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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Husband and wife luxury lodge operators James and Hayley Baillie will open their first inner-city boutique hotel in Sydney’s The Rocks next year and expect up to 90% of guests will be wealthy international travellers.
The Baillies have acquired 35-year leases on two adjacent historic buildings on George Street.
The two buildings are five-level Merchants House at 43-45 George Street, dating back to 1848, and 47 George Street, a sandstone warehouse dating back to 1843 and previously a Westpac Bank branch.
They are currently being developed by Tim Greer of Tonkin Zulaikha Greer architects.
James Baillie tells Property Observer the Great Ocean Road is next on the couple’s agenda, while they also have ambitions of opening a second larger luxury hotel in Sydney.
“The Great Ocean Road is very much on the cards. We are looking at various locations and have received great support from the Victoria government on this,” he says.
“The end game would be to open a second bigger hotel in Sydney. One day we’d like to open a larger luxury hotel in the 50- to 80-room range," he says.
The Rocks lodge will be called Baillies Sydney and will feature 10 suites aimed at wealthy overseas travel market with rates starting from $1,200 per night up to $3,000 per night.
James Baillie says he chose The Rocks because it is a “quintessentially Sydney location” and “perfectly located close to all of Sydney key iconic attractions”
He says it will be “like nothing Sydney has seen before” with guests receiving “first-name service”.
“Luxury lodges have a highly inclusive element to them with all meals and beverages and in the case of wilderness lodges they would eat most of their meals at the lodge.
“However in the case of Baillies Sydney, we want to give them the opportunity to experience fine Sydney dining if they wish.
“We will include an open bar for guests and weary travellers can choose to have their meals in the hotel, but we don’t want to compete with Sydney restaurants,” he says.
Guests staying at Baillies Sydney will have the option of being driven to nearby restaurants and taken on behind-the-scenes tours of the Sydney Opera House.
The Baillies will next turn their attention to the Great Ocean Road with James Baillie telling The Australian he sees “amazing potential for a luxury lodge” on the famous Victorian coastal road.
<img src="/images/stories/southernoceanlodge.jpg">
Baillie Lodges was founded in 2003 and currently operates three luxury lodges in wilderness locations, these being <a href="https://www.lordhowe.com/" target="_blank">Capella Lodge</a> on Lord Howe Island, the Baillies’ first venture, <a target="_blank" href="https://www.southernoceanlodge.com.au/">Southern Ocean Lodge </a>on Kangaroo Island (pictured above) and <a target="_blank" href="https://www.baillielodges.com.au/remarkable-lodge.asp">Remarkable Lodge in Tasmania</a>.
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Baillies to open luxury boutique hotel in The Rocks, with Great Ocean Road next on the agenda

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Melbourne pub mogul John van Haandel has listed Quicksilver’s new flagship retail store in Byron Bay this week, with hopes of $6 million.
Quicksilver signed a 10-year lease for the property with 618 square metres of floorspace in March this year after it was custom built for the company.
Van Haandel also runs the neighbouring Beach Hotel.
<img src="/images/stories/quicksilver.jpg">
The purpose-built property includes two apartments above the shop, which Quicksilver says will ?offer tourists and surfing fans the chance to live, breathe and sleep the Quiksilver brand.
Jones Lang LaSalle is selling the property, which earns a net income of $393,300 per annum with 3.5% annual reviews.
The property lies on the northern end of Jonson Street near Bay Street and has significant frontage to the Jonson Street retail precinct and council car park which services Byron’s main beach.
There is parking for eight cars at the rear of the property.
Sam Hatcher and Stuart Taylor have the listing with expressions of interest closing on May 16.
 
