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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 cash rate will fall today, and most likely by another 0.5 percentage points.  The yield curve strongly suggests such.
As at June 1, the 10-year government bond rate was 2.84%, while the official cash rate was 3.75%, and the somewhat wide difference suggests that the cash rate should fall.
This indicator is right about half of the time, whilst the average economist gets interest rate calls right just once every seven times.
So in the yield curve trust I!
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Michael Matusik is the director of independent property advisory Matusik Property Insights. Michael is a 25-year veteran in the industry and his firm has helped over 550 new residential developments come to fruition. Michael has launched a new initiative, called<a href="https://www.matusik.com.au/" target="_blank"> Think Matusik</a>. Think Matusik brings together expert opinion and select property opportunities.
Michael will <a target="_blank" href="/news">present a free webinar on tips on buying your first property as an investment on Tuesday, June 5 at 12.30pm</a>.
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RBA cash rate set to drop

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WA police are investigating another attempt by an international scam to sell Perth residential properties without their owners' consent.
The attempt was intercepted by vigilant real estate agents who were approached to sell the home in Applecross.
The most recent matter arose last month when an Applecross real estate agency was contacted by someone claiming to be the owner of a rental property and requesting an urgent statement.
The property manager contacted the owner on file and realised it was a scam.
Other attempts have been made at Belmont and Subiaco.
The government reported that in the Belmont scam, people hacked into a home owner’s laptop computer through a Trojan virus and retrieved information on the owner’s investment property. The real estate agent who was managing the property was then contacted in an attempt to have the rental income diverted to an overseas bank account.
Police are still investigating the fraudulent sale of a Karrinyup home in September 2010 and a <a target="_blank" href="https://www.propertyobserver.com.au/western-australia/absentee-investor-alert-nigerian-scammers-sell-%24410000-house-they-didnt-own/2011081751195">Balcatta house early last year</a> where the overseas owners were renting the properties.
Police have tracked the Karrinyup scam to Nigeria and say the hundreds of thousands of dollars paid to them <a target="_blank" href="https://www.propertyobserver.com.au/news/perth-nigerian-scam-estate-agent-faces-disciplinary-action-for-lack-of-diligence-in-%24410000-sale/2012052854867">was transferred to a Chinese bank account.</a>
The WA Minister has congratulated the agents involved for their vigilance.
“Fraudsters have clearly been encouraged by the two previous successful scams in WA,” Commerce Minister Simon O'Brien said.
“These new attempts reiterate just how important it is that property and settlement agents apply rigorous scrutiny to all property transactions, particularly when they involve absentee owners and overseas vendors.”
The attempts follow the State Government’s move to strengthen industry codes of conduct late last year.

The new codes require agents to exercise greater care, skill and diligence when conducting identity checks on clients.

Consumer Protection has made identity verification training mandatory for all agents and WA Police conducts education seminars for the industry on this issue.

“Identity fraud and cyber crime is a continuing concern for authorities but awareness and vigilance are our best weapons to ensure fraud attempts are not rewarded,” Mr O’Brien said
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Vigilant Applecross Perth estate agency prevents another fraudulent house sale Nigerian scam

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Investors and owner-occupiers may now be able to borrow at loan-to-value (LVRS) ratios as high as 95%, according to Ray White deputy chairman Sam White.
Banks were only willing to lend up to 90% of the value of the property last year, but this has now risen to 95%, says White, who is also the executive chairman of Ray White’s mortgage broking arm Loan Market.
However, the catch is that property valuers continue to be conservative, meaning a 95% loan could actually be under 90% of the agreed purchase price if the bank receives a lower valuation.
Banks lend based on the independent valuation they receive of the property – not the agreed purchase price – meaning borrowers must make up the shortfall themselves.
Overall, though White says Loan Market brokers are seeing “more aggressive lending”, with lenders also reviewing their serviceability criteria.
A similar phenomenon was noted by mortgage broker Smartline, which said banks were now willing to look at secondary incomes when considering loan applications
White says some lenders will consider rental payments as well as irregular income, such as bonus payments and commissions.
“We can place clients with a strong rental history,” White told The Australian Financial Review.
Furthermore he says fixed interest rates remain attractive, while variable mortgage rates are set to fall with more RBA rate cuts expected.
Find out why buying an investment property as your first purchase could be the easiest and cheapest way to get your foot on the property ladder by signing up for tomorrow’s free Property Observer webinar with Michael Matusik: Tips for buying your first property as an investment. The webinar will take place on Tuesday, June 5 at 12.30pm.
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Banks relaxing LVRs and serviceability criteria but valuations still conservative: Sam White

