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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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The total land value of the 51,694 properties in the City of Liverpool was $17.940 billion in July 2011, according NSW Valuer-General Philip Western.
That figure is up 1% from the July 2008 valuation of $17.462 billion.
In the three years since the last valuation residential land generally experienced a slight increase in value.
From 2010 to 2011, the median residential land price increased 1.8% from $226,000 to $230,000.
Commercial and industrial land in the city both had a slight decrease in value over the three years.
The median industrial land price stayed constant from 2010 to 2011 at $1.23 million. The median commercial price dropped slightly from $600,000 to $598,000 over the same period.
Rural-residential land values generally had a slight decrease, with the exception of rural- residential land marked for future residential development in the south west growth centre, which generally had a moderate increase in value.
From 2010 to 2011, the median rural land price increased 1% from $659,000 to $665,000.
Landowners and rate-paying-lessees received a notice of valuation last month.
The valuations are used to determine rates and land taxes on investment properties.
Typical residential land values were:
<ul>
<li>451 square metres at Alexandrina Court, Wattle Grove valued at $249,000 </li>
<li>428 square metres at Barnwell Place, Cecil Hills valued at $244,000 </li>
<li>467 square metres at Braidwood Drive, Prestons valued at $218,000 </li>
<li>556 square metres at Coonong Street, Busby valued at $196,000 </li>
<li>482 square metres at Forcett Close, West Hoxton valued at $228,000 </li>
<li>573 square metres at Geebung Court, Voyager Point valued at $316,000 </li>
<li>664 square metres at Longstaff Avenue, Chipping Norton valued at $340,000 </li>
<li>563 square metres at Weir Crescent, Lurnea valued at $216,000 </li>
</ul>
Typical commercial land values were:
<ul>
<li>1.3 hectares at Camden Valley Way, Casula valued at $3,000,000 </li>
<li>1,442 square metres at Elizabeth Drive, Liverpool valued at $800,000 </li>
<li>575 square metres at George Street, Liverpool valued at $796,000 </li>
<li>1,625 square metres at Cowpasture Road, Carnes Hill valued at $742,000</li>
</ul>
Typical industrial land values were:
<ul>
<li>9,194 square metres at Alfred Road, Chipping Norton valued at $2,750,000 </li>
<li>2,490 square metres at Heathcote Road, Moorebank valued at $754,000 </li>
<li>9,896 square metres at Riverside Road, Chipping Norton valued at $3,050,000 </li>
<li>1,859 square metres at Seton Road, Moorebank valued at $672,000 </li>
<li>1.5 hectares at Lyn Parade, Prestons valued at $3,450,000 </li>
<li>2,750 square metres at Avalli Road, Prestons valued at $897,000</li>
</ul>
Typical rural residential land values were:
<ul>
<li>2 hectares at Denham Court Road, Denham Court valued at $758,000 </li>
<li>2 hectares at Derwent Road, Bringelly valued at $550,000 </li>
<li>1.6 hectares at Overett Avenue, Kemps Creek valued at $60,600 </li>
<li>1.9 hectares at Rossmore Avenue, Rossmore valued at $611,000 </li>
<li>1.2 hectares at Sixth Avenue, Austral valued at $752,000</li>
</ul>
Typical hobby farm land values were:
<ul>
<li>40.5 hectares at Greendale Road, Wallacia valued at $1,780,000 </li>
<li>10.2 hectares at Greendale Road, Greendale valued at $675,000</li>
</ul>
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Liverpool in Sydney land values up 1% in three years: NSW Valuer-General

