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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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A fundamental truism of economics is that if you tax something, you get less of it. Tax is thus a good place to start in seeking to explain why Australia’s housing market is chronically under-supplied, with adverse implications for housing affordability.
Many commentators have argued that housing is tax advantaged because of the principal residence exemption from capital gains tax. They see the exemption as a source of increased demand for housing and a negative influence on housing affordability rather than a boost to housing supply.
This leads to the incorrect conclusion that housing affordability could somehow be improved by abolishing the principal residence exemption and other tax concessions. For example, journalist George Megalogenis has written that “housing can only become more affordable if prices stop rising… It can only be done by making property less attractive than other investments, such as shares or superannuation… bricks-and-mortar should lose its taxpayer supports.”
The Henry Tax Review was commendable for rejecting the view that saving via owner-occupied housing should be taxed. The Henry Review favoured an expenditure tax benchmark that exempts the returns to saving from tax, including saving via housing. The final report’s recommendation that saving via owner-occupied housing remain tax-exempt was explicitly based on this benchmark. The final report also recommended that the returns to other forms of saving, including capital gains on other assets and net residential income and losses, should enjoy a 40% tax discount.
The Henry tax review made clear that the problem with Australia’s tax system is not that saving via housing is taxed too lightly, but that other forms of saving are taxed too heavily. The principal residence exemption from capital gains tax is in fact model tax policy based on an expenditure tax benchmark.
Henry’s suggested move to a 40% savings income discount is designed, among other things, to remove “the current bias towards negatively geared investment in rental property and shares.” However, this recommendation was made subject to the important proviso that supply-side constraints in the housing market need to be tackled first and that phase-in arrangements should apply to minimise disruption to the housing market.
The final report noted that “changing the taxation of investment properties could have an adverse impact in the short to medium term on the housing market… reducing net rental losses and capital gains tax concessions may in the short-term reduce residential property investment. In a market facing supply constraints, these reforms could place further pressure on the availability of affordable rental accommodation.”
The pre-occupation of many commentators with the principal residence exemption from capital gains tax and negative gearing has diverted attention from the fact that housing in Australia, far from being supported by the tax system, is in fact very heavily taxed. A recent report by private consultancy, the Centre for International Economics (CIE), “<a target="_blank" href="https://hia.com.au/media/Industry-policy/~/media/Files/documents/CIE%20Tax%20Report.ashx">Taxation of the Housing Sector in Australia</a>,” prepared for the Housing Industry Association, quantifies the tax burden and its adverse implications for housing affordability.
The tax burden on new housing includes direct taxes such as the goods and services tax, stamp duty, land tax and council rates, as well as a variety of indirect taxes on inputs into housing and hidden taxes that arise from the planning and approvals process. CIE estimate that these taxes account for 44% of the purchase price of a representative new home in Sydney or around $267,879. Most of the burden of these taxes falls on home buyers and not home builders because the demand side of the housing market is less price sensitive than the supply-side.
The tax burden on housing also accounts for much of the financing cost of a new home and thus the burden of mortgage debt and associated interest payments. The cost of financing the tax component of the price of a new house in Sydney is equivalent to 33% of the after-tax income of a young couple aged between 24 and 35 on average wages. The burden is even higher in the first year when stamp duty is paid, accounting for a staggering 72% of after-tax income.
Australia’s under-supplied housing market and housing affordability problem is largely due to the tax burden on housing. Abolishing the principal residence exemption from capital gains tax and negative gearing would only add to this tax burden and further reduce housing supply.
Substantial gains in the efficiency of the tax system and housing affordability could be achieved through the substitution of more efficient taxes such as the goods and services tax for inefficient taxes on residential property. CIE estimate that replacing taxes on housing with a broadening of the GST base could increase GDP by around 2% and increase residential construction by 14%, providing a much needed boost to housing supply.
The main obstacle to a reform of this type is the dependence of state and local governments on residential property taxes, accounting for around 40% of their total revenues. This points to the need for a federal-state compact on tax reform that finances the abolition of inefficient taxes on residential property through changes in the GST rate or base. State and federal governments unwilling to consider such a compact are not serious about addressing housing affordability.
The solution to Australia’s housing affordability problem is to build more and cheaper houses. This can only be achieved by easing the tax burden on housing and not through the abolition of existing tax concessions.
Dr Stephen Kirchener is a senior lecturer ineconomics at the University of Technology Sydney Business School and a Research Fellow at the Centre for Independent Studies. 
This article originally appeared on <a target="_blank" href="https://theconversation.edu.au/">The Conversation</a>.
 
