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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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27 Grace Street, Cabramatta, NSW, 2166
<img src="/images/stories/graceave.jpg">
In the popular Sydney suburb of Cabramatta, this three-bedroom house is on 658 square metres and is close to Cabramatta high school. The $400 a week lease will have expired by the time the property goes to auction, but LJ Hooker agent Patrick Yeung says the tenant is keen to stay on and that $400 per week is market rent for the area. 
Yeung<a href="https://www.ljhooker.com.au/442F8S" target="_blank"> is marketing the property</a> with price hopes of $380,000 plus, and if it sells for that price that would secure an investor a gross rental yield of 5.5%, well above the indicative gross rental yield of 4.1% for Cabramatta houses, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
Yeung recently sold a nearby property for $435,000 that was in much worse condition but in a better location than the Grace Street property. The tenants in that house paid $330 per week. The median asking rent for Cabramatta houses is $380 per week. 
<a target="_blank" href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT">Washington Brown</a> estimates the first-year tax depreciation deduction to be $4,000 and over five years to be $10,000.
The property will be open for inspection Saturday, May 12 at 11.15am and will go to auction Saturday, June 2 at noon.
For more about prices and yields in Cabramatta, see the RP Data suburb page.
 
<hr class="system-pagebreak">
 4 Howe Court, Thomastown, VIC, 3074
<img src="/images/stories/howest.jpg">
This property is currently vacant but has been recently tentanted at $300 per week, which Ray White agent Joe Torzillo says is at the market rent for the property. It has three bedrooms and is close to shops, schools, transport and the Western Ring Road. The 26-year-old house is on 602 square metres.
Torzillo<a target="_blank" href="https://www.raywhite.com/vic/thomastown/771925/"> is marketing the property</a> with price hopes of $360,000 plus, and if it sells for $360,000 and is rented at $300 per week, that would secure an investor a gross rental yield of 4.3%. This is about at the indicative gross rental yield for Thomastown houses, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. Council fees are about $1,000 per annum.
<a href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT" target="_blank">Washington Brown</a> estimates the first-year tax depreciation deduction to be $6,000 and over five years to be $13,000.
The median house price in Thomastown fell by 4.2% in the past year, according to RP Data.
The property will be open for inspection Saturday, May 12 at 10am and will go to auction Saturday, May 19 at 3pm.
For more about prices and yields in <a target="_blank" href="/news">Thomastown, see the RP Data suburb page.</a>
 
 
 
 
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Friday form guide: Yields of up to 5.5% in Cabramatta

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Rural towns in Victoria’s east dominated the list of Victorian localities with the greatest gross rental yields for houses. Houses in Dimboola, north of the Grampians, had the highest yields at 8%. Corinella had the highest weekly median rent at $320 of regional Victorian localities.
<table border="0" cellspacing="0" cellpadding="0" width="380"><tbody>
<tr>
<td valign="bottom" nowrap width="92">
Locality
</td>
<td valign="bottom" nowrap width="144">
Gross Rental Yield (%)
</td>
<td valign="bottom" nowrap width="144">
Weekly Median Rent
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
<a target="_blank" href="/news">Dimboola</a>
</td>
<td valign="bottom" nowrap width="144">
8%
</td>
<td valign="bottom" nowrap width="144">
$145
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
<a target="_blank" href="/news">Ararat</a>
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$220
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
<a target="_blank" href="/news">Corinella</a>
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$320
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
<a target="_blank" href="/news">Merbein</a>
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$200
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
<a target="_blank" href="/news">Mortlake</a>
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$188
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
<a target="_blank" href="/news">Nathalia</a>
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$210
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
<a target="_blank" href="/news">Red Cliffs</a>
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$220
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
<a target="_blank" href="/news">Seymour</a>
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$250
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
Terang
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$225
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
Warracknabeal
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$155
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="92">
Yallourn North
</td>
<td valign="bottom" nowrap width="144">
7%
</td>
<td valign="bottom" nowrap width="144">
$180
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
 
 
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The top 10 regional Victorian localities with the highest rental yields: RP Data