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“Home price slide hits mortgages”, “Increased number of homes with negative equity”, “Homes with negative equity on the increase”.
Just three headlines– from many – out of last week’s press.
Most articles started with variations of the following two sentences:
“The share of homes with mortgages worth more than the property’s value increased at the end of the last year as the housing market stalled and prices turned lower. The rise suggests an increase in negative equity, where a mortgage can be worth more than the value of a house.”
The Australian Financial Review – which really should know much better – started off by saying, “About one in seven Australian homes bought in the last five years is worth less than its purchase price. This potentially has pushed owners into negative equity.”
The source of this pessimism is data-provider RP Data and its 2011 December Quarter Equity Report. This report states that slower capital growth in the last five years, combined with more recent value falls, had left 16% of households (one in six, not one in seven, by the way AFR) bought in this period below their original price.
The document goes on further to say that:
<ul>
<li>Three out of four households with negative equity bought in the last five years.</li>
</ul>
<ul>
<li>The incidence of negative equity is highest in Queensland (12% or one in eight properties) and Western Australia (8.5% or one in 12 properties). Yet curiously, the Australian average sits at 16% or one in six, according to RPData.  Hmmm.</li>
</ul>
<ul>
<li>Negative equity is worst in north Queensland at 23% (or let’s say one in every fourth home); on the Gold Coast at 19% (or one in every fifth dwelling) and at 15% (or one in every sixth home) on the Sunshine Coast.</li>
</ul>
Yet the data provider states that this analysis does not look at debt levels by owners, only the price paid for properties and their estimated current value.
Now, before I reply to this nonsense, some facts about the Australian housing market.
<ul>
<li>According to RP Data – yes, the same RP Data – Australian dwelling prices, aggregated across the eight capital cities, rose by 8% in total over the last five years. Melbourne’s values rose the most, up 18%, while Brisbane’s fared the worst, falling by 6% since early 2008. Most of this fall was over the last 12 months and due largely to last year’s flood. Dwelling prices across regional Australia, according to our own work, have risen by 29% since the GFC.</li>
</ul>
<ul>
<li>According to AFG, the average loan to value ratio across Australia, as at March this year, is 68%. Yes, that means that most new borrowers have a third share or equity in the dwelling that they are purchasing.</li>
</ul>
<ul>
<li>Over the last five years, the average Aussie household has been saving 10% of its income. This has been done by paying off mortgages ahead of schedule, rather than reducing payments in concert with declines in interest rates.</li>
</ul>
<ul>
<li>Mortgage rates, while they have risen a little bit in recent weeks, have fallen by 2.5% (often more) since the GFC.</li>
</ul>
<ul>
<li>According to the ABS, last year, on average, households in Australia held asset values of $839,000, partially offset by average liabilities of $120,000. After adjusting for CPI, our current net average household wealth of $720,000 is 30% more than in 2004.</li>
</ul>
<ul>
<li>Equity in home ownership is about $300,000 across all Australian households, and accounts for 40% of total household wealth. Owner-residents – remember, these are official statistics and they measure actual debt levels, unlike RP Data’s study – enjoy owning, on average, four-fifths (81%) of their principal place of residence. For investors, the average equity holding is 74%.</li>
</ul>
<ul>
<li>In Queensland, the average equity for owner-occupation is 78% and for investment property is 63%.</li>
</ul>
<ul>
<li>And here is the kicker – for the 25 to 34 age cohort (i.e. first-home buyers), the average equity across Australia is 46% for owner-residents and 51% for those young ones smart enough to buy an investment property. For those aged between 35 and 44, it is 65% for owner-residents and 60% for investors.</li>
</ul>
So, what’s really left to say?
Firstly, journos need to get off their behinds, stop regurgitating the media releases put in front of them and start asking questions. Do you really think that one in every six dwellings out there has negative equity and one in every four on the Gold Coast, for example, owes more on their mortgage than what the property is actually worth? I mean really, come on. And if you are too young to own something, just ask your parents what they think.
On the commute home tonight, just look out the window and ask yourself how it could possibly be true that every sixth household is in major financial stress, what with the new cars in the driveway, the kids going to private schools, the overseas holidays and likely collections of tablets, smartphones and plasma TVs in every home.
While the general coverage of the RP Data report was misleading, it does raise important issues about current loan-to-value ratios. Many first-home buyers and investors borrow 95% plus mortgage insurance, so the loans were virtually 100% of the value of the property. Over the life of a traditional home loan, the reduction of principal is minimal at the beginning of the loan term, so some buyers might owe more than what their properties are worth, if they borrowed 95% plus within the last three to five years.
To <a href="https://matusikmissive.wordpress.com/2010/03/31/the-three-stooges/" target="_blank">argue </a>for higher minimum deposits, for example, might have been a more constructive way to air this data – and something you would expect from the country’s leading financial daily – rather than just scaremongering.
Moreover, as long as those people can afford the repayments, there is little real risk to homeowners.
Finally, too many property-related studies drive while looking in the rear view mirror. Things seen in the rear view mirror always look much larger than they really are.  Few drive looking out of the windscreen. Looking forward, higher rents are finally pushing first-home buyers into the market and also attracting investors. End prices will also, in due course, rise.
To quote a recent blogger in reply to one of the said articles above:
“People with a single live brain cell would understand that if you bought a house and stay there – negative equity has the same relevance to you as an exploding star in the parallel universe.”
I hate to get all cosmic with you, but that about wraps it up.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
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michaelmatusik-49YzLvdmNv

