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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

<html><body>
Westpac chief economist Bill Evans says the failure of the banks to pass on the full May RBA 50-basis-point rate cut impacted on the confidence of borrowers and was a factor in a “disappointing” 0.8% rise in consumer sentiment in May, according to the Westpac Melbourne Institute Index.
Evans says evidence of the muted impact of the cuts in the official cash rate was found in the responses of those surveyed who hold a mortgage. 
“Confidence in this group increased only 3% in the survey despite the largest cut in the standard variable mortgage rate since February 2009. 
“Since October 2011 the standard variable mortgage rate has fallen by 0.76% yet the confidence of mortgage borrowers has actually fallen by 1.8%,” he says. 
Evans described the index of consumer sentiment rising from 94.5 in April to 95.3 in May as a “disappointing result” following the rate cut and “extensive media coverage that the unemployment rate had fallen from 5.2% to 4.9%”.
“However, other factors appear to have offset these positives. 
“Firstly there might have been a degree of disappointment amongst households that the standard variable mortgage rate was reduced by ‘only’ an average of 0.37%. 
“Secondly, increasingly disturbing news around Europe and specifically Greece is likely to have unnerved households,” Evans says. 
“We saw some similar evidence around these two factors in December last year. 
“At that time, despite a 0.25% reduction in the official cash rate, the Consumer Sentiment Index actually fell by 8.3%”. 
Evans says the “soft response” in confidence will be a disappointment for the Reserve Bank. 
“It seems extraordinary that the index is 2% below its level in October last year, when the official cash rate was 4.75% – a full 1% above the current level.” 
Evans says a number of issues appeared to unnerve households. 
“Firstly, and most importantly, concerns around the situation in Europe and secondly some confusion around the flow-on to the mortgage rate as banks delayed their decisions after having responded rapidly following the first official rate cut in November. 
“This issue around mortgage rates was also likely to have been a factor behind the 5% fall in the Index in March following a surprise increase in mortgage rates of 0.1% to 0.12%.” 
Evans says a negative reaction to the budget may also have played a part in the disappointing consumer sentiment result in May. 
“An additional explanation for this weak response of the Index is around the federal budget. We asked a supplementary question in the survey, ‘What impact do you expect the federal budget to have on your family finances over the next 12 months?’." 
“The results were disappointing, with only 9.9% of respondents indicating that the budget would ‘improve’ family finances while 36% indicated the budget would ‘worsen’ family finances.”
 
</body></html>

lschlesinger-FZcF9M3vE6

Banks withholding part of RBA rate cut dampened consumer sentiment rise in May: Westpac’s Bill Evans

