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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Australia’s biggest mortgage broker, AFG, processed more than 7,600 mortgages worth more than $3 billion in May, recording its best month since March 2009.
The bump was helped by an increase in borrowers from WA, more loans from property investors and the average mortgage size rising from $383,000 to $393,000.
The May sales figures fell just short of the previous high of $3.15 billion from 8,988 loans mortgages written in March 2009, when the cash rate was at 3%, its lowest point for RBA records going back to 1990, with banks charging an average standard variable rate of around 5.8%.
In March 2009 the average size of a mortgage was $350,000.
The May figure was a 32% increase on the $2.27 billion (5,900) worth of mortgages processed in April – AFG brokers write one in every 10 mortgage processed in Australia.
In achieving its best month in more than three years, AFG bucked the overall national trend of stagnant mortgage growth, with the RBA recording only a 0.4% increase in housing credit provided over April and housing credit up just 5.3% for the year – the lowest growth since 1977.
Home loans processed for WA borrowers by AFG brokers hit an all-time high of $683 million over May, second only to NSW ($812 million) with Victoria ($641 million) and Queensland ($627 million) trailing behind. 
The percentage of mortgages arranged for property investment purposes increased from 35.2% to 37.1% over the month while those refinancing declined slightly from 36.2% to 35.8%
First-home buyers accounted for 15.8% of all mortgage sold – unchanged from April but well up on the 13.2% recorded a year ago by AFG brokers.
According to Mark Hewitt, general manager sales and operations, the automatic assumption that the May rate cut is behind the big increase tells only part of the story.
“We’re probably also seeing more borrowers turn to brokers to help them get the best deal in an increasingly competitive and complex market,” Hewitt says. 
“In addition, May is generally a stronger month, after the public and school holidays in April. 
“These figures do not conflict with the softening house price data published late last week. 
“Mortgages are processed before sales are confirmed, so our data is more a snapshot of where we are right now. Reduced property prices and interest rates are bringing more people back into the market, but anecdotally, many potential borrowers are still worried by both the offshore news as well as weakening conditions at home,” he says. 
Fixed-rate home loans remain near all-time highs (19.7%) “confirming continued borrower uncertainty” with lenders outside of the big four banks picking up 33% of AFG mortgage commitments in May.
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AFG processes highest volume of mortgages in three years in May

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There are many residential investment opportunities in NSW under the magical $500,000 mark, according to the Westpac Property Report, a quarterly snapshot compiled by valuation firm Herron Todd White (HTW).
Herron Todd White CEO Brendon Hulcombe says the report “challenges the notion that owner-occupiers and investors have limited choice on a tight budget when it comes to purchasing property”. “The slowdown impacting markets over the past 12 months has provided exciting buying opportunities,” Hulcombe says.
“Quality properties that a few years ago would have been well beyond this price bracket can now be secured for $500,000, in some cases with change to spare.”
HTW’s NSW state-based team has identified opportunities under $500,000 in western Sydney, in the Newcastle and the Hunter region, on the central coast and on the mid-north coast where yields can be as high as 8% –  well above the savings rates being offered by banks.
Sydney
In the capital city, a budget of $500,000 limits investor options to units or lower-quality houses in the city’s western suburbs, according to HTW.
Unless investors have an underlying need to own a house in this region, HTW valuers suggest considering the apartment market, which will “generally deliver a wider choice of locations, stronger rent returns and more stable capital growth.
“If we focus on the apartment market, the central western suburbs of Auburn and Parramatta offer the strongest yields, typically between 5.4% and 5.7%. The area’s median price of $370,000 will fund a reasonably modern 2-bedroom apartment.
“For investors seeking longer term capital growth, inner ring suburbs like Neutral Bay, Leichardt and Randwick have historically recorded stable price gains, and this is expected to continue over the coming years,” HTW says.
Hunter region and Newcastle
According to HTW, there are good investment opportunities under $500,000 across the Hunter region.
“Rental vacancies are very low at 1.5% and rental growth is strong, taking many properties close to being cashflow positive.
“It is worth focusing on areas with proximity to major employers, as these offer year-round tenant demand. Waratah, Jesmond and Shortland for instance are all close to either major Newcastle hospitals or the University of Newcastle,” says HTW.
