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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Offshore marketing of Melbourne's tallest building, Australia 108, on Southbank Boulevard, is underway through Knight Frank Singapore.
At 319 metres it will be the tallest block in the southern hemisphere.
<a href="https://propertybuyer.sg/australia-108-70-southbank-boulevard/" target="_blank">There will be 1,105 apartments in the complex</a>, located up to its 100th level.
Property Observer understands it has a 2019 estimated completed date.
<img src="/images/stories/2012/11/australia108.jpg">
Singaporean developer Aspial bought the Australia 108 site in Southbank which has building approvals from the Victorian Planning Minister Matthew Guy.
They paid $42.3 million in January for 70 Southbank Boulevard with its permit for 312-metre tower design by architects Fender Katsalidis. 
The southern hemisphere’s tallest building, Australia 108 will stand at 319 metres — 25 metres higher than the Eureka Tower.
<div>
The name stems from a previous mooted incarnation when it was set to be 108 stories high.
Aspial began as a single-store jeweller in 1970 to become a major retailer, financial services business and property group.
<img src="/images/2014/09/23/australia-108-sept-23-one.png" alt="">
<img src="/images/2014/09/23/australia-108-sept-23-two.png" alt="">
<img src="/images/2014/09/23/australia-108-sept-23-four.png" alt="">
 PS The Knight Frank website pages soliciting registrations have been removed <a href="/expert-insights/buying/rogue-marketing-claims-in-offshore-australia-108-registrations">in the wake of claims they had no authority</a>.
</div>
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jchancellor-FAypfDUnLy

Southbank's Australia 108 marketing underway offshore through Knight Frank Singapore

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Restaurateur Peter Kuruvita and his wife Karen sold their Zetland terrace ahead of its weekend auction.
It was listed given their recent move to Queensland opening the Noosa Beach House Peter Kuruvita.
Kuruvita bought the Portman Street terrace for $715,000 in 2004, around the time he opened his Flying Fish restaurant.
The renovated three bedroom had been tipped to fetch more than $1.25 million through <a href="https://www.mcgrath.com.au/buy/house-zetland-nsw-2017/235500/?searchID=42890637" target="_blank">McGrath agent Ben Forsyth</a>.
Title Tattle gathers around $1,325,000 was secured.
Sydney’s early spring home auction market continues to strengthen recording a 83.9% initial clearance rate, the highest recorded since February. The revised APM weekend rate sat above 80% for the second weekend.
Some 621 properties were listed to go under the hammer on Saturday which was well ahead of the 570 auctioned the weekend before and the 565 auctioned over the same weekend a year ago.
"Sydney is set to host over 2,400 auctions this September which will be an all-time record for the month and considerably higher than last September when 2003 homes went under the hammer," APM's senior economist Dr Andrew Wilson said.
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Sydney's auction heat as chef Peter Kuruvita sells Zetland home pre-auction

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A former Brighton home of retired cricketer Shane Warne was passed in on a vendor bid of $5.1 million at weekend auction.
Brighton's most famous residents, Shane Warne and Simone Callahan called <a href="https://www.realestateview.com.au/Real-Estate/102-esplanade-brighton/Property-Details-buy-residential-7552982" target="_blank">102 The Esplanade</a> (pictured above) home four four years until sold for $2.61 million in 2000.
It last sold nine years ago for $3.85 million when bought by the current vendors.
Nick Johnstone Real Estate had the lavish five-bedroom house listed in conjunction with Buxton with $5 million plus hopes.
The highest priced notified Melbourne sale of the past week was $3,525,000 when <a href="https://www.realestateview.com.au/Real-Estate/1a-rose-street-brighton/Property-Details-buy-residential-7519400" target="_blank">1A Rose Street, Brighton</a> (pictured below), a bakery warehouse style offering, sold late last week through hockingstuart.
<img src="/images/2014/09/22/brighotn%20sept%2022%20two.jpg" alt="">
The REIV reported a clearance rate of 75% was recorded on the weekend compared to 73% last weekend and 78% this weekend last year.
There were 894 auctions reported to the REIV this weekend, with 104 passed in on a vendor bid, Enzo Raimondo, the REIV chief said.
The Warne's bought the home, which comes with ocean views, for $902,000 in 1996.