 
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skirchener-WSVU77PjD8

How taxing housing diminishes affordability

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Industrial property is on the rise as more online businesses start searching for massive properties to hold inventory, along with a general improvement in market conditions, experts say.

This comes as a new report suggests online book retailer Amazon is searching the east coast for a suitable warehouse that could serve as an Australian base – it comes after several other reports have indicated the retail giant is opening a local warehouse.
Ben Hegerty, an associate director of industrial property at Savills, told SmartCompany this morning he’s “definitely” seeing some improvement in the market connected to eCommerce.
“You look at the reports of Amazon, Catch of the Day doing a big deal last year, and there are others as well.”
Catch of the Day moved into a massive new property last year in Melbourne, as it quickly grew out of its previous warehouse.
Recent research suggests the industrial market is ticking up after a lean few years. <a href="https://www.propertyobserver.com.au/industrial/low-industrial-vacancy-rate-in-melbourne-encouraging-speculative-developments-knight-frank/2012041754327" target="_blank">According to the latest Melbourne analysis by Knight Frank</a>, the amount of industrial space available for rent fell by 16% during the first quarter of the year.
Knight Frank said both prime and secondary buildings in “key locations” were leasing well.
Hegerty suggests at least some of the uptake has to do with the rise in the number of eCommerce stores searching for larger distribution centres.
“Even the cheaper importers such as Sonic, they’re in the market in a big way. It’s pretty simple, in that you have less manufacturing on shore. Goods have to come from somewhere to service a market, and they need to be stored.”
“We’ve seen that affect the market.”
Meanwhile, a new report suggests Amazon is taking more action to buy an Australian warehouse, with representatives travelling to the east coast to scout locations.
According to Fairfax, company officials will be visiting in the next few months to tour properties, or even sign up as a pre-committed tenant.
Amazon is one of the most popular online retail destinations for Australians, who browse to buy cheaper books, DVDs and other retail items. The company’s entry into Australia would allow it to operate a local warehouse, ensuring faster shipping times and lower costs.
It would also pose a threat to bricks and mortar business, as the company deals in a huge number of categories.
Hegerty says any move to Australia would “make sense”.
“They’re popular here… They could cut down on costs.”
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
 
 
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pmcstafford-pr9eMARWoN

Rise of online business giving industrial property a boost as Amazon eyes local market

