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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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There were 822 sales in Perth for the week ending March 21, according to the Real Estate Institute of Western Australia. This is fewer than the 887 last week but still up 24% on the 664 for the same week last year.
<img src="/images/stories/reiwamarch21.gif">
 
 
 
 
 
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cknowlton-QnEa6ntUYP

Perth sales up 24% on same week last year: REIWA

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Before determining whether to sell your home privately or at auction, you need to consider the specifics of your property, the neighbourhood and what’s happening on the property market. All of these will determine the most appropriate way of selling your home so here’s a list of things to consider when making your decision:
<ul>
<li>
What is the norm in your area? </li>
</ul>
Unless your property is very distinctive or unusual, you’re unlikely to get much interest and enthusiasm from a crowd of potential buyers if auctions just aren’t the done thing in your area. Consider how other properties are sold in your area and how that might work for you. However, in some suburbs, if you don’t hold an auction you may be risking the perception that there is an issue with your home that makes it unsuitable for sale in that way.
<ul>
<li>
Is your property of a kind that is in high demand? </li>
</ul>
If your house has unique or special qualities such as features or location that buyers would be prepared to compete for, auction may be an ideal way of taking advantage. However, if this is not the case, you may struggle to draw a crowd that would give an auction the momentum it needs.
<ul>
<li>
Is the property market in your area booming? </li>
</ul>
When prices are going up and up in your area, buyers are keen to buy even quite ordinary homes because they’re fearful of missing out and having to pay more at another time. This anxiety encourages buyers to bid higher than others in order to secure your property. The thrust and parry of an auction is the perfect setting for this. However, if there is not a great deal of excitement and demand from buyers for properties in your area, an auction may fall flat and you may not get a bid at a price you’re happy with.
<ul>
<li>
How quickly do you need to sell your property? </li>
</ul>
If you need to sell your home in a particular time frame, an auction may be best because even if your property passes in on the day, it will usually sell within the next week or so. If you have more time and want to sell your property in a more relaxed way, a private treaty sale might work as a property can sit on the market for several weeks – you will also have more time to consider offers.
<ul>
<li>
Can you handle the marketing, inspection and sales processes yourself? </li>
</ul>
If you find it a chore and it falls outside your comfort zone, an auction could be the best way to go. Auctions have specific and intense marketing periods running for around four weeks and, if you’re lucky, it then culminates in ten minutes or less of bidding on a specific day and then it’s over.
<img width="100" style="float: left; margin: 5px;" src="/images/stories/sellingdummies.jpg">
Karin Derkley is a the former deputy editor of Personal Investor magazine, and continues to write for The Age and AFR Smart Investor. She has also lived through the pleasures and pitfalls of purchasing and renovating her own home. She is the author of <a href="https://au.dummies.com/store/product/Selling-Your-Home-For-Dummies-Australian-Edition.productCd-0730377156" target="_blank">Selling Your Home for Dummies</a>, published by <a href="https://au.wiley.com/WileyCDA/" target="_blank">Wiley</a>. The <a href="https://www.dummies.com/Section/index" target="_blank">Dummies brand</a> is celebrating its 21st anniversary in Australia in March. This is an excerpt from Selling Your Home for Dummies.
 
 
For more advice on auction vs private treaty, download our <a target="_blank" href="https://register.propertyobserver.com.au/propertyobserver-auction-vs-private-treaty/">free eBook</a>.
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kerkley-uF6NdMiThS