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How low could the RBA’s cash rate go? Much lower than most folks, including the financial markets, think. The global economy is schizophrenic right now. On an underlying basis, there are powerful forces shifting the centre of economic gravity away from the old world of North America and Europe towards the 2.6 billion people living in China and India.  The IMF estimates that over the next five years the eurozone will only contribute 7.7% of total global growth. In contrast, China is expected to account for around three times that amount, or 22.6%, of the world’s total expansion. The same pattern applies when one compares the major advanced economies – or the so-called “G7” – with their emerging and developing counterparts. Notwithstanding the media and financial market fixation with the G7, these nations only made up one-third of global growth between 2000 and 2011. The IMF believes that this share will fall further to just 28.6% between 2012 and 2016. By way of comparison, developing countries accounted for 49% of global growth over the last decade, with their contribution forecast to rise to more than 60% over the next five years.  While the industrialisation, urbanisation and rising middle classes of Chindia are driving "decoupling" from the North Atlantic nations, the unprecedented global interconnectedness brought about by the internet and digital communications is pulling us in the opposite direction. The 24-hour, real-time, and often sensationalist news cycle, with its bias towards the information-rich open societies in the G7, seems to be propagating even greater global synchronisation in financial market behaviour and real economic cycles.  Nothing highlights this better than the disconnect between Australia’s raw economic data and its contemporaneous financial market signals.  In May, Australia’s unemployment rate fell from 5.2% to 4.9%, blind-siding most analysts. Business investment in the first quarter also smashed consensus expectations, while plans for capital spending over the next few years were much better than pessimists anticipated. Wages and overall consumer spending are also tracking around their long-term historical trends. Finally, housing credit and, increasingly, business credit are expanding broadly in line with purchasing power.  Yet financial markets, and many asset prices, are projecting on to this ostensibly healthy picture a seemingly cataclysmic outcome. In particular, the interest rates required on Australian government bonds have plummeted to all-time historical lows. On Friday night the yield on three-year Australian government bond futures fell to below 2% for the first time ever.  This is ordinarily a very worrying portent: three-year government bond yields are now more than 175 basis points below the current RBA cash rate (technically called an "inversion" of the yield curve). That is, the market thinks the RBA will cut its official target cash rate to levels we’ve never seen before. Specifically, the futures market is now suggesting that the RBA’s cash rate will drop to as low as 2.15% by the end of this year. That’s more than six standard RBA rate cuts.  All commentators, economists, and policymakers have struggled to keep pace with this extreme global uncertainty. In June last year bank economists, including Westpac and yours truly, were forecasting further RBA rate hikes. In that month Westpac’s Bill Evans presciently swivelled 180 degrees and called for a 100 basis point reduction in the cash rate by the end of 2012. Bill got the direction right, but has now been compelled by evolving circumstances to dramatically adjust his view again; he's added four more RBA rate cuts, or 100 basis points worth in total, to his original 2012 expectation.  Last week the RBA was believed to be resistant to cutting rates in June. That’s understandable given the staff only recommended a 25 basis point cut in May and were pushed by the board to double it. Since May, the RBA has seen the currency depreciate substantially – it is now about 13% below its all-time US dollar highs – the jobless rate decline, and capital spending exceed expectations. But dismal data from overseas is now likely to force the RBA to follow May with more rate relief tomorrow.  Economists at NAB, Westpac, CBA, JP Morgan, and Market Economics, among others, have at various points changed their June calls from no move to a cut on Tuesday. Senior commentators, such as Terry McCrann on Friday night, and David Bassanese last week, both argued the central bank would exercise the option to wait in June.  