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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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A ground floor 56-square-metre Darlinghurst unit fetched $650,000 ahead of its recent auction.
With high ceilings and ornate cornices, the 2/265 Palmer Street offering had initial $580,000 plus hopes.
It was at the cheaper end of Darlinghurst's median price for two bedroom units.
The classic art deco apartment is tenanted for $655 a week until early 2015, so <a href="https://www.realestate.com.au/property-apartment-nsw-darlinghurst-118033331" target="_blank">the BresicWhitney sale </a>reflected a 5.2% yield.
The stone kitchen has stainless steel Smeg appliances and the updated bathroom has travertine floors. 
The master bedroom has plantation shutters and a good-sized balcony leads off the lounge. 
Its levies were $1,152 per quarter.
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jchancellor-FAypfDUnLy

Darlinghurst two bedder sale reflected 5.2% rental yield

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Earlier this month the Australian Bureau of Statistics (ABS) released its quarterly Consumer Price Index (CPI) or inflation figures.  
The data showed that over the September 2014 quarter, inflation was recorded at 0.5% and over the 12 months to September 2014 it was recorded at 2.3%.  The Reserve Bank has a target range for annual inflation of 2% to 3% and inflation is currently at the lower end of this range. 
It is important to note that inflation appears to be slowing, recorded at an annualised rate of just 1.8% over the past six months.
<img class="aligncenter size-full wp-image-3916" src="https://blog.rpdata.com/wp-content/uploads/2014/10/Chart-11.jpg" alt="Chart 1" width="500" height="180">
With the release of CPI data we can also get a picture of what is happening with home values when adjusted for the effects of inflation. 
Over the 12 months to September 2014, combined capital city home values have increased by 9.3% in nominal terms according to the RP Data CoreLogic Home Value Index, in ‘real’ terms home values have risen by 6.8% over the past 12 months. 
The impact of inflation is important to consider, as you will note from the above chart.  For example in nominal terms home values recorded no annualised falls from September 1998 until December 2008. 
In real terms, values were falling from December 2004 to December 2005.  Of course when you adjust for inflation, real growth in home values is more moderate than in nominal terms.
<img class="aligncenter size-full wp-image-3917" src="https://blog.rpdata.com/wp-content/uploads/2014/10/Chart-21.jpg" alt="Chart 2" width="500" height="180">
Across the combined capital cities, home values have increased by 9.3% over the past year, 3.8% per annum over the past five years, 4.7% per annum over the past decade and 7.4% per annum over the past 15 years in nominal terms. 
Adjusting for inflation shows that real gains have been significantly lower.  Over the past year real capital city home values are 6.8% higher, over the past five years they are 1.2% per annum, over the decade they have risen by 1.9% per annum and over the past 15 years they are up 4.3% per annum. 
Home values rose at a rate well above inflation between 1999 and 2004 and again over the past 12 months however over the past five and 10 years overall home value growth has been less than 2% greater than the rate of inflation.
<img class="aligncenter size-full wp-image-3918" src="https://blog.rpdata.com/wp-content/uploads/2014/10/Chart-31.jpg" alt="Chart 3" width="500" height="181">
Sydney and Melbourne have been the strongest capital cities for value growth over the past year and consistently over recent years. In nominal terms, values have increased by 14.3% and 8.1% respectively over the past year. 
As the above chart shows, when you adjust the growth in values for the effects of inflation, the level of growth is lower. Note that real home values have still increased in each capital city except for Canberra over the past year.  Although, outside of Sydney, Melbourne and Darwin the rate of growth has been 4.0% or less in all cities.
<img class="aligncenter size-full wp-image-3919" src="https://blog.rpdata.com/wp-content/uploads/2014/10/Chart-41.jpg" alt="Chart 4" width="500" height="184">
As we have already highlighted, real home value falls are much more frequent than falls in nominal terms. 
