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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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House prices are expected to bottom out later in the year and then starting rising modestly from 2013 led by Western Australia, the latest NAB quarterly residential property market survey has forecast.
National house prices fell 1.3% in the first three months of the year, following a fall of 2% in the 2011 December quarter and a 2.4% decline in the September 2011 quarter, according to the survey of about 300 property market participants, including real estate agents and property developers. 
Those surveyed are forecasting a further 0.2% decline over the next 12 months and then 1.6% growth in 2013 and 2014. 
Western Australia is the “standout for price growth” over the next 12 months, with a 1.3% rise expected. NAB is most pessimistic about Victoria, with house prices forecast to fall 1.5% over the same period.
NSW house prices are expected to remain flat with growth of just 0.4%, and small declines are forecast for SA/NT (-0.6%) and Queensland (-0.2%).
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Over the March quarter stronger outcomes were recorded in all states bar NSW, where house prices fell by 0.4% following a 0.3% decline in the December 2011 quarter. 
Despite the drop, NSW was the second best performing market over the March quarter after WA, where prices fell 0.1% following a 1.4% decline in the previous quarter. 
Prices were significantly weaker in Queensland (-2.4%), SA/NT (-1.9%) and Victoria (-1.8%). 
The national rental market showed little growth over the quarter, with house rents rising 1.1%. It is expected to pick up by 2.9% over the next year and 4.3% over next two years.
There was a wide divergence in rental market performance, with a notable softening in rental markets in SA/NT and a “big turnaround in the rental story in Victoria”.
“With slower population growth and higher construction rates contributing to rising residential vacancy rates in metropolitan Melbourne, Victorian rents fell -0.2% in the first quarter of 2012, compared with a 0.4% increase in the previous quarter. In contrast, rental growth was strongest in WA (2.6%) and NSW (2.2%),” says the report.
National rental growth expectations over the next year softened to 2.9% from a forecast of 3.2%, with growth of 4.3% forecast (previously 4.6%) over next two years. NAB expects rental returns to continue to be strongest in NSW and WA.
While the outlook for rents in WA (4.5%) and Queensland (2.4%) was broadly unchanged, expectations softened in SA/NT (2.6% from 3.7% previously), Victoria (1.5% from 1.8% previously) and in NSW (3.8% from 4.5% previously). 
Expectations softened in all states bar Victoria (2.9% from 2.8% previously), but it remains the weakest state for rental growth overall. Rental expectations over the next two years remain strongest in WA (5.7%), NSW (5.2%) and SA/NT (5%).
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Positive rents and falling home values will continue to support rental yield growth, says NAB. 
The other key findings of the report were:
<ul>
<li>First-home buyers and resident investors less active in the market for new property, but overseas buyer activity increases. Demand for new property still strongest for inner-city houses and low-rise apartments/townhouses. </li>
</ul>
<ul>
<li>Tight credit conditions and housing affordability cited as the most “significant” constraints on new housing development. Lack of development sites and construction costs becoming problematic, especially in WA. </li>
</ul>
<ul>
<li>Overall demand for existing property improved slightly. Houses still the most preferred type of property, especially in the inner city. Low- and high-rise middle-ring apartments/townhouses are the least preferred option for existing property buyers. </li>
</ul>
<ul>
<li>Capital growth expectations remain strongest for existing property in the sub-$500,000 price range. Outlook for premium property remains “poor”. </li>
</ul>
<ul>
<li>Access to credit still viewed as the biggest impediment to purchasing existing property but the level of concern is being slowly pared back. Employment security has emerged as the next biggest concern, with Victoria the most pessimistic state.</li>
</ul>
 
 
 
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lschlesinger-FZcF9M3vE6

House prices to bottom out in 2012 and start rising from 2013: NAB

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Now that we’re a quarter of the way through the year and our property markets have had a chance to show their hand, it’s probably a good time to do a whip around Australia and see how property is performing.

