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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Last Thursday, an article by Mercedes Rueh highlighted the emerging trend of hubs and co-working spaces in Melbourne and other Australian capital cities.
What you need to take away from the article is that the nature of work is changing. And therefore, creating new opportunities for you and other commercial property investors, who are flexible and forward thinking.
What are co-working hubs?
Co-working spaces are shared offices with most of the facilities that you would find in a normal office — such as wi-fi access, audio visual equipment, coffee machines.
They can be large open working spaces with tables, or split into larger and smaller rooms. It just depends on the style and preference of the users for the space.
Individual and groups workers are able to rent space for hourly, daily, weekly or monthly fees or set monthly fees.
You are starting to find these hub facilities popping up in most Australian capital cities.
Who actually uses shared work-spaces?
Co-working spaces are the first choice for many 'bootstrapping' start-ups because they offer the features of a normal offices space with lower costs. But it is not just small start-ups using this hub format.
Deloitte, AMP Capital, the NSW government, the GPT Group and CBRE are just a few of the companies experimenting with dynamic work spaces.
These spaces are becoming more popular because they foster creativity, collaboration and community which benefit employees and managers.
The demand for co-working spaces is only increasing — as office workers, specifically Gen Y, demand work that is more flexible and engaging.
What does this mean for landlords?
The uses of commercial property are changing in many ways. And the emerging co-working trend offers you the opportunity to add value to your properties.
At the end of an existing lease, or when a tenant vacates — you could clear out an older office building floor. Then refurbish the office with as a modern co-working space.
The secret then lies in securing one of the emerging, more-progressive corporates. Or a single "entrepreneurial" head tenant, who will then assume responsibility for arranging and coordinating all the smaller users.
Bottom line is if you simply allow yourself think outside the box and recognise emerging trends in the commercial property market you'll always be able to find opportunities to significantly add value to your older portfolio.
 
<hr>
 Chris Lang is an advisor to commercial property investors, sell-out author and regular speaker on how to invest in commercial property. 
 
You can visit his website <a target="_blank" rel="nofollow" href="https://property-edge.com.au/">Property Edge Australia</a> to help you get the most out of your commercial property investing.
 
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Breathing life back into your old office: Chris Lang

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A hotspot report can be a good way to start thinking about locations where property prices are likely to rise over the coming years.
They will also provide information about demographics, infrastructure, amenities and the type of properties to consider within a “hotspot”location to help guide your thinking.
But you should not rely on hotspot reports alone and certainly not assume that capital growth is guaranteed.
As highlighted by hotspotting.com.au’s Terry Ryder, there i sno such thing as a “bulletproof” suburb.
To make sure your decisions are based on solid facts the key is research, research, research.
Read absolutely anything and everything about the property market in your chosen area.
Extract information from friends and family who have residential holdings. Track sale prices against original asking prices using local papers and residential listings websites.
What is the sales history of the property and its neighbours?
The internet has enabled buyers to be better informed than everbefore, and for free.
You may also consider purchasing an independent report on a suburb or street from the likes of RP Data, Residex or Australian Property Monitors.
 
<hr>
This article is from Property Observer's free ebook <a href="/guides/free-ebook-top-10-property-investment-tips">Top 10 Property Investment Tips</a>
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po-LsXgBTHBmX

