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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Lend Lease Docklands development Exo, which launched in July of last year, is about 70% sold.
It was half-sold within the first three weeks of its marketing and <a target="_blank" href="https://www.propertyobserver.com.au/developments/docklands-development-exo-almost-two-thirds-sold/2011111652400">had sold 60 of the 96 units by November</a>. Now about 65 of the units are spoken for.
<img src="/images/stories/exo2.jpg">
Exo is aimed at the more affordable segment of the market, with prices starting from $395,000 for one-bedroom apartments, which would qualify for the <a target="_blank" href="https://www.propertyobserver.com.au/residential/time-running-out-for-first-home-bonuses-and-stamp-duty-concessions/2012052854863">Victorian government's $13,000 first-home bonus until the scheme concludes June 30</a>. To be eligible for the scheme, a property has to be priced under $600,000.
The building will comprise 32 one-bedroom apartments of about 55 square metres. It will have 64 two-bedroom apartments, which range from 79 square metres to 93 square metres and start at $665,000.
Exo will be have a distinctive perforated white façade, with its irregular holes designed to bring to mind river rocks or forest paths. It was designed by Lend Lease Design’s architectural team.
<img src="/images/stories/exofacade.jpg">
“Exo is the latest in a line of commercial and residential projects adding panache to Melbourne’s Victoria Harbour precinct – a unique fusion of city and water,” says Lend Lease Victoria Harbour project director Claire Johnston.
The development will back onto <street>Collins Street</street>, and although its address is technically <street>Merchant Street</street>, Lend Lease aims for it to be “characteristically <street>Collins Street</street>”.
<img style="font-size: 14px; text-align: left;" src="/images/stories/exo3.jpg">
“The design demonstrates an innate understanding of the need for sanctuary from the hustle and bustle of urban life, with each apartment purposely designed to maximise space and minimise noise, allowing residents to reside in the heart of the city without having to compromise on their quality of living,” says Johnston.
For more on the past, present and future of Docklands, download our free eBook. 
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cknowlton-QnEa6ntUYP

Prices start at $395,000 in Lend Lease Docklands development Exo

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It’s been a while since we heard about the “top 1%”.  The protests that spread the globe earlier in the year have fallen under the radar in <country-region><place>Australia</place></country-region> – buried deep below the Thompson affair and global “wows”.  However, according to recent reports, if you live in the <country-region><place>United States</place></country-region>, the 1% are busy bulk buying thousands of real estate foreclosures and taking full advantage of what’s becoming – in some states – a very tight rental market.
The once “American dream” that fueled a nation with a similar owner-occupancy rate to that of <country-region><place>Australia</place></country-region> is slowly turning into a rental nation.  It’s no secret that <country-region><place>US</place></country-region> recovery from the financial crisis has been little more than a halfhearted limp.  If owner-occupiers have managed to hold onto their homes, it’s been at a substantial capital loss. Aside from the large number of foreclosures – which according to a recent report in the <a target="_blank" href="https://nyti.ms/LedaiO">New York Times</a> has been in the order of some 4 million since 2007,   potential home owners now find it virtually impossible to access finance.  This, along with the pressures of record high unemployment, has begun to fuel an unparalleled rental boom.
For example, in <city><place>San Francisco</place></city> the vacancy rate has dropped to around 2% compared with 5% in 2009.  Property managers are charging fees simply for placing an <a target="_blank" href="https://bit.ly/LeephV">application</a>, and rents have increased some 13% since last year.  As one report puts it – trying to access rental accommodation has turned into a <a target="_blank" href="https://bit.ly/JESorm">‘competitive sport’</a>, and it’s a similar story in other cities such as <state>New York</state>, <city>Los Angeles</city> and <city><place>Boston</place></city>.
Whether the <country-region>US</country-region> buying market has bottomed out or not is debatable and like <country-region><place>Australia</place></country-region>, it’s impossible to draw broad conclusions because each state suffers its own unique conditions. However, recently <a target="_blank" href="https://read.bi/LekCKw">Gary Anderson</a> reported in Business Insider that the number of bank-owned homes for sale in the most affected market of the <country-region>US</country-region> – <city><place>Las Vegas</place></city> – has fallen from 18,000 to just 1,600 in a remarkably short period of time.  The suggestion mooted by <city><place>Anderson</place></city> is that banks have been marketing these foreclosures for a period of 30 days at a “real” price, after which – if not sold – they are taken off the market and offered in bulk to investors, who enter a bidding war to purchase the homes at “wholesale” prices.  There is no evidence for this in the article and it’s also worth noting that <city><place>Las Vegas</place></city> has recently passed a bill requiring banks to use the more expensive “judicial foreclosure” process, which would add to the reduced figures.  However, there’s plenty of evidence that points towards a massive Wall Street buying spree of foreclosed homes which is creating a huge disparity in the market.
The <country-region>US</country-region> government is moving ahead with a trial project to sell big pools of foreclosed family homes owned by Fannie May, in some of the hardest-hit markets in <country-region><place>America</place></country-region>.  The initiative has created what Reuters report as <a target="_blank" href="https://reut.rs/LeqhQV">a "Wall Street investing craze”</a> and the L A Times suggests “Wall Street hedge funds and private equity firms" are " positioning themselves to snap up foreclosed homes and convert them into rental units”.
Of course, when you have a large number of investors purchasing affordable family homes that are the bread and butter of the owner-occupier market, you not only have speculation potentially inflating prices, you also have more distressed potential home buyers firmly stuck on the rental ladder.  It’s important to emphasise the <country-region><place>US</place></country-region> housing bubble resulted from a sub-prime lending crisis and not from large numbers of cash buyers looking for positive rental returns.  Therefore, it would be unwise to jump to any broad conclusions that this is the start of another potential boom-and-bust “bubble” cycle.  However, the market tipping in favour of investors over owner-occupiers has led to many wondering if the <country-region><place>America</place></country-region> dream has become just that – a dream.   Such is the outcry, some 15,000 realtors recently gathered in <place><city>Washington</city><state>DC</state></place><a target="_blank" href="https://bit.ly/MFJpwk">to protest</a> against the investor-dominated market.  As one realtor on the video states – “we’re here to protect home ownership and the American dream!”
More on pages 2 and 3
 
