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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Sales have been strong at the Cronulla Sharks' masterplan development of 600 apartments at Woolooware Bay.
Some 40 of the 50 apartments offered in The Pier sold on or before last Saturday's launch.
Prices started at $535,000 for the mix of one, two- and three bedroom waterfront apartments.
It took the total value of sales in the development to more than $32 million.
The Pier is the latest waterfront building within the Woolooware Bay project.
Sales were brought forward by around 12 months following stronger than expected sales of the first two stages where more than 400 apartments have sold.
Woolooware Bay is proving popular with Sutherland Shire locals, who have made up 95% of the buyers.  
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jchancellor-FAypfDUnLy

Woolooware Bay apartment sales schedule brought forward

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GUEST OBSERVATION
Back in 2010 we received an enquiry about the real estate auction method in NSW and the sharp, deceptive practices that are sometimes used to enforce a contract.
A consumer buyer, whom we spoke to, believed they were induced to enter into a contract at auction by misleading and deceptive conduct and was considering a civil action against the agent and vendor involved. After listening to their concerns we decided to invest some time into completing a legal study of the real estate auction method, while obtaining some powerful legal advice along the way to substantiate the findings.
This is what we found.
The Statute of Frauds, is an Act passed in England in 1677. What has this got to do with modern-day Australia? Well, back in the 17th century, the law of contract was beginning to take shape. In particular it was becoming possible to enforce executory (future) promises.
The law of evidence, however, was still back in the dark ages. It did not allow anyone to give evidence to support their own case. It was possible to prove a case by simply getting 12 of your mates to come along and swear, for example, that so and so made a promise to pay some money.
This laid the way open to make fraudulent claims by simply getting others to commit perjury on your behalf. The answer was provided by the Statute of Frauds which stipulated that certain contracts had to be evidenced in writing. Not all contracts – only a limited class of contracts.
To this day, the same statutory provision, re-enacted (or even still applying in their own right in NT and WA) in the states and ACT, governs at least contracts involving interests in land and one or two other contracts. Still, to this day, the legislation is referred to generally as the Statute of Frauds.
The Statute of Frauds has, it must be said, got a bad smell about it. It can be used as a technical defence to a contract claim. That is, it enables someone who has committed himself or herself to a contract to simply wriggle out of it on the basis that there is not a sufficient writing to satisfy the legislation.
There is no merit, no plausible or understandable excuse for not performing; only a fortuitous, technical defence which would only be apparent to the person after they have talked to their lawyer.
The Statute of Frauds is invoked by a defendant in a breach of contract action. If the defendant can establish that the contract he has failed to perform is legally unenforceable because it has not satisfied the requirement of the statute, then the defendant cannot be liable for its breach.
For example, suppose that a plaintiff claims that a defendant agreed to pay her a commission for selling his building. If the defendant can demonstrate that no commission contract was signed, the statute of frauds will prevent the plaintiff from recovering the commission.
The legal advice we received, would be of interest to many auctioneers’ in NSW and other states in Australia. But firstly we need to establish that a bid is, in effect, an offer of a price for the property being sold, and the fall of the auctioneer’s hammer the acceptance.
Once the auctioneer’s hammer has fallen, the auctioneer has by implication the authority of the highest bidder to sign any memorandum on the bidder’s behalf embodying the conditions of the sale, such memorandum being sufficient to satisfy the requirements of the Statute of Frauds and the Sales of Good Act.
However, if a successful bidder for certain land at an auction sale refused to sign a written sale agreement, it would be difficult to enforce specific performance of an agreement to purchase the property under the Statute of Frauds. This is due to there being no expressed authority under auction laws in NSW and on the bidder’s register, which permits the auctioneer at the fall of the hammer to sign any memorandum or contract of sale on the bidder’s behalf.  
Although, in the old case of Phillips vs. Butler [1945], where a successful bidder declined to sign a contract for the sale of land at the conclusion of an auction, a judge ruled there was an irrevocable authority to sign the contract, due to evidence proving that both parties had finalised a contract and specific performance of the contract in this case was required.
However, this ruling to some may seem straightforward on its face, but not quite.
The auctioneer’s authority to sign on the purchaser’s and, if necessary, the vendor’s behalf is only an irrevocable authority once the contract is final and both parties have agreed to be legally bound.
