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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Blue Star Group is using a new bespoke augmented reality marketing campaign to market Caxton Property Group’s Chapman Green development in Sydney’s Beecroft.
On <a href="https://chapmangreen.com.au" target="_blank">1-5 Chapman Avenue, Beecroft</a>, the new development offers one, two and three bedroom apartments 200 metres from Beecroft train station. Penthouse apartments with views to the city are also available.
However, buyers now have the ability to experience the upcoming apartments in a new way through a Chapman 4D application, which can be downloaded on iTunes and Google Play.
Blue Star Interactive head David Francis said that the communications future is all about 4D and immersive technology. 
“As the only Australian company that offers an end-to-end augmented reality production solution, Blue Star Group is excited to be pioneering this technology in the property space,” he said.
“3D has long been claimed as a cinematic tool where viewing is enhanced through eyewear that slightly offsets your depth perception. 4D is another level, unbounded by screens. Using mobile devices - and wearables in the near future - 4D literally turns the world into a stage.”
Francis said that they see this technology becoming a key component of marketing plans for Australia’s leading developers and property marketers, and is a powerful tool for informing remote or overseas buyers as they can see the full model from their own location.
It also, however, provides insights into how users behave – including which apartments are being looked at, how long they looked at it for and their geolocation, that build records to inform marketing efforts. 
Property Observer downloaded the free app and decided to give it a spin. The premise sees property buyers pointing their tablet at brochures, press advertisements and marketing collateral around the project. This is then supposed to bring you into a virtual world where specific apartments can be viewed interactively with sound effects and views.
The app is a collaboration between Blue Star Group, McGrath Real Estate and Caxton Property Group. It’s 83.1 megabytes and requires IOS 6.0 or later.
From the office, we <a href="https://www.bluestarinteractive.com.au/CHAPMAN_SAMPLE.pdf%20" target="_blank">downloaded the Chapman Green sample brochure</a>, which was very quickly recognized by the application, with the iPad held landscape. You are then asked to be patient as the virtual world loads, and are given a marketing video of the project to watch in the meantime. Unfortunately, the application crashed as the app tried to load the virtual world and continued to do so. Checking for latest software updates, reducing the amount stored on the device and uninstalling the app and re-installing, this yielded no better result.
Property Observer is keen to know if anyone else has had more luck.
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jduke-EHk3XBmHkn

The 4D age of property hunting: Chapman Green, Beecroft

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GUEST OBSERVATION
Carbon monoxide, or 'the silent killer' <a href="https://www.forbes.com/sites/marijkevroomendurning/2013/08/20/carbon-monoxide-a-silent-killer-are-you-safe/" target="_blank">as it is often called</a>, is a highly poisonous colourless, odourless and tasteless gas that is caused by faulty or unserviced gas appliances.
But as fatal as it can be, it can also be easily prevented with regular maintenance and by recognising the signs and symptoms of when carbon monoxide is present. To ensure you are protected as a property manager, landlord and tenant, here is what you need to know to prevent and quickly identify carbon monoxide poisoning.
What you need to know as a property manager and landlord
The Residential Tenancies Act 1997 requires a landlord and property manager to ensure that rented accommodation is maintained in “good repair”. This includes all gas appliances provided by the landlord that must be safe to use and properly maintained.
Failure to ensure gas appliances are properly installed and safely maintained every two years according to the manufacturer’s instructions, can not only be harmful or fatal to your tenants, it can also cause extensive property damage, expose you both to legal action and jeopardise your landlord insurance.
It’s just not worth the risk, especially when it can be so easily avoided. To protect yourself, your property, your business and your tenants here are five tips to follow as a landlord and property manager:
<ol>
<li>Have gas appliances installed by a qualified gas fitter</li>
<li>Install a carbon monoxide alarm, like smoke alarms these save lives</li>
<li>Have gas appliances serviced every two years by a qualified gas fitter</li>
<li>Ensure there is adequate ventilation around gas appliances</li>
<li>Act on tenants concerns quickly</li>
</ol>
 What you need to know as a tenant
While gas appliances are one of the most effective and energy efficient ways to keep warm indoors and out, there are certain risks you need to be aware of and carbon monoxide poisoning is one of them.
While it is almost impossible to detect, it can give you subtle symptoms and signs that it may be present. Symptoms of poisoning start a like the flu, you can experience headaches, tiredness, nausea and vomiting, which can lead to confusion, unconsciousness and death in high doses.
The challenge is that gas appliances are used more frequently during flu season resulting in the symptoms of carbon monoxide poisoning going undetected or misdiagnosed as the flu. This is why it is vital to monitor your family’s health. If symptoms persist or you improve when you are away from home but feel worse when you return, carbon monoxide may be present.
To protect yourself and your family here are five tips to follow as a tenant:
<ol>
<li>Ask when gas appliances were last serviced by a qualified gas fitter</li>
<li>Request a carbon monoxide alarm, as said above these save lives</li>
<li>Only use gas appliances in the way they are intended, don’t bring outdoor appliances indoors</li>
<li>Report your concerns promptly and in writing. Don’t hesitate to follow up, your safety could be at risk</li>
<li>Know the signs when carbon monoxide might be present</li>
</ol>
 How to identify if carbon monoxide might be present in your home
For the safety and wellbeing of all involved it pays to know the signs that can present when carbon monoxide is in your home or investment property.
If you have:
<ul>
<li>Pilot lights that frequently go out</li>
<li>Excessive condensation</li>
<li>A blue flame that starts to burn yellow or orange</li>
<li>Sooting, or yellow or brown staining around your appliances, ceilings or walls; and/or</li>
<li>Improved health when you are away from home but worsen on your return</li>
</ul>
Carbon monoxide may be present and you need to report your findings to your property manager and landlord immediately.
As a property manager or landlord, if you know the gas appliances in an investment property are due for a service organise a qualified gas fitter to inspect them as soon as possible, you might just save a life.
Frans Sterk is a qualified gas fitter, carbon monoxide specialist and owner of Gaswatch. For more information and safety tips on carbon monoxide head to <a href="https://www.gaswatch.com.au/">www.gaswatch.com.au</a>
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po-LsXgBTHBmX