<html><body>
Shopping centre owner and landlord Westfield has reported “modest growth” in speciality retail sales in its Australian shopping centres for the first three months of the year. 
Comparable specialty sales in its Australian portfolio rose 1.1% over the March quarter compared with growth of 2.2% in Westfield London store and New Zealand stores and a 10.1% growth in the US. 
The group said for the year to March 2012, average specialty rent for the Australian / New Zealand portfolio grew by 3.1%.
“The first quarter of this year has been pleasing with the group’s operations performing in line with expectations. Importantly, we announced a number of strategic initiatives that we expect will enhance the group’s return on contributed equity and long term earnings growth profile,” say Westfield Group co-chief executives Peter Lowy and Steven Lowy.
“The productivity of our Australian portfolio continues to be high, with specialty sales of approximately $9,800 a square metre, near full occupancy and good demand for space in both existing centres and new developments such as Fountain Gate in Victoria and Carindale in Queensland.”
Speaking at today’s AGM Frank Lowy said the last year had been a period of stability for Westfield following the GFC, with the group weathering the crisis better than some of its competitors. 
Steven Lowy said that at the end of March, the global portfolio was 97.2% leased – with the United States portfolio at 91.6%, the UK at over 99% leased and the Australian/New Zealand portfolio remaining over 99.5%. 
“Last year we completed over 5,100 leasing transactions, or the equivalent of 10 large regional malls, across the entire portfolio. Approximately 3,000 of these leasing deals were to new retailers,” Steven Lowy said. 
“In the first quarter of this year, we have completed 1,100 leasing deals of which around 640 are to new retailers,” he added. 
During today’s AGM chairman Frank Lowy and Steven Lowy stressed the importance of malls being interactive and adapting to the changing needs of shoppers: 
“It is true that the retail industry is constantly changing. There are new types of retail, and the rapid take up of digital technology is changing how consumers think about shopping in all sorts of ways,” Steven Lowy said. 
“But I have witnessed constant change in the retail industry for more than 50 years. 
“The kinds of shopping centres we build today are unrecognisable from those of the 90s, let alone the 60s.” 
Steven Lowy said Westfield shopping centres needed to keep pace with the rapid evolution of digital technology to remain relevant. 
“We have introduced wi-fi to many of our centres and we are actively promoting our business online through the social media such as Facebook and Twitter. 
“As an example, when we opened Stratford in the UK last year, we used social media and online marketing techniques extensively in our launch campaign. 
“That campaign played an important role in helping us achieve over 1 million shopper visits to Stratford in the first week and an average of 800,000 customer visits per week since opening,” Steven Lowy said. 
Westfield expects 1.1 billion visits to shopping centres this year, generating spending of around $40 billion. 
“Our philosophy is to have very strong assets in very strong markets” Frank Lowy said, with the focus being on iconic and flagship projects such as the centres opened<a target="_blank" href="https://www.propertyobserver.com.au/retail/one-million-weekly-london-shoppers-buoy-westfield/2011110852254"> in London</a>, <a target="_blank" href="https://www.propertyobserver.com.au/news/westfield-to-sign-deal-at-rebuilt-world-trade-center/2011072850959">the World Trade Centre project in New York </a>and another project in in Milan.
Westfield announced to investors that its distribution for the 12 months was $1.1 billion or 48.4¢ per security, in line with its forecast at the start of 2011.
 
 
 
 
</body></html>

With 640 new leases signed and rents up, Westfield records ‘modest’ sales growth

<html><body>
I travel a lot for work and also try to take time out to see new places with my family, who have had a few health scares of late. For example, in the last four months I’ve been to the truly mind-blowing, six-star <a target="_blank" href="https://www.wolganvalley.com/wolgan-valley/en/reservations/offers/stay-three-pay-two/?cid=EKWolganValleyGoogle1165">Wolgan Valley Resort</a> in New South Wales twice.
Wolgan Valley needs to be seen to be believed. Emirates spent about $100 million building the place in one of the most aesthetically beautiful (and world heritage-listed) parts of the state. Frankly, I never thought that you would be able to find such majesty inland of Sydney. The first two pictures of Wolgan you can see were shot from my own Blackberry.
<img src="/images/stories/wolgan1.jpg">
<img src="/images/stories/wolgan2.jpg">
It’s expensive, no doubt: the rack rate is $1,900 per night, but that includes three meals for two people, and all drinks and standard alcohol. Every “house” comes with its own heated, indoor 10-metre swimming pool plus uber-luxurious bedroom, lounge room, bathroom and sprawling indoor/outdoor veranda. And don’t get sticker fright at the price: it includes loads of extras, like horse-riding, biking, and hiking, and the impressive general manager, Joost Heymeijer, is open to negotiating significantly better deals.
A few weeks ago a member of the family had a health fright, so I thought I would dig into the possibility of going to a “wellness retreat”. I did a fair bit of due diligence on the Golden Door, Gwinganna, and Gaia. I was looking for a place that possessed world-class facilities, was serious about its health beyond a simple “spa”, and yet not draconian in imposing its vision unilaterally on guests.
After wading through many third-party reviews – there is no more useful site than Trip Advisor – Byron Bay’s <a target="_blank" href="https://www.gaiaretreat.com.au/">Gaia Retreat</a> seemed to fit the bill. If you are wondering, “Gaia” means spirit of mother earth. And it’s exclusive, to be sure. Guests have included Pink, Delta Goodrem, Erica Packer, and billionaires like Lang Walker. It is also jointly owned by singer Olivia Newton-John and three other Australian heavies: Warwick Evans, Ruth Kalnin, and the in-residence general manager, Gregg Cave.
Now I am not normally a fan of domestic resorts, and have a working hypothesis that Australia’s cultural commitment to egalitarian ideals and iconoclastic resentment of authority make really top-notch customer service hard to deliver, <a target="_blank" href="https://www.propertyobserver.com.au/leisure/the-best-private-resort-in-the-world-with-prices-that-match-the-big-name-guests/2011092951737">unlike luxury Hawaiian retreat Kukio</a>.
But Gaia seems different. Situated at the highest point in the Byron Bay hinterland on 10 pristine hectares, Gaia has 20 villas, all of which meet the standards of a good five-star hotel. The two larger “suites”, which are shortly being expanded to six, are in the six-star league. It has an amazing spa with every imaginable treatment, dedicated yoga centre with gorgeous views, swimming pool, walking trails, gymnasium, and even an in-house koala.
<img src="/images/stories/wolgan3.jpg">
<img src="/images/stories/wolgan4.jpg">
Unusually for Australia, all the staff are exceptionally well trained, educated and experienced. I literally had my personal trainer, a boxing specialist called Damien, consulting with my nutritionist, who was guiding the chefs on tailor-made meals. The clincher, as always, is tenure.
I cannot remember speaking to any staff member who had not been working at Gaia for at least two years, and most have been there for around six.
The genius behind Gaia is two-fold: it is run by its owners, who are genuinely engaged with the property, and the attention to detail is, therefore, outstanding. My suite looked like it had been rushed off the pages of an interior design magazine.
The other strength is that in contrast to more hard-core health retreats, Gaia firmly believes in free will. They don’t offer coffee, but you can have it if you ask. Alcohol is available with meals. No activity is compulsory. And Gaia’s people seem to be sincerely committed to advancing your health.
A final comment is that it is relatively well priced. Prices are all-inclusive of meals/drinks. The flight from Sydney was an easy hour to Coolangatta, which was succeeded by a super-scenic 45-minute drive along the coast to Byron. If you want to detox, get fit and recalibrate your mind, Gaia’s worth considering.
 Christopher Joye is a leading financial economist and a director of <a target="_blank" href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
 