The Warne's bought from the Goldstein family and sold in 2000 to Morry Fraid when they moved to Middle Crescent, Brighton which was bought for about $3.5 million in 2000 and sold for about $8.75 million seven years later.
It is understood that both Shane and Simone still reside in Brighton.
In February this year Simone spent $2.6 million on her abode.
<a href="/news/successful-sales-spin-secures-shane-warnes-brighton-mansion-sale">Shane sold Kilkerran</a> with downsizing plans to another Brighton house, although the reported $4 million sale has yet to be registered.
His historic four bedroom house, Kilkerran, which sits on a 2,202 square metre estate, fetched $10.85 million. 
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Former Warne house remains for sale, while Brighton bakery warehouse tops results

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Investors are missing out on thousands of dollars worth of tax deductions by failing to take advantage of depreciation benefits, according to CBRE.
The real estate services company last week launched a tax depreciation service aimed at Australian residential property investors.
“It’s astronomical the number of people who are unaware of the depreciation benefits that are available to them,” said CBRE Capital Allowances National Director Neale Scott who leads the division.
Owners of new properties could often claim 2 to 4% of the purchase price in depreciation in the first year of ownership, Scott said. On a newly constructed property purchased for $400,000, for example, the depreciation benefit could be between $8000 and $14,000 in the first year.
“It’s significant,” Scott said.
But many investors did not know they could claim such deductions by obtaining a tax depreciation schedule for the property.
“There is a lot of reliance on accountants to do this work but accountants are the ones who use the schedules; they don’t prepare them,” Scott said.
A number of other companies can prepare tax depreciation schedules for investors.
Scott said CBRE had a large residential valuation business and could use its existing infrastructure to offer a cost competitive service in preparing depreciation schedules.
The scale of its business meant it could prepare the reports in a shorter time frame than many of its competitors. It aims to deliver depreciation schedules to its clients within five to 10 days.
“For every [depreciation schedule] that we do, we fully inspect the property which is also a massive point of difference,” Scott said.
The service is available across all metropolitan areas.
CBRE launched its Capital Allowances business in Australia about 12 months ago initially targeting commercial and agribusiness sectors.
“The addition of a residential platform enables us to offer a full suite of property and tax depreciation services across all sectors,” Scott said.
The business specialises in formulating depreciation schedules and providing associated advisory services, including preparing property reinstatement costs and depreciated replacement cost assessments. 
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zfielding-GvX3Uq9KTa

Investors overlooking depreciation benefits: CBRE

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There is a bit of debate around as to whether it is escalating land prices which are pushing up dwelling prices, or whether development and construction costs have a role to play too.
An unbiased observer with no barrow to push would surely conclude that it is both.
Lot prices
Clearly, land prices have increased, there can be no contesting this fact. The latest data from the HIA showed that median capital city lot values have increased by approximately 20% over the past five years to March 2014 as looked at <a href="https://petewargent.blogspot.co.uk/2014/07/capital-city-lot-prices-jump-33-qq-75-yy" target="_blank">here</a>, the most recent gains driven largely by a material annual increase of 5.6% in Sydney. 
<img src="https://3.bp.blogspot.com/-eyGvHmjA7tE/U8eJFkwXdQI/AAAAAAAAOk0/0Ox0UHIewqI/s400/HIAlot+prices.jpg"> 
Source; HIA
Further, with lot sizes decreasing, the rate of of increase in land values may be deceptively somewhat steeper than implied by the HIA's charts.
While Australia continues to pursue a population policy which pushes 80,000 to 95,000 persons in one calendar year into both of its largest metropolises, it does seem that absent radical tax reform that lot prices will probably increase over time. 
The below chart represents what has happened over the last decade to the respective populations of Greater Sydney and Greater Melbourne according to the Australian Bureau of Statistics, which is to say that they increased by 600,000 and 750,000 persons respectively.
 <img src="https://1.bp.blogspot.com/-9P9TepnB90M/VBbgWjGJkSI/AAAAAAAAPws/keV69nJLCLQ/s1600/CONSTRUCTPIOPN.jpg">
This is a colossal rate of growth and indeed this was one of the reasons that will felt a dramatic housing bust was unlikely in 2008. Notably, the population growth is increasingly focused on the capital cities rather than the "rest of state" areas, and in particular, the population growth rates are focused on the areas highlighted below.
