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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Struggling listed property developer Sunland has put its flagship Palazzo Versace hotel on the Gold Coast up for sale with price expectations of around $80 million arising from strong expected Asian buying interest.
The decision to sell the hotel comes just seven months after Sunland acquired the hotel outright following a swap arrangement with Dubai development partner the Enshaa Group.
The sales campaign is being handled by father and son real estate agents Dan and Sam McVay from boutique commercial real estate agency McVay Real Estate, which has offices in Brisbane and Sydney.
Sam McVay told Property Observer he expected the buyer will most likely come from offshore though there will also be interest from high-net-worth individuals in Australia given the hotel's iconic status.
"We have had a lot of interest in the hotel in the past," he says.
The hotel will be marketed via a five week expressions of interest campaign with a sale expected to be concluded within three months.
Dan McVay told the Gold Coast Bulletin Asian buyers were "probably at the front of the queue".
The hotel features 200 rooms, three restaurants, a ballroom, shops, a gymnasium, a spa, a marina and other facilities.
Under the terms of the agreement, Sunland agreed to exchange its joint venture Dubai projects – the Palazzo Versace Dubai and D1 Tower – <a href="https://www.propertyobserver.com.au/leisure/sunland-swaps-palazzo-versace-dubai-for-gold-coast-counterpart/2011101751958">for 100% ownership of the Palazzo Versace hotel on the Gold Coast</a>.
Enshaa had purchased its 49% stake in the hotel for $42.5 million in 2005.
<img src="/images/stories/palazzov.jpg">
The Palazzo Versace was the world's first fashion-branded hotel when it opened in 2000. The Palazzo Versace name will remain until 2020.
Sunland managed interim profits of just $185,000 for the half-year to December 31, with the company taking a hammering from a slowdown in sales in projects in south-east Queensland and Victoria.
The company had forecast profits of $1 million for the half year.
Annual accounts show that the Palazzo Versace contributed revenue of $14.7 million for the year ending June 30, 2011, compared with $13.5 million for the year ending June 30, 2010.
For the half-year to December 31, Sunland sold 219 off-the-plan apartments and house-and-land packages, worth a combined $102 million.
It settled 263 sales over the six-month period, totalling $59 million.
In its results, Sunland notes a significant decline in enquiries, sales activity and subsequent delay in settlements towards the end of the year, particularly in south-east Queensland and Victoria.
It says the continued rate of sales and timing of settlements will be crucial to the full-year result.
Chief executive Soheil Abedian says the results reflect the uncertainty in relation to settlements and a loss of confidence in the market.
Residential projects that contributed to sales over the six-month period were the Queensland townhouse projects Cassia and Gardene, the Boulevarde Residences at the Royal Pines Resort on the Gold Coast as well as the NSW Sedyr project at the entrance to the Georges River.
Sales were also recorded at the master-planned developments of Bushland Beach near Townsville and Bluestone, 35 kilometres from Melbourne.
The future looks brighter, with a significant amount of settlements pushed forward into the second half of the year. Unconditional sales totalled 470 worth $200 million, while settlements worth $130 million are expected in the first half of 2012.
Sunland is forecasting a 30% drop in full-year profits of between $14 million and $15 million.
The interim accounts show the developer has an unused $66 million line of credit and $19.2 million in cash on hand.
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Sunland lists Gold Coast’s Palazzo Versace after company profits slump