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Back to Australia, and although we have been fortunate enough to avoid the level of housing stress seen in America, I often wonder if we shouldn’t take time to learn a few valuable lessons in our own defense of the right to home ownership. The right not to be kicked out after a six-month or 12-month tenancy, the right to own a “share” of tangible Australian land, the right not to suffer from rent increases – and the right to feel secure.  The number of first-home buyer commitments nationally fell by 19% in the first three months of this year and is currently sitting some 24% below the five-year moving average.   Outside the east-west divide of those prospering from the mining sector, potential first-home buyers are becoming long-term renters and under current policy decisions I can’t see it improving.
Like <country-region>America</country-region> pre GFC, <country-region><place>Australia</place></country-region> has grown used to its reliance on a booming housing market.  Generous tax incentives such as negative gearing, first-home owner grants, capital gains benefits, borrowing against equity, restrictions on residential development, low interest rates and an insistence on keeping growth and job centers predominantly locked in capital city locations has pushed the cost of metropolitan accommodation to unsustainable extremes.  Household debt to income ratios sit at around 150% and while all the above policies have supported debt fueled growth in the past, it’s time we took steps to discourage our housing market from becoming a long-term investor-dominated paradise.
The drop in interest rates may be welcomed in so much as it eases the burden on the average mortgage holder releasing much-needed disposable cash.  However, lower rates primarily encourage investors to borrow more, leveraging interest-only loans against increasing yields in a very tight established housing market. Other policies such as negative gearing and poor urban planning encourage investors to take advantage of the bread and butter of the first-home buyer market.  Investors aren’t typically buying million-dollar real estate, they’re purchasing inner-city apartments – the “affordable” options, leaving first-home buyers unable to compete.  Investors have the upper hand in our housing market, and it’s assumed the asset will provide above-inflation capital growth, which the above government policy decisions all but guarantee.
A recent OECD Better Life index of 34 member countries looking at “housing, income, jobs, community, education, environment, governance, health, life satisfaction, safety and work-life balance” has voted <country-region><place>Australia</place></country-region> as “the world’s happiest country”.  It shouldn’t come as a shock when you consider the economic climate in the <country-region>USA</country-region> and <place>Europe</place>.  It doesn’t take a “Better Life” index to work out, when comparing <country-region><place>Australia</place></country-region> with nations currently on their knees with double digit unemployment, we’re going to come out top of the pile. Of course, Wayne Swan is having a field day on the news, and who can blame him?  There’s hasn’t been an abundance of good news in the Labor camp of late.  However, neither Wayne Swan nor a “Better Life” survey can hide the fact that in <country-region><place>Australia</place></country-region>, there is a widening gap between the rich and poor.
Last year, the OECD bought out its <a target="_blank" href="https://bit.ly/MFS7e7">Divided We Stand: Why Inequality Keeps Rising</a> report.  It showed that since 2003, <country-region><place>Australia</place></country-region> has jumped some five or six places up the ladder in terms of inequality and currently sits in ninth pace.  Although we fare better than the <country-region><place>US</place></country-region>, since the year 2000 the rich/poor divide has been speedily increasing.  Studies conducted by the ABS have shown the top fifth of households hold some 62%of the country’s total wealth. We now boast the world’s richest woman (Gina Rinehart), whose fortune is estimated to be $29.17 billion.  Never is it more evident that the wealth of the mining boom simply does not trickle down than when you see reports such as <a target="_blank" href="https://bit.ly/MFUOwe">"WA is moving away from the east"</a> and read from the 60,000 jobs created in <country-region><place>Australia</place></country-region> over the last 12 months, some 50,000 of them were mining.  As the article clearly points out, the eastern and western states may be connected physically, but mentally our western state is fast becoming a closer partner to Asia than <city><place>Canberra</place></city>.
The rental market in <city><place>Perth</place></city> speaks volumes.  Vacancy rates are as low as 1.6% and over the past 12 months, the average rent has increased by 10.5%.  Yields are now coming in at 5.5% and expected to get higher. WA is taking a greater share of overseas migration than anywhere else in <country-region><place>Australia</place></country-region>, and the consequential stress on house prices will place pressure on those most vulnerable.  We may have low default rates in <country-region><place>Australia</place></country-region>; however, we can hardly hail it a healthy environment when over 50% of an average family’s income is spent on funding mortgage repayments.
More on page 3
 