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Vendor discounting levels for houses in some cities have increased over the year but there have been slight reprieves for sellers in recent months, according to a new report by RP Data.
Across Australia vendor discounting is now at -7.2% for houses and -6.1% for units.
The resource boom cities of Darwin and Perth were the only capitals where the average discount necessary to secure a sale for houses was lower in March 2012 than in March 2011.
Average discount levels for units went up in four capital cities (Melbourne, Adelaide, Hobart and Canberra) over the year, remained unchanged in Sydney and went down in the rest.
Click to enlarge
<img src="/images/stories/rpmay112thumb.gif">
Houses are taking longer to sell in most capitals than they were last year. The average time on market has decreased in Brisbane, Perth and Darwin compared with the same time last year but has increased in all other capitals.
Click to enlarge
<img src="/images/stories/rpmay114thumb.gif">
“The improvement in vendor metrics in Brisbane, Darwin and Perth and the weakening conditions in Melbourne is a reflection of the overall market conditions highlighted by the amount of stock currently available for sale across these cities,” says RP Data senior analyst Cameron Kusher.
Click to enlarge
<img src="/images/stories/rpmay111thumb.gif">
Kusher notes that the increased time properties are lingering on the market is an indication of increased volumes.
“The elevation in the volume of stock available for sale certainly reflects a lower level of demand for housing credit,” Kusher says.
Click to enlarge
<img src="/images/stories/rpmay112thumb.gif">
Recent figures from Australian Property Monitors, which include both units and houses, show that <a href="https://www.propertyobserver.com.au/residential/sunnier-property-market-outlook-across-australia-as-vendor-discounting-peaked-in-mid-2011-apm/2012051054637">the average discount required to secure a sale</a> has increased in Sydney, Melbourne, Adelaide, Canberra and Darwin.
APM’s data also shows that the level of discounting peaked in mid- to late 2011, and that the lowest level of discounting required to secure a sale for the past year was in early 2012, for the most part. APM notes that the average discount has increased in recent months in most capitals.
APM data also notes that the number of days property is lingering on the market <a href="https://www.propertyobserver.com.au/residential/sunny-days-of-quick-sales-long-behind-in-most-capitals-as-property-stock-lingers-on-the-market-apm/2012050854592">has increased in most capitals</a> compared with this time last year.
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Vendors somewhat stubborn as time on market increases in most capitals: RP Data

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It turns out that the RBA has indeed (at least superficially) "misread" the economy, as so many commentators are keen to claim. Awkwardly, however, it seems to have materially underestimated the strength of our labour market, which its research suggests is the single most powerful predictor of future inflation. Despite both the RBA and the Treasury forecasting that Australia’s jobless rate would rise to 5.5%, and using this as a key justification for lower rates (alongside a temporary decline in the prices of internationally traded goods and services), it appears, as I had previously argued here, that the peak in the unemployment rate is behind us.  According to the official statistician, Australia’s seasonally adjusted unemployment rate fell to 4.9% in April from a downwardly revised 5.1% in March. But let’s avoid the temptation of looking at a single month of data. As the chart below clearly shows, the three month “moving average” jobless rate has been falling steadily since September 2011, ironically just before the RBA started slashing rates. It is now nearly a full percentage point below its 5.8% peak during the GFC. 
Click to enlarge
<a href="/images/stories/may10.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/may10thumb.gif"></a>
The monotonic decline in the unemployment rate since the second half of 2011 tells us a few things. First, the economy is not about to head into a protracted recession. Nor is the economy likely expanding at a rate that is significantly below trend (or capacity). In fact, the jobless rate implies that the labour market is near-fully employed. This in turn tells us that the economy is not in dire need of further interest rate relief. Having said that, the volatile and prone-to-revision GDP data could very well confuse the issue. As the RBA has noted, the National Accounts are difficult to interpret when the country is undergoing a very lumpy and capital intensive private investment boom.  The second thing the unemployment rate tells us is that the high circa 3.5% per annum domestic (or “non-tradable”) inflation consistently recorded by the ABS is likely to be a permanent presence. In contrast, the “tradables” deflation induced by the striking appreciation in Australia’s exchange rate is, as I have explained before, a temporary event. Indeed, with the Aussie dollar now down about 8% from its 2011 highs, the deflation in internationally traded products that helped pull down Australia’s core inflation rate will likely have the opposite effect going forward. You are unlikely to hear or read many of these arguments from other commentators. Most analysts are forecasting an increase in unemployment combined with a lower cash rate. Anyone with a commercial interest in the Australian equities and/or housing markets, including, importantly, almost all retail bankers, has been clamouring for rate cuts ever since the RBA appropriately tightened policy in November 2010. The Gillard government, its lobbyists and public proxies, are pinning their fragile political prospects on below-average lending rates. And the hysterical complaints of the trade-exposed industries almost always overwhelm the silent savers and retirees. It is interesting to contemplate what the RBA might have done at its May board meeting had it had the benefit of this information and the Commonwealth budget. At face value, the super-sized 50 basis point cut would have been off the table. And a single 25-basis-point reduction might have been a less than certain proposition.
Christopher Joye is a leading financial economist and a director of <a target="_blank" href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
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chrisjoye-JYhJsTrNRC