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Following a raft of economic data that has come out recently I felt it was important to reflect on this data.  It is obvious that the Reserve Bank  is currently in a very tough predicament. While much of the data is proving to be quite negative and providing a clear case for interest rate cuts, every now and then other pieces of data highlight that perhaps things aren’t so bad.  Most notable of these data releases was the labour force data. Despite most economists expecting an increase to the unemployment rate, it remained at 5.2% and the participation rate actually increased.
As most people will know, official interest rates are currently sitting at 4.25%.  Now over the past 20 years, the cash rate has sat at an average of 5.15%, much higher than its current setting.  Although the cash rate is at above-average levels, standard variable mortgage rates are sitting at 7.4%, which is fairly close to the 20-year average level (7.35%).  In recent years the major banks have sought to de-couple mortgage rates from official interest rates.  As a result, we now have a situation where the official cash rate is almost 100 basis points below the long-term average however; mortgage rates are sitting at average levels.  As a result, the amount by which the RBA is able to influence repayments on our largest asset class (housing) has been lessened over recent years.
Click to enlarge
<a href="/images/stories/rpapril181.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpapril181thumb.gif"></a>
Looking at the RBA website, its official role is detailed at this <a href="https://www.rba.gov.au/about-rba/our-role">link</a>.  A lot of the data suggests that we are pretty close to full employment and that we still enjoy economic prosperity and welfare.  However, many would argue that the current high currency is providing instability. In its agreement with federal government the RBA is also charged with keeping inflation between 2% and 3% over the economic cycle.
 Click to enlarge
<a href="/images/stories/rpapril181.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpapril181thumb.gif"></a>
So looking at inflation and keeping in mind new data will be out later this month, headline inflation is currently recorded at an annual rate of 3%.  The RBA’s preferred measures of ‘underlying inflation’, the trimmed mean and weighted median are both well within the target range, recorded at 2.6%.  The most recent data available shows that headline inflation is at the top end of the target range (but it is falling) and underlying inflation is right around the middle of the band. 
Obviously the RBA is concerned about inflation and with good reason.  Glenn Stevens was made governor of the RBA in September 2006 and since December 2006, headline inflation has been recorded at an average of 3%, right at the top of the target band.  More concerning is the fact that the RBA’s preferred measures have been recorded at an average of 3.2% (trimmed mean) and 3.5% (weighted median).  Given this, it is no real wonder that the RBA decided not to cut interest rates this month. The RBA’s track record of hitting their inflation target has not been strong, and it wants to be as sure as possible before making any decision.
As I see it, it is fairly clear cut that another interest rate cut is required to help the economy, particularly if you take just a quick look at some of the recent negative economic data releases:
<ol>
<li>GDP – Australia’s economy continues to grow however, it is growing below the long-term trend</li>
<li>Property values – despite a stabilization over the first quarter of 2012, they are down -4.4% over the year</li>
<li>Consumer sentiment – the index continues to fall with pessimism outweighing optimism and the index is -10.2% lower than at the same time last year.</li>
<li>Business conditions – improving but still not particularly strong</li>
<li>Building approvals – continue to weaken and are -15.2% lower than they were at the same time last year</li>
<li>Housing finance data:<ol>
<li>When refinances are removed the value of finance commitments has risen by just 1.7% over the past year</li>
<li>The number of non-refinance commitments remains at low levels and has increased by just 3.6% over the year</li>
<li>Retail trade – remains quite sluggish having increased by just 2.0% over the past year</li>
<li>Growth in demand for credit by the private sector remains benign:<ol>
<li>Total credit has risen by just 3.5% over the past year</li>
<li>Housing credit has risen at an historic low rate of 5.3% over the year</li>
</ol>
</li>
</ol>
</li>
</ol>
Of course, times have changed in the Australian economy; consumers are saving again and credit isn’t as freely available as it used to be.  Although the Australian economy hasn’t entered into a recession it certainly seems that our mind set has changed and we are at least trying to be less reliant on borrowed money.  What that is likely to mean is that property values, building approvals, housing finance, retail trade and credit demand will grow at levels lower than those we have become accustomed to.  In saying this, just because the consumer mindset has changed it doesn’t mean we have to have a recession.
In my mind, we will see an interest rate cut next month as long as inflation is within the target range.  However, I don’t envy the RBA’s position, although a lot of the economic data looks bad they have been caught out before.  The significant growth in the mining sector is boosting the overall economy, the unfortunate thing being that most of us aren’t reaping these benefits.  Factors such as falling property values and lower levels of construction feed back in to consumers showing less inclination to spend which in-turn feeds back in to lower levels of consumer and business sentiment.  If we aren’t careful it could also lead to higher levels of unemployment and lower levels of economic growth or even a recession.
Let me know what you think. Was the RBA right to leave interest rates on hold and do you think it will do so again next month?
Cameron Kusher is senior research analyst at<a target="_blank" href="https://www.rpdata.com.au/"> RP Data</a>.
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ckusher-ujnxiKuFQs