<hr class="system-pagebreak">
 
A recent AHURI (Australian Housing and Urban Research Institute) study suggests 43% of mortgage holders are redrawing on their mortgage for “pressing financial needs”.  The report presents a compelling argument that <country-region><place>Australia</place></country-region> is moving into a “housing-based welfare system” with funds heavily invested in the “prospected” safety of bricks and mortar.  Falls in superannuation, a dramatic reduction in business investment, lower capital gains from investments and continual shocks of confidence as Europe threatens to do a Mount Vesuvius-style eruption have led to an over reliance on the mining boom and vain hope that China will continue to need us far into the future.  As long as <country-region>China</country-region> goes the course, we can prop up any prospected surplus and wave around figures that give the notion we’re all enjoying <state><place>Western Australia</place></state>’s increase in wealth.  The true picture is far more dangerous.
Most people don’t go through life looking for extreme riches; however most assume if they’ve worked hard, paid their taxes and invested wisely, they can at least rely on the government to set in place the potential to grow old in relative comfort.  Around 64% of the gross wealth of Australian home owners is locked in their housing.  The expense of housing ensures most of an average family’s income is given over to servicing high mortgage payments and hedging against prospected growth in overall household expenditure – investment elsewhere is therefore compromised.
Through various methods of manipulation, successive governments have done everything they can to inflate house prices and encourage over-investment in what should be viewed primarily as a commodity for shelter rather than a quick road to leveraged riches.  Housing is debt-fuelled and totally reliant on supply of credit and the ability of banks to prop up lending volumes. The mining boom may have protected the wealth of this country – however all “happiness” surveys aside, this wealth is not being distributed across the broader population – “haves and have-nots”.  As a consequence, many of today’s workers will enter retirement still paying off mortgages or servicing high rental fees.
Various studies have shown two thirds of residents under the age of 35 living in Sydney are locked out of home ownership altogether and considering Melbourne’s house prices are only baby steps behind Sydney’s, the stats are likely to be similarly mirrored.  The prospect of growing numbers reaching retirement locked out of home ownership is as frightening as an economy heavily leveraged against a debt-fuelled, rate-sensitive capital model. Our reliance on <country-region>China</country-region>’s continued need for Australian commodities is all but assumed, however various economists such as Satyajit Das have pointed out <a href="https://ind.pn/KVtA40">many</a> times that <country-region><place>China</place></country-region>’s economic picture may not be as sunny as it seems.  Should <place>Europe</place> collapse, the resulting consequences and looming dark clouds could reduce that demand a lot sooner than expected.
As it stands at present, there is nothing to suggest an immediate or quick deflation in house prices – however we should all keep a close eye on Europe fully understanding the consequences any dramatic fallout could have on commodity demand from <country-region><place>China</place></country-region>.  We are short on adequate affordable housing supply around the major job centers where the population is rising and demand for accommodation (buying or renting) is consistent.  However, housing should be a provision first and foremost for owner occupiers and models that encourage broad based investment in the established market (as in the US) need to be scaled back and pushed into increasing supply and infrastructure in newer suburbs in order to boost the supply and feasibility of affordable accommodation.
Options for secure long-term tenancy need to be investigated to provide those unable to purchase adequate affordable and secure shelter into retirement. And we must increase the supply of good quality public and social housing. <state>New South Wales</state> and <state><place>Victoria</place></state>’s decisions to cut back their funding for <a target="_blank" href="https://bit.ly/LpMbAQ">public housing</a> is remarkably short sighted. The powers that be have their heads in debt-fuelled sand. Our banking sector has directly or indirectly invested around 80 per cent in housing. We’ve already seen finance tighten and income stagnating, not to mention the risks of a rising unemployment as small business’s struggle.  The housing crash in <country-region><place>America</place></country-region> – albeit caused by a landscape different to our own – is resulting in similar consequences, by ensuring increasing numbers will enter retirement firmly stuck on the rental ladder.  There will always be those who are unable to purchase, however can we call a system “just” if we’ve manipulated policies that advantage investors over owner-occupiers, potentially locking many out of home ownership all together?
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on The <a href="https://ten.com.au/the-circle.htm">Circle</a> and a senior consultant for <a href="https://www.nationalpropertybuyers.com.au/">National Property Buyers</a> servicing the needs of property owners Australia wide.
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catherinecashmore-6LXia3pPQj

