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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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The long-time owner of 160-162 Lygon Street, Carlton secured $3.66 million at recent auction, just shy of the strip's all-time record.
The 684 square-metre commercial building came with a six-year lease to long-term tenant, BC’s Bar Centrale at an annual rental of $166,472, reflecting a 4.5% rental yield.
Teska Carson handled the auction for the vendor, the Bussolaro family who had held the ­property for 45 years.
Located on the corner of Argyle Place East, the three-storey building includes a ground floor café and bar, a function room with a commercial kitchen and a caretaker’s unit.
<a href="https://www.realcommercial.com.au/property-retail-vic-carlton-501173731" target="_blank">The 250 square-metre site</a>, zoned Commercial 1, includes an 11-metre frontage to Lygon Street.
In absolute terms, the highest price paid since 2008 was $3.71 million in 2009 for 350 Lygon Street, a two-level corner site measuring 173 square metres, equating to $21,445 per square metre.
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jchancellor-FAypfDUnLy

Lygon Street retail sale at $3.66 million

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GUEST OBSERVATION
The Lazarus of the Australian economy – consumer spending – seems to be starting to recover from the dead zone created by budget related shocks. But how long can it last? The long-term prognosis remains troubling.
A growth recession?
As I am sure all readers will recall from their school days, an oxymoron is a combination of contradictory words. Cruel kindness, for example. The term comes from the Greek for ‘pointedly foolish’, but those in Australian retail property may be feeling that the somewhat oxymoronic-sounding ‘growth recession’ is more serious than that.
Virtually none of the federal government’s cuts and increased costs are likely to pass through the Senate. This is good news for the retail sector; if some of these measures were to make it through annual household income would drop by over $600, causing big spenders on low to medium incomes to think twice about splashing out on the next big purchase.
While a small bounce back in consumer confidence has seen a slight pick-up in retail sales over the last few weeks, this may not be enough to save spenders from having to tighten their belts and save the retail property sector from pain. For over five quarters Australia has registered annual growth at less than 1%, which is disturbingly news considering Australia’s population growth stands at 1.8%.
It’s almost like a recession on an economic growth per capita basis and that is why things are, and are likely to remain, tough for retail.
GDP per capita is moderating…
<img class="alignleft wp-image-6871" src="https://www.btim.com.au/media/GDP1.png" alt="GDP" width="550" height="306">
GDP per capita: % change quarter on quarter chain volume measures. Source: BT Investment Management.
…affecting retail sales in 2014
<img class="alignleft wp-image-6870" src="https://www.btim.com.au/media/Retail-Turnover1.png" alt="Retail Turnover" width="550" height="295">
Retail turnover (SA). Source: BT Investment Management.
There’s a strong warning signal for retail sales
Over the past three years interest rate cuts have prompted some improvement in retail sales. Even with rates kept at historic lows this streak won’t continue. Australians just aren’t interested in borrowing – they’re keeping 24 months ahead of their mortgage repayments and getting better at saving. Consumers have already stopped spending on big ticket items like overseas holidays and cars – new car sales are falling 3% year on year.
Looking to the future, there’s one warning signal investors must not miss – household income growth has dropped from 11% in 2007 to just 3.5% in 2013. This typically correlates with a 2% drag on retail sales, which, closely followed by falling rents, weakens retail property yields.
What it will take for conditions improve?
There’s still a world of opportunity in retail property if you know where to look. Very high population growth in Australia (the highest in the developed world) ensures continued demand for quality shopping centres, but there are some major challenges ahead – rising online sales, the growth recession and lacklustre pay rises will be compounded when interest rates rise once again.
For a sustained increase in retail spending and a retail property boom, we need to see improving income growth, solid house price growth and growing confidence in the economy and the federal government.
Julia Forrest is REIT portfolio manager at <a href="https://www.btim.com.au" target="_blank">BT Investment Management</a>.
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jforrest-H4ErufrJeZ