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Melbourne publican John van Haandel lists Quicksilver's flagship Byron Bay store 

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The strength of the St Kilda Road fringe CBD office market has been reaffirmed following a series of snappy sales at high yields ranging from 6.2% to 10.6%.
This week Centuria Capital’s property funds management subsidiary, Centuria Property Funds, announced that it had sold its 12-storey office 607 St Kilda Road for $28.5 million to a private investor on a strong yield of 8.23%. 
The fund had originally acquired the building in 2002 for $21 million and has spent about $5 million as part of an extensive refurbishment and service upgrades throughout the building. 
It was sold fully leased with a weighted average lease expiry in excess of six years following a joint campaign by Paul Henley and Langton McHarg from Knight Frank and Nick Rathgeber and Leigh Melbourne from Colliers International. 
Centuria Property Funds CEO Jason Huljich says he is delighted with the response to the campaign, which receiving multiple offers.
“St Kilda Road’s commercial property market is gaining momentum with high net absorption and low vacancy rates. 
“The competitive and sustained rental growth is attracting local and global investors to the area and the sale of 607 St Kilda Road is reflective of the popularity of the boulevard,” he says. 
Huljich says investors in the fund have benefited from “solid capital gain achieved plus strong income distributions throughout the term of the fund”. 
The sale of 607 St Kilda Road follows Centuria spending $58 million on acquiring another office property on the strip, 441 St Kilda Road, an A-grade office, on behalf of the Over Fifty Guardian Friendly Society. 
The building was acquired from the Dexus managed AXA Wholesale Australian Property Fund. 
The property has a net lettable area (NLA) of 16,175 square metres with a WALE of 4.08 years with tenants including Hutchinson 3G, SAP Australia, Kellogg Brown &amp; Root, Macquarie Telecom, Bank of Queensland and MAB Corporation. 
This property is also undergoing a significant upgrade expected to result in a 4.5 star NABERS rating from a current 3.5 star rating. 
There have been five other major office sales dating back to August 2010 according to the Savills March 2012 Melbourne Fringe Office report, including two which took place in the final quarter of 2011. 
In December Abacus Property Group picked up 484 St Kilda Rd, a 15 storey building for $68 million at a yield of 7.92%. It was marketed by Jones Lang LaSalle agents Robert Anderson and James Kaufman, with tenants including Symbion, Glencore Grain, and Australand. 
The other recent sale occurred in September with 601 St Kilda Road selling for $30 million September to the Quek family’s Shakespeare Management business.  The property, part of the Record Realty Trust portfolio, was sold by Jones Lang LaSalle agents Robert Anderson and James Kaufman and Knight Frank agents Paul Henley and Paul Burns on behalf of receivers KordaMentha at a yield of 10.6%.
Click to enlarge
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According to Savills, the St Kilda Road strip has 743,000 square metres of lettable area while Southbank and Docklands combined have 944,000 square metres of lettable office space. 
As of December 2011 there was 80,000 square metres of vacant office space on St Kilda Road compared to 32,000 square metres of vacant space in Docklands/Southbank. 
More than half of fringe Melbourne office space is prime quality (924,000 square metres) with the rest of secondary quality. 
The 2012 Property Council of Australia office market report shows that total vacancy on St Kilda Road decreased due to the highest demand in 17 years with vacancy rates falling from 13.4% to 10.8% over the six months to January 2012.
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Investor appeal of St Kilda Road office market continues with Centuria $28 million sale