Carbon monoxide: What you need to know as property managers, landlords and tenants

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With plans for a three-level penthouse to top off the proposed Crown Sydney hotel and casino at Barangaroo, Sydney might soon join New York, London and Hong Kong in the $100 million penthouse club.
The proposed Crown penthouse would occupy the top three levels of the 69 storey complex, possibly appealing to local or international billionaires keen to capture what could be Sydney’s ultimate address.
But while this penthouse comes with an impressive price tag, it’s not that much of a rarity and surprisingly global buyers are well catered for in this heady price bracket. 
A penthouse in the very ritzy London suburb of Knightsbridge <a href="https://www.theguardian.com/uk/2011/apr/16/knightsbridge-flat-sold-for-136m" target="_blank">sold recently for about AU$255 million</a> – in London’s red-hot property market the unfurnished penthouse of 1,500 square metres has views towards Hyde Park and Harrods department store.
Meanwhile, <a href="https://www.bloomberg.com/news/2014-06-02/nyc-woolworth-tower-condo-priced-at-record-110-million" target="_blank">in New York there’s a US$100 million penthouse</a> in a re-vamp of the top levels of the famous Woolworth Building. The seven-level home has captured the imagination of New Yorkers occupying the landmark tower’s top floors with three bedrooms, a double-height great room, a private elevator, and a library in the observation deck. To be marketed as “The Pinnacle”, the asking price equates to what looks like a modest US$11,700 per square foot.
The penthouse is one of 34 apartments in the Woolworth Building’s re-vamp with a total anticipated gross of US$444 million. Apart from the US$110 million penthouse, there are three other apartments with US$20 – $28 million plus price tags. One other at US$15 million and five apartments at what looks like a modest US$5 million.
“The Pinnacle” will span 9,400 square feet with just under 500 square feet of outdoor space and the US$110 million price will be a record for Downtown New York and one of the priciest listings ever to hit the city.
If you are feeling a little left out of the $100 million club, then it’s comforting to know that prices will start at just US$3.9 million for a 1,290-square-foot toe hold on the 44th floor of this iconic building. Speculating about Crown’s possible plans for the more modest apartments in it’s Barangaroo building, Sydney might well eclipse these prices – and so admit mere mortals.
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pchittenden-eLqUUC8TWW

