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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Today I want to try and add a new chapter to our understanding of Australia’s $4 trillion housing market. This is a story about massive divergence followed by convergence in state-wide housing costs. It traces the stunning rise in the price of NSW, ACT, and Victorian housing during the late 1990s and early 2000s followed by years of relative stasis. Just as housing costs across this slab of the eastern seaboard started to freeze or slow down, an even more striking boom was gathering momentum in the mining states of Western Australia, Queensland and the Northern Territory.
Most readers should now be familiar with the well-trodden explanation of what factors first drove the unusually sharp house price appreciation in Australia during the 1990s and 2000s. This is a narrative that has been regularly relayed by both the central bank and myself.
The short version goes like this: take the last 30 or so years and split them in half around the time that the RBA adopted an “inflation target”. While informally this occurred in 1993, it was officially set in stone in 1996, so let’s take 1995 as a crude line in the sane between the pre- and post- inflation targeting epochs.
Between 1980 and 1995 inflation in Australia averaged 6.6% per annum. Unsurprisingly, variable home loan rates also averaged an astonishingly – for anyone under the age of 35 – high 12.7%. And by 1995, the value of total housing debt held by families divided by their disposable incomes was only about 55%.
Average headline inflation has dropped 58% from its 1980 to 1995 level to just 2.8% per annum in the period since. As night follows day, average variable home loan rates have also plummeted to 7.5%. The 41% decline in home loan costs has, of course, enabled families to boost the amount of mortgage debt they can service for any given level of income. And so Australia’s mortgage debt-to-household income ratio started rising from its 55% level in 1995 to a peak of 156% by 2006. Importantly, it has not increased any further since this pre-GFC apogee – that is, for the last six years, housing credit has expanded at about the same rate as family incomes. Indeed, as at December 2011, it was off a touch at 149.6%, according to the RBA.
With the above insights in mind, our research team has shown that about 96% of the increase in median house prices in Australia between 1985 and today can be explained by changes in household borrowing capacity resulting from the long-term reduction in mortgage rates combined with the growth in family incomes (see first chart below). Said another way, the growth in Aussie housing costs over the last 25-30 years is entirely explicable when one references incomes and interest rates (i.e., we have not even discussed the supply-side at this stage).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/may151.gif"><img src="/images/stories/may151thumb.gif"></a>
Yet there appears to be another story to be told. And this one relates to the time that it took for the enormous positive shock to household purchasing power (via lower rates and higher incomes) to become fully capitalised into asset prices.
In the chart above you can see that the blue purchasing power line lies above the red median dwelling price line up until about 2002-2003. This is one way of saying that households could afford to buy more expensive homes – if they assumed the changes to incomes and rates were permanent – but understandably took some time to bid up the value of housing to a level that equated with their purchasing power.
The chart also seems to suggest that, setting aside supply-side considerations, asset values did run ahead of income – and interest-rate linked fundamentals in the years after 2002-2003.
In my next exercise I want to lift the lid on the national level data to study how housing costs across states have diverged over time. In order to do so I use state-wide median dwelling prices since 1990 from NSW, Victoria, Queensland, Tasmania, Western Australia, South Australia, the ACT and the Northern Territory. The chart below illustrates the change in these raw median prices over time.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/may152.gif"><img src="/images/stories/may152thumb.gif"></a>
While at first it is hard to make head or tail of the chart, if you look closely you can see apparent regime shifts in the state-wide capital growth rates: in particular, NSW, the ACT, and Victoria experience very robust dwelling price gains between 2000 and 2003, which, to varying degrees, stops or slows down thereafter.
House price inflation in Queensland, South Australia, and Tasmania step ups with a lag, but, importantly, continues to kick-on after 2003, recording healthy capital growth right through to end 2007.
It is in this period 2003 to 2007 that we also start to find an extraordinary acceleration in the cost of Western Australian homes, which is denoted by the aqua blue line in the chart above. Dwelling prices in the Northern Territory also accelerate alongside Western Australia, albeit at a lower rate.
Here again one sees another difference: while Queensland and Western Australia suffer house price falls during the GFC, which they claw back in 2009 and 2010, home values in the  Northern Territory appear to keep appreciating during the crisis until they finally run out of steam at the end of 2009.
To more precisely measure the time-series divergence in national housing costs I created two new benchmarks that are highlighted in the next chart. The blue line is simply the highest state median dwelling price divided by the lowest state median during any given month between 1990 and today.
The red line tackles dispersion another way: it subtracts the difference between the highest and lowest state medians and then divides this number by the national median price. Both metrics tell similar stories.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/may153.gif"><img src="/images/stories/may153thumb.gif"></a>
Irrespective of which measure one uses, the analysis shows us that house prices across Australia underwent an enormous break in the early 2000s fuelled by NSW, Victoria and the ACT, which was only remedied in the years after 2003 by catch-up growth across the other states.
Whereas in the decade 1990 to 1999 the highest state median price was, on average, about 200% the size of the lowest, this differential soared to 321% by the end of 2002. After that climax (refer to the spike in the chart above), the coincidence of much lower capital growth in NSW, Victoria and the ACT combined with faster gains in almost every other region allowed the ratio to normalise back to its pre-boom average of 200%. And, comfortingly, it has stayed around this level since 2006.
One explanation for the phenomenon highlighted might be variations in income growth rates, and hence purchasing power, across the states. Perhaps this was just a case of the NSW, Victorian and ACT economic cycles leading the remaining states.
We can try to address this issue by deflating state house prices by state disposable incomes. Once we have done this, we can repeat the analysis above to determine whether the pattern still holds.
My final two graphs summarise the results over the period 1995 through to end 2011. The first chart shows the individual state house price-to-income ratios indexed to 100 since 1995. The second replicates my earlier analysis by dividing the highest state ratio by the lowest.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/may154.gif"><img src="/images/stories/may154humb.gif"></a>
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/may155.gif"><img src="/images/stories/may155thumb.gif"></a>
 
