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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

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Residex's John Edwards forecasts annual price growth of around 4% for houses Australian-wide and 2% for units over the next five years.
These predictions are lower than what was forecast earlier in the year. 
"This is a consequence of the larger than expected rate of growth in the last 12 months and an increasingly unaffordable market," Edwards noted.
"However, these predictions are significantly lower than the average growth rates achieved over the last 20 years."
There are two markets in Australia that, in reality, set the pace for housing markets across the country – Sydney and Melbourne. He has Sydney leading with 4% annual growth over the next five years, with NSW Country capturing even stronger growth prospects.
"These two markets (Sydney and Melbourne) combined account for more than 50% of all dwellings in Australia," he added.
The data for the unit markets in Sydney and Melbourne is pointing to a future slowdown.
The capitals in the  resource states (Brisbane and Perth) are following a similar pattern to Sydney, however their growth cycle has been small and these assets are producing growth rates that contradict the hype about a ‘property bubble’ or ‘boom’.
<a href="https://www.switzerhomeloans.com.au/wp-content/uploads/2014/11/20141117-predictions.jpg"><img class="size-full wp-image-1614 aligncenter" src="https://www.switzerhomeloans.com.au/wp-content/uploads/2014/11/20141117-predictions.jpg" alt="20141117 - predictions" width="438" height="822"></a>
Source: <a href="https://www.residex.com.au/" target="_blank">Residex</a>/Onthehouse 
"In my view, housing markets are largely driven by consumer sentiment and the consumer sentiment index is a leading indicator of near-term future growth or activity in the markets," Edwards said.
"The September results indicate that, other than in Sydney and Melbourne, market performance is lacklustre."
He noted sales activity on a national basis, while higher than it has been since the first quarter of 2010, was still less than its peak achieved in July 2002 when annual sales were in the order of 572,000 dwellings.
"Take care with your property transactions and don’t over leverage – now is not the time to be excessively aggressive," he blogged on <a href="https://www.switzerhomeloans.com.au/propertymarketjohnedwards/" target="_blank" style="line-height: 1.3em;">Switzer Homes Loans</a>.
"Unaffordability has now reached a level where first home buyers are excluded from certain property markets. 
"The main central dwelling areas of capital cities are becoming the “home” of investors, who are providing rental accommodation for the younger population."
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NSW country to be strongest region for price growth: Residex

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NSW Fair Trading says property auctions should be conducted in English, but current laws do not prevent an auction being translated into a different language. 
The issued flared after a recent A Current Affair report on Melbourne auctions.
Auctioneer Robert Ding at Marshall White Boroondara was profiled on a report entitled 'Chinese buyers taking over the housing market', which focused on his dual-language talents during a house auction.
Ding thought the report was one sided.
“The auction footage had me talking in Mandarin but I was also translating it to English and vice-versa,” he told Real Estate Business.
David Scholes, founder and principal of auctionWORKS, does not have a problem with dual language auctioneers conducting auctions in another language in areas where offshore buyers predominate.
“As long as the auction is conducted primarily in English, and when I say primarily I mean completely in English with parts such as prices and relevant topics regarding terms and conditions being translated into other languages, then I don’t see why anyone would have a problem with it,” Scholes said.
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English language property auctions required in NSW