"At June 2013, just under two-thirds of the state's population (4.76 million people) resided in Greater Sydney. Population growth in Greater Sydney accounted for 78% of the state's total growth in 2012-13." 
 <img src="https://3.bp.blogspot.com/-3jzCRPX-QAM/VBbfP-hXOII/AAAAAAAAPwQ/JVN87TyStJA/s1600/CONSTRUCT1.jpg">
"Greater Melbourne accounted for 76% of Victoria's population at June 2013. Population growth in Greater Melbourne equated to 89% of Victoria's total growth in 2012-13."
<img src="https://4.bp.blogspot.com/-Jfe1YKtTMj0/VBbfUk-syqI/AAAAAAAAPwY/m4LxdNPZG3I/s1600/CONSTRUCTVIC.jpg">  
Perhaps unsurprisingly, then, capital city land prices have indeed increased. 
Construction costs
That said, observers should not dismiss the role of rising construction and development costs because they don't fit the narrative.
The Reserve Bank of Australia (RBA) went to some lengths to demonstrate the high replacement cost of infill apartment dwellings in particular as at 2010.
Their research implied that a fall in apartment prices would quickly dry up the supply of new stock given that two bedroom apartments in Sydney and Melbourne had a replacement cost approaching $500,000 per dwelling.
Notably, the RBA found there to be a heavy weighting of the costs towards construction, service and financing and government charges, with the land cost only comprising a small component of the total. 
 <img src="https://www.rba.gov.au/speeches/2013/images/sp-so-230413-graph8.gif">
The above chart shows how it is plainly unrealistic to expect dwelling prices in our largest capital cities to be based upon an arbitrary multiple of a median salary income. Of course dwelling prices can fall below replacement cost for a time, but 'Housing Market Economics 101' should tell you that in a city with a rapidly expanding population this will rarely remain the case for very long.
The above data ties in neatly with what the Australian Bureau of Statistics <a href="https://www.abs.gov.au/ausstats/abs@.nsf/featurearticlesbytitle/2609898B87F95519CA25792D000E2DF5?OpenDocument" target="_blank">found in October 2011</a>, which was that:
"Over the last 20 years, the cost of building a new house has increased nearly fourfold.
"The average cost of building a house in Australia almost quadrupled in the twenty years to June 2008, rising from $65,000 in 1987-88 to $236,000 in 2007-08. Graphs 1 and 2 (below) show that the cost of building a house in Australia has been rising, with the rate of increase greater in the second decade."
 <img src="https://www.abs.gov.au/ausstats/abs@.nsf/3d68c56307742d8fca257090002029cd/2609898b87f95519ca25792d000e2df5/Body/0.98C!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Graph 1: AVERAGE COST PER NEW HOUSE">
 <img src="https://www.abs.gov.au/ausstats/abs@.nsf/3d68c56307742d8fca257090002029cd/2609898b87f95519ca25792d000e2df5/Body/0.13A6!OpenElement&amp;FieldElemFormat=gif" alt="Graph: Graph 2: AVERAGE COST PER NEW HOUSE">
Source: ABS 
This massive increase in the average cost of a new house was not limited to the major states - the costs of new housing increased way ahead the rate of inflation everywhere as the data clearly demonstrates.
<img src="https://1.bp.blogspot.com/-tb5SOOnJ_Ik/VBbgPIsKFyI/AAAAAAAAPwk/T5J14dLwh0E/s1600/CONSTRUCTABS.jpg" style="display: block; margin-left: auto; margin-right: auto;">
Source: ABS 
It is folly to ignore <a href="https://www.abs.gov.au/ausstats/abs@.nsf/featurearticlesbytitle/2609898B87F95519CA25792D000E2DF5?OpenDocument" target="_blank">these statistical findings</a> simply because they do not fit the land prices meme.
Why did developer costs rise and what is the impact?
Ask any developer in our capital cities and they will tell you the same thing - that the costs of development and construction are dramatically higher in real terms than they were 25 years ago.
I looked at some of the reasons for this in detail <a href="https://petewargent.blogspot.co.uk/2014/03/9-reasons-developer-costs-jumpedand" target="_blank">here</a>, also demonstrating how there is scant evidence of developers gouging high returns on capital employed, with margins remaining relatively tight even today.
