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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Property is taking longer to sell in all capitals than it was a year ago, data released by Australian Property Monitors, although Canberra is showing signs of speedier sales over the past few months.
During April this year Melbourne, Brisbane and Perth stock lingered on the market for the longest amount of time since April 2011.
As 2012 came out of its summer holiday slumber, Sydney's slowest-selling months were January and February, when it took an average of 95 days to sell property. But by April it still took an average of 94 days to secure a sale in Sydney.
According to APM, Darwin has the slowest market, with properties typically taking 153 days before finding a buyer.
 
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jchancellor-FAypfDUnLy

Sunny days of quick sales long behind in most capitals as property stock lingers on the market: APM

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The state of smoke alarms in rented housing is back on the agenda.
NSW State Coroner Mark Buscombe recently recommended that real estate agents regularly check and maintain smoke alarms in the homes they manage.
The comments came at the inquest into the 2010 death of a man in a Hamilton house fire, near Newcastle.
Smoke detectors became mandatory for all NSW residential buildings in 2006.
Tim McKibbin, CEO of the Real Estate Institute of NSW, says that residential leases make it clear who is responsible for smoke alarms.
“The reality is that the landlord is required to have a working smoke alarm in the premises while the tenant is required under the lease to replace batteries in a smoke alarm,” says McKibbin.
The practice among some tenants of removing batteries from smoke detectors to use elsewhere, usually in a television remote control, was so prominent that such interference is now forbidden and enshrined in the NSW Residential Tenancies Act.
According to the Tenant’s Union of NSW, if a detector gives a false alarm triggered by cooking, tenants should not remove the battery or disable it.
“Contact the landlord or agent and ask for the alarm to be moved to a more suitable location or replaced with a different style of alarm,” the organisation says.
Fire &amp; Rescue NSW will replace old smoke alarm batteries for free for the elderly and people with mobility problems.
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andreadixon-oif3j7eKne

NSW Coroner issues warning about smoke alarms in investment properties

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Burgess Rawson sold seven Woolworths Caltex petrol stations last week for as $10.96 million total, but a similar portfolio of service stations two years ago sold at lower yields, averaging about 5.5%.
The slightly higher yields on the latest sales shows that the market has softened marginally, Burgess Rawson director Simon Staddon suggests.
Prices ranged between $1.1 million at Childers in Queensland to $2.15 million at Balwyn in Melbourne.
The yields ranged between Balwyn’s 5.49% to 6.73% in Childers.
They were offered with new full term 15-year leases with five renewal options of five years each to 2052. Rents will be reviewed annually in line with the consumer price index, up to a maximum of 4%. Burgess Rawson issued 160 contracts to interested parties.
The yields are similar to those for <a href="https://www.propertyobserver.com.au/retail/self-funded-retirees-continue-to-snap-up-nsw-7-elevens-service-stations-drawn-by-high-yields/2012032754031">7-Eleven stations that recently sold in NSW</a> and <a href="https://www.propertyobserver.com.au/retail/five-out-of-six-queensland-based-7-eleven-service-station-sell-as-one-further-melbourne-store-listed-with-%2425-million-hopes/2012042954425">Queensland</a>.
 
 
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Seven Woolworths Caltex petrol stations sell with slightly higher yields than those sold two years ago

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<a target="_blank" href="https://www.Thehomepage.com.au">Thehomepage.com.au</a> property portal now offers a new Chinese-language listings category.
Property developers have embraced the new Chinese-language listings opportunity, with more than 50 off-the-plan property development advertisements upgraded to appear in both English and Chinese only one week into the new feature.
<img src="/images/stories/homepagechinese.jpg">
Chinese buyers, both local and from Asia, account for about 60% of enquiries and purchases in developments across Australia, according data collected from developers by Thehomepage.com.au.
Thehomepage.com.au chief Ben Stockdale says it is the only major Australian portal with listings in Chinese.
Thehomepage.com.au’s listings are translated into Mandarin by a team of linguists.
 
 
 
 
 
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Property portal Thehomepage now offers Chinese language listings

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Interest rates plummet!  Rates slashed!  Well, this assumes that most of the official cut is passed on.  A 0.5-percentage-point cut in the cash rate really indicates two things – the economy is indeed a lot more sluggish that the RBA predicted and that the banks will only pass on some of the drop, not all of it.