Further to this, under contract law, for an agreement to be regarded as a contract, it must contain four essential ingredients: if any one of them is absent the agreement will not be legally binding.
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
One of the essential ingredients of a contract is the ‘Intention of legal consequences’. The parties to the agreement must understand that the agreement can be enforced by law. For a contract to be binding, it does not have to expressly state that you understand and intend legal consequences to follow.
For commercial contracts your intentions are presumed, for example, to be legally bound. The parties to a contract can decide not to be legally bound by the agreement – this must be clearly stated and is then an agreement that is not legally enforceable.
In NSW under the standard contract for sale of land the following warning statement is located on page 3 of the contract:
“IMPORTANT NOTICE TO VENDORS AND PURCHASERS
“Before signing this contract, you should ensure that you understand your rights and obligations, some of which are not written in this contract but implied by law.”
This provision of the contract gives each party more freedom to further negotiate the terms of the contract before deciding to be legally bound. The negotiation stage of a contract would likely challenge and override the irrevocable authority to sign after the fall of the hammer.
Furthermore, the principles of contract law require that consideration be given for the contract to be valid. Consideration means that something of value for example a deposit was given to the vendor by the purchaser.
Under auction conditions in NSW, it doesn’t state that all bids must be unconditional and at the fall of the hammer is forming of the contract. Surprisingly, there is such a thing called conditional bidding and this is permissible at auctions in NSW and in the other states as well. It is advised that such information be disclosed to bidders prior to commencement of the auction; this not only will prevent allegations of mismanagement and fraud, but should also come as a timely reminder, that a successful bidder is not always a true unconditional bidder.
All estate agents should be aware, that all financial institutions have never operated in line with real estate auction conditions, therefore, any winning bidder who is still subject to a loan doc approval with the bank, should be given the courtesy and respect of their offer being made subject to finance.
In other words, if the winning bidder was restrained from signing the contract under auction conditions, due to unavoidable circumstances relating to finance approval, the contract of sale, should therefore be entered into under private treaty conditions and not under the traditional auction conditions. The contract would need to include also, a seller’s warning statement and remain on the market until such time the contract is unconditional.
National Unfair Contract Terms Laws (part of the Australian Consumer Law)
One of the most significant reforms for New South Wales businesses and consumers are the provisions addressing the use of unfair contract terms in standard form consumer contracts, contained in Part 2-3 of the Australian Consumer Law (commenced on 1 July 2010 at the Commonwealth level.
This law has the potential to create a basis for a significant amount of litigation. The definition of ‘unfair’ adopted in Part 2-3 may cause uncertainty over the enforceability of contract terms which favour one party over another, providing all consumers additional grounds upon which to challenge and potentially avoid their contractual obligations.
While there have not yet been any instances of enforcement of the national unfair contract terms law, publications released by the ACCC give some indication as to what will be considered to be an ‘unfair term’ under these provisions.
A term of a consumer contract will be void if:
<ul>
<li>The term is unfair; and</li>
<li>It is a standard form contract.</li>
</ul>
A consumer contract is defined as a contract for the supply of goods or services or a sale or grant of an interest in land to an individual whose acquisition of the goods, services or interest is wholly or predominantly for personal, domestic or household use or consumption.
For example, a buyer acquiring an off the plan apartment for investment purposes will not be a ‘consumer’ because of their reasons for buying. However, if it is for their own occupation the buyer will be a ‘consumer’.
The test for unfairness, under Sch 2, s. 24(1) of the Act and s. 12BG of the ASIC Act, states that a term of a consumer contract is unfair if it:
<ul>
<li>Would cause a significant imbalance in the parties’ rights and obligations arising under the contract and</li>
<li>Is not reasonably necessary to protect the legitimate interests of the party who would be advantaged by the term and</li>
<li>Would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.</li>
</ul>
All three limbs of the unfairness test must be proven, on the balance of probabilities, to exist for a court to decide that a term is unfair.
In light of the unfair contract law, businesses should prepare themselves and adjust the way in which they deal with individual consumers in the following ways:
<ol>
<li>Be aware and take note of whether a consumer is purchasing for investment purposes or for their own personal use;</li>
<li>Be willing to negotiate the terms of the contract with the consumer and keep detailed records of any negotiations;</li>
<li>Obtain an acknowledgement from the consumer that they are aware of and understand any terms  in the contract which may be seen to favour one party over another; and</li>
<li>Have your standard form consumer contracts reviewed to ensure that their terms are not at risk of being voided for being ‘unfair’.</li>
</ol>
Finally, the law in NSW requires that an agent must also; act honestly, fairly and professionally with all parties in a transaction. An agent must not mislead or deceive any parties in negotiations or a transaction.