Negative equity talk is nonsense – and besides, it’s irrelevant 

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Apprehension from property buyers and sellers led to a notable reduction in stock and transaction volumes across Melbourne in 2011, triggering a decline in values by a reported 6%, according to the Australian Bureau of Statistics.
According to reports, fewer than 69,000 homes were sold in Melbourne, representing the lowest number of property sales in a decade and a drop of 37% from a peak of 109,000 transactions in 2007. This figure is well below the decade average of more than 90,000 transactions per annum.
Despite this, a more favourable performance is expected for the market in 2012, following improved affordability, subdued credit growth and a higher propensity of both groups to save.
In what is an encouraging sign for the market, Melbourne property showed marginal increases in median house and unit prices in the fourth quarter of 2011 to $550,000 and $455,000 respectively, after interest rate cuts in November and December.
The Reserve Bank's decision to leave cash rates unchanged in February affirms the strength of the local economy and will allow for a more moderate start to the property season.
Even with the anticipated improvement to sentiment, market performance will remain subject to sector-specific pressures in 2012. WBP Property Group’s property advisors have grouped each property type and forecasted its performance for the year ahead.
The luxury and mortgage-belt property segments were among the poorest performers in 2011, thanks to credit confidence and unemployment pressures. Although overall conditions have improved, these markets are susceptible to further decline. Properties prices of $2 million and above in areas of Stonnington and Boroondara, including Brighton and Black Rock, are predicted to fall up to 10%.
Mortgage-belt areas, such as Pakenham, Cranbourne, Melton and Clifton Springs, are set for price falls of up to 7%.
However, the news is optimistic for other areas of the established house market, which is tipped for positive growth in 2012. In particular, established houses priced at less than $2 million in well-regarded inner-suburbs such as Hawthorn, Kew, Richmond, Prahran and, slightly further afield, suburbs such as Ashburton, Camberwell, Hampton and Mentone, are expected to demonstrate growth of up to 3 to 4%.
Similarly established units and apartments situated in smaller developments in inner-city lifestyle locations will record a positive increase in growth in 2012. Areas include Armadale, Elwood and Hawthorn, where competition remains fierce for quality properties situated near Melbourne's “villages” and within a short commute of the CBD.
Conversely, modern units and established apartments in the CBD and Docklands are predicted to decline of up to 5%, with oversupply issues, lenders' pre-sale requirements and credit restrictions impacting saleability.
With discretionary spending expected to remain low in 2012, holiday properties are also predicted to continue to suffer with falls starting at five per cent and up to 10% for the leisure market.
In 2012, individual property performance will depend on location, size and aspect, particularly as buyers become increasingly selective. While current conditions remain favourable for buyers, they must be aware that not all properties represent sound investments.
Further afield, house prices in regional Victoria demonstrated overall growth of 0.8%, with a median price of $312,500. Figures for December show that Bendigo increased by 6.3% to $294,000, Ballarat increase by 3.7% to $290,000 and Geelong weakened by 2.3% to $380,000. However, be careful to do your research as much of the growth in these areas is artificial and driven by sales in new housing estates.
Tomorrow we will report on four Melbourne regions in the spotlight. 
Greville Pabst is CEO of the <a href="https://www.wbpproperty.com/" title="WBP Property Group" target="_blank">WBP Property Group</a>.
Photograph of Elwood village by <a target="_blank" href="https://www.ipostcodes.com.au/">iPostcodes.com.au</a> courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
 
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gpabst-nAfzC8fgsR

Melbourne housing market expected to improve in 2012, particularly in villages: WBP’s Greville Pabst