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Retired car dealer Laurie Sutton is the undoubted kingpin of Sydney property in 2012. No sooner had he secured a near-record $20 million Mosman price, than he’s reputedly gone and bought Kalua, the Joye family’s plantation-style Palm Beach trophy home.
It too has sold at a record price for the suburb, according to well-placed chatter, as the neighbourhood expressed keenness over the weekend to welcome Laurie Sutton and his wife, Di, to Sydney's northern beaches millionaires’ playground. Word had crept out after the venture capitalist underbidder with existing Palm Beach connections was advised a sale was iminent.
It's suggested the undisclosed sale price fell a tad short of its ambitious $25 million expectations set <a href="https://www.propertyobserver.com.au/residential/hordern-family-s-hawaiian-hideaway-on-the-market-with-reconrd-setting-palm-beach-hopes/2011091651580" target="_blank">when Kalua was listed last September</a>, perhaps closer to $23 million or so.
But nonetheless, the Joyes’ sale realised a remarkable compound capital gain on the home of about 14% per annum over 33 years of ownership, which bettered the <a href="https://www.propertyobserver.com.au/new-south-wales/chinese-buyers-playing-property-pick-a-box-but-record-mosman-price-unlikely/2012030653723" target="_blank">Suttons’ 12% annual gain for their Mosman home</a>, which was owned for a similar lengthy period. Its the second highest price ever paid for a beachfront holiday home in Australia, the highest being the $26 million Ilyuka estate at Portsea in late 2010.
Kalua is the 1920s Ocean Road holiday home best known as having been the prestige Christmas holiday rental for international luminaries including Nicole Kidman, John Cleese and James Murdoch.
Sutton and his wife will be the 1920s beach bungalow’s third owner. It was last sold by the Hordern retailing family to the more entrepreneurial Joye family, the current vendors, for $330,000 in 1978.
It’s a five-bedroom, six-bathroom house with three-bedroom guesthouse along with studio cabana, pool and tennis court on its 5,500-square-metre dress circle block overlooking Cabbage Tree Boat Harbour.
It was listed by Ken Jacobs and Darren Curtis at Christies International in conjunction with LJ Hooker Palm Beach agents David Edwards and Peter Robinson, who are under instructions not to speak with the media about any detail of the sale. Its not yet marked as sold on their websites.
There’s no confirmation whether Sutton took up the offer of taking 60% vendor financing.
"Unquestionably the most significant and coveted landholding in exclusive Palm Beach, Kalua is a beachfront sanctuary of international stature beyond compare," Jacobs said on its marketing launch.
"It is secluded amid magnificent sprawling grounds … a once-in-a-lifetime opportunity as one of the eastern seaboard’s most prestigious residential offerings," Edwards added.
Kalua was one of the first properties in Palm Beach, guaranteeing its historical significance. Folklore has it that the Hordern family sent their architect by sea to Oahu, Hawaii, to copy “stick by stick and stone by stone” the impressive Dillingham plantation residence.
It was subsequently named Kalua, meaning “double” in Hawaiian. At the time of construction there were no roads into Palm Beach so all materials, including soil, had to be barged in from Newport.
By coincidence the vendor, businessman Ian Joye and wife Maggie, now spend much of their time in Hawaii, where they are building <a href="https://www.propertyobserver.com.au/leisure/the-best-private-resort-in-the-world-with-prices-that-match-the-big-name-guests/2011092951737" target="_blank">a beach home at one of the most exclusive private beachside resorts</a> in the world, <a href="https://www.kukio.com/" target="_blank">Kukio</a>.
Palm Beach's top sale was $15 million, when businessman Doug Shears bought a beachfront on the Pittwater side of the peninsula.
Sales of prestige Palm Beach listings have ranged from $4,800 per square metre to $13,000 over recent years.
Sutton’s 5154-square-metre Bay Street Mosman holding – the suburb's largest harbourfront estate – was bought by Ying Li. The residence, which had been the Sutton’s home for almost 35 years, was bought from the Pick a Box presenters Bob and Dolly Dyer in 1977 for $376,960, when the Dyers headed to Queensland. Its price is now confirmed at $20 million.
The Bay Street tropical holding is like Hawaii meets Hamilton Island on Middle Harbour and despite renovations over the past three decades, there are still traces of the Dyers' day, including the imposing sandstone fireplace in its living room that overlooks Quakers Hat Bay.
For the past few years the Suttons have been based at Darling Point in a Katsura Imperial Villa-inspired Michael Dysart design house after buying from nightclub entrepreneur Barry Wain, who secured $18.5 million for his Lindsay Avenue house with eight-car garaging.
 
 
 
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Laurie Sutton the kingpin of Sydney property as he swaps Mosman for Kalua in Palm Beach in record-setting sales 

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Property group Valad has listed its 16-level A-grade office building at 575 Bourke Street for sale.
The listing is expected to test the strength of the tightly held Melbourne CBD market, which has an office vacancy rate of 5.3%, according to CBRE.
Valad acquired the tower in 2005 for $50.87 million on a yield of 6.34%.
An expression-of-interest campaign closing May 31 will be conducted by James Kaufman and Robert Anderson of Jones Lang LaSalle in conjunction with Martin O’Sullivan and Mark Coster of CBRE.
The property comprises a 16-level quality office tower, with ground-level retail, 15 office floors and two-level basement car park.
“Melbourne is such a tightly held market, particularly for well-leased A-grade assets such as 575 Bourke Street.  It will be a great test of the market, and interest is expected from both local and international investors,” says Anderson.
“The building occupies a premium CBD location surrounded by some of Melbourne’s most highly regarded commercial towers, the law courts and Southern Cross train station.  It benefits from significant base building refurbishment and large highly efficient floor plates,” he adds.
The office comprises a net lettable area of approximately 16,201 square metres and floor plates of 1,050 square metres.
The property at 575 Bourke Street is currently 89% leased, with long-term tenants including Logie Smith Lanyon, McKean &amp; Park, EO Financial Services and Equity Trustees Limited, who occupy two floors in the building.
“A number of the current tenants have been occupiers in the building for multiple terms, a testament to the strength of the asset and its ability to attract and retain tenants. The multi tenanted nature and staggered lease expiry of the asset underpins the high quality cash flow,” says Mark Coster of CBRE.
The sale of the building follows Valad announcing in February last year that would exit its Australian funds management business and focus on direct property ownership.
 
