Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

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

<html><body>
The <a href="https://www.propertyobserver.com.au/queensland/mine-closure-expected-to-bring-down-rents-and-prices-in-dysart-queensland-agents/2012041854299">Dysart fracas a week or two ago</a> reinforces my long-standing advice to those foolish enough to ask me: “You shouldn’t buy property – regardless of the current returns – in one-horse towns”.

In fact, I will go further and suggest that buying in any town with fewer than five pillars of economic growth isn’t a wise long-term decision. Why five? That’s so that if one of the pillars gets knocked down, then usually the place can still get by. Think of it like a table with five legs.

The more economically diverse the location is, the better, if you ask me. Capital cities are well-supported by economic multiplicity, and it is better still if they have a nexus with resources including mining, like Brisbane.

But major regional centres are also economically diverse; and again, those with a strong connection to resources offer much sounder investment fundamentals than “fewer-horse” towns. Yes, you might miss out on some extraordinary rental returns and capital growth, but such returns only take place because the investment is high risk. It is called “extraordinary” for a reason.

Give me the more garden-variety residential investment returns any day. I have enough problems sleeping at night as it is.

Townsville is a “10-horse” town, and its economic foundations are evenly spread.  No one industry section holds more than 13% of its employment.  Mackay has eight pillars of growth, and mining isn’t the largest one. Ditto for Toowoomba. Gladstone has six, as does Rockhampton, Bundaberg, Hervey Bay and Cairns. Hervey Bay, Cairns and to some degree Bundaberg have too much exposure to poor-performing industry sectors like tourism, retail and new construction and not enough to the muscle industries, such as health, education, mining, transport, storage and defence.

The Sunshine and Gold coasts – to some degree – are suffering from the same cold.

To find out where we think each regional market is positioned, click <a href="https://matusik.com.au/chartsDetail.php?Next-stop-Brisbane-16">here</a>.

For mine, Brisbane and Townsville are the two markets to watch in Queensland over the next couple of years. My writings about Brisbane are now somewhat old hat.

<a target="_blank" href="/news">Townsville</a>, as well as having 10 economic pillars of support, also holds one of Queensland’s most strategic assets – the Port of Townsville.  Did you know that $2.1 billion worth of goods are shipped through the Port of Townsville every year?  That is two and a half Instagrams – or to us ordinary folks, a thousand million (yep, that’s nine zeros).

The Townsville Airport now supports 95 flights per week and can take any sized aircraft.  Combined with both ports, two rail and freeway networks, Townsville is the hub of north Queensland – the true “CBD of the north” if you ask me.

In addition, there is $1.25 billion worth of infrastructure projects underway, including 30,000 square metres of new office space. Townsville holds more government and defence personal than any other place in Queensland, outside of Brisbane.  About 25,000 tertiary students study at James Cook University or Barrier Reef TAFE and despite cyclones, the high Aussie dollar and the general economic malaise, 850,000 people visited Townsville last year.

And to top it all off, Townsville, outside of the capital cities and their immediate surrounds, is the fastest growing urban area (in terms of actual population) in Australia.

But (and there is nearly always a “but” these days) the locals cannot see the forest for the trees.  And I am finding this to be a common occurrence across the country these days.

Townsville locals will rush off to buy in a nearby “one-horse” town, but won’t give blue-chip assets in their home town the time of day.  Strange, indeed.
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 href="https://www.matusik.com.au/" target="_blank"> Think Matusik</a>.  Think Matusik brings together expert opinion and select property opportunities.
 