HTW picks the Hunter Valley towns of Singleton, Rutherford and Aberglassyn as good investment opportunities, with all benefiting from the strong mining sector with “very healthy” rental growth.
“Plenty of new housing stock is becoming available, and these properties offer more generous depreciation allowances than older dwellings,” HTW says.
Central coast
The median house prices for Gosford and Wyong is currently $400,000 and $325,000 respectively, which gives investors with a $500,000 budget a multitude of options on the NSW central coast, notes HTW.
The investment opportunities vary widely, from a house in Woy Woy or a unit at Umina to a holiday letting in Avoca.
NSW valuers from HTW say there has been a noticeable escalation of investor interest in San Remo, Blue Haven, Narara, Umina Beach and Woy Woy, with yields ranging from 4.5% to 6%.
Mid-north coast
HTW advises investors consider the option of purchasing two or more properties at the lower end of the market, where “rental vacancies are very tight, yields are high and there is greater potential for capital growth”.
“As a guide, in Port Macquarie and Forster it is possible to buy an older-style two-bedroom unit close to the beach for less than $250,000.
“Alternately, pre-1975 houses close to the town centre or modern villas suitable for retirement can be purchased for under $350,000,” says HTW.
In the small country towns of Taree and Kempsey, HTW says investors can afford to purchase three dwellings and recommend targeting prime locations – “notably older houses on large lot sizes”.
“The older part of Taree West, which was developed pre-1985, offers excellent value for money with a good selection of houses currently listed for sale for less than $250,000.”
Some former Department of Housing properties can be purchased for less than $125,000. These properties are returning rental yields in the order of 7% to 8%.
HTW valuers also note that in the current weak market both investors and owner-occupiers stand to benefit from a growing number of forced sales.
“This is being exacerbated by an oversupply of modern high-rise units in Forster, and weakened demand in the $450,000-plus price range throughout the greater Taree area.”
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High-yielding investment opportunities for under $500,000 in NSW include western Sydney and regional areas: HTW

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Eight apartments in The Rose Group’s $2 billion Breakfast Point development in Cabarita sold over the weekend, with buyers cashing in on NSW stamp duty concessions before they end in less than a month. Four of the sales were to first-home buyers.
All eight properties bought were one-bedroom-plus-study apartments and sold below the $600,000 threshold for accessing the <a target="_blank" href="https://www.propertyobserver.com.au/residential/time-running-out-for-first-home-bonuses-and-stamp-duty-concessions/2012052854863">NSW home builders’ bonus</a>, which ends on June 30.
A spokesperson for The Rose Group told Property Observer three first-home buyers had purchased in the recently released Sirius building (below) and one in the previously  released Scarborough building (second photo).
<img width="470" src="/images/stories/2012/06/breakfast1.jpg">
<img width="470" src="/images/stories/2012/06/breakfast2.jpg">
The NSW home builders’ bonus provides full exemption on stamp duty for new homes where the value does not exceed $600,000 and also applies to vacant land up to $400,000.
The scheme is available to everyone, including investors, who purchase a new house or apartment. For homes already under construction, a partial stamp duty reduction of 25% is available up until June 30.
According to Bob Rose, group chief executive of the Rose Group, about 170 buyers in Breakfast Point have claimed the stamp duty concession to date. He says many of these are first-home buyers.
Rose told The Australian Financial Review he was not worried about the ending of the stamp duty rebate impacting on sales in the masterplanned development.
Upon completion in 2016, the 52-hectare waterfront development will accommodate 1,865 homes and house up to 5,000 people.
In May last year, the $2 billion project reached the $1 billion sales milestone, with more than 1,300 homes and apartments sold over the past 11 years by its joint developers Rose Group and Cbus Property.
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Breakfast Point buyers cash in on NSW builders' bonus before it expires July 1

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Auction clearance rates have been higher in 2012 than they were over the second half of 2011, but they remain quite low on an historic basis, reflecting the overall weak housing market conditions.
Despite the fact that capital city home values have fallen by 0.7% over the first four months of 2012, there has been an improvement in capital city auction clearance rates. Auction clearance rates provide one of the timeliest indicators of market sentiment and they have averaged 48.9% week-to-week in 2012 compared to 46.5% week-to-week over the second half of 2011.