This is also the case across the individual capital city markets.  As you can note from the chart below, outside of Sydney and Melbourne, real increases in home values over the past two years have been minor.
<img class="aligncenter size-full wp-image-3920" src="https://blog.rpdata.com/wp-content/uploads/2014/10/Chart-51.jpg" alt="Chart 5" width="500" height="180">
Article continues on the next page. Please click below.
<hr class="system-pagebreak">
Combined capital city home values began to recover from the financial crisis at the beginning of 2009 after reaching a low point in December 2008. 
Since that time, nominal home values have increased by 34.0% across the combined capitals, largely driven by increases of 51.2% in Sydney and 44.9% in Melbourne.  Notably, Brisbane (6.0%), Adelaide (10.9%), Perth (14.5%) and Hobart (-1.6%) have all recorded nominal gains of less than 15% since December 2008. 
In real terms, between December 2008 and September 2014, combined capital city home values have increased by a much lower 16.5%. Across the individual capital cities, real changes in home values between December 2008 and September 2014 have been recorded at: 31.6% in Sydney, 26.1% in Melbourne, -8.0% in Brisbane, -3.7% in Adelaide, -0.6% in Perth, -14.7% in Hobart, 11.0% in Canberra and 5.1% in Darwin.
The next time you hear someone talk of the booming national housing market remember these statistics.  
Yes combined capital city home values are rising and this is due to the influence of the Sydney and Melbourne housing markets where values are rising.  Real home values in Brisbane, Adelaide, Perth and Hobart are still lower than they were before the financial crisis and have seen no real growth in more than six years.
The data also seemingly indicates that low interest rates are not necessarily the driving factor behind the current growth in the housing market.  If this was the case we would more than likely be seeing a more broad-based rise in home values.  The growth in home values has been contained to Sydney and Melbourne and to a lesser degree Darwin and Canberra. 
No wonder the Reserve Bank has flagged that monetary policy has largely done all it can and now fiscal policy has to do some of the heavy lifting.
Lower interest rates have encouraged rises in values in Sydney and Melbourne accompanied by a substantial lift in activity by investors.  However, outside of Sydney and Melbourne the housing market response, in terms of value growth, has been quite muted. 
Supply is responding across most cities which is certainly a desirable outcome. Yet despite real value falls over a number of years in Brisbane, Adelaide, Perth and Hobart, low mortgage rates and increasing new supply has not yet resulted in an ongoing rise in home values.  Of course this is not necessarily a bad thing but is somewhat surprising given the experience in Sydney and Melbourne.
I think what we are seeing is a case whereby our largest capital cities are further separating themselves from the rest of the pack. 
Sydney has pretty much always been the most expensive capital city market and this remains the case but we are now also seeing Melbourne separate itself from the remaining cities. 
Another factor driving the rising demand are potentially a greater number of overseas buyers investing in our two largest cities (unfortunately data capture is such that we don’t really know for sure). Furthermore both New South Wales and Victoria are experiencing a much lower outflow of residents to other states than they have in the past. 
Finally, the economies of Sydney and Melbourne are much more diversified economies than those of the other capital cities which tend to be much more narrowly focussed.  This is likely to be a key driver of higher housing demand and stronger value growth in these cities compared to the other capitals with a greater variety of job options available in these cities.
As home values continue to rise in Sydney and Melbourne lower income families and first home buyers may find it more difficult to enter the market.  This may result in some buyers looking to other capital cities in which to purchase homes. 
Of course, if the purchase is for owner occupation, the narrower economies may make it more difficult for these home owners to find appropriate employment in their new cities.
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ckusher-ujnxiKuFQs