<a target="_blank" href="https://www.rpdata.com/">RP Data</a> has reported their March quarter house price index results and the findings were encouraging.
Once again, the latest stats will disappoint the doomsayers who frequent the property forums and for the last four years have been predicting an apocalypse.
What the stats show
Overall Australian dwelling values were unchanged across the eight capital cities over the first three months of this year. In fact, RP Data-Rismark’s hedonic index data suggests that Australian dwelling values have not budged at all since the end of October 2011.
The tide is turning
Of course, there is not one property market in Australia, so while the market is flat in general there are markets within markets, each pulled by a multitude of influences and, as a result, sectors within sectors are performing at differing speeds.
<table style="width: 432px;" border="1" cellpadding="0" cellspacing="0"><tbody>
<tr>
<td valign="top" width="140">
City
</td>
<td colspan="2" valign="top" width="293">
Index results as at March 31, 2012
</td>
</tr>
<tr>
<td valign="top" width="140">
 
</td>
<td valign="top" width="151">
Median dwelling price 
</td>
<td valign="top" width="142">
Change in dwelling values March 2012 qtr
</td>
</tr>
<tr>
<td valign="top" width="140">
Sydney
</td>
<td valign="top" width="151">
$525,000
</td>
<td valign="top" width="142">
1.1%
</td>
</tr>
<tr>
<td valign="top" width="140">
Melbourne
</td>
<td valign="top" width="151">
$465,000
</td>
<td valign="top" width="142">
-0.8%
</td>
</tr>
<tr>
<td valign="top" width="140">
Brisbane
</td>
<td valign="top" width="151">
$400,000
</td>
<td valign="top" width="142">
-0.4%
</td>
</tr>
<tr>
<td valign="top" width="140">
Adelaide
</td>
<td valign="top" width="151">
$370,000
</td>
<td valign="top" width="142">
-1.5%
</td>
</tr>
<tr>
<td valign="top" width="140">
Perth
</td>
<td valign="top" width="151">
$445,000
</td>
<td valign="top" width="142">
-0.7%
</td>
</tr>
<tr>
<td valign="top" width="140">
Hobart
</td>
<td valign="top" width="151">
$340,000
</td>
<td valign="top" width="142">
7.3%
</td>
</tr>
<tr>
<td valign="top" width="140">
Darwin
</td>
<td valign="top" width="151">
$470,000
</td>
<td valign="top" width="142">
3.9%
</td>
</tr>
<tr>
<td valign="top" width="140">
Canberra
</td>
<td valign="top" width="151">
$529,975
</td>
<td valign="top" width="142">
0.0%
</td>
</tr>
<tr>
<td valign="top" width="140">
Capital city aggregate
</td>
<td valign="top" width="151">
$445,000
</td>
<td valign="top" width="142">
0.0%
</td>
</tr>
</tbody></table>
Source: RP Data
Clearly our property markets have slumped over the last 12 months, as the following table shows, but the latest results suggest we are now in the consolidation phase of the property cycle.
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Apartments outperformed houses
Units outperformed houses in Australia’s major capital cities by a wide margin during March. Capital city apartment prices increased by 0.9% during the month to a median of $400,000, while detached house prices increased by just 0.1% to a median of $464,500.
Let’s now look at some of our major property markets in a little more detail.
Sydney 
Sydney has been outperforming the rest of Australia, but the top end of the market is still suffering from an oversupply of property relative to the reduced demand.  However, affordable gentrified suburbs within close proximity to the city, transport, amenities and infrastructure are performing well. 
In particular, well located apartments in the inner western suburbs and Sydney’s eastern suburbs are being snapped up by investors and owner-occupiers at hotly contested auctions according to George Raptis, director of <a href="https://www.sydneybuyersagent.com.au/" target="_blank">Metropole Property Strategists in Sydney</a>. 
“I’d like some of the property doomsayers to come to one of these auctions and see how many genuine bidders are in the market for the small selection of good properties for sale,” says Raptis. 
“The market for well-located apartments is likely to remain strong throughout the year. Strong rental demand, a shortage of rental properties, tightening vacancies and rising rents means investors will vie for the same apartments as owner-occupiers, underpinning prices.” 
Melbourne 
Different segments of the Melbourne housing market are at different stages of the property cycle. 
There is still an oversupply of property at the top end relative to the reduced demand for luxury property. While there is more competition for properties in the middle end of the market, there is still an oversupply of properties relative to demand, even though recent auction clearance rates have been encouraging. 
Currently there are some good investment opportunities buying established apartments in Melbourne’s southern or eastern suburbs and adding value through renovations. 
But there are some segments of the Melbourne property market to avoid. 
According to Charles Marvelli, head of the <a href="https://www.melbournebuyersagent.com.au/">Melbourne buyer’s agency</a> division of Metropole Property Strategists, “Builders and developers have got ahead of themselves, and there is an oversupply of newly built house-and-land packages in Melbourne’s outer western suburbs such as Point Cook and Melton. Currently there is a flood of new properties, but buyers are showing a preference for two- to three-year-old homes which can be bought considerably cheaper than new stock.” 
“There is also an oversupply of inner-city CBD apartments, with more being completed in the next few years at a time when there is less demand from the tenant demographic that rents in the CBD,” adds Marvelli. 
“This will put downward pressure on prices and rentals. I expect there will be an oversupply of inner-CBD and near-CBD apartments in Melbourne for a few years, causing prices to fall slightly” he says. 
Brisbane
 
