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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 higher numbers of Australians heading overseas on holiday and doing their shopping there is having a more damaging effect on the retail sector than online shopping, according to BIS Shrapnel managing director Robert Mellor. 
Mellor said internet shopping was an important factor in the current challenges facing retail, but stressed that the “lost dollars” from people travelling and spending overseas was a “more critical factor” in the current soft market during an address in Melbourne recently. 
According to the Australian Bureau of Statistics, the number of Australians travelling abroad rose to 7.8 million in 2011, and Australians took nearly 2 million more overseas trips in 2011 than they did in 2010. 
A survey released by Roy Morgan in October last year showed that overseas travel intentions are at their highest point in five years, with one in 10 Australians planning to go abroad in 2012.
BIS Shrapnel is forecasting a stabilisation in retail construction in 2012-13 with building commencements rising 7% to $4.65 billion in 2012-13 following a contraction of 11% to $4.35 billion in 2011-12.
Click to enlarge
<a href="/images/stories/bismarch26.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/bismarch26thumb.gif"></a>
“[Retail property investors] have been cautious due to the current softness in retail sales growth,” Mellor says. 
“We won’t see a surge in investment but a stabilisation,” he says. 
BIS Shrapnel chief economist Frank Gelber says speciality stores, which provide retail landlords with their “bread and butter” rents, are doing it tough at the moment. 
“We have actually seen a lot of people walking away from their leases and not renew them for the first time in a very long time. 
“Some of it is cyclical and some is structural due to the consequences of online shopping and more Australians spending their money overseas than here,” Gelber says. 
The latest March BIS Shrapnel bulletin notes that the retail sector has a struggled since early 2011, with a relatively sharp slowdown in the rate of retail turnover growth. 
“This weakness reflects a range of interconnected factors, most significantly the loss of government stimulus, a weakened and volatile economy and a high Australia dollar which is intensifying overseas online shopping competition,” says the BIS Shrapnel March 2012 Building Industry Prospects report. 
The research firm expects consumer confidence to gradually improve over 2012, which will flow into retail sales. 
“With no fundamental oversupply of retail space, improving confidence will aid investment decisions, particularly for larger retail centres. Bulky good related construction is expected to persist at a high level,” says BIS Shrapnel in its March outlook bulletin. 
According BIS Shrapnel, the 2011-12 result would be weaker, if not for the commencement of high-end developments such as the $200 million Indooroopilly Shopping Centre expansion in Brisbane and $400 million Melbourne Emporium project. 
“Also, despite the weakness, a number of major retailers have pushed forward with aggressive expansion plans including ALDI, Woolworths (especially with new Masters hardware chain), Westfarmers (Coles) and Costco. As a result, bulky good and to a lesser degree smaller neighbourhood shopping centre retail construction has performed strongly. 
“Conditions in the retail sector are expected to gradually improve into 2012-13, which is expected to flow into warehouse space requirements and improved business confidence. Activity is still heavily reliant on pre-commitments with limited speculative development evident, and this is expected to continue,” the report says. 
“The strongest market through to 2012-13 is forecast to be NSW, with the value of building works set to expand by 27%.” 
BIS Shrapnel notes there are “quite a number of shopping centre redevelopments proposed in Sydney, and as trading conditions improve, one or two of these is anticipated to commence”. 
Currently the two biggest retail projects are both being undertaken by Stockland – the $130 million redevelopment of Merrylands (stage 3 and 4) in Western Sydney and the $180 million redevelopment of the Shellharbour Retail Centre near Wollongong. 
There is also expected to be a strong 17% surge in retail construction in WA in 2012-13, with the  strength of the state economy continuing to support investment “as excess capacity is quickly absorbed”. 
“Strong population and wage growth will result in solid retail spending growth, supporting investment in retail building,” says BIS Shrapnel. 
In Victoria, retail construction is expected to fall modestly in 2011-12 (-4%) even with construction of the $400 million Melbourne Emporium development now underway. 
In Queensland, with retail construction already at a high base and the $200 million Indooroopilly Shopping Centre Expansion the only major project expected to commence in 2011-12 in Queensland, retail building is forecast to contract by 30%.
 