Inflation adjusted home values put housing markets into context

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Melbourne property market transaction numbers are marginally higher on what they were this time last year, with the growth largely coming through auction sales.
Comparing the months with the vast majority of settled sales, from January to July, the results show a rise of 3.7% compared to a year ago.
On a month by month basis, the majority of the growth occurred in March and April when in excess of 1,000 auctions were recorded across five consecutive weeks.
This same occurrence also took place between 2012 and 2013. In 2013 there were 9,738 more home sales in Melbourne than in 2012 and there were 10,175 extra sales by auction.
The growth in volumes was completely accounted for through the use of auctions. The same seems to be the case this year.
Based on the first seven months of the year, there have been 1,725 more home sales and at the same time 3,248 more sales by auction.
These numbers highlight one of the key characteristics about auctions and where they work well when there is competition between buyers. Competition such as this can arise through many means; there may be an inadequate number of homes on the market or something unique about the property in question.  This is why auctions are rarely used in the outer suburbs and more frequently used in the inner city.
When making the decision of how to sell, owners would be well advised to keep this factor in mind and listen to the advice of their real estate agent.
There are 175 auctions scheduled this week in Melbourne compared to 196 for the same time last year. The low volumes are a result of the Melbourne Cup on Tuesday and ensure that the week’s auction results will not be a useful auction market indicator.
Last week’s record volume of auctions and sales provides a clear indication that the remaining seven weeks should provide healthy outcomes for sellers.
On a city wide basis, the time on market results for houses sold at private sale tightened again from 36 days to 33 days over the last week whilst vendor discounting remained stable at -4.8%.
Key data
<ul>
<li>Clearance rate week ending 26 October: 71%</li>
<li>Melbourne auctions expected week ending 2 November: 175</li>
<li>Melbourne private sales time on market week ending 26 October: 33 days (houses)</li>
<li>Melbourne vendor discounting market week ending 26 October: -4.8% (houses)</li>
<li>Listings being prepared for market are 4.7% higher in month ending 26 October (seasonally adjusted)</li>
</ul>
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rlarocca-zWhvjay44N

Melbourne auctions providing growth in transactions: RP Data's weekend preview

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We just finished a great little duplex project for a client. The site was in an older suburb and had a derelict house on it and it came with some challenges.

When you are looking at a knockdown, it's important to factor in a few things. One of the biggest of course is the demolition costs.  These can range dramatically in cost.

As we had time whilst waiting for the DA to be processed, I ended up getting no less than seven quotes. The old house was full of asbestos of course so that was factored into each quote and there was a big garage slab to be removed.

The highest quote I got was $22,000 and the lowest was $13,000. This was a contractor who actually recycled a lot of the materials, on selling them and was therefore cheaper.  

[smartcode_project:default project_id=3783]

Lesson number one, it is worth the efforts of getting lots of quotes.

The cost of the site was $160,000 (negotiated down from $180,000) plus demolition costs bought it up to $173,000. This was a nice big 876 square metre block of land located close to the school and a good price to pay for a dual occupancy site. It had a 20 metre frontage but there was no kerb and guttering to the front of the house, just a gravel shoulder. 

The site had a slight fall to the rear and we planned to build up the site to drain to the street. But council had other ideas and one of the conditions of our DA consent was to drain to the rear where there was a gravel laneway.

The problem was that there were no drains in the laneway and we had to install a dish drain to direct the water to the nearest cross street, which was pretty ridiculous considering there was no drain there either.

Lesson number two, look for land that has establish drainage in the street, preferably with kerb and guttering.  

The next hurdle we found building in an old suburb was the water and sewer infrastructure was aged.

We were asked to install a new water service which included boring under the road to pick up the main for the water service and install a new junction as per the minor works contract issued by the local water board.

This added about $7,000 to the development costs effectively wiping out most of our $9,000 saving on the house demolition.  

Lesson number three, make allowances for infrastructure upgrades. These are not required in new land estates.

The good news for this development was that the villas were in high demand, being in an older suburb where there was very little new housing. Typical dwellings consisted of 80 year old miners cottages with a sprinkling of 1950s brick homes.

All through the construction phase I had people phoning me wanting to rent them or buy them. Our client was building to hold and so as we neared completion, I was able to have both villas leased for our client before handover.

We have a great relationship with our builder and they allow us to hold open houses and show through prospects before handover which is invaluable and means cashflow from the moment the final builder's drawdown is paid.