 
 
 
 
</body></html>

michaelmatusik-49YzLvdmNv

Garden-variety investment returns in places like Townsville are better than extraordinary growth – and risks

<html><body>
Across all capital cities, the greatest proportion of suburbs have a median house price of between $300,000 and $500,000, while less than 9% of suburbs have a median house price over $1 million.
This analysis looks at median unit prices across those capital city suburbs that have recorded at least 10 unit sales over the 2011 calendar year.
Across the combined capital cities, 18.1% of the suburbs have a median unit price below $300,000. The majority of capital city suburbs have a median unit price between $300,000 and $500,000 with almost 60% of all suburbs sitting within this range.
In comparison to the detached housing market, there are many more options for the price-sensitive purchaser within the unit market. Although there are more options across the combined capital cities, there are no suburbs in Darwin with a median unit price below $300,000 and only around 1% of suburbs in Canberra have a median unit price below $300,000. Across every other capital city at least 10% of suburbs have a median unit price below $300,000.
The more affordable price points and ability to own closer to the city centre is a large reason why we believe that demand for inner-city apartment living is increasing.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpapril251.gif"><img src="/images/stories/rpapril251thumb.gif"></a>
Within a 10-kilometre radius of each city centre the opportunities to purchase units below $500,000 are much more abundant than they are to purchase detached houses. Across all cities, 69% of suburbs within 10 kilometres of the city centre have a median unit price below $500,000 and each individual city has at least 20% of suburbs with a median price below $500,000.
Looking at median unit prices below $700,000, 94.6% of all suburbs are priced below $700,000 and across each capital more than 80% of suburb median unit prices fall below this level.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpapril252.gif"><img src="/images/stories/rpapril252thumb.gif"></a>
Across those suburbs located between 10 kilometres and 20 kilometres from the city centre, suburbs with median prices between $300,000 and $500,000 are most abundant, accounting for 64.9% of all of these suburbs. When you look at all suburbs with a median unit price below $500,000 it equates to 78.3% of all suburbs within 10 kilometres and 20 kilometres of each capital city. Across each individual capital city, the proportion of suburbs priced below $500,000 in this area varies from 66.1% of suburbs in Sydney and Melbourne to all of the suburbs in Brisbane, Adelaide, Hobart and Darwin.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpapril253.gif"><img src="/images/stories/rpapril253thumb.gif"></a>
At a distance of more than 20 kilometres from the city centre and less than 30 kilometres from the capital city centre, 88.4% of suburbs have a median unit price below $500,000: Across each individual capital city, the vast majority of suburbs have a median unit price which sits within this range.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpapril254.gif"><img src="/images/stories/rpapril254thumb.gif"></a>
Once you move further than 30 kilometres away from the city centre virtually all suburbs have a median unit price below $500,000. Not only is this a reflection of the fact that the pricing differential between units and houses narrows as you move further away from the city centre but also that the supply of units typically decreases. Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/rpapril255.gif"><img src="/images/stories/rpapril255thumb.gif"></a>
With housing demand strongest within inner city areas and the cost of purchasing developable land restrictive, ongoing densification makes sense.
The benefits of a greater volume of units are clear; you only have to look at the fact that in Sydney 20.5% of suburbs within 10 kilometres of the CBD have a median unit price below $500,000, compared with zero suburbs within the same boundary having a median house price below $500,000.
Units afford residents the ability to live in more desirable areas of the city than they would otherwise be able to if they had to buy a detached house. A good example of this is in Sydney; the median house price over the 12 months to December 2011 was $555,000 compared with $455,000 for units. Based on suburb median prices you could purchase a house in Riverwood (16 kilometres from the city), or you could buy a unit in Chippendale less than three kilometres from the city centre for $100,000 less at these median prices.
Given the strong demand to live close to the city centre, lack of appropriate infrastructure within the outer suburbs of most capital cities, the restrictive pricing for detached houses in inner-city suburbs and limited supply, we anticipate that densification of the inner city will (and should) continue.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
Cameron Kusher is senior data analyst at <a target="_blank" href="https://www.rpdata.com.au/">RP Data</a>.
Sydney units photograph by Neal Jennings, courtesy of <a href="https://www.flickr.com/" target="_self">Flickr</a>.
 