Falling <a href="https://www.propertyobserver.com.au/residential/government-taxes-and-grants-have-distorted-the-property-cycle-and-an-interest-rate-cut-might-not-help-michael-matusik/2012042954464" target="_blank">interest rates are unlikely to have much impact on the overall residential market</a>.

But where a 0.5 percentage point fall in the cash rate will have some impact is with those investors who have been content to leave their money in the bank (or in cash in their super funds).  They now face some choices.

Gross rental yields on well-positioned and well-credentialed new investment properties are often over 5%. These returns have now become much more attractive and are on top of potential rental growth plus possible increases in capital values in coming years.

The vacancy rate across urban Australia is 1.7% and as low as 1.5% in Brisbane.  The vacancy rate is just 0.8% in Canberra, 0.6% in Darwin and 0.5% in Perth.

The ABS house price figures – out earlier this week – show that while residential values across the country continue to slide (down 1.1% during the March quarter), they are starting to rise in Darwin (up 4.4%); in Canberra (1.2%); in Perth (up 1.1%) and in Brisbane (0.4%).

There is no accident regarding the correlation between the last two paragraphs.

This residential property cycle will be driven by investors and investment property.  The owner-resident market – and especially those trading older second-hand stock – will struggle to find a half-decent upturn this time around.

Astute investors are already trolling for bargains.  The 50-basis-point cut will bring more investors into the market.  But they will be savvy.  They won’t buy anything.  They will take their time.

But the right new stock – with the right price tag/returns – will sell.

Brisbane is Australia’s third largest city and is the Queensland state capital and key business and financial centre for the state. Queensland (2.4%) and Western Australia (2.8%) are Australia’s two fastest-growing Australian states, with GDP growth well above the national average of 1.9%.

In a recent Jones Lang LaSalle report – A New World of Cities – Brisbane and Perth were identified as two of the fastest-growing cities in the world in terms of GDP.  Brisbane tops the list of the world’s 20 fastest growing new cities in terms of GDP, with Perth ranked seventh.

The mining boom in coal and gas principally drives Queensland’s growth.  The Queensland Resources Council estimates there are $165 billion worth of resource projects in Queensland under consideration, committed or under construction.  This investment is a major stimulus to white-collar employment growth in Brisbane.

Jones Lang LaSalle estimates that resource-related demand, including service companies such as engineers, would warrant the building of five to 10 new office buildings of about 64,000 square metres in the next 10 years for the Brisbane CBD and fringe.  Savills have made similar predictions.  It estimates that direct mining-related employment would require between 52,000 and 80,000 square metres of CBD office space by 2020.

White-collar employment growth in Brisbane will drive new dwelling demand from professional and executive singles and couples.

Brisbane’s resident population has been increasing by around 15,000 per annum, according to the most recent growth statistics.  This growth is expected to continue.
<img src="/images/stories/matumay81.gif">
Brisbane is at the bottom of the residential cycle.  The capital has been through some shite in recent years, but now is its time to shine.  The recent state and local government landslide victories will further help this recovery.

Viva la Brisbane!
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Given the recent hysterical media coverage about home loan delinquencies and property repossessions, one would think that most Aussies were being tossed out on the street.  Those nasty banks!  Filthy bastards.

But wait a minute, even if the figures most often used to measure delinquency and repossessions were correct (they aren’t, by the way), on average just 1.6% of securitised home loans are in arrears (delinquency), and just 0.6% are three or more months behind, and a paltry 0.15% of residential property across the country is being repossessed by the banks.  So what is all the fuss about?  WTF is an appropriate response.  This <a href="https://matusik.com.au/chartsDetail.php?WTF-20">chart</a> illustrates the extent of the problem very clearly.

And if only the damn figures were right to start with.

The Fitch report – which is the usual media source for all of this nonsense – states that Australian home loan delinquencies had risen over the last six months, while the RBA’s Financial Stability Review finds quite the opposite.

The difference between the two reports is explained by what they cover.  The RBA’s analysis includes all home loans on bank balance-sheets plus securitised loans: more than $1.2 trillion worth in total.  In contrast, Fitch’s research only covers securitised loans, which amount to less than $100 billion.  To be clear, these loans are included in the RBA’s sample, but represent less than 10% of the total.