Just as the US after the housing crash, Australia is becoming a nation of renters

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Victoria narrowly pipped Tasmania and South Australia with the biggest percentage increase in properties newly listed for rent, according to RP Data. Victoria also has the highest number of listings of any state, with its 27,193 total listings some 8% higher than in May last year. Some 60% of Victoria's current rental listings are newly advertised. The 14, 553 fresh listings are well up on the same month last year, when there were 10,199 fresh listing.
For increases in new rental listings,Victoria was closely followed by Tasmania and South Australia, up 40% from 773 to 1,081 and 39% from 2,585 to 3,597 respectively.
Across Australia new rental listings for the month ending May 20 have increased 26% from 38,910 last year to 49,020.
Total listings Australia-wide were down 10% from 93,499 in May last year to 83,942 this May. New listings represent 58% of total listings in Australia.
Victoria, South Australia and Tasmania were the only states where total rental listings increased over the year.
For total listings the Northern Territory has experienced the biggest decline over the year. Total rental listings in the territory dropped 33% from 1,139 last year to 765 for the month ending May 20.
Total listings in WA decreased 21% over the year but new listings now represent 66% of total advertised properties.
"Total rental listings are now at their highest level in eight weeks," the report says.
"Although rental listings have risen, they are currently 10.2% lower than at the same time last year nationally and 6.2% lower across the combined capital cities.
"Across individual capital cities, rental listings are lower than at the same time last year in: Sydney (-8.5%), Brisbane(-23.3%), Perth (-22.7%), Darwin (-40.4%) and Canberra (-5.8%). On the other hand, rental listings are higher than a year ago in: Melbourne (7.7%), Adelaide (9.4%) and Hobart (19.2%)"
 
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awalsh-7Ub9EypybQ

Victorian rental listings increased 43% in past year, with Tasmania a close second: RP Data

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Don’t you get sick of hearing about the importance of the resources sector?
I’m looking at a different kind of gold mine: the thousands of Australians with a good idea and the desire to start a new enterprise. These are people who will put it all on the line to pursue something new and innovative, yet most of them can’t get the support they need in this country.
The excellent story by Asher Moses in the Sydney Morning Herald a little over a week ago that highlighted the number of young Australians taking their ideas to Silicon Valley because they can’t get a start here really annoyed me.
Why? Because the real “resources” sector in this country is our people. The minds of our young people is where the national wealth and economic growth of the next 50 years is going to come from.
Yes, the current minerals boom is putting wealth in our pockets. But when the stuff in the ground dries up, <country-region>Australia</country-region> will need what has always sustained the <country-region><place>US</place></country-region> economy, and that is innovation, patents, high technology, medical advances, miracle drugs, etc.
The real test of an economy that wants entrepreneurs is what they call the “commercialisation” phase.
Commercialisation must support both the entepreneur and the investor. The entrepreneur needs investment and expertise and the investor needs to manage their risk and boost their capital gains.
Entrepreneurs typically get their finance from debt or equity.
But in <country-region><place>Australia</place></country-region>, banks do not like high-risk loans or loans to people lacking in a business track record. And our equity investors typically prefer to invest in entrepreneurs who are in expansion mode rather than start-up because our tax laws do not make the risk of the start-up worth the reward.
Corporations may be interested in an innovation, but they shy from equity investment because of corporate governance issues.
This leaves the role of government which should be allowing the right taxation, banking and regulatory environment for entrepreneurs and their investors. We have to allow talented entrepreneurs to find the money, not to have governments create cash bonanzas so long as you invent what they want.
The Commonwealth Treasury, in its research paper Measuring Entrepreneurship, found that the European government emphasis on investing in R&amp;D at universities and corporations during the 1980s and 1990s had not resulted in the expected increase in economic growth. The “critical link” between R&amp;D and economic growth was entrepreneurship.
We have the talent in this country, and a new generation is finding ways to make their dreams a reality. But they need the education and the opportunity – they need advice. I’m hosting a business seminar this week, and I’ve been inundated with questions from smart young business minds who are looking for answers. So I am going to help.
<country-region><place>Australia</place></country-region> is turning out a new breed of entrepreneur that will be the future of this country and we need to do right by them… or lose them.
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.
Mark is hosting the Secrets to Business Success Seminar on Wednesday 30 May in Parramatta. For more information visit <a href="https://www.ybr.com.au/seminar">www.ybr.com.au/seminar</a>
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The real resources sector in Australia is our entrepreneurs: Mark Bouris