House prices in Brisbane have dropped for the last two years and are now 11% below their peak, but there are tentative signs of improvement in this market. 
However, Brisbane buyers are lacking the necessary confidence to re-enter the market, instead sitting on the sidelines waiting for signs that real estate has bottomed before they make a purchase. 
Vacancy rates have fallen to 2.2% in December 2011 from 3.7% 15 months earlier, suggesting that the market is working through an overhang in supply, and there is evidence that investors as well as owner-occupiers are slowly returning to the market. 
The prestige end of the Brisbane housing market is suffering, but more affordable homes within five to 10km of the CBD are likely to perform well when the upswing eventually takes place. 
One area of opportunity is the established apartment market around Auchenflower and Toowong, where you can find 1970s and 1980s apartments with good size rooms, close to amenities and within a brisk stroll to the CBD. 
Increasing confidence with a new state government and an upswing in economic conditions, along with improved affordability, suggest that prices should stabilize over the next six months before starting to edge upwards. 
However, there are a large number of off-the-plan apartments available in the Brisbane CBD and surrounding suburbs. Many of these remain unsold, and this oversupply of properties will put downward pressure on prices and rentals in these suburbs. 
Many of the apartments that have been sold off the plan are coming on stream in the next few years and have been purchased by investors. Some will have difficulty getting finance and settling their purchase. Others will be disappointed to see the end value of their properties is less than the original purchase price. 
Adelaide
 
The Adelaide property market has been flat for some time now. Prices fell a further 1.5% over the last three months and are likely to correct a little more before the market bottoms. 
<a href="https://www.anz.com.au/" target="_blank">ANZ Bank</a> reports that, “While the SA housing market should remain subdued through the first half of 2012, the economic benefits from a number of large non-residential building redevelopments in Adelaide (Royal Adelaide Hospital, Adelaide Convention Centre and Adelaide Oval) and a positive outlook for regions benefitting from major mining and energy projects (including the proposed Clinton and Arckaringa Basin coal-to-liquid gas project and Olympic Dam) should drive an improved outlook into 2013. We expect rental vacancies will grind lower through 2012 and 2013, while house prices should trough around mid-2012.” 
Perth
 