But McCrann, on Sunday, and Bassanese, in today’s paper, have embraced a cut. Bassanese puts it best: “To my mind, the facts have changed. As a result, my previous base-case view that the RBA would not cut interest rates again this month also needs to change.”  The situation in Europe is telescoping towards a binary outcome: either we get fiscal integration, which will, rather ambitiously, involve regional deposit guarantees, individual nations ceding authority over budget spending, and so-called “euro-bonds” that allow countries to raise money backed by the commitment of the entire eurozone, or the currency union as we know it today will slowly disintegrate.  While each contingency has different ramifications for the Australian economy and the response of local policymakers, it is instructive to consider what might actually happen in a downside scenario. In the GFC, the RBA's cash rate dropped to 3%, which combined with the boost to the first-home owners’ grant helped house prices surge 13% in 2009. The cash rate is currently only 75 basis points higher at 3.75%. Of course, actual lending rates are much more important than the RBA's theoretical target. And they are, crucially, 125 basis points above the lows touched in April 2009.  If – and it is an almighty "if" – the global economy does indeed lurch into recession, I think the RBA will slash its official cash rate way below the levels seen in 2008 and 2009. In fact, I am thinking 1.9% or less.  Take home loan rates as a benchmark. After the double cut in May, the current discounted home loan rate in Australia is about 6.35%. The trough achieved during the last crisis was 5.1% in April 2009. At surface level, the RBA would need to slash its cash rate 125 basis points to 2.5% to get lending rates back to their crisis marks.  But the rub is that this supposes a 1:1 pass-through by the banks. In a best-case scenario, the RBA will only assume two-thirds pass-through. That means to get 125 basis points of lending rate reductions the RBA will have to cut its cash rate by an extra 65 basis points (or about 190 basis points in total). In turn, this implies a terminal cash rate of 1.9%. That might just get you a 5.1% mortgage rate.  There is, however, a second wrinkle, which was highlighted to me by a UBS strategist during a chat on Friday. Recall that a lot of bank funding comes from retail deposits that are transaction accounts. These deposits already earn zero per cent interest rates – it is tough (although not impossible, as the Swiss have proven) to shove them lower. Accordingly, the banks may pass on less and less to maintain their net interest margins. The lower pass-through would also be amplified by a blow-out in credit spreads, which would further elevate bank funding costs in the absence of taxpayer guarantees.  If you are seriously bearish on global growth prospects, as many claim, and think that the eurozone crisis is going to push the world into recession, then you should prepare yourself for a very low RBA cash rate. Forget Westpac’s 2.75%, or the 2.15% currently pencilled in by the financial markets.  Based on the analysis above, the RBA cash rate is going to have to fall to less than 1.9% merely to replicate the lending rate lows achieved in 2009. A final argument in favour of an ultra-low RBA cash rate is the fact that this time around fiscal policy will be hamstrung by concerns about a diminution in Australia’s prized AAA credit rating. Given the sharp increase in Australian government debt since 2007, it will be much more difficult for the Commonwealth to repeat its last cash splash. So most of the responsibility for supporting the local economy will fall on to Martin Place’s narrow shoulders. As the May meeting demonstrated, nobody, including the RBA governor and his staff, can know with confidence what exact decisions the RBA's board will coalesce around at 12.30pm tomorrow, or in the ensuing months. The only constant we can rely on is that heightened global uncertainty will persist for some time. And, as during the last crisis, cash will be king.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm" target="_blank">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
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RBA cash rate could go below 1.9%, with 5.1% mortgage rate possible: Christopher Joye