 
 
</body></html>

ckusher-ujnxiKuFQs

Units the way to go for city buyers looking for property under $300,000: Cameron Kusher

<html><body>
The Melbourne suburb of Elsternwick has been the stand-out performer in the first quarter of 2012, managing an auction clearance rate of 84%, according to figures compiled by the Real Estate Institute of Victoria (REIV).
Elsternwick, nine kilometres south east of the Melbourne CBD, was one of just five suburbs to achieve an auction clearance rate of 80% or more, well above the overall Victorian average for the quarter of 62%.
The second and third best performing suburbs – Mitcham (82%) and Mill Park (81%) – are both outside the inner-city ring, indicating that quality of homes is driving demand at the moment, not a particular price point.
Mitcham lies 20 kilometres east of the CBD, and Mill Park is 23 kilometres north-east of the city.
The inner-city suburbs of Fitzroy and North Melbourne both managed auction clearance rates of 80% over the quarter.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="132">
 
</td>
<td valign="top" width="124">
No of auctions in March quarter
</td>
<td valign="top" width="102">
Sold under the hammer
</td>
<td valign="top" width="148">
Price range
</td>
<td valign="top" width="111">
Median house price*
</td>
</tr>
<tr>
<td valign="top" width="132">
Elsternwick
</td>
<td valign="top" width="124">
38
</td>
<td valign="top" width="102">
32
</td>
<td valign="top" width="148">
$254,000 - $2.1 million
</td>
<td valign="top" width="111">
$1.2 million
</td>
</tr>
<tr>
<td valign="top" width="132">
Mill Park
</td>
<td valign="top" width="124">
31
</td>
<td valign="top" width="102">
22
</td>
<td valign="top" width="148">
$305,000 - $676,000
</td>
<td valign="top" width="111">
$410,000
</td>
</tr>
<tr>
<td valign="top" width="132">
Mitcham
</td>
<td valign="top" width="124">
27
</td>
<td valign="top" width="102">
22
</td>
<td valign="top" width="148">
$369,000 - $805,000
</td>
<td valign="top" width="111">
$587,500
</td>
</tr>
<tr>
<td valign="top" width="132">
Fitzroy
</td>
<td valign="top" width="124">
20
</td>
<td valign="top" width="102">
16
</td>
<td valign="top" width="148">
$407,000 - $1.79 million
</td>
<td valign="top" width="111">
($896,500
</td>
</tr>
<tr>
<td valign="top" width="132">
North Melbourne
</td>
<td valign="top" width="124">
40
</td>
<td valign="top" width="102">
32
</td>
<td valign="top" width="148">
$320,000 - $1.32 million
</td>
<td valign="top" width="111">
$740,000
</td>
</tr>
</tbody></table>
Source: REIV, *RP Data
Among those properties to sell in Elsternwick over the three-month period was this <a target="_blank" href="https://www.realestate.com.au/property-unit-vic-elsternwick-107136867">two-bedroom over-55 retiree unit (pictured below) in a complex of 20 apartments on Orrong Road</a>, which sold for $495,000 through Celestine Eramo for ASL Real Estate Doncaster.
<img src="/images/stories/elst1.jpg" width="470">
Another property to sell was this <a target="_blank" href="https://www.realestate.com.au/property-house-vic-elsternwick-109112646">three-bedroom house on Gardenvale Road</a> (pictured below), which sold for $940,000 through Biggin &amp; Scott Elsternwick.
<img src="/images/stories/elst2.jpg" width="470">
Elsternwick is situated close to the Balaclava and Glenhuntly Road shopping strips and Malvern Central shopping centre and has a median house price of $1.2 million, according to RP Data.
Knight Frank sales director Andrew Swinson recently described Elsternwick as “traditionally a very well-performing suburb with positive growth statistics and impressive potential for capital growth”.
The REIV’s Robert Larocca says a review of the suburbs with the highest clearance rates in the first quarter tells you a lot about the local market right now.
“Firstly, it shows that some places are defying the overall trend.
“Secondly, the lack of a clear defining common theme shows that it is the location and quality of the homes for sale that is driving demand, rather than pressure at one particular price point,” he says.
Larocca says buyers and sellers need to fully understand the local market they are buying and selling in “lest they turn up to an auction believing only six in 10 are selling under the hammer when, in fact, eight in 10 are – as in Mill Park, for instance”.
The March quarter clearance rate of 62% was up on the December quarter clearance rate of 55%, but lower than the 67% clearance rate in the March quarter.
The volume of auctions held was 17% lower than at this time last year, 9% cent lower than at this time in 2010 and 74% higher than at this time in 2009.
According to the REIV, auction and private sales achieved similar outcomes for vendors over the quarter.
The median price of a house sold at auction increasing by 2.3% from $700,000 in the December quarter to $716,500 in the March quarter.
For a house sold by private sale – as about three out of four are – the median price increased by 1.1% from $465,000 to $470,000.
 