 
 
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Valad’s 575 Bourke Street listing to test Melbourne CBD office market

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As an in commercial property, you need to fully appreciate where your profits actually come from.
In most cases, the key lies with your tenants, who provide you a steady stream of income.
So finding reliable tenants is crucial, which means understanding their needs and providing them with a suitable premises.
Therefore, it is essential that you continually anticipate exactly what your tenants are expecting.
And because good tenants are a vital part of the profit equation, you need to look for ways to inexpensively improve the value of your property by adapting it — with a simple upgrade, or perhaps a change of use — in order to attract better tenants going forward.
In any event, your net income from commercial property will generally be two to three times that for a residential property.
Lease terms are equally important
You'll find a good lease usually provides for rental increases at least in line with inflation. It may well also include conditions that limit rental falls, in times of an economic downturn.
The lease will usually include provision for regular rental reviews based upon market conditions.
The length of the lease may well vary — with smaller premises often attracting shorter lease periods, but probably at least three years.
For larger office buildings, a typical rent period might be for five to 10 years, with an option to renew for a further period. For large or purpose-built Industrial properties, the lease period may be 10 years — with an option to renew for a further 10 years.
The other main source of your profit is capital growth.
This may not always be as high as from residential property — because the supply and demand equation is different. Nonetheless, good opportunities are certainly present themselves — if you know what you're looking for.
Bottom line: Just as certain suburbs can go in and out of fashion with home owners, so commercial properties in a particular area can enjoy very strong demand.
For shops, that would be in a high-growth area. Whereas improved transportation facilities tend to boost the value of offices and warehouses — because of the easier access.
Next week, will run through some short-term investment strategies you may care to explore.
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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How to profit from commercial property investment

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Over the past few weeks <a href="https://www.propertyobserver.com.au/developments/pre-sales-essential-to-selling-modern-developments/2012040354129" target="_blank">we have examined</a> how a <a href="https://www.propertyobserver.com.au/developments/before-starting-a-registrations-of-interest-campaign-outline-clear-goals-peter-chittenden/2012041654305" target="_blank">well-managed registrations-of-interest  (ROI) campaign</a> structure <a href="https://www.propertyobserver.com.au/developments/the-ways-in-which-to-use-pre-sales-and-registrations-of-interest/2012032654012" target="_blank">is required to ensure that a quality plan</a> is seen as the imperative of all activity in this popular area of project marketing and that tangible sales result.
We have established that from the first stages of planning every step is important, including key elements of how information is collected and managed and how consumers are engaged and motivated so that they see real value from their involvement.
Well-managed campaigns with a solid and creative structure can and have produced very good results. But there have also been some very poor examples where a great deal of time and effort has been wasted. The good examples will help produce solid sales and thus give any early bounce to a project.
Poor examples not only fail to leverage the ROI campaign but can go further and have a negative long-term impact on a project.
ROI campaigns also need to reflect the current market conditions; while these campaigns always need to have a well-managed structure they also need clever creative thinking. That in turn reflects market conditions and brands each project in the most appealing way.
The creative ideas and how the campaign is communicated needs to match the prevailing market conditions. An idea that worked during a strong market will not work or will be less successful when markets are not buoyant. Or likewise when a market is filled with contended tribes of purchaser that are of a particular demographic, the creative again needs to speak to this audience, not what the personal preferences are of the project team.
While some ROI campaigns can be achieved with less expenditure than a traditional marketing release, the expenditure does have to be balanced with the anticipated results.
The central aim needs to ensure that people who do register will ultimately be interested and able to move to a paid expressions-of-interest and perform on the launch day to an exchanged contact.
It can also be a mistake to peak interest among buyers too far in advance of the project’s release. While some potential buyers will always be happy to have a long lead time, others will not. This will mainly be a fact determined by the different target groups involved with each stage of a campaign.
Some potential buyers may be sourced from already well qualified existing client lists including repeat buyers, experienced investors including investment networks, friends and associates of a project and buyers on an active ‘early-bird’ list. For some projects these groups would also include off-shore markets, which will require very experienced engagement. [Because this is a very unique area of property marketing, I will look at off-shore markets in a future series of posts.]
The common thread being that these groups are not usually entry-level buyers, but are targets that know the market or the project and want to be involved.