The final chart demonstrates that the same dynamics in housing cost dispersion have asserted themselves even after deflating by state incomes: namely, a very large increase in the housing valuation gap from 1995 to 2002-2003, when the highest state price-to-income ratio was around 200% the size of the lowest. By December 2011 this gap had fallen back to just 130%. That is to say, housing costs had converged to their pre-boom levels.
An interesting question for researchers nevertheless remains.  If these changes in housing costs were triggered by the tremendous increase in purchasing power permitted by the decline in mortgage rates in the 1990s, which in turn drove a commensurate increase in household leverage, why did the transmission to house prices  occur at such different times in different states? One for another day, eh.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm" target="_blank">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
 
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chrisjoye-JYhJsTrNRC

The gap narrows as east almost meets west (and Queensland) in housing prices and costs: Christopher Joye 

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The world banking system is about to be tested once again by another European crisis because politicians and central bankers underestimated the power of people. And here in Australia we have a version of the ‘Greek game’ being played under the surface.
In Europe whether they be Greek, French or Spanish, 21st-century Europeans will only suffer German imposed austerity for a limited period. The Greek crisis will be the trigger for the euro to be used by fewer countries. Bankers will suffer big losses because they underestimated people power and did not understand that in long term you can’t have a common currency operating in vastly different economies.
The Greek crisis gains the headlines but deep down there is a global consumer nervousness sweeping the Western world. Australian consumers are as nervous about the future as those in Europe or the US. Among the major developed countries around half of consumers feel they are in financial trouble or not financially secure.
Fascinatingly, Chinese consumers feel the most secure. Enlarge the graph below and you will be fascinated by the trends that emerge.
Click to enlarge
<a href="/images/stories/gott1.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/gott1thumb.gif"></a>
Australians, along with Germans, share the ‘honour’ of having the biggest rise in the number of consumers who feel they are in financial trouble or not financially secure. In Australia the number rose a whopping 11% from 36 to 47%.
Australians are affected by the European crisis because it boosts the cost of our wholesale overseas borrowing by banks. But we also have our version of the Greek disease. Like the Greeks, we allowed our worker productivity to fall dramatically and we then were handed a high dollar courtesy of the mining investment boom. (The Greeks got a high Euro). But then our Canberra crazies dreamed up a carbon tax to further boost the cost of Australian goods and services and then sprayed money to lower income people while squeezing middle income Australia. (Federal Budget 2012: Ripping into middle Australia, May 8). Just as the Greek politicians are being taught by their people, so will Australian politicians who do silly things be taught a lesson.
This lack of job security is causing a dramatic change in Australian spending habits and I think the change is going to be with us for the medium term so businesses better get used to it.
For example the percentage of Australian consumers saying they will spend less on discretionary items in the next year increased from 47% in 2011 to 50% in 2012. This is higher than in the US (46%), the UK (47%) and about level of the average of the major European economies surveyed.
In other words Australians are saving.
But they are also changing the way they are spending and are increasingly seeking and expecting special offers. They are using the internet to compare prices and are increasingly shopping overseas.
I have taken out the graph of Australian internet shopping as a reminder to all those who own shopping centres – your world is being turned upside down so you had better change your ways including lowering exorbitant rents. This particularly applies to those aiming at higher income consumer markets.
Just as a batch of new politicians will not be able to ease the Greek misery, so this switch to the internet is going to gather even more momentum. Here is the graph.
Click to enlarge
<a href="/images/stories/gott2.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/gott2thumb.gif"></a>
Footnote: The Boston Consulting Group’s annual Consumer Sentiment Survey was conducted in April and covered 15,000 consumers in 16 countries. The survey included more than 1,400 consumers in Australia.
 