 
</body></html>

lschlesinger-FZcF9M3vE6

Buyers sold on Elsternwick, with highest auction clearance rate in Melbourne in March quarter: REIV

<html><body>
The pending move of federal cabinet offices to the sustainable development at 1 Bligh Street is set to cost $21 million, according to the Department of Finance and Deregulation.
The department has released details of the proposed fit-out of the new offices after Special Minister of State Gary Gray <a target="_blank" href="https://www.propertyobserver.com.au/office/government-aims-to-move-into-dexus-ultra-green-1-bligh-street/2011103052118">confirmed the move in October 2011</a>.
The DoFD plan to lease floors 19, 20 and 21 of the 30-level building – a total of 4,891 square metres.
The move still needs to be approved by the public works committee.
The new premises will serve as the offices for the Prime Minister, cabinet, ministers, office holders, Opposition Leader and visiting senators and members.
The building has been marketed as being environmentally friendly, featuring a 135-metre-high 16-metre diameter atrium, a double-skin climate-controlling glass façade, energy-efficient air-conditioning, its own energy generation mechanisms, solar panels and water recycling facilities. It has been awarded a six-star green star rating, the first high-rise building in Australia to get the rating.
The Sydney Commonwealth Parliament Offices are currently at 70 Phillip Street, but the building is said to be too old and of too poor condition to continue leasing. It was built 30 years ago and served the Hawke government.
“Due to the age and condition of the accommodation, as well as inherent faults that cannot be overcome by a refit, it was considered undesirable to sign a new long-term lease on the premises,” the DoFD report says.
“Other factors driving the decision to relocate include the safety, security, parking, access and amenity of the building, none of which are appropriate for the required use.”
It was suggested in March that terrorism-related parking restrictions caused headaches for parliamentarians.
“It is no longer possible for vehicles to wait kerbside for parliamentarians who are exiting from the building. This leads to situations where parliamentarians wait on the street while their COMCAR drives around the block,” the report says.
The building features a commercial childcare centre on the lower ground floor and has space for 270 bicycles.
The preliminary layouts were prepared by Davenport Campbell.
Works on the site are due to commence in September with a move-in date of December this year.
The Dexus-owned building <a href="https://www.propertyobserver.com.au/office/dexus-1-bligh-street-criticised-over-price-design-and-views/2011101952002">has been the subject of comment</a> over its office plate design, restricted harbour views and premium rents.
The building has been limited in finding tenants given the high cost of rent. It cost $629 million to build. As of March it was 82% tenanted.
The building provides 42,000 square metres of net lettable area over 27 levels.
It was officially opened in August 2011 by Prime Minister Julia Gillard.
Public submissions to the leasing inquiry closed April 24.
The committee will hold a public hearing on the proposed fit-out on May 3 in Sydney.
 