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Pre-sales make-up the core of many project marketing roles, and while the value and number of pre-sales required will vary from project to project, pre-sales as such are clearly an essential platform in the development cycle.
There is little doubt that the GFC and the continued jitters in financial markets <a href="https://www.propertyobserver.com.au/finance/borrowing-terms-to-remain-harshest-for-residential-developers-until-global-situation-improves-cba-head-of-credit/2012032553996">have intensified the focus on pre-sales</a> – it’s a reality that is not going to change any time soon.
In an increasing number of cases pre-sales can make or break the future of a proposed development. Consequently because pre-sales are now in most circumstances so closely tied to project financing, the success of a pre-sales campaign is more critical than ever before.
The need to secure early sales and hence finance has caused registration-of-interest (ROI) campaigns to move into a more deliberate part of the sales path, and only when contracts are exchanged will the campaign be seen as a success. It’s no longer good enough for the campaign to generate a database, the results have to be there, and in a staged project the developer will be a need to sustain an ongoing level of pre-sales and convert interest into secure sales.
Campaigns aimed at securing pre-sales can, however, be used in several ways, and how they are planned and managed needs to subtly change to fit varied conditions and markets.
They can be used to create a critical number of essential pre-sales, but there are other ways to use an ROI campaign. They can for example, also be used in a market with very precise targets to act to instil urgency in the minds a particular target audience – thus creating a foundation of pent-up demand.
On the other hand, while also creating a foundation of demand that benefits the developer, those purchasers who do get in early can reap great rewards by avoiding price rises due to the demand created.
In this type of market the use of whisper and off-market campaigns can be used and while still falling within the context of ROI campaigns, these are a highly specialised activity.
Understanding how important pre-sales are the job of creating a suitable ROI plan and then making sure it works to meet the core objectives that is securing contracted sales are the key to this entire topic.
At this early stage in this topic I also feel there is relevance to suggest that ROI campaigns might now being used a little too freely, and by being applied to almost any type and price range of project might not necessarily be a positive, and might have the impact, even if unintentional, of reducing the impact and value of ROI campaigns in the mind of buyers.
Peter Chittenden is managing director for residential of <a target="_blank" href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx">Colliers International</a>
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pchittenden-eLqUUC8TWW

The ways in which to use pre-sales and registrations of interest

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Over-spending on real estate is a temptation often hard to resist. It’s not an emotion restricted to houses, however as property is often the most expensive purchase most make in a lifetime – usually with the intention of making a profit from the proceeds – it’s a serious enough “habit” to ponder the psychology behind it.
This past week, the media has widely publicised RP Data’s research revealing that<a target="_blank" href="/news"> the number of home owners experiencing negative equity rose to 6.11% in December 2011</a> compared with the previous quarter, which came in at 4.9%.  The report measures “baseline” equity – so in other words, it doesn’t take into account debt levels, which are based on individual circumstance and correctly observes most owners are covering interest payments on their home loans, as well as paying down the principal.
It simply assesses the difference between what your home was worth then and what it’s worth now. A full breakdown of how RP Data collates the information is described on the company’s website and to give the company its due, it leads the way in such technology, taking into account not only location and property type, but also basic attributes of each listing such as number of bedrooms and so forth. However, while this is valuable – especially when analysing broad market movements – it cannot accurately assess why two properties with similar attributes including land size and location may differ quite considerably in their sale price – did one owner overpay? To answer this, a physical inspection and subsequent assessment is needed.
RP Data uses an “automated valuation model”, which it has assessed through “blind tests” to be “within plus or minus 15% of the actual sale price”. However, while automated models are gaining traction as a credible tool even among time-poor (and arguably underpaid) valuers (some of whom seem to think a quick “drive by” is enough to attain an accurate assessment of “real value), they simply cannot be relied upon for an assumption of current market value when the majority of Australia’s real estate market is made up of home buyers whose individual circumstance and needs are subject to attributes that can only be assessed physically.
Last year the national capital city median dropped 5.5% (RP Data), which is a big enough drop to instigate a degree of concern. Yet RP Data reveals that in assessing the disparity between the previous sale price of a home and its current market value, it can be anywhere up to 15% “inaccurate”.  Even if we’re generous and assume properties entered into the system fall closer to the mark being just 10% or maybe even 5% out in terms of real selling price, it’s not a good enough analysis to make an assumption of the exact number of properties in negative equity – which is precisely what RP Data has done.
When valuing a home, certain aspects cannot be ascertained by an automated valuation model. These include physical condition of the property, the “feel” of space, natural light and most importantly, the “emotional appeal” unique to each home buyer. All of these you can only assess via a physical inspection and yet all bear a significant impact on the final sales price.
Our lives are ruled by automated systems that churn out statistics that affect not only commodity prices, interest rates and market sentiment, but also bear an increasingly controlling effect on our society and the decisions we make for ourselves and families.  We’ve had a year during which on paper, the economy looks remarkably OK. Market sentiment has been blamed for the housing downturn, however large numbers of small businesses are struggling – numbers that are somehow missed in various statistical models or eclipsed by the mining boom. This is not to dismiss the importance of transparent data; I’m simply drawing a line between where this data is useful and where it becomes an unnecessary and inaccurate intrusion affecting the paths we take.
Property is an emotional purchase where beauty is commonly in the eye of the beholder.  Spend enough time assessing a location, walking through open homes, attending auctions, gaining access to accurate sales data, and understanding the demographics of the area-specific buying market and what may drive one property to sell higher than another, and you’ll get easily within 5% accuracy on a property’s sales price 95% of the time – something an automated model cannot independently achieve.
This is one reason why buyers’ advocates are becoming an obvious option for the time-poor who don’t have the energy to do the necessary legwork I’ve described above.
We also need to bear in mind, in some states – such as Victoria – there’s still not open disclosure to the general public of “private” sales data aside from listing the street and suburb – further details revealing the exact house number are limited to licensed estate agents, therefore any detailed research in the public domain is limited to properties that have been auctioned (of course, assuming those prices are not listed as “undisclosed”).
 