This leads me to be reasonably confident in what we have heard from developers in Sydney, that approvals and rates of construction will have well passed their peak through 2016. 
One of the impacts of this combination of high land remediation costs and growing demand for dwellings close to the city has been that with replacement cost relatively high in built-out inner city locations, the house price gradient, or the ratio of house prices in the inner ring to those in the outer, has steepened considerably over the past seven years.
 <img src="https://www.rba.gov.au/speeches/2014/images/sp-so-150514-graph11-small.gif" alt="Graph 11: House Price Gradient">
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pwargent-M4siyDbqQY

Is it development costs or land prices causing dwelling prices to rise?

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Australia’s low-income residents are expected to take on a colossal amount of private debt just to put a roof overhead in our rentier economy, and the only explanation they are being offered is that Australia is suffering from a ‘housing shortage’.
Speaking at the 2014 <a href="https://topics.bloomberg.com/bloomberg-australia-economic-summit/">Bloomberg Economic Summit in Sydney</a>, where the investor share of the market is close to 50% and finance commitments have sky rocketed some 44% higher than July 2013. Treasurer Joe Hockey, denied that prices were ‘credit fuelled’ because: "Fundamentally we don’t have enough supply to meet demand (and) that doesn’t suggest a bubble.”
<img src="/images/2014/09/22/cashmore%20sept%2022%20one.jpg" alt="">
His views were supported by David Cannington, senior property analyst at Australia &amp; New Zealand Banking Group Ltd (ANZ), who referenced an apparent shortage of ‘300,000 homes’, while at the same time welcoming an elevated level of foreign speculation “as adding about $4.5 billion every quarter to total dwelling construction”.
The shortage Cannington refers to, is derived in part from research put together by the National Housing Supply Council (NHSC) established in May of 2008, just prior to the last Senate inquiry into housing affordability, yet promptly disbanded by the incoming Abbot government who are now only too willing to use its findings to support their populist view.
Using ABS data, the NHSC assessed what is known as ‘underlying demand’ - the amount of extra housing needed per annum over the last decade for all residents in Australia (not just active buyers) - ‘if’ we had continued to produce enough homes for an increasing population based on existing household composition figures.
The supply side findings of the report were hotly debated and justifiably so.
Planning for population growth is not an easy task, it is predictive in nature and makes many assumptions and revisions along the way.
However, this was not the NHSC’s only role.
It was also commissioned to produce a comprehensive evaluation of Australia’s affordability problems, which included the status of those impacted most – homeless, renters, first home buyers, low wage families and tenants in the public and social housing system, which helped clarify its findings.
For example, the reports showed utility costs such as electricity, gas, water, and sewerage, have been increasing at more than 10% per annum – yet they are not typically calculated as part of current analysis of housing affordability constraints.
They gave a good statistical overview to show a dramatic shortfall of affordable rental accommodation for low-income families. And clear evidence that our housing crisis is not that we do not produce enough homes ‘per se’ – but that we do not produce enough affordable and feasible options across the sector as a whole – in both the public and private sphere.
For example - the report noted a “shortage of housing for lower-income people  (specifically families) that results from a mismatch of housing prices relative to income”.
It made a point of stressing that Australia’s supply challenges cannot be met by ‘simply adding to the housing stock’. And further elaborated on the inability of apartment construction to meet both need and price for the majority of family residents - the value of the land and associated costs being too high, and the size of apartments being too small to adequately fulfil the task.
This places Cannington’s second comment – regarding the level of foreign investment pushing an unprecedented inner city boom in apartment construction, into context.
For individual renters, students and a small percentage of couples living downtown, the increase in high-density accommodation will assist in placing downward pressure on rents.
It cannot however assist in addressing Australia’s real housing shortage or accommodating the growing number of family and low-to-middle income residents, that want to buy – not just rent - and in the face of declining wages, find it increasingly difficult to do so.
This is not because we have booming population growth and a shortage of roof space, as our ministers are fond of sermonizing. But because our tax policies work directly against it, subverting supply side policy and negatively affecting wage growth by pushing up the price of land and the associated costs of doing business.