The RBA is in a real bind on interest rate movements: RP Data's Cameron Kusher

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SQM Research managing director Louis Christopher has suggested the RBA has been misreading recent house price direction.
The claim comes after the Reserve Bank minutes from its April board meeting note that house prices had shown some signs of stabilising, with auction clearance rates in Sydney and Melbourne having picked up.
Christopher told Australian Broker Online that he was "deeply concerned" by the RBA's conclusions.
"Let me tell you now, house prices have not stabilised,” Christopher said.
“In many parts of the country, they are still falling. And auction clearance rates are weaker than recorded this time last year," he said.
Christopher said a recent uplift in clearance rates was seasonal.
"The RBA should typically know this, and yet are still suggesting that there is stabilisation in the market. Well, not for Melbourne, and not for Sydney, and not for Canberra, and not for Hobart, and there are still some question marks on Brisbane and there are still no signs of the Gold Coast or Sunshine Coast coming out of their property crash," he said.
Perth and Darwin, Christopher suggested, are the only cities to have experienced a "genuine bottoming out".
The RBA's April minutes followed very similiar acknowledgments in both its February and March announcements that it was of the view that housing prices had shown some signs of stabilising at the end of 2011, after having declined for most of 2011.
Tim Lawless, RP Data national research director, says at a macro level, housing market conditions have moved towards stability.
"And in fact, over the March quarter dwelling values showed absolutely no movement, which was the strongest result in a year.
"There are specific markets that do remain soft, however in most of these locations we have seen the rate of decline improving. 

"Our key vendor metrics are also showing some improvement with selling time and vendor discounting levels both showing an improving trend," Lawless notes.
 
 
 
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jchancellor-FAypfDUnLy

RBA misreading recent house price direction: SQM Research director Louis Christopher

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Westfield Group has sold eight shopping centres in the United States for $US1.54 billion ($1.49 billion).
A majority interest in seven of the centres were sold to Starwood Captial Group, which will manage and control the centres, with Westfield retaining a 10%  stake.
The eighth property, Eastland in California, was sold in a separate transaction for $US147 million.
The Westfield announcement said the transaction values were “approximately equal with the current book value”.
Proceeds will be used to pay down debt, then reinvested in the US, <a href="https://www.propertyobserver.com.au/news/westfield-to-sign-deal-at-rebuilt-world-trade-center/2011072850959" target="_blank">including in the World Trade Center in New York</a>, Westfield says.
Westfield Group announced at its annual results in February that it would sell assets in the US and Britain and launch a $2 billion share buyback.
The divestments are expected to have an annualised dilutionary impact to the group’s funds from operations of about 2¢ per security, prior to the redeployment of capital and the impact of any buy-back of WDC securities.
The group’s forecast distribution for the 2012 year of 49.5¢ per security remains unchanged.
 
 
 
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Westfield sells eight US shopping centres for US$1.54 billion

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Peppers Guest House – the Hunter Valley retreat – has been listed for sale.
Set on 16 hectares of landscaped grounds in Pokolbin, the retreat has 47 guest rooms with a nightly rate of $350 and a four-bedroom homestead, which has a rack rate of $1,400 a night.
All of the luxuries associated with the five-star operation are on-site, including the Endota day spa and the Sanctuary Restaurant.
Sydney-based investors Matt Williams and Paul O’Rourke, through holding company Mattrow Pty Ltd, bought the property in 2007, which was part of a package that included the nearby Peppers Convent.
The partnership, which also holds the lease over Pokolbin’s Mercure resort on Broke Road, sold the Convent to Ken Cowley in 2010. However, it is understood the investors will retain the Mercure lease.
Peppers Guest House was a created in 1984 by power couple Mike and Suzi O’Connor, who set out to establish a venue dedicated to fine food and wine at a time when sophisticated weekend breaks were a new concept. The venture was to become the first property in the Peppers Group, which now has 28 upscale resorts throughout Australia and New Zealand. The brand is now part of the Surfers Paradise-based Mantra Group, which takes a strong management role in its more recently acquired properties. Millionaires Mike and Suzi O’Connor are no longer involved in the business.
CBRE Hotel selling agent Rob Cross says the demand for mid-range investment property is healthy in the Hunter Valley.
“Investments priced between $5 and $20 million attract high-net-worth locals in The Hunter as well as a few emotional buyers,” he says.
Expressions of interest for the property, which is being offered with Peppers management in place, close on May 31.
 