Get tips from hotspot reports, but do your own due diligence and research

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By the close of business today, thousands of people will have queued around 20 big, flashy Apple shops across the country and smaller telco outlets like Telstra’s shops to look at and then buy a new Apple iPhone 5.
The hundreds of thousands of dollars they will spend today and into the following weeks will be money that won’t be spent in other retail outlets or activities.
And earlier this week, as many of us with teenagers will know, Grand Theft Auto V came out. It sold a record $US800 million worth in the first 24 hours in the US and Europe. Yes, $800 million! That’s more than all but the biggest Hollywood blockbuster movies make. Oh and by the way, new gaming consoles are coming from Microsoft and Sony later in the year. They’ll be accompanied by a new Call of Duty title. Expect similar numbers to GTA V —?except the main interest in CoD titles is online multiplayer gaming, for which you need not only a quality broadband connection but also an Xbox or PlayStation subscription. In the June quarter, Microsoft earned US$1.7 billion from Xbox Live points.
And by the close of business today, millions of dollars will have flown into the bank accounts of Westpac, CBA and their peers from millions of mortgage owners who are repaying their home loans faster than they have to. That’s part of the continuing deleveraging trend as bank deposits soar while consumers and especially home owners save, save, save, instead of spend, spend, spend, which in turn has confused retailers and others in government.
These are all reasons why big retailers?—?Solly Lew and the hands-on Mark McInnes at Premier Investment, Bernie Brookes at Myer, Gerry Harvey and so on?—?will continue to whinge about how tough they’re doing it. Retail in Australia is changing, and the change is clobbering their business models. And the change isn’t just the switch to online purchasing, GST-exempt services and food, as we’ve so often explained.
The spending on smartphones, not to mention the apps that you can buy for them (worth <a href="https://techcrunch.com/2013/09/19/gartner-102b-app-store-downloads-globally-in-2013-26b-in-sales-17-from-in-app-purchases/" target="_blank" rel="nofollow">US$26.7 billion in revenue this year</a>), diverts revenue from existing shops and services into fast-growing areas of consumption dominated not by traditional retailers but by emerging retailers like Apple and telcos. Although iPods and mobile phones have been around for a decade or more, it’s only with the advent of the iPhone (and smartphones generally) and tablets that the sector has grown enormously. Moreover, it’s telcos that manage the accounts of smartphone owners, which sucks  billions of dollars more out of the domestic economy that a decade ago would have been available to be spent on consumable items and services.
Solomon Lew has locked himself out of this trend completely, preferring to concentrate on stay in clothing and apparel. That has hurt his group’s sales and profits, but Lew refuses to acknowledge that, preferring to blame online GST-free purchases from offshore, or bad management by the former ALP federal government.
Meantime, other new product categories have emerged that also have a significant diversionary effect. Gaming has long been dismissed as trivial and juvenile, but the numbers show it is a major entertainment product with, as the Xbox Live revenue shows, an ongoing revenue stream even between major event titles like GTA and CoD.Those titles do need to be physically purchased at an outlet, whether it’s a games store (a retail form that is going the way of the video store) or more likely an outlet like JB Hi-Fi. A rapidly growing segment of gaming is entirely online, purchased via outlets like Steam, despite the blatant gouging of Australians customers that game manufacturers engage in.
A key feature of these new categories is that they are based offshore. We don’t make or design smartphones here, and we don’t produce blockbuster video games, or game consoles. In fact, we don’t produce many entrepreneurs who have the smarts to develop new product categories at all. That means that the stronger the currency, the bigger the impact on traditional retail of these new categories. And right now, with the dollar regaining some of the recent and welcome fall in value, that means things will continue to worsen for retailers.
At least buying a game or an iPhone in Australia will generate GST revenue, if not enough for WA Premier Colin Barnett’s liking (Prime Minister Tony Abbott this morningagain ruled out altering the GST despite Barnett’s plea yesterday). But mortgage prepayments and rising bank deposits (up $125 billion in the year to June) means more diversion: money is being saved and not spent on products and services that attract GST. Some of us remember the 1980s when Australians were continually lectured to save more, or even the early part of last decade when our very low savings rate was said to be a cause of concern. Now the government hopes to knock our prudence and caution out of us so we spend more.
According to APRA figures there are about 4.8 million mortgages on issue in Australia, with around a third of those (1.6 million) held by investors who have a vested interest in not repaying their loans faster than they should because their investment is tax driven. The remaining mortgages are held by owner-occupiers, and upwards of 60% of these are repaying their mortgages faster than they should.
Yesterday, the RBA provided more evidence of the impact of this faster pace of repayments, with <a href="https://www.rba.gov.au/publications/bulletin/2013/sep/pdf/bu-0913-4.pdf" target="_blank" rel="nofollow">a research paper</a> revealing that between 50 and 90% of the 2.25 percentage points of rate cuts since late 2011 have been used for faster than normal mortgage payments. The RBA says this has cut credit growth for home lending by around 0.8% (which is equal to two months of nominal growth at the moment.
Credit growth in the year to July was 4.6%, up from 4.4% a couple of months ago. The 0.8% impact from the prepayments would have pushed growth to around 5.5%. The RBA researchers say that assuming no more changes interest rates, the impact of the high level of prepayments on credit growth will peak at 1% in 2014.
Traditional retailers might be better off thinking about why they’ve been left behind by consumption and savings trends, rather than begging for assistance. There’s?—?for once?—?<a href="https://www.afr.com/p/opinion/us_federal_reserve_to_test_tony_SM5erLtkJQzvBPZivtyu8M" target="_blank" rel="nofollow">a very good editorial </a>in the Australian Financial Review today suggesting that the best response to a strong currency isn’t to try to prop up industries like car manufacturing. “Australian business cannot depend on the Reserve Bank to dull the pain of a high dollar by cutting interest rates lower and lower,” the Fin concluded. Absolutely. And that applies as much to retailers as to manufacturers?—?or state governments such as Western Australia, which wants the rest of Australia to bail it out via a higher GST.

<hr>
This article first appeared on <a href="https://www.crikey.com.au/" rel="nofollow">Crikey</a>.
 