 
 
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lschlesinger-FZcF9M3vE6

Overseas travel more damaging than online shopping to Australian retail: BIS Shrapnel

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There's now a website, <a href="https://www.propertytycoon.com.au/" target="_blank">www.propertytycoon.com.au</a>, where punters can guess auction results in Melbourne, Sydney and Brisbane, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener.
Although the Brisbane auction market has been showing signs of life in recent weeks, this week all five properties featured on auction tipping competition Property Tycoon were passed in.
“The clear message coming from the Brisbane market is the auction system is not being used to sell property under the hammer but to flush out a buyer and negotiate afterwards,” says Mark Armstrong of Property Tycoon.
The Melbourne property in the competition featured on Property Observer last week, 14 Airlie Avenue, Prahran (pictured below) fared better.
<img src="/images/stories/airlie.jpg">
“A large crowd of around 100 turned out for the auction at 14 Airlie Avenue, Prahran, but although many parties had shown interest in the property only two were prepared to put up their hand when the auction started,” Armstrong says.
“One bidder was very strong and clearly wanted the property. It was passed in to him at $2.5 million and after a short negotiation it sold for $2.65 million.
<img src="/images/stories/wycombe.jpg">
But the Sydney unit at 1/95 Wycombe Road, Neutral Bay was passed in on a vendor bid of $1.55 million.
 
 
 
 
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cknowlton-QnEa6ntUYP

Brisbane market struggles to maintain momentum, with all five Property Tycoon properties passed in

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Lord Alistair McAlpine of West Green, the down-to-earth Broome visionary, was back in the Kimberley region for the first time in a decade.
And he liked what he saw, with one caveat.
“It’s important the planners stick to the ‘no higher than a palm tree’ height principle when it comes to new development,” he told Property Observer before departing Broome last Friday.
Describing the heat during his six-day visit as like a very gentle sauna, McAlpine, the treasurer of the British Conservative Party under Margaret Thatcher, was there to be recognised by the shore for his contribution to putting the place on the tourism map.
Once dubbed by the eastern states press as "Lord Of The Bush", he was formally recognised at a ceremony last week given the presentation of the shire's highest honour, Freeman of the Municipality.
Coming to buy seashells, he first visited the former pearling town in 1979 and was taken with it – albeit describing it as a derelict town.
<img src="/images/stories/suncinemas.jpg">
Within hours of arriving in the Kimberley town he’d purchased a cottage, then the Sun Cinemas (pictured above), and within a few years he'd started a zoo and a luxury resort.
He had been building Perth property since the mid-1960s including construction of the Pamelia hotel through his family business.
His acquisitions of Broome properties – many of the best of the pearling master's cottages – got up into the 20s.
“Without its old houses, Broome was nothing,” the softly spoken McAlpine told Property Observer.
<img src="/images/stories/cablebeach.jpg">
His biggest acquisition was the Cable Beach property – then a caravan park and sewer – which is now the Cable Beach Resort (pictured above). It was bought quite informally – a beer mat contract – at the Roey pub.
“The Cable Beach Resort is far better than in the past,” McAlpine acknowledged.
Broome, set in one of Australia's great wilderness areas, is easily isolated.
McAlpine’s exit from the town came in the wake of the debilitating 1989 pilots’ strike, and he said he might still be there but for it.
“It’s greatly improved since my day,” he said, dressed dapperly in earthy colours that matched the geographical locality, but perhaps not suiying the temperature.
“The town has developed very well, but it’s not there yet.
“There’s a lot more buildings, but not much has changed.”
‘It’s a mature town, but I’ve been impressed by the restraint. They’ve stroked it terrifically,” he said.
He says there’s a need for more foliage in the town.
During a public gathering he was quizzed on the impact arising from the development of a gas project at James Price Point.
“Resources will be a short-term thing,” he suggested.
But he indicated he was more concerned at the prospect of eco-hotels opening up through the Kimberley and people arriving to them on buses and in gas-guzzling four-wheel drives.
He is keen for railway lines to be constructed in the region. He suggests a railway line from Meekatharra to Broome and onto Darwin and a narrow gauge rail line from Broome up to Cape Leveque on the Dampier Peninsula.
In 2010 he stepped down from his seat in the House of Lords.
<img src="/images/stories/mcalpine1.jpg">
Photographs by Jonathan Chancellor
He lives with his wife, Athena (pictured above), in southern Italy, which he says has a similar dry climate, owning a haute bed-and-breakfast, the 15th-century Il Convento di Santa Maria di Costantinopoli, in Apulia.
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jchancellor-FAypfDUnLy

Lord Alistair McAlpine returns to Broome and urges tourism development stay below the palm tree line