Silent Auction – The Alternative Method
<a href="https://www.wikihow.com/Run-a-Silent-Auction" target="_blank">Silent auctions</a> are auctions held without an auctioneer. People place their bids on sheets of paper instead. They're often used by charities to raise money, but actually can be a useful method in real estate.
When there are multiple buyers under Private Treaty - converting to either a “Sale by Tender method (where buyers get one opportunity to put forward their most competitive offer and once the vendor makes their final decision on a specified time and date, the decision is announced) or “Silent Auction Method” makes perfect sense to avoid engaging in misleading and deceptive conduct.
As previously mentioned, the auction is "silent" in that there is no auctioneer selling the property and bids are written on a sheet of paper. After each pre-determined round, the agent announces the highest bidder. Bids continue to escalate in subsequent rounds. At the end of the final round, the highest registered bidder is the purchaser.
There are variations to silent auctions which may include sealed bids. The highest bidder pays the price he or she submitted. However, the capability of inducing bidders into error or refusing to disclose any competing bid relevant to the decision of the other party, would likely lead to an allegation of misleading and deceptive conduct. All agents must engage in full disclosure, but set pre-determine bidding increments at the start, to avoid non - genuine bidding on the day.
It is important to point out under the standard sales agency agreement, that services detailed in the agreement can be varied providing it is in writing and signed by both parties. Furthermore, the definition of an "auction" under the Property Stock and Business Agents Act 2002 refers to the person who claims the property submitted for sale at a certain price is named by the person acting as auctioneer. As with silent auctions there is no auctioneer. This gives real estate agency businesses the flexibility to draft terms and conditions that are not based on the unnecessary and unproductive rules of public auctions – only laws applicable to contract law and consumer law.
In closing the purpose of this article is to alert all agents, with intention of preventing any future allegations and claims of fraudulent misrepresentation in tort, when facilitating the sale of a property at auction.
Article continues on the ext page. Please click belown.
<hr class="system-pagebreak">
A RECENT COURT RULING:
Auctions — Did residential property bidder engage in misleading and deceptive conduct? (Carter &amp; Anor v Delgrove Holdings Pty Ltd &amp; Anor[2 September 2013] FCCA 783.)
This is an interesting decision from the Federal Circuit Court of Australia for its consideration of when the provisions of the Australian Consumer Law will apply to the sale of residential property.
Facts
The respondents were engaged in the business of property acquisitions for the purposes of deriving rental income. The first respondent was a company which was the trustee of a family trust and the second respondent was a director of the first respondent and a beneficiary of the family trust.
The second respondent attended the auction of the vendor applicants’ home in Western Australia. During the course of the auction, he placed a bid for $3.6 million. He was the only genuine bidder at the auction.
As the reserve price had not been met, the auctioneer suspended the auction to consult with the vendor. After gaining approval to sell at $3.6 million, the auctioneer recommenced the auction, inviting further bids. There were no further bids. The property was then knocked down to the second respondent. However, after the other potential bidders had left the property, he refused to sign the contract or pay the requested deposit asserting that he no longer wanted to buy the property.
When the respondents refused attempts at settlement, the property was placed upon the market again. Additional costs were incurred in respect of the marketing of the property. The property did not sell.
The vendor brought an application against the respondents for (inter alia) damages for misleading or deceptive conduct under s 18 of the Australian Consumer Law (ACL).
Section 18 of the ACL provides that “A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive”.
The respondents countered that the matter involved the sale of a private house without any business character and was not conduct in trade or commerce for the purposes of the ACL.
Decision
The court held that the s 18 misleading and deceptive conduct provision did apply even though the matter involved the sale of a private house without any business character.
It sufficed that the respondents were engaged in commercial activity (acquiring properties to rent out). However, despite the finding that s 18 applied, no damages were awarded because the vendor could not demonstrate that the loss incurred resulted from the respondents’ conduct.
George Rousos is director and training Consultant with <a href="https://www.itc.nsw.edu.au/" target="_blank">Industry Training Consultants</a>.