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However, for a home buyer, the assessment on how much to pay for a property is an emotional issue. What a house may be worth to one buyer is not an indication of what it’s worth to another. I’ve attended a surprisingly high number of auctions during which the next-door neighbour has been bidding for the home. Obviously a sale of land that has the potential to dramatically increase the value of the neighbouring house or apartment is worth significantly more than it would be to an average home buyer. Therefore overpaying and subsequently experiencing negative equity in such circumstances is consequential and should not be a concern considering the long-term benefit to the holder.
So are we really looking at 6.4% of homes in negative equity? Well, considering we’ve just been through a year with turnover has been at its lowest level for a decade and a drop in median value that has – in some areas and suburbs – eclipsed 10% or even 15%, there’s no doubt that those who purchased some three years ago at the peak of the market will be wondering if they didn’t over pay comparatively to today’s prices. Additionally, there are always those who didn’t research the market closely enough before jumping in, got carried away at auction and arguably overpaid. I see this often enough to genuinely believe that every home buyer should be diligent enough to get qualified independent advice prior to purchasing.
Other concerns on price paid include the number of off-the-plan sales, which are fast rising in number. Trying to value an unfinished product considering the considerable and temporary oversupply is hard at the best of times – therefore in answer to the question above, we can assume there is certainly a number of properties that are currently experiencing negative equity.
The report suggests there are some – albeit 1% – who have owned their homes for over 10 years that are looking at lower values. I would find this hard to perceive in any capital city area unless we’re assessing a location affected by floods or a regional location, therefore the exact breakdown of these results would need to be assessed further to draw conclusion. Therefore in short, yes, there are numbers who may be suffering a temporary period of negative equity, but to assess how many is quite simply impossible outside of a broad estimation (even “guess-timation”).
Aside from what I’d assess to be a report that is more of an assumption than accurate representation, there is a tendency to overpay for real estate that resides deeply in every home buyer’s psychological makeup. I’ve worked with many investors and owner-occupiers with budgets ranging from $300,000 to in excess of $4 million.  Without fail, all desire one step more than they can reasonably afford and the more money they have to play with, the more grandiose expectations become. You can somewhat understand it when dealing with a first-home buyer or a family who need a house but can only extend to a unit. Genuinely “needing” more than the budget can afford is a frustrating hazard of a rising population.
However, it’s a little harder to relate to at the other extreme and no better is it demonstrated than in those who commonly have the purchasing power to own modern man’s equivalent of the ancient castle. This is also the demographic most likely to experience negative equity when trying to sell in a downward cyclical phase.
As <a href="https://www.propertyobserver.com.au/residential/australia-s-housing-market-could-crash-if-property-s-primary-purpose-is-forgotten-catherine-cashmore/2012030553684">I’ve pointed out in previous articles</a>, since history began, housing has been an integral part of the most valuable asset man desired, fought over, possessed and in many cases died for. Land was – and has always been – the ultimate symbol of power and wealth, and owning it often holds more significance for the vendor than can be assessed in monitory value alone. In this instance, it’s not so much about need for shelter, but desire to exhibit status, and the higher the price paid, the greater the risk involved. For example, head out to the suburbs surrounding the capital that fall into the highest median price bracket, with large land sizes complete with McMansions – suburbs such as Toorak in Melbourne and Point Piper in Sydney – and the buyer market diminishes considerably. The further away from the median price bracket you get, the more volatility experienced.
Supply verses demand is what fundamentally drives market activity, therefore the less demand you have, the less opportunity for price appreciation. In a downward cycle, multimillion-dollar real estate will be forced to drop further in price in order to sell. Therefore if you’re a bargain hunter, pick the right time, and this isn’t a bad place to start! Once the cycle turns, these areas will re capture the greatest gains in median value and make a tidy profit for the astute buyer who “timed the market”.
Meanwhile, to each and every home buyer, considering we have not experienced anything near to a 40% drop in median value as exhibited in areas of the US and strong indications suggest we’re unlikely to for some time to come, you can assume any talk of negative equity affecting your property is a consequence of what a computer has assessed, not a home buyer. Once computers get to the level demonstrated in the film I, Robot I’ll take a little more notice.
 