 
</body></html>

chrisjoye-JYhJsTrNRC

Wolgan Valley Resort highlights Aussie luxury resorts have a place, despite our egalitarianism: Christopher Joye

<html><body>
International investors are likely to see Australia as a safe haven and pour their funds into the country if the eurozone collapses, according to former treasury secretary Ken Henry.

However, the flip side of this investment would be a rise in the Australian dollar, with repercussions for export-driven sectors of the economy such as manufacturing.

In an interview on the ABC’s 7.30 report, Henry said that if the “worse things happens [in Europe]” it would be quite possible that “Australia will be seen as offering something of a safe haven for global capital movements”. 

“That'll be the first time in the post-war period, but it's possible to imagine it now,” he said.

Asked if Europe’s collapse could be a good thing for Australia, Henry hedged his bets, saying that on the one hand it would make it easier for Australia to fund its current account deficit, but on the other hand it would mean “a high-valued Australian dollar, and as you know that's an issue already causing some concern for some sectors of the Australian [economy].”

In the current two-speed economy Henry said the high Australian dollar placed real pressures on industries like manufacturing, which are configured “on the assumption of 72-cent exchange rate”.

He also said that wage growth had been quite muted except for the mining sector, though wages earned by miners were “nowhere near the prices growth in the mining sector”.

He described the current mining boom as “Mark 2”, with the effects not being passed onto households in terms of their wages as they were in the first phase of the mining boom before the GFC.

“In the what is being referred to these days of Mining Boom Mark 1, that is the mining boom Australia experienced up to the GFC… There was a lot of revenue coming in, huge amount of revenue actually,” Henry said.

During “mining boom Mark 1” Henry said the Howard government was handing out a lot of money to households through big tax cuts and big increases in family payments, with the result that “households actually felt quite good”. 

“They felt that they were getting something from this mining boom and of course in this mining boom Mark 2 the revenue is simply not there and it's much more difficult therefore for governments to make people to feel good,” he said.
 