Unemployment data shows RBA misread the economy in double rate cut: Christopher Joye 

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Amid the mass of statistics describing city property this year, there is this underlying message: recovery.
Data from three key sources shows the decline in values in the eight state and territory capitals was arrested in the March Quarter – and in some cases prices started to rise again.
Looking at the weighted average across the eight cities, Australian Property Monitors records a small rise in the median house price, RP Data effectively reports no change and the Australian Bureau of Statistics says there’s been a further small decline.
For apartments, both RP Data and Australian Property Monitors both report small rises in the March Quarter (the ABS doesn’t have data on units).
In most cases, median price levels are still below those of a year ago, but the March quarter is the first genuinely positive result since 2010.
It’s not always easy to find patterns when examining figures from multiple sources, because there are difference methods which often produce puzzling contradictions. The ABS says Hobart house prices fell 2.7% in the March quarter, but RP Data says they rose 6.5%. Melbourne is given a small rise by one source, a small decline by another and a significant decline by the third. Go figure.
These variances can be frustrating for investors trying to see trends in the published data.
But here’s what we can say for sure about house price levels in the eight capital cities:
<ul>
<li>More house markets rose than fell in the March quarter. APM says five of the eight cities showed rising prices, while the ABS reports rises in four cities.</li>
<li>Darwin was the star performer, with all three research sources recording strong increases in the quarter, ranging from 4.3% to 6%.</li>
<li>Canberra’s market was solid, with all three sources recording no change or a small rise (this may change later in the year, following Wayne Swan’s cuts to the public service).</li>
<li>Brisbane has arrested the decline caused (partly, at least) by the January 2011 floods. One source recorded a small rise in the house median in the March quarter, while the other two reported very small declines.</li>
<li>Perth, like Brisbane, is no longer a falling market. The ABS and APM both report small rises in Perth’s median house price.</li>
<li>Sydney achieved a positive result in the March quarter, according to both RP Data and APM. </li>
</ul>
In annual terms, most cities are still in the red, although the ABS credits Darwin with a 3.5% annual rise.
Brisbane prices are still below pre-flood levels, but not by much. The ABS says Brisbane’s index is down 3.7%, and APM reports a median price drop of 4.1%. That’s a pretty solid effort considering the devastation inflicted by the elements and makes nonsense of the more hysterical media claims at the time (one TV news bulletin predicted a 50% collapse in Brisbane values).
Hobart and Melbourne are in the worst positions, relative to early 2011. The ABS and RP Data have Hobart down 7% or 8%, and Melbourne’s annual decline is around 6% or 7%.
The results for apartments in March quarter were strongly positive. RP Data reports rising medians in all capital cities except Brisbane.
APM, a little less bullish, reports rises in Sydney, Darwin, Canberra and Hobart, and no change in Perth.
Both sources agree that median unit prices rose in Canberra, Darwin, Sydney and Darwin, with essentially no change in Perth.
These figures represent average situations across the major cities and hide myriad differences in sub-markets. But the patterns are important and primarily they tell us that most residential markets in our capital cities have stopped declining – and that some have started rising.
These results pre-date the interest rate cuts now being handed out by lenders and that suggests more positive markets this year than last, though rises should be moderate in most cases.
If you want serious growth in prices and rents, you need to head to the regions.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" target="_blank">followed on Twitter</a>.
 
 
 
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terryryder-YECXbqmri2

Regions to offer higher price and rental growth than recovering capital cities: Terry Ryder

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Just because a home is advertised for auction does not mean you have to wait until the day of the auction to bid for it. 
Through the real estate agent you can make a pre-auction offer to the vendor. 
So far this year, 18% of all auction sales have been sold before the day of the auction; this compares with 19% at this time last year. It is interesting to note that over the past six years, the proportion of homes sold before auction has reduced from around 23% to the present-day 18%. 
Over that time there has been a 20% chance the home will sell before – so, if you are interested, it is sensible to consider making an offer, lest you miss out. 
With that in mind, there are a number of advantages in making an offer, even if the offer fails. 
A successful offer can allow you and the vendor to avoid the auction itself. It is also the case that, even if your offer is unsuccessful, the vendor is less likely to sell to a higher bidder without giving you another opportunity to make an offer. 
If you do make an offer, it has to be an attractive one that gets the vendor’s attention and convinces him or her not to wait until the day of the auction. 
There are several things you can do to make the offer attractive: first, put the offer in writing; secondly, attach a time limit after which the offer expires. In some cases, presenting the offer along with a cheque for the deposit can really show the vendor that your offer is serious and that they may be better off not waiting until the auction. 
It is also always advisable to get legal advice before signing the contract of sale.
Enzo Raimondo is CEO of the <a href="https://www.reiv.com.au/" target="_blank">Real Estate Institute of Victoria</a>.
 