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GeorgeRousos-zguir4Lyg6

How the auction system is being derailed by contract and consumer laws

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The 1852 colonial homestead, Westbank at Sydney's Emy Plains has been listed for sale with offers sought above $1.78 million.
The property at 2-6 Nepean Street is marketed as "<a href="https://www.dukesestateagents.com.au/buying/NSW/Western-Sydney/Emu-Plains/House/1P1110" target="_blank">arguably one of Sydney's premier historical properties</a>".
Sandstone walls, exposed beams, pressed metal ceilings and stained glass inlays accompany its 12-foot ceilings. 
The purpose-built ground floor rooms can be used for commercial purposes.
Set on 2,268 square metres close to the Nepean River, Westbank has been listed by Craig Caughlan and Paul Dukes at Dukes Estate Agents.
The former farm cottage was originally on a larger parcel of land with orchard which extended to the Nepean River.
In recent years the property has been developed with additions at the rear.
{qtube vid:=dGFV7tGhrAo}
It has been listed by the gynaecologist Dr Roger McMaster-Fay, and his wife Gwen who paid $700,000 in the mid-1990s.
It was once the home of silent film actor Will Carter.
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Westbank the 1852 Emu Plains colonial listing

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Four new members have joined the board for property valuation group Herron Todd White.
Sheena Wilson, Graham Waters, Jeff Forbes and Graham Gross have been appointed to the board.
Wilson has previous worked at the Bank of New York Mellon, including a three year period as country chief executive for BNY Mellon India.
Waters, the managing director of Herron Todd White Sydney, returns to the board. Having been with the company for 15 years, he is also a founding director of the South East New South Wales and Canberra arms of Herron Todd White.
Gross has worked at Herron Todd White for 20 years and also returns to the board. He is the managing director of the company's Central Queensland group.
Forbes is the former chief financial officer, executive director and company secretary of Cardno Limited and has held chief financial officer positions at ASX listed companies.
Chairman Gavin Hulcombe said he was delighted to welcome the new members to the Herron Todd White board.
"The experience and capabilities they will bring to the table will be a real benefit to our organisation," said Hulcombe.
"At Herron Todd White we strive to be the most respected and trusted property advisory organisation in the country. I look forward to the positive contributions they will make to our business as well as our customer and community standing," he said.
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jrichardson-uRX5hFdKfN

New board members for Herron Todd White

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With double digit annual price growth in Sydney, some wonder whether we risk a spectacular end to this year's stellar price growth. Is Australia's property market caught in a bubble?
Earlier this year, US forecaster Harry Dent predicted the <a href="/news/property-crash-is-like-popping-popcorn-especially-in-melbourne-harry-dent">Melbourne property market</a> would eventually crash, saying: "Melbourne has been, actually, the biggest bubble in recent years and I would expect the biggest burst there." Melbourne wasn't alone – he also took aim at Sydney, Perth and Brisbane, apparently spotting a bubble in each city.
Our big banks are a good deal more skeptical about the presence of a bubble, though earlier this week, <a href="/expert-insights/buying/no-bubble-but-there-is-a-platform-for-one-to-develop-anz-s-warren-hogan">ANZ's Warren Hogan</a> said while we don't currently have a property bubble, "we have the platform to form a bubble in the next few years".
Though many doubt Australia is currently experiencing a bubble, the prospect of a sudden fall in home values have some nervous.
Property Observer took the question to the experts: What are the signs of a bubble?
Shane Oliver - AMP Capital head of investment strategy and chief economist <img src="/images/2014/09/11/shane-oliver-profile.jpg" alt="" style="float: right;">
The first one is the price gains themselves – if they've been rising rapidly for a lengthy period and they've diverged from underlying income levels or rents. In other words, the market's become overvalued. So rapid momentum in price growth and overvalued prices.
Another is a rapid rise in debt financing. Usually that comes with low interest rates, but when credit growth is running at double digit rates it's often a concern.
The last one is popular interest: everyone's talking about housing prices at dinner parties and every show on television is about property.
In Australia, lots of the markets get the tick in terms of overvaluation. That's why a lot of commentators have said a bubble is about to burst and that we should get ready for a 40% price decline, which just hasn't happened.
The issue is complicated by our undersupply of property, which keeps underlying demand going. We've got a bit more supply coming, but that's mostly units in certain capital cities. I would still give the "overvalue" criteria a tick.