Major challenges remain for retail property

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NAME: Philip Stephens<img src="/images/2014/09/03/Philip-Stephens-profile.png" alt="" style="float: right;">
POSITION: Director, industrial
COMPANY: Colliers International
OFFICE LOCATION: Level 20, Central Plaza One, 345 Queen Street, Brisbane.
How long have you been in the industry? 
10 years
What's happening in the area you specialise in? 
I specialise in Brisbane's industrial market. There has been a number of large logistics users take advantage of sharp rental deals. With these users vacating it has resulted in a large supply of older style buildings, many of which are in the process of being refurbished for their next lifespan.
Activity from both small investors and large REITs has been strong, with some investors buying older assets with leasing risk and benefiting from the rental uplift.
Describe the most interesting commercial property you have worked on? 
A World War Two Igloo which I sold for Thiess Mining for $6,200,000. It was a complicated lease back situation with the building being heritage listed.
What are the ingredients to being successful in your job?
Hard work, persistence and first class market knowledge.
What aspects of your role do you enjoy the most? 
Meeting a variety of business people and understanding how they grew their business.
Where would you invest a spare $750,000?
Either an industrial building with some leasing risk or the share market.
Which football team do you support? 
Quennsland Reds.
What's your favourite app or techno gadget?
<a href="https://www.strava.com/" target="_blank">Strava</a>.
How do you use social media?
I primarily use LinkedIn and Instagram. <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/philip-stephens/30/565/40" target="_blank">LinkedIn </a>is a very useful tool I use regularly as it assists me in communicating with a range of different clients and allows me to promote other industry groups I am a part of.
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jrichardson-uRX5hFdKfN

In profile: Colliers International's director, industrial, Philip Stephens

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The rampant winter Sydney and Melbourne residential auction markets will trigger the RBA Governor to return to jawboning. 
The bubble popper-in-chief Glenn Stevens will wisely be taking whatever opportunity to douse these red hot property markets with a strengthening of the language around the market's intensity.
Especially surrounding the Sydney growth, which while much of it catch-up, is looking overly exuberant in <a href="https://www.rba.gov.au/chart-pack/household-sector" target="_blank">today's RBA chart pack</a>.
<img src="/images/2014/09/03/rba%20chart%20sept%203%20one.gif" alt="">
Without success the RBA will find itself in the circumstance where they will need to raise rates when most the the country's business and property markets aren't resilient enough to cope.
As Westpac's Andrew Hanlan put it the record low interest rates are a key tailwind for growth, especially housing, but the economy remains constrained by a number of headwinds.
Of course jawboning hasn't worked with the RBA's efforts to get a lower dollar so what chance the bank can assist in having house prices avoid reaching bubble territory?
First home buyers aren't big participators in the current market, so the RBA's aim will be family home upgraders with record low mortgage funding and the ever emerging mature SMSF property investors.
<img src="/images/2014/09/03/rba%20chart%20sept%203%20two.gif" alt="">
Repeated references to the history of house prices that fall as well as rise will be the RBA's message.
I am old enough to remember the last recession - with property crash - in the early 1990s, but subsequent generations aren't.
There are still plenty of buyers who got caught in the 2003/2004 hype - and some of these buyers that are still underwater.
Since then there have been a series of dips, the biggest after the global financial crisis.
And then another small dip in 2010.
Only last weekend it was evident that the Australian cricket captain Michael Clarke had seemingly been over-exuberant in <a href="/expert-insights/buying/no-bid-michael-clarke-lilli-pilli-home-auction-result">his 2006 Lilli Pilli purchase</a>, as it failed to sell on its second subsequent auction campaign.
Yes mostly in regional Queensland and Tasmania, but even in the seemingly recovering strong markets, the 2014 March quarter RP Data Pain Gain reports plenty of loss taking. They put loss taking at a 7% across the country.
But the prospect of over paying can too often be overlooked in the herd-like emotional auction mentality that is standard Saturday fare for home buyers. And where else do diversifying investors go for the potential gains and income that property promises with extraordinary tax benefits?
<img src="/images/2014/09/03/rba%20chart%20sept%203%20three.gif" alt="">
There's no reckless rush to credit showing up in the RBA house finances chart and interest paid is demonstrably dipping in these unusual times.
Do the punters listen anymore?
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Standby for RBA jawboning on overheated Sydney and Melbourne auction markets