</body></html>

Investor funds could flow into ‘safe haven’ Australia if eurozone collapses: former treasury secretary Ken Henry

<html><body>
The top four most expensive home sales this week were all over the $4 million mark, according to RP Data.
Views were no doubt a factor for the buyer of number-one property 76/3 Macquarie Street in Bennelong, this week’s most expensive sale. The three-bedroom 202-square-metre harbourfront has panoramic views across Sydney Harbour, including picture postcard vistas of the Opera House, city, Harbour Bridge and Botanic Gardens.
It was sold by Savills agent Anthony Flood in conjunction with The Barron &amp; Dowling Property Group Double Bay agent Kate Dowling.
The week’s top sales were roughly evenly split between New South Wales and Victoria, with NSW properties appearing on the list four times and Victoria represented five times. The ninth property was a stately Northern Territory five-bedroom home with views over Fannie Bay.
1. 76/3 MACQUARIE STREET, SYDNEY, NSW, 2000, three-bedroom unit, sold on May 9 by Savills Sydney for $4.9 million
2. 50 FELLOWS STREET, KEW, VIC, 3101, four-bedroom house, sold at auction on May 12 by Jellis Craig Real Estate Hawthorn for $4.4 million
3. 162 MONT ALBERT ROAD, CANTERBURY, VIC, 3126, four-bedroom house, sold at auction on May 12 by Kay &amp; Burton Real Estate Hawthorn for $4,166,000
4. 6 FITZGERALD STREET, BALWYN, VIC, 3103, four-bedroom house, sold at auction on May 12 by Jellis Craig Real Estate Hawthorn for $4,025,000
5. 4/44 MONA ROAD, DARLING POINT, NSW, 2027, three-bedroom unit, sold at auction by 1st City Hasemer + Caldwell Eyles for $3.7 million
6. 15A WOLLOMBI ROAD, NORTHBRIDGE, NSW, 2063, four-bedroom house, sold on May 9 by Birch Lang and Company Surry Hills for $2.7 million
7. 17 NORTH TERRACE, CLIFTON HILL, VIC, 3068, three-bedroom house, sold at auction on May 12 by Jellis Craig Real Estate Clifton Hill for $2.52 million
8. 66 HUNTER STREET, STRATHFIELD, NSW, 2135, five-bedroom house, sold at auction by George Ellis &amp; Co Real Estate for $2.35 million
9. 74 EAST POINT ROAD, FANNIE BAY, NT, 0820, five-bedroom house, sold at auction on May 12 by Colliers International Darwin for $2.25 million
10. 367 DANKS STREET, MIDDLE PARK, VIC, 3206, five-bedroom house, sold at auction on May 13 by Greg Hocking Real Estate for $2.25 million
 
</body></html>

cknowlton-QnEa6ntUYP

Four of top 10 sales of the week above $4 million: RP Data

<html><body>
When we look abroad we see all sorts of warning signs but we should not forget that the Australian domestic economy is getting a substantial stimulus. Julia Gillard and Wayne Swan are once again spraying money at lower-income earners, and they will spend it.  Australians are highly leveraged into the housing market so they are very responsive to falls in interest rates. This is a big help to middle-class Australia who are being hit by Canberra.  Not only have official rates come down but also there are clear Reserve Bank signals of further falls. Moreover the dollar has slipped, which will give some light to struggling service and manufacturing industries. From this week’s comment by Australia’s largest apartment developer Harry Triguboff it is clear that local buyers have returned to the apartment market. Harry Triguboff is clearly talking his book when he says the market has risen, but in the past when the market has fallen Triguboff has been just as frank so his track record shows when he calls a move you can believe it. The simple fact is that banks may be tardy lending to developers but they will lend to consumers for dwellings. And the apartment market is being boosted by mainland Chinese buying which is a sure sign that while the current indications in China suggest a downturn there is still great momentum and Chinese investors have money spend in Australia. Harry Triguboff believes the way to kick start non-mining Australia is to step up migration. I think that’s a great idea but I know there are many with a different point of view.  There is no doubt that building dwellings is an important part of non-mining Australia. The Reserve Bank was nervous about having strong dwelling activity at the same time as a mining boom but the limitations on bank finance mean that we are not going to see a boom. The greatest threat to the dwelling market is the large number of potential layoffs in the system and the fact that 47% of Australians are frightened about their job.  We will not escape if the Greek crisis blows up but the signs of life in the Australian dwelling market give hope that if Europe can hold it together and China minimises its growth rate decline we will come through in reasonable shape. A dollar fall will help.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator.</a>
 