 
 
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andreadixon-oif3j7eKne

Peppers Guest House Hunter Valley at Pokolbin listed for sale

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A three-bedroom Bronte house that fetched $2.39 million was the most expensive sale this week, according to RP Data. The 2003 Tipper Avenue house is 50 metres from the beach and was sold by Goodyer Donnelley agent Alexander Phillips on April 13. The adjoining Tipper Avenue house fetched $2.45 million in 2008, also through Phillips.
New South Wales accounted for eight of the 10 most expensive sales of the week, according to RP Data. A two-bedroom Broadbeach unit was the most expensive sale outside of the state. The Queensland unit sold for $1.75 million, coming in at number six on the list. 
It just pipped a four-bedrom Fairfield house that sold for $1.71 million and ranked as the seventh most expensive sale of the week. 
 
1. 23 TIPPER AVENUE, BRONTE, NSW, 2024, three-bedroom house, sold on April 13 by Goodyer Donnelley Real Estate for $2.39 million
2. 80 GORDON STREET, PADDINGTON, NSW, 2021, four-bedroom house, sold at auction on April 13 by Goodyer Donnelley Real Estate for $2,125,000
3. 25 EDMUND STREET, QUEENS PARK, NSW, 2022, four-bedroom house, sold on April 11 by Belle Property Bondi Junction for $2.1 million
4. 72 TRAFALGAR STREET, ANNANDALE, NSW, 2038, four-bedroom house, sold at auction on April 14 by Belle Property Annandale for $2.05 million
5. 1 MCBURNEY STREET, NAREMBURN, NSW, 2065, four-bedroom house, sold at auction on April 12 by McGrath Estate Agents for $2 million
6. 4/5 BROADBEACH BOULEVARD, BROADBEACH, QUEENSLAND, 4218, two-bedroom unit, sold at auction by Del La Parker Executive Realtors for $1.75 million
7. 47 PARK CRESCENT, FAIRFIELD, VICTORIA, 3078, four-bedroom house, sold at auction on April 14 by Collins Simms Real Estate for $1.71 million
8. 6 CLEVEDON ROAD, HURSTVILLE, NSW, 2220, five-bedroom house, sold on April 10 by CoStar Real Estate Hurstville for $1.65 million
9, 1005/21 ELIZABETH BAY ROAD, ELIZABETH BAY, NSW, 2011, two-bedroom unit, sold on April 12 by Richardson &amp; Wrench Elizabeth Bay/Potts Point for $1.65 million
10. 35B SPENCER ST ROSE BAY, NSW, 2029, three-bedroom house, sold at auction on April 10 by Richardson &amp; Wrench Bondi Junction/Bondi Beach for $1,587,000
 
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NSW represents eight of the top 10 sales of the week, with Bronte leading the way: RP Data

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John Symond of Aussie Home Loans has given tentative support to the proposed scheme that would allow first-home buyers to pay off their stamp duty over three years rather than in one upfront lump sum.
The Real Estate Institute of NSW (REINSW) <a href="https://www.propertyobserver.com.au/tax/pay-as-you-go-stamp-duty-scheme-needed-for-first-home-buyers-reinsw/2012041654290" target="_blank">is urging the state government to allow first-home buyers to gradually pay off their stamp duty</a>.
But Symond says while the proposed scheme looked good on paper that young first-home buyers needed to vigilantly do their sums.
"I think you've got to be careful. Young, inexperienced buyers can easily get over their heads," he told News Limited.
"Australians have traditionally been better borrowers than savers. If first-home buyers have the possibility to repay it in time then great, but I wouldn't like to see it impede young people ... by just deferring the inevitable."
Australian Mortgage Options founder Robert Projeski<a href="https://www.propertyobserver.com.au/tax/stamp-duty-lay-by-scheme-could-help-first-time-buyers-get-into-the-market-robert-projeski/2012041754322" target="_blank"> has also backed the proposal</a>.
 