This article originally appeared on <a target="_blank" href="https://www.businessspectator.com.au/">Business Spectator.</a>
 
 
 
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rgottliebsen-VjLFh9nsD4

Australian consumers are as nervous as Greeks about their economic future: Gottliebsen

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Demand for fixed-rate mortgages soared to a four-year high in March as customers took advantage of an extremely competitive market and low fixed rates on offer.
Analysis of ABS housing finance data by CommSec shows that nearly 15% of home loans taken out in March were on fixed-rate terms, the highest proportion since April 2008, when fixed rate mortgages accounted for 19% of all home loan commitments.
CommSec chief economist Craig James says “home loan buyers clearly are shopping around for the best deals, and that may mean more cocktail loans – part variable, part fixed (known as a split loan)”.
Borrowers are also taking advantage of fixed rates that are currently, on average, lower than variable-rate mortgages.
According to research by mortgage comparison website RateCity.com.au, the average three-year fixed rate is 6.24%, compared with the standard variable mortgage rate average of 6.74%.
RateCity.com.au lists IMB Building Society’s three-year fixed rate product, which has an interest rate of 5.89% as the lowest rate in the market, followed by the Greater Building Society at 5.95%.
Lenders to have cut their fixed-rate mortgages recently include ME Bank, which cut its three-year fixed rate on the Super Member Home Loan to 5.99% on May 7.
Towards the end of April Westpac brands Rams, Bank of Melbourne and St George all cut their three-year fixed-rate products to 5.99% (the two banks for a limited time).
The growing appeal of fixed rate mortgages was foreshadowed in March Mortgage Choice figures (released in April), which found that the popularity of fixed-rate loans among its borrowers had jumped to a four-year high. Fixed-rate loans accounted for 26% of approved home loans written by Mortgage Choice mortgage brokers in March, up from 20.6% in February and well above the 12-month average of 17.7%.
At the time, Mortgage Choice spokesperson Belinda Williamson attributed the increase in demand for fixed-rate mortgages to concerns over that the Reserve Bank might increase the cash rate or lenders moving their interest rates independently of the central bank.
“Borrowers’ appetites for fixed-rate loans may have also been spurred on by competitive lender pricing,” Williamson added.
In April 2008 borrowers locked in fixed rate mortgages as the cash rate climbed to 7.25%, the highest rate since December 1994, following six years of incremental rate increases.
However, borrowers that switched to fixed-rate products in April 2008 were severely stung as the RBA entered into a big rate cutting cycle soon after  (starting in September 2008) to counter the effects of the GFC, reducing the cash rate from 7.25% to a record low of 3% by April 2009.
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lschlesinger-FZcF9M3vE6

Fixed-rate mortgage demand reaches four-year high: ABS

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When the GST came along on July 1, 2000 there was the "promise" that lots of other taxes, duties and charges, in particular state taxes would be abolished or at least reduced. But in the intervening years changes have been minimal and only at the margins, for example mortgage duties have been abolished in most states.
A policy change to remove or reduce the payment of stamp duty applied to real estate post-GST was and still is an illusive target. Today there are few indicators that any big changes are coming our way in the near future.
This is not to suggest that change will never come, in fact just the opposite. Various state governments are happy to use stamp duty concessions to stimulate various sectors of the market. They have become very comfortable with the idea of making concessions that are in reality no different from a promotion that a developer might offer.
Common incentives on offer can frequently target first time buyers, or older buyers or aim to stimulate construction activity. Sometimes these target groups are seen as disadvantaged and stamp duty savings can then be promoted in combination with other grants, like the FHB grant to directly stimulate activity.
However, this on-again, off-again approach can create market distortions and when the central idea is for example to stimulate the construction of new homes, it’s hard to argue why this application of stamp duty should not be removed permanently.
And I would have to suggest that such a change would need to be a national initiative. New construction is a major driver of economic activity and it has a huge flow on affect that runs deeply into many sectors of the economy and so the benefits appear obvious.
A national approach is desirable, to avoid different states simply chasing policy so their local market is not disadvantaged. Lets change the rules in this or that state so that an adjacent state does not gain all the advantages, appears to be a common theme. A national policy would also present a uniform market for international buyers looking at Australia, and avoid a major influx into any particular state. Again with the possibility of creating a local distortion.
The under supply of dwellings in almost all major markets is further reason to consider this permanent change to duty and with a predicted national undersupply of 170,000 forecast for 2013 (Source: BIS Shrapnel) removing stamp duty would hopefully kickstart the resources necessary to overcome this shortage.
Older buyers have a role to play
But this is not a simple area of policy, the predicated undersupply of new homes also needs to be compared with the already established housing stock, and there are some very interesting trends here that are for instance being impacted by older homeowners.
A study in 2010 by the Australian Housing and Urban Research Institute found that 84% of homes occupied by people over 55 were living in a home with one or more spare bedrooms. And while some of this spare capacity would be used for family or lifestyle reasons, downsizing was possibly being restrained by the impact of stamp duty.
In NSW there is an existing concession, where the Senior’s Principal Place of Residence duty exemption applies to people between 55 and 65 years of age buying a new house before 1 July 2012 when the concession is set to end.
Stamp duty concessions for older people downsizing would see more homes in established areas released onto the market and this would also have the impact of better utilising of existing infrastructure, as many of these homes would be in established areas.
Here I can see good reason for such a policy as funding new infrastructure is almost always sighted as one of the main reasons that high council levies apply in new residential development areas. But could I also suggest that this type of ‘recycling’ of existing homes and local infrastructure could be a solid argument to collect less stamp duty.
Such stamp duty incentives do produce structural change in the market as we have seen recently in Sydney. The $600,000 cap on the current NSW Home Builders Bonus has for example seen a big lift in the number of one-bedroom apartments coming onto the market, and they have proved popular with investors and first time buyers.
Post June 30 – what will happen in NSW?
When it comes to the undersupply of housing, I have already highlighted that NSW has the biggest shortfall of more than 101,000 dwelling forecast for 2013, and construction activity has lagged for many years. And this is even with some large land release area’s opening in the cities south-west and north-west.
Activity simply refuses to budge and this is despite what should be a big level of pent up demand, and yet regardless of the shortfall demand has failed to greatly boost construction. The pressure from pent up demand is somehow not materialising.
And while there will never be one simple answer, the impact of stamp duty must be counted among the reasons, and this would suggest that the current concessions for First Time Buyers should be extended across the entire market. The FHB market does not exist in isolation and market-wide activity would benefit.
A more general concession at a realistic price level and possibly over a sliding scale could help generate more extensive market activity.
Some may still argue that this could further dampen affordability if the exemptions for stamp duty was not only limited to first time buyers, but we need to keep in mind that there are other FHB grants and also these same buyers would have access to a wider choice of locations helping to create a deeper market.
The case for change
Stamp duty on real estate transactions is a big source of revenue for every state government. This is essential revenue, but does the burden fall fairly and is the ‘tax’ more complex than it needs to be. Clearly every state and territory government is happy enough to use stamp duty as a form of concession with varied and ongoing schemes, and so there are many precedents of sorts for change.
Australians generally pay stamp duty on all property transfers (accepting that there are varied and ongoing concessions) but on our principal residence we pay no capital gains and in 2012-13 according the Federal Treasury that concession will cost the federal budget $35.5 billion, that’s almost 9.5% of all federal government expenses.
Any move to change this policy would be almost impossible, but it is perhaps the absence of a CGT that permits other high property taxes, including stamp duty to be justified.
Stamp duty concessions are almost always tipped in favour of first-time buyers, and associated with new homes, but questions remain as to what impact this has on building activity. This is also as noted a more complex area because the concessions vary between states and they are almost always transitory.
Stamp duty is an unpredictable tax for the states and despite the cash flowing from the GST the revenue would need to be captured from other structural changes in the economy. But clearly stamp duty remains a barrier to everyone in the housing market, young, old and even those looking for greater flexibility with employment are possibly constrained by its impact, being reluctant to move.
There are, however, some more immediate changes possible that could include greater indexation of rates of duty, including the permanent removal of duty for first-time buyers and some appreciation of the fact that the duty applies to the final price of a new home where there would already be many other layers of taxation. When the duty is paid is also an area where policy could be modified, helping to reduce the up-front costs of buying a residential property.
With the NSW state budget set to be announced in two months' time, will change result with the possible application of duty concessions to the wider market?
However, let's hope that we do not take a lead from Queensland, where from August 1 last year stamp duty for owner-occupiers on property purchases increased. But in contrast at the same time to stimulate the building industry, discounts on stamp duty for anyone buying or building a new home were introduced, leaving existing dwellings to bear the brunt of the increases. That’s a mixed message by any conclusion.
Peter Chittenden is managing director for residential of <a target="_blank" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International</a>
 