They encourage a system of false scarcity, in which land and dilapidated housing is hoarded and not effectively utilised, forcing a process of social polarisation, as low income residents are forced to ‘hop’ both the middle and outer rings, in search of cheaper options further afield.
They distort the use of the nation’s savings, encouraging speculation on rising land values.  This negatively affects the financing of new supply, as investors chase the capital gains associated with established stock, over and above rental income.
<img src="/images/2014/09/22/cashmore%20sept%2022%20two.jpg" alt="">
The behavioural impacts are profound, amplifying the boom and bust swings of the market cycle.
The financial sector accommodates, with property prices dependent on how much ‘endogenously’ created credit a bank chooses lend, subject once again, to our dysfunctional tax system.
Negative gearing, depreciation and lower land taxes, leave more economic rent available to be pledged to the banks in the form of higher prices, producing a rentier economy which prioritises ‘creating wealth’ through asset inflation and rising levels of private debt - rather than improving living standards by supporting tangible investment into value adding activities.
<img src="/images/2014/09/22/cashmore%20sept%2022%20three.jpg" alt="">
Article continues on the next page. Please click below.
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The distortion that inflated values have on the economy acts to subvert housing policy as any danger of a marked decline in prices, places an associated risk on financial stability.
Affluent neighbourhoods are therefore protected from ‘over development’, while inelastic responses to market conditions, allow professional land-bankers to squat on sites at low cost and secure windfall gains when they are later rezoned for residential development.
Stamp duty further restricts labour mobility and the regular turnover of housing stock.
The resulting effect is illustrated on the <a href="https://www.natsem.canberra.edu.au/publications/?publication=the-great-australian-dream-just-a-dream">maps below</a> that show where affordable options were located in 2001 for low-to-middle income buyers, compared to 2011, in all of our major capitals.  
The yellow patches being affordable, and blue patches unaffordable.
<img src="/images/2014/09/22/cashmore%20sept%2022%20four.jpg" alt="">
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<img src="/images/2014/09/22/cashmore%20sept%2022%20eight.png" alt="">
Source: <a href="https://www.natsem.canberra.edu.au/publications/?publication=the-great-australian-dream-just-a-dream">NATSEM</a> Income and Wealth Report Issue 29 - The Great Australian Dream - Just a Dream?
Prior to the 1970s, infrastructure financing was funded in part through the capture of economic rent from the land that directly benefited from the accompanying improvements. 
Now, infrastructure costs are financed through deadweight taxes on productivity from residents who derive no benefit in their own local neighbourhood, or loaded onto the upfront cost of new dwellings and promptly passed to the buyer.
The banking lobby loves minsters like Joe Hockey that offer no threat to their profits and instead, waft away any necessary concern over rising prices with simplified responses that fail to identify the root cause. 
It has driven up the cost of housing – damaging the potential of future generations, with a lifetime worth of debt sold as “forced savings”, while the interest is re-packaged an into an array of obscure financial instruments, allowing the country’s wealth to gravitate into an elite nuclei of financially strong hands.
Notwithstanding, all the above points were highlighted in the last <a href="https://www.propertyoz.com.au/library/A%20good%20house%20is%20hard%20to%20find%20report%20JUNE%202008.pdf" target="_blank">Senate inquiry</a> into housing affordability, as well as being set out clearly in the <a href="https://taxreview.treasury.gov.au/Content/Content.aspx?doc=html/home.htm" target="_blank">Henry Tax review</a>.  Yet studiously ignored in a budget that surgically set about reducing the living standards of Australia’s low to middle-income earners, the most productive sectors of our economy, rather than collecting the tax revenues from resource rents and monopoly profits.
Joe Hockey has reaped substantial unearned gains from an <a href="https://blog.australiaboomtobust.com/2014/08/propertied-federal-political-class/" target="_blank">impressive portfolio</a> of property investments - reportedly, picking up his Canberra home <a href="https://www.dailytelegraph.com.au/news/nsw/taxpayers-footing-bill-on-treasurer-joe-hockeys-15-million-canberra-house/story-fni0cx12-1227026624945">“for a song”</a> in 1997 at $320,000, and watched that land value more than triple in nominal terms to an estimated  $1.5 million today.
In light of the above evidence, it can only be assumed that Hockey’s comments are based on a vested interest to protect his own back pocket and seat in power, rather than the urgent need to invest in Australia’s future by eliminating the losses inflicted by our current system of taxation that forces up the cost of land and associated levels of private debt.  