Momentum is excessive in Sydney and there's no doubt about that. It might get a half tick in Melbourne. The other capital city markets? There's no sign of a bubble in any of them.
Credit growth has been quite modest in the past. I suppose what bothers me is credit growth at 10% for investors, although it's not near the 30% growth we were seeing a decade ago. So that gets half a tick.
Popular interest gets half a tick. People are certainly talking about property prices in Sydney, but in Hobart nobody's that excited about the market. You find the same thing in Brisbane and Adelaide – people there are bit skeptical of all the bubble talk.
So there are some signs of bubble – overall it's a bit "bubbly". Nationwide, I'm not prepared to say it's a bubble just yet.
Louis Christopher - <a href="https://www.sqmresearch.com.au/" target="_blank">SQM Research </a>managing director <img src="/images/authors/fullbody/Louis-Christopher.png" alt="" style="float: right;">
Massive speculation; sales prices going beyond fundamental valuations. Excessive and accelerated debt levels – so a massive debt boom is usually going on at the same time as well. These are normally the signals of what will be regarded as a bubble.
The problem is that sometimes you can have a recovery in the market, and it's just a normal part of the cycle, and it could be mistaken for a bubble, or vice versa.
So often it's very difficult to make a judgment until after the event.
At the Australian level, we're not seeing a bubble.
Number one, the market's not rapidly accelerating everywhere, just in very few areas – namely Sydney.
So what's going on with the Sydney market? Is it in a bubble? The answer is – we think – no. We can see a market which is still going into overvalued territory – but is it a massively overvalued? Compared to previous cyclical upticks, no.
2003 was a very dangerous time in Sydney and the fundamentals went way out of whack. It's not surprising that for the next few years it underperformed.
This recovery should be seen in the context of the last few years' performance. While we do believe a market has been moving into overvalued territory, we don't think it's enough to cause a massive overcorrection.
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Margaret Lomas - Author, television host and <a href="https://destiny.com.au/dotnetnuke/en-au/home.aspx" target="_blank">Destiny Financial Solutions</a> founder<img src="/images/authors/fullbody/Margaret-Lomas3.png" alt="" style="float: right;"> 
Property is considered to be in a bubble when rapid increases in the price of real property in a local area, country or even globally reaches unsustainable levels relative to incomes and rents, and then decline.  The degree of decline indicates whether the market simply stabilises, or bursts.
A property 'bubble' is not necessarily an indicator that a burst is imminent and many markets boom and then stabilise, rather than boom then crash.
As for the question being asked by everyone at present: "Are we in a property bubble?" Let's remember that this white hot market exists, at present, only in Sydney. Broadly speaking, Sydney came off a 9 year period of stable prices in 2012, making the measurement over the past 10 years (the common period that property price growth is measured) a very different picture indeed.
In addition, this situation of fast moving price growth isn't reflected as noticeably in other Australian markets, which comprise more than 80% of all dwellings.
More importantly, when considering the bubble question, it is to be noted that while housing has increased in price, many other common, every-day items, which comprise the cost of living, have dramatically decreased relative to incomes. 
While it may be true that the average home appears to cost seven times the average income today as opposed to three and four from many years ago, the proportion of disposable income available to the average person to spend on mortgage repayments has considerably increased.
In addition, homes today are larger and more luxurious than they were 30 years ago, providing more home for the additional price paid.
Andrew Wilson - <a href="https://www.domain.com.au/" target="_blank">Domain</a> Group senior economist <img src="/images/authors/fullbody/Andrew-Wilson.png" alt="" style="float: right;">
I do think that a bubble is a little hard to spot, but we do have a few that are operating at the moment.
The classic examples are the markets of Gladstone and Mackay. We spot a property bubble really when we get a strong buyer interest or strong supply in a short period of time. That's what happened in those markets.
It wasn't just small investors that rushed in. It was followed up by developers under projections there would be strong demand in the areas, due to mining.
Prices got so high that optional alternative accommodation was sought by those who were there, the majority of whom were Fly In Fly Out workers. And the bottom hasn't been found in that market yet.
If we look at the cycle, when a bubble bursts we clearly see the market falling below its previous trough.
Gladstone prices went from $300,000 to $700,000 and back down again. When it returns to $350,000 people will start to think it's gone back to its fundamental values.