 
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enzoraimond-7fvRFHPR52

Why pre-auction offers can be to a buyer’s advantage

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Unemployment in April fell to a surprise 4.9%. The March figure was an unrevised 5.2%.<o:o:o:o:o:o:o:p></o:o:o:o:o:o:o:p>
Total employment rose 15,500 to 11.501 million in the month, according to the Australian Bureau of Statistics.
HSBC chief economist Paul Bloxham says the data is a good sign for employment trends in Australia.
He adds that the data will likely convince the Reserve Bank of Australia to keep the cash rate on hold.
He reaffirmed his expectations of the RBA keeping rates on hold for the rest of this year, having said straight after the May RBA meeting that "given the recent improvements in the labour market and business conditions, combined with the fact that rates are now at expansionary levels, we think this could be the end of the loosening cycle."
RBC Capital Markets economist Su-Lin Ong says the RBA would delay any further rate cuts until after June because of the strong jobs data.
AMP Capital chief economist Shane Oliver tweeted that it was "Great news but hard to believe given anecdotes. Still see unemp rising over next six months."
The latest job cuts came today at Australia's largest dairy food processor and marketer, co-operative Murray Goulburn, which is cutting a further 300 positions inaddition to the 64 jobs shed in March, when Murray Goulburn announced it would shut down its milk driers at Rochester in northern Victoria.
The state by state unemployment break up was:
<li>NSW: 4.9% (March: 4.8%)</li>
<li>Victoria: 5.3% (5.8%)</li>
<li>WA: 3.8% (4.1%)</li>
<li>Qld: 5.1% (5.5%)</li>
<li>SA: 5.2% (5.2%)</li>
<li>Tasmania: 8.3% (7%)</li>
 Savanth Sebastian, the CommSec economist, notes that "importantly the improvement has been over the past two months and the next couple of months will confirm if the pickup in employment is sustainable".
"The Reserve Bank is likely to still remain open to rate cuts in coming months – particularly given that inflation is holding at the low end of the 2-3% target band and given the ongoing troubles in Europe.
"As such CommSec is still pencilling a further quarter of a per cent rate cut in August."
 
 
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jchancellor-FAypfDUnLy

Unemployment falls to 4.9% in April and cash rate might stay on hold until July or longer