This little duplex project ended up costing $570,000 including land and construction costs to build two three-bedroom attached villas (a duplex).  Both were rented for $350 per week, giving a gross yield of 6.4%.  There was some equity created as well with the villas worth about $320,000 each.

There are advantages and disadvantages of a knock down rebuild project. It's important to get the land cheap enough to compensate for any additional issues that may arise due to the older area.

<img alt="" src="/images/2014/10/31/chivers%20oct%2031%20one.png">

<a href="https://www.propertybloom.com.au" target="_blank">www.propertybloom.com.au</a>
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jochivers-wq5Bp59R5a

Three lessons from a knock down rebuild project

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The Herald Sun ran a story on Wednesday titled <a href="http://www.heraldsun.com.au/news/victoria/melbourne-docklands-10-ideas-to-fix-postcode-3008/story-fnkd6ppg-1227105693657">Melbourne Docklands: 10 ideas to fix postcode 3008</a>. The basic premise being that the precinct is somehow broken and requires 'fixing.'

Over the course of its life as Australia's largest urban renewal project Docklands has copped its fair share of criticism, some justified but most unwarranted. I'll comment on and retort where necessary the ideas posed by the Herald Sun article.

<blockquote>
1. Turn the concrete into an urban beach. Danish urban consultants floated this idea in a major report, suggesting the beach could include a sailing school, kayak rentals, diving spots and beach volleyball courts. Sounds like fun.
</blockquote>

The concept of an urban beach would probably be best suited to an area of Harbour Esplanade and was investigated in earlier schemes for the site. More recently Lend Lease's masterplan renders have suggested an enclosed public swimming pool pontoon could be built in front of Library at the Dock.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/ll2_vicharbour_med.jpg" rel="gallery-all" title="A pontoon swimming pool at Victoria Harbour? © Lend Lease"><img alt="" class="image-article-full-width-580px" height="398" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/ll2_vicharbour_med.jpg?itok=MdWgBa44" title="A pontoon swimming pool at Victoria Harbour? © Lend Lease" width="580"></a>

<figcaption>A pontoon swimming pool at Victoria Harbour? © Lend Lease</figcaption></figure>A sailing school seems like a no brainer considering the maritime history and activity around Victoria Harbour and along the Yarra. The Docklands Family Services and Boating Hub will go some way to addressing that with a community boating hub on the ground floor, which will be home to the Docklands Yacht Club, the Victorian Dragon Boat Association and the Melbourne Outrigger Canoe club.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/boatinghub_lge_cropped.jpg" rel="gallery-all" title="Docklands Family Services and Boating Hub. © Lend Lease"><img alt="" class="image-article-full-width-580px" height="387" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/boatinghub_lge_cropped.jpg?itok=dLVA6vIf" title="Docklands Family Services and Boating Hub. © Lend Lease" width="580"></a>

<figcaption>Docklands Family Services and Boating Hub. © Lend Lease</figcaption></figure><blockquote>
2. Build a dome over it. The biggest Docklands gripe is always the wind, which whips fiercely off the water. So a giant dome — just like in The Simpsons Movie — could mean Melburnians could be blown away by the Docklands precinct, just not literally.
</blockquote>

Purely a tongue in cheek idea that will probably also result in one big greenhouse being created. More (mature) trees with greater foliage density would go someway to alleviating the issue.

<blockquote>
3. Embrace the area’s waterfront heritage. Recreating freight sheds by the harbour has been floated before, and could help strengthen the area’s culture, offering a home to food and craft markets.
</blockquote>

This idea gets a big tick from me particularly if it were to result in a much more diverse and rich material palette for the area which extended beyond glazing, steel and concrete. Rebuilding the sheds along Harbour Esplanade could be fraught with danger as they were originally demolished to open the area up to the water; the last thing needed is to create a physical and visual barrier to the water.

Instead the skeletal structure could be reinstated with smaller pods within. Melbourne also currently lacks a maritime museum and has lacked one since the construction of the Convention Centre.