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Despite all the attention the mining billionaires get, property still retains its status as the major source of wealth for BRW Rich listers.
Some 54 of the wealthiest 200 have property as the source of their wealth.
Next follow those who made money from services (28) and then resources (22), investment (21), retail (20), then rural, technology, manufacturing, entertainment and construction.
Frank Lowy’s $6.47 billion wealth holds third place behind Gina Rinehart and Ivan Glasenberg.
Then Harry Triguboff sits in seventh place, with an estimated $4.85 million wealth.
John Gandel is ranked 10th with a $3.45 million worth.
Their presence highlights that membership of the BRW Rich List is rapidly getting older, and lacking new younger?names making their fortunes.
Frank Lowy is 81 with three sons, Harry Triguboff is 79 and two children, and Gandel is 77 years old with four children.
Property developer Lang Walker is a spritely 66 – worth $2.1 billion in 13th place with three children – at 89 Stan Perron is in 15th place at $2.05 billion with three children; in 20th place the 87-year old Maurice Alter has a $1.5 billion net worth with two children.
All up there are 17 octogenarians on the rich 200 list – the oldest is Sydney publican and property developer Cyril Maloney at 92, with an estimated $360 million worth and four children.
Just 15 members on the Rich 200 List are younger than 50, partly because a generation of entrepreneurs came unstuck during the GFC. The 41 year old Melbourne property developer Ashley Williams - from Evolve Development - made his debut onto the list this year with a $215 million estimate worth.
A further 38 are aged between 50 and 59, which puts 145 Rich listers aged 60 or older.
Succession planning will provide plenty of headlines in future years.
Somewhat conservative for the current chastened times is how AFR reporter John Stensholt describes the rich at the moment.
Though the Financial Times did report of the weekend that James Packer’s Ellerston polo team is set to return to UK high-goal season this year.
More than £20 million has been spent on the new polo centre in the West Sussex countryside by Packer, the FT noted.
“Fears that Packer’s polo-playing son James could lose interest in the game following his father’s death a few years ago proved unfounded,” the FT polo supplement advised.
It was two years ago that planning permission was given for the Packer polo run at Manor Farm, at the tiny village of Selham, near Midhurst.
The local paper the West Sussex Gazette then reported the farm had been given a change of use permission by Chichester District Council despite protests from villagers at the Cowdray estate-owned 134-hectare holding.
It’s is not far from Great House Farm, the 38-hectare polo complex at Stedham, owned by his late father, Kerry during the 1980s. Kerry Packer sold the house to Roman Abramovich, the Russian oligarch, and his polo fields to Filipino banker Bobby Aguirre.
Manor Farm now comes with two polo playing areas, a horse walkway and all-weather exercise track with the existing dairy buildings converted to stabling and seasonal accommodation for grooms and a clubhouse for the famous Ellerston team. The farm is opposite the Ambersham polo grounds.
Last year the Argentine for­mer 10-goaler Gonzalo Pieres, who played with Kerry throughout the 1990s, suggested Selham will be the new Stedham.
“They have done everything right, and the grounds are amazing,” Pieres said.
Pololine.com report that the Ellerston team "will have a very interesting change" in one of the elite competitions.
"Patron Jamie Packer will only play the Gold Cup, and his place in the Queen's Cup will be taken by Spain's Iñigo Zobel, the patron of Ayala Polo Team in Sotogrande," the leading <a target="_blank" href="https://www.pololine.com/?lang=1&amp;sec=2&amp;note=1275&amp;pag=0">polo website </a>reported last month.
The Veuve Cliquot Gold Cup team is given as "Ellerston: Jamie Packer (1) (Iñigo Zobel juega la Queen's Cup), John-Paul Clarkin (8), Gonzalo Pieres Jr. (10), Tomás Garbarini (3)"
James Packer, who last played English high-goal polo in 2008, could apparently whack the ball a good 150 yards.
The latest arrivals on the polo circuit, the FT reports, are wealthy Chinese polo clubs reigniting China's elite passion for the sport.
Played by the Persians some 2,500 years ago, polo was adopted by the Tang Dynasty, who ruled China from 618-907 AD.
Apparently four big-spending Chinese polo clubs have opened in the past eight years. starting with Beijing's Sunn Times clun in 2005 and Shanghai's Nine Dragons club in 2008.
Tang Polo Club near Beijing and Tianjin’s Goldin Metropolitan, backed by Goldin Group, the investment company owned by Pan Sutong, the Hong Kong property magnate, host international tournaments having imported more than 100 ponies from Australasia and Europe, the FT noted.
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jchancellor-FAypfDUnLy