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Grand Theft Retail: Why traditional retailers will continue doing it tough

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Location, location, location. The age old real estate mantra should not just apply to where you live. Choosing the right location should be a key element of any good business strategy.
The location you choose for your business is critical in positioning your brand, while a good choice in location will be vital in attracting and retaining the best staff.
But don't be enticed to a premium location if it doesn't match your brand. Alternatively, don’t be put off by the cost of a premium location until you’ve done your due diligence and understood the benefits it can bring to your business.  A premium location may retain good staff, so ultimately cut down on your recruiting and training budgets.
Having a clear understanding of your business strategy and how your organisation sits in its market environment are the first steps to choosing your location.  Here are a few tips to consider when that all important choice has to be made:
Position it right and talent will follow
 In order to attract a steady supply of the right people to your business, you need to consider the type of person you wish to attract, their ages, qualifications, salary expectations and where they live.  Once you have a clear understanding of their profile, choose a location which will appeal to them. 
Keep competition close
 In most countries and cities there are clear geographic clusters for certain types of organisations. Employees move between these organisations and become accustomed to the geography.
 
What location tells your clients
 Where do your potential clients expect you to be? A company's physical address sends market signals that should be in tune with your branding and convey the appropriate stature and size to your target market.
 
Be easy to work with
Look at the type of business you are in and where work is carried out. Some businesses need their sales or support personnel to be based according to their clients' geographies. Major call centres are often located in proximity to major telecommunications hubs.
 
Catch talent with an easy commute
Consider where your preferred talent are likely to reside, then ensure that you choose a location that is as easy commute.
Don’t expect staff to walk for a sandwich
Amenity covers a wide range of considerations, from convenient and affordable parking, to cafes and bars, retail, banking and other services.
 
There's safety in numbers
With longer working hours the norm for many organisations, the relative risks involved in making it safely into one's car, bus or train when leaving the workplace after dark do impact on people's employment decisions.
 
Pay only for what you need
Do you actually need a physical office presence? Some organisations may be able to operate successfully on a largely virtual basis, with team members working from their homes, co working sites or clients' sites. Where previously staff needed to work in a central office to be able to access records and equipment, this is no longer the case. However, for many organisations a central office fulfils important collaborative, social, cultural/brand and other requirements.
<hr>
David McEwen is a workplace strategy consultant with <a href="https://www.colliers.com.au/?" target="_parent">Colliers International</a>.
 
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Office location – what does it mean for your business? David McEwen

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On Thursday 5 March 2009, the Bank of England announced a cut in the official bank rate from 1.00% to 0.50%. This followed a rapid series of cuts in response to the impacts of the sub-prime fallout from 5.75% in July 2007.

The Bank of England has not cut interest rates any further since that time for 0.50% is effectively the 'zero bound' in the UK. We are heading towards five years later, so is there a chance of rates rising soon? Gradually people are beginning to think so as the economy improves, although Governor Carney recently announced guidance suggesting that rates could be stuck at 0.50% for three more years.
Down under, Australian government bond yields and spreads have ticked up in recent months, suggesting that the bottom of our own interest rate cycle may be closing in on us some time in the next year.
<img alt="Spread between Australian 10-year bond Yield and the Cash Rate graph" height="277" src="https://www.rba.gov.au/chart-pack/images/18-22-interest-rates/20tl-10ycrau-small.gif?accessed=2013-09-21-15-31-18" width="320" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Elsewhere, government bond yields have ticked up, although US yields received a blow after the 'no taper' announcement from the Federal Reserve this week.
<img alt="10-year Government Bond Yields graph" height="261" src="https://www.rba.gov.au/chart-pack/images/18-22-interest-rates/19br-10yg3-small.gif?accessed=2013-09-21-15-31-18" width="320" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
The UK is by no means unique in its application of a zero interest rate policy (ZIRP). In the US interest rates have been stuck at rock bottom since late 2008. Even in Australia, where we have not experienced a recession in more than 20 years, the cash rate has fallen sharply to only 2.50%.
<img alt="Australian Cash Rate graph" height="272" src="https://www.rba.gov.au/chart-pack/images/18-22-interest-rates/18bl-cr-small.gif?accessed=2013-09-21-15-11-11" width="320" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;">
In fact, take a look at other advanced economies - very low interest rate policies since the onset of the global financial crisis:
<img alt="Policy Interest Rates – Advanced Economies graph" height="272" src="https://www.rba.gov.au/chart-pack/images/18-22-interest-rates/18br-pradv-small.gif?accessed=2013-09-21-15-11-11" width="320" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;">
Inflation is a risk in some emerging markets and policy interest rates have tended to remain some way higher:
<img alt="Policy Interest Rates – Emerging Markets Asia graph" height="268" src="https://www.rba.gov.au/chart-pack/images/18-22-interest-rates/19tl-prasia-small.gif?accessed=2013-09-21-15-11-11" width="320" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;">
A new era?
This week the Federal Reserve in the US threw markets a curve-ball by announcing that it would not yet be tapering back its monetary stimulus, leading commentators to observe that the US economy is "addicted to stimulus".
There are some who now believe that rather than developed countries raising and lowering interest rates to stimulate or cool their respective economies, central banks will instead switch quantitative easing (QE) - the 'printing' of money' - on and off, in order to achieve the same outcomes.
Will this prove true? Well, in the short-term this might well be the case. But over the long term, history tells us that the direction and behaviour of interest rates are by no means predictable
During the Great Depression and after World War II the world saw periods where interest rates fell low and many felt that developed economies might never escape from their downward spiral and low rates. Yet by the 1980s inflation was raging and interest rates were instead spiralling upwards to 20% in the US, 15% in Australia and 15% in the UK.
What we can do about it?
In short, the defence against excessive monetary stimulus is to hold income-producing assets which represent a good inflation hedge - shares and well-located property. There is a lot of focus on whether share markets are 'higher' or 'lower' than where they were five years ago. Some markets, such as the S&amp;P 500 are at 'record highs'; the ASX 200 (XJO) index chart in Australia sits below where it was before the financial crisis:
<img height="220" src="https://hfgapps.hubb.com/asxtools/imageChart.axd?s=xjo&amp;pi=Index&amp;ct=3&amp;tf=M10&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=20130922004134601" width="320" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
Source: ASX
What this overlooks is that equities are an income asset and therefore when tax-favoured dividends are included in returns, Aussie shares are also at all time highs and continue to represent a proven inflation-busting asset class. <img alt="ScreenHunter_65 Sep. 20 10.16" height="234" src="https://www.macrobusiness.com.au/wp-content/uploads/2013/09/ScreenHunter_65-Sep.-20-10.16.gif" width="320" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;">
If there is a risk of ongoing monetary stimulus, rock-bottom interest rates continuing and inflation hitting the economy, this simply makes it all the more important to have a better plan than just having cash in a bank account. 
<hr>
Pete Wargent is the co-founder of <a rel="nofollow" target="_blank" href="https://allenwargent.com/">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a rel="nofollow" target="_blank" href="https://petewargent.blogspot.com/">blogger</a>.
His new book '<a rel="nofollow" target="_blank" href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx">Four Green Houses and a Red Hotel</a>' was released on 1 September 2013.
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Are we on the cusp of a low interest rates era? Pete Wargent