Instead we need to move toward a system that finances society’s needs and infrastructure requirements, from capturing the <a href="https://www.macrobusiness.com.au/2013/11/land-tax-must-kill-negative-gearing-stamp-duty/" target="_blank">economic rents</a> currently capitalised into the price that buyers negotiate when they purchase a home, which would eventually act to improve the living standards of all, not just the privileged few.
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catherinecashmore-6LXia3pPQj

Supply v demand: A political game of smoke and mirrors

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The historic Victorian childhood home of Ned Kelly sold after weekend auction for $640,000.
It comes with bluestone heritage listed cottage on a 3.5 acre block of land with a second Federation-style home which was built in the back yard since its last sale in 1999 at around $95,000.
Andrew Bellino and Rocco Di Battista, <a href="https://raywhitecraigieburn.com.au/vic/beveridge/1184770/" target="_blank">at Ray White Craigieburn</a>, had the offering at 44 Kelly Street Beveridge.
Located 40 kms from Melbourne, it has long been on Ned Kelly historical trail on the way to Glenrowan.
He says the cottage remains in its original condition. 
The boyhood house of Ned Kelly was built by his father in 1859, four years after his birth. According to Heritage Victoria, his brothers, Jim and Dan, and sister, Kate, were probably born there.
The house was added to the Victorian Register of Historic Buildings in 1992 with its design unusual in Victoria showing the Irish heritage of its builder. 
Property Observer gathers the buyers were a family from nearby Craigieburn who might seek other parties to pay for its refurbishment.
The preservation of Kelly Cottage had been flagged by the National Trust of Victoria chief executive Martin Purslow who told AAP.
'It's not necessary for the National Trust to own these buildings to look after them."'
Donations can be made online at <a href="https://www.nationaltrust.org.au/vic/Savenedkellyshouse" target="_blank">www.savenedkellyshouse.com.au</a>.
Image courtesy of Wikimedia Commons.
 
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Bushranger Ned Kelly's Beveridge childhood home sold

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A crumbling 1850s Victorian-era cottage in Balmain fetched $2.68 million at auction this morning. There were five bidders for the uninhabitable offering.
The much-publicised two-bedroom, 452-square metre offering at 3 James Lane, Balmain East boasts harbour views through the backyard jungle.
It last sold for $33,500 in 1973, according to research by Property Observer, when bought by the late noted gay lecturer Alexander (Lex) Watson. The price reflected 11% annual growth over the 41 years.
<img class="loading" src="https://bllpbmn.com.au/lt-100-100P4226-2114486844-rsc.jpg" alt="loading">
It sold today to a local family though <a href="https://www.belleproperty.com/41P0963" target="_blank">listing agent Lynsey Kemp, of Belle Property Balmain</a>.
Marketed as an exciting proposition, the 1854 house is positioned in a no-through lane with an expansive rear yard providing direct access to the waterfront via Thornton Park.
Bidding began at $1.8 million. There were 18 contracts issued before the onsite auction.
<img class="loading" src="https://bllpbmn.com.au/lt-100-100P4226-2114497229-rsc.jpg" alt="loading">
Balmain East's average house price is $2 million <a href="/news">according to RP Data</a>. The property was marketed as "an incredible location with water and harbour bridge views, large land size, potential to re-build."
It is listed as being locally significant under the council heritage plan. 
<img class="loading" src="https://bllpbmn.com.au/lt-100-100P4226-2114486080-rsc.jpg" alt="loading">
Lex Watson was born in Perth in 1943, educated at Perth Modern School, and began an arts degree at the University of Western Australia, before transferring to the University of Sydney to complete his honours year in 1963. 
His early subjects included philosophy, which introduced him to the writings of Stuart Mill. 
Lex remained at the University of Sydney all his working life, tutoring and teaching Australian politics. 
He had a long involvement in the Pride History Group, Sydney’s gay and lesbian history group, and was president when he died in May this year. 
Another weekend Belle sale on the Balmain peninsula was when 10 Reynolds St, Balmain sold for $1,363,000. It was $113,000 over reserve, according to the auctioneer Rocky Bartolotto, from Auction Services. The bidding opened at $1,150,000 with four parties taking part in the bidding before an investor secured the property through Lynsey Kemp. 