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GUEST OBSERVATION
Negative gearing is currently a hot topic, with opinions clashing across the net.
Whenever an investor benefit is considered being removed, it is important to remember that under the surface the benefit could actually be more important to the end user of the asset.
If you were to reduce the investor return or benefit for any kind of asset, the investor has two options. Firstly, they could exit the market and no longer provide the resource, placing funds in another asset class. Or alternatively, they could increase the cost of providing the asset to maintain the level of return they wish to achieve.
Either way, the impact of both options is ultimately the same, rentals increase due to landlord rental increases or rental increases due to tenant competition for the same property due to low levels of rental stock availability.
All asset sectors should be treated equally to maintain a balanced marketplace – this includes shares, property, and so on. Investors must always make decisions based on quality and return prospects, not on benefits that are available as a consequence of some sort of government incentive.
There is currently nothing to stop investors negatively gearing their share portfolios and achieving the same effect as investing in the property market. Therefore, in essence, removal of negative gearing from the property market alone would create a market distortion.
Notwithstanding all the above, what one can’t do is enter a transaction with the main objective of reducing your tax liability. This would in fact be in contrary to the provision of Part IVA of the tax act - the section that deals with tax avoidance.
Equally, if you are entering the transaction on the basis that you will make profits from capital gains and not rental returns, you are in effect in the business of trading in property and therefore not entitled to the capital gains tax benefits.
Negative gearing has now been around for so long and so widely accepted that many will believe that there are no constraints as to its use. Hence, it is very likely that there are many people with significant claimed tax deductions that could be lost and if the Tax Commissioner reviewed their tax returns. The impact on many of these people would be very catastrophic.
So what should happen? The government should have the Commissioner clarify the position by having him issue a general tax ruling/advice. The advice should indicate that:
<ul>
<li>Transactions which are geared beyond a level which causes tax losses annually for an unreasonable period of time (say five years) will be subjected to review and where there is evidence of tax avoidance then the provisions of Part IVA of the act will be applied. </li>
<li>Where an investment property is sold and if at no time during a reasonable pre-sale period did the rental income exceed the interest and other deductions, the tax office would consider the transaction was a purchased for the purpose of trading in residential property and hence the capital gains tax benefit of only having to pay tax on 50% of the gain would not be available. Equally in this situation the tax office alternatively may seek to disallow deductions claimed and take action under Part IVA of the act.</li>
</ul>
Undoubtedly our tax lawyers will find numerous very technical reasons to suggest the ruling/advice is inappropriate. However, in reality the ruling/advice would simply put the nation on alert and create a level of risk for the majority which would cause negative gearing to be used as it was intended and avoid any need to remove it totally.
This is a simple and effective solution that could be implemented very easy and not require any legislative changes. It would allow the Taxation Commissioner to look at existing property transactions as they’re being sold.
Overall, I do believe that negative gearing is necessary. It is a subsidiary in favour of the lower income earners who are renting as it encourages the provision of stock for these people. However, there are increasingly cases where it is being allowed by federal government authorities when it should not be, and this is distorting the market, causing higher house prices and making it harder for first time buyers.
John Edwards is consulting analyst for <a href="https://www.Onthehouse.com.au" target="_blank">Onthehouse.com.au</a> and founder of <a href="https://www.residex.com.au/" target="_blank">Residex</a>.
If you are looking for a more in depth analysis of John's property research, you can find this in the <a href="https://investors.onthehouse.com.au/" target="_blank">Investor Centre</a> at <a href="https://www.onthehouse.com.au/" target="_blank">Onthehouse.com.au</a>.
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It's not just investors who benefit from negative gearing