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The owner of the <a href="https://www.propertyobserver.com.au/residential/court-overturns-%241000-sheriff-sale-of-braybrook-home-valued-at-%24630000/2012050954635">$630,000 Braybrook house that sold for $1,000 at sheriff’s auction</a> was the plaintiff, Zhiping Zhou, who from 2000 had bought and sold property at least 10 times.
He was born in Shanghai China in 1962, immigrating to Australia in 1989 on a student visa following the June 4, 1989 uprising in Tiananmen Square in Beijing.
He obtained permanent residency in Australia in 1993 and became an Australian citizen in 1998.
In Shanghai, Zhou completed his studies at the Shanghai Mechanic Engineering University where he graduated with a bachelor’s degree in mechanical engineering.
Since graduation and immigrating to Australia, he has worked principally in the area of building and construction.
Zhou built the five-bedroom house as the owner-builder in 2006.
The warrant of seizure was issued November 2009.
Zhou owed Guan Feng Wu a judgment debt of over $100,000, with the debt unpaid by Zhou for almost three years.
In November 2008 Wu had commenced legal proceedings against Zhou in the Magistrates’ Court of Victoria at Sunshine, claiming the amount of CNY440,000.00 (approximately AUD $96,660.00), being monies claimed to be outstanding arising from a loan agreement entered into between the two in 2006.
The property was also subject to a mortgage in favour of Suncorp for $457,345.50.
Suncorp took no part in the trial.
The property was also subject to a charge in the sum of $7,691.10 for council rates.
At the time of the auction, the Valuer-General for the Victoria valued the property to be worth approximately $630,000 following a kerbside valuation.
The valuation was supplied to the sheriff prior to the purported sale.
A first public auction of theproperty was conducted by the sheriff on July 15, 2010.
At the time of the first auction there was $452,691.70 outstanding to the mortgagee Suncorp and $5,692.54 owing to the Maribynong City Council for arrears of rates.
It left an equity for Zhou in the sum of $171,615.76, which was set as the “sheriff’s reserve” for the property.
The first auction was conducted in July 2010, however no bids were received by the sheriff and the property was passed in.
On application by the sheriff, orders were then made in October 2010 by Associate Justice Nemeer Mukhtar permitting the sheriff to sell the property without a reserve.
Subject to paragraph 3 there had to be leave to the sheriff to conduct a sale of the property (in exercise of powers under a warrant of seizure and sale filed November 9, 2009) without a reserve price provided that such leave does not thereby derogate from, or relieve the Sheriff of a duty at law to the owner of the land when exercising a power of sale.
There be leave to the owner of the property to notify the plaintiff of an intention to discharge the order in paragraph 1, and apply to this court for a discharge of that order. Unless such an application is filed and served within 10 days after the date of the service of this order, the order will take effect upon the plaintiff’s solicitor giving to the sheriff evidence of service of this order and the absence of any application to discharge it.
Justice Peter Vickery noted that it was “important to note that, although the Order of Mukhtar AsJ expressly authorised the sheriff to conduct a sale of the property without a reserve price, this was not an unfettered authority to sell at any price which could be obtained.
“The order expressly directed that any such sale must be conducted in a manner which did not “derogate from, or relieve the sheriff of a duty at law to the owner of the land when exercising power of sale”, Vickery noted.
After the October hearing Zhou neither satisfied the judgment nor took any step to prevent the sale before it occurred.
By the time of the second auction in December 2010 there was an equity for Zhou of $164,963, which was set as the “sheriff’s reserve” for the property as shown on the “Real Estate Auction Sheet”, except that the words “NO RESERVE” were also included beside the stated reserve.
The second auction was conducted at the sheriff’s premises at 444 Swanston Street, Carlton, by the real property sales officer of the sheriff, Kelvin Griffin.
The auction was overseen by another officer of the sheriff.
Two potential bidders attended the second auction, namely the ultimate purchaser, Ronald Kousal, and one other person.
Vickery noted Kousal was an experienced purchaser of property at public auctions conducted by the sheriff.
“Every Thursday or soon thereafter, he was accustomed to review the Government Gazette to search for advertised sheriff auctions of land.
“One week or so before the auction day, he would enquire at the Sheriff’s Office as to whether the advertised auction was scheduled to proceed.
“If so, he would assess the land, its value, encumbrances, money owed on the property and he would set himself a budget for the purchase.
“Prior to the auction in issue in this proceeding, Kousal had previously bought land from the sheriff and had attended seven or eight unreserved sheriff auctions.”
Prior to the second auction, Kousal had never been met or had any dealings with either Zhou or Wu, and knew nothing at all of their personal, social or financial circumstances.
The events from the second auction on 16 December 2010 proceeded as follows:
After reading aloud the Government Gazette advertisement for the sale of the property and the terms of the auction, Mr Griffin advised the attendees that $457,345.50 was owed to Suncorp under a registered mortgage on the Property and that $7,691.10 was owed to the Maribyrnong Council for arrears on rates.
He invited bids for Zhou’s remaining interest in the Property.
Kousal bid $100.
Another bidder bid $200.
Kousal then bid $1,000.
There being no further bids, Griffin knocked the property down to Kousal.
Immediately following the second auction Kousal paid Griffin the $1,000 and received a receipt and a copy of the transfer.
Griffin later sent Kousal a copy of the transfer of the Property signed on behalf of the sheriff.
On December 21, 2010, Kousal wrote to Zhou and asked him his intentions in relation to remaining in possession of the property.
He received no reply.
On January 5, 2011, Kousal was present during a phone call between a Mandarin Chinese-speaking interpreter and Zhou.
Kousal instructed the interpreter to advise Zhou that he had bought the property from the sheriff.
The interpreter told Kousal that Zhou didn’t want anything to do with him and that he should leave him alone.
By summons dated May 2011, Kousal commenced legal proceedings against Suncorp seeking orders pursuant to s 116(3)(a) of the Transfer of Land Act 1958 (Vic) (the “Transfer of Land Act”) that it deliver up the duplicate Certificate of Title for the property, so that Kousal could register his interest in the Property with the Registrar of Titles.
In June 2011, Kousal obtained orders that Suncorp “produce the duplicate certificate of title [for the property] to the [the Registrar of Titles] for the purpose of enabling [Kousal] as transferee to lodge a transfer of that land from the [sheriff] as transferor under the [Warrant]”.
In July 2011, Zhou in the present proceedings, sought and obtained orders from the court that restrained the registering of any transfer of the property.
Zhou won the case on May 5, 2012.
 