Succession plans worth watching once BRW rich listers get back from the summer polo season where James Packer's Ellerston rides again

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Approximately 99.7% of the earth’s people believe Australia is the strongest, wealthiest, most fortunate nation on the planet. The 0.3% who do not believe it are all Australians.
A lengthening list of authorities – including the OECD, the IMF and sundry consultancies that conduct surveys and write economic reports – all conclude that we are indeed the lucky country. We rank at or near the top for economic prosperity, standard of living and personal wealth.
That’s how it looks from the outside looking in. But Australians refuse to accept it.
We’re a boom nation with a recession mentality.
How did we get to be so pessimistic amid so many reasons be bullish? How did a nation that embodies confidence and success in so many spheres – notably in sport and in entertainment – manage to develop such a massive dose of the sulks?
Here’s a plausible explanation, one that speaks directly to the real estate industry.
We are infested with politicians, industry associations and business leaders who seem determined to talk us into a recession.
We have a federal government that has recently devoted more energy to internal fighting than to running the country. We have a federal opposition that appears unable to challenge the government without talking down the nation. We have state governments handing down austerity budgets at a time of economic prosperity. We have mining giants that use threats and scare campaigns as standard negotiating tools. We have business organisations that talk down their own industries to pressure governments. We have economists and others who peddle negativity to get media attention. And we a media immersed in an orgy of pessimism.
There is no greater example of the problem that the housing sector. This is the industry that has shot itself in both feet and is now pointing the gun at its head.
If insanity is defined as repeating the same mistakes while expecting different outcomes, then the Housing Industry Association is the craziest bunch in the nuthouse.
For years the HIA has been trying to extract concessions from government by pumping out “crisis” media statements on an almost-daily basis. We have an affordability crisis, a housing shortage crisis, a red tape crisis, a taxation crisis – the HIA has talked down its own industry day after day. Even positive data has been twisted into a tale of pessimism.
Australians are out there buying homes and investment properties again – and markets are rising. But they’re not building new homes, they’re buying existing ones. Why would anyone want to build when the HIA keeps telling them the industry is stuffed and their products are too expensive?
The negativity tactic has been running with increasing stridency for years. And it hasn’t achieved a single significant concession from any level of government.
So what’s the HIA’s response to this stark failure of its policy? Go even harder with the same strategy!
Now they’re saying the residential building industry is descending into recession. “New home building has collapsed,” says managing director Shane Goodwin. “We’re on the brink of recession … the worst conditions in decades.”
The only thing that’s collapsed is common sense and sound judgment at the HIA.
They should be selling the benefits of building new homes. They should be highlighting the areas in Australia where the economy is strong and business is good.
There are many such places. I get around the country a bit, and I’ve recently visited plenty where business is brisk for builders – including Gladstone in Queensland, the Hunter Valley in NSW, Whyalla in South Australia, Ballarat in Victoria and Toowoomba in Queensland.
The number of building approvals in Toowoomba, which benefits from its proximity to the Surat Basin resources province, rose 59% in the March quarter. Townsville, Rockhampton, Mackay and Gladstone have all seen building approvals double in the past year.
There are good news stories out there, if the industry only had the wit to tell them.
Builders won’t thrive until they start recognising themselves as part of the problem and stop blaming government for everything.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" target="_blank">followed on Twitter</a>.
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The Australian property industry has shot itself in both feet and is aiming the gun at its head: Terry Ryder