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Our Friday poll found that the majority of respondents are looking to purchase in the $300,000 to $400,000 bracket, further suggesting that they may be pushing up against first home buyers.
With 26.9% of readers pointing to the $300,000 to $400,000 bracket, and 62.7% looking to purchase under $500,000 in total, it looks like investors will be driving the affordable bracket.
<img alt="poll-results-sept-23" height="320" width="470" src="/images/stories/2013/09/23/poll-results-sept-23.jpg">
With investors pouring into the market, and talks of prices rising substantially in some capitals, it’s no wonder that first time buyers are starting to feel the heat.
Of course, there are two waves of thought here. One goes along the lines of ‘get in now before everything jumps in value and prices you out’, while another perspective is ‘wait until there isn’t any competition in the market’.
Similarly, if you’re sitting on a 5% deposit, then the temptation to hold off of entering can be strong.
In fact, investors have <a href="/news">recently been blamed for first home buyer woes</a>, and SQM Research announced that<a href="https://www.propertyobserver.com.au/finance/first-home-buyers-priced-out-of-the-market/2013092265179?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news" target="_blank"> first time buyers are already getting priced out</a> of the market.
All this comes at a time when markets are heating up.
 
{module Should first time buyers be holding off or jumping into the market now?}
 
 
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Should first time buyers purchase now?