The structure of the ROI campaign can be such that consumers have to take several steps in the registration process. Simply collecting for example a large on-line database might be a waste of time if anyone who registers is not substantially pre-qualified at some stage in the campaign.
Almost all data ages and becomes stale very quickly.
Areas of high demand
But with well-managed data one method is to contact people on existing databases and ask them to register their interest in a new project should they be ready to move to their next purchase. The ideal way to make a final qualification of a ROI enquiry is to require that a refundable deposit is made to secure their place in the queue.
Some ROI campaigns in a strong market or where the appeal of a property is highly competitive can and do require potential buyers to pay a (refundable) registration ‘fee’ of $5000, $10,000 or $15,000 to secure their interest to preview and purchase a property at launch.
Such registration campaigns can be very successful as the act to pre-qualify buyers and create a sense of urgency, and when conditions are suitable and demand is strong they work in areas even when more general conditions are less than robust. It is all a matter of understanding the local conditions, having the right product mix and solid planning.
However such ‘deposits’ are not always possible or even advisable and if mistimed or used with inadequate market knowledge then the circumstances can backfire and damage a project’s possible success.
Despite all of the industries experience and the detailed insights discussed over recent weeks, ROI campaigns are not universally suitable for all projects. I can’t stress enough, if not done correctly, they can cause more harm than good. Despite a trend that has seen the idea become very popular – do not be fooled! ROI and launch campaigns are not as easy as they appear – they require years of experience.
It is easy to understand this popularity as a successful campaign can save money and as already outlined help secure sales that underpin a project and influence prices in a very positive way.
There are alternatives to the ROI campaigns that can be considered where the activity is driven by quality databases from assigned groups such as local agents, investor groups or buyers agents.
In this instance there is typically a campaign that is undertaken with the support of specific media that revels just enough about a project to secure people’s interest. There is a need to be ‘in-market’ even when selling through databases to provide confidence and assurance the project is genuine. If well managed these campaigns, while involving a reasonable amount of media investment and exposure, can be very successful.
This adaptation however requires the ability to be able to offer the project as ‘market-ready’ so that prices are set with contracts able to be exchanged so that potential buyers only act out of genuine interest rather than joining a database in anticipation of a future launch. This format of pre-release campaigns usually only operates on very short time frame. The key aim is to secure demand in a particular target group.
Whisper or off-market campaigns
While ROI campaigns and limited release campaigns do involve a varied degree of public exposure of the project, there is another option to act on prior to being ‘on-market’.
A whisper campaign that does not involve any formal marketing because it is a strategy based upon existing market contacts and reliable blue chip contacts.  It is a strategy based upon, literally a whisper, which could be these days one based around social media between already well-known and reliable parties associated with a potential project about to be taken to market.
Networking
‘It is not what you know but who you know' – a phrase that has been used endlessly to describe the value of networking.
In marketing terms networking is very powerful and in some very practical ways plays an important role in the project marketing environment. While the high-end of the market can be a very fertile ground for networking it has many varied and surprising applications at almost every level of the market and will in future be a more fertile ground thanks to social media.
The notion is tied very much into the power of word-of-mouth or personal recommendation… ‘a word in the right ear can move mountains’. It has been suggested if you could go and talk personally to every potential consumer face to face you would have the ideal marketing tool.
In its modern form networking via social media and eMarketing is an everyday reality as both rely upon an idea being spread in a targeted way without the direct use of traditional media or at least within limitations as traditional media is still very relevant.
So powerful is networking the idea has kept pace with and even lead some aspects of today’s communications. Every time a consumer gives their email address to a supplier or any organization to receive online details of this or that product or service they are in fact agreeing to become part of a network.
The reason for the willingness is the expectation of getting in ahead of the wider community on some news, offer or deal that may be offered.
So networking can cover a wide spectrum of applications from a direct email, a tweet or telephone call to a well-placed friend or associate about an opportunity or through the use of a blog on a social network site to spread some good news.
However, before taking on any of the alternative ROI strategies we have discussed, one overriding fact remains the chief ingredient in any campaign: the need to pre-qualify any person who expresses interest in a project so that when the property is released and on the market the required sales result is secured.
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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The structure of a registrations-of-interest campaign will vary depending on the project