<blockquote>
4. Set up a university campus. It’s the most obvious way to attract young people to the area, who would not only bring a bit of life to Docklands, but would encourage hipster cafes, cosy bars and boutique shops to open.
</blockquote>

Another tick from me. A university down there would mean scores of students coming and going throughout the course of the day not just office workers on lunch breaks.

You need only look at the top end of Swanston Street during a weekday to see how busy Melbourne Central and the State Library can get. There are few sites left but at one stage Digital Harbour was mooted to include a series of buildings for the University of Melbourne, back when it was first announced in 2000.

<blockquote>
5. Find more quality open space. This is an obvious one, and something town planners are constantly working on, but more peaceful parks and gardens are needed in between the high-rise towers that dominate Docklands.
</blockquote>

This is a good one, because while Docklands has open space it could be argued that it lacks 'quality' open space. The City of Melbourne has gone to some lengths to try and address this via the <a href="http://www.melbourne.vic.gov.au/AboutMelbourne/PrecinctsandSuburbs/Docklands/Pages/DocklandsPublicRealmPlan.aspx">Public Realm Plan</a>.

The obvious area is of course Harbour Esplanade but a number of other pocket plans are planned at NewQuay, Batmans Hill, Yarra's Edge and Victoria Harbour in addition to the planned park at Seafarers Rest on North Wharf.

<blockquote>
6. More CBD-style laneways. Hidden little streets are central to Melbourne’s charm but Docklands doesn’t offer much in the way of laneway living. In turn, this might inspire street art to give the precinct some colour and life.
</blockquote>

Easier said than done. Melbourne's laneways have evolved over time to become one of the elements synonymous with present day Melbourne. Contrived Laneways don't work and successful laneways take time to establish.

They also generally connect areas of great activity and interest which are usually busy and popular to begin with.

<blockquote>
7. Open a cat cafe. Melbourne’s first cat cafe opened near Queen Victoria Market earlier this year, so maybe it’s time it got some competition. A Docklands version could help people escape the wind with coffee and cake in a cosy cat-filled lounge.
</blockquote>

Another novelty idea rather than something which would have a profoundly positive impact on the Docklands experience. Docklands has enough cafes but they're not all 'good' cafes. Quality over quantity.

<blockquote>
8. Start up Free Beer Fridays. Probably the only thing better than a rooftop bar is a pub by the water. Fremantle has got the Little Creatures brewery — they’ve got the right idea — and while some good watering holes are open in Docklands, free beer would definitely entice more punters.
</blockquote>

This idea would certainly have the endorsement of Apartments.com.au. Something akin to the 4 Pines in Manly wouldn't go astray either. Again it all comes down to quality, no point offering free beer if it tastes like... you get the picture.

<blockquote>
9. Set up an outdoor cinema. Moonlight Cinema in the Royal Botanic Gardens is a special summer spot, so why not recreate it in Docklands? (It might just need the dome built over it to keep out the wind.)
</blockquote>

Again another idea that could be implemented down at Harbour Esplanade in a central location, but Mirvac did set up something similar last summer down at Point Park so it's something that each precinct could potentially offer. If a Docklands Moonlight Cinema were to happen similar to the one at the Royal Botanic Gardens ie. during summer wind wouldn't be as big of an issue. This could also be combated with trees.

<blockquote>
10. Build a ferry terminal. The Docklands precinct isn’t a place many Melburnians just stumble upon, but a ferry terminal would attract people to the area, providing easy access to and from Melbourne’s other waterfront destinations.
</blockquote>

The end of Central Pier seems like the perfect location for this to happen. It could possibly be coupled up with some other form of programme into a mixed use building. If the ferries were part of Melbourne's public transport system and allowed the use of myki I think it would be quite a popular mode of transport. I'd catch a ferry from Fed Square to Docklands and vice versa, particularly when you get <a href="/news/cruising-on-the-edge">views like this</a>.