 
 
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pchittenden-eLqUUC8TWW

It's time for a major change to stamp duty

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There is no doubt you can certainly accelerate your overall return from commercial property by gearing up with a loan.
Even so, you should first make sure that you can say "yes" to each of the following questions.
<ul>
<li>Am I approaching this purchase over a five- to seven-year time frame?</li>
<li>Is borrowing the only way for me to reach my investment objectives?</li>
<li>Do I have other income, outside of what the property will generate?</li>
<li>Would I be able to cover the mortgage payments, if interest rates were to rise 3%?</li>
<li>Will my equity represent at least 30% of the overall value?</li>
<li>Does the intended property make sense, without relying upon depreciation benefits?</li>
</ul>
Understanding the proper time frame
While you may choose (or need) to sell your commercial property in three or four years’ time, you ought to initially approach each purchase as a five- to seven-year exercise.
And that's mainly because your greatest costs (as with any investment) will always be at the beginning and the end of every transaction.
Therefore, it is always wise to spread those costs over at least five years — rather than look to turn properties over quickly.
Adequate coverage
Assuming you have no choice but to borrow, your financier will (and you should too) be concerned about having sufficient coverage for your mortgage payments.
For most commercial properties with 70% gearing, your tenant should cover your normal loan payments at current interest levels.
But what if the tenant were to leave at the end of the lease? Or interest rates were to suddenly rise?
The second issue can be resolved by simply fixing your interest rate, to provide you with greater comfort. Whereas tenant continuity is probably best addressed through ensuring your property is professionally managed.
That way, there will be a good ongoing relationship established with the tenant. And there is every likelihood of the lease being extended.
Bottom line: Commercial property is capable of providing you with some quite extraordinary returns.
But like any business venture, you need to plan things out and have a clear set of investment objectives and buying criteria.
With those in place, sensible borrowing can then greatly enhance the overall results you achieve.
 