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There are now proportionally fewer properties to rent in the middle suburbs of Sydney than in suburbs closest to the Sydney CBD, according to April figures compiled by the Real Estate Institute of NSW (REINSW). 
Despite the overall state vacancy rate lifting by 0.1 percentage points to 1.7% during April, the vacancy rate in the middle suburbs (10 to 25 kilometres from CBD) tightened 0.3 percentage points to 1.6%. 
The residential vacancy rate in the middle suburbs has been falling since the start of the year – in January it stood at 2.1% 
In comparison the vacancy rate rose 0.2 percentage points to 1.7% in the inner-city suburbs and in the outer suburbs (more than 25 kilometres from the CBD) over April.
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Despite a fall of 0.1 percentage points to 2.9%, Wollongong remains the NSW city with highest percentage of available rental properties. 
Vacancy rates in Newcastle remained unchanged at 1.6% while on the central coast, the percentage of available rental properties rose 0.1 percentage points to 2.3%. 
Regionally, vacancies fell sharply in the Riverina shire in the south-west from 4.4% in March to 3.1% April. 
The Coffs Harbour market also tightened noticeably from 4.9% to 4%, but the region still has the highest vacancy rate in the state. 
 
The shire of Murrumbidgee, 630 kilometres west of Sydney, which has a population of around 2,400, recorded the lowest vacancy rate of 1%.
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REINSW president Christian Payne describes the April data as a “mixed bag” proving the point that the “rental market varies significantly from one area to another”. 
However, he says the message underlying the mixed results is that “much more needs to be done to address the chronic shortage in rental accommodation. 
“Sydney, the nation’s global city, has a rental vacancy rate that hasn’t managed to claw its way above 2% at any time in the past 12 months. 
“This situation has very human consequences, with prospective tenants struggling to find accommodation in a timely and affordable manner. 
“What we need urgently is a commitment from government to work cooperatively at all levels on resolving this problem and getting investors back into the NSW property market,” he says.
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Fewer rental vacancies in Sydney middle suburbs than in the inner city: REINSW

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With a 4.5% annual drop in house prices, Australia now ranks 44th in the world for house prices.
Overall global house prices were static in the first three months of 2012, the first time since late 2009 that annual price growth has slipped below 1%, according to the latest Knight Frank Global House Price Index.
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The index traces price movements across 53 countries. Australia was<a href="https://www.propertyobserver.com.au/residential/australia-slips-to-32nd-place-while-asia-remains-strong-in-house-price-index-knight-frank/2011090151383" target="_blank"> 32nd in September last year</a> and <a href="https://www.propertyobserver.com.au/news/australia-ranks-28th-on-house-price-index-list/2011062050537" target="_parent">28th in June 2011</a>.
Australia peaked as the fourth-fastest-growing property market in the world after a 20% price jump in the year to March 2010.
Ireland (down 16.3%), Greece (down 9.8%) and Portugal (down 8.6%) were the worst international performers, with house prices down in 58% of the countries on the index.
There was 0.9% overall growth in the year to March 2012 as doubts over the Eurozone's future, along with the Asian governments' staunch efforts to cool their markets have taken their toll.
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The major price growth came in Southern American countries, with Brazil recording the strongest annual growth of 23.5%.
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Knight Frank suggested the Asian tiger now resembled something of a domestic cat as far as house prices are concerned, mainly due to government efforts to cool price inflation.
The region recorded average annual price growth exceed 16% in the first quarter of 2010, but two years later the figure was closer to 2%.
The region's growth still exceeds the global average, but the margins have shrunk considerably.
Nicholas Holt, Knight Frank's director of research in Asia, says: "The Chinese housing market has had a tough 12 months as developers and purchasers alike have had bank finance squeezed as a consequence of the ongoing cooling measures. Lending restrictions, new taxes, the curbing of multiple property purchases, and new regulations to restrict the inward flow of hot foreign money have had the desired effect."
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Australia slips to 44th from fourth in past two years in world house price growth rankings: Knight Frank