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GUEST OBSERVATION
When you look out of your window in the morning, how many trees do you see? Your answer might depend on <a href="https://202020vision.com.au/media/7145/where_are_all_the_trees.pdf" target="_blank">what suburb you live in</a>.
As you go further from the city centre, the amount of tree cover in a suburb decreases, while the amount of green space, such as lawns and parks, increases.
In Melbourne, for every 10 kilometres you travel from the city centre, the tree cover drops by more than 2%. That means Melbourne’s inner suburbs might have more than 15% cover, but an outer suburb could have less than 10%.
A 5% fall in urban tree cover can lead to a 1-2C rise in air temperature, leaving these communities <a href="https://sfrc.ufl.edu/urbanforestry/Resources/PDF%20downloads/mcpherson_1993.pdf" target="_blank">more exposed to extreme heat</a>. This really matters for community health and well-being, especially for the vulnerable among us – the elderly, young children and those with existing health issues.
There’s also mounting evidence that exposure to greenery and nature <a href="https://theconversation.com/hug-a-tree-the-evidence-shows-it-really-will-make-you-feel-better-21924" target="_blank">improves community mental health and well-being</a>.
So, what is driving this suburb tree cover inequality?
<h3>No single answer</h3>
This is not about a lack of green space, nature strips or roads to plant into. These trees are simply missing from our outer suburbs.
They are missing from backyards — partly because <a href="https://theconversation.com/what-has-happened-to-the-great-aussie-backyard-4506" target="_blank">newer houses in the outer suburbs take up more space</a> — and they are missing from the streets.
The recent property boom has also brought with it a gradual <a href="https://theconversation.com/what-has-happened-to-the-great-aussie-backyard-4506" target="_blank">“thinning out” of tree cover</a> in established suburbs, as residential plots are sub-divided.
But does it matter where these trees are planted in our cities? Well, yes it does if we want the benefits that tree cover provides including cooler temperatures.
It also matters for our weekly household budget, for the lucky among us that have an air-conditioner. This in turn, affects the <a href="https://www.sciencedirect.com/science/article/pii/S0360132313002060" target="_blank">electricity demand of the city</a> as a whole.
Disturbingly, but perhaps not unexpectedly, suburbs with the least tree cover are the most socially disadvantaged and have the lowest levels of tertiary education.
In Melbourne, suburbs with a higher proportion of tertiary educated residents have more trees shading paved roads and walkways. This could be driven by residents with a higher level of education lobbying their local council more for trees to be planted – but not likely.
The relationships between education, household income, property values, council rates and suburb tree cover are complex and don’t necessarily indicate causality. But tree canopy inequity does exist in our cities, and we need to first identify where this inequity intersects with social and economic disadvantage.
Once we know this, our tree planting efforts can be better targeted to increase the resilience of our most vulnerable communities.
<h3>Taking steps to grow tree cover</h3>
Cities that set targets to increase their tree cover might be swimming against the tide, unless the removal of trees from private and public space during development is regulated. This can be done, and has been done overseas in several cities such as in <a href="https://www.seattle.gov/dpd/cityplanning/completeprojectslist/greenfactor/whatwhy/" target="_blank">Seattle</a>, <a href="https://www.stadtentwicklung.berlin.de/umwelt/landschaftsplanung/bff/index_en.shtml" target="_blank">Berlin</a>, <a href="https://www1.toronto.ca/wps/portal/contentonly?vgnextoid=f85552cc66061410VgnVCM10000071d60f89RCRD" target="_blank">Toronto</a> and Singapore.
Despite the availability of more and more satellite data on tree cover, there have been no published studies of tree cover change over time in Australian cities.
Still, chasing a percentage increase in overall tree canopy cover within a city may not necessarily address the huge inequality in tree cover distribution. We need to identify which neighbourhoods within a city have the least tree canopy cover and target those as a first priority.
We also need to engage with residents of those neighbourhoods to achieve acceptance and ultimately ownership of any tree planting efforts. Assessments of tree cover and community engagement at a whole of city level won’t achieve this. We need to assess tree cover, and engage with communities, in a more targeted way.
Neighbourhoods with the fewest trees shading roads and pavements should also be targeted, because they will get the greatest cooling benefit from planting more trees.
There is huge variation in tree canopy cover within our cities. Tree cover in the suburbs of one city can range from <a href="https://202020vision.com.au/media/7145/where_are_all_the_trees.pdf" target="_blank">less than 10% cover to more than 50%</a>.
Cities across Australia are now setting ambitious targets to increase their urban tree canopy cover.
The <a href="https://www.melbourne.vic.gov.au/Sustainability/UrbanForest/Pages/About.aspx" target="_blank">City of Melbourne</a> aims to increase tree cover by 75% before 2040, the <a href="https://www.cityofsydney.nsw.gov.au/live/trees/urban-forest/tree-policies" target="_blank">City of Sydney</a> by 50% before 2030, and the <a href="https://www.brisbane.qld.gov.au/environment-waste/natural-environment/plants-trees-gardens/brisbanes-trees/brisbanes-urban-forest" target="_blank">City of Brisbane</a> is targeting tree cover for bike and foot paths.
The federal government is also aiming to <a href="https://www.environment.gov.au/land/20-million-trees" target="_blank">plant 20 Million Trees by 2020</a>. So, it’s clear that there is going to be a lot of tree planting in our cities over the coming years.
Addressing tree cover inequality in Australian cities is not only an issue for local governments. It’s an issue that should involve the local community itself, as well as state and national governments. As one of the world’s most urbanised nations, we need to ensure that everyone is resilient to the mental pressures of urban living and the hazards of heat waves.
Stephen Livesley is senior lecturer in urban biogeochemistry at <a href="https://www.unimelb.edu.au/" target="_blank">University of Melbourne</a>. <img src="https://counter.theconversation.edu.au/content/33299/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">tephen receives funding from The Australian Research Council, Melbourne Water, City of Melbourne, City of Monash, City West Water and the Nursery and Garden Industry Australia.
 Melanie Davern is research fellow and director community indicators Victoria at <a href="https://www.unimelb.edu.au/" target="_blank">University of Melbourne</a>. Melanie receives funding from Victorian Health Promotion Foundation.
Lachie Alexander, Mohamed Nizam and Kate Denver-Stevenson, students of Stephen Livesley at The University of Melbourne, also contributed to this article.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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po-LsXgBTHBmX