Sydney may be about to join the $100 million penthouse club

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Each week for almost two years we have heard auctioneers proclaim now is a good time to buy as interest rates are low. In the media recently, we now read we are in a housing 'bubble'.
If there is to be any interest rate changes this time around, they may have to be particularly punitive to have an effect on the current Inner Melbourne $1 million plus market.
Why?
Because interest rates are not a direct key driver of the currently strong inner Melbourne $1 million plus market.
In our opinion the current key drivers of this market are
<ol>
<li>
Population/locals/demand with long-term increased “non debt” wealth. When you are not using debt to fund your homes, or if you are using say 50% debt, then interest rate movements do not affect you as much as if you were using 90% debt to fund your home. From our experience of buying 100 plus homes every year, we see that very few inner Melbourne $1 million plus homes are bought on 90% debt ratios. We note that interest rate increases can dampen business demand, which ultimately affects a business-owner home buyer. But that takes some time to have an effect if the business owner is low on debt as many are since the GFC – we are. The Inner Melbourne $1 million plus market has at its foundations a lot of local professionals who are immune from interest rates effecting their businesses such as doctors. The Million dollar super fund that buys <a class="st_tag internal_tag" href="https://marketnews.com.au/tag/property/" title="Posts tagged with Property" rel="tag" style="line-height: 1.3em;">property</a> is now an active phenomenon that wasn’t here pre GFC. And of course there are other tax advantaged investors who create demand and limit supply. 
</li>
<li>
Chinese nationals If you are a Chinese national then Australian interest rates only seem to refocus your home buying activities when there are major changes in the Australian dollar such as 10 or 20 cents rather than 1 or 2 cents. This we see when competing against and acting on behalf of Chinese nationals during times when the Australian dollar is fluctuating dramatically.
</li>
</ol>
We think minor interest rate changes have little effect on the above.
Inner Melbourne home buying demand is a bit like inner Melbourne traffic – demand is so deep and supply so restricted that game changers that worked 20 years ago, such as new freeways, may not work today.
Right now interest rate changes may not change the strength in home buying demand – a new tool is needed and we’re not sure fear of higher interest rates is that “new” answer and besides it’s not new anyway.
Fear is a primal behaviour changer. There’s no question the media talk since the winter break has changed and now has a focus on fear such as bubble, unsustainable, record and so on.
But will fear have the desired effect? And who will affected the most?
Is the inner Melbourne $1 million plus home buying market a more sophisticated, seemingly less debt orientated market, more overseas based than it was pre-GFC? We think so.
The inner Melbourne $1 million plus waterhole has limited capacity and holding back the herd through fear can only work for a while – ultimately we all still need to drink. When you are actively increasing the size of the herd, maybe you need to look there; rather than trying to change the behaviour of the herd, if a sustainable future, especially for younger home buyers is a worthwhile goal.
Are stock levels causing this current market to do what it is doing?
With two big auction weekends coming up – any talk of market strength being solely due to low stock levels will be proved or disproved.
We think it will be disproved as we see an underlying strength across the board – except right at the Top. At the top, the market is not quite as consistent as it is at the lower levels.
There have been consistently well above two bidders per auction each week and that says to us the bidder depth should be able to soak up this first wave of spring stock – meaning buyers will have to compete.
But if we’re wrong then you’ll read it here soon.
Mal writes weekly auction reports, advice and in-depth market analysis on <a href="https://www.jamesbuyeradvocates.com.au/" target="_blank">James' website</a>.
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maljames-vHwm28JUAa

Low interest rates aren't driving the inner Melbourne market

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GUEST OBSERVATION
Was it a case of one strike, two strikes and three strikes you’re out? Or was it a well planned and orchestrated auction campaign?
The agent and auctioneer would lead us to believe it was all planned. Perhaps not the weather, but some agents do believe this is in their control nonetheless.
The opportunity to own a prestigious 900 square metre plus block of land and one that sits on the right side of the road, went to market this weekend. It was the side of the road zoned to the Parramatta council, which has a reputation for being friendly towards development applications. First time on offer and a home built by a master builder himself, was the auctioneer’s pitch.
However, it did come with a surprise.
In this case, the surprise was disclosed to all attendees prior to auction. The gentlemen that once owned the property, peacefully passed away in the home.
From talking to the neighbours and other locals, he was a well know gentleman.
The facts
It is Father’s Day. It is Sunday. The owner had passed away in the home and this deterred many emotional and superstitious buyers.
To top it off, the day was overcast, but in all this, the crowd was filled with known developers and new ones wanting to make their mark.
The auctioneer
The auctioneer Peter Baldwin believed that the campaign was well organised and for the following reasons it made sense to offer the property on Father’s Day. It was a four week campaign and with the demand for this type of property, it made sense to have the auction on this day, he said. It gave time for people to do everything else on the Saturday and attend the auction on the Sunday with less hassles.
At the commencement of the sale, Baldwin even referred that this could well be the best Father’s Day gift for the lucky buyer. Baldwin, when asked what the expectations would be, he noted $900,000 - $1,000,000 as the price guide, and that he would be extremely happy above the $1,000,000 mark. He was also well aware the target market was developers.
The Agent
Conor Arnold from the Professionals, concurred with the auctioneers to the reasons behind the sale taking place on the Sunday. He further added, the property was in a prime location and they were looking for the developers that would not be influenced by the deceased passing away in the home, nor deterred by any other circumstance, such as a Sunday auction.
Conor was very clear and did inform all attendees that viewed the home during the campaign, of the conditions surrounding the sale. Could this have been the main reason why there were few Asian parties registered to bid? This was a question put to Conor. In response, Conor went on to emphasise the development interest of the block and the target audience.
Background and Observations
 