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Profits margins on new residential developments are substantially higher in Sydney then they are Melbourne and Brisbane, according to a new report by the Centre for International Economics.
The Taxation of the Housing Sector report shows that average profit on a Sydney greenfield lot (new housing estates) is $44,000 compared with profits of around $30,000 in Melbourne and $31,000 in Brisbane. The report was commissioned by the Housing Industry Association (HIA) to highlight the high taxation burden faced by the housing sector and back <a href="https://www.propertyobserver.com.au/tax/hia-demands-tax-relief-for-new-housing-ahead-of-tax-summit/2011092951734">last September’s call for urgent taxation reform</a>.
Click to enlarge
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The story is similar for infill lots (redeveloped land in a build-up area) with Sydney generating developers profits of $32,000 compared to $21,000 in Melbourne and $27,000 in Brisbane.
Not only are Melbourne lot sales less profitable than those in Sydney and Brisbane, but Melbourne land developers are also facing higher council contribution levies.
The Property Council of Victoria estimates that development charges levied on Melbourne developers as part of local council development contribution plans (DCPs) increased about 26% over the past year.
The one-off charge paid by Victorian developers is used to fund essential infrastructure such as roads, sewers, drains and utilities.
Jennifer Cunich, executive director at the Property Council of Victoria, told the Australian Financial Review that costs levied on developments had suffered from rising construction costs, higher land values, larger open space requirements from local councils and higher conservation costs.
In May last year Victorian planning minister Matthew Guy promised to overhaul the way the contribution charge is levied on developers, but to date no changes have been implemented.
The CIE report notes that raw land sale price in some jurisdictions contains a hidden tax component resulting from the “monopoly of supply that local councils and state governments have over land release.
“This hidden tax is apparent where the raw land sale price is greater than the value of similar land that is not designated as available for residential use, such as agricultural land.
“Development costs, other than taxes, include land preparation costs, consultant fees, finance charges, council water rates, and development profit.
“Some of these charges may amount to taxes and inefficiencies if they are excessive relative to what they need to be.
“Planning delays add to financing costs and represent hidden taxes upon which the goods and services tax cascade as the developer tries to recuperate all development costs.
“Land preparation costs incorporate the cost of installing the National Broadband Network (NBN). This may represent a tax on housing for some residents whose net gain from the installation of the NBN is lower than the net cost.
“Consultant fees incorporate a hidden tax component where the cost of activities related to compliance is disproportionate to the benefits flowing from compliance (such as to third parties),” says the CIE report.
The CIE report also notes that government taxes and charges are significantly lower on infill dwellings, reflecting lower ambiguous taxes (charges imposed by state governments and local councils ostensibly for the provision of infrastructure) and charges such as infrastructure charges and a smaller anticipated impact of zoning restrictions on a given dwelling.
 
 
 
 
 
 
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Sydney most profitable residential market for developers as Melbourne costs rise: Report

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Australians care more about home ownership than US home owners and take a more prudent approach to lending and debt, Luci Ellis, head of the Financial Stability Department at the RBA, has told a mortgage conference in Atlanta.

Speaking ahead of a panel discussion on the topic of mortgage financing, Ellis began by telling US financiers: “Americans are not obviously more enamoured of home ownership than other people. We talk about a ‘Great Australian Dream’.’”
She presented the following graph to show that Australians are better at managing their mortgages than US borrowers paying their mortgages down ahead of schedule.
It shows that during the last 10 years around half of Australian borrowers have been ahead of their mortgage repayments schedule while in the US this is closer to 20% of borrowers. (Australian authorities report more regularly on mortgage repayment rates).
Click to enlarge
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“American households are less likely to pay their mortgages down ahead of schedule than Australians,” Ellis said.
“Trade-up buyers seem to have high loan-to-valuation ratios in the United States; that doesn't appear to be true in Australia. The result of all this is that the US housing stock is far more leveraged than that in Australia, even during the boom period,” she said.
Her remarks come as overseas investors continue to express concerns about the Australian housing market and shun buying Australian residential mortgage-backed securities.
“I have a US colleague with me at the moment and he says Australia has the most overvalued housing market in the world and that is has a serious bubble,” Peter Dorrian, head of global wealth management at the Australian arm of investment firm Pimco, told Business Spectator earlier this month.
In her speech, Ellis pointed out the uniqueness of the US financial meltdown, which was precipitated by a mortgage crisis.
“In most countries, by contrast, increased mortgage distress occurs with economic downturns; it doesn't usually precipitate them,” Ellis said.
Ellis identified four key factors that caused the US meltdown, beginning with the fact that had been a housing and construction boom ahead of the crash, creating an “overhang of excess supply”.
“The inherent stock-flow interaction in the housing market means that construction booms sow the seeds of their own destruction. Prices can undershoot formerly sustainable levels,” she said.
She also pointed out the weaker lending standards, which exacerbated the tendency of mortgage borrowers to default in a bust.
“There were gaps in both prudential and consumer protection regulation. Even where those regulations applied, they did not prevent lending practices not seen elsewhere, especially around income documentation and amortisation,” she said.
She said loans in the US discouraged amortisation.
“Interest-only loans, explicitly negative amortisation loans and cash-out refinancing, all meant that loan-to-valuation ratios that were high at origination, stayed high well into the life of the loan.”
Lastly she highlighted wider policy choices that were having an effect on the mortgage market.
“The United States has chosen a host of institutional arrangements outside the housing–finance system that result in US households facing more idiosyncratic and collective risk than their counterparts in many other developed countries. 
“Flexible labour markets, limited welfare systems and US-style healthcare and elder care systems are understandable policy choices. But these policy choices have implications for what can be safely managed in the housing–finance system. This fact needs to be taken into account when designing mortgage and housing policy.” 
Ellis said fixing the US system would solve what she called the reversal of an aversion to on-balance sheet mortgage lending. 
“During the boom, on-balance sheet mortgage lending was not seen as being a profitable or attractive business for US banking institutions. 
“That is extraordinary to foreign eyes. I believe that a healthy mortgage market is only feasible when sound mortgage lending is an attractive business for prudentially regulated firms; ideally, it should be possible for these firms collectively to dominate that industry, even if they do not in reality,” she said. 
“I also think more could be done to encourage mortgage amortisation. Paying your mortgage down before the bust is the most effective way of avoiding getting into negative equity once housing prices start to fall.
“It might be worth considering adjustable-rate mortgages in a more positive light. They offer some advantages, at least if they do not have aggressive teaser rates. In particular, they allow the borrower to make prepayments that can be redrawn later if needed. Think of this as like a home equity loan where the maximum balance declines over time.
“Such loans are common in Australia and have proven a highly effective vehicle for precautionary savings.”
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Australians pay off their mortgages faster than Americans: RBA