 
</body></html>

rgottliebsen-VjLFh9nsD4

Signs of life in Australia's housing market could provide fresh stimulus to the economy: Gottliebsen

<html><body>
The Australian Taxation Office has recently released its annual set of Taxation Statistics  (<a target="_blank" href="https://www.ato.gov.au/content/downloads/cor00305922_2010TAXSTATS.pdf">you can see the whole report here</a>) for the 2009-10 financial year.  This is always a fascinating read (shame about the time it takes to be published, though), particularly the tables, which provide an insight about average taxable income across each of Australia’s postcodes.
I’ve provided a summary of the top earning postcodes below across both the capital cities and regional markets as well as those capital city postcodes where mean incomes are the lowest.  We’ve also put together a bunch of thematic maps, which are probably the best way to highlight the wealth trends across the capital cities.
The top earners are the usual suspects, mostly clustered around Sydney Harbour, the western suburbs of Perth and a few bayside/inner eastern suburbs of Melbourne.  Nationally there are 47 postcodes with a mean taxable income of more than $100,000; that’s 11 more than recorded across the previous financial year.  More than half (57%) of these high-income postcodes are located in Sydney, 21% are in Melbourne and 15% are in Perth. Canberra and Brisbane showed only one postcode each recording a mean taxable income of at least $100,000, while the only regional postcode made the high-earners list is  3441, which is home to the Macedon Ranges suburb of Mount Macedon.
Click to enlarge
<a href="/images/stories/rpmay141.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay141thumb.gif"></a>
The highest-income postcodes outside the capital cities are typically located in resource rich areas like Queensland’s Bowen Basin and the Western Australia’s Pilbara. Click to enlarge
<a href="/images/stories/rpmay142.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay142thumb.gif"></a>
The lowest-income capital city postcodes are primarily located in the outer fringes of Melbourne and Adelaide, with these locations comprising 40% and 35% respectively of the top 20 list for lowest capital city mean taxable incomes.  Even though these postcodes have comparatively low taxable incomes, you can see that each one has recorded an increase in mean taxable income over the most recent financial year. Click to enlarge
<a href="/images/stories/rpmay143.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay143thumb.gif"></a>
Maps on page 2


<hr class="system-pagebreak">
Click to enlarge Sydney
<a href="/images/stories/rpmay144.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay144thumb.gif"></a>
Click to enlarge Melbourne
<a href="/images/stories/rpmay1451.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay1451thumb.gif"></a>
Click to enlarge Brisbane
<a href="/images/stories/rpmay1461.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay1461thumb.gif"></a>
Click to enlarge Adelaide
<a href="/images/stories/rpmay147.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay147thumb.gif"></a>
Click to enlarge Perth
<a href="/images/stories/rpmay148.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay148thumb.gif"></a>
Click to enlarge Hobart
<a href="/images/stories/rpmay149.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay149thumb.gif"></a>
Click to enlarge Darwin
<a href="/images/stories/rpmay1410.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay1410thumb.gif"></a>
Tim Lawless  is research director of<a href="https://www.rpdata.com.au/" target="_blank"> RP Data.</a>
 
 
 