<ol>
<li>
I was made aware of this auction and the conditions by a developer that I knew and would be attending. He believed the home price will fall just above and not within the price guide given to him by the agent. At the million and even $1.1 million price, it was an attractive development proposition for him. The developer commented on the possibility of the home going at a reasonable price due to the surrounding circumstances that would keep Asian buyers away. It would be developers fighting it out toe to toe without the overzealous mix of buyers adding fuel to the competition. 
</li>
<li>The agent in this case went the extra mile in the presentation and the preparation of the home. Was he trying to entice the emotional buyer even still, although the real targets were the developers? I believe he was, and I can say, good on him for presenting the property in the manner it was presented in. Great job. </li>
<li>It is my personal opinion that the property was never worth under the million, regardless of the circumstance surrounding the sale. From when I was made aware of the sale I told my developer friend; forget what you have heard and have been told, the property will sell for between $1,150,000 - $1,200,000.</li>
</ol>
 
We spoke to an architect, who believed that two detached, four bedroom homes with double lock up garages could be built on the block. Each alone would sell for $1,200,000 respectfully.
Who bought the home?
It was interesting to note that the successful bidder was the next door neighbour. An Asian family that have made offers on other homes adjoining to this home and theirs.
What will they do with this home? They did not disclose what their intention was, but one of the neighbours told our crew an offer was made on his property two doors up for $1,300,000-$1,400,000 but he has since refused the offer. He said however, that he will sell at the two million dollar mark. Wishful thinking? If you base it on landbanking options for future development maybe not.
It is interesting to note that developers come in all shapes and forms and not all Asian families are deterred, nor superstitious, about what happened in a home. Perhaps at the right price, we all forget superstition and religion. It is interesting to also note that the neighbour from two doors up had been made an offer by the purchaser and this is at $200,000 more than what they just paid for the current property. 
{qtube vid:=vXEX-mzV6A8}
EDWIN ALMEIDA is managing partner and licensee-in-charge of <a href="https://www.just-think.com.au/" target="_blank" rel="nofollow">Just Think Real Estate</a>.
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ealmedia-arK4DBYLjS

A deceased estate with development potential: How did its Father's Day auction turn out?

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<h1> </h1>
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/58495/width668/838s2szm-1410216648.png" alt="">
<img src="https://counter.theconversation.edu.au/content/31345/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;"> Charis Palmer is deputy business Editor at The Conversation.
Emil Jeyaratnam is multimedia editor at The Conversation.
This article was originally published on <a href="https://theconversation.com" target="_blank" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12px; line-height: 1.3em;">The Conversation</a>. 
<h3 class="fn" style="line-height: 1.3em;"> </h3>
<h3 class="fn" style="line-height: 1.3em;"> </h3>
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Seven things keeping house prices high: Infographic