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Australia today is missing a hidden key ingredient in identifying just why our productivity remains in a spiralling decline. As a real estate agent, I speak with many purchasers on a daily basis, and a common theme keeps resonating through – yes, we are experiencing a mining boom. But on the other hand we are clearly right in the middle of a “white-collar” recession, which clearly identifies a conservative economic holding pattern while weathering this storm.
It is an unknown of whether this storm will pass with minimal damage or inflict massive destruction of cyclonic proportions. Personally, I lean towards a holding pattern that will deliver minimal growth with households continuing to suppress expenditure.
Many businesses are facing savage headwinds in the form of a strong Australian dollar and consumers reducing their household spending while focusing on being actively employed until our markets start performing again – which, in all probability, could be until the next federal election in 18 months.
Productivity growth has been weak in recent years, which has lowered Australia’s potential growth rate. Our estimates suggest potential growth was 3.5% to 3.75% per annum for 2000 to 2005, but it is closer to 2.5% to 2.75% now. Without a pick-up in productivity, Australia will probably have to accept lower GDP growth, higher unemployment and higher interest rates.
Construction for new home starts in the December quarter came in at 33,700, which is equivalent to the number of starts recorded in the early 1970s. Reserve Bank of Australia deputy governor Philip Lowe recently noted that the GFC has brought about a consumer mood swing, and the days of inflating earnings by relying on capital gains in assets are no longer. Households are now experiencing life after an unprecedented two decades of economic growth.
GDP growth has been below 3% since 2008, inflation sits around the RBA mid-point of 2.5%, unemployment remains static with a possibility it may start spiking upwards, and house prices, just like share prices, indicate clearly we have asset price deflation. RP Data announced that in the December quarter 2011 that 6.4% of homes were in negative equity, up from 4.9% in the previous quarter.
This statistic identifies why I am against first-home buyer’s grants given we are not building enough properties to meet demand – hence upward spiralling rents. These grants are much like throwing lollies on to a highway – resulting in huge road toll.
The Gillard government is abolishing the popular living away from home allowance (LAFHA) from July 2012 – Treasurer Wayne Swan said “the tax exemption for living away from home was being rorted by highly paid executives and foreign workers”. So at a time when we have a severe skills shortage within Australia from July, Australia won’t be able to attract any overseas employees? This will then place Australian businesses under greater pressures given these 457 visa holders will now seek employment elsewhere outside Australia. The government will save approximately $350 million based on a $7 billion shortfall in tax revenues in 2011-12.
This decision will have a huge impact on rental markets as 457 visa holders leave our shores – this will definitely impact our rental markets (especially houses.) The LAFHA will significantly impact many businesses, as this was previously used to entice overseas staff to Australian businesses due to our skills shortage. The result will be that Australian businesses will be faced with higher costs, which in turn will result in lower productivity given that they will remove this facility from their business models.
This decision comes at a time when finally NSW is out-performing all the other non-mining states for the first time in over a decade. Analysis of the national accounts identifies that for the 11 years before June 2011, NSW’s annualised demand growth was a percentage point lower than all the other non-mining states.
The O’Farrell NSW government is finally looking at reducing its exorbitant payroll tax rate, which currently stands at 5.45%. This is hardly completive with Victoria at 4.9% and Queensland at 4.75%.
Given the Gillard government’s decision to scrap the LAFHA, NSW urgently needs to assist business by enticing employees to what was once considered Australia’s greatest state. I refused to use “premier state” given the previous premiers helped destroy it.
Look no further than last weekend’s Queensland election to see how an unhappy electorate can destroy a once strong and proud political party. Queensland Labor, just like NSW Labor, will in all probability never recover.
It all comes down to taking care of business – they pay the bills and the taxes (as do their employees).
Not since the recession of the early 1990s has Australia seen such a “white-collar” economic malfunction, The RBA needs to act immediately and shave aggressively 125 basis points from the cash rate.
If the RBA is independent, why does the elected federal government appoint all the board members?
 