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Just how do Australians define and appraise various housing styles? Bungalow, villa, shack, terrace and mansion, to suggest a few.
Some 16 property aficionados will be endeavouring to do so in an upcoming Sydney lecture series.
It commences April 26 when the author, historian and conservation consultant Dr James Broadbent – and owner of Australia's oldest house in private occupation – traces the development of the much-loved Australian bungalow in his public talk hosted by the Historic Houses Trust.
It was the developer Richard Stanton who is credited as introducing the American-style bungalow to Sydney in 1906, and by 1912 the new type of compact servant-less house was being erected across Sydney by speculative builders. Californian Bungalows with sandstone footings were followed by the more geometric Chicago style.
Others in the talk series include Hannah Tribe, the founding principal at Tribe Studio Architects, who looks at the terrace house, which was popular in the 19th century especially around Sydney’s inner east and inner west.
The talks – part of the Sydney Open event - run weekly between April 26 and June 14, being held at The Mint on Macquarie Street, Sydney.
Architects can claim informal CPD points by their attendance.
The series
Bungalow
Thursday, April 26, 6pm - 7.30pm
Dr James Broadbent, historian, conservationist and author
Scott Robertson, Director, Robertson &amp; Hindmarsh Architects
 
Apartment
Thursday, May 3, 6pm - 7.30pm
Dr Caroline Butler-Bowdon, assistant director, Creative Services, Historic Houses Trust
Adam Haddow, Director, SJB Architects
 
Villa
Thursday, May 10, 6pm - 7.30pm
Scott Carlin, Curator, Historic Houses Trust
Philip Goad, professor of architecture at the University of Melbourne
 
Mansion
Thursday, May 17, 6pm - 7.30pm
Dr Charles Pickett, curator of design and built environment at the Powerhouse Museum
Jonathan Chancellor, managing editor, Property Observer
 
Beach shack
Thursday, May 24, 6pm - 7.30pm
Dr Michael Bogle, design historian
Peter Stutchbury, Peter Stutchbury Architects
 
Terrace
Thursday, May 31, 6pm - 7.30pm
Keri Huxley, social and political scientist and former mayor of Woollahra Council
Hannah Tribe, founding principal, Tribe Studio Architects
 
Project home
Thursday, June 7, 6pm - 7.30pm
Dr Judith O’Callaghan, senior lecturer, The University of New South Wales
Tone Wheeler, principal architect, Environa Studio
 