Classically, a bubble occurs when we see a rapid increase in prices and rents, particularly if there is optional accommodation available, and people will turn to that.
We've never had a bubble burst in this country in the capital city markets.
We may see falling prices in some of those mining towns, but in larger markets where there's diversity in the economy, we tend to just see an orderly correction phase.
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Robert Simeon - <a href="https://www.rwm.com.au/" target="_blank">Richardson Wrench Mosman and Neutral Bay</a> director<img src="/images/authors/fullbody/simeon-new-profile33444.png" alt="" style="float: right;">
The term 'bubble' is without a doubt the most misconstrued term today that clouds the Australian residential real estate markets.
All along I have said (as others too have said) that there is no such thing. What makes up this so called bubble? In short, nobody was able to explain what metrics determine this imaginary term used to paint the real estate markets.
When I go to Wikipedia and search "Real estate bubble": "A real estate bubble or property bubble (or housing bubble)that occurs periodically in local or global real estate markets. It can be identified through rapid increases in valuations of real property such as housing until they reach unsustainable levels and then decline."
The point that needs to be made is that bubbles happen much more frequently than booms and only after a significant boom do we then see property prices in a free-fall, given next we enter a recession.
The last boom Sydney experienced was back in the late 1980's where prices doubled and in some cases even trebled. That was then followed by "the recession we had to have" in the early 1990s.
Of course we have seen many bubbles since then for example: in 2004, 2007 and recently in 2012/13 although the present bubble is being driven by overseas investors and local investors. It also should be noted that this does not include your average households, although it is inferred that they, too, are playing a significant part in this 'bubble'.
They say "if you want to make a mountain out a molehill, add dirt" – and that's exactly what's happening in the Australian residential real estate markets. An over reliance of using median price indexes skews the results to create unrealistic market data interpretations, given top-end sales will always do this to median prices.
Sydney has approximately 700 suburbs and only when you break them down individually one quickly draws the conclusion: nothing happening here, move on.
Booms cause massive economic destruction (as history has shown) the only problem is that the vast majority of commentators were not around when Sydney experienced its last boom. Cue the confusion about bubbles.
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Exclusive: What are the signs of a property bubble? Property Observer asks the experts

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The Malaysian developer UEM Sunrise ­has secured a virtual off the plan sellout of its a highrise ­residential tower, the 92-storey Aurora Melbourne Central.
It is the ­developer’s <a href="https://aurora-melbourne.com.au" target="_blank">first Australian project</a>, being managed by<a href="https://www.pdsgroup.com.au/projects/aurora-melbourne-central/" target="_blank"> PDS Group</a>. 
The developer has sold 895 apartments of the 941 apartments - mostly through its sale ­networks in south-east Asia and China over the past fortnight.
Local buyers account for 25% of the apartments sold through Colliers.
Around 60% of buyers are investors attracted both by ­Melbourne’s reputation as the world’s most liveable city and its relatively low prices by international standards.
Some 22% of the Aurora Melbourne Central apartments, priced between $395,000 and $1.1 million, were bought by Malaysians, 25% were purchased by Australians, 15% by Singaporeans and the remaining 38% by Hong Kong and Chinese investors.
The project is slated to be completed by 2019, once works start in March or April next year.
“As a benchmark in Australasia, Melbourne core CBD prices are on par with KL, 50% cheaper than Sydney, 200% cheaper than ­Singapore, 350% cheaper than Hong Kong, and a staggering 550% cheaper than London,” Raymond Cheah, director of UEM Sunrise’s Australian subsidiary, said.
He described the sellout as “breathtaking”.
The $730 million project will rise in the heart of the Melbourne CBD, on La Trobe Street near the State Library and RMIT University.
Listed on the Malaysian stock exchange, UEM Sunrise is a subsidiary of the UEM conglomerate, which is owned by Malaysian sovereign fund Khazanah Nasional.
The developer has another property project in Melbourne, a 0.4 hectare site on Mackenzie Street which was bought for $65 million.
The project on Mackenzie Street known as The Conservatory will be unveiled by June next year.
The company wants to build more properties in Australia to ride on the expanding economy and population growth in Melbourne and Sydney.
"We are zooming in on a few sites," Cheah said.
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75% foreign buyers in UEM's 92 storey Aurora Melbourne Central near sell-out

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New home building in NSW is tipped to top the 50,000 in 2015, according to a report from the Housing Industry Association (HIA).