Robert Simeon is a director of <a title="RWM" target="_blank" href="https://www.rwm.com.au/">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. He has also been writing real estate blog <a title="Virtual Realty News" target="_blank" href="https://www.rwm.com.au/news/">Virtual Realty News</a> since 2000. The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
 
 
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Government changes and interest rate cuts needed to fight Australia’s white-collar recession

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Department store group David Jones endured a lacklustre six months of retail trading, reporting 20% drop in interim profits and a 6.7% drop in sales for the six months to January 29, 2012 compared with the same period in 2011.
The retailer occupies prime space in some of Australia’s biggest shopping centres, and its performance will be closely monitored by retail property investors and landlords.
These are the numbers you need to know:
<img src="/images/stories/36star.gif">
The number of David Jones department stores in Australia
 
<hr>
 
<img src="/images/stories/34.gif">
The number of store premises David Jones rents from retail landlords
 
<hr>
 
<img src="/images/stories/2.gif">
The number of store premises owned by David Jones – Elizabeth Street (Sydney) and Bourke Street Mall (Melbourne)
 
<hr>
 
 
<img src="/images/stories/462point5.gif">
The total value of land, building and integral plant facilities owned by David Jones
 
<hr>
 
 <img src="/images/stories/1point01b.gif">
The total value of sales achieved by David Jones during the first half of the 2012 financial year, compared with $1.08 billion in previous corresponding period.
 
<hr>
 
 
<img src="/images/stories/6.gif">
The number of DJ stores in the development pipeline.  Of these two are under construction: Highpoint (Melbourne), which is scheduled to open in the first quarter of 2013, and Indooroopilly (Brisbane), which is scheduled to open in the first quarter of 2014. There are four where DJs has signed  “agreements to lease”: Macquarie (NSW), Whitford (WA), Pacific Fair (south-east Queensland) and Sunshine Plaza (south-east Queensland)
 
<hr>
<img src="/images/stories/40m.gif">
The forecasted annual sales revenue for David Jones Indooroopilly in its first year of operation in 2014
 
<hr>
 
<img src="/images/stories/42000sqm.gif">
The gross lettable area of David Jones stores in the development pipeline, the biggest being Pacific Square at 14,500 square metres
 
<hr>
<img src="/images/stories/93point4m.gif">
DJ’s lease and occupancy expenses for the six months to January 29 2012
 
<hr>
 
<img src="/images/stories/5point7percent.gif">
The increase in DJ’s lease and occupancy expenses for the six months to January 29, 2012 compared with the previous corresponding period
 
<hr>
 
<img src="/images/stories/15.gif">
The number of David Jones department stores in NSW. These are Elizabeth Street, Sydney; Chatswood Chase; Newcastle; Market Street, Sydney; Hornsby, Parramatta, Bondi Junction, Kotara, Tuggerah, Burwood, Macarthur Square, Warringah Mall, Castle Towers, Miranda, Wollongong
 
<hr>
<img src="/images/stories/7n.gif">
The number of DJ department stores in Queensland. These are <a href="https://www.davidjones.com.au/stores/Queens-Plaza">Queens Plaza</a>; <a href="https://www.davidjones.com.au/stores/Garden-City-QLD">Garden City (QLD</a>); <a href="https://www.davidjones.com.au/stores/Carindale">Carindale</a>; <a href="https://www.davidjones.com.au/stores/Robina-Town-Centre">Robina Town Centre</a>; <a href="https://www.davidjones.com.au/stores/Toowong-Village">Toowong Village</a> and <a href="https://www.davidjones.com.au/stores/Chermside">Chermside</a>
 
<hr>
<img src="/images/stories/5.gif">
The number of David Jones department stores in Melbourne. These are <a href="https://www.davidjones.com.au/stores/Bourke-Street-Mall">Bourke Street Mall</a>; <a href="https://www.davidjones.com.au/stores/Doncaster">Doncaster</a>; <a href="https://www.davidjones.com.au/stores/Southland">Southland</a>; <a href="https://www.davidjones.com.au/stores/Chadstone">Chadstone</a> and <a href="https://www.davidjones.com.au/stores/Glen-Waverley">Glen Waverley</a>
 
<hr>
<img src="/images/stories/4.gif">
The number of David Jones department stores in Western Australia. These are <a href="https://www.davidjones.com.au/stores/Hay-Street-Mall">Hay Street Mall</a>; <a href="https://www.davidjones.com.au/stores/Garden-City-WA">Garden City (WA</a>); <a href="https://www.davidjones.com.au/stores/Karrinyup">Karrinyup</a> and <a href="https://www.davidjones.com.au/stores/Claremont-Quarter">Claremont Quarter</a>
 
<hr>
<img src="/images/stories/3.gif">
The number of David Jones department stores in South Australia. These are Adelaide Central Plaza; Marion and West Lakes
 