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I was fortunate enough to attend the SQM seminar last week as Louis Christopher – one of the most well respected voices in the real estate industry for his balanced assessment of market data – presented a state by state rundown of projected activity over 2014.
<a target="_blank" href="#https://www.sqmresearch.com.au/capitalcitiesreports.php">Louis predicts</a> Sydney’s established housing market will see a 15-20% ‘rapid rise’ over the course of 2014, highlighting the middle suburbs in particular to capture the overflow of demand, as inner city development constraints force consumers outwards.  
There’s been plenty of talk regarding housing affordability and the very real risk associated with an unsustainable boom in values, with some claiming – based in part on our low interest rate environment – that any mention of a concern is a mere myth.  
When asked from an audience member at the seminar if first home buyers were being crowded out of Sydney, Louis concluded they were – and indeed it would be hard to deny.  
Investor activity has dominated the Australian property market over the last 12 months or so.  Banks are bidding for buyers in a highly competitive environment, and the lion’s share of mortgage demand is being eaten up between investors and upgraders.  
A third of all new loans are with loan to value ratios of more than 80%, and 40% are on interest only terms.  Clearly investors are speculating on a continued pattern of price gains from an already high plateau – an ambitious projection.  
Under the existing financial system, inevitably, it’s none other than rising debt that fuels accelerated growth.  However, <a target="_blank" href="#https://www.macrobusiness.com.au/2013/09/charting-the-australian-first-home-buyer-retreat/">since March 2009</a>, whilst the average first homebuyer mortgage has increased by only 1.4%, the mortgage for the market as a whole has grown by 7.9%.  
Meanwhile, first home buyers have seen their savings eroded, and as the latest ABS housing finance data outlines, wishful thinking that rising yields are pushing greater numbers into the market, has had scant effect.  
According to research by <a target="_blank" href="https://www.ratecity.com.au/">Rate City</a>, “first home buyers now account for just 11% of home loan commitments. This is below the 20 year average of 15% and has not been this low since 2004.” And whilst interest rates on their own can have little impact on price rises or falls in the near term – a long period of low rates and the dependency it invokes, can be dangerous in inelastic areas of limited supply.  
Current competition coupled with pent up demand, has done little more than push values further out of reach of a genuine entry buyer demographic.  And as complex as it may be to slowly unpick the current distortions that tie up the established market and hamper construction, the implications of not doing so, are potentially worst over the longer term.  
No one should be fooled by the rhetoric from various industry commentators concluding current inflationary gains are of no concern. Hence why we are seeing a conundrum in central banks across the globe employing "precautionary policy activism” in an attempt to cool asset inflation without hampering the broader economy by raising rates.  
<a target="_blank" href="https://www.propertyobserver.com.au/news/new-zealand-rba-announces-restrictions-on-mortgage-lending-for-borrowers-with-less-than-a-20-deposit/2013082064388">In New Zealand in particular it’s a point of concern</a> and not just a localised issue. House prices currently sit at record highs, with the government property valuer ‘QV’ residential index showing gains of 8.5% in the 12-month period ending August 30.  
As reporter for real estate news on Sky Business 602, Iggy Damiani pointed out to me last week that Australian banks' ownership of New Zealand’s 'big four', place them in a precarious position - currently having the highest exposure to residential mortgages in the world. Therefore asset gains, which outpace both wage growth and inflation, must be addressed.  
Even assuming low rates are assisting first home buyers, saving a deposit and sourcing a suitably affordable property is no easy task for a demographic who are often burdened with a hangover of student debt, and, in many cases, can’t conceivably buy in until they partner with a second income earner.  
With this in mind, it must be pondered what the effect will be when rates do inevitably rise, considering our household debt to income ratio remains stubbornly high, at around 148%.  
Property to some extent connects together like a flowchart. Supply is fed in from the bottom to allow those upgrading (and then downsizing) a ready market to sell into in order to make the move.  
However, when investors predominantly negatively gear into the asset class most favoured by first home buyers – inevitably resulting in inflated established property values – and the state government fails to come to the party with feasible affordable alternatives, our property wheel of upgrading and downsizing risks stagnation.  
In the near term, heated investor activity may keep everyone dancing, however over the longer term we’re losing a valuable demographic of property buyer, which will no doubt have a flow-on effect across the property chain as a whole.  
As these changes push through the generation gap, it’s fair to assess, increasing numbers will retire whist still factoring as short-term renters.  
Investors tend to hold property for extended periods of time in order to build equity – many choose to invest as part of their self-managed super funds and subsequently do not sell until retirement. Therefore the ready supply, which usually comes from initial homebuyers selling and upgrading, will start to slow.  
 