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GUEST OBSERVATION
Industrial property has experienced a strong return of 12.1% over the year to 30 June 2014. This exceeds the returns from the other two major commercial property sectors being retail and office property which generated returns of 9.8% and 9.0% respectively.
The strength of the industrial property sector has resulted from strong demand for distribution and warehousing services generated by increases in retail spending in the Australian economy. New supply of industrial property has been significant and has restricted rental growth over the year to June 2014. Over the year to June 2014 industrial property generated an income return of 8.4%, while retail and office property generated lower income returns of 7.0% and 7.2% respectively.
Capital has flowed into the sector from investors seeking high yields. Industrial property offering yields of 8.4% is attractive. Strong investor demand has driven a rise in industrial property valuations generating capital growth for the year of 3.4%, which is greater than both retail and office property. A compression of capitalisation rates of industrial property occurred from 8.5% in June 2013 to 8.2% in June 2014.
Performance from industrial property over the longer term has also been positive. In chart one is shown the growth in value of $100 invested over 20 years from June 1994 to June 2014 in the retail, office and industrial property sectors.
Chart one – Growth in investment – Retail, office and industrial property sectors
 <img src="/images/2014/09/10/lev%20sept%2010%20one.png" alt="">
Source: PCA/IPD.
It is shown in chart one that industrial property generated a higher cumulative return than any other major commercial property sector over a 20 year period to 30 June 2014. Industrial, retail and office property generated returns of 11.5% per annum, 10.8% per annum and 9.4% per annum respectively.
The income return for industrial property over the long term has also been greater than that of retail and office property. Industrial property income return was 9.0% per annum over 20 years to 30 June 2014 while retail and office property income return was 7.4% per annum and 7.3% per annum respectively. Rental yields on industrial property are higher than retail or office propert,y reflecting the greater ease in developing new industrial property and the tendency for single tenants in assets.
Capital growth for the industrial property sector was 2.3% per annum over 20 years to 30 June 2014, while capital growth for retail and office property was 3.2% per annum and 2.0% per annum respectively. The income return generated by industrial property over 20 years to 30 June 2014 has more than compensated for the lower capital return from industrial property compared with retail property.
Demand for distribution and warehousing services is expected to grow over the medium term from increased retail spending and growth in internet retail sales. Industrial property is a key component of internet retail sales which require efficient delivery systems through technology in logistics. Rents are expected to remain stable as new supply emerges. Rental yields on industrial property remain attractive being 4.7% higher than Commonwealth Government bond yields. The yield premium may shrink as the Australian economy strengthens and interest rates rise.
Strong investor demand for industrial property is expected, maintaining upward pressure on prices. Capital growth will be positive as a result.  
Market conditions will be favourable for industrial property in the medium term with a combination of demand for warehousing and distribution services underpinning rental income and investor demand for high yields driving growth.
Lev Driker is an analyst at <a href="https://atchison.com.au/" target="_blank">Atchison Consultants</a>.
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Industrial property delivering stronger returns than retail or office sectors

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The Crazy Lobster Restaurant and Cafe has secured a five-year lease at 191 Darling Street, Balmain, Sydney.
It was at a gross annual rent of $105,600 through Ray White’s Tim Morrison.
The property is a 94-square-metre restaurant in a sandstone building on Darling Street that sits 60 plus people. 
Morrison said Crazy Lobster head chef and restaurateur Sasha Alexander currently operated a number of other restaurants in the area.
“Mr Alexander felt there was a gap in Balmain’s restaurant market for a unique menu offering a fusion of cuisines,” he said.
“Crazy Lobster’s menu will comprise a mixture of rustic Italian and French inspired breakfasts as well as handmade pasta and seafood for lunch and dinner.”
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Crazy Lobster leases in Balmain

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Charter Hall Group has teamed up with the superannuation fund HOSTPLUS to buy a $603 million portfolio leased to the Woolworths-backed ALH Group.
The sale and leaseback deal involves 54 freehold properties on initial lease terms of 20 years, plus options.
The sale reflects an initial yield of 6.8%.
The majority are located in Victoria and Queensland.
The ALH Group is 75% owned by Woolworths and 25% by the Bruce Mathieson Hotel Group.
It operates some 329 venues and 545 retail liquor outlets across Australia.
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AHL pubs sold to Charter Hall-HOTPLUS syndicate

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Victoria’s largest homebuilder, Simonds Group, has hired brokers Moelis &amp; Co and Morgans Financial in preparation for the company float on the ASX listing later this year.
Simonds’ founder and owner, Gary Simonds, has been in the business for 65 years, while for most of the past decade is has been run by chief executive Paul McMahon.
Victoria’s largest home builder had around 2,100 housing starts in the 2013 financial year, according to Housing Industry Association data.
It ranks as the country’s fifth largest home builder in 2012-13, behind Western Australia’s BGC, Alcock Brown, Metricon Homes and Harry Triguboff’s Meriton.
Simonds Group has about $600 million annual revenue.
The Australian Financial Review's Street Talk column suggests the float will value the company at about $300 million.
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