</body></html>

tlawless-5VLUrbAk9s

The richest and poorest postcodes in Australia: Tim Lawless

<html><body>
The Reserve Bank‘s interest rate cuts can have mixed results at the top end of the property market.
The Reserve Bank gave us all a bit of a surprise with its recent rate cut of 50 basis points. But the impact of the rate cuts at the top end could be mixed.
The diagram below shows the progress of two identical hypothetical negotiations that started before Easter. Back then the difference between what the sellers wanted and what buyers were prepared to offer was $600,000.
<img src="/images/stories/malmay11.gif">
With the interest rate cuts, a couple of results could eventuate – especially at the top end where often there is only one buyer.
On the one hand, a lower interest rate may give the buyer confidence to offer a higher price, as long as he is feeling secure in his job. At the same time, if the seller was say overseas and had an exposure to currency movements, the interest rate change might make the seller nervous.
A large exchange fluctuation can alter the value of an offer more radically than any agent argy-bargy. So a seller at exchange risk may alter her price and help the deal and a buyer who is secure in his job may also help the deal in going a little stronger, as he finds borrowing to be marginally cheaper. With just a $100,000 difference between offer and expectation there may well be a deal done.
Alternatively, the events of the last few weeks may have the opposite effect. The seller may have looked at some of the recent strong sales on the top-end market and have lifted their expectations even higher, thus widening the gap. The buyer, on the other hand, may look at the interest rate cuts as an indicator of a struggling economy, and become more concerned about his future employment prospects, prompting him to reduce his original offer. Now the deal is even further apart, with a difference of $900,000 between offer and expectation.
The point of this hypothetical is to show how complex negotiations can be at this level, and how as a buyer you’ve got to navigate through a number of possible scenarios.
How do you get validation if you want to do more in the way of due diligence than take the selling agent’s word as gospel?
Personal research: At the moment researching the high end without being in the know has a higher degree of difficulty than an Olympic half pike from the high tower – there seems tremendous secrecy surrounding every sale. With secrecy comes its close friend “uninformed speculation“. And when you throw into the mix limited numbers of sales, inexperienced buyers can bake a very different cake when it comes to value.
Valuers: This is fast becoming a profession under siege as margins are cut dramatically by banks. This means cost-cutting internally, which can lead to a lowering of standards. And once habits of careful fact checking are replaced by wham-bam phone calls to those who have vested interests in rubbery figures, all of a sudden we no longer have credible valuations. Which is not to say that there are not some excellent valuers out there for the top end. But you need to question whether you should rely on those who have massive contracts with large developers, or who approach their valuations at 60 kilometres per hour with a Google maps mentality. Sure, they’ll fit in with what the selling agents tell you. And there won’t be any problems with the bank lending you the money. But if the figures you’re given are unreliable, you may have a big problem on your hands when it comes to resale.
Solution: Deal with the people who do the deals. Engage them to act on your behalf and ask them to justify and prove their selling or buying price thoughts. If the deal is big enough get verification though a reputable valuer – not one recommended by a selling agent, and not one who specialises in $400,000 Werribee homes – but a real one. The fee is between $3,000 and $4,000. In this low transaction and therefore weak information market they can be more valuable than a building inspector.
So how do you negotiate in this market?
When validation is not possible and the market is unclear going forward, you really need to be on your game when making decisions – presuming that good decisions are your aim.
So as boring as it sounds, be clear on your goals and whether they fit this market. For instance, buying a home with a short term time horizon and wanting low risk are almost mutually exclusive concepts right now.
Longe- term buying may well meet your emotional and financial goals.
Let’s skip the search strategies and some due diligence and get to pricing.
In this market its about price framing rather than price negotiation – by which I mean that haggling over $100,000 is really not the main game, it’s getting into the correct $1 million segment in the first place that’s the most important.
Mal James is principal of<a title="James Buyer Advocates" target="_blank" href="https://www.jamesbuyeradvocates.com.au/"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
</body></html>

maljames-vHwm28JUAa

Rate cut and currency changes could have mixed results for top-end property

<html><body>
Minutes released today from the RBA’s May 1 monetary policy meeting show that the continued weak housing, construction and mortgage conditions were factors in the bank cutting the cash rate by 50 basis points, though the pace of house price decline may be slowing.
However, Westpac chief economist Bill Evans says the minutes provide no guidance "to suggest either that a cut can be expected next month or that the board, having cut by a larger than expected amount is prepared to wait and assess the impact over a few months before moving again".  "Our current forecast is for rates to bottom out at 3.25% with cuts of 25bps in both July and September. However, the specific timing of these moves and whether the Bank eventually decides to go a little lower is most uncertain with three weeks between now and the June Board meeting and in particular global developments highly volatile," he says.
The May 1 minutes note that “members were briefed on the continued weakness in the housing market generally and residential building activity in particular”.
The minutes also note that “demand for housing finance had eased in the past few months and recent data suggested that dwelling prices had continued to decline, although there were tentative signs that the pace of decline had been more gradual overall in recent months”
“Despite dwelling prices declining relative to incomes and rises in rental yields, forward-looking indicators implied little prospect of an imminent recovery in housing construction.
“Information from liaison suggested that households were unwilling to commit to contracts for new dwellings because of concerns about job security and declining dwelling prices,” say the May minutes.
The weakness in the housing market was noted in both the April and March minutes after the Reserve Bank reported in February that “there were signs of [house price] stabilisation in some major cities around the end of the year”.
In April the RBA noted “soft overall conditions in the housing sector”.
In March, the RBA said the “housing market remained soft, with auction clearance rates in February broadly unchanged from late 2011.
“Housing credit continued to grow at a slower rate than nominal income.”
 