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David James Cacciola has been banned by ASIC from engaging in credit activities for the next nine years. Cacciola, of the Gold Coast, Queensland, is sole director of Lending Services Australia Pty Ltd.
Following an ASIC investigation that cancelled the credit licence of the company on 14 April 2013, they found that he had been providing documents to lenders knowing, or reckless to, the false or misleading nature of the information and documents.
He was acting as a broker for the company.
In July 2011 to October 2011, he assisted his wife applying for two loans worth more than $600,000.
He has the right to appeal.
Deputy Chairman for ASIC, Peter Kell, said that mortgage brokers who knowingly or recklessly submit false loan documents will be held to account.
“This is the latest in a series of actions that ASIC has taken as part of a crackdown on loan fraud,” he said.
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jduke-EHk3XBmHkn

Gold Coast mortgage broker given nine year ban

Suburb spotlight: Neutral Bay's demand rising but potential growth remains

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With strong results for dwelling value growth being recorded in the latest RP Data Core Logic Home Value Index, RP Data’s research director Tim Lawless suggests that growth might be better outside of the ‘big’ capitals.
At present, Lawless noted that investors are concentrated across Sydney and Melbourne, where the markets have proven strong capital gains but now lower yields. In fact, yields are currently so low in Sydney that <a href="/expert-insights/buying/sydneys-16-2-year-on-year-growth-straining-yields-rp-data">they’re on track to race below Melbourne</a>.
“Potentially there are better investment returns to be had in the smaller capital cities where the growth trend is less mature and yields are also healthier,” he said.
While Sydney and Melbourne <a href="/news/vic/melbourne-records-strongest-august-2014-quarterly-growth-rp-data">recorded particularly strong increases in prices over the last growth cycle</a>, other capitals have remained subdued.
“Looking at the remaining state capitals over the same time frame, the next best performer was Perth where values are now 15% higher, followed by Adelaide at 9.9%, Brisbane with 5.3% and Hobart where dwelling values are actually 1.5% lower,” he said.
While yields are compressing in most capital cities, Adelaide and Hobart’s apartment markets have actually moved higher for yields over the past 12 months.
However, while Lawless advisers investors look at these smaller capitals, it’s clearly not a common approach quite yet.
“With yields so low in the cities where values are seeing the largest capital gains, it is clear that investors remain very much focussed on value growth rather than yield,” he said.
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Investors should look to smaller capital cities for returns: RP Data

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A derelict 135 year old cottage at 336 Burnley Street in Richmond, in inner city Melbourne, is set to sell for $2 million plus as a development site. 
The property has planning permission for the construction of four townhouses, one of which will have to incorporate the rundown heritage listed cottage.
<a href="https://www.realestate.com.au/property-residential+land-vic-richmond-200964519" target="_blank">Biggin &amp; Scott agent Allan Cove who has the 12 September auction</a>, last sold it in 2012.
The worn-out weatherboard house on a large 779 square metre block fetched $1.621 million at its executors' 2012 auction with five competing developer syndicates taking the bidding beyond its $1.5 million reserve.
It is across the road from the Grand Hotel between Bridge Road and Swan Street with rear frontage to Canterbury Street.
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135 year old Richmond cottage on development site for auction