Portable
Thursday, June 14, 6pm - 7.30pm
Megan Martin, head of collections and access
Sean Godsell, Sean Godsell Architects
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Property aficionados to define and appraise Australia's housing styles in Sydney lecture series

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Keeping with my past posts around holiday periods today’s memo doesn’t related exactly to residential property but looks through a wider lens.
Below are “20 rules of the road”, so to speak.  I like to collect such stuff and stick them in a folder for future use.  Most of the time, my two daughters have been the only ones to suffer my summations, but now I have a wider audience.
So here goes, 20 rules for a metamodern world.
<ol start="1">
<li>Drink plenty of water, eat breakfast like a king, lunch like a prince and dinner like a beggar.</li>
<li>Live the three Es – Energy, Enthusiasm and Empathy.</li>
<li>Sleep for seven hours; walk every day for 30 minutes – smile when you walk – and sit in silence for 10 minutes twice a day.  Plus, read more books this year than you did last year.</li>
<li>Never let the weeds get higher than the garden.</li>
<li>But find some time to dream more while you are awake.</li>
<li>Only you are in charge of your happiness.</li>
<li>Don’t compare yourself to others; don’t take yourself too seriously – no one else does – and forget your past (or at least make peace with it).</li>
<li>Everything cycles – however good or bad a situation is, it will change.</li>
<li>What people think of you is none of your business and people who don’t want to be in it (whatever “it” is to you) are not important.</li>
<li>Call your family often and spend more time with people over 70 and under 15.</li>
<li>Get rid of anything that isn’t useful, beautiful or joyful.</li>
<li>Live smart – you only have so many hours in your day, your week, your year and in your life.</li>
<li>Work and love are both verbs.  A verb is an “action” or “doing” word.  Love isn’t a feeling.</li>
<li>Build your own portfolio – personal brand, network and experiences.</li>
<li>Find time for a hobby.</li>
<li>Life really is a “hard contact” sport.  You have to get out there and mix it up.  Staying indoors just doesn’t cut it.</li>
<li>Determine why you are here – what is your purpose.  It doesn’t matter what it is, but it needs to be defined in under 10 words or counted off on three fingers.</li>
<li>No matter how you feel, get up, get dressed and show up. “Get behind the mule, every day, and plough” to quote Tom Waits.</li>
<li>Being alive must be much better than being dead.  Waking up every morning is a blessing.</li>
<li>Never give up – rest occasionally, reset if needed – but keep swinging.  To quote Waits again – “always keep a diamond in your mind”.</li>
</ol>
Michael Matusik is the director of independent property advisory Matusik Property Insights. Michael is a 25-year veteran in the industry and his firm has helped over 550 new residential developments come to fruition.  Michael has launched a new initiative, called<a href="https://www.matusik.com.au/" target="_blank"> Think Matusik</a>.  Think Matusik brings together expert opinion and select property opportunities.
 
 
 
 
 
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michaelmatusik-49YzLvdmNv

The 20 rules to live your life by

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Oxygen Home Loans, the subsidiary mortgage broking arm of McGrath Estate Agents, wrote a record $135 million worth of mortgage in March, defying a weak overall mortgage market.
March 2012 lodgements were 80% higher than what it achieved in March 2011 and matched a strong performance in NSW by AFG, the wholesale mortgage aggregator that Oxygen Home Loans operates under.
AFG lodged $842 million worth of mortgages in NSW, the second highest month for AFG NSW since the AFG Mortgage Index commenced in 2004.
Oxygen Home Loans has 24 mortgage brokers, who predominantly arrange finance for properties purchased through McGrath Estate Agents.
It was named independent brokerage of the year (six or more staff) and Australian brokerage of the year <a target="_blank" href="/news">at last year’s Australian Mortgage Awards</a>.
ABS housing finance figures released yesterday show that NSW owner-occupier mortgage commitments <a target="_blank" href="/news">fell by 9.4% in February</a> following an 8.5% drop in January.
Oxygen general manager James Green says the company’s milestone result came on the back of a 113% year-on-year increase in new mortgage enquiries in February and an 85% year-on-year increase in March.
“The big growth area for Oxygen has been from upgraders,” says Green.
“Correspondingly we have seen an increase in the average loan amount to over $630,000, the highest monthly figure recorded.”
Green says a large proportion of the applicants are buyers of McGrath properties, “reflecting the success of offering a streamlined one stop shop for property transactions”.
More than 90% of March lodgements were approved in principle, and James says the $135 million figure provided a good indicator of market activity and sentiment.
McGrath Estate Agents chief executive John McGrath says Oxygen’s success could be attributed to the group’s commitment to “six-star service”.
“When people buy or sell property they are usually trading the most valuable asset they own.
“They expect professionalism and accountability, and that is what they know they will get from both McGrath and Oxygen,” he says.
 