The improvement in clearance rates has only been a subtle one; however, over the second half of 2011 auction clearance rates across the combined capital cities broke the 50% barrier only once. Over 2012 to date, auction clearance rates have been above 50% on nine separate occasions. Although there has been an improvement in clearance rates, they remain well below those levels recorded in 2009 and 2010, when property values were increasing quite strongly across most capital cities and, in particular, across the two markets in which auctions are a more popular form of sale (Melbourne and Sydney).
Click to enlarge
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As a result of the overall improvement in auction clearance rates, most individual capital cities have also typically been recording higher success rates at auctions. In Australia’s largest auction market, Melbourne, clearance rates have averaged 52.8% this year compared to 50.8% over the second half of 2011. In Sydney, clearance rates averaged 50.2% over the second half of 2011 compared to 51.9% over 2012 to date. These two capital cities accounted for more than 81% of all capital city auctions over the 2011 calendar year. Across every other capital city, except for Hobart and Canberra, the average auction clearance rate this year has been higher than it was over the second half of 2011.
Click to enlarge
<a href="/images/stories/2012/06/rpjune52.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/rpjune52thumb.gif"></a>
Although auction clearance rates have improved over 2012, the average number of properties going to auction has reduced. There are, on average, 17% fewer properties being taken to auction each week this year than there were over the second half of last year. Although auctions are proving to be more successful than they were last year, fewer auctions are taking place. This is, though, somewhat reflective of the fact that the total volume of properties available for sale has been at lower levels this year than it was over the second half of 2011, as well as the fact that fewer properties are listed for sale.
 
<hr class="system-pagebreak">
In comparison with the average number of weekly auctions over the same period last year, there are currently 22% fewer auctions taking place each week.
 
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Auction clearance rates provide a very good lead indicator as to the performance of the housing market and the sentiment of buyers. It is, however, important to note that in 2011 auctions only accounted for 20.4% of all capital city house and unit sales. This is also reflective of the results over recent years and highlights that auctions are something of a niche market.
Of course, not every property is going to be a candidate to be taken to auction. If the subject property is fairly standard there is often little benefit in taking it to auction, whereas many believe that unique and prestige homes should be taken to auction to get the best price. The auction market is certainly more reflective of the prestige housing market, considering that 20.4% of all capital city homes sell at auction, however, these sales account for a much larger 27.5% of the total value of capital city home sales. These trends are replicated across each capital city except for Hobart.
Across individual capital cities there is a varying degree of popularity surrounding auctions. In Melbourne, auctions are the most popular of all capital cities, accounting for 31.6% of all sales, followed by Sydney (23.6%) and Canberra (17.2%). In every other capital city, market auction sales account for less than 15% of all capital city home sales. The results show that, overwhelmingly, most vendors prefer to sell by private treaty and, presumably, most purchasers prefer to buy via this method as well.
Click to enlarge
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Overall, it is important to recognise that auctions comprise only around one-fifth of the overall capital city housing market and tend to reflect the performance of higher priced homes. Nonetheless, auction clearance rates are a good, timely indicator of market sentiment and it is encouraging that they have been stronger in 2012 than they were over the latter part of 2011.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany.</a>
Cameron Kusher is senior data analyst at <a href="https://www.rpdata.com.au/" target="_blank">RP Data.</a>
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Auction clearance rates improving but still at low activity levels: Cameron Kusher

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The backdrop of a tumbling stock market, surging job losses and sliding dollar will reinforce the market’s conviction that the Reserve Bank will again cut the cash rate at its meeting today. For the RBA board members however, it’s not going to be an easy decision. The market has been pricing in the 100% probability of a 25-basis-point cut to the cash rate tomorrow and something approaching an 80% probability of a 50-basis-point reduction. The turmoil in markets sparked by poor US economic statistics on Friday can only have strengthened the belief that the RBA will act. In fact the market has priced in a whole series of rate cuts, expecting the cash rate to tumble from 3.75% today to 2.25% by December. That may well eventuate, although it would be a signal of real distress within the global and domestic economy if it did. There are a range of factors that will give the RBA board pause for serious thought about whether or not to follow May’s 50-basis-point rate reduction with a further reduction. One of the more obvious is that it knows from the May experience, when the banks declined to pass through the full 50 basis points (which the RBA anticipated and built into the decision to cut by 50 basis points rather than its conventional 25 basis points) and from its continuing engagement with the major banks that they would almost certainly again retain a proportion of any official rate cut. The impact of a 25-basis-point reduction in the cash rate would be muted if the banks, still experiencing pressure on their net interest margins from the competition for deposits, hung onto five or 10 basis points. That means the RBA, if it wants to generate some meaningful stimulus, would need to seriously contemplate another 50-basis-point cut. With the cash rate at 3.75%, reducing rates by half a percentage point at a time erodes the potential for the RBA to take really decisive action if the situation demands it, as it may well do.  