The RBA concludes that total home loan arrears in Australia declined.  The arrears rate for housing loans (on banks’ domestic books plus securitised housing loans) declined to 0.6% in December, from 0.7% in mid-2011.

The same downward trend applies to property repossessions.  In fact, Australian borrowers are repaying their home loans more quickly than what is actually required by their lenders.  The RBA’s research reveals that these so-called “excess repayments” increased significantly over the course of 2011, which implies that household stress was on the decline.

The 0.5-percentage-point drop on Tuesday will further accelerate this trend!

Michael Matusik is the director of independent property advisory Matusik Property Insights. Michael is a 25-year veteran in the industry and his firm has helped over 550 new residential developments come to fruition.  Michael has launched a new initiative, called<a target="_blank" href="https://www.matusik.com.au/"> Think Matusik</a>.  Think Matusik brings together expert opinion and select property opportunities.
 
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michaelmatusik-49YzLvdmNv

Interest rate cut will encourage property investors, not owner-occupiers

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In August 2003 the then federal treasurer Peter Costello gave an interview on 3AW with Derryn Hinch, and the subject was housing affordability, stamp duty, GST and the first-home owners’ scheme.
In part of the interview Derryn Hinch asked why the states had not, as he put it, backed off a bit on things like stamp duty: "That’s what I thought was going to happen.”
This was Peter Costello’s reply, which I think is worth posting in full: “yes, yes, no, what has surprised us is that the principal reason why house prices went up was that interest rates came down. As interest rates came down, we are now at 30-year lows, and you know, we have been running our economic policy to get low interest rates. As interest rates came down, because they were lower, people could afford to buy more expensive properties. And what that did is that it kicked a whole lot of houses that were previously being taxed at moderate stamp duty rates, $6,000 into higher brackets and they are now being taxed at $16,000 or $17,000 for the average house under stamp duty. We weren’t expecting that the states would take this enormous windfall out of stamp duty, but they did. In fact, we introduced, we the Commonwealth government introduced the first-home owners’ scheme, to give a grant of $7,000 to people who are buying their first home. We pointed out to the states that this would bring new people into the market, there would be more house purchases, that the States as a consequence would get more stamp duty and would they please look at that to try and relieve some stamp duty for those first-home buyers. But none of them did.”
Hinch: “Yeah, and are not expected to?”
Costello: “Well, you know, so we have a situation now, this is the frustrating thing, we have a first-home owners’ scheme whereby you’re given $7,000 to buy your first home and the stamp duty is $16,000. So what do they do with their first-home owners’ grant? Go and try and pay off some of their state stamp duty. It is a pretty frustrating merry-go-round out there.”
END.
My point, without favouritism to Costello, even if it appears to be a long quote is that this debate has now been running on for almost a decade. It is an area that various tax reviews have looked at; it is an area that many other government and industry reports have also examined.
And with such a sort fall in housing supply upon us and with housing now less affordable than ever, do you think the debate has been resolved, or even started a move out of the too hard basket?
However having said that, clearly incentives in the housing market are not only confined to stamp duty and to government policy and I will continue this general topic later and look at what and how incentives are used directly by developers. I think it’s an area that is far more clear cut, but an important part of project marketing.
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