Let us know your thoughts on what you think Docklands lacks or requires to improve the experience. Don't bother with 'demolish it and start again' or 'they should have blah blah blah from the beginning.'
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Laurence Dragomir

Melbourne Docklands: 10 ideas to fix postcode 3008

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A beachfront Balmoral residence - one of only five houses with direct beach frontage - has been snapped up within two weeks of its listing.
It is 918 square metres of terraced tropical gardens with home designed by architect builder Ian Reeler.
Offers were due to close 11 November through Richardson &amp; Wrench Mosman agents Stephen Patrick and Robert Simeon.
Inspectees were told more than $11 million would secure <a href="https://www.rwm.com.au/4-wyargine-street-mosman-nsw/1807001/" target="_blank">4 Wyargine Street, Mosman</a>.
It last sold in 1983 for $550,000.
A harbourfront Curraghbeena Road, Mosman, trophy home holds the Mosman mantle for 2014's top sale this far when sold for $16.3 million by Nick Bain, former head of infrastructure at Allco Finance and now chief executive of Graphite Energy, and his wife Katherine.
Hong Kong-based expat Kate Spanton, wife of Brand Loyalty managing director Philip Spanton, was the buyer of the four storey trophy home.
There are $18.5 million-plus hopes on the near neighbour harbourfront listed by former Cockatoo Coal executive chairman Mark Lochtenberg.
The house in-between sold at $11 million in June. It was bought by the <a href="/news/wine-entrepreneurs-buy-on-mosman-harbourfront-title-tattle-top-20-update">w</a><a href="/news/wine-entrepreneurs-buy-on-mosman-harbourfront-title-tattle-top-20-update">ine entrepreneurs Katrina and Russell Leslie</a> who bought from Anne Clarke and Greg Clarke, the former head of Lend Lease.
On Domain's website there are 53 properties listed at $4 million-plus in Mosman.
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Prized Balmoral beachfront snappily sells at $11 million plus

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Home equity withdrawal has become increasingly popular over the past decade, despite the convulsions caused by the global financial crisis, a new peer reviewed study has found.
The study from the Australian Housing and Urban Research Institute (AHURI), Housing equity withdrawal: uses, risks, and barriers to alternative mechanisms in later life, sheds some interesting light on the way different people use their wealth in this critical period of their life.
In 2010, 18% of older home owners took some, or all, cash out of their housing equity. In 2001/2002 this sat at 13%.
The dominant form of home equity withdrawal for those under pension age is “in situ” equity borrowing (staying in the home and borrowing on the asset).
For those above pension age there is a shift towards downsizing or selling up.
It is noted that home owners making these decisions are more likely to suffer from material deprivation than those who do not touch their home equity, while those who withdraw equity are “also have more housing-oriented wealth profiles”.
“Unsurprisingly, income poor-housing asset-rich groups feature prominently among groups cashing in housing equity,” the report notes.
Mortgage equity withdrawal (MEW), however, is used by those who appear to have sounder economic positions than those downsizing or selling up.
MEW was found to most commonly be a technique used by people under pension age as they look to spend on a wide range of items, including holiday spending, home maintenance, car repairs, upgrades or children’s education costs.
Meanwhile, older home owners selling up, usually have little income or assets to fall back on, relying on housing-dominated portfolios with little other assets.
“They are also the least able to raise emergency funds among all the groups investigated, and so most likely to sell up when financial emergencies arise,” the study notes.
“While in situ equity release by adding to mortgages is common, particularly in the group approaching retirement, and associated with pressing spending needs, the typical in situ equity borrower has a relatively strong financial and employment context. These owners are becoming more indebted, but their borrowing is not reckless.”
If serious misfortune is, however, faced, then financial stress may not be far away.
Those downsizing or selling up were found to have most likely faced ill health, separation, divorce or bereavement prior to sale.
“One senses that amidst older downsizers and sellers, in situ MEW is no longer an option to cushion living standards in the face of adversity. Importantly, they appear to be options that older female, single person households are prone to fall back on.”
Selling up is, ultimately, seen by most as a last resort.
Risks the study notes you should be aware of:
<ul>
<li>Adverse life events can quickly alter your ability to repay any new borrowings.</li>
<li>Life events can force quick financial decisions to be made that are not well thought out, leaving an elevated risk of making a poor decision.</li>
<li>Transaction costs when downsizing can be substantial.</li>
<li>Social isolation can occur on the sale of your primary home.</li>
<li>Those selling up to re-enter the rental market may face a lack of security.</li>
</ul>
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jduke-EHk3XBmHkn