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The Sydney inner-city apartment market will remain undersupplied until 2019, pushing up rents and delivering rising returns for investors, while Melbourne landlords will struggle due to an oversupply of new apartments, according to BIS Shrapnel.
This is despite more apartments due to be completed in Sydney than in Melbourne between now and 2016.
The most recent apartment construction phase commenced in both cities from 2009-10 following an improved economic outlook and rising rents and yields, but construction was more pronounced in Melbourne, creating the current oversupply.
“The pipeline of construction in inner Melbourne points to record levels of supply, while activity in inner Sydney is also coming to recent highs,” says BIS Shrapnel senior manager Angie Zigomanis.
BIS Shrapnel is forecasting an undersupply of 2,500 apartments in Sydney in 2012.
This will fall over the next four years to an undersupply of 500 apartments as new apartments are completed but will then start rising again from 2017, reaching a shortfall of close to 2,000 apartments in 2018 and 2019.
The forecast is for about 2,000 rental apartments to be completed in inner Sydney in 2013-14 —similar to its 2003-04 peak but below the 1999-2000 peak of 2,500 apartments.
However, this will be insufficient to erode the pent-up rental demand in the inner-Sydney apartment market, and despite further high construction over the following two years, BIS Shrapnel anticipates a modest deficiency of apartments in inner Sydney will still be in place by 2016.
“This environment should continue to support rental growth in inner-Sydney apartments,” says Zigomanis.
“The continued tight rental market and rising rents are expected to support further investor demand and consequently price growth over the next two to three years, particularly if economic growth starts to recover and confidence returns.”
Sydney inner-city apartment rents are forecast to rise by around 5% to 6% per annum over 2012-13 and 2013-14 (compared with 6.7% between 2006 and 2012) before slowing in subsequent years as the deficiency eases with new supply coming on stream
Price growth is expected to be similar, says BIS Shrapnel.
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Source: BIS Shrapnel
Melbourne is forecast to have an undersupply of 1,800 apartments over the next two years but once projects in the pipeline are completed over the next two years the undersupply will more than halve by 2014 before tipping into oversupply by 2015.
In 2016, the surplus of inner-city Melbourne apartments is set to peak at over 2,500 before declining over the next two years and returning to a small undersupply by 2019.
The oversupply of Melbourne apartments is forecast to be driven by an annual rate of 2,800 rental apartment completions from 2013-14 to 2015-16 compared with just 1,800 completions in 2011-12.
Over the past decade Melbourne rental apartment completions have averaged 1,600 per year while tenant demand has remained at 1,500 apartments per year.
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“The record levels of new apartment supply in inner Melbourne over 2013-14 to 2015-16 will push the market into oversupply and vacancy rates will rise,” says Zigomanis.
“The high level of competing stock means that landlords will be unable to command the premiums that are traditionally available for new apartments, while owners of older established apartments will have to discount the asking rent on their apartments in order to compete,” he says.
The lower rents will translate into lower returns for potential investors.
Prices for inner-Melbourne apartments are forecast to remain flat while sales volumes fall until the excess supply is absorbed.
According to BIS Shrapnel, in many instances, owners will experience a decline in prices if they resell.
In its forecasts, BIS Shrapnel breaks down the inner-city population profile in Sydney and Melbourne into three categories:
<ul>
<li>Students, with the growth mainly coming from overseas students;</li>
<li>Young professionals, who are typically employed in white-collar occupations in the CBD or CBD fringe locations; and </li>
<li>Empty-nesters, such as older singles or couples without children living in the family home. </li>
</ul>
The first two groups, it says, largely create demand for apartments as tenants, while empty-nesters are typically owner-occupiers and will therefore occupy the apartment they have purchased. 
“Apartment rent demand from young professionals experienced a setback during the GFC as employment in the financial sector declined. While this rebounded briefly as the recovery came through, growth has again slowed in line with the economy,” says Zigomanis.
“Student demand has also weakened, although most of the reduction in overseas student numbers has taken place in the vocational education sector compared to the university sector, and with major university institutions located close to the Sydney and Melbourne CBDs, the softening in student demand has been less pronounced. As a result, tenant demand has softened.”
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Sydney inner-city apartments to deliver better returns than Melbourne until 2019: BIS Shrapnel

No auction cash bonanza for Larry Emdur as prestige sale volumes slump in every state