Europe is on the verge of imploding, with the new election in Greece still two weeks away, the US has slowed again and even China is starting to feel the effects of the recessed global conditions and its own attempt to rein in inflation last year. If the Europeans can’t devise some mechanism for stabilising their dangerously unstable fiscal positions and recapitalise their dangerously under-capitalised banks then the RBA, and the Gillard government, are going to need all the monetary and fiscal firepower available to them.  During the worst of the first phase of the global financial crisis the RBA cut rates six times, by a total of 300 basis points, between September 2008 and April 2009. The Rudd government also doused the economy with cash. If Europe implodes then the stretched state of government finances in Europe and the US, and the somewhat more limited ability of China to repeat its massive stimulus strategy, may dictate an even stronger stimulatory response here. The RBA may want to preserve its firepower for when it is really needed. The board would also, no doubt, consider whether there has been sufficient time to determine whether last month’s rate cut has had any positive impact – monetary policy usually takes some time to have an effect – and would be conscious that while the most recent federal government cash handouts are flowing to households, the full impact of the $2.5 billion in school kinds bonuses and the pre-emptive compensation for the carbon tax has yet to be felt. (Has there ever been worse timing for the introduction of a great big new tax?) It would also be mindful that the settings for a key influence over the recessed conditions in the non-resource states are changing. When the Reserve Bank met last month the Australian dollar, while trading a long way short of the high of $US1.10 it reached in the middle of last year, was still comfortably above parity at $US1.02. Today it slipped below 97 US cents. That will relieve some of the pressures on local companies and be mildly stimulatory, although the currency is still trading way above historical levels. There is no doubt that the non-resource sectors of the economy are struggling. The retail and manufacturing sectors are being ground down by the erosion of consumer confidence and the significant household deleveraging that is occurring. The job losses and corporate failures are mounting and house prices continue to slide. The investment boom in the resources sector continues – but the pipeline of projects yet to get underway is shrinking rapidly. There has been a massive loss of confidence that will be further impacted by the fall in the Australian share market below 4000 points today and which one suspects won’t be turned around, whatever the RBA might do, unless and until federal parliament is functioning more conventionally and Europe has been stabilised. The RBA board will have to weigh up complex competing arguments as to whether or not to cut rates again and, if so, by how much. It will have to think its way through likely developments, and their likely timing, in Europe and the US and how it might be forced to respond. Despite the market’s certainty, it is most unlikely to be a straightforward decision.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator.</a>
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Today’s RBA decision is not going to be easy: Bartholomeusz

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Since the 1800s, there has been a procession of younger family members joining long-established family businesses.
Traditionally, it has been sons following in their fathers’ footsteps.
But things started to change during the late 1970s and early 1980s, when you saw more daughters taking up the challenge, and also joining the family firm.
Enter Generation X
Gen Xers grew up in an era of two-income families — where mums worked and crèches became the norm. Divorce rates also began to rise; and the economy floundered after the 1987 crash.
As a result, Gen X emerged as independent, resourceful and largely self-sufficient, displaying a casual disdain for authority and structured work hours.
But more importantly, Gen X heralded the shift from manufacturing to a service-based economy. And it was the first generation to grow up with computers interwoven into their lifestyle.
Having lived through tough times during the early 1990s and seen their parents made redundant from long-held jobs, Gen X had little desire to be locked into just one firm and are willing to change jobs regularly, in order to further their careers.
Therefore, for all intents and purposes, the traditional family businesses (as we knew them) were slowly dying off.
But was that to be the end?
By the turn of the century, Gen Xers held fairly senior positions and were earning some seriously good money. Plus, a growing number of them were wanting to take charge of their own destiny.
Quite often that meant groups of them leaving major companies, to set up their own businesses. And this transition is what spawned the surge in suburban strata offices over the past 15 years, all around Australia.