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Uninhabitable crumbling 1850s Balmain East cottage secures $2.68 million price

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A designer revival of the backyard dunny?
The enduring presence of a turn of the century brick outhouse in the Sydney suburb of Balmain piqued the interest of our property contrarians, Jonathan Chancellor and Margie Blok.
Especially as this brick outhouse stands in the backyard behind a Federation house recently stylishly redesigned by SJB Architects. Over $3 million is expected at its 11 October auction.
While the house is described by the <a href="https://www.belleproperty.com/41P0196" target="_blank">listing agent Monique Dower at Belle Property</a> as striking “a perfect balance between classical architecture and cutting-edge design”, the old thunderbox harks back to the days of previous generations when homes didn’t have indoor flushable toilets. 
Viewed on Google Earth, the dunny is connected to an adjoining building next door, so perhaps its preservation was as much about the neighbourhood harmony.
This week Jonathan and Margie discuss the merits of the rare maintenance of the once ubiquitous building at the bottom of the backyard. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/03/28/jc-silhouette-7.jpg" style="line-height: 1.3em; float: right;">HE SAID:
I'd previously reported on<a href="/news/last-of-the-backyard-paddington-dunnies-fetches-1-million-amid-78-super-saturday-auction-clearance-rate"> the demise of the backyard dunny</a>. But that was in Sydney's east.
I think this updated Balmain dunny is inspired – it is certainly more functional, and far less sexist, than a man’s shed.
With a garden hose hanging off the outside wall, you could pop inside when nature calls while watering the lawn, or indeed, while turning sausages on the barbecue conveniently placed against the adjacent fence.
Would have loved it if they went with a Philippe Starck bowl, but see it's a Geberit instead.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2014/03/28/mb-silhouette-6.jpg" style="float: left;">
SHE SAID:
I’m with Jonathan, this dunny is a winner. Highly practical, it is ideally placed metres from the plunge pool, so dripping wet residents and their guests don’t need to schlep through the house to the powder room inside. Also, it solves the hideous issue of children pissing in pools (a personal bugbear of mine) – no excuses for kids not using the loo here.
If I owned this dunny, I’d add to its authenticity by growing a choko vine over the ripple iron roof, and placing a scary looking plastic spider near the toilet bowl – for I grew up in a house with an outdoor dunny (albeit a flushable one) where spiders resided alongside my father’s garden tools. 
Before modern suburban sewerage systems were built, dunnies were designed for practicality. In the good old days before water flushable toilets, outhouses with cans were placed at a distance from the house for reasons of smell and hygience. And often they were set on a property’s rear boundary with lane access for the removal of waste. 
Collected at night, once of twice a week by men with a horse and cart hired by the local council, the waste was euphemistically referred to as ‘night soil’ – hence the term ‘night soil’ lane was coined. In inner city suburbs these days, former ‘night soil’ lanes have morphed to provide easy car access to a garage, or a pedestrian thoroughfare if the lane is narrow.
Of course the term - as flat as a shit carter's hat - still lives on with surf reports. 
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The designer revival of a backyard dunny? He Said/She Said 

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Whenever anyone needs to know information, it’s likely they head to the internet first.
For novice investors or first home buyers, it can be daunting to come in with little knowledge and needing to start afresh with your research.
We’re always suggesting searching the web and educating yourself first. But where to start?
Property Observer has compiled 10 websites for new buyers to consider:
<ol>
<li>
<a href="https://www.firsthome.gov.au/" target="_blank" style="line-height: 1.3em;">FHOG Online </a>This is a simple website that is incredible useful for Australian first home buyers. Providing a simple drop down box listing each state and territory, clicking one of these will take you to your location’s relevant government branch in charge of first home owner’s grant. For instance, in Victoria this is the State Revenue Office. Each of the websites you are navigated to includes information on grants, how to apply and the concessions that may be available around stamp duty and other costs. 
</li>
<li>
<a href="https://%20http:/realestateview.com.au" target="_blank" style="line-height: 1.3em;">realestateVIEW </a>If you're looking for your first home, you're no doubt familiar with the "buy" section of many different listing websites. The oft-neglected "sold" section as just as important - there, you can get a more realistic idea of how much your dollar can buy (rather than going by the sometimes optimistic price guides attached to homes on the market). There are more than a few listing websites out there, including realestate.com.au, Homely and other state-specific sites. 