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
 
 
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chrislang-EQKojcgJPV

Borrowing money to invest in commercial property must be done sensibly

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If you've been following the budget and numerous political highlights over the past few weeks and getting tired of fluctuating insecurity over interest rate movements and unemployment figures, take a break and look towards the property market, because it's currently in a phase of unchangeable stability. However, the aesthetics of the localities we have become familiar over the last 20 years have changed considerably – and consequently the value and potential liveability the existing established real estate holds has, and is, changing as well.
Australia 2030, and the shape of our cities as we move towards 2030, is firmly in the hands of urban developers and well underway for rapid expansion. For example, in <place><city>Sydney</city></place>, by 2030 the focus is to stop urban sprawl and the development of freestanding houses. According to <a target="_blank" href="https://bit.ly/JvstFb">Graham Jahn</a>, director of planning, development and transport for the City of Sydney, the new city will be “compact” apartment living close to the CBD, providing a “more communal way of life”.
It’s prospected that by 2031, the 26 square kilometres of Sydney City will have 55,000 new dwellings housing 88,000 new permanent residents. Needless to say, high-rise towers will be the dominant feature and any outdoor living activities for those in inner-city localities will need to take place in the local communal park.
Across all states, the building boom of high-rise apartments is astounding. In Melbourne, plans are well underway to accommodate 90,000 new dwellings by 2031. In Brisbane, the Infinity Tower – which will dominate the skyline and provide “546 meticulously designed apartments” over 81 levels – is one of many projects currently under construction. Every capital city government website has a prospected plan for 2030, which outlines its new vision for Australian cultural life.
Even with the recent slowdown in population growth – which at 1.4% (ending July 2011) is the lowest it’s been since 2005-06, our capital cities are crying out with growing pains – not due to lack of roof space as such, but lack of affordable roof space and affordable rental accommodation. However, despite the bursts of construction, the buying market remains soft. Gaining credit is harder than it was pre-GFC, first-home buyers don’t generally qualify for high-rise accommodation due to various loan restrictions– issues I have pointed out previously. Neither does this type of accommodation offer affordable rental opportunities, as any quick search through internet listings will prove. Instead, they are principally marketed to the foreign market, for which there are no buying restrictions for new or off-the-plan dwellings – and it can only be hoped demand is sufficient, considering our high Aussie dollar, to soak up the reserves currently in progress.
Residents familiar with the current outlook of their neighborhoods are understandably concerned. Organisations such as <a target="_blank" href="https://www.sos.org.au/">Save Our Suburbs </a>– active in various states across Australia – have been established to combat development of high-density housing and the consequences of an increasing population. Needless to say, there is little if any consultation with the community in light of the new developments affecting various neighborhoods. As Save Our Suburbs points out on their NSW website “the majority of communities report that they feel their governments are not concerned with community preferences on planning issues”.
It’s a common cry – no one likes a neighborhood changing. And as we’re all aware, having a block of flats or large subdivision constructed in the near vicinity will not only affect the streetscape increasing the general foot traffic, it can also have consequences on local public transport facilities, which struggle to cater for a higher numbers of residents.
The federal government’s <a target="_blank" href="https://bit.ly/JvtIEl">‘Our Cities’ discussion paper</a> reads like a tourist brochure – full of pictures of laughing residents or artist drawings of leafy parks with children playing and parents picnicking. Within it, the national 2030 vision is set out
“To provide for our communities, urban development needs to offer a diversity of housing options that incorporate a substantial component of affordable housing that is age friendly, innovative and has good environmental performance.”
I’m not so sure the mass building of high-rise projects fits into the description above, however the words are noble in themselves.
The initiatives outlined in the report to improve housing affordability include the ‘Housing Affordability Fund’. However, as I’ve pointed out previously, it’s hardly an initiative to be proud of. When I last checked the<a href="https://www.anao.gov.au/Publications/Audit-Reports/2011-2012/Implementation-and-Management-of-the-Housing-Affordability-Fund"> 2011 audit</a>, the fund had outlaid $12 million for administration and set aside a promised $500 million for the projects , yet on last count it had only assisted 749 home buyers, while encountering some major administrative cock ups along the way. I don’t call this improving affordability or wise use of taxpayer funds. Yet it’s an initiative the government continues to boast about.
Also outlined in the report is <a href="https://www.coag.gov.au/coag_meeting_outcomes/2008-11-29/docs/20081129_national_affordable_housing_factsheet.pdf">National Affordable Housing Agreement</a>, which requires each state to dedicate federal funds towards the achievement of “key outcomes”. Some of the outcomes include decreasing homelessness and ensuring people have access to affordable rental accommodation and housing. Any initiatives dedicated towards such outcomes are commendable, however when you delve into the progress reports to see how progress for this agreement is tracking, highlighted are some serious problems in auditing the results. The latest report states:
“It is not possible to track progress towards each of these outcomes on an annual basis. Performance reporting under the agreement is particularly reliant on survey and census data that are not available annually. In addition, the performance framework itself is still under development, and not all outcomes are currently able to be measured.”
Furthermore:
“There is very limited information on the nature and extent of homelessness and risk of homelessness, including the housing” 
And of course, last year’s admission from the ABS showing its homeless figures had been <a target="_blank" href="https://www.theaustralian.com.au/national-affairs/opinion/inflating-homeless-to-fund-lobbyists/story-e6frgd0x-1226165274504">“inflated” </a>further confuses the data and ignited arguments from homeless advocates who maintained the existing figures had been underestimated, not over-estimated.
 