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GUEST OBSERVATION
As has been widely reported, the Sydney auction market continued its strong performance throughout August.
Clearance rates have remained strong with consistent 80% plus weekly results.
In addition to strong auction results we have also seen a continuation in the high variance between real estate agents’ auction price guides and the final sales result.
In July we reported that agents were underquoting on average by 13%, according to the auctions we have monitored over the year to date.
<a href="/expert-insights/buying/add-12-to-sydney-auction-estimates-to-secure-purchase-intelligent-property-services">For the month of August</a> IPS observed a similar level of underquoting and recorded an average variance of 17.6% (however this was skewed upwards by a few out of line sales).
This month IPS observed 19 auctions, all of which sold for more than the agents indicative guide.
The results ranged from 2.78% to 45% out and covered locations from <a href="/news">Queens Park</a> to <a href="/news">Lakemba</a>.
 One doesn’t have to look far to obtain hard and fast examples of this underquoting. 
While the variance is up on last month’s results, we are confident that this was skewed by a few sales that were included in the data. 
The recent sale of several Department of Housing properties in Sydney’s <a href="/news">Millers Point</a> have raised a number of eyebrows because their sales result was so far out of line with their sales agents’ expectations. 
Marketed by different sales agents both properties sold for significantly more than the official price guide quoted.
<a href="/expert-insights/buying/vacated-millers-point-four-level-terrace-fetches-1-911-000-at-private-state-government-auction">119 Kent Street</a><a href="/expert-insights/buying/vacated-millers-point-four-level-terrace-fetches-1-911-000-at-private-state-government-auction"> sold</a> for $1,911,000 and <a href="/expert-insights/buying/the-second-millers-point-offering-fetches-2-56-million-for-state-government-housing">29 Lower Fort Street</a><a href="/expert-insights/buying/the-second-millers-point-offering-fetches-2-56-million-for-state-government-housing"> for</a> $2,560,000, 35.5% and 45% more than their official guides respectively. 
Another notable sale was the freestanding house at <a href="https://www.realestate.com.au/property-house-nsw-queens+park-117619607" target="_blank">53 Alt Street, Queens Park</a>. It sold for $2.51 million after a revised guide of $2.2 million. It was originally $2 million plus earlier in the campaign.
 It’s not just renovation opportunities that are exceeding guides; this beautifully presented warehouse conversion at <a href="https://www.realestate.com.au/property-apartment-nsw-chippendale-117517043" target="_blank">13/92 Shepherd Street</a> in inner city Chippendale sold for $1,426,000 – a whopping $426,000, or 31.5%, over the guide.
Our prediction is, that with continued record low interest rates and pent up buyer demand off the back of slightly subdued winter stock levels, we’ll see a buoyant spring selling season ahead. 
It will be interesting to see which direction agent price guides trend as the public becomes increasingly wise to this practice.
Ramon Mitchell is the general manager of <a href="https://www.ipsg.com.au" target="_blank">Intelligent Property Services</a>, a specialist residential property advisory firm with buyers advocacy division.
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RamonMitchell-pSgrKyb4ZZ

Will agents adjust price guides ahead of buoyant Sydney spring auction season?