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on <a href="https://ten.com.au/the-circle.htm">The Circle</a> and a senior consultant for <a href="https://www.nationalpropertybuyers.com.au/">National Property Buyers</a> servicing the needs – Australia wide – for home buyers and investors.
 
 
 
 
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Negative equity hurting McMansion owners, but most home owners needn’t worry

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<img src="/images/stories/10989.gif">
The number of properties available to rent in Melbourne, which has a vacancy rate of 3%, according to SQM Research. This is down from 12,719 in January but up from 9,998 at this time last year.
 
<hr>
 
<img src="/images/stories/7972.gif">
The number of properties available to rent in Sydney, which has a vacancy rate of 1.5%, according to SQM Research. This is down from 8,456 in January but up from 6,894 at this time last year.
 
<hr>
<img src="/images/stories/4665.gif">
The number of properties available to rent in Brisbane, which has a vacancy rate of 1.6%, according to SQM Research. This is down from 5,112 in January but up from 4,479 at this time last year.
 
<hr>
<img src="/images/stories/2219.gif">
The number of properties available to rent in Adelaide, which has a vacancy rate of 1.3%, according to SQM Research. This is down from 2,231 in January but up from 1,657 at this time last year.
 
<hr>
<img src="/images/stories/973.gif">
The number of properties available to rent in Perth, which has a vacancy rate of 0.6%, according to SQM Research. This is down from 1,084 in January and from 1,567 at this time last year.
 
<hr>
<img src="/images/stories/637.gif">
The number of properties available to rent in Hobart, which has a vacancy rate of 2.3%, according to SQM Research. This is up from 583 in January and from 266 at this time last year.
 
<hr>
<img src="/images/stories/313.gif">
The number of properties available to rent in Canberra, which has a vacancy rate of 0.7%, according to SQM Research. This is downfrom 382 in January and from 285 at this time last year.
 
<hr>
 
<img src="/images/stories/184.gif">
The number of properties available to rent in Darwin, which has a vacancy rate of 0.7%, accordign to SQM Research. This is down from 238 in January but up from 540 at this time last year.
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How much stock is available to rent in your capital city? A state-by-state analysis: SQM Research