 
</body></html>

awalsh-7Ub9EypybQ

Government expected to move into 1 Bligh Street by the end of the year

<html><body>
Buying a property is the most expensive and significant purchase we’ll ever make in our lives.
This makes the purchase process one of life’s most exciting and daunting moments. When buying small items like clothes or cars one can browse, pause, walk away, think and consider. But when buying a half-million-dollar property at auction, the single opportunity to buy is happening right before your eyes. The time to decide is now. Even if you purchase privately and have given weeks of thought to a property, the decision is rarely easy one.
The heat of the moment of an auction and the emotion of becoming attached to a property can sometimes result in post-purchase uncertainty. For whatever reason it may be, it is worth noting that buyers have rights after purchase, and as of March 1, 2012 the Sale of Land Act (in particular section 31) changed to protect Victorian purchasers even further.
Cooling-off rights
Basically put, the legislation now allows for a purchaser to “cool off” after making an offer on a property, no matter what the circumstances are.
Previously a purchaser would forfeit the statutory three-day cooling off period if he or she had sought legal advice prior to signing a contract to purchase a residential property. Purchasers could also agree to remove all rights to a cooling off period legally, by choice, through a solicitor.
However as of March 1st, a Victorian purchaser will no longer lose the right to the cooling-off period if he or she received legal advice, and the new amendments to the legislation also no longer allow the purchaser to legally waive their three-day withdrawal period.
The amendment to the legislation is a positive for purchasers who are not 100% certain about their decision. This may not be good news for purchasers that are certain on their decision, however, as a selling agent will be less likely to accept an offer before auction, or entertain the idea of negotiating with a buyer before an action, if the buyer can still cool off. Previously, if a strong offer was put forward without a cooling-off period, the offer was as good as being sold under the hammer, as it was deemed an unconditional offer.
From a negotiation perspective, this reduces a purchaser’s bargaining power, as waving the cooling-off period was a negotiation tool used by some purchasers, and this avenue is no longer available – no matter how certain they are on the purchase.
Just one example of this being used to a buyer’s advantage was a recent property Infolio purchased on behalf of a buyer in Carnegie, where we secured a purchase price of $773,100 – despite there being an offer above $775,000 – due to our waiving the cooling-off period.
Key negotiation tools now include submitting offers that are not subject to finance or a building inspection and agreeing to an early release of the 10% deposit, known as a section 27.
More information on the changes affecting buying and selling property effective from March 1st can be found at <a target="_blank" href="https://www.consumer.vic.gov.au">www.consumer.vic.gov.au</a>.
Cameron Deal and Lauren Staley are founders of Melbourne buyer advocate and property management agency <a target="_blank" href="https://www.infolio.com.au/index.php/home">Infolio</a>. 
 
 
 
</body></html>

lstaley-3qCRAud7Vh

Victorian buyers have lost a bargaining chip but gained the ability to change their minds in cooling-off changes

<html><body>
Many people who have invested in property may have purchased the property in the wrong name, and the cost to correct it creates a stamp duty and capital gains tax liability and thus prohibits the property from being moved. 
Why would people buy properties in their own names? 
The main reason is for tax. 
Generally if the property is negatively geared, then having it in the name of the person paying the highest tax means that he/she gets back the largest tax refund from the ATO. However, if that person’s occupation exposes him/her to litigation, such as a doctor or someone running a business or a director of a company, then holding assets in their his or her own name would be a silly thing to do. 
If someone sued him/her than any assets that are in his/her own name are up for grabs. 
Australia only trails the US for being one of the most litigious countries in the world. Last year a mother of three in the US was sued by a music company for illegally downloading 12 songs from the internet. The judge found in favour of the music company and ordered damages of $100,000 per song. Unable to pay the total damages bill of $1.2 million plus costs she lost her home and any other assets she held in her name. 
Properties that have been bought in one’s name can be protected without needing to move them using several different strategies.
The principle behind this asset protection strategy is to protect the equity in the properties. Litigants are not interested in the property itself, but they are interested in the equity. Thus protecting the equity is more important than protecting the asset itself. 
1. You can strip any equity that is left within the "at risk" property by asking the bank to take 100% of the equity of the "at-risk" properties for their security and leaving properties that are not "at risk". 
2. Properties that are not "at risk" are those that are held in a property investor’s trust (PIT) or those held in a "not at risk" spouse’s name. However, be careful that you have considered the tax benefits that may be lost if the property is negatively geared and your spouse earns and pays less tax than you do. 
3. If you are unable to adopt the above strategy than you can use an "equity bank trust" that will strip the equity from your "at-risk" assets. This is a relatively low-cost solution but a very effective strategy. 
4. Naturally the best solution is to ensure that the properties are purchased in the correct entity to begin with. Having the property in an entity such as the PIT deed that has an ATO approved product ruling (Product Ruling PR2011/15) is better than trying to fix the problem later. The PIT allows you to claim the negative gearing in your own hands (as long as it’s set up correctly) and protects the property from litigation. The PIT does not have a vesting date, so the assets can be passed from generation to generation. 
5. If both husband and wife are in high-risk occupations they should not have their homes in their own names in case they are sued. However, the problem with holding the home in a trust is that one loses one’s principal place of residence tax free status for both land tax and capital gains tax. Depending on where you live (in which state or territory), one can hold the property in a PIT and grant a life interest to the individual to retain his or her land tax-free status  and capital gains tax-free status. However, you must seek advice, because if not set up properly this strategy could potentially backfire. It would also be a good idea to get a private ruling to ensure that this will work in your particular circumstances. 
6. If you have loaned money to your daughter or son to purchase a property with, make sure that you have either registered a second mortgage or a caveat over the property in case his or her marriage and or de facto relationship fails. The second mortgage/caveat ensures that you at least get back the loan or gift you had given your son or daughter.
Ed Chan is a founding partner of <a href="https://www.chan-naylor.com.au/" target="_blank">Chan and Naylor</a> accountants and a leading property tax specialist. He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
 