<hr class="system-pagebreak">
Additionally, we have the first world problem of an aging population creating future headwinds across the economy, with <a target="_blank" href="https://archive.treasury.gov.au/igr/igr2010/report/pdf/IGR_2010.pdf">government intergenerational reports</a> forecasting the already reducing workforce participation rate, to drop to around 60% by 2050.  
Considering the predominant home buying activity takes place within the ages of 22-44, it seems reasonable to assume that there’ll eventually be proportionally greater demand from those downsizing as we progress through these buyer type changes.  
However, if the flow-on home buyer effect doesn’t follow through, the mismatch of household size comparable to property type will continue to stagnate our property buying and selling terrain, further tying down supply in the areas most want and need to reside – areas within easy commutable distance to city suburbs, jobs and essential amenities such as schools, hospitals, doctors, public transport systems and so forth.  
Therefore, the last thing we should be doing, is advocating the spruik that rising property prices are somehow good for the economy having a supposed flow on effect into retail spending, which in itself is currently not producing the desired result.  First home buyers may head out to purchase white goods and furniture for their new abode, but our investment sector certainly won’t.  
Additionally, choices are limited in a market that has been turned into a speculative terrain.  
If we were building homes that were viable for first home buyers to gain a foothold which would not only maintain consistent market demand in order to upgrade, but also provide feasible accommodation for this demographic to settle for an adequate period of time, then having an investor-dominated inner-city terrain could perhaps be balanced somewhat so as not to affect the stagnated flow of the home buyer chain.  
However, the new home options are either limited to outer-suburban estates lacking in infrastructure, which is an essential component needed at the start of each project if we’re to lure home buyers outwards, or alternatively, inner-city high-density low grade developments.  
Our census data already demonstrates that most lone person households are tottering around in accommodation that’s far too big for their requirements. Building an abundance of one-bedroom apartments therefore won’t suffice; only 14% of the total single person households of all ages opt for one-bedroom units.  We instead need a wider diversity of options, in particular, accommodation suited to families - with the decrease of ownership for this demographic showing a fall from 79.5% in 2006 to 77.2% in 2011.  
<a target="_blank" href="https://www.propertyobserver.com.au/residential/why-investor-activity-is-causing-our-property-markets-to-stagnate-catherine-cashmore/2013021759370">As I’ve mentioned previously</a>, the percentage of investor-owned apartments in both Darwin and Brisbane falls close to 70% – and in the other capitals, it comes in between 60 and 70%.  
And whilst this generation of existing investors may continue to enjoy short-term speculative gains of the oft quoted property cycle, since when did the future of the first home buyer market become ours to erode?  
I’ve assisted numerous first home buyers and renters over the past few years, and it’s no exaggeration many perceive the capital price of property and the risks associated with taking on a greater proportion of debt a potential liability. For those who argue based on textbook analysis that property is not over priced, I suggest they change their frame of reference. There may be historical logic behind the long-term growth in values, but this doesn’t change the consequence; it is both over priced and under supplied.  
Therefore, pressure on the rental market is unlikely to ease in the near to far future, with ABS data showing almost two-thirds of new residents from overseas are long-term property renters along with half new residents from within Australia who also class themselves within the same bracket.  
Furthermore, economic conditions such as wage growth, unemployment, consumer confidence and frequent changes of work placements all reduce the likelihood of a strengthening owner-occupier market over the next decade.  
Current policy is built around the general assumption that renting is a step on the road to ownership. However, unless the trend takes an about turn, tomorrow’s generation will hold a growing percentage of residents for which renting is for life, and as such, we also need to consider their welfare.  
Policy should be steered towards the creation of a fairer partnership between owner and renter.  This would include longer terms of tenancy, protection from exorbitant rent rises coupled with enforcement of basic standards of accommodation in both the private and public sector.  
As it stands, in the rental market, and the property buying/selling market short termism dominates.  No surprise, as we’re governed by those who derive personal and political benefit from the existing system, polling for the popular vote from home owners and investors; pinned to our flawed debt based financial system that relies on an ever inflating future to under-pin existing gains.  
 
<hr>
 Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
     
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The future of the first home buyer should not be ours to erode: Catherine Cashmore

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Sceptical though I am about reading too much into short-term data, RP Data's Daily Home Value Index is always entertaining and is showing some strong indications of property price rises.
It's also worth noting that all property types within a city do not move in a harmonious manner as statistics at the macro level might seem to imply.
And in fact, Melbourne is perhaps a prime example of a city with property markets with deviating prospects (high rise inner-city stock and remote fringe suburbs may fare less well than quality dwellings in landlocked middle suburbs, for example).
<a href="https://1.bp.blogspot.com/-Z8spfTDNuDc/UjpDVXEPL2I/AAAAAAAAKSY/swTy_a3uy0c/s1600/RPD.jpg" imageanchor="1" style="text-decoration: none; color: #7f7f7f; margin-left: 1em; margin-right: 1em;"><img border="0" height="238" src="https://1.bp.blogspot.com/-Z8spfTDNuDc/UjpDVXEPL2I/AAAAAAAAKSY/swTy_a3uy0c/s400/RPD.jpg" width="400" style="border: 1px solid #ebebeb; position: relative; padding: 5px; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; display: block; margin-left: auto; margin-right: auto;"></a>
Source: RP Data
Dwelling prices in Melbourne are reported as being up by 6.87% quarter on quarter, with I find remarkable, although the gains year on year are notably less dramatic at 5.70%.
As for Sydney, it's equally remarkable to think that as recently as the first week of June commentators were talking about prices possibly being in a downtrend (they quite obviously weren't) due to an instantaneous negative consumer response to the budget.
Since June 9, Sydney's dwelling prices are also reported as being up by more than 7%, disproving the theory.
The numbers for the last quarter aren't really backing me up here, but my gut feeling is that Sydney has stronger fundamentals than Melbourne at this point in time.
What about elsewhere? There is talk of slowing jobs growth in Perth as the mining boom shifts away from construction and towards production. Prices remain up very strongly year on year, but gains seem to have slowed up.
There appear to be tentative signs of life in Brisbane and perhaps better days ahead for the sunshine state it would seem.
The only city where prices remain below where they were a year ago is Adelaide, although with interest rates looking to be locked at bargain basement levels for some time to come, moderate rises would surely be on the cards.
Whether or not the city can recapture its previous peaks of 2010 only time will tell.
<img alt="Dwelling Prices graph" src="https://www.rba.gov.au/chart-pack/images/5-6-household-sector/6bl-dwelpri-small.gif?accessed=2013-09-19-01-27-29" style="padding: 5px; border: 1px solid #ebebeb; box-shadow: rgba(0, 0, 0, 0.0980392) 1px 1px 5px; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; line-height: 18px; display: block; margin-left: auto; margin-right: auto;">
 
<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>' was released on 1 September 2013.
 