 
 
 
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John Symond tentatively backs REINSW stamp duty deferral proposal for first-home buyers

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Almost half of the 95 apartments in Abacus Property Group’s new Brighton development, 380 degrees, have sold since the project launched in February.
The $110 million development at 380 Bay Street will comprise five levels and is designed to appeal to buyers seeking luxurious, low-maintenance living options in the affluent suburb.
“With apartment living growing exponentially in recent years, 380 Degrees has been carefully designed to capture the epitome of contemporary Australian living,” says Abacus Property Group associate director John Bush.
He says the development appeals to “a broad range of buyers, including empty nesters, investors, corporate high flyers and first-home buyers”.
<img src="/images/stories/380degrees1.jpg">
About 40 of the apartments have been sold to date. Construction commenced in March this year and is set to be finished in late 2013.
There will be 42 one-bedroom apartments, which will range in size from 55 to 75 square metres and from $460,000 to $600,000. Of these, 31 will include a multipurpose room/study, and these start from $545,000. The 40 two-bedroom offerings will be between 80 and 117 square metres internally and will range between $639,000 and $995,000 in price. There will be 13 three-bedroom units of between 102 and 125 square metres, priced between $1.11 million and $1.27 million.
According to RP Data, 20% of the dwelling stock in <a href="Almost%20half%20of%20the%2095%20apartments%20in%20Abacus%20Property%20Group%E2%80%99s%20new%20Brighton%20development,%20380%20degrees,%20have%20sold%20since%20the%20project%20launched%20in%20February.%20The%20%24110%20million%20development%20at%20380%20Bay%20Street%20will%20comprise%20five%20levels%20and%20is%20designed%20to%20appeal%20to%20buyers%20seeking%20luxurious,%20low-maintenance%20living%20options%20in%20the%20affluent%20suburb.%20%E2%80%9CWith%20apartment%20living%20growing%20exponentially%20in%20recent%20years,%20380%20Degrees%20has%20been%20carefully%20designed%20to%20capture%20the%20epitome%20of%20contemporary%20Australian%20living,%E2%80%9D%20says%20Abacus%20Property%20Group%20associate%20director%20John%20Bush.%20He%20says%20the%20development%20appeals%20to%20%E2%80%9Ca%20broad%20range%20of%20buyers,%20including%20empty%20nesters,%20investors,%20corporate%20high%20flyers%20and%20first-home%20buyers%E2%80%9D.%20About%2040%20of%20the%20apartments%20have%20been%20sold%20to%20date.%20Construction%20commenced%20in%20March%20this%20year%20and%20is%20set%20to%20be%20finished%20in%20late%202013.%20There%20will%20be%2042%20one-bedroom%20apartments,%20which%20will%20range%20in%20size%20from%2055%20to%2075%20square%20metres%20and%20from%20%24460,000%20to%20%24600,000.%20Of%20these,%2031%20will%20include%20a%20multipurpose%20room/study,%20and%20these%20start%20from%20%24545,000.%20The%2040%20two-bedroom%20offerings%20will%20be%20between%2080%20and%20117%20square%20metres%20internally%20and%20will%20range%20between%20%24639,000%20and%20%24995,000%20in%20price.%20There%20will%20be%2013%20three-bedroom%20units%20of%20between%20102%20and%20125%20square%20metres,%20priced%20between%20%241.11%20million%20and%20%241.27%20million.%20According%20to%20RP%20Data,%2019.7%%20of%20the%20dwelling%20stock%20in%20Brighton%20comprises%20units,%20with%20about%2060%%20detached%20houses.%20The%20median%20unit%20price%20in%20Brighton%20fell%204.8%%20last%20year.%20Architecture%20firm%20Rothelowman%20is%20behind%20the%20striking%20design.%20%E2%80%9C380%20Degrees%20will%20be%20an%20excellent%20addition%20to%20the%20area.%20The%20building%E2%80%99s%20fa%C3%A7ade%20will%20feature%20perforated%20metal%20sliding%20panels%20to%20create%20a%20stylish%20winter%20garden%20effect,%E2%80%9D%20says%20Interiors%20Rothelowman%20associate%20Clementine%20Inglis.%20%20%E2%80%9CSpacious%20balconies%20and%20terraces%20have%20been%20designed%20to%20capture%20indoor%20and%20outdoor%20living,%20whilst%20creating%20a%20sense%20of%20sanctuary%20and%20privacy,%20which%20is%20perfect%20for%20entertaining%20and%20escaping.%20Each%20apartment%E2%80%99s%20interior%20will%20reflect%20minimalist%20style%20with%20a%20sophisticated%20fit%20out%20%E2%80%93%20wide%20floorboards%20and%20modern%20cabinetry%20to%20polished%20fittings%20and%20flush%20surfaces%20throughout%20help%20ensure%20a%20prevailing%20sense%20of%20openness,%20the%20perfect%20elements%20to%20create%20a%20home%20and%20a%20lifestyle.%E2%80%9D" target="_blank">Brighton </a>comprises units, with about 60% detached houses. The median unit price in Brighton fell 4.8% last year.
<img src="/images/stories/380degrees2.jpg">
Architecture firm Rothelowman is behind the striking design.
“380 Degrees will be an excellent addition to the area. The building’s façade will feature perforated metal sliding panels to create a stylish winter garden effect,” says Interiors Rothelowman associate Clementine Inglis.
<img src="/images/stories/380degrees3.jpg">
“Spacious balconies and terraces have been designed to capture indoor and outdoor living, whilst creating a sense of sanctuary and privacy, which is perfect for entertaining and escaping. Each apartment’s interior will reflect minimalist style with a sophisticated fit out – wide floorboards and modern cabinetry to polished fittings and flush surfaces throughout help ensure a prevailing sense of openness, the perfect elements to create a home and a lifestyle.”
 