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I love reading reports that predict real estate movements.  You’ll hear it trotted out frequently that we’re at “such and such” stage of the “property clock” or property cycle.  Accordingly, over the past few days I’ve read that Brisbane is at <a target="_blank" href="https://bit.ly/ISw7Mq">five o'clock</a>, unless you own a unit that is, in which case you’re at <a target="_blank" href="https://bit.ly/ISxlY2">four o’clock</a> . Adelaide is also at <a target="_blank" href="https://bit.ly/ISw7Mq">five o’clock</a>, but Sydney on the other hand is languishing somewhere between <a target="_blank" href="https://bit.ly/ISyX41">‘3.30 and 5.30’</a> (depending on your “time zone”, no doubt,) and on it goes. 
I’m not averse to predicting property movements.  I’ve done it myself on numerous occasions.  There’s almost an irresistible urge in all of us to “foresee” the future like some modern day-prophet and to be fair, there are fundamental historical patterns that give good hints to the basic principles of timing a market. 
There’s a quirky joke that goes along the lines ‘If you want to tell God a joke, tell him your plans,’ and whether you’re a believer or not it makes the point aptly.
Just take a look at the tumultuous waters over the previous few years that led the majority of economists not only to miss the GFC and the pace of international recovery, but to follow this with continuous misinterpretations on either a rise or fall in the basic cash rate and subsequent strength of the housing market. 
As we’re continually told, on paper Australia has a strong economy, unemployment is low, we’re on the brink of a recourses boom, inflation is “under control”, there’s a shortage of homes, and the population’s growing.  On the surface, it’s the perfect formula for price rises.  However, it didn’t inspire purchasers to get out their wallets in 2011, as record low turnover in overall sales for a decade proved.  Like a snowball effect, as soon as something drops out of sync with a widely accepted formula, a fall in confidence hits the market and impacts predictions even further.
Second-guessing the RBA rate movement has become a popular sport on Twitter and various other media outlets.  Daily I have reports flying into my inbox regarding the most recent RBA rate call. Most are opinions, however a large number have already made predictions assuming a drop in rates for the next meeting.  It’s not based on anything specific, just an interpretation of “hints” contained in the latest minutes as if the decision has already been made – which clearly it hasn’t. 
Furthermore, as far as the home buying market is concerned, it now incurs little relevance – the banks call their own tune regardless of the RBA.  Therefore the auctioneers in Melbourne these past couple of weekends who shouted out in their auction preambles that we’ll soon experience a fall in rates to take us into an upward trajectory of the property cycle are either living in a box or under the impression that the buying market is. 
As for other predictions, it’s true Australia has a shortage of well-located homes where our rising population want and need to live, and it’s true the Australian market is fragmented, with some areas performing better than others as we move through various stages of the property cycle.  However, it’s also true that successive governments have played their part in creating a model of ownership designed to favour the investor and contribute to the shortage of affordable property for home buyers in the areas where most want to settle.
It’s called “negative gearing”, and it’s the proportion of seasoned investors who take advantage of this tax strategy who eagerly watch the property clock I cited above.  Investors make up roughly 35% of the buying market and many have climbed the equity ladder to own a substantial portfolio of property acquisitions.  Figures from the Australian Taxation Office suggest around 2 million Australians claim deductions for net rent, and figures from the RBA show around one-quarter of all household credit is there for the purpose of holding an investment property.  According to the ABS, the level of household debt over the last 18 years grew twice as fast as the value of household assets.  The ratio of household debt over this period has doubled from 9% to 19%. 
On top of this we now have a growing numbers taking advantage of changes in policy that allow investment property to be purchased as part of a self-managed super fund.  So attractive is this proposition that for those with the funds built up to support the strategy, purchasing an established residential property with a long-term trajectory in areas where – under current conditions – an increase in value is inevitable is – for all intense and purposes – a no brainer. 
Real estate industry professionals love investors.  The sales process is generally smoother with less emotional content involved, and the real estate agency often benefit from the rental management of the property, thereby creating a lasting relationship with their client’ and an ongoing income stream.  The majority therefore readily accept the policy.
I can cite all sorts of facts and figures to you regarding negative gearing and arguments for and against the strategy.  It was arguably introduced to increase the supply of housing for those unable or unwilling to buy.  Due to our changing lifestyles and the way we now live and move, most have need for a transitional period in rental accommodation at various points in their lives. Therefore investors make up an important part of the home-buying fabric.  It’s also argued that it reduces demand on public housing.  However, as I pointed out <a href="https://bit.ly/HM8ofY">last week</a>, due to rising prices sandwiching many out the market, demand for public housing is hardly reducing!
Then there are those who take you back to the Hawke/Keeting era during which negative gearing was to some extent “quarantined”.  The result was marginal at best, there was a dampening of investor enthusiasm and a small increase in rental yields in two states.  The changes didn’t stay around long enough to take us through this transitional period and enable effective judgment of the results. Stringent lobbying by the voting real estate fraternity and property investors ensured at first opportunity the policy was re-introduced.
At the time, there was overall fear that the market would crash, which obviously didn’t occur.  However, I have no doubt if the policy were removed, or even scaled down, there would be less demand for established stock and a subsequent dampening in prices.  No vendor enjoys the thought of their property falling in value, however isn’t this precisely what we need if we’re to allow new home buyers to gain a foothold?
Some argue that if housing were to fall in value, home buyers would be discouraged from purchasing fearing a loss on investment.  So embedded is this obsession with watching property prices rise and fall, we seem to have missed the point of why we need it in the first place. Although there’s no doubt, if prices were to stagnate for an extended period of time, or even deflate in value, some would delay a purchase hoping for further drops.  However, it would be a short-term transition.  It’s a natural human desire to own property once you reach a period of life where there’s a need to settle rather than sojourn. The desire for safety and security runs to the very roots of us all.
 