Stamp duty debate has been running for almost a decade

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If you have invested in the share market, you would most likely be familiar with the so-called "investment clock", which attempts to show how the economic cycle influences equities.
In essence, an over-heated economy is followed by rising interest rates and falling share prices. Then, as the economy declines interest rates start to fall and share prices rise again.
Some analysts have tried to devise a similar "clock" for commercial property. But unfortunately, the results have generally not been useful.
Commercial property has a number of sectors, which do not necessarily move in unison. For example, industrial property prices may be sagging while retail prices rise.
There are also regional differences as well. Prices might be hot in Sydney and lukewarm in Melbourne or Brisbane, or vice-versa.
Nevertheless, using a somewhat broad-brush approach, it is possible to place property within the investment cycle as follows:
<ul>
<li>The economy begins to slow</li>
<li>Direct property prices stop rising, and may decline</li>
<li>The authorities inject liquidity into the economy</li>
<li>The stock market and listed property trusts rise</li>
<li>The economy starts to recover</li>
<li>Direct property prices start to rise</li>
<li>Inflation may also rise</li>
<li>Interest rates rise</li>
<li>The stock market and listed property trusts fall</li>
</ul>
To help give you a clearer picture for commercial property, here are five key phases based on economic and supply-demand factors.
Phase #1:
This is the bottom of the cycle, when the market is generally in a condition of oversupply — due to both a weak economy and too much new construction, from when the economy was still strong.
Vacancy rates may be high and rents falling significantly. Therefore, any new construction ceases, while demand slowly starts growing again, and the existing oversupply is gradually absorbed.
Phase #2:
Demand for new space continues to grow. But with little new construction, rents rise — sometimes quite sharply. This leads to developers once again to initiate construction of new buildings, until at some point, you regain a rough balance between supply and demand.
Phase #3:
Demand continues to rise but supply is now growing faster, and rental growth may begin to slow down.
Phase #4:
The market is approaching a point of oversupply, due to over-building, with the situation perhaps aggravated by a weakening economy.
Phase #5:
Vacancy rates climb rapidly, causing rents and prices to begin falling. This leads to a general decline in investor confidence. And so, you re-enter Phase #1 once again.
Historically, offices have spanned around 18 years from "peak to peak". The industrial and retail cycles have tended to be about nine and six years respectively.
Bottom line: Obviously, the key is in knowing where you are in any particular cycle. Unusual influences (like the mining boom) can cause disparities for commercial property, between the various capital cities.
However, for most cities, you are now in Phase #2, with about five to six years to run before the current cycle for each sector peaks.
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" title="Chris Lang's blog" href="https://his-best.biz/">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

How to time the commercial property market right

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Property-related taxes remain the largest source of revenue for local and state governments. Despite the deteriorating property market conditions in 2010-11 income from property taxes rose to new highs over the 2010-11 financial year.
Over the 2010-11 financial year, state and local governments received more than $33 billion in taxes from property-related channels, which was a record amount. Property-related taxes accounted for 47.3% of all state and local government tax revenue, down from 48.2% over the previous financial year. Despite the softer housing market conditions and ongoing weakness in the commercial property sector, total property related tax revenue increased by 4.6% over the year. This was following a record increase of 14.3% over the 2009-10 financial year.
It is somewhat surprising to see that the total value of property related taxation revenue increased over the year, especially when you consider that the nation's largest asset class (residential property) recorded weaker conditions. Our data shows that the total value of residential property transactions in 2010-11 fell by 17% compared with the previous financial year. Data also shows that over the financial year capital city home values fell by 1.4% and transaction volumes for homes were 20% lower than over the previous year. So how did state and local government possibly lift revenue?
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Firstly, it is important to note that the second graph highlights the different categories of tax revenue, their total value and their proportion of all state and local government property related tax revenue. Of each category of taxation there are really three big ticket areas: municipal rates, stamp duty on conveyances and land taxes. These three categories accounted for 93% of property tax revenue last financial year. Over the financial year, all three categories rose with municipal rates rising by the greatest amount (6.9%) followed by land taxes (4.1%) and a relatively minor increase in stamp duty on conveyances (0.3%).
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Given that both property values and transaction volumes have fallen, it is clear that stamp duty revenue has felt the effects of the soft housing market conditions. In fact, stamp duty has only risen over the year due to increases in the two most populous states (New South Wales and Victoria). In each other state stamp duty revenue has fallen, and in 2010-11 it was 14.1% lower than its record level of $14.3 billion in 2007-08.
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Increases in land tax charges and council rates have been the main drivers of growth in tax revenue over the last financial year. Considering that since the end of the 2010-11 financial year property values and transaction volumes have continued to fall, we would expect that in order to grow tax revenue state and local governments may be looking to again increase land tax and municipal rates as there is likely to be limited (if any) growth in stamp duty revenue.
Across each state and territory there were quite varied results in terms of changes to taxation revenue relating to property. The Australian Capital Territory (14.2%) and Victoria (10.7%) recorded the largest increases in property tax collection. On the other hand, the amount of property related tax collected fell over the year in: Western Australia and the Northern Territory (both -9.6%) and in Tasmania (-1.9%).
Across the land tax and municipal rates categories, the amount of land tax collected rose by the greatest amount in Victoria (18.7%) and Australian Capital Territory (12.5%) and fell by the greatest amount in Tasmania (-17.6%) and Western Australia (-0.6%). Municipal rate collection rose by the greatest amount in Queensland (8.6%) and Victoria (8.3%) and recorded the lowest increases in the Northern Territory (3.6%) and New South Wales (4.2%).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpapril234.gif"><img src="/images/stories/rpapril234thumb.gif"></a>
Overall, we would expect that the rate of growth in property related tax revenues to remain fairly limited over the coming year. Property tax is clearly the most important source of revenue for state and local governments and as a result it is likely that these governments will look to make adjustments to grow revenue. Most notably, we already know that rates have increased over the year and some changes have been made to land tax calculations. CPI data from the ABS shows that over the first two quarters of the 2011-12 financial year, the property rates and charges housing sub-category has increased by 5.2% across the capital cities. We have also seen stamp duty concessions on the principal place of residence removed by the previous Labor Government in Queensland which was obviously an attempt to capture more revenue.
Considering the soft market conditions over the financial year to date, look for state and local governments to look for other ways to compensate the falls in property related taxes. Potentially this means higher rates of stamp duty or charging a greater amount of land tax / municipal rates.
Cameron Kusher is senior research analyst at <a href="https://www.rpdata.com.au/" target="_blank">RP Data</a>.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Property taxes continue to grow even as house prices slide: Cameron Kusher