While the WA economy continues to benefit from our resources boom, the Perth property market is still suffering a hangover from its pre-GFC boom. 
In the three years leading up to the 2008 peak in house prices, WA house prices increased 20% per annum on average, compared to a national average of 6% per annum. Since then, investors and homeowners have deserted the Perth residential property market, prices have fallen and are currently 8.2% below their March 2008 peak. 
However, there are signs of optimism creeping back and some areas of the Perth market are likely to turn around later this year or in 2013. 
What next?
We’re entering the stabilization phase of the property cycle, where buyers are returning and slowly taking up available stock, but not really pushing up prices yet.
This means our property markets are likely to remain soft this year, but should keep consolidating.
One encouraging sign is that first time buyers are back, applying for loans at levels not seen for two years. Remember, first time buyers are typically a good barometer for changes in affordability.
How soon things turn around will depend a lot on buyer confidence, and this will depend upon what’s happening overseas, how our local government performs and what happens with interest rates.
Does this mean you should put your money under the mattress or buy gold bullion rather than invest in property?
You already know what I’m going to say, don’t you? 
Property is more than just an investment – it is a fundamental human requirement. Everyone needs a roof over their head, whether they rent or own their own home. As a basic necessity, housing will always be in demand – it will always have value because we simply can’t live without it.
The long-term future is assured for those who invest in property.
At some stages in the economic cycle property values will rise strongly and at other times they will languish. When people can’t afford to buy property (when price growth slows because of decreased demand), people end up renting, so investors win by getting better returns. And that is currently happening as rents rise strongly.
Of course, this also means that buying any property and hoping it will make a good investment just won't work at this stage of the cycle.
You need to buy the right type of property. One that has a level of scarcity – meaning it will be in continuous strong demand by owner occupiers (to keep pushing up its value) and tenants (to help subsidise your mortgage); in the right location (one that has outperformed the long-term averages), at the right time in the property cycle (that would be now in many states) and for the right price.
Then hold it as a long-term investment and reap the rewards.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
 
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myardney-DFoGhGbSJX

Tide is turning for Australia's property markets

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The Eiger Chalet at Perisher in the NSW ski fields has been listed for sale.
<img src="/images/stories/eiger.jpg">
It’s the first time the ski lodge, along with its White Spider restaurant in Perisher, will have been sold since its construction by its original owners and builders. They have put the accommodation and restaurant up for April 19 auction through Ray White Hotels Australia.
White Hotels Australia director Andrew Jolliffe says the premises was once the number one place to stay in the Australian Alps. "The business leasehold will be sold on a walk-in walk-out basis, comprising an impressive inventory of restaurant, accommodation and over-snow equipment," Jolliffe says.
<img src="/images/stories/eiger2.jpg">
Established in 1961, Eiger Chalet sits 100 metres from the Perisher chairlifts and 250 metres from the Perisher ski tube terminal.  Named after the famous ski resorts in Switzerland, Eiger is co-owned by a consortium of investors including the Fischer family.
It's a 66-bed public lodge with a 100-seat restaurant. 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.
<img src="/images/stories/eiger3.jpg">
It’s now listed by Jolliffe in conjunction with Ray White Snowy Mountains Region agent Richard Pembroke. Given the recent sale of the nearby 70-bedroom St Moritz for $3.2 million, more than $2.5 million is tipped for the 2,000-square-metre leasehold offering.
 
 
 