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Residential property is virtually a national pastime for many Australians around the country.
In my native city of Sydney, residential property is arguably the number number one topic of conversation at BBQs, dinners out, family gatherings, and office water coolers.
So it is no surprise then that property conversations and public discourse over the past 12 months have focused on the topic of weakened housing affordability as a (possible) result of an increase in foreign investors in the market.
The challenge in discussing it properly, of course, is that up until recently whilst some initial figures have been published by the RBA and a couple of news outlets, there hadn’t been a thorough market analysis of affordability based on foreign influence.
However the federal government has listened to concerns and as a result it has commissioned an inquiry into foreign investment in Australian residential property.
Though the study is ongoing and results are yet to be released, the initial feedback was that foreign investment in Australian residential property has not been a major contributor to any ‘price bubbling’ occurring in capital city markets throughout the country.
Further perspectives outside the governmental inquiry however, have been coming to light in recent weeks and it has been interesting to hear the views put forward.
What is certain right now, however, is that residential property buying is strong in many major capital city markets around the country.
Influential factors such as limited land supply in high demand capital city suburbs (both inner, middle, and outer ring ones), current home owners blocking higher-density construction within city limits areas, and a low interest-rate environment are all stimulating a buying frenzy among locals and foreign investors alike.
These factors have collectively led to a major values growth ‘boom’ period in several markets.
The elephant in the room though is the notion of the foreign investor – in particular the Chinese investor – who are <a href="/news/foreign-buyers-at-record-9-5-of-established-property-demand-nabs-alan-oster">accounting for small but rapidly increasing percentages</a> of all residential property buyers.
However, this is where the research may be coming up short. Like asking the question ‘which came first, the chicken or the egg?’, looking at sales data volumes over time may not account for the buyer's motivations for purchasing the properties they did; for the prices they did; during this time.
As a Sydney native who invests in this city (and is also currently looking for a home to purchase too), I’ve been privy to sentiments expressed “straight from the horses’ mouth” recently from both colleagues in the industry and other buyers ‘on the ground’.
When I am out at open home inspections most weekends, I’ve been speaking to other buyers with interest, hearing what the feedback is. It is certainly true that local buyers are ‘believe’ that foreign investors are having a significant impact, despite concrete official data confirming it.
So, the ‘real’ impact of more foreign buyers in the market could actually be a placebo-like effect. It is likely that the ‘scary thought’ of all the foreigners pushing locals out of the market is the actual catylst for locals pushing themselves out of the market! Or, the ‘FOMO’ (Fear of missing out) effect.
Regardless of your personal position or belief (however well or poorly researched it may be) on foreign investment jacking up prices for locals, the reality is that there are too many contributing factors to any property market’s growth (or indeed, lack of growth) at any one time to be sure.
One area where I do have a concern is in the ‘official’ data. One example here may be that foreign buyers (Significant Investor Visa or otherwise) are not permitted to purchase established dwellings – they are supposed to only be purchasing newly built stock.
However, most in the industry know that this is just not happening and is likely to go unchecked. Foreign buyers, especially from non-western cultures, are using one of the oldest group-buying strategies in the books, consortiums or shared-buying, to crack in to the established property market.
Article continues on the next page. Please click below.
 
<hr class="system-pagebreak">
Buying through a consortium means that a distant family member or family friend who is an Australian citizen (and thus not counted as a foreign buyer) may aggregate funds from several other family/friends together who themselves are not Australian residents or citizens.
This enables for the purchase of established houses on land (often without the need for a mortgage as the funds collected between the group/consortium are usually enough to buy the house outright).
As someone who is looking for a house (not a unit), on a decent size block of land in Sydney, I can confirm that I’ve seen this in practice during inspections.
How do you I know? I’ve been engaging in conversations with would-be buyers at inspections who have told me they're using this strategy themselves.
Whilst I do not take personal issue with the notion of foreign investors buying established houses (provided that the scale/extent of this permitted does not substantially prevent local buyers from entering the market), I do take issue with the official inquiry overlooking these purchases.
Consortium-style buying is often unofficial and unstructured, making them very hard to trace and keep a paper trail on. The Australian culture of group-buying (when it actually does happen – which is highly infrequent) is all about drawing up official legal contracts, split loans, and so on (at the point of property purchase – which of course helps to keep more official records on the group buying going on).
Foreign group-buyers tend to have just one person or couple (who have either residency or citizenship status) gather all the funds separately and externally, who then brings these to the solicitor as one lump sum in cash at the point of purchase.
This makes the true nature of the transaction highly difficult to trace locally and will likely not be reflected in any official findings. That said, China’s government has recently put rules in place to make it harder for Chinese nationals to bring funds overseas for investment purposes.
It will be interesting to see the findings of the inquiry as these become available. What will be more interesting though, will be to see if any governmental action is taken thereafter.
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