The predictions, in the spring 2014 edition of the HIA’s New South Wales Outlook, come off the back of a strong 2014, where dwelling commencements are expected to have increased by 9.5%, following a 31.7% rise in 2013. The HIA says a further growth of 4.5% is expected in 2015, bringing commencements up to 50,800.
“We have been pleasantly surprised by the performance of new home building in NSW, with activity on track to exceed initial expectation over the next 12 months,” said HIA executive director, NSW, David Bare.
“NSW’s $7.9 billion home renovations market is likely to reap the rewards of robust dwelling price growth and record low interest rates.
“Activity on this side of the market has fallen steadily over the past decade but the recovery currently underway is likely to lift activity by a cumulative 25 percent or so.”
Home renovations in the state are also expected to increase in 2014 and 2015 by 8% and 3.9%, respectively. In two years the HIA believes home renovation to reach $8.43 billion.
Bare says that despite the improved levels of new home building, the NSW government still needs to open up more land for residential use and create a simpler planning regime. 
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NSW tipped to top 50,000 new home starts in 2015

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A Western Australian property manager, Van Dung Nguyen, formerly of Girrawheen, Perth, has been banned from holding a real estate and business agents’ licence, as well as a triennial certificate, for five years. He was also fined $3,000.
Nguyen failed to deposit rental income into a trust account, receiving $13,660 from a tenant for rent, water rates, strata levies and management fees between January 2012 and October 2012, which he then used to pay personal expenses and unrelated business expenses.
He operated Golden Investments Pty Ltd, which is now deregistered. The owner of the Girrawheen properties was left out of pocket.
Nguyen filed for bankruptcy in September 2013 and now lives in Queensland.
The fine was decided at the Western Australian State Administrative Tribunal on 20 November 2014.
Commissioner for Consumer Protection Anne Driscoll said that income from rental properties needed to be kept separate to the operational account.
“The law requires that rent and other payments from tenants must be placed in a separate trust account so that the transactions are transparent and the funds cannot be mixed with the day to day financial operations of the agency,” Driscoll said.
“This allows for easy auditing and gives both the tenant and property owner confidence to know that their funds are being used appropriately.”
She noted that real estate agents who take money from the trust accounts, even on a borrowing basis, to pay operation expenses are breaking the law.
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Perth property manager banned for five years after using rent for personal expenses

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Hi Margaret,
I am going to sell my family home and move into a new home.
But it's taking time to sell, so I wanted to take my first home off the market for a while and move into the new one, then sell at a later date. 
I won’t rent out my former home, so will I avoid CGT? 
Kind regards,
Andrea
Hi Andrea,
Capital gains tax (CGT) is one of the most misunderstood concepts in property investing, but in reality it’s quite simple.
CGT is not about whether you rent out a property or not, and many assets attract CGT even though they don’t produce income for you. When it comes to CGT on your family home, it is all about which property you intend to claim as your principal place of residence (PPOR), and you can only claim one. Any other property you own, regardless of if it is rented out or not, will accrue CGT. The value that becomes the cost base upon which the gain is calculated will depend on a host of things, from when it was purchased through to when it ceased being your principal place of residence exemption.
You can move out of your  PPOR for up to six years and still maintain an exemption on it, as long as you don’t have another property for which you claim that exemption. This allows home owners to be relocated for work, or move out and rent for a time, without CGT accruing. Remember that if you buy another property in that time, you must nominate one as your PPOR, and your intention for the nominated property is that it must be genuinely a home you have intention to reside in.
You are allowed a six-month overlap, however, so that you have time to move and set up a new principal place of residence.  Be very careful on this one, though – if you go over the six months  by even one day you may end up paying some CGT on the family home, calculated in most cases on the change in value form the day you moved out until the day it sells. This might be OK if the value has not increased since you moved out, but if there has been any type of value increase since you left it, you could be up for some tax.
Try not to be too alarmed – remember  CGT is incurred on only half the gain (as long as it has been held as an asset over 12 months) and although it is tacked on to the top of your other income and calculated at your highest marginal rate of tax, this may be a fairly small amount after all.
Have a property question? <a href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
This article was first published on Property Observer in February 2013.
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mlomas-KC9MUPZ6Ca

Can I avoid CGT when I sell my home? Ask Margaret

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What are your buying choices in the run up to Christmas? It might seem there is no choice other than to go to auction and be slaughtered. This is not the case.