 
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jchancellor-FAypfDUnLy

Eiger Chalet at Perisher set for auction after 51 years' ownership

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Nine properties on RP Data's list of the top 10 sales of the week last week were in NSW, with the 10th in Canberra’s long-established Forrest.
The ACT property, priced at $1,950,000, came in midway through the list at number five.
1. 1403/81 Macleay Street, Potts Point, NSW, 2011 three-bedroom unit, sold on April 5 for $2,950,000 by Richardson &amp; Wrench Elizabeth Bay/Potts Point. 
2. 12 Toocooya Road, Hunters Hill, NSW, 2110 four-bedroom home, sold on April 3 for $2,700,000 by McGrath Estate Agents. 
3. 246 Glenmore Road, Paddington, NSW, 2021 three-bedroom home, sold at auction on April 3 for $2,500,000 by Di Jones Real Estate. 
4.  48 Cook Road, Centennial Park, NSW, 2021 four-bedroom home, sold on April 3 for $2,125,000 by Di Jones Real Estate. 
5. 86 Arthur Circuit, Forrest, ACT, 2603 six-bedroom home, sold on April 3 for $1,950,000 by Peter Blackshaw Real Estate. 
6. 9 Leura Road, Double Bay, NSW, 2028 two-bedroom home, sold prior to auction for $1,900,000 by BHR Group. 
7. 3/3 Bradley Avenue, Bellevue Hill, NSW, 2023 three-bedroom unit, sold on April 3 for $1,525,000 by Bradfield &amp; Prichard Double Bay. 
8. 68 St James Road, Bondi Junction, NSW, 2022 three-bedroom home, sold at auction on April 4 for $1,460,000 by Ray White Unlimited. 
9. 42 Connelly Way, Kellyville, NSW, 2155 six-bedroom home, sold on April 3 for $1,390,000 by McGrath Estate Agents.
10. 123a Eastern Road, Tarramurra, NSW, 2074 four-bedroom home, sold on April 4 for $1,353,000 by Belle Property.
 
 
 
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cknowlton-QnEa6ntUYP

Top 10 sales of the week: RP Data

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Like baking a soufflé, successful property investing requires three important elements: a well-proven recipe, good ingredients and technique. 
Successful property investors know only too well that shortcuts or lack of research are sure to cause financial distress. They also know that given the level of expertise and knowledge required to make the right decision it is essential that they have the best professionals on their team.
Well-proven recipe
Many property investors purchase with their heart. They buy in suburbs that they think they know with little regard for what tenants actually want. 
Successful property investing starts with purchasing the right property. A good capital growth property will pay for itself within 10 years. For those who like numbers, a property growing at a compound rate of 7% per year over a cycle will double in value in about 10 years. A poorer-performing capital growth of 5% will double in just less than 14.5 years while a superior 10% growth property will double in just over seven years. 
As an example, a $500,000 investment after 10 years will potentially grow in value to $814,447 (5% growth), $983,576 (7% growth) and $1,296,871 (10% growth). 
Good ingredients
Now that you have a good recipe, you should choose good ingredients. This involves identifying the correct name in which to purchase the property and ensuring cashflows are maximised by obtaining a depreciation schedule and scrapping schedule if embarking on a renovation. 
For many investors a trust could be a good vehicle to hold and grow wealth. The use of superannuation as a structure should also be considered, as this could mean you will pay no taxation on the investment property and potentially fund it without any additional cash resources. 
Understand the various land tax rules and finance options, as these can significantly sweeten the result. Like all good businesses you must not only grow your assets but protect them. Even if you already have property assets in your name, you can successfully protect them without moving to a trust and incurring CGT and stamp duty. 
Chan &amp; Naylor refer to the secret ingredient as a buffer. A buffer is accessible funds that can be used in emergencies including increased interest expenses, major repairs, a lost tenant, etc. 
A buffer should be measured in time and outline the span you need to make a safer investment. For example, if you say five years for a property that costs $10,000 per year to hold, then you need $50,000 in your buffer. If you choose to sell, a buffer means you do not have to accept the first offer and accommodates for highs and lows in the market. 
Technique
Property investment has a habit of throwing up the unknown, so you need to be prepared. To maximise your chance of a superior property you should take control of the outcome by manufacturing capital growth and not rely solely on market movements. 
Renovations will help turbo-boost your market value and also improve your rental yield, especially if completed soon after purchase. 
Preparation time
It is important that you choose a superior property for successful investment so don’t rush. To be sure, research varying properties in a range of areas and use all available resources including seeking assistance from a professional. 
And you have your soufflé! The main difference between following this property soufflé recipe and a Margaret Fulton recipe is that your property investing will not collapse when the unexpected happens. If you follow the three basic considerations, a lower return than expected is the worst you can expect, however with your buffer you can afford the time to see your property investment succeed. 
Bon appetit!
Ken Raiss is a certified accountant and director of <a title="Chan &amp; Naylor " href="https://www.chan-naylor.com.au/" target="_self">Chan &amp; Naylor</a> national accounting firm. Ken’s experience lies in working with large publically listed multi-national companies, which gives Ken excellent insight into international market trends. Ken specialises in educating “mum and dad” property investors and small business owners with advice on wealth creation, asset protection, taxation, superannuation and compliance. The Chan &amp; Naylor team<a target="_blank" href="https://www.propertyupdate.com.au/2012-events/national-property-and-economic-market-update/"> will be at the upcoming Metropole workshop </a>to go through the above strategies and others in detail to help you successfully manage, grow and protect your property investments.
 