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In countries where property prices are suffering under the consequences of the GFC, residents would still rather own than rent if given the choice. However currently in the US and parts of Europe, many aren’t able to qualify for a home loan under present conditions and therefore don’t have the choice. Regardless of this, if the current model of negative gearing were scaled down, we’d still be a long way from having a surplus of homes, making it extremely unlikely we’d see a crash as some have presumed.
Eight years ago, the RBA cited negative gearing as one reason for growing un-affordability in the market place.  However, those advantaging from the policy have argued that this is somehow OK because we’re not the only country to employ negative gearing as a tax strategy.  As Saul Eslake (of the Grattan Institute) has <a href="https://bit.ly/HUUqTU">pointed out</a> on many an occasion – we may not be the only one, however our policy is at the front of the queue in terms of generosity.
The fact that a few other countries also employ similar incentives provides no realistic platform to argue in favour of the policy.  The real estate market in each country, and within the localities of each country, differs in terms of supply, demand, and affordability.  It’s impossible to compare one against another with a sweeping statement to justify a policy affecting the intrinsic needs of <country-region><place>Australia</place></country-region>’s buying market.  Australia is one of the least densely populated countries in the world in terms of head of population per square metre.  Much of our land is currently un-liveable, and yet we have a rate of population growth that beats even that of <country-region><place>Saudi Arabia</place></country-region>!  To top it off, we’re reportedly set to have a housing shortage of 35 million by 2050.  With fewer and fewer able to afford their own place of residence, the future looks anything but sunny for new home buyers.
The call from successive governments to first home buyers looking to get a foothold to go to the periphery of our cities, where housing is marginally cheaper simply because facilities are scarce and public transport is all but non-existent, is hopeless.  The primary reason new estates don’t turn over a reasonable proportion of sales outside of inflationary stimulus packages such as the first-home owners’ grant., isn’t because home buyers don’t like new homes.  It’s because the new areas give no promise of essential community facilities and are hampered with expensive development overlays intended to fund the “ever-promised” schools and public transport systems that seem to take some 20 years to implement. If you want buyers to move there, you’ve got to do more than just build an excess of roof space.
Furthermore, the level of high-rise developments intended to increase the supply of affordable accommodation in our cities are often poorly designed, provide a low-quality living space, and fall out the reach of most first home buyers due to stringent lending restrictions from banks, who see the purchase of this type of oversupplied accommodation a high risk acquisition.  Coupled with this, due to the high number of investors who buy into the new developments looking for a good yield, they don’t offer affordable rental accommodation (hence why so many sit vacant).
The reason why first-home buyers are buffeted out to the outer suburbs is because our models of investment – whether it be negative gearing, land banking, or borrowing to purchase in a self-managed super fund – are solely reliant on capital growth.  You don’t need a master’s degree to understand that the levels of capital growth we’ve been used to seeing in Australia are principally caused by decades of poor planning, which has ensured everyone is squashed around our capital cities for employment and reasonable access to good schools and other essentials such as a local GP and public transport.  For this reason, 93% of investor house and apartment purchases are in the highly sort after inner-suburban locations where most people need to live if they don’t want to face a life stuck in paddock land.
Let’s be realistic about this, it’s essential we encourage personal investment as a plan to support retirement.  Furthermore, there will always be a need for property investors to provide accommodation for those unable to purchase.   However to put policies in place to encourage this in the highly sought-after home buyer suburbs, at the expense of a growing number of people who have no hope of ever owning their own place of residence, does nothing to promote a fair and prosperous democratic nation for all.  It simply splits the population down the centre between those who have and those who have not.
Joe Hockey may want to reduce the country's expenditure on welfare; however under the current system of ownership, which tips the market in favour of the investor and out of reach of the first home buyer, there is little hope of doing so.
The reason we need a policy change isn’t just about reducing affordability in the inner suburbs, it is essential we start creating models of ownership to encourage investment in the outer suburban thresholds where new supply is dearly needed and communities need to grow. At the moment, if forced to locate into an outer suburban zone, until facilities are provided, most would rather rent than buy, at least until the level of population warrants substantial government and private investment to build the facilities to attract “settlers” not “sojourners”. Therefore investment in these areas is sorely needed – investment that does not rely on capital growth to prosper. 
Back in 2007 an article was posted on <a href="https://bit.ly/IIAJA1" target="_blank">Smart Company </a> predicting “within the next two years legislation will reduce the scope of negative gearing as a taxation benefit.”  Last year the Gillard government reportedly <a href="https://bit.ly/IIBEke" target="_blank">sounded out unions</a> opinions on scaling down the system.  It was also a key recommendation in the Henry Tax Review.  However to date, nothing has been done. 
I can’t help thinking back to a talk I attended where a Victorian state minister was lecturing on the state of our economy (I won’t mention names).  During the course of his speech, he revealed he had ownership of nine investment properties – the majority of which are negatively geared.  He’s no fool – he understands under the current system of investor ownership, property prices in the inner- and middle-ring suburbs prices will continue to inflate over the long term.  Therefore, debating with him – or others like him – for a change in policy will obviously inspire opposition. 
Considering we have growing numbers of investors (and voters) employing negative gearing above other investment strategies, there’s no security – should a change in policy be introduced – that it would last the course of the current or even subsequent governments.  However ethically speaking, for the sake of Australia’s growth, a change in policy (through either “quarantining” current rules or scrapping the system in stages) is a much-needed requirement. 
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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catherinecashmore-6LXia3pPQj