Fewer trees leave the outer suburbs out in the heat

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There are 1,426 auctions scheduled this week in Melbourne compared to 1,598 for the same time last year.
The highest volume of auctions will be in <a href="/news">Reservoir </a>and <a href="/news">Richmond</a>, each are expecting 23 auctions.
The state election may be on this Saturday but it does not have a significant affect on the market, buyers are able to vote and bid with ease as polling places are open from 8am to 6pm.
With only four weeks to go for auctions this year one of the features of the year – more auctions – is clearly apparent. So far this year there have been more homes sold at auction, 26,402, than there was over the whole of 2013. In 2013 there were 25,350 home sold at auction.
On a citywide basis, the time on market results for houses sold at private sale was stable at a very low 31 days over the last week and vendor discounting eased slightly to -4.8%.
Key data
<ul>
<li>Clearance rate week ending 23 November: 66.1%</li>
<li>Melbourne auctions expected week ending 30 November: 1,426</li>
<li>Melbourne private sales time on market week ending 23 November: 31 days (houses)</li>
<li>Melbourne vendor discounting market week ending 23 November: -4.8% (houses)</li>
<li>Listings being prepared for market are 3.5% higher in month ending 23 November (seasonally adjusted)</li>
</ul>
Source: CoreLogic RP Data.
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rlarocca-zWhvjay44N

Election no dampener on auction market: Melbourne weekend auction preview

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Australia’s property market has experienced a significant shift in lower-end priced properties. The selection for properties under the $400,000 mark is diminishing.  
Rising capital city dwelling values has meant that homes selling at a price below $400,000 has declined and is now down to 39.7% of all sales from 44.1% a year earlier.  
<img src="/images/2014/11/28/kiusher-nov-28-one.jpg" alt="">
Over the 12 months to August 2014, 37.3% of houses and 45.7% of units sold for less than $400,000.  At the same time a year earlier, 42.3% of houses and 48.5% of units sold for less than $400,000.  
Until 2004 the proportion of sales below $400,000 was fairly similar between houses and units.  Since that time the proportion of sales below $400,000 has trended lower however, the rate of decline has been greater for houses than for units.  
<img src="/images/2014/11/28/kiusher-nov-28-two.jpg" alt="">
This significant divergence in individual capital city home values and growth over recent years has also meant a large difference in the proportion of homes selling below $400,000.
Over the past year, the proportion of all house sales occurring below $400,000 has been recorded at: 
<ul>
<li>12.1% in Sydney;</li>
<li>25.1% in Melbourne;</li>
<li>32.4% in Brisbane;</li>
<li>47.9% in Adelaide;</li>
<li>15.3% in Perth;</li>
<li>62.8% in Hobart;</li>
<li>18.5% in Darwin;</li>
<li>7.5% in Canberra.    </li>
</ul>
20 years ago, more than nine out of every 10 house sales across each capital city were below $400,000. Of course over that time wages have increased, interest rates have tended to be much lower and credit has become much more freely available. Nevertheless, the drop in affordable housing across most capital cities has been substantial.  
Across the capital cities, the proportion of total unit sales below $400,000 over the past 12 months was: 
<ul>
<li>23.5% in Sydney;</li>
<li>37.3% in Melbourne;</li>
<li>53.8% in Brisbane;</li>
<li>67.8% in Adelaide;</li>
<li>38.2% in Perth;</li>
<li>82.9% in Hobart;</li>
<li>32.0% in Darwin;</li>
<li>39.0% in Canberra.    </li>
</ul>
Again 20 years ago almost every unit sold was less than $400,000.  While there has been a decline in unit sales under $400,000 across the board it has been markedly larger in markets like Sydney, Melbourne, Darwin and Canberra.  
Dwelling sales data produced by CoreLogic RP Data showed that over time, houses continued to outnumber units. This is the reason why house sales have a bigger influence on the overall result.    
Options for affordable housing supply, particularly in cities such as Sydney, Melbourne, Perth, Darwin and Canberra have sharply reduced over the past two decades.
<img src="/images/2014/11/28/kiusher-nov-28-three.jpg" alt="">
 