 
 
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Successful property investing is like baking a souffle

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2/48 Willis Street, Kingsford, NSW, 2032
<img src="/images/stories/willisst.jpg">
The tenant of this two-bedroom unit is paying $520 per week and is on a lease until November this year. The property is close to shops, restaurants, cafes, public transport, the University of NSW and beaches, and both bedrooms have built-in wardrobes. 
LJ Hooker agent Anthony Rizzo <a target="_blank" href="https://maroubra.ljhooker.com.au/P9SFA0">is marketing the property </a>with price hopes in the "early $500,000s", and if it sells for $510,000 that would secure an investor a gross rental yield of 5.3%, substantially above the median indicative gross rental yield of 4.6% for Kingsford units, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
<a href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT" target="_blank">Washington Brown</a> estimates the first-year tax depreciation deduction to be $5,500 and over five years to be $16,500.
The median unit price in Kingsford rose by 3.5% in the past year, according to RP Data.
The property will go to auction on Thursday, April 26 at 6.30pm and is open for inspection Saturday, April 14 at 1pm.
For more about prices and yields in Kingsford, see the RP Data suburb page.
For another investment prospect going to auction this weekend, see page 2.
 
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14/13 Ormond Road, West Footscray
<img src="/images/stories/ormondroad.jpg">
The tenant of this one-bedroom West Footscray unit is paying $802 per month and is on an expired lease. The property includes a laundry and has a car park on its title. 
Sweeney Real Estate agent Ruby Sweeney<a target="_blank" href="https://www.sweeneyestateagents.com.au/profile.php?clientid=sweencp&amp;cat=sales&amp;propertyid=3824075"> is marketing the property</a> with price hopes of $180,000 plus, and if it sells for that price at its current rent it would secure an investor a gross rental yield of 5.4%, well above the indicative gross rental yield of 4.1% for West Footscray units, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. The median asking rent for West Footscray is $260 per week, or $1,127 per month.
<a href="https://calc.washingtonbrown.com.au/wbdcalculator/calculator.aspx?RID=HPCAZOPTTT" target="_blank">Washington Brown</a> estimates the first-year tax depreciation deduction to be $4,500 and over five years to be $12,500.
The median unit price in West Footscray rose 10.5% in the past year, according to RP Data.
The property will be open for inspection on Saturday, April 14 at 1.30pm and will go to auction on Saturday, May 12 at noon.
For more about prices and yields in West Footscray see the<a target="_blank" href="/news"> RP Data suburb page</a>.
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Friday form guide: Yields of up to 5.3% in Kingsford