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What's happening to Melbourne dwelling prices? Pete Wargent

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Last week, Louis Christopher from SQM Research declared the “Sydney though is turning into a beast unto itself. We have a strong conviction that the ABS will record 15% to 20% house price rises next year for that city. Such a rise will create a large dilemma for the Reserve Bank of Australia (RBA), especially if the national economy is running below average growth.”

What a bold announcement given he left out what will actually influence this price proliferation. Even more remarkable is that Sydney consists of approximately 650 suburbs – so what a huge call!
This then prompted the dialogue to move to the words “boom and bubble.” Personally, I believe the word bubble is best left to describing champagne given the Sydney property market has been defying analysts for decades. Over the global financial crisis Mosman property prices fell up to 30% – smaller at the lower end and much greater at the top – end. So projected increases of 15 to 20% would realign the market back to where it was in 2007.
If you really want to look when Sydney had its last (what I call property boom) cast your mind back to 1988 – when the bubbles were really popping as Australia celebrated its bicentenary – in that case under the influence.
Prices rocketed by 75% to 100% which then led to the “recession we had to have”. When I look back to 1988 I can identify just five agents in Mosman who were selling back then of which Steve and I, nearly make up half. The cash rate back in 1988 varied from 13.50% to 15.00%. In 2004, we had another buoyant market with the cash rate remaining stable at 7.50% and again in 2007 where the cash rate bounced from 6.25% to 6.75%. One would not need to be a genius to see that with a cash rate of 2.50% eventually (despite ongoing conflicting global influences) we will see a stronger return back to bricks and mortar.
<a target="_blank" href="https://www.businessspectator.com.au/article/2013/9/18/economy/housing-bubble-you-bewdy">Alan Kohler wrote last week</a> “investing in property is a no-brainer at the moment. Prices have bottomed, auction clearance rates are on fire, especially in Sydney, and you can get a fixed rate of 4.8% with 100% gearing, 70% in your super fund.” The dominant players in the current market are definitely the investors with an insatiable diet for apartments.
<img style="margin: 0px auto; padding: 0px; outline-width: 0px; font-style: inherit; font-family: inherit; max-width: 100%; display: block;" height="333" width="470" src="https://www.rwm.com.au/files/2013/09/17-09-2013-12-55-56-PM.jpg" alt="17-09-2013 12-55-56 PM" class="aligncenter size-full wp-image-8196">
This week marked the fifth anniversary of <a target="_blank" href="https://www.smh.com.au/business/world-business/the-day-lehman-brothers-hit-the-canvas-and-stayed-down-20130913-2tqbg" title="The day Lehman Brothers hit the canvas and stayed down ">the day Lehman Brothers hit the canvas and stayed down </a>which destroyed the modern theory that banks can’t go broke.
Of greater influence <a target="_blank" href="https://www.theatlantic.com/business/archive/2013/09/5-years-later-weve-learned-nothing-from-the-financial-crisis/279506/" title="5 Years Later, We’ve Learned Nothing From The Financial Crisis">five years later, we’ve learned nothing from the financial crisis</a> which then fuels speculation – <a target="_blank" href="https://www.theage.com.au/business/world-business/why-the-financial-crisis-could-return-20130913-2tqbh" title="why the financial crisis could return.">why the financial crisis could return.</a>
When we look at what’s influencing the top-end of the Mosman market our RWM Research can reveal that over the last twelve months there have been twenty sales over $5 million. Of those twenty sales Chinese buyers have acquired 40% and growing.
Richardson &amp; Wrench Mosman (RWM) posted 7 of the 20 sales including the top three sales. The Chinese buyers purchased five properties in Beauty Point and three in Balmoral.
A strong week’s activity for <a target="_blank" href="https://www.rwm.com.au/news/" title="sales in Mosman">sales in Mosman</a> with house volumes still down 33% on this time last year and apartments down 40%.
The <a target="_blank" href="https://www.smh.com.au/business/rba-deflates-talk-of-housing-bubble-20130918-2tzp7">RBA stepped into the ‘bubble and boom” debate</a> this week although it was also quick to <a target="_blank" href="https://www.theage.com.au/business/rba-issues-warning-over-cheap-credit-20130917-2tx8e" title="RBA issues warning on cheap credit">issue a warning on cheap credit</a> and say that it was <a target="_blank" href="https://www.theage.com.au/business/reserve-worried-about-smsf-property-gearing-20130917-2twlg" title="Reserve worried about SMSF property gearing ">worried about SMSF property gearing </a>given investors are by far the biggest players in the current property run.
Just as interesting was <a target="_blank" href="https://www.afr.com/p/national/economy/momentum_builds_for_home_loan_limits_0pOasL2qGiKlMIkr1B5OrL" title="momentum building for home loan limits ">momentum building for home loan limits </a>so it would be fair to say that this time around our regulators have their respective eyes – wide open.
What I would add is that the vast majority who keep pushing the “bubble and boom” are more than likely under the influence.

