.
 
<hr>
 Deborah West is joint principal and founder of <a href="https://www.sydneyslice.com/" target="_blank">SydneySlice</a> and a licensed estate agent.
 
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Top tips for investment property owners

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If you are buying off-the-plan, it is vital that you research the background of the developer and their track record.
Have there been court actions against the developer?
Do they have a history of delivering what has been promised and settling disputes quickly and neatly?
“Banks are strict on who they lend to. Banks also look for a good track record before handing over construction finance,” says Tim Rees, director of CBRE Residential Projects.
The internet is a good tool for research and look for blogs and newspaper articles. Do not judge a developer solely by its website and ensure there is an office where you can meet people face to face.
Also talk to friends, family, work colleagues or any people you know who have bought homes in previous developments off-the-plan.
Bad feedback about a vendor should ring alarm bells, while good reports are certainly worth remembering.
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Buy off-the-plan from a reputable developer

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Institutional and investor appetite for retail assets shows no sign of fading, with more than $450 million worth of shopping centre deals around the country believed to be close to being finalised or just completed. 
Mirvac Group is close to finalising its purchase of the Harbourside Shopping Centre in Sydney's Darling Harbour in deal believed to be worth more than $255 million. A source told Property Observer that the deal could be finalised as soon as next week.
The three level retail and entertainment centre was listed for sale by Suntrack Holdings, a company owned by developer John Beville. Suntrack reportedly paid $127 million for the property in 2004.
Selling agent Stonebridge Property Group declined to comment.
In a separate deal, Raptis Investments have purchased the Inala Plaza shopping centre for $32.350 million. The sub-regional centre, located south?west of Brisbane's CBD, was sold on a passing initial yield of 11.5%.
The centre is anchored by supermarket retailers Woolworths and Coles and supported by two mini major tenancies and 60 specialty tenancies. The sale was negotiated by Jonathan Fox and Carl Molony of Stonebridge Property Group, on behalf of the vendor 360 Capital.
Speculation has also emerged that potential suitors for Harbour Town Perth have entered the second round of negotiations. At least two offshore parties, one from Singapore, are said to be having a hard look at the outlet shopping centre.  Colonial First State could also be among the interested parties. The price is believed to be around $165 million plus.
Expressions if interest for Harbour Town Perth closed in 26 September.
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