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Battery Point was the most expensive suburb in Tasmania, according to the Real Estate Institute of Tasmania, with a median house price of $925,000 in the March quarter.
It typically competes with Sandy Bay for top sales, but had the field to itself so far this year.
<img src="/images/stories/francisst.jpg">
At the top end of Battery Point's sale was Royston, a four-bedroom <a href="https://www.propertyobserver.com.au/https://www.allhomes.com.au/ah/tas/sale-residential/10-francis-street-battery-point-greater-hobart/14139503140711?lid=168074670" target="_blank">1834 Francis Street</a> cottage (pictured above), which fetched $1.75 million through Kim Morgan at Charlotte Peterswald for Property. Set on 1,590 square metres, it had previously traded at $1.38 million in 2006 and at $655,000 in 2000.
<img src="/images/stories/secheron.jpg">
St Botolph,<a href="https://www.realestate.com.au/property-house-tas-battery+point-108347716" target="_blank"> a 1901 four-bedroom Victorian Italianate residence</a> on a 1,300-square-metre holding (pictured above), fetched $1.55 million when listed through Adrian Gray at George Self Property. It sold at $427,000 in 1998.
<img src="/images/stories/tasexxy.gif">
 
Battery Point photograph by Brad Touesnard<a href="https://www.flickr.com/people/capeislander/"></a>, courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
 
 
 
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Battery Point leads 10 most expensive localities in Tasmania: REIT 