<hr>
Robert Simeon is a director of <a title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow" style="font-size: 14px;">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
 He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow" style="font-size: 14px;">Virtual Realty News</a> since 2000. 
 
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The only talk of property bubbles should be about popping champagne: Robert Simeon

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Queensland’s capital city, Brisbane, is the largest municipality in Australia.  There are 1,110,473 people that live in Brisbane, comprising just fewer than 5% of Australia’s population.  The second largest council, which is also in the south-east corner of Queensland, is the Gold Coast where the population is less than half that of Brisbane’s at 526,173 persons. 
In fact, four of the top five council regions (including the entirety of the ACT) are located in south-east Queensland; the other two are Moreton Bay and Sunshine Coast.  These four council regions alone account for slightly more than 10% of the national population.
Not only is the Brisbane City Council region large in both area and population, it is growing rapidly.  Over the past 10 years the area has increased in population by about 20,200 persons each year or nearly 1,700 new residents every month.
There are some benefits of having a large council.  The taxation base is larger providing some economy of scale and the urban planning and approval process tends to be much more streamlined.
<img class="aligncenter size-full wp-image-2354" alt="Largest LGAs" src="https://blog.rpdata.com/wp-content/uploads/2013/09/Largest-LGAs.jpg" width="470" height="160" 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;">
The fastest growing council regions:
Six out of the top ten fastest growing council regions around the country are located across Western Australia and four of them are in the Perth metro area.  The Perth Council has recorded a population growth rate of 125% over the ten years to June 2012 to reach a population of roughly 19,000 residents.  The population growth rate across the Perth council area remains high at 3.7% over the 2011/12 financial year, however, councils like Serpentine-Jarrahdale (+8.1%), Kwinana (+6.6%), Armidale (+5.9%) and Wanneroo (+5.6%) have been outpacing Perth over the most recent 2011/12 period.
Rapid population growth provides both positive and negative factors for local governments.  The positive is that population growth is stimulatory – more people means a larger tax base and more demand for housing which provides a multiplier effect on the local economy as higher demand for housing translates to more employment, building materials, white goods, home furnishings etc.
The challenge with rapid population growth is to ensure infrastructure and local amenity keeps pace with the population.  More people means more traffic, a greater requirement for public transport, health care, schooling, retail facilities etc.  Delivering on infrastructure is expensive and is the area where many governments simply fail to deliver.
<img class="aligncenter size-full wp-image-2355" alt="Fastest growing LGAS" src="https://blog.rpdata.com/wp-content/uploads/2013/09/Fastest-growing-LGAS.jpg" width="470" height="174" 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;">
The fastest shrinking council regions:
The regions where population growth is in significant decline can broadly be described as regional areas often associated with agriculture.  Five of the top 10 regions where the population is shrinking the most rapidly are located across Western Australia’s wheat belt.  Camamah (-30.1%), Dalwallinu (-27.8%), Mukinbudin (-27.7%) and Wyalkatchem (-20.6%) are seeing their population dropping from an already low level.
The trend towards smaller populations across these rural areas is nothing new and is likely to continue as the average population of these areas grows older and younger cohorts move away.  A declining population creates other issues including a lack of social diversity. 
The challenge for many of these areas is to continue providing infrastructure and services across a lower taxation base.  These regions are extremely large in area which compounds the costs involved in servicing the sparse population.
<img class="aligncenter size-full wp-image-2356" alt="Largest declines in population" src="https://blog.rpdata.com/wp-content/uploads/2013/09/Largest-declines-in-population.jpg" width="470" height="157" 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;">
The councils with the highest population densities:
Nine of the 10 most densely populated council regions are located within the Sydney metro area.  The most densely populated council is Waverley where there are just over 7,500 residents per square kilometre.  The council includes popular suburbs such as Bondi, Tamarama, Dover Heights, Bronte and the Waverley.  About 80% of Waverly dwellings are units or semi-attached.
The regions with the highest population density tend to be located very close to the central business districts of each capital city and are of course synonymous with fewer detached homes, more apartments and town houses, efficient public transport systems and wide range of facilities and social options close by.
<img class="aligncenter size-full wp-image-2357" alt="highest density LGAs" src="https://blog.rpdata.com/wp-content/uploads/2013/09/highest-density-LGAs.jpg" width="470" height="165" 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;">
 
<hr>
 Cameron Kusher is senior research analyst at RP Data.
 
 
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