</body></html>

echan-hSGJw4wwC5

Tax tips: Investing in property in the wrong name could cost you money

<html><body>
This week's low inflation reading has confirmed a rate cut in a week’s time.
Many punters will argue the Reserve Bank did not need to wait for this particular green light before adjusting the cash rate down, and should have been listening to the line-up of angry homeowners, builders, retailers and manufacturers hooting at Glenn Stevens to put the car in gear and get a move on.
Even the likes of <a href="https://www.propertyobserver.com.au/economy/kochie-slams-rba-as-too-slow-in-responding-to-economic-downturn/2012041754314">Channel 7 Sunrise host David Koch </a>(a self-confessed admirer of Glenn Stevens) has hit out at the Reserve Bank for being too overly cautious and too slow in responding to the current economic downturn at a time when the government is determined to cut spending to achieve a budget surplus in the next financial year.
On the ABC’s Inside Business program this weekend stockbrocker Marcus Padley said he could not believe that the Reserve Bank was still waiting for the inflation figure given the struggles facing the retail and housing sectors.
“Inflation surely is not the issue right now – you have a retail sector and a housing market [literally] on fire and here you have the RBA telling us they will wait for the inflation number, they’re simply missing the point,” said a gobsmacked Padley.
Perhaps facetiously, some economists have suggested that if the RBA is so reliant on the quarterly inflation data then perhaps it should only meet every quarter to decide on interest rate settings.
Alternatively, they could put more emphasis on the range of other more regular data in making an assessment or put more faith in the forecasts of economists, which have been forecasting a low March quarter inflation reading for some time now.
For now the debate will continue to rage about how swiftly the Reserve Bank is responding to the two-speed nature of the economy and why it is placing so much emphasis on containing the effects of the mining boom when other sectors are in real strife.
That is until the RBA makes its May 1 rate announcement and we await to hear whether the banks will pass on the full rate cut or leave borrowers with just a few crumbs.
</body></html>