Negative gearing is unethical

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A number of developer and builder incentives aimed at encouraging the take-up of new houses and apartments will soon come to an end around the country.

The schemes range from grant top-ups to gift vouchers to cashback offers.
<img src="/images/stories/convesso4.jpg">
First to go will be Lend Lease’s luxury furniture and interior design offer for its <a target="_blank" href="https://www.convesso-convaco.com.au/">Convesso Concavo apartment project</a> (pictured above and below) in Melbourne’s Docklands, which expires on April 30.
<img src="/images/stories/convessooffer.jpg"> 
The developer is offering gift vouchers ranging in price from $15,000 to $60,000 depending on the type of apartment. Luxury harbourside apartments range in price from $465,000 to $3.15 million.
Up until May 13, Stockland is offering to <a target="_blank" href="https://stacksmore.stockland.com.au/">triple the $13,000 Victorian first-home bonus to $39,000 for first-home buyers in five of its residential communities</a>, taking the total incentive when the first-home owners’ grant is included to $46,000. The residential communities that qualify are Highlands, Mernda Villages, Eucalypt, Selandra Rise and Arbourlea.
Other incentives being offered by developers and builders include:
<ul>
<li>In WA <a target="_blank" href="https://happyhousewarming.com.au/">home builders Bluprint Homes and nuhomes in conjunction with St George Bank</a> are offering a $2,000 cashback for the first 25 home buyers who sign up to build a new home by June 23 with either building brands and take out a home loan with St George Bank. 
</li>
<li>Also in WA, the <a target="_blank" href="https://www.wahousingcentre.com.au/returnofthe21kgrant">WA Housing Centre is offering to triple the first-home owners’ grant</a> to $21,000 on some of its Perth residential communities 
</li>
<li>Also in WA <a target="_blank" href="https://www.dalealcock.com.au/32kbonus/">Dale Alcock homes is offering for a limited time a $32,000 bonus package</a> including ducted air-conditioning, wall painting and floor coverings 
</li>
<li>In Queensland, <a target="_blank" href="https://www.coralhomes.com.au/default.asp">Coral Homes</a> is offering a $22,000 discount on two-storey Eclipse homes and $15,000 off single-storey Eclipse homes as well as $81,400 worth of luxury inclusions as standard items.</li>
</ul>
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Time running out for incentives from builders and developers, with Convesso Concavo offer the next to expire

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Queenslanders buying or building a new home worth less than $600,000 have just one more week to take advantage of the Queensland government’s $10,000 building boost grant.

Ahead of the April 30 deadline, there has been no announcement from the <a href="https://www.propertyobserver.com.au/residential/queensland-government-to-extend-building-boost-until-april/2012011253029">Newman government about a second extension of the building boost</a>.

The deferred September 11 Queensland budget is expected to provide details of new home building incentives.

The building boost scheme kicked on August 1 last year with the aim of “igniting” new home construction in the state following the January 2010 floods.

The Bligh government had set aside $140 million for the scheme, but it has enjoyed a poor take-up with just 1,200 applications lodged as of December, equating to $12 million in handouts.

It was due to end on January 31 before being extended for a further three months on January 13.

Those buying or building a new home or buying off the plan must have entered into a contract by April 30 to receive the grant. 

Completed application forms are only required by September 1, 2012.

The building boost is one of a number of state and territory home buying and building incentives that will be phased out over the coming months and years.

<a href="https://www.propertyobserver.com.au/resources/government-property-grants-and-stamp-duty-concessions-the-expiry-dates-you-need-to-know/2012041054208">Four schemes are set to expire on June 30 and another two on July 1</a>, among them the Victorian government’s $13,000 first home bonus and its $6,500 regional relocation grant.
 
 
 
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Queenslanders have one week left to secure $10,000 building boost 

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Paperwork has been prepared for the sale of Eiger Chalet, consisting of 66 bedrooms and a 100-room restaurant at Perisher in the NSW ski fields, at a post-auction $2.2 million sale price.
<img src="/images/stories/eiger.jpg">
The new owner will reportedly be Lincoln Pike, a doctor who has worked at Casey Station in Antarctica, as well as the Perisher medical centre.
It will be the first time the ski lodge, along with its White Spider restaurant in Perisher, has been sold since its construction by its original owners and builders, the Fischer family. Established in 1961, Eiger Chalet sits 100 metres from the Perisher chairlifts and 250 metres from the Perisher ski tube terminal.
<img src="/images/stories/eiger2.jpg">
The property's lease with the National Parks and Wildlife Service runs until 2025, with the potential of a 30-year extension to 2055. It was briefly listed for sale back in 1989 with $3.5 million hopes.
It was auctioned by Ray White Hotels Australia agent Andrew Jolliffe. More than $2.5 million had been tipped for the 2,000-square-metre leasehold offering, given the recent sale of the nearby 70-bedroom St Moritz for $3.2 million.
<img src="/images/stories/eiger3.jpg">
The ski lodge is the subject of a recent commemorative book, Eiger Chalet Fifty Years: 1961-2011 by Gil Boehm.
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 Fischer family sells Eiger Chalet at Perisher after five decades of ownership: Title Tattle