Last Saturday we did not buy one home, no, not one home at auction. I think it’s our first blank canvas for the year, although we went close on 25 October. Would have been happy to buy a few, as some of the homes on offer were first rate. However, for some we didn’t have enough to start and for others at some point you have to recommend to your clients that PRICE is part of the good buying PPP equation (price, property and position). Price and value (different concepts) are about your needs (true), but they are also about alternatives. And right now that is very relevant.
In the run to Christmas 2014, buyers need to be smart about the opportunities presented to them. Of course if it’s a great home, you have no alternatives and you really, really want it; then you have to pay the piper and compete at auction. But smart buyers are looking for (and finding) alternatives in this current auction dominating market.
Underquoting/Step Quoting – back in the news
Some salient points:
<ol>
<li>You have a Consumer Affairs regulator that consistently says there is no problem. 
</li>
<li>You have an election happening and what do politicians do when elections are happening? 
</li>
<li>You have a real estate industry that generally believes in getting as many buyers as it can to a home rather than trying to communicate. 
</li>
<li>You have a market that is flying, meaning that many times it is not underquoting, but the market that is dictating the gap between quote and result. 
</li>
<li>You have buyers that don’t get professional help when spending the amount of money they do and they really should, especially if the same ‘bad’ things keep happening to them. 
</li>
<li>Quoting is not just about buyers, it is also about the rights of sellers. In strong markets, like we are in now, it would be grossly unfair to expect a seller to have a tight reserve range at the start of an auction campaign. Legislation requiring this to happen would, in our mind, be impractical and unfair on the seller.</li>
</ol>
For the Record
<ul>
<li>
If an agent quotes $1 million in the final week of the campaign, then passes it in and says the reserve is $1.3 million, then that is underquoting and it is illegal. We feel the agents or the seller (if it was their instruction) should be prosecuted in court, if this is systemic within an agency. We do not approve of this. 
</li>
<li>
If an agent quotes $1 million, updates openly, and a week later the quote is $1.1 million. Then another week later is $1.2 million and then says the reserve is $1.3 million on the day; then that may be sharp practice, but not necessarily illegal. This is step quoting, not underquoting, and we can see both sides of the argument – especially in a rising and/or strong market. A buyer who comes in the first week of a campaign, gets a quote and then turns up to auction three weeks later with no other agent contact, expecting the result to fall within the initial quote range; is, in this market, unreasonable and naive. 
</li>
<li>
If an agent quotes $1.3 million and passes it in at $1.3 million and all buyers think it is worth $1 million, then that is not necessarily misquoting, it may just be a sign that we live in a free country (the seller can ask whatever he or she likes). 
</li>
<li>If an agent quotes $1 million and puts it on the market at $1.1 million and it sells under the hammer at $1.3 million, then that is the market and good agent work – which we approve of. We recognise that the agents have been ethical and have worked well for the vendor. </li>
<li>If an agent is responsive to the market, open in their communication and amends and updates the quote to $1.2 million to $1.3 million in the week of the auction and it sells at $1.28 million and the agent does this regularly, then that is the sign of an ethical, professional and competent quoter. You should engage the agent if you are a seller and respect them if you are a buyer. This is the agent that in the long run gets the best (money and deal) results for the sellers. </li>
<li>If an agent achieves the previous scenario eight times out of 10, then even on the two out of 10 times the agent gets it “wrong” they are still being ethical and professional if they are sincere in their attempts to communicate to the market.</li>
</ul>
Quoting perfection (100 out of 100) is not possible – as ethical and professional buyer advocates we cannot give 100 out of 100 price estimating perfection to our clients in a shifting market. This is not to excuse the serial underquoters incompetent or criminal behaviour; this is to explain to the public that professional, accurate agent quoting is about intent rather than perfection.
The real estate industry has many genuine and competent selling agents, but there is still an underlying mentality to get all buyers to a home rather than communicate.
In conclusion and to be clear, we at James Buyer Advocates think agent quoting is actually very simple, irrespective of the individual situations or the market.
It is all about intent. Is the agent trying to deceive or to inform?
For more information read our much repeated article <a href="/expert-insights/investing/a-smart-buyers-guide-to-step-quoting">explaining step and underquoting</a> written a number of years ago.
The headline has been updated since initial publication.
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