Inflation reading gives RBA the rate cut green light it never really needed

<html><body>
For months the Reserve Bank of Australia has said it would patiently wait for the consumer price data to confirm that the door was open to rate cuts. It got unambiguous affirmation of that reality from the ABS at 11.30am today.
In the best possible news for Australia’s economy, core inflation printed at just 0.35% in the March quarter. Despite some small upward revisions to last year’s fourth-quarter data, core inflation in Australia is sitting near the bottom of the RBA’s target 2% to 3% per annum band at around 2.2%.
But there is possibly more good news to come. Next quarter the annual inflation numbers will lose the very high underlying inflation print from way back in June 2011. This implies that the annual inflation figures could slide further in the second quarter of 2012.
What does this mean for interest rates? In my last column <a target="_blank" href="https://www.propertyobserver.com.au/economy/what-inflation-means-for-rba-interest-rates-in-may-christopher-joye/2012042354399">I provided a “cheat sheet” based on a range of different outcomes today</a>, which I have enclosed below. We ended up getting a result that arrived somewhere between the top two rows of my table. As you can see from the right-hand-side column, this connotes a minimum 25-basis-point cut in the RBA’s official target cash rate come May.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/april233.gif"><img src="/images/stories/april233thumb.gif"></a>
Speculation will mount that the RBA could go even further with a 50-basis-point cut. One of the most persuasive arguments for this action is additional margin expansion by the banking community.
Assuming the RBA cuts by 25 basis points in May, we will have had a total of three cuts, or 75 basis points worth, since November. If the other banks follow ANZ’s six-basis-point hike by a similar margin, the net benefit to Aussie borrowers would have been 55 basis points, or two rate reductions (taking May as given).
Yet the RBA will probably choose to wait until it has the benefit of seeing the Gillard government’s budget after its May meeting. If it does so, its view of the world remains unchanged, and, finally, the banks do not pass on the May cut in its entirety, then the probability of follow-up relief in June would rise materially.
The low inflation numbers deliver the best of all possible worlds for Australia’s torpid housing market. Mortgage rates are currently around their average levels. However, long-term interest rates, as measured by 10 year government bond yields, are at all-time lows. This should allow banks to further cut the cost of fixed-rate home loans, all things being equal.
In addition to lower fixed-rate loans, the 4 million-plus Australian borrowers on variable-rate loans will get a third rate reduction in May with the prospect of a fourth bout of accommodation in June. Given the news on prices today, the RBA will be comfortable pushing lending rates into “stimulatory” territory—that is, levels that are lower than their long-term averages.
The latest auction clearance rate data in the two biggest auction markets, Sydney and Melbourne, suggest that the overall market is travelling okay. Last weekend auction clearance rates in both cities hit circa 60%, according to RP Data. This followed a noticeable slump in clearance rates, and housing conditions more generally, during the traditionally weak Easter period (see chart below).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/april241.gif"><img src="/images/stories/april241thumb.gif"></a>
In 2012, the Aussie housing market has displayed some signs of stability after the consistent declines experienced during 2011. We forecast this result on the basis of the RBA’s two rate cuts in 2011, although the banks have chiselled away at this relief. The market’s 2012 base is evident in the chart below, which illustrates the 30-day moving average attributable to RP Data-Rismark Eight Capital City Dwellings Index.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/april242.gif"><img src="/images/stories/april242thumb.gif"></a>
Finally, there are tentative signs of life in zombie-like, ultra-premium part of the market. <a target="_blank" href="https://www.propertyobserver.com.au/residential/laurie-sutton-the-kingpin-of-sydney-property-as-he-swaps-mosman-for-kalua-in-palm-beach-in-record-setting-sales/2012042354412">It was reported today that a holiday home in Palm Beach sold for a record price well in excess of $20 million</a>, which, if correct, smashes the previous Palm Beach record of around $14 million. This home had only been listed for seven months before it was snapped up. (Disclosure: a related party was involved in the transaction.)
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The above article is not investment advice.
 
 
 
</body></html>

chrisjoye-JYhJsTrNRC

Interest rate relief now certain for Aussie borrowers: Christopher Joye

<html><body>
The March quarter inflation reading has come in well below economist forecasts, paving the way for a possible 50-basis-point percentage point rate cut on May 1.
Inflation rose just 0.1% over the quarter to be up 1.6% through the year to the March quarter 2012 – significantly below the RBA’s target band of 2% to 3%.
Underlying inflation came in at 2.1% on an annualised basis with CommSec chief economist Craig James said this meant a 0.25% rate cut is now all but certain.
The Australian dollar fell from $US1.031 to $US1.026 following the release of the ABS data.??
The less volatile underlying measure of inflation came in well under expectation with the trimmed mean reading at 0.3% for the quarter and 2.2% annualised with the weighted mean reading of inflation at 0.4% for the quarter and 2.1% on an annualised basis.
Economists had forecast an underlying inflation reading of 0.6% for the March quarter, taking the annual underlying inflation rate from 2.6% in the December quarter to 2.4% in the March quarter.
According to economist Christopher Joye a reading of 0.5% to 0.6% would give the green light to a 25-basis-point cut, with anything lower allowing the RBA to consider a 0.5% rate cut on May 1.
The most significant price rises this quarter were for pharmaceutical products (+14.1%), secondary education (+7.7%), automotive fuel (+2.5%), medical and hospital services (+2.1%), tertiary education (+4.7%) and rents (+1%).
The most significant price falls this quarter were for fruit (-30%), international holiday travel and accommodation (-4.8%), furniture (-6%), audio, visual and computing equipment (-6.3%) and domestic holiday travel and accommodation (-2%).
</body></html>