Clearly, Gen Xers had the drive, the computer skills and the marketing know-how. But what they quickly found lacking was their depth of business experience, ready access to finance and a well-established corporate network.
Re-enter the parents
This is where their early-retired parents (through redundancies and retrenchments during the 1990s) suddenly became invaluable – but not so much for a cash input as you might initially think.
Rather they are able to open doors to business opportunities and provide an entry to banking connections. Plus they add much-needed credibility when making sales presentations to major companies.
Bottom line: What you've been seeing is dad (or .um) given a desk from which to run his or her own consultancy business in return for providing intellectual property and projecting an "air of experience" when required.
Quite an interesting new twist on the traditional family business structure.
It is one which will continue to underpinned the demand for smaller, strata-titled offices within most commercial property markets around Australia.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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The reorganisation of the family business will boost demand for small strata-titled offices

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Over the past few weeks I have been taking a detailed look at the topic of stamp duty on property and how among other related issues, various state governments manipulate stamp duty in the housing market.
They do this to stimulate activity, however they are in effect adding an incentive to the market. Incentives in any free market are not new and in a project marketing setting they also have a function that extends beyond government to the development community.
The developer’s incentives
From a general marketing perspective the arrival of very big incentives, like the government incentives we saw in 2007, usually signal that the health of the market is not good. This usually results – and did at the time – in developers adding further incentives to the marketing mix, and not just incentives aimed at first-time buyers.
Depending upon prevailing conditions, such incentives in combination can add up to considerable value.
That could reach (as they did in 2007) as much as $40,000 or even $60,000, which is a valuable incentive to a buyer looking at homes in a middle price range. The total incentive on offer can be made up of a mix of grants, stamp duty concessions and developers rebates.
But an interesting question is: how do buyers react to such incentives? In particular when these incentives contain big contributions from the developer or with project homes from the builder.
A big topic of conversation is how should they be used in the promotional mix and what the pitfalls are when the incentives are either reduced or no longer available. It’s also worth considering if incentives are more or less always part of the “offer”, or do they simply retreat at different times and change form.
Or is it simply a reality that for the foreseeable future such incentives, both from the private sector and as a part of government policy, will be a fixture of the housing market?
A valid and long-term marketing tool
If we look at the impact of incentives and how “normal” they have become, in particular for first-time buyers, it does appear they are here to stay. But is this surprising? After all, buyer incentives are a part of almost all free-markets. Coupons (a way of life in the US), two-for-one offers, petrol savings, frequent flyer points, sales and discounts – the list is endless.
For some major parts of the residential property market, incentives have to some industry observers usually been associated with tough times. But is this the reality?  It could be more constructive to consider incentives as a valid part of a normal promotional mix, as it appears they become more common.
Many do not involve any sort of direct price discounting. This is in contrast to the private treaty market, where price alone is the only real mechanism to influence buyers.
I also suggest that it could be reasonably argued that being on an early release VIP list with a project is in fact a form of incentive, as it implies an advantage of time and possibly price. We can appreciate this is a logical goal from the perspective of many buyers.
The use of incentives can and does play a positive part of the project marketing arsenal. If incentives are well considered sales can be encouraged and the time scale of projects and holding costs reduced, possibly boosting the eventual return.
Just as with a major department store, any retailer or car manufacturer, holding unsold stock is an expensive thing and the cash tied up can delay other development opportunities. In a full sales path incentives should be seen as valid marketing tools, not an emergency Band-Aid or quick fix, and so they need to be deliberately and carefully managed.
 
 
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Buyer incentives
If incentives are used there will be some core points to consider. When should buyer incentives be used in project marketing matrix? What impact do incentives have on core brand values? Has the market grown tired of incentives or are they so much a part of the marketing offer that they are now a must? Or despite the wide spread use of incentives are they viewed with distrust among buyers?
There is little doubt that big-ticket incentive like the various state and federal government first-home buyer grants do work and can work fast, and they are more or less seen as permanent fixtures. Buyers like them and do not appear to consider them as panic tactics, and they are seen as a valid financial boost.
Some people in the industry will always comment that incentives are a waste of time, a negative. They say things like “any buyer will know that the free car or some other offer has been factored into the price”.
Or “do you want to live in a community where every second person drives the same free car or has the same free appliance package?”