 
 
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Oxygen Home Loans writes record mortgage business in March as average loan size hits $630,000

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As part of our property development project management process, after locating a suitable development site, we’ll then recommend to clients the type of design of villas that the development requires.  This is very important because there is a fine line between building for the market and overcapitalising.
We look at four things to determine the level of building investment required:
<ul>
<li>Demographics for the suburb</li>
<li>Surrounding properties to the site</li>
<li>Tenant demand in the area</li>
<li>Recent sales references in the suburb</li>
</ul>
Today I looked at a dual-occupancy site in a suburb that had a couple of different demographics: young families with one or two kids attending the local private school and retirees looking to downsize and live close to shopping facilities in low-maintenance properties.
I’d been given a build cost based on what had been built in this estate to date. It is an upmarket estate.  The build cost for a three-bedroom, two-bathroom duplex to the standard that had already been built in the suburb was around $400,000.
I knew we could build a similar duplex, slightly smaller without a walk-in wardrobe to the master bedroom (that the other duplexes have) for about $370,000. There were other small differences to the façade and finishes, but were they worth the difference of $30,000?  My take on it: nup, because tenant demand is high and we could get the same rent as the other, slightly “better” villas in the area.
A few years ago, I build some fabulous duplexes in an upmarket estate in the Lower Hunter region of NSW.  I wanted to build something of a standard above what was being offered in this estate. So I had the duplex architecturally designed with asymmetrical roof lines in lieu of a pitched roof and we included upgrades such as rendered external finish instead of brick, stone kitchen and vanity benches, shadow line finish to living areas, upgraded European appliances and smart-looking column fencing with aluminium slats.  I thought when the bank valuers see these villas they will see that they are higher in standard than the past sales references of three-bedroom, two-bathroom villas in the area.
Wrong.  The valuer looked at past sales of three-bedroom, two-bathroom attached villas and valued them at the same level.  The upgrades we’d included were not seen to be substantial enough, but of course they did add to the build cost.  A few years later the client decided to sell one of the villas, he was convinced by a local agent that the price was acceptable for three-bedroom, two-bathroom villas as that was what they had sold for before.   I’m sure if the client had “sold” the property to the agent, meaning he needed to emphasise all the points of difference that his villa had to the others, he may have sold at a higher price (mind you, a good agent would pick up on these “selling points”), but he didn’t and so his more upmarket villa did sell at the same price as the stock-standard ones.
So now I’m faced with the opposite opportunity. Can we build slightly below what is in the market, save on costs but end up with the same value on completion?   I reckon we can. Being a bit of a city slicker, I’d always thought higher cost means higher quality.  But I also have a “value for money” vein running through me.  I ran the numbers and our client is looking at making an additional $30,000 or so in equity out of this project for not much concession.
As a property developer, I think this can sometimes be a better option.  Look to build slightly below the market than the other way around.  But this is based on this particular location in a large regional country area.  It may be different in capital cities. My message today:  walk the fine line well and you could make more than if you pay for the fine upgrades.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" title="Property Bloom" target="_blank">Property Bloom</a>, which manages property development.
 