Borrowing against house increasingly popular, but selling up a last resort

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The South East Queensland market is gathering momentum, Stockland managing director Mark Steinert said in his address at the company’s annual general meeting earlier this week.
Steinert said Melbourne is steady with high levels of activity, while Perth’s vacant land market is continuing to moderate.
Stockland’s newly released projects, Elara and Willowdale in New South Wales and Calleya in Western Australia, have seen strong demand. Meanwhile, their major projects in Victoria’s Lockervie and Davis Road, as well as Queensland’s Caloundra are progressing well for a 2015 launch and 2016 settlements.
“Overall we have around $460 million of redevelopments underway and $700 million of redevelopments in our next wave of commencements, all of which are expected to deliver incremental internal rates of return of 12-14% and 7-8% stabilised FFO yields,” Steinert said.
He noted that as part of the growth strategy for Stockland they have acquired 2,300 lots adjoining their successful projects that will provide returns at or above their hurdle rates.
“We also made good progress establishing our strategy to reach new customers with medium density products and completed homes and this will see us commence work on 550 new homes in FY15,” he said.
Their projection is that they are on track to settle at the top end of 5,000 to 6,000 net deposits through the cycle range “assuming current residential market conditions continue”, given the first quarter saw 1,652 net deposits, which was noted as the strongest period in four years.
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South East Queensland’s residential momentum continues: Stockland

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The Chatswood development is seeking VIP registrations ahead of its forthcoming launch.
Located in Sydney's North Shore suburb of Chatswood, <a href="https://thechatswood.com.au/" target="_blank">The Chatswood</a> will feature a design from KANNFINCH architecture and thoughtful outdoor creations from Arcadia Landscape Architecture.
Bringing one, two and three bedroom apartments with parking, ground level retail, a central courtyard and private rooftop gardens with views to the skyline of Sydney CBD, there will be BBQ facilities, seating and pergolas, as well as shaded dining areas for functions.
Developed by Toga Group in partnership with Reyhoda Pty Ltd, The Chatswood is marketed by CBRE.
<img src="/images/2014/10/30/chatswood-oct-30-one.jpg" alt="">
Last year, a submission for development approval for 28, 32, 36 Anderson Street, 1 Help Street and 2A McIntosh Street in Chatswood was made for a U-shaped developed of seven to 12 storeys and a landscaped podium.
The application also included basement car parking and lower ground floor car parking for 193 vehicles (34 visitor spaces and 26 commercial spaces, the rest being those for the shop-top homes).
In total, 136 apartments were requested, including 62 one bedroom, eight one bedroom plus study, 23 two bedroom, 33 two bedroom plus study, two three bedroom and eight three bedroom and study apartments.
VIP preview registrations are now open with <a href="https://thechatswood.com.au/" target="_blank">a display suite coming soon</a>.
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The Chatswood in Sydney's North Shore, set to launch soon

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A 50% stake in North Sydney’s 101 Miller Street/Greenwood Plaza has sold for $300 million plus.
The deal, one of the biggest commercial property transactions for the fourth quarter, was negotiated by Rob Sewell and Simon Rooney of JLL &amp; CBRE.
TIAA Henderson Real Estate, on behalf of TIAA-CREF purchased the half stake from Eureka Funds Management.
The remaining 50% share of the landmark office tower and dominant shopping centre will continue to be owned by the Mirvac Group.
Mirvac will continue to operate 100% of the asset.
Rob Sewell said 101 Miller and Greenwood Plaza was one of Australia’s limited stock of 35 premium grade buildings.
"But more importantly it is the only premium asset across Australia that is outside of a CBD area," he said.
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