 
 
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Brighton development 380 Degrees about half-sold two months after launch

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Strong uptake of industrial space in Melbourne is encouraging more speculative projects in the western and south-eastern parts of the market, according to the latest Melbourne industrial market analysis by Knight Frank.
During the first three months of 2012 the amount of industrial space available for rent in the city fell by nearly 60,000 square metres (16%) to 298,000 square metres, a new low for total available space since Knight Frank began compiling data on the market in April 2009.
A year ago there was about 530,000 square metres of industrial space available for rent across the city, equating to a drop of 47%.
Knight Frank notes that take-up was stronger in the first quarter of 2012 after slowing in the fourth quarter of 2011.
All regions monitored experienced a drop in available space as take-up continues to outstrip supply. While available space has steadily diminished, market asking rentals have only begun to respond to the tighter market, with modest increases in the second half of 2011.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/knightfrankapril18.gif"><img src="/images/stories/knightfrankapril18thumb.gif"></a>
Rents average around $72 per square metre, with the CBD fringe (essentially Port Melbourne) the most expensive at $95 per square metre and the north (suburbs like Preston, Broadmeadows, Epping and Tullamarine on the north-eastern side of the Calder Freeway) the cheapest market at $66 per square metre.
There was just under 17,000 square metres of speculative development completed over the first three months of the year with another 23,000 square metres currently under construction.
Big property developers like Australand and Dexus are aggressively targeting the West and South East with new speculative developments in the pipeline.
The west comprises industrial areas on the southern side of the Calder Freeway including Altona, Laverton, Sunshine, Derrimut, Brooklyn, Ravenhall and Deer Park.
The south east comprises industrial space in Moorabbin, Springvale, Braeside, Dandenong South, Hallam, Lyndhurst, Carrum Downs, Cranbourne and Pakenham.
Dexus is currently building a 15,600 square metre office warehouse within its industrial estate at 25 Distribution Drive, Laverton North in Melbourne’s west, despite this precinct has the greatest level of available industrial space at April 2012, 60% of which is prime accommodation.
Another speculative development by Australand – a 10,000-square-metre warehouse – has been completed, in Truganina, also in the west precinct.
According to Knight Frank there is only 112,000 square metres of available space in the west of Melbourne, down from 252,000 over the past 12 months, the biggest drop of all industrial precincts over this period.
Over the quarter, 31,000 square metres of space was snapped up in the North, making it the most active leasing market for 2012 to date.
James Templeton, joint managing director of industrial at Knight Frank, say the <city><place>Melbourne</place></city> industrial market is experiencing record low vacancy across all sectors.
“Both prime and secondary buildings in key locations are leasing well,” he says.
According to Templeton, plans by Australand and Dexus to expand in the western and south-eastern market will be assisted by improved levels of enquiry, with a number of major retailers now looking at pre-leasing.
“There is also increased activity in the land and building package area, with a number of owner-occupiers taking advantage of the competitive deals being offered,” he adds.
 
 
 
 
 
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