 
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Beware of costly extras in your development that won't help its sales price

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 In some ways, real estate agents are like lovers.
It can be hard as you start the relationship to know exactly where it’s going to end. Will the relationship fall apart on a bad note? Will this person end up acting crazy? Or will they become a lifelong friend with whom you never lose touch?
To make matters worse, it’s much more important to choose a good agent than to choose a good date. Without too much trouble, you can change the person you’re dating at any moment — and with very little lost.
With a real estate agent, you enter into a contractual agreement. You are putting your most valuable asset in his or her hands. If it goes wrong, you could lose both money and time — and gain a great deal of stress and aggravation.
Choosing an agent, then, is one of the most important steps in the sale or the rental of the property. I believe that your choice of real estate agent probably has a bigger impact on the ultimate success of your real estate transaction than any other decision you make. That means the agent you choose affects how much you will get for your property, how quickly you will be able to rent or sell it and the degree of emotional strain the whole process causes you.
My most important tip for selecting an agent is to choose one based on their professional qualities. I would be wary of selecting a friend or family member to sell or rent your property for you.
The main problem is the natural fear we all have of upsetting someone near and dear to us. Your real estate agent must be willing to challenge you when you make mistakes. If you want to price your property much too high, or insist on an unrealistic marketing plan, for example, your agent must be willing to tell you so. A close friend or a family member may be afraid of this confrontation.
On the other hand, you also have to be willing to say things to your real estate agent that might offend a close friend or loved one. In a transaction involving so much of your personal wealth and wellbeing, you don’t want to feel restrained by fear of hurting a long-standing relationship.
It’s not that you have to be nasty to your agent. You do, however, have to be able to speak plainly and insist on what’s important to you. It is sometimes difficult to make explicit demands in a close personal relationship.
In my experience, there are three key ways in which vendors and owners choose an agent to sell or rent their home. More than anything else, they choose based on: 
<ul>
<li>The agent’s market share, visibility and brand name</li>
<li>The agent’s record of experience and success in the area</li>
<li>The speed with which the agent responds to their request </li>
</ul>
All of these are in fact very good indicators of how well an agent will work for you.
The agent’s visibility in your suburb is a good indicator that he or she is successfully working on behalf of many other customers. For an agent to be highly visible, he or she must be receiving a large percentage of their business via referrals, which means customers are happy with his or her work.
It’s true that past performance is no guarantee of future success. Still, it is the best indicator available. An agent with a record of success in your area is likely to do well for you.
It also makes sense to choose from the agents who respond most quickly to your request. An agent who responds promptly is clearly interested in your business. He or she is more likely to work hard for you than a slower-moving competitor.
The pattern of a relationship is often established in the very first interaction. An agent who is responsive in the beginning is likely to continue to be so, just as an agent who is unresponsive is not likely to improve over time.
What you don’t see on this list of reasons to choose an agent is the commission rate that the agent charges. I have overseen literally thousands of transactions in which consumers choose from among several agents to sell or rent a property. Only very seldom do they make their choice because of the lowest commission.
This shouldn’t surprise you. Psychological research shows that we all instinctively assign more value to things that cost more, and less value to those that cost less. Entire marketing campaigns for perfumes, jewelry and fashion have been built on the premise that the more expensive a product is, the better it is. In an event as important as a real estate transaction, few of us want to risk using a cheap — and therefore probably less competent — agent.
Psychology also shows that we tend to think of money in relative terms. An agent’s fee is a small percentage of the value of our property. The extra fee charged by a good agent seems minuscule compared to the total value of the transaction, and thus well worth the expense.
The last reason it makes sense to choose the best agent instead of the cheapest is this: if an agent isn’t smart enough to negotiate a higher fee for himself, how well will he negotiate the sale of your house at the highest possible price?
So, choose an agent based on his or her visibility, record of success and responsiveness. Certainly, take the fee into consideration, but don’t let it become the primary factor in your decision.
Andrew Menzies is CEO of <a href="https://sellmycastle.com.au/">sellmycastle.com.au</a>, where agents compete to sell your property. <a href="https://sellmycastle.com.au/">Sellmycastle.com.au</a> handles thousands of transactions each quarter, and each property receives an average of five bids from competing agents. 
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