<hr class="system-pagebreak">
 
The federal budget outlined its commitment to the first-home buyers’ grant, but in truth, what a dismal failure it’s been. The percentage of first-home buyers “shopping” in the market is no higher now as a result of the grant and rarely fluctuates from the long-term average. State by state, first home buyer activity currently varies between 13.1 per cent in <state>South Australia</state> to 23 per cent in the <place><state>Northern Territory</state></place>. As many ‘potential’ first home buyers will now tell you, the dream of buying a ‘home,’ is just that – ‘a dream’.
Commitment to the <a target="_blank" href="https://bit.ly/JagS23">National Rental Affordability Scheme</a> also remains in this year’s budget. It’s a commendable initiative established to increase the supply of affordable rental accommodation for “key workers” such as police officers, nurses, teachers, and so forth. The scheme provides financial incentives for investors to purchase housing, which is identified as “suitable” by the government.
There are conditions of course; there is a requirement to hold the property for a minimum of 10 years while allowing a rental rate 20% below the market average. For doing so, there is an annual income tax kick back – currently at $9,524 per dwelling, indexed annually to the rental component of the CPI. However, it’s not intended for the solo investor and neither is it “social housing”. It’s primarily for property trusts and superannuation funds, and the accommodation is intended for “low- to middle-income wage earners”. Although the scheme has helped a proportion of families – as the Tenants Union rightly <a target="_blank" href="https://bit.ly/KPvbU8">points out</a> – the rents charged are still too expensive for a large number of low-income households. Therefore, there are still a too many falling through the net.
As for the social housing initiative, this has no extra money forthcoming in the budget. As <a target="_blank" href="https://www.shelter.org.au/">Shelter </a>and <a target="_blank" href="https://www.anglicare.org.au/">Anglicare</a> point out, any drop in the waiting list figures nationally have been due to a tightening of eligibility criteria in many jurisdictions rather than a genuine reduction. Again, in light of this, monitoring numbers of those in need starts to get blurred in the rhetoric that travels back and forth between government and social housing advocates. Trying to assess the success or failure of the project is not an easy task – it often gets lost in various criticisms over hasty built or inappropriately located projects. However, broadly speaking the initiative is a good one especially when you consider there are some 250,000 people sitting on waiting lists for public housing often waiting nine months or more.
In Victoria the public housing problem has reached crisis point after the release of its recent audit report, which showed the state was “facing a cash crisis, with all cash reserves expected to be exhausted during the 2012–13 financial year based on current budget estimates”. Interestingly enough, the government has come up with <a target="_blank" href="https://bit.ly/JPImVX">'radical reforms'</a> to combat this problem, which look positive in themselves, however judging from past record, expensive reports into various reforms never seem to transpire into promised results.
For example, if you go into the <a target="_blank" href="https://www.imap.vic.gov.au/">IMAP</a> reports (the Inner Melbourne Action Plan ) a collaboration of inner-city councils currently assisting in the state government developments towards 2030, you’ll find a specific section devoted to “housing affordability”.
It seems since mid-2009 letters have been going back and forth between various ministers trying to investigate site-specific opportunities for “inclusionary zoning” (a process whereby governments mandate a certain proportion of a new development be marketed below market rates).
Fast forward to mid-2010, and finally a suitable site was found at 400 City Road in South Melbourne. Unfortunately, or perhaps predictably, it failed to gain support from the state government. So back to square one, and now, three years since ‘inclusionary zoning’ was mentioned we’re apparently awaiting another report into “Community Land Trust Models and their application in Australia”. According to the latest progress paper “reports will be provided to the Committee in due course”. An “end date” for “due course” isn’t provided
All of this rhetoric about social housing wouldn’t be such a problem if we hadn’t experienced such a boom in house prices for which wage growth couldn’t keep pace. It’s all OK for some economists to argue that when you take the national wage growth and national house price, the inflation has not been so extreme. This is true; however the main sticking point with the argument is contained with the stubbornness to keep the bulk of development in inner-city locations. Limited outer urban land releases have also been another hot topic along with hefty development overlays in growth activity centers, which add, disproportionably, to the capital cost.
Those benefiting from increased equity in their house prices have taken full advantage of Australia’s negative gearing policies to purchase a second, third and fourth investment properties. With more borrowing power than first-home buyers looking for similar established homes, this has locked increasing numbers out of home ownership.
Rents have increased disproportionably to wage growth, and there’s growing disconcertment in the younger population charged with handing over 50% or more of the weekly wage for the privilege of shelter.
How many uncountable reports have there been into extending train lines to outer urban areas to provide greater options for first-home buyers willing to compromise on location and move further out? Better transport systems would enable them to do so. However the reports have resulted in nothing more than expensive promises that remain sitting on a minister’s desk. Along with this, it could be argued that money spent on government first-home buyer incentives has been wasted, ineffectively inflating market prices rather than improving affordability.
The big key to our problem is allowing those who are working on an average wage the chance to enter the property market should they choose to do so. This can only be achieved with lower property prices and more affordable stock to meet demand. Back to the report I cited at the beginning of this article and it boldly announces: “Australia’s future tax system noted that some existing taxes on housing, especially stamp duties, are inefficient and can impede housing supply. The review suggested that reforms such as introducing a broad based land tax, along with changes to the taxation of rental housing and rent assistance, would go some way toward improving housing affordability”.
I don’t know the cost of the ‘Australia’s future tax system” review. However, it’s clear that the current government has firmly ruled out any changes to current models of negative gearing or increases to rental assistance.
As for first-home buyers – the road ahead is bleak. The advice I have is to start saving young and take advantage of the few positive initiatives out there such as the <a target="_blank" href="https://bit.ly/IHqSym">first-home buyers savings account</a>. Don’t be afraid to compromise on expectations and purchase a first property in an area further out from the city where land is more affordable. Considering our population growth and current future economic forecast, outer-suburban locations will continue to attract strong demand.
Keep your feet on the ground and be aware of the sacrifices property ownership entails before stepping in. If you’re prepared and able to tread the road, and have the ability to do so, it’s hard to beat the security that results from owning your own home. It’s just a shame more having been given the opportunity to do so.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on <a href="https://bit.ly/I7SGaw">The 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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While governments provide rhetoric and reports, thousands are waiting for real housing solutions