RBA interest rate cut of 50 basis points possible after very low quarterly inflation of 0.1%

<html><body>
Mortgage enquiries increased for the first time in eight quarters, according to the latest Consumer Credit Demand Index from consumer credit agency Veda, led by strong gains in Queensland, WA and the Northern Territory.
During the March 2012 quarter, mortgage inquiries increased by 0.2% to be up 1.5% year on year.
There were solid increases in Queensland (up 4.4% for the quarter, 10.2% year-on-year), NT (up 4.7% for the quarter, 9.7% year-on-year) and Western Australia (up 7.6% for the quarter, 6.6% year-on-year) indicating that mortgage enquiries may be stabilising.
Mortgage enquiries in NSW dropped sharply (-7.6%) in the March quarter, the only state or territory to record a year-on-year quarterly decline, “a reflection of the expiration of stamp duty exemptions in NSW at the end of last year which resulted in a pull forward of first home buyer demand followed by a drop in the first quarter of 2012”.
During the past 12 months NSW mortgage enquiries are down 0.7%.;
Victorian mortgage enquiries increased by 2.3% over the quarter, but are still down 2% year on year.
South Australian enquiries increased by 3.1% over the quarter but are down 3.2% for the year.
Click to enlarge
<a href="/images/stories/veda.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/vedathumb.gif"></a>
"Turning points in mortgage enquiries usually occur one to three quarters ahead of turning points in house prices, an early warning sign which could indicate that after a continued decline, mortgage enquiries may have bottomed out,” says Angus Luffman, head of consumer risk at Veda. 
“Veda mortgage enquiries are closely related to the number of housing finance approvals so this is a trend to watch, particularly if you are hoping for a future pick-up in house prices. 
"In terms of state by state mortgage activity we are seeing different trends play out with NSW mortgage enquiries being affected by the expiration of stamp duty and Queenslanders starting to bounce back after a challenging year," he adds. 
Credit card applications declined sharply in SA (-12%), NSW (-11.3%) and Victoria (-8.8%) over the last year, while the decline is less severe in Queensland (-1.6%) and WA (-4.2%).  In part, the weakness in credit card applications reflects the rise in the use of debit cards and the introduction of responsible lending laws in 2011, which has led to more steps being added to credit card application processes.  
Overall credit demand rose 1.2% over the quarter with credit card applications up 2.7% and personal loans down 0.3%. 
Compiled by Veda since 2004, the Consumer Credit Demand Index is a quarterly analysis of changes in consumer demand for credit cards, personal loans and mortgages across Australia.



Personal loan applications decreased 1.4% year on year, with reduced demand in all states and territories in the March quarter with the exception of WA and ACT. In sharp contrast to other states, personal loan applications surged in WA (+8.3%) year on year while weakness in personal loan applications was particularly evident in Tasmania(-7%), NSW (-4.4%) and SA (-3.4%).



"Australian households have spent the post-GFC period firmly in saving rather than spending mode and the results show that consumers are still cautious about taking on credit, " says Luffman.
"While applications for credit cards and personal loans have both declined, the reduction in card applications is far greater, showing that they are increasingly falling out of favour with consumers as households continue to focus on saving.  However, the results indicate that Australia's two-speed economy is still in effect with consumer credit demand significantly stronger in the mining states," Luffman adds.



Compiled by Veda since 2004, the Consumer Credit Demand Index is a quarterly analysis of changes in consumer demand for credit cards, personal loans and mortgages across Australia.

 
</body></html>

Latest Expert Insights

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

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

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

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News