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There is less than a month to go until five state home owners’ grants and one state stamp duty concession come to an end.
<img src="/images/stories/june302012.gif">
Victoria
On June 30 Victoria will end two bonus schemes aimed at first-home buyers – the $13,000 first-home bonus, which has run for three years, and the $6,500 regional bonus, which has run for two years.
These schemes will not be replaced.
Instead the government will increase existing stamp duty concessions for first-home buyers, as announced in the Victorian state budget.
From January 1, 2013 the <a href="https://www.sro.vic.gov.au/sro/sronav.nsf/LinkView/C88211C9E07486F0CA2578B70001025018E490D796850F8ECA2575C1008187C7">existing 20% stamp duty discount first-home buyers spending less than $600,000 on a house purchase will be increased to 30%.</a>
The stamp duty discount will rise to 40% on January 1 2014 and to 50% on September 1 2014.
To qualify for the stamp duty discount, first-home buyers must also qualify for the federal $7,000 first-home owners’ grant.
ACT
In the ACT, the <a href="https://www.revenue.act.gov.au/home_buyer_assistance/home_buyer_duty_concession/1_January_2012_-_30_June_2012">home buyer concession scheme (HBCS)</a> will end on June 30. The scheme provides stamp duty concessions on homes worth up to $470,000 and vacant land up to $260,000 and to qualify applicants must satisfy a combined income test for one year prior to the date of the grant starting from $120,000 for applicants with no children and up to $136,650 for applicants with five or more children.
No new schemes were introduced in the May 2011-12 ACT budget.
 
NSW 
The <a href="https://www.homebuyer.nsw.gov.au/newhomes.php">NSW government's home builders bonus</a>, which 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, will end on June 30. 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.
The NSW state budget was handed down on June 12 <a href="https://www.propertyobserver.com.au/tax/nsw-doubles-its-first-home-grant-for-new-homes/2012061255075">wit</a><a href="https://www.propertyobserver.com.au/tax/nsw-doubles-its-first-home-grant-for-new-homes/2012061255075">h changes announced affecting investors and first-home-buyers from July 1 and October 1</a>. The changes create a<a href="https://www.propertyobserver.com.au/landlords/nsw-property-investors-condundrum-take-the-%2422490-housing-bonus-now-or-just-%245000-after-july-1/2012061255081"> conundrum for property investors.</a>
South Australia
The <a href="https://www.revenuesa.sa.gov.au/fhog/bonus8000">first-home bonus grant of up to $8,000</a> available to first-home buyers who qualify for the federal $7,000 first-home owner grant will be abolished from July 1, 2013. The first-home owners’ grant is not being phased out.
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Time running out for first-home bonuses and stamp duty concessions

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Although more than $8 million was initially hoped for, a $7.77 million Brighton waterfront auction result has buoyed top-end market sentiment.
Especially as there were three bidders at the chilly onsite Marshall White auction once auctioneer John Bongiorno indicated it was on the market at $7.2 million. Another five had registered, but didn't get to bid.
"There is a market for correctly priced property," John Borgiorno said post-auction acknowledging the need for agents to have appropriate pricing expectations.
It was in 2005 when John established the then Melbourne residential record for a sale under the hammer on The Esplanade, Brighton which sold for $7.61 million.
Buyers’ agent Mal James described the weekend offering as “the best of the best of Brighton waterfront position-wise – opposite the dog beach”.
James calculated that the price reflected close to $10,000 per square metre for the 600-square-metre waterfront portion and the rear 600 square metres at $3,000 per square metres.
“The biggest auction for the year and the biggest I can remember for some time,” James said of the invitation-only auction.
The four bedroom house, on a 1,261-square-metre cul-de-sac block with 18 metre foreshore frontage, was part of a deceased estate, having been held in the same family for 25 years. It was listed through Barb Gregory at Marshall White.
The owner is expected to build a new house on the Seacombe Grove block.
"This is an open and fair market," Mal James noted.
"The market sure ain't dead for the well priced good stuff," he added. 
Melbourne’s overall clearance rate eased to 59% from 586 reported auctions with some 86 results yet to be tallied. There was a 61% success rate in the prior weekend, according to the Real Estate Institute of Victoria. The clearance rate had been over 60% for three consecutive weekends, the first time that had been achieved for 14 months.
On the weekend Brighton and Brighton East auctions resulted in eight sales and eight passed in.
Sydney agents secured a 56.6% clearance rate, which was lower than the 58.1% of the previous weekend, according to Australian Property Monitors.
 
 
 
 
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Brighton waterfront $7.77 million sale buoys Melbourne’s top-end market

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Rental yields have been increasing across most of Australia over the past 12 months and are better option than holding cash or government bonds, according to Janusz Hooker, executive chairman of real estate group LJ Hooker. 
Rising yields, he says, are being driven by softening property prices and increasing rents due to relatively low vacancy rates nationwide. 
“Given the forecast supply of rental stock and forecast demand for rental stock, rents look set to continue their five-year historical average growth of 5.8% per annum for apartments and 5.4% per annum for homes,” he says. 
“At present average gross yields for apartments in Australia are 5.2% (around 4.2% net of expenses) and for homes 4.5% (around 3.5% net of expenses). 
“If you look at real estate as a long-term asset class to hold, these yields are becoming increasingly attractive compared to cash and government bonds – not to mention the appreciation of the property asset,” Hooker says. 
“Typically more affordable housing has a higher yield. 
“Also property yields are often higher outside of the major metropolitan areas.” 
Hooker says the highest yields at present in Australia are in the mining boom towns in the Pilbara and central Queensland, where double-digit yields are achievable on rental properties.
 