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The recent release of the REIV’s calendar year medians for 2011 allows another review of the long-term performance of the residential market.
It is commonly accepted that prices double every seven to 10 years and the REIV’s research shows that, while this does not occur every time, it is a reasonable rule.
The median price of a house in Melbourne was $540,383 in 2011. Since 2001 the median price has increased by $240,383, or 80%, from $300,000. Interestingly, because 2001 was a year of strong appreciation and 2011 was not, this results in a very different outcome from the 10 years to 2010, when prices rose by 120%.
This shows that the timing of the sale and purchase and have a substantial impact on the result.
In the 20 years since 1991, the median house price has increased by $398,383 or 281%. This shows that prices grew more strongly in the latter part of the ‘90s than they did over the last decade.
In the 30 years since 1981, the increase in the median was $484,783 or 872%.
The comparison with 1971, when the median house price was a mere $12,100, does not need a percentage comparison – the substantial change is obvious.
These comparisons confirm that residential property can deliver very solid investment returns over the long term. While many commentators concentrate on the short-, often very short-term changes, the more sensible approach is to take a long-term view.
Enzo Raimondo is CEO of the <a target="_blank" href="https://www.reiv.com.au/">Real Estate Institute of Victoria</a>.
 
 
 
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The value of Victorian houses roughly doubles every 10 years – so take a long-term view

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Have you ever stopped to think for a moment what it’s like for a property manager to evict a tenant, a person from their home?
I fully accept and agree it has to happen at times, especially when the tenant is behind in rent. But have you ever thought for a moment how you might feel or what happens or how it gets to that point?
Sometimes situations arise, and as human beings we sometimes choose not to want to deal with it.  It’s easier just to put our heads in the sand and hope it goes away. But I am afraid it doesn’t go away – it just gets worse!
Recently my office experienced a situation where the tenant who was experiencing a vast array of illnesses was continually failing behind with the rent and always had a different excuse each time as to why she hadn’t paid the rent.
The matter proceeded to court, where an order of possession was granted and the tenant failed to attend the hearing, so the owner was left with no choice but to purchase a warrant to have the tenant evicted.
A day or two before the eviction was due to take place, the tenant applied for a review on the court’s determination.  We attended the hearing – she didn’t.  Again the warrant was reactivated and the 14 days (as it is in Victoria) started all over again.
Then the tenant’s father called and begged for more time.  He wasn’t prepared to pay any of the arrears that his daughter owed, but he thought the owner should let them have more time and not evict his daughter.
All this happened and still no rent was paid.
The execution of the warrant finally took place and upon entering the house there was absolutely no sign at all that the tenant had packed a single thing.
The Salvation Army became involved and they needed numerous times and dates to co-ordinate the removal of the tenant’s goods.  This process took another three weeks.  And yes, it’s always a better result to have all the goods removed rather than proceed down the pathway of storage and auction etc., but at the end of the day – what does the owner receive?  All the rent is still outstanding, nothing has been paid and the tenant has effectively used the property as storage for the past three weeks without paying a cent.
Sometimes the perception of an owner is so misconstrued. For my owner this was his first time as an investor.  He thought he was always fair and reasonable to allow some extra time but in the end – what does he get – nothing but a lot of stress and probably a strong inability to trust again in the future!
The end result for this owner is he will fight the insurance company for the next month or two for a fair and reasonable settlement.   A process, a system and outcome that really is a little unfair!
Leah Calnan is the director of <a target="_blank" title="Metro Property Management homepage" href="https://www.metropm.com.au/">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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Evictions take a toll, and the process can be long and unfair