<hr>
 
<img src="/images/stories/2.gif">
The number of David Jones department stores in South Australia. These are Canberra Centre and Woden
 
<hr>
<img src="/images/stories/2.gif"> 
The number of DJ “rack” discounted clearance stores. These are David Jones Warehouse - Birkenhead Point (Sydney) and David Jones Warehouse Harbour Town (Gold Coast)
 
*David Jones says it has 36 department stores but only lists 35 on its store locator website. Property Observer is awaiting clarification from David Jones.
Photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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David Jones retailing and property by the numbers

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Residential property developers will continue to have to pay a premium and achieve high off-the-plan presales to access the funding required to build their projects, according to the Commonwealth Bank.
Commonwealth Bank chief credit officer Ross Griffiths says banks continue to look for pre-sales of 100% “or even more in some cases” before considering providing financing.
In its March 2012 property outlook report, BIS Shrapnel noted that majority of developers and purchasers chose to remain on the sidelines in the uncertain economic climate in the past financial year. 
“The uncertain economic environment continues to place financing constraints on developers, with high levels of pre-commitments still necessary to secure funding in many instances.
“Whilst this is less evident for the larger developers who are able to borrow on a corporate basis as opposed to a project-by-project basis or even finance their projects in-house, speculative development by smaller developers has been much harder hit,” says BIS Shrapnel.
The major banks have taken over as financiers of residential developments after the withdrawal of non-banks and foreign lenders due to the high cost and high risk of funding property developments.
In addition to the requirement that they sell out their developments, property developers are also being asked to provide multimillion-dollar deposits ranging from 20% to 30% of the project cost.
According to Griffiths, borrowing costs will remain high amid the volatile economic environment and tougher regulatory requirements under Basel II and even tighter requirements under future Basel III rules.
“Unless the global markets become awash with funds,” there would be no improvement to the funding problems afflicting much of the property sector,” Griffiths said at The Australian Financial Review Commercial Property Conference last week.
Griffiths says banks are holding cash of $110 billion, on which they are making “little or no margin”.
“So the cost of our funding, if we are not able to lend it out, is much higher. We have that extra liquidity sitting there earning nothing just to make sure we can continue to lend ourselves.”
Griffiths says banks are providing funding at 200 to 300 basis points above the cash rate.
At the same time as Griffith has warned that lending rates will remain high, ANZ boss Mike Smith has been in Hong Kong reassuring Asian investors about the overall health of the Australian housing market.
In his presentation Smith highlighted that Australian households remain well-placed to service their mortgages.
He also sketched out the differences between the Australian market and the US market such as the fact that all mortgage lending is full recourse with loan-to-valuation ratios averaging less than 50%.
Figures released by RP Data show for the December 2011 quarter show that 6.4% of Australian homes were valued at less than their purchase price up from 4.9% in negative equity in the previous September quarter.
 
 
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Borrowing terms to remain harshest for residential developers until global situation improves: CBA head of credit