 
 
 
 
 
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Rental yields on the rise and a better option than cash and bonds: Janusz Hooker

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Offshore investor demand for Australian commercial property, already strong, is likely to increase on the back of the weakening Australian dollar, say commercial property experts.
Savills has already noted anecdotal evidence of an up-tick in offshore demand as the dollar has fallen, “particularly from China, where the yuan is pegged to the US dollar”.
“We predict that further significant falls in the Australian dollar will lead to a surge in offshore investment in most forms of commercial properties, resulting in an escalation of values,” says Savills head of city sales and investments Clinton Baxter.
The Australian dollar reached parity with the US dollar in November 2010 and rose to a 29 year high of $1.108 on July 27 2011 before retreating.


Since the end of April 2012 the Australian dollar has decline from around $1.04 against the US dollar to below 98 cents with a more gradual decline commencing from the $1.09 level in February.
Australian dollar versus US dollar since July 2010
<img src="/images/stories/dollarchart1.gif">
Source: OANDA.com
However, Baxter along with counterparts at Knight Frank and CBRE, notes that offshore investor demand has remained high even when the Australian dollar was at record levels.
“Despite the Australian dollar reaching record highs over the past two years, the Australian commercial property market has experienced an unprecedented flow of investment capital from off-shore, particularly from China  and south-east Asia,” Baxter says.
“In the Melbourne CBD alone, half of all major transactions over the past 12 months have been to offshore investors.
“Counter-intuitively, motivation of offshore investors rose despite the protracted rise of the Australian dollar, with investors seeking a safe haven for their wealth, expansion into a new market, potential immigration advantage, and to invest in a country insulated from the woes of Europe and the US.”
Neil Brookes, director of international investments at CBRE, says the significant strengthening of the US dollar against the Australian dollar since February has positively affected buyers from the US and China.
“However the strengthening of the euro has not been as pronounced and therefore has not lessened the hedging costs for European investors,” he says.
Brookes says the volatility of the currency is a factor for some groups investing in Australia.
But he stresses that the majority of institutional buyers are looking at Australia as a long-term play and therefore aren’t sensitive to the currency variations.
Australian dollar versus euro since July 2010
 
<img src="/images/stories/eurochart1.gif">
Source: OANDA.com
Paul Henley, managing director of sales at Knight Frank, says there is already strong demand from offshore Asian private investors and institutions looking to invest and/or seek out development opportunities.
“The fall in the Australian dollar is only going to help,” he says.
Henley says investor interest is primarily coming from Asia, with the focus predominantly on the non-core office markets such as the St Kilda Road market in Melbourne and the North Sydney market.
“Investors are also seeking out development opportunities in Melbourne,” he says.
Henley says overseas buyers are seeking investments that represent a “strong return today” and will add value over time.
“They’re particurlarly targeting development opportunities in Melbourne.”
Henley says investors are looking to diversify their asset base and view Australia as a relatively stable economic climate.
“The Australian commercial market is not as foreign to these people as it was once – they are now very familiar with these markets.”
Before the strengthening of the dollar, Henley says Asian investors did not see the high exchange rate as an impediment.
“When the Australian dollar got to $1.05 against the US dollar we thought investor demand would slow down, but it didn’t slow down their appetite,” he says.
Earlier this month the <a href="https://www.propertyobserver.com.au/industry-news/new-asian-real-estate-website-adds-australian-commercial-properties-to-listings/2012051654720" target="_blank">ASX-listed iProperty Group launched a new Asian commercial property website, CommercialAsia.com</a>, which includes Australian commercial properties among its listings.
According to Jones Lang LaSalle figures, Australian investment volumes for office, retail and industrial in the first quarter of 2012 reached $2.08 billion, compared with $1.4 billion in the first quarter of 2011. Australia was one of the top investment destinations for overseas buyers over this period – behind Japan and Hong Kong. 
About a third of the investment in Australia has come from offshore, mainly from non-Asia Pacific investors. 
In its recent Asia Pacific Capital Markets MarketView report, CBRE said A-grade offices in Sydney, Melbourne and Brisbane continued to attract a steady flow of enquiries. There was also a jump in demand for retail assets accounted for $968 million worth of deals during the period – 40% of total sales over the period.
<img src="/images/stories/cbremay28.gif">
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