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The Reserve Bank has decided to backpedal and heeded the demands of economists who have been up in arms ever since the central bank kept the cash rate on hold last month.  We had the usual surge of tables splashed over the front of the dailies highlighting the savings to the average mortgage holder should the banks pass on the full cut.  Sellers in the property industry are rubbing their hands together, expectantly waiting for prices to rise, and the focus for the next few weekends will be firmly on the clearance rate for any indication of a change in sentiment.  However, after all the celebratory drinks have been clinked over the table as those who “bet” on the exact basis point drop get their “told you so” moment, perhaps we can get back to reality. It’s unlikely we’re going to see a surge towards the property market – at least not in the near future.
It’s clear the RBA has lost some element of persuasion over the banks, with the statement that 50 basis points drop was to “encourage” the banks to at least pass a proportion of the rate cut onto customers. To all outside eyes, we’ve managed to end up with a system where the banks are in the controlling seat and the RBA’s influence and relevance to home owners is diminishing.  Wayne Swan has warned the banks to pass on the full amount – however, his threat can only be addressed with an “…or what?”. The banks no longer need to bow to the demands of those we voted into power – they are a ruling power unto their own interests and profit margins.
One minute we are exhorted to save, pay down debt, hunker down and tighten our belts.  The next we are told we need to march out and stimulate the economy.  Retail needs it, the housing market is apparently crying out for it – and Swan is dancing around as if he’s personally responsible for the whole charade, with his obsession with a surplus by 2012-13.
The drop would stimulate confidence it was reported; however, it does just the reverse.  It tells everyone what we already know: anyone not in mining is struggling – particularly if they own a small business, work in the retail and manufacturing sectors, or are one of the millions on the average Australian wage trying to service rental or mortgage payments.  For those struggling on the minimum wage (around 1.4 million people, or roughly one in six workers), it’s a lifestyle of ball juggling as it’s now well accepted that the majority of Australians spend at least 50% of their disposable income simply putting a roof overhead.
With the banks passing on a proportion of the rate cut, home buyers and mortgage holders will gain a marginal benefit in disposable income,  however unless your mortgage is in the top percentile, the drop is only slightly beneficial at most.  For the majority of new home buyers it does little to improve affordability.  Anyone who has managed to save a deposit is most likely out there shopping already – a lot of them dual income couples, high-income earners, or beneficiaries of a gifted deposit.  A growing majority of low-income earners are simply locked out while struggling to service growing rental yields.
In the recent Victorian budget, it’s welcome that more funds have been dedicated to <a href="https://www.propertyobserver.com.au/victoria/victoria-s-new-home-bonus-grant-ends-june-30-but-lower-stamp-duty-cuts-in-january-2013-for-first-time-buyers/2012050254518">dropping stamp duty costs by 30% for first-home buyers</a> (details of which can be found <a href="https://bit.ly/IHmEqu">here</a>.) However, in order to do so, the government stripped away the $13,000 grant offered for the purchase of new homes. In light of the fact that new supply is essential for reducing competition and inflation on established stock, there’s not much to celebrate really.
Then again, as we’re told repeatedly, despite promises to the contrary, there isn’t as much in the coffers to hand out at the moment.  Ted Baillieu should be well adverse to the adage that you always “promise less and deliver more”.  However, apparently, due to the softness in the housing market, less than expected came in from stamp duty payments, therefore tough luck to the taxpayer.  The only way government, both local and federal, know how to raise money is to raise taxes.  To think outside the square never gets further than an expensive research paper. However, to be fair, much of Victoria’s problems did have their beginnings in poor management from previous administrations.
Different states offer a range of different policies for first home buyers (aside from Tasmania, which offers nothing outside the federal government’s $7,000 grant.)  All are introduced for periods of time, however all are subject to change by subsequent governments providing no confidence of consistency.  Some policies are better than others, however, the minimal assistance that is available arguably inflates the market rather than the reverse (as evidenced by the boom and bust cycles as various the schemes are introduced and subsequently scrapped).
Billions has been thrown at first-home buyers over the years, which is amazing when you consider evidence proves it’s not achieving the desired result.  Should the current trend continue, we’ll see today’s 35- to 44-year olds reach retirement with a quarter still renting – and when the 25- to 34-year-old bracket reach retirement, a third will still be renting. How long until 50% are reaching retirement while paying someone else’s mortgage?
If you’re reading this and already hold a mortgage you’re probably understandably too concerned with meeting your own bills to take a close look at the bigger picture that is growing to be a crisis of monumental proportions. Some may have read or heard about the latest Anglicare report that has taken a snapshot nationally to look at the supply of affordable rental accommodation for those on a low wage or on government allowances.  Not surprisingly, the results are truly dire – you can read the full report on Anglicare’s <a href="https://www.anglicare.asn.au/site/research_reports.php">website</a> – however the outcome emphasises “people on the minimum wage need two incomes to rent a house. In many places even that is not enough”.
Two incomes to rent a house? If you can’t rent on two incomes, you certainly won’t be in a position to buy – renting is still the cheaper option, and house prices are not reducing by any significant proportion to change this ratio.  In Anglicare’s report, it surveyed more than 65,000 advertised rental properties across Australia. For singles living on an aged or disability support pension there were no affordable options in any urban area across Australia, and for singles on the minimum wage the options were so limited that in Sydney, not even 1% of all the advertised properties met the requirement. This is in a nation envied worldwide for its prosperous economic status – one of the few that “beat” the recession.