Despite this type of feedback incentives are used and will continue to be used. Comments like the examples quoted are more likely to be associated with a now out-dated approach to incentives, when they were used in a much less focused and strategic way.
Incentives can be used in a very positive way and they can have a major financial value. Marketing budgets and the impact on the true net sales price are factors that have to be taken into full account. They will impact the cost of each sale as a valid marketing cost.
Positive incentives also help to foster a happy customer. Long after a sale is complete it might be the high-end new barbecue that buyers boast about to their family and friends, while the house itself fades into everyday life.
Many major project home developers now use upgrade packages, priced as incentives as a key part of their brand offer.
I have already pointed to the need to plan and manage incentives with care, because despite the spread of incentives in some markets they may need to be avoided and other ways found to encourage sales.
There is also some observation that in particular markets, some financial institutions have been discounting values by the worth of incentives and this can have a flow-on impact and so reduce the buyers’ borrowing capacity.
Nevertheless there needs to be a full appreciation of how incentives impact the market and how best they should be used in building a strong sales path for individual projects.
Peter Chittenden is managing director for residential of <a target="_blank" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International</a>
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When incentives should be used in marketing a new development

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Boy band and teenage heartthrobs One Direction have taken Chapel Street by storm with their 1D pop-up shop as part of an increasing trend in Melbourne’s retail sector.
The band’s merchandise store was at 576 Chapel Street nearly four weeks since extending its lease by another week. It was due to close on Sunday.
<img src="/images/stories/2012/06/onedirection.jpg">
The shop was swarmed by a legion of teenage girls when it opened in a made-for-media event. Fans emptied the shelves of stock, which was then replenished. The shop was rarely empty, with teenagers congregating at the site to discuss the band.
Pop-up shops have come into increasing prominence recently as they pick up slack in a market hit by high vacancy rates.
Adrian Boutsakis, the Teska Carson agent who leased the property, says pop-up shops can be risky for owners but they do offer a way to fill gaps between long-term tenants.
<img src="/images/stories/2012/06/onedirection2.jpg">
“Some people try to lease pop-up shops for four to five days. For an owner it’s often not worth the risk for the money. If someone’s offering you $1,500 to $5,000 for a few days and they damage your property the cost will be $5,000 to $10,000”.
One Direction paid about $15,000 to $20,000 for the property, which Boutsakis is currently marketing at $330,000 a year.
Boutsakis is in the process of leasing the shop on a long-term basis.
“The tenants needed to push out the date to design the fit-out, etc. Normally in that time the owner would look at that as dead time which he factors into his costings. A short-term tenants alleviates that issue.”
In March CBRE released data showing pop-up shops had plugged rental gaps in Melbourne, which achieved historically low retail vacancy rates in 2011.
<img src="/images/stories/2012/06/onedirection3.jpg">
Four out of the 10 shop leased on Bridge Road, Richmond, in the second half of 2011 were taken up by pop-up shops, and Chapel Street was identified as a pop-up shop hotspot.
Boutsakis says the size of the One Direction shop makes it an oddity.
“Most pop-up shops don’t want 200-odd square metres. Generally pop-up shops want to pay about $1,500 a week for smaller shops.”
Boutsakis says short-term leases may not earn the agent fees and are sometimes done as a gesture of goodwill to the owner.
“One of the reasons we do short-term leasings is to keep clients happy. If it sits there vacant for a while owners can sometimes lose faith in their agent. Obviously we don’t want to lose clients to other agents.
“Often fees don’t play a part and it’s just to keep the owners happy. We leave it up to them, we don’t push them to do it.”
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One Direction had that one thing with Chapel Street pop-up shop

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RBA governor Glenn Stevens has released a statement explaining the bank's decision today.
"At its meeting today, the board decided to lower the cash rate by 25 basis points to 3.5%, effective 6 June 2012.
"Growth in the world economy picked up in the early months of 2012, having slowed in the second half of 2011. But more recent indicators suggest further weakening in Europe and some further moderation in growth in China. Conditions in other parts of Asia have largely recovered from the effects of last year's natural disasters, but the ongoing trend is unclear and could be dampened by slower Chinese growth. The United States continues to grow at a moderate pace. Commodity prices have declined lately, though they are mostly still high. Australia's terms of trade similarly peaked about six months ago, though they remain historically high.