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The total land value of Moree Plains Shire increased 35% from 2008 to 2011, driven up by strong growth in rural land values, according to NSW Valuer-General Philip Western.
The combined land value of the 6962 properties in the shire was $3.368 billion in July 2011, up from $2.499 billion in 2007.
Larger cropping land and mixed farming and grazing land values had a moderate increase over the four years, with irrigation lands experiencing a slight increase in value.
Former grazing properties west of Moree, which were recently converted to cultivation land, had a strong increase in land values.
Hobby farms had a slight increase in land values, with sites smaller than one hectare surrounding the villages experiencing strong increases.
The village areas of Mungindi and Pallamallawa had a moderate increase in land values, while village land in Boggabilla experienced strong increases.
<img src="/images/stories/moreeplainsmap.gif">
These overall increases in rural prices came despite a 0.5% drop in median rural land prices from 2010 to 2011 from $603,000 to $600,000.
The land value of residential, commercial and industrial land has generally in the shire remained steady.
From 2010 to 2011 median business land prices increased 1% from $96,100 to $96,900 while median residential land prices stayed at $30,800 and median industrial land prices at $102,000.
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>664 square metres at Barwon Avenue, Moree valued at $5,000 </li>
<li>646 square metres at Brigalow Drive, Moree valued at $38,500 </li>
<li>1,370 square metres at Callaille Avenue, Moree valued at $115,000 </li>
<li>767 square metres at Oak Street, Moree valued at $10,500 </li>
<li>974 square metres at Queen Street, Moree valued at $65,000</li>
</ul>
Typical commercial land values were:
<ul>
<li>396 square metres at Balo Street, Moree valued at $187,000 </li>
<li>891 square metres at Frome Street, Moree valued at $98,000 </li>
<li>1,012 square metres at St George Street, Mungindi valued at $4,340</li>
</ul>
Typical industrial land values were:
<ul>
<li>2,574 square metres at Greenbah Road, Moree valued at $152,000 </li>
<li>5,489 square metres at Industrial Drive, Moree valued at $102,000</li>
</ul>
Typical rural land values were:
<ul>
<li>571 hectares at Terry Hie Hie Road, Moree valued at $1,860,000 </li>
<li>1,056 hectares at Ulinga Road, Garah valued at $1,540,000</li>
<li>394 hectares at Terry Hie Hie Road, Terry Hie Hie valued at $1,420,000 </li>
<li>1,297 hectares at Talmoi Road, Garah valued at $2,590,000</li>
</ul>
Typical rural residential land values were:
<ul>
<li>2.7 hectares at Tranquility Road, Moree valued at $110,000 </li>
<li>41.5 hectares at Burrington Road, Moree valued at $147,000 </li>
<li>5,066 square metres at Myora Street, Moree valued at $15,000</li>
</ul>
Typical hobby farm land value was:
<ul>
<li>57.4 hectares at Mosquito Creek Road, Pallamallawa valued at $208,000</li>
</ul>
Typical village land values were:
<ul>
<li>2,023 square metres at Bucknell Street, Mungindi valued at $1,970 </li>
<li>2,011 square metres at Yeoman Street, Boggabilla valued at $5,500 </li>
<li>2,023 square metres at Bingera Street, Pallamallawa valued at $16,900</li>
</ul>
 
 
 
<ul></ul>
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Mooree Plains land values increased 35% in three years, driven by strong rural growth

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The Australian housing market has already enduring the ultimate test and is sturdy enough to sustain the current market pressures, says Commonwealth Bank chief economist Michael Blythe.

He says the Australian housing market went through “ultimate test” a few years ago in the wake of GFC and “came out the other side in relatively good shape”.

“That’s probably the best indication that we’ve not got a genuine bubble as we know them from historical experience.

“As an economist, I have to believe in the laws of supply and demand, and supply and demand in the Australian housing market is in a position to at least keep a floor under prices,” Blythe said as part of a panel discussion at the recent Australian Banking and Finance Mortgage Innovation Forum in Sydney 

According to Blythe, talk of housing bubbles is nothing new and particularly comes up at times when the market is under pressure.

He says talk of an Australian housing bubble dates back to 2004.

“It’s been a persistent theme and a persistent question we get from clients, particularly from those offshore,” he said.
 
 
 
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Australian housing market sturdy and there is no bubble: CommBank’s Michael Blythe 

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Research conducted by realestate.com.au has identified four common property market myths among Aussies:
<ol>
<li>The time of year doesn’t impact the success of buying and selling property</li>
<li>First-home buyers are being forced out of the market</li>
<li>Properties are currently overvalued</li>
<li>Low auction clearance rates mean houses aren’t selling</li>
</ol>
 
Myth 1: The time of year doesn’t impact the success of buying and selling property 
Consumer research indicates that over half of Australians (51%) believe the time of year bears no impact on the success of buying and selling property, with only 9% acknowledging autumn as the best time. However, autumn is most definitely the most opportune time to enter the property market. 
Realestate.com.au data reveals March and May were the two most popular months of the year for new property listings in 2011. The site attracted over 7.5 million unique browsers in May last year, the most of any month. 
Myth 2: First-home buyers are being forced out of the market 
More than three-quarters (77%) of first-home buyers in Australia believe they are being forced out of the market, yet realestate.com.au data suggests there are more affordable properties on the market now than last year. In 2011, there were 23,000 more properties at $500,000 or less listed on the site, compared to 2010. 
Today I see many first-home buyers entering the property market on a lower rung, as investors first. While many of the more exclusive suburbs of capital cities are indeed unaffordable to the first-home buyer, considerable affordability can be found in outer suburbs with excellent infrastructure and in larger regional areas which offer diverse employment opportunities and an excellent lifestyle. 
Myth 3: Property prices are overvalued 
Although 61% of Australians believe property prices are currently overvalued, this misconception has been perpetuated by sensational headlines that consider affordability only in relation to yearly household income – painting a largely inaccurate picture. 
We are at a time when housing is the most affordable it has been for a decade. From a peak of 34% of the average household income in 2010, average mortgage payments on the median-priced home have declined to 32% and are expected to fall beneath the long-term average of 30% by early next year.
Myth 4: Low auction clearance rates mean houses aren’t selling 
While almost three-quarters (74%) of Australians believe low auction clearance rates indicate houses aren’t selling. But the connection that is placed on clearance rates and market health is misleading. When comparing January 2011 to January 2012, there was a slight increase on days on market across the country. Numbers from RP Data indicate houses are selling, they are just taking longer. In New South Wales, days on market increased by nine days year-on-year, while days on market in Victoria and West Australia increased by 22 days. 
These days, buyers are much more educated and far keener negotiators. In my experience, auctions merely provide a backdrop against which interested buyers can gauge true market value and later negotiate privately for a sale. Few will commit at auction, yet many who attend later use what they witness as a suitable benchmark upon which to carry out successful, private negotiations.
Margaret Lomas is a best-selling author and writes and hosts the popular Property Success With Margaret Lomas and heads up the panel on Your Money, Your Call, both on Sky News. 
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mlomas-KC9MUPZ6Ca