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Houses took an average of just 18 days to sell in Chippendale – the fastest-selling locality in NSW, according to RP Data. This is seven days quicker than the next fastest-selling locality, Beverley Park, where it took 25 days to sell a house. Property Observer notes there were just 17 houses sold in Chippendale last year.
<table width="213" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="133">
Locality
</td>
<td valign="bottom" nowrap width="80">
Days on Market
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Chippendale
</td>
<td valign="bottom" nowrap width="80">
18
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Beverley Park
</td>
<td valign="bottom" nowrap width="80">
25
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Edgecliff
</td>
<td valign="bottom" nowrap width="80">
28
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Regentville
</td>
<td valign="bottom" nowrap width="80">
28
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Old Toongabbie
</td>
<td valign="bottom" nowrap width="80">
31
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Bangor
</td>
<td valign="bottom" nowrap width="80">
32
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Lane Cove North
</td>
<td valign="bottom" nowrap width="80">
34
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Revesby Heights
</td>
<td valign="bottom" nowrap width="80">
34
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Padstow
</td>
<td valign="bottom" nowrap width="80">
35
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Waitara
</td>
<td valign="bottom" nowrap width="80">
35
</td>
</tr>
</tbody></table>
 
Source: RP Data
 
 
 
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Chippendale fastest-selling locality in NSW: RP Data

<html><body>Australian Property Monitors (APM) has released a list of results from 339 auctions in Sydney for the weekend of March 24. The clearance rate was 60%. <a href="https://www.homepriceguide.com.au/saturday_auction_results/Sydney.pdf" target="_blank"> Click here</a> for the auction results, and click on each street address to see the property's marketing.</body></html>

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APM's 339 Sydney auction results showing a clearance rate of 60%

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Australian Property Monitors (APM) has released a list of results from 338 auctions in Melbourne for the weekend of March 24. <a style="font-size: 14px; text-align: left;" href="https://www.homepriceguide.com.au/saturday_auction_results/Melbourne.pdf" target="_blank">Click here</a> for the auction results, and click on each street address to see the property's marketing.
 
 
 
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APM's 338 Melbourne auction results 

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The auction clearance rate improved slightly in both Sydney and Melbourne over the weekend ahead of next weekend’s pre-Easter super Saturday weekend.
Melbourne achieved a clearance rate of 61% over the weekend, compared with 59% last weekend and 59% over the same weekend in 2011.
“The level of demand this weekend is consistent with the performance of the market over the last two months and provides an indication about how it will perform over the winter months,” says Enzo Raimondo, CEO of the Real Estate Institute of Victoria. “From the perspective of auction volumes this fortnight marks the high point for the market this year, with around 1,870 homes expected to be offered for sale,” he says.
Next weekend 1,050 auctions are expected in Melbourne. The following weekend has only 40 auctions scheduled due to the Easter holiday.
St Kilda, the busiest suburb this past weekend with 17 auctions came close to matching the Melbourne average, with a 59% clearance rate. Eight properties sold at auction and two sold ahead of auction, with the most expensive being a four-bedroom unit on Marine Parade that sold for $625,000.
There were fewer buyers willing to meet the reserve price in Richmond, the second busiest Melbourne suburb of the weekend. It managed a clearance rate of just 43%, with six sold and eight passed in. The most expensive property was a four-bedroom house on Griffiths Street that sold for $1.08 million through Biggins Scott.
Kieran Whaley, director of Barry Plant Ivanhoe and Rosanna, tweeted that his team had sold four out of five properties on Saturday, with “all smashing reserves”.
The Melbourne property market performed dependably for yet another week, notes WBP Property Advisory.

“These results are consistent with recent weeks where quality real estate continues to transact because of strong demand and average properties demonstrate difficulty in attracting buyers, resulting in increased pressure on vendors to reduce asking prices. “This provides a level of predictability and greater certainty regarding price expectations for buyers and sellers,” WBP’s Greville Pabst says.
Sydney’s auction clearance rate improved to 60.3% over the weekend, with 205 properties sold out of 302 auctions. This is up from 56.4% last weekend and slightly up on the 59.6% achieved for the same weekend last year.
The top sale of the weekend was a four-bedroom house on Goodhope Street in Paddington that sold for $4.9 million through McGrath Edgecliff.
The median auction price for houses was $845,000 and $580,000 for units.
Cooley Auctions managed a 52% success rate in Sydney, with 26 out of 50 properties selling over the weekend.
Cooley’s most notable sale was a one-bedroom apartment in Circular Quay with “breathtaking views over Sydney Harbour Bridge” that sold for $1.5 million through Morton &amp; Morton.
Stephen Nell, chief executive of Ray White NSW, tweeted the success of Ray White Castle Hill, which sold three out of a five properties.
 
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