"Financial market sentiment has deteriorated over the past month. The board has noted previously that Europe would remain a potential source of adverse shocks. Europe's economic and financial prospects have again been clouded by weakening growth, heightened political uncertainty and concerns about fiscal sustainability and the strength of some banks. Capital markets remain open to corporations and well-rated banks, but spreads have increased. Long-term interest rates faced by highly rated sovereigns, including Australia, have fallen to exceptionally low levels. Share markets have declined.
"In Australia, available indicators suggest modest growth continued in the first part of 2012, with significant variation across sectors. Overall labour market conditions firmed a little, notwithstanding job shedding in some industries, and the rate of unemployment remains low. Nonetheless, both households and businesses continue to exhibit a degree of precautionary behaviour, which may continue in the near term.
"There have been no new data for inflation since the previous meeting. Over the coming one to two years, and abstracting from the effects of the carbon price, inflation is expected to be in the 2–3% range. In the near term, it is likely to be in the lower part of that range, though maintaining low inflation over the longer term will require growth in domestic costs to slow as the effects of the earlier high exchange rate wane.
"As a result of earlier changes to monetary policy, interest rates for borrowers have declined to be a little below their medium-term averages. Business credit has increased more strongly in recent months, though credit growth remains modest overall. Housing prices had shown some signs of stabilising around the turn of the year, but have recently declined again. Generally, the housing market remains subdued. The exchange rate has declined over recent weeks, reflecting lower commodity prices, heightened risk aversion and expectations of lower interest rates.
"At today's meeting, the board judged that, with modest domestic growth and a weaker and more uncertain international environment, the outlook for inflation afforded scope for a more accommodative stance of monetary policy," Stevens wrote.
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RBA governor's statement on 25-basis-point cut

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Commercial property investors can earn rental yields as high as 11%, about double the yields from bank deposit products, if they are willing to bear the risk, according to research by Colliers International.
Primary yields in the bulky goods store sector range from 8.5% to 9.5%, and yields can be as high as 11% in secondary markets like the Gold Coast.
But Colliers head of national research Nerida Conisbee warns that this market is currently oversupplied due to a lot of development in the mid-2000s.
There are 112 bulky good centres in Australia covering more than 2 million square metres of retail space with an average size of 18,000 square metres, according to Colliers
In 2011 an additional 318,000 square metres of bulky good space was added to the market.
According to realcommercial.com.au, there are close to 100 bulky good stores up for sale on the Gold Coast, with 335 stores available for lease
Conisbee says the Gold Coast is seen as an even risker bulky goods investment because there are fewer tenants than other markets and higher vacancy rates.
“A longer-term hold might be OK,” she says.
Investors looking for less risky investments with strong yield potential should consider the neighbourhood regional shopping centre market, Conisbee says.
Prime yields in sub-regional and neighbourhood shopping centres start from around 7% and rise up to as 10% in the secondary market.
Conisbee suggest investors consider regional shopping centres under $5 million as well as suburban strata offices.
Those investors with shallower pockets might consider investing in a listed or unlisted retail trust to gain exposure to the sector.
Conisbee says smaller industrial assets are also doing particurlarly well in Melbourne and Brisbane, where there is an undersupply, with yields ranging from 7.75% to 8.5%
There are, she says, opportunities in strip retailing, but she says investors should tread carefully because of huge variation in quality and returns.
She says the most sought-after assets are Sydney and Melbourne offices and regional shopping centres – out of reach of smaller investors, though exposure is possible through buying shares in REITs and investing in unlisted trusts.
However, yields are lowest in these “sharpest investment categories” because of the strongest investor demand.
“This is because foreign investors are really looking and competing for these assets,” she says.
Other prime assets being sought by foreign investors and superfunds are Perth and Brisbane CBD offices.
The average yield in Sydney and Melbourne CBD offices ranges from 6.5% to 7%; from 7% to 7.75% in Brisbane and between 7.5% and 8% in Perth.
Outside of the sought-after CBD markets, prime yields range from 7.5% to 8.5% in CBD fringe locations like North Sydney, rising up to more than 10% in secondary locations in places like Chatswood and St Leonards.
Adelaide prime CBD fringe yields range from 6.5% to 7.25%, according to Colliers.
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