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Last week I hosted a business seminar that allowed me to speak to people on Main Street and see the current environment through their eyes. There is understandably quite a bit of confusion and hesitation among business owners looking to grow and manage their businesses effectively, so I thought I’d go back to basics and talk a bit about strategies and setting up for success.
Firstly, have a plan: A plan can change and it can be improved as you move forward, but without it you really don’t have a sense of where you’re trying to go. You need a plan.
A plan should start with your goals. This should include a clear sense of what you want from your business – financially, professionally and personally. I have known people who have focused on simply one of these, and they’ve become demotivated. You must define how much money you want to earn from this enterprise; you must have a clear goal about what kind of professional glory you are pursuing; and you should define personal happiness before starting a business.
A plan must also include marketing plans, key employees, financial and corporate structures, protections such as insurances and a really good system that tells you if you’re succeeding.
This last one is something that many first-time business owners ignore. However, adopting key performance indicators and judging your business against them is crucial. It’s the method by which you judge whether the plan is working.
Your plan should also delineate shareholders, investors, partners and the exit strategy.
I advise business owners to think carefully about whom they take on as a partner or investor – the right partner can be the best thing you ever did because that person can be a mentor, a war buddy and someone to share the pain and the wealth with. You want a good partner, but you want to be a good partner, too. The same goes for investors – the best one may not be the one with the most money, but the best contacts and the most experience.
And then there’s exit strategy. Anyone who’s already owned a business will tell you that it’s worth thinking about your exit before you start a business. Many business ventures end in organised liquidation, trade sale or internal buy-out. And how that works is dependent on the structure and decisions about shareholding and rights, etc.
It’s worth discussing this with your accountant or solicitor before starting a business. And I always advise business owners to state in their plan what value they want to build the business to. That is to say, if a large business were to bid to buy your business, what price would you want and what kind of sale would you want?
Once you start planning for these goals, you realise that you have to make certain structural decisions before you start the business.
So I think very highly of planning. I’ve started, invested in and sold many businesses and I’ll do it all again in the future. And I don’t take any serious steps until I have a plan – a road map for success.
Lastly, let me give you a good template for a business owner’s personality: work, play, fight, love, believe.
You must want to work, you must plan for downtime away from work, you must be prepared to fight for what’s right and for your business, you must have a love or a passion for what you’re doing, and you must arise each morning with a ton of belief in what you’re doing and where you’re going.
Good luck!
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance. He runs a <a target="_blank" href="https://twitter.com/#!/markbouris">Q&amp;A session on Twitter</a> every Monday afternoon at 4pm for small business owners using the hashtag #bizQandA.
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mbouris-tauSvXGAM2

To build a successful business, know your goals and your exit strategy

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 About 60% of apartments in The Emerald development in Albert Park have been sold about a month after the development launched, with marketing soon to start in Asia. The project is being marketed by Colliers International.
<img src="/images/stories/2012/06/emerald1.jpg">
The 20-storey project features one-bedroom apartments from $345,000 and two-bedrooms from $567,000,<a href="https://www.propertyobserver.com.au/residential/time-running-out-for-first-home-bonuses-and-stamp-duty-concessions/2012052854863" target="_blank"> under the Victorian' government's $600,000 threshold for the $13,000 first-home bonus</a>.
<img src="/images/stories/2012/06/emerald2.jpg">
The upscale apartment project being developed by the Golden Age Group is situated between the CBD, Southbank arts area and the city’s “garden precinct” of the Royal Botanic Gardens and Albert Park Lake.
<img src="/images/stories/2012/06/emerald3.jpg">
It features 282 apartments across 19 levels in a commanding wave-like building designed by The Buchan Group Architects
<img src="/images/stories/2012/06/emerald4.jpg">
The Emerald will look south-west across Albert Park Lake to Port Phillip Bay, north to the city and east to the Botanic Gardens and the Shrine of Remembrance.
<img src="/images/stories/2012/06/emerald5.jpg">
Three levels of the new building will have “podium” apartments; two levels of apartments will have private terraces; and another two levels will also comprise penthouse-style apartments.
<img src="/images/stories/2012/06/emerald7.jpg">
 
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Designers at Hecker Guthrie have selected natural palettes, organic materials and timeless craftsmanship for the fixtures, finishes and public spaces.
<img src="/images/stories/2012/06/emerald6.jpg">
Purchasers have a choice of colour schemes and with 47 different floor plans across various levels, with emphasis on maximising living spaces, creating highly functional kitchen and laundry areas and making use of generous outdoor balconies.
<img src="/images/stories/2012/06/emerald8.jpg">
“We’re very excited to be bringing a luxury development to this prestigious location and have already seen a lot of early interest from those seeking an inner-city lifestyle with easy access to Melbourne’s best parks and gardens,” says Golden Age Group’s Jeff Xu.
<img src="/images/stories/2012/06/emerald9.jpg">
<img src="/images/stories/2012/06/emerald10.jpg">
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