</li>
<li>
<a href="https://www.moneysmart.gov.au/managing-your-money/managing-debts/trouble-with-debt/hardship-threshold" target="_blank" style="line-height: 1.3em;">Money Smart </a>Run by the Australian Securities and Investments Commission (ASIC), Money Smart is a really simple to use site that covers everything to do with your financial health. With informative articles on what to do if you’re struggling with your mortgage, how to invest in shares, and even how to choose travel insurance – it’s basically your handbook to staying financially savvy. Their property section isn’t anything to sniff at either. There’s a whole load of information about buying a home and what to expect, as well as investing in property, and you’ll hear from voices you’re likely familiar with already such as Barefoot Investor Scott Pape. There’s also tips on spotting a scam, and guides on getting through major life events, such as having a baby. 
</li>
<li>
<a href="https://home.id.com.au/" target="_blank" style="line-height: 1.3em;">.id (The population experts) </a>Providing information to many local government bodies across Australia, .id (which stands, appropriately, for Informed Decisions) is a one stop shop for demographic information about the suburb you’re considering, from migration statistics, to who actually lives there, and even economic profiles for each individual area. With beautifully presented maps, the latest Census data and forecasts of how the populations are changing, if you want to know about an area, and the areas that will grow, then this is where you should be looking. 
</li>
<li>
<a href="https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/mortgage-calculator" target="_blank" style="line-height: 1.3em;">Mortgage repayment calculators </a>If you think you're ready to buy a house just because you've saved up a deposit, think again. Once you've committed to purchasing a home, you'll have to make mortgage repayments. To get an idea of how much you can expect to pay, most lenders offer calculators where you can input your deposit size, income, household size and monthly expenditure. 
</li>
<li>
<a href="https://www.myrpdata.com/" target="_blank" style="line-height: 1.3em;">Data providers </a>To help you in your search, there are multiple data houses that offer free market information, including suburb medians (to give you an indication of what a house in a certain suburb will cost), vacancy rates (to tell you whether the area's in demand with tenants) and how much previous owners have paid for particular homes. Big data providers include the Australian Bureau of Statistics, SQM Research, RP Data and Residex. 
</li>
<li>
<a href="https://www.asic.gov.au/" target="_blank" style="line-height: 1.3em;">Regulatory bodies </a>State departments of Fair Trading or Consumer Affairs exist to provide you with information about products, businesses, providers and service-people. If you're contracting a builder, using an agent or engaging any third party in the search for your home, it's not a bad idea to search for their name on a Fair Trading website or the ASIC website. If they've done something dodgy enough to warrant a warning to consumers from a regulatory body, you'll know to steer clear. <a href="https://propertycalculator.net" target="_blank" style="line-height: 1.3em;"></a>
</li>
<li>
<a href="https://propertycalculator.net" target="_blank" style="line-height: 1.3em;">Property Calculator </a>Do you want to know rental yields, cash flow, return on investment and a number of other figures quickly, easily and in one place? Property Calculator is the tool for you. It’s simple, a basic layout, and does what it says on the box without any complicated embellishments. 
</li>
<li>
<a href="https://www.houzz.com.au/?irb=1" target="_blank" style="line-height: 1.3em;">Houzz </a>If you love design or The Block, or perhaps you’re just looking for some interior inspiration for your new pad, Houzz is the place for you. With design ideas from top creative thinkers, articles, and all the lust-worthy property pictures you can imagine, it also offers you the ability to keep things in albums, much like Pinterest. You can keep different room styles and storage plans for later reference in your “Ideabooks” as well as ask for advice. It’s all a bit beautiful. 
</li>
<li>
<a href="https://realas.com/home/" target="_blank" style="line-height: 1.3em;">realAs </a>The newly launched app realAs promises to predict the ultimate selling price of homes currently on the market. While the young venture still needs some time to prove itself, making 64% of its predictions within 5% of the end sale price isn't a bad start. If the online valuation tool is as accurate as it claims to be, it could end up saving you a lot of time and help you get a better idea of how far you can stretch your budget.
</li>
</ol>
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