Although borrowing for a mortgage has become easier and wages have grown, the supply of lower priced homes drives many lower income earners out of ownership in these cities.
As an example, current figures to the 12 months to August 2014 indicate there has been just 16,345 homes sold below $400,000 in Sydney compared to 97,982 home sales in total. 
With home values continuing to rise in Sydney and Melbourne, we would expect even fewer sales below $400,000 over the coming 12 months. 
<img src="/images/2014/11/28/kiusher-nov-28-four.jpg" alt="">
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Pool of affordable housing in capital cities continues to evaporate

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It's funny how a town, city or region can become labelled.
I've heard that Canberra is reserved and government orientated, the Gold Coast is Australia's crime capital, Geelong is the poor cousin of Melbourne and the Hunter Region is coal mining country with Newcastle once known as Steel City.  
Obviously, these labels can linger over many years long after change occurs. The reference to Steel City relates to the BHP steelworks that closed over 15 years ago. Newcastle is a great example of how a city can reinvent itself after a major change in economic forces takes place. 
I found a dual occupancy site in a suburb that I didn't know much about, but it was close to where one of my project managers lived. I asked him what the area was like.  Whilst I won't repeat his entire response, it did include a reference to two heads! The name of this suburb also did nothing for its image.
Our thoughts or information we gather create perceptions. These perceptions that may not always be accurate and that are usually not fully reflective of the areas.  A perception is the way in which something is regarded, understood, or interpreted.
I've heard the saying "perception is reality".  As property investors, our research process needs to look past perceptions and drill down into facts. Perceptions can change over time.
Study the economic indicators of the towns and cities you are investing in. Look at labour force, household and business factors. 
Labour force includes employment, unemployment, sectoral shifts - this will tell you if the area is going through change, if the area is following the national trend or if a sector is rising or falling.  Look for diversity within the industries that are employing locally.
Knowing the unemployment rate and trend is important and compare it with the state and national figures.
Find out what industries are the biggest employers, look at the actual figures then compare it you with the perceptions. For instance  many assume mining would be one of the highest employers in the Hunter Region of NSW but it is ranked seventh, according to the Australian Bureau of Statistics' Monthly Labour Force Survey.
The number one employment segment is actually health care and social assistance.
This brings me to an interesting article I read about people being the drivers of our future economic growth. <a href="https://blog.id.com.au/2014/economy/people-the-new-drivers-of-economic-growth/" target="_blank">The article on .id</a> talks about: "Human Capital...the store of knowledge, skills, talents, experience, wisdom and intellectual attributes that we all contain in our heads."
"Sectors that rely heavily on human capital, as a means of production, are the emerging sources of jobs and growth in domestic product. Health care and social assistance, education and training, professional, scientific and technical services, finance and insurance services, and information media and telecommunications, now account for one in three jobs."
Looking at the list above, I crossed checked it with the highest ranked employers in the Hunter Region and two sectors; health care and social assistance and education and training were in the top five.  This was heartening.
With mining ranked seventh, I'm not letting perception get in the way of our property developments. I'm looking more to the new and expanding hospitals and retirement villages that have been recently been announced. Those nurses and doctors, staff and patients families are all going to need to live somewhere. 
<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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Property investors need to look beyond perceptions