 
</body></html>

'Continued weakness’ in housing influenced May rate cut decision but little guidance from RBA on future rate cuts

<html><body>
The rate of construction of Melbourne apartment projects is expected to slow due to projects taking longer to transition from marketing to construction, according to the latest research by real estate group Oliver Hume.
The group also forecasts the number of high-rise building approvals to halve over 2011-12.
According to Oliver Hume, the high number of active projects in part suggests a softening in the sector, “as absorption rates slow with projects taking longer to move to construction”
March quarter figures in the Melbourne Apartment Market report show that the number of apartment projects being developed in the metropolitan region has fallen below 300 for the fourth successive quarter.
Although there are fewer active projects, the higher number of apartments in each project expected to be fully developed could mean more units being marketed off-the-plan than in the previous corresponding quarter.
In total there were 295 active projects in the March quarter (the highest since the June quarter 2011), which if fully developed ("and more will than will not") will deliver around 40,100 apartments: compared with around 321 projects and 37,230 apartments in the corresponding quarter 12 months ago.
Of these 40,100 apartments, more than half – 22,000 – are currently under construction or already completed.
Five local government areas – Boroondara, Melbourne, Port Phillip, Stonnington and Yarra – contain more than 55% of all metropolitan Melbourne apartment projects, compared with 80% of all apartment projects in 2008.
Over the quarter a total of 35 new projects were released, injecting close to 3,000 apartments into the pipeline. 
During the previous quarter there were 36 new projects released, containing approximately 3,030 apartments. 
The most active market is the City of Melbourne, with 17,650 apartments, followed by Stonnington and Yarra. Boroondara and Port Phillip make up the top five.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/oh.gif"><img src="/images/stories/ohthumb.gif"></a>
According to Oliver Hume, the median one- and two-bedroom entry prices for apartments are $366,750 and $502,000 respectively, with the price difference between one- and two-bedroom apartments continuing to drop. The difference is now only $135,500, down from around $151,000 six months ago.
Since 2008, the entry-level price of a one-bedroom apartment in metropolitan Melbourne has risen at an average rate of 2.4% a year, from $335,000 to $366,500. 
The entry-level price of a two-bedroom apartment has risen by 2.9% a year, from $450,000 to $520,000. 
The report found that only one in every five new projects contained some form of community facilities or amenities. 
Across all new releases, the median entry living area of both one and two-bedroom apartments is 44 and 64 square metres respectively. 
According to Oliver Hume, high-rise building approvals in Melbourne are expected to halve over 2011-12 compared with a year ago.
The real estate group says high-rise approvals will slip back to around 17% of all approvals, comprising a total of around 8,000 approvals. This is down from some 15,000 in 2010-11 and about the same as in 2009-10.
High-rise apartment approvals in Victoria peaked in 2010-11 to just over 60% of all multi-unit dwelling approvals and 41% of total approvals, with most of these developments occurring around the Melbourne CBD.
Andrew Perkins, national head of research at Oliver Hume, expects lower rates of approval for the rest of the year following the largest-ever spike in Melbourne apartment developments.
The drop in high-rise building approvals comes alongside an overall dip in multi-unit approvals with Oliver Hume forecasting multi-unit approvals in 2011-12 to slip back to 15,900 or 35% of all dwelling approvals compared to a dwelling approval peak of 24,400 in 2011-12.
</body></html>

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News