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The Melbourne and Sydney prime CBD retail markets continue to perform strongly, driven by luxury international retailing brands seeking spaces for new stores, according to the April Herron Todd White (HTW) Report.
The two CBD markets are outperforming retail property in their respective suburban markets, with a two-speed retail market in evidence in both cities.
HTW valuers quote “industry sources” as saying vacancies in the Melbourne CBD are at record lows, “driven by population growth and a substantial amount of residential development, particularly in the northern CBD in the university precinct”. 
“Super-prime rental levels (i.e. Bourke Street mall) now sit in the order of $5,000 per square metre to $8,000 per square metre, and the location is not showing any signs of slowing, with Zara, Steve Madden and Swarovski entering into new lease agreements. 
“Rental levels within prime retail strips (i.e. Swanston Street) have risen a reported 5.1%, while secondary CBD retail rentals have risen a reported 8.11%.” 
A separate March 2012 report by CBRE says the Melbourne CBD has a current vacancy rate of 2.53%, just ahead of Sydney at 3% and Brisbane at 7.2%.
CBRE says vacancies are particularly tight in Melbourne laneways (just 1.6%) but have eased in some streets including Lonsdale, Elizabeth, Collins and Little Collins streets.
According to CBRE commercial agents Max Cookes, who along with Zelman Ainsworth recently negotiated the lease of a fourth location for Melbourne-based fashion label Life with Bird on Flinders Lane, the Melbourne CBD retail core remains a highly sought-after market, particularly by international retailers.
“We are in the process of concluding more than five retail leasing deals with international retail tenants in the Melbourne CBD. The tenants include international jewellers, fashion and accessories, home-wares, luxury brands and even international hospitality groups. 
“The level of enquiry we have received is stronger than this time last year. While a number of discretionary fashion retailers are experiencing weakened trade conditions, in the CBD it seems there are always retailers lining up to fill empty space,” says Cookes.
HTW says the Melbourne CBD market is characterised by a lack of supply, which has driven demand for retail space in the CBD. 
“There is minimal new / expanded retail development expected in 2012, with the only substantial retail development being ‘the corner’ at Melbourne Central, which is now complete. 
“‘The corner’ is located on the second level of Melbourne Central and is home to a mix of international and local fashion retailers. 
“Despite this development, new supply of retail space remains constrained and is expected to remain this way in the short term,” says HTW. 
The next big influx of new CBD retail space is not scheduled until 2014, when redevelopment of the Myer Lonsdale Department Store will be complete, providing a further 200 new retail outlets and 42,250 square metres of retail space. 
Most recently the attractiveness of prime retail CBD space was seen in the sale of the <a href="https://www.propertyobserver.com.au/retail/telstra-store-premises-in-melbourne-cbd-has-%248-million-price-tag/2012031253797">Telstra premises on the corner Collins and Swanston streets</a>, one of the busiest pedestrian corners in Melbourne, ahead of auction. 
The 65-square-metre shop was snapped up for $9.25 million by a private investor, with CBRE commercial agents Josh Rutman, Mark Wizel and Max Cookes receiving a number of good offers prior to the schedule March 22 auction culminating in an “auction before the auction”. 
In the Sydney CBD, HTW says continued white-collar employment growth and the rejuvenation of the premium Pitt Street mall (ranked <a href="https://www.propertyobserver.com.au/retail/pitt-street-mall-closing-in-on-fifth-avenue-retail-rents/2011090151391">fourth most expensive retail strip in the world</a> by Cushman &amp; Wakefield) has caused demand from international and premium retailers to increase. 
“Since the start of 2011 we have seen the opening of the Louis Vuitton store on George Street, the expansion of the Hugo Boss store on King Street and the opening of Burberry on George Street. 
“These high-end retailers who are hoping to increase their presence throughout Australia, have been seeking locations which offer more than a simple shopfront,” says the valuation firm. 
“In the case of Louis Vuitton, the fashion label committed to a complete refurbishment of the former Blacket Hotel, to create a premium two-storey retail destination. 
“Likewise the Burberry flagship store occupies the heritage-listed 343 George Street. With internet retailing now firmly at the forefront of every retailers mind, we expect that luxury retailers will continue to build on ‘the retail experience’ in a hope to attract consumers into their stores.” 
However, outside of the Sydney CBD HTW says there is weaker demand, which has resulted in an increase in vacancy and a subsequent fall in rental rates. 
“Rental rates for properties in traditional prime locations have fallen the most, as retailers with falling turnovers struggle with higher occupational costs,” says HTW.
Photograph of Burberry's Sydney store courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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International luxury brands drive up demand for retail space in Melbourne and Sydney CBDs: HTW

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Economist Christopher Joye gives his take on today's employment data, which he says was a surprise to many economists. 
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