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GUEST OBSERVATION
Market outlook: unchanged - neutral with negative bias
<ul>
<li>Attractiveness of renting as a preferred accommodation option continues (as at December 2014). </li>
<li>Purchase affordability is still very high but declining (as at December 2014). </li>
<li>Confidence in the economy is low but conditions are not deteriorating (as at November 2014). </li>
<li>Housing Credit Impulse points again to a strong demand for real estate (as at September 2014). </li>
<li>Prices are vulnerable at current levels, but can be sustained if flow of funds into the market continues (as at September 2014).</li>
</ul>
<h3>National Real Estate Price Forecast</h3>
The latest set of statistics paints a more positive picture than initial estimates and preliminary results indicated just a month ago.
In particular, we can see a small improvement in perception about the economy (but this is not yet reflected in the main indicator, only by a row measure), the actual demand for properties turned out to be much stronger than originally anticipated and there was a small but important lift in Property Price Gauge, indicating a notable increase in the flow of funds into the market.
The rebound in several indicators and the fact that prices are still very affordable, signal that the market remains relatively strong.
However, we will have to wait a few more months for confirmation if the rebound in the indicators is a sign of a return to fast paced growth in prices or just a late sprout of activity that will soon subside.
Without this confirmation, the overall outlook for the Australian property market remains at a neutral level and unchanged from previous month.
<h3>Detailed Analysis</h3>
#1 optimal accommodation choice: renting still the more favourable option
<img src="/images/2014/11/28/BRI_November2014.png" alt="">
The Buy-Rent Indicator (BRI) identifies how cost of buying is changing in relation to cost of renting.
The September 2014 BRI final value is higher than in previous quarter, confirming that buying costs are growing faster than rental costs. However, the first estimate of BRI for December 2014 quarter points to a likely reversal of this trend.
BRI is constructed based on the simple concept that renting and buying are substitute accommodation options; hence the optimal choice depends on which accommodation cost is rising in relation to the other.
The practical use of this indicator is for identifying market cycles and for timing purchase and sale decisions.
The BRI shows that renting is currently still a more attractive option than buying. The reversal of the direction of the indicator is a result of the recent slowdown in the growth of national property prices and hence, the slowdown in the growth of purchasing costs. At the same time, the rental costs continue to increase at a steady pace.
In a market where purchasing costs are rising primarily due to price increases, the optimal point for selling a property is when the indicator peaks and then starts to decline.
Based on the previous behaviour of this indicator, the peak of the current cycle is anticipated to happen before the end of 2016.
If the currently observed change in trend is confirmed in the next few months, it would indicate that the fast price growth phase of the cycle has ended. The December 2014 quarter will therefore mark the end of the “seller market” and the beginning of “buyer market” conditions.
#2 purchase affordability: at a historically high level but falling
<img src="/images/2014/11/28/PAI_November2014.png" alt="">
The Purchase Affordability Indicator (PAI) compares changes in the annual cost of buying to changes in average full time adult income; therefore, it identifies how purchase affordability has changed over time.
The December 2014 PAI estimate points to a continued, gradual decline of the indicator.
This indicator explains that, relative to incomes of Australians working full time, property prices are still very affordable.
Since the cost of buying a median priced property relative to average income is significantly lower than in the late 1980s, there is still a lot of room for prices to move before Australian real estate can be considered overvalued. 
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
#3 perceptions about economy: still negative
<img src="/images/2014/11/28/EWI_November2014.png" alt="">
The Economic Wellbeing Index (EWI) is designed to reflect general perceptions of Australians about the current economic conditions.
The EWI is falling since June 2013. The November 2014 preliminary value is in negative territory and continues trending downwards. The raw measure recorded a small rise for the second consecutive month.
The key premise behind this indicator is that people are generally less inclined to make big purchases when they are worried about the state of the economy.
The reversal of the raw measure in October and a small uptick in November 2014 are positive signs, giving hope that perception about the Australian economy has started to improve, or at least, that it is not deteriorating any further.
However, the overall outlook for the economy is still fairly negative and property prices cannot be expected to advance strongly in such an environment.
#4 demand: much stronger than indicated by original estimates
<img src="/images/2014/11/28/PHCI_November2014.png" alt="">
The Private Housing Credit Impulse (PHCI) provides an indication of the level of buyer activity in the residential property market in Australia, hence it reflects underlying demand for properties.
The September 2014 PHCI preliminary reading is much stronger than the last month’s estimate and this latest update did not confirm the previously reported reversal in the direction of the indicator. That is, the PHCI value has actually increased, not declined. However, the increase is very small.
The practical use of this indicator is to provide early warning about impending changes in housing credit uptake, and hence, changes in the underlying demand for residential property.
Housing credit data for September 2014 was very strong which impacted on the overall result for the quarter.
It implies that, after an initial slowdown in July and August, buyers have returned in force in the last month of the quarter. Therefore, the underlying demand for residential property is actually much stronger than initial estimates suggested.
Nevertheless, the increase in PHCI is only marginal which does not give confidence that this high level of demand can continue unabated beyond the December quarter.
#5 property price expectation: further growth possible but at risk
<img src="/images/2014/11/28/PPG_November2014.png" alt="">
The Property Prices Gauge (PPG) is a proxy of a property price index. It becomes a leading indicator when combined with House Price Index (HPI).
PPG increased slightly in September 2014, more than in the previous several months, but the indicator continues to lag well below HPI.
A noticeable increase in the value of the PPG points to a possible resumption of an upward trend after several months of relatively flat results. While it is a positive sign, there would need to be a much stronger upward movement in the indicator in the coming months to confirm that the flow of money into the market is substantial enough to support further growth in prices.
Otherwise, the previously experienced rate of price growth is not sustainable and prices will be vulnerable to a sudden halt at the current level.
Caveat - The information is provided in good faith and does not constitute financial advice. Use with caution and at own risk.
Background information - For more extended description of individual measures and how to apply this information please refer to the first report in this series: <a href="/expert-insights/buying/buying-more-advantageous-than-renting-yet-change-imminent-april-2014-state-of-the-market-analysis">State of the Property Market, April 2014</a>.
Arek Drozda is an independent property market analyst.
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Market set to tip in favour of buyers: November state of the market analysis