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The Western Australian economy is performing so well it’s leaving the rest of the country behind, according to the latest CommSec report into the states’ economies, although it warns the Australian Capital Territory is at the highest risk from spending cuts in next week’s budget.
The quarterly report into the country’s state-based economies reveals some disturbing trends – the Queensland economy in particular is suffering due to a lack of support for housing, while Tasmania’s economy has experienced the “greatest slippage”.
However, the rest of the country is still performing well, with each state shining in different metrics.
The Western Australian economy is performing so well, CommSec economist Craig James says the country needs to be evaluated in two separate metrics – with Western Australia, and without.
“In the last two quarterly reports, we judged that Australia’s multi-speed economy could more accurately be described as a three-speed economy,” James says.
“But in the latest report the best way to describe the situation is Western Australia first and daylight second.”
Western Australia leads the way on economic growth, construction work, unemployment, retail trade and equipment investment – and second when it comes to population growth.
Dwelling starts and housing finance were the only black spots on WA’s record, out of the eight metrics used to judge each economy. ACT and Victoria were in the “second tier” of economies, with both out-performing housing indicators and Victoria positive on retail spending.
Queensland, New South Wales and South Australia are all in the next “tier”. Queensland is benefiting from restructuring work, while New South Wales is growing strong on population growth.
Tasmania has suffered the worst, lacking momentum in “key areas”, with the state now alongside the Northern Territory, which has strong retail spending but low population growth.
However, there are bright spots. Both Victoria and the ACT are winning when it comes to housing indicators, and Victoria’s retail spending remains high, and Queensland is still enjoying a significant amount of rebuilding work.
<h3>Western Australia</h3>
The state is leading the rest of the country in most metrics. Economic output was just over 32% higher than the state’s decade average, while it’s also taken the top ranking for retail trade with spending in the December quarter almost 21% above decade average levels.
It also remains “well above” other states and territories with equipment investment, and a strong jobless rate of 4%. Construction work is 82% above decade averages, although it’s second for population growth, at 2.63%.
It’s also equal third for housing finance, alongside New South Wales. Dwelling starts were also 15.2% below decade averages.
<h3>Victoria</h3>
Victoria’s jobless rate may be increasing, but its retail trade is 14% above decade averages. And
equipment investment was down by 3.2%.
However, construction activity is increasing, with the state in the second place for housing finance, and dwelling starts 14% above decade averages.
Victoria’s set to hold its spot in the top three despite that slowdown in the housing market, although CommSec says greater investment from public and private sectors could help it maintain momentum.
<h3>ACT</h3>
Economic growth in the ACT is up 18.2%, although retail trade is poor – below all other states. The jobless rate is 3.6%, although that’s actually 5% higher than the normal or decade-average level.
Housing finance commitments are actually strong, however, with the number 6.2% above the decade average, with commitments also 3.3% higher than a year ago. Dwelling starts are also “head and shoulders” above the rest of the states, based on strong population growth – one key area of hope.
<h3>New South Wales</h3>
New South Wales joins the ACT with the weakest retail trade in the country, and economic growth is also poor.
However, there are bright spots. The jobless rate of 5% is below the decade average of 5.3%, and housing finance is also equal third with Western Australia.
<h3>Queensland</h3>
Despite some of Queensland’s economic troubles the state is actually performing extremely well, with economic growth at the fastest rate in the country at 9.8% – even ahead of Western Australia.
Retail trade is also strong, although it comes under Victoria’s level of 14% above decade averages. Equipment investment is up 40%, the population growth is the highest recorded over the past year – although housing finance is down 22%.
Dwelling starts were also down 34.9% below decade averages, and starts in the December quarter were down 12.1% than a year ago – CommSec notes housing is the state’s biggest weakness.
<h3>South Australia</h3>
Retail trade remains strong, alongside Queensland after Victoria at the top, and the jobless rate is actually quite strong at 5.1% – 6.6% below the longer-term average of 5.45%.
However, South Australia remains one of two states where real wages were negative – along with the ACT. Retail spending is up, but only by 0.3%.
The state seems to be performing well with no major negative or positive factors, CommSec says, although that’s due to the relatively low unemployment.
<h3>Northern Territory</h3>
Economic growth has remained weakest in the Northern Territory, alongside New South Wales and Tasmania.
However, retail trade has remained high, in second place, due to low unemployment with just a 4% jobless rate. That’s 9.9% below the long-term average.
And while construction work is above the long-term average, it’s only up by just 0.6%. Engineering work – a driving force for several economies including Queensland and Western Australia – is down by 4.6%. However, CommSec expects that to improve.
Construction work hit a two-year high in the December quarter, and is actually up 43% from last year, which is the fastest rate in the country.
CommSec notes it has the potential to climb its way back up, with the $34 billion LNG Inpex project to have “enormous multiplier effects” on the economy.
<h3>Tasmania</h3>
The island state is performing poorly. Economic growth is the weakest, at negative 1.6%, while retail trade is also at the slowest in the country.
Equipment growth is strong, up 45%, although the jobless rate has risen from 5.1% to 7.2% in the space of just seven months – that’s 18% above the decade-average.
Construction spending is down 12.2% from last year, and population growth is up just 0.55%.
However, there is some good news, with dwelling starts and equipment investment suggesting higher growth in the pipeline.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
 
 
 
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