 
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Countdown to the $1,000 Braybrook sheriff auction - and its overturning by the Supreme Court  

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It is interesting to observe the differences between the RBA and Treasury's assumptions about future interest rate changes when making forecasts of economic growth. The RBA and Treasury have near-identical real GDP estimates for the years 2012, 2013 and 2014, although the RBA allows – wisely – for much more uncertainty in its projections. They both settle at "around 3%". They also have the same/similar peak unemployment rate forecasts of about 5.5%.
In making its forecasts, the RBA says: "The exchange rate is assumed to remain at its current level over the forecast period (A$  at US$1.03, TWI at  76), which is around 3 % lower than assumed in the February Statement [CJ: even lower today!]. The price of Tapis oil is assumed to remain at US$125 per barrel over the forecast period, similar to the assumption in February [CJ: lower again!].The cash rate is assumed to be unchanged over the forecast period at 3.75%." In contrast, Treasury adopts a different assumption – one that the RBA dropped a while back because it was simply too volatile: the financial market's expectations for future rate changes.
This seems to imply that Treasury is relying on another 50 basis points worth of RBA rate cuts (confirmed by the AFR's diligence) to hit its surplus targets.
Treasury even goes on to jaw-bone the RBA that this is appropriate monetary policy (jaw-boning the Aussie central bank seems to work, so that's not dumb either – especially when the Treasury Secretary sits on the RBA's board): "The outlook for trend growth in the economy over the next two years is consistent with the fiscal consolidation being undertaken by the Commonwealth and state governments. As is standard practice, the forecasts assume policy interest rates move broadly in line with market expectations at the time that the forecasts are finalised, with the market expectation at that time being that policy interest rates would be lower over the coming year. The planned fiscal consolidation should continue to provide scope for monetary policy to be eased, if appropriate, without generating price and wage pressures. The impact of the fiscal consolidation, particularly in 2012?13, should be more than offset by growth in private demand, particularly from the resources sector, with the aggregate economy growing around trend."
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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The RBA assumes the cash rate will stay at 3.75%, but Treasury forecasts another 50-basis-point cut: Christopher Joye

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Meriton boss Harry Triguboff is seeking fresh Sydney residential development sites, as well as increasing output, as he’s noticed an uptick in local apartment buying interest.
After having about 70% of his market made up by Chinese investors, he told The Australian it’s now a 50-50 split with local buyers.
“It started before interest rates fell, due to rents going up and fixed [home loan] rates were already coming down,” he says.
Triguboff has noted a drop in building projects during the financial crisis had also resulted in pent-up demand.
"People who were sharing, at home or renting are feeling more secure [about buying] as rates are coming down.”
Triguboff says he has his eye set on sites in Green Square near the airport and Dee Why in Sydney’s northern beaches after spending $25 million on a site in Sydney’s North Ryde and a further $55 million in Chatswood on Sydney’s north shore.
His acquisitions could total $150 million.
“We will probably build 1,700 [apartments] a year now, it may get to 2,000, but I can’t see more than that.”
His investment push coincides with the recent interest rate cuts. Triguboff expects the Reserve Bank will cut the cash rate by a further 50 basis points over the next year but wants them to go further.
"No one thought the bank would cut 50 basis points.”
Meriton’s apartment rents have increased 5% over the past year, with some buildings performing better than others.
Despite wider residential apartment price decreases in Sydney, Meriton’s apartment prices have remained stable, according to The Australian.
In the Gold Coast however, Meriton’s apartment prices are down 20% from two years ago.
In Sydney, Meriton averages about $480,000 for a one-bedroom unit and $550,000 for a two-bedroom unit.
Triguboff says Meriton has been able to build more quickly to respond to demand with improved technology and mechanisation and some councils shifting to a more pro-development standpoint.
He foresees an increase in competition, sensing that large Chinese developers could take a footing in the Australia market.
Currently he says he faces little competition.
"So far, it’s only small developers, apart from Frasers."
 
 
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