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The Reserve Bank does not expect the residential construction sector to mount a recovery in the near future, assistant governor Philip Lowe has said in a speech comparing the performance of the mining and non-mining sections of the economy.
His comments come as ABS housing finance figures show the number of loans for the construction or purchase of new homes lifted by 3.5% in March but are still tracking at post-GFC levels of below 8,000 monthly mortgage commitments.
Lowe said the RBA had expected dwelling approvals to pick up gradually over 2011, but this pick-up had not eventuated.
He described this as the “biggest surprise” in terms of the demand-side of the economy.
“One possible explanation for this is that it is one of the side effects of a return to more traditional savings and borrowing behaviour by households,” Lowe said.
“This change in behaviour is having ripple effects through the economy, including through a lowering of expected capital gains on housing.
“This has made developers, financiers and households less willing to commit to new construction despite rising rental yields, lower prices relative to income and ongoing growth in population.
“While, at some point, the improving fundamentals should generate a pick-up in home building, the recent forward-looking indicators do not suggest that this is imminent,” Lowe said.
During the speech, Lowe also highlighted that the RBA expects the current low rate of underlying inflation to persist over the next few years, which would give it the flexibility to cut interest rates further.
“The bank’s latest inflation forecast is for underlying inflation, abstracting from the effects of the carbon price, to stay close to its recent rate over the next one to two years,” said.
He also highlighted big differences in the growth rates and demand for goods and services related to the mining sector compared with the non-mining sector, with the March quarter CP data showing “declines in the prices of most goods, the price of domestic holidays, and for the price of new dwellings”.
“These are all areas where demand growth has been soft and firms’ margins are under downward pressure,” Lowe said.
He said the RBA expected overall GDP growth to “return to around trend over the forecast horizon” with recent reductions in the cash rate providing “some boost to demand in the non-mining-related parts of the economy”.
“However, it does seem likely that growth in some sectors will remain below the average experienced over the past couple of decades.
“How things develop will depend importantly on the ability of firms to improve their productivity and on the ability of the labour market to match workers with the new jobs being created.”
 
 
 
 
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No imminent recovery in home building: RBA

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The auctions market has continued to perform reasonably well during the autumn slowdown, with experts and analysts saying the industry may have enough momentum to push through the next few months with a better result than last year.
The comments come after <a target="_blank" href="/news">ANZ slashed its mortgage rates last Friday by 37 basis point</a>s, following the other big three banks in cutting rates after the Reserve Bank's shock decision two weeks ago.
According to the Real Estate Institute of Victoria, Melbourne recorded a clearance rate of 63% out of 591 properties on the market, compared to 61% last week and 52% the same time last year, with 581 properties.
REIV chief executive Enzo Raimondo said in a statement that this weekend last year represented a "turning point", when sales started to decline: "At this point, that outcome looks unlikely [to be] repeated this year, which is positive news for vendors".
Analysts are inclined to agree. Andrew Wilson of Australian Property Monitors said this morning the auction market has certainly remained more active, "but we have to take this all in context of what's happening in the broader economy".
"Last year, after a reasonable autumn period, we started to get some broader economic impacts on the housing market. The European debt crisis, the tsunami in Japan and other issues impacted confidence and moved its way through the spring period a well."
Now, he says, it's a very different situation.
"We've had a growth in auction clearance rates in Melbourne and Sydney, and these rates have improved, in all cities. Numbers are still low in terms of properties being offered, but not far off last year."
"The signs are positive the momentum can continue through what is normally a quieter, winter period. That's because the economic dynamics are different, and confidence is lifting as well. We're more optimistic than a year ago."
Interest rate cuts don't hurt, either, especially after ANZ's move last Friday. But Wilson says while this is true, it'll take a few more months for the cuts to seep into the market.
"That definitely improves housing affordability, and some more encouraging numbers are certainly there."
"But the full impact of those falls won't be felt for a month or two."
Results were equally positive in Sydney, with a 61.8% clearance rate from 359 properties, along with 36% in Adelaide and 50% in Brisbane.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
 