Four property myths that are keeping would-be buyers out of the market: Margaret Lomas

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If you want to take the pulse of the Aussie spirit, have a look at how we approach business. We love it – we have 2.5 million registered businesses in this country and one of the highest rates of business start-ups in the world, running at around 15% of the business population each year.
We’re a nation of entrepreneurs – a settler economy opened up by waves of migrants happy for stability and freedom and willing to work hard for a better life.
Yet we don’t really tell ourselves this story in the way that Americans do.
In my experience the entrepreneur’s journey starts with concepts such as change, difference and improvement. Entrepreneurs look at how they can bring a different approach or product to the market. Or they see a chance to improve on what’s being offered already or they see an opportunity to change the consumer’s experience.
In many respects, the entrepreneur is the consumer’s friend. We see the world from what the buyer really wants, if only she were offered it.
But an entrepreneur is not only an “ideas person”; she must also be a business builder. They need the intellectual curiosity and a dogged dedication to hard work.
Entrepreneurs have to be up for a fight. You need that toughness because the most successful entrepreneurs are “disrupters” – people who see industries protected by high barriers of entry and decide to take them on, with a point of difference.
And these large industries – banking, airlines, phones companies etc. – will do what they can to stop newcomers competing with them.
So some of the highest-profile entrepreneurs are as famous for never giving up as they are for their business acumen. Think of Sir Richard Branson and the Virgin brand, which took on music production and retailing, airlines and banking; or John Ilhan, the Australian who built Crazy John’s phone retailing and ended up in a long fight with Telstra.
True entrepreneurs find it hard to give up. We don’t like being discouraged or intimidated.
I founded both Wizard Home Loans and Yellow Brick Road on a point of difference: a mortgage at a better price and a full-service financial services firm with advice at affordable rates.
I’m involved in a company called TZ – it replaces existing technology with something smarter and more efficient.
They all started with intellectual curiosity. But they were built by doing long days and staying focused when mistakes were made and major fights loomed.
However, those who want to be entrepreneurs should not be confused between toughness and arrogance.
Toughness allows you to keep going with a positive attitude.
But arrogance is another form of delusion.
Arrogance takes away your greatest tool as an entrepreneur: failure.
All the best entrepreneurs have stumbled and fallen in their careers. But they don’t crumble: they use their mistakes to learn, to reorganise, to make a better mousetrap, to come back bigger and better than before.
I have made many mistakes in my journey and all of them contributed to the successes.
But arrogance will not let you see your mistakes.
Lastly, fear. Everyone who tries to build a business will experience fear at some point. The stakes get high, and success or failure seems to hinge on a single decision. It can be gruelling.
The worst thing about fear is that it either stuns you into doing nothing, or it clouds your judgement, making irrational actions seem acceptable.
To avoid this, make yourself see fear objectively, as another obstacle but not an insurmountable one. Put it on your to-do list, as an item. But whatever you do, don’t let fear run the show.
There is no template for being an entrepreneur: do your homework, have a plan, get good people around you. Everyone will tell you this. But the real test of the entrepreneur is that you want to build something and nothing will stop you.
Mark Bouris is executive chairman of <a href="https://www.ybr.com.au/" target="_blank">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
 
 
 
 
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