I only have practical experience of the Melbourne rental market, which has a reported vacancy rate of 2.5% – this is up from 2.2% last year.  When it announced the latest vacancy figures, the REIV commented, “the reduction in population growth and increase in construction of new dwellings is now beginning to provide easier conditions for renters”. Well, it may look that way on paper, but in reality, it couldn’t be further from the truth.
The rental agency I deal with has demand at such a level that – whatever the condition - an advertised property will be marketed for no more than a few hours before numerous enquiries are received requesting and inspection.  It’s a common story repeated within every management company across the metro area.  Most recently, I witnessed a line of prospective tenants queue outside an old untouched one-bedroom-plus-study house that could can only be described as highly unsuitable for a family.
The location on a busy main road arterial, coupled with the “rawness” of the internal condition, including an oven that didn’t work and no laundry facilities, gave doubts it would attract any enquiry at all.  However, it rented after being on the market for less than a day. The successful application was a couple with a two-year-old child – both of whom had full-time employment.  They’d been looking for a number of weeks and offered to paint the property at their own expense by way of an incentive.
Current yields in Melbourne are advertised around 5% for inner-city apartments – however, other states such as Perth for example are easily achieving yields around 5.5% in inner city suburbs. To secure accommodation, it’s not unusual for many applicants to offer in excess of the advertised price.  For prospective tenants unable to provide an incentive, options are virtually nonexistent.  I can’t over-emphasise the problems this is causing.
It’s in the rental market, homeless numbers, and waiting lists for public housing, where you’ll find the true story of <place><country-region>Australia</country-region></place>’s housing shortage.  The buying market is simply a game of musical chairs as one established property passes to another.  New home sales are at decade lows because they’re situated in areas on the outskirts of the city where many can’t feasibly settle.  This is why we need to distinguish between “housing need” and “buyer demand”.
As the RBA points out in its latest analysis of the market, “rental vacancy rates have been around 2 per cent since 2009”.  It’s the consequence of years of poor planning that has squeezed everyone into urban areas close to centralised employment centers.  As such, we have ended up in a situation where rental applicants have to compete against each other to acquire some sort of shelter, a little like some pseudo form of the Hunger Games.
Under current conditions, whether buying or renting, “housing stress” is almost an understated term.  We all need a home and in this prosperous nation of ours, everyone should have access to feasible options to provide shelter for their family – whether renting or purchasing. If you have a system where growing numbers are unable to attain the basic essentials for their families without experiencing significant stress, there’s no room for innovation and development of ideas that are the key to increasing productivity and consequently a country’s overall wealth.
As always, it’s those most in need who come bottom of the pile – and based on the Anglicare report, we can now add full-time employees to that number.  The solution to the problem should not be concentrated on a market driven by incentives or tax breaks, which simply pits one buyer against another.
Instead, it’s important to start listening to local voices, real community needs.  To give one example, Point Cook in Victoria, located 25 kilometres from the CBD, was marketed as a “vibrant new retail and commercial development being created in Melbourne's western suburbs”. Expected to provide housing for over 12,000 families and a 25-minute drive from the CBD, it’s been one of Melbourne 's fastest-growing residential areas.
However, the residents that moved there discovered the 25-minute drive is only applicable if you leave for work at 3am, otherwise – with only one major road in and out of the suburb, it can end up being a two-hour commute.
The residents are crying out for more roads, schools, leisure facilities, and so forth, however the house building continues and as more families move in, the problems worsen. Unfortunately, there’s no end in sight for Point Cook residents.  In the recent Victorian state budget, Melbourne’s fastest-growing region was completely overlooked. No one listened.
As such, it’s no surprise that turn over in some areas of the suburb is three times the Melbourne average and land banking from speculative investors (or residents “changing their minds”) has resulted in many empty lots sitting undeveloped.
Considering the billions of tax incentives and home owner grants that have been handed out over the years, it’s clear protecting growing house prices has always been a priority – and building thriving communities has not.
From an outside perspective, Australia’s land mass, wealth, skills shortage, ageing baby boomers, along with many regional locations simply crying out for an increase in population, I’ve always seen ample opportunity to channel population growth to our social advantage.  However, it’s clear that successive governments have judged the health of our economy as figures on paper not adequately planning for our growing community’s needs.
The wealth of any nation should be judged on the standard of living provided for all – not a select group.  Seeing as we can hardly cope with housing those who already live here, and as there is no reasonable policy shift to aid a rapid improvement of the situation, perhaps it’s time to close the doors all together aside from fulfilling our obligation to provide refugee protection? Based on current data, the population would stabilise around 2050, however in my mind, it would be a terrible admission of failure.
As for improvement in the housing market, well, don’t look at clearance rate figures for a sign of recovery, instead look towards the polls. Because only when people feel their voices are heard and basic needs provided for (without breaking the bank), will the polls improve and confidence return.  Until such a time, we’re in for a long, flat road ahead.
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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