 
 
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Auctions market could maintain momentum through winter, sales figures suggest

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Some signs of life returned to the mortgage market in March, with owner-occupier mortgage commitments rising 0.3% on a seasonally adjusted basis over the month, according to the latest ABS estimates. 
The value of investment housing commitments seasonally adjusted fell 1.0% in March 2012 while the total value of dwelling commitments excluding alterations and additions falling  0.5% on a seasonally adjusted basis in March to $20.18 billion.
The strongest gains were made in the resource-rich states, with owner-occupier mortgage commitments up 3.5% ($232 million) in Western Australia and 2% ($176 million) in Queensland. 
The Northern Territory was the standout among the smaller markets with a 23% ($73 million) increase. 
NSW remained flat with just a 0.1% increase in mortgage lending while there were falls recorded in Victoria (down 79, 0.6%), Tasmania (down 37, 4.5%), the ACT (down 22, 2.6%), and South Australia (down 14, 0.4%).
Mortgage broker Loan Market calculated that national results for the March 2012 quarter were 10% up on the corresponding quarter in 2011 with all states and territories on the mainland on the rise. Only Tasmania bucked the trend.
Western Australia and Queensland had March quarter increases of 25% and 16%  respectively, while the Northern Territory was up 18% and NSW 11%. There was a 4% increase in South Australia, 3% in the ACT and 2% in Victoria. Tasmania had an 8% decrease.
Loan Market corporate spokesperson Paul Smith says the latest figures are "highly encouraging". 
“We are obviously seeing more confidence from consumers so far this year, compared to last, which augers well for the months ahead.”
Smith says this month’s lowering of official interest rates from 4.25% to 3.75% would also have an impact on the home finance market in the coming months.
“With two consecutive months of flat activity, we should see the figures for May and June spike in reaction to the RBA’s rate cut,” he says.
”Even though most lenders held back on passing on the full 50 basis points, they still lowered their variable rates by significant margins in a positive move for home loan customers.
The Housing Industry Association (HIA) noted that the number of loans for the construction or purchase of new homes lifted by 3.5% in March,  "a welcome piece of good news given the existing weak conditions facing the new home building sector", according to HIA senior economist, Andrew Harvey.
“The March figures reflect a period prior to the 50 basis point cut in interest rates which occurred in May, and although the cut was only partiallly passed on by Australia’s banks, this factor should act to spur a further modest improvement in new home lending in the coming months,” Harvey says.
New South Wales was a key driver of the national result with the March 2012 seasonally adjusted number of loans for new housing (construction and purchase of new) up by 13.6%.
Elsewhere, Victoria rose by 1.7%, South Australia by 0.5%, Western Australia by 1.9%, Tasmania by 7.3%, the NT by 19.3% and the ACT by 12.1%. Queensland was the only jurisdiction which saw new home lending fall in the month of March (down by 2%).
The number of first-home buyer loans as a share of total owner-occupied home loans dropped to 16.4% in March 2012 from 17.2% in February 2012.
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Mining states lead rebound in demand for owner-occupier mortgages in March: ABS

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Mortgage Choice and Aussie Home Loans will be able to continue to require that their mortgage brokers be members of the Mortgage and Finance Association of Australia (MFAA) without the threat of legal action, following a ruling by the Australian Competition and Consumer Commission (ACCC).
Aussie and Mortgage Choice along with Virgin Money and ING Bank lodged applications in 2007 and 2008 known as “third line forcing notifications” seeking protection from legal action for its exclusive arrangement with the MFAA.
The requirement restricted brokers’ choice of industry body membership and did not recognise membership of rival industry body the Finance Brokers Association of Australia (FBAA).
The notifications protected the four organisations until such time as the ACCC made its ruling.
During the course of the review, ING Bank withdrew its notification and Virgin Money advised that it did not engage in the conduct.
Exclusive dealing arrangements such as third line forcing are prohibited under Australian competition rules, but organisations can apply to the ACCC for protection from legal action for these arrangements to continue.
The applications proved highly controversial within the mortgage broking industry.
In making its ruling, ACCC chairman Rod Sims said the consumer watchdog believed the arrangements “continue to deliver a benefit to the public, notwithstanding the commencement of a national regulatory regime for the credit industry in 2010”.
“The MFAA's membership requirements impose higher educational and certain other professional standards on its members than the regulatory regime,” said the ACCC in its ruling.
"The ACCC considers requiring MFAA membership is likely to assist those lending businesses to ensure that their brokers are of a consistent high standard and to meet their compliance obligations under the National Consumer Credit Protection Act.
“The ACCC acknowledges requiring MFAA membership restricts choice of professional association for these brokers, thereby limiting competition from other similar professional associations.  However, given the small number of mortgage brokers currently affected by the notified conduct compared to the overall size of the industry, the ACCC considers that any public detriment is likely to be minimal.
“Further, the MFAA membership requirement is only imposed by two industry participants.  There are a large number of other businesses that individual brokers can work for if they disagree with the MFAA membership requirement.”
 
 
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