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Not all Victorian real estate agents support the Real Estate Institute of Victoria's (REIV) anti-Liberal push ahead of the Victorian election.
The REIV started taking shots at the government after the Liberal party proposed changes to commercial real estate licensing requirements.
REIV president Enzo Raimondo <a href="/expert-insights/buying/victorias-proposed-commercial-licensing-changes-q-a-with-the-reivs-enzo-raimondo">told Property Observer </a>the changes would "open the industry up to unqualified and inexperienced operators - and potentially criminals - because there will be no probity checks, and the operators will not be required to maintain an audited trust account or comply with the requirements of the estate agents act".
Since then, the Victorian Coalition has announced it will step up laws against underquoting, a practice where agents deliberately misrepresent the price of a property before an auction to bait buyers. Raimondo labelled the proposal an "election stunt".
<a href="https://www.propertyobserver.com.au/https://twitter.com/IainCarmichael1/status/537715177836134400" target="_blank"><img src="/images/2014/11/27/tweet-nov-27-one.png" alt=""></a>
The REIV's anti-Napthine campaign, which includes print and radio advertisements, has resulted in a dispute with the Council of Small Business Australia, who claim the use of their <a href="/news/vic/reiv-locked-in-dispute-with-small-business-body-over-victorian-election-advertising">logo on the REIV's advertisements</a> is unauthorised.
Jellis Craig director Iain Carmichael is among those critical of the REIV's election lobbying tactics.
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Tweet of the day: REIV's anti-Liberal campaign "reckless"

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Around two thirds of Australians aren't in a truly competitive home loan, according to founder and director of <a href="https://www.ipac.com.au/" target="_blank">ipac</a>, Paul Clitheroe.
"Right now there are loans out there for a bout 4.55-4.6%. Most Australians are still  paying 5.2-5.3%," Clitheroe says.
"I just don't get it."
In this video he explains how you can save thousands of dollars by shopping around for your home loan.
{qtube vid:=xbnzMQ7pGXY}
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