Choosing a method of sale: Auction vs private treaty

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We all know that the vacancy rate remains tight.  But few realise just how tight it has become.  Of the 1,600 odd postcodes across Australia with rental properties in them, 475 or 30% have a vacancy rate under 1%.  Seven out of 10 postcodes have a vacancy rate under 2%, and nine out of 10 (87%) postcodes have fewer than three out of every 100 rental properties vacant.
The vacancy rate across the whole country – except for Victoria– is tight, with an average vacancy rate of 1.7%.  In Victoria, the vacancy rate is close to 3%.
It has been this way for some time, but I suspect we are reaching some tipping point.
Since 2008 the rental component of CPI has been rising faster than the average inflation rate.  This is the first time this has consistently happened since the ABS separated out a rental housing inflation in the early 1970s.
According to the ABS CPI rental index, weekly rents have been rising by 5.7% per annum across Australia since mid-2008.  Brisbane has enjoyed a 6% annual gain, compared to, say, Melbourne’s 4.8% yearly increase.
Gross rental yields, as a result, have increased across the country, with traditional suburban detached housing approaching 4.5% and attached products (small-lot housing, too) often exceeding 5% these days.
Rental yields across many parts of Queensland – reflecting the state’s undersupply of new housing – now exceed 6% gross.  Hot rental spots in Queensland include Roma, Emerald, Calliope, Gladstone, Toowoomba, Mackay and Brisbane’s inner-western suburbs.  Even the southern part of the Sunshine Coast and northern suburbs of the Gold Coast have seen weekly rents lift higher than the statewide average (6% per annum) in more recent times.
There are 440,000 residential rental properties across Queensland, which is up 7% or by 31,000 investment properties over the past 12 months.  After the GFC, and with it all the scaremongering, too many residential investors tried to sell their investment properties, and to no avail.  The wise among them have now reset their plans and are renting their properties out again; hence the lift in available rental properties.  Yet despite the 31,000 increase in supply, the vacancy rate is falling and rents are rising.
The biggest increase in recent supply has been in those areas – Gladstone, Mackay and around Toowoomba – with the largest increases in weekly rent.
Median weekly rents have risen by 45% over the last 12 months in Gladstone.  They are up about 25% in Emerald; 20% more in Roma; 15% higher in Mackay and up about 10% across Brisbane’s inner west.
While certain geographical areas across Queensland are doing better, rent-wise, the upward trend is consistent across product types, again reflecting the tight overall rental supply.  Weekly rents for one-bedroom apartment stock are up 6% on last year; two-bedroom apartments up 5%; ditto for three-bedder units and three-bedroom detached houses.  Larger houses have enjoyed a 6% lift in weekly rents, and Queensland townhouses are up 4% on last year.
About 40% of Queensland’s rental stock is now apartments; half are detached dwellings and 10% are townhouses.
I have been saying in my market overview presentations that investors should treat capital growth as a bonus.  Income is certainty.  The best residential investments, for mine, will be those with the most secure rental returns.
So how do you get a better rental return?  Of course you should buy well.  Investment property in a key location – supported by infrastructure, close to a growing workforce, designed to be shared (think beds and baths), with adequate storage/parking and is easy to maintain – usually rents out well and enjoys consistent rental growth.
And for those who already own an investment property, the best thing you can do to improve your rental return is try a new property manager.  More on this in a moment.
Rising rents have not yet translated to price growth.  But they will.  Once we get over our collective mopes, investors will start buying again and this, in turn, should lift prices.  We anticipate residential prices to rise by between 2% and 4% per annum across Australia over much of this decade.  Property prices in Queensland, Western Australia and across much of Sydney are likely to lift higher than, and maybe twice as fast as, the Australian average.
Traditional property managers are the main bugbear of investors – the chief complaints by investors being lack of communication, lack of action, lack of rental increases and lazy service.  Most companies that manage residential rentals do so as a side business – “it helps pay the rent” as the saying goes – rather than it being the sole focus.
Wise Realty, which started over a decade ago, is one of the largest family-owned property management agencies in south-east Queensland.  Wise Realty is a stand-alone property management company.  I have known Lionel Morris, a director of Wise Realty, for more years than we wish to remember.  The rents that Wise Realty achieves are some of the highest in the industry and their tenant turnaround is second to none.  Wise now has about a thousand properties under management.
Here are some recent statistics for the first three months of 2012.  These apply to 35 new rental listings taken over by Wise.
<ul>
<li>For detached houses, Wise got an average $100 more per week – up 16% – than the previous rental agreement.  The property remained vacant for just four days.</li>
<li>Wise got $60 more per week (an 11% increase) for their new townhouse listings.  Again, the properties in question leased out in four days. For apartments, the average lift was 14% or $65 more per week.  These remained vacant for just three days.</li>
<li>By way of comparison, the average increase in weekly rents in the same area over the last 12 months was just 5%.  The average time to find a new tenant was 14 days.</li>
</ul>
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 href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">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.
Apartment photograph by Alex Proimos, courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
 
 
 
 
 
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michaelmatusik-49YzLvdmNv

The best investment properties are those with the best rental returns: Michael Matusik

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More New South Wales borrowers (14.6%) owe more than $300,000 on their mortgages than borrowers in any other state, ABS data has revealed.
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<a href="/images/stories/mortgage1.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/mortgage1thumb.gif"></a>
Source: ABS
Tasmanian borrowers on average owe the least on their mortgages, with 12.9% of borrowers owing $100,000 or less.
Click to enlarge
<a href="/images/stories/mortgage2.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/mortgage2thumb.gif"></a>
Source: ABS
The state with the next-smallest average mortgage size is Victoria, with just 4.7% of borrowers owing more than $300,000.
The ABS data also reveals the <a target="_blank" href="/news">amount of equity home owners have in their properties</a>.
 
 
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Mortgage size: The official ABS state-by-state data

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The Docklands premises of James Squire Restaurant and Bar has been snapped up by private investors as a new report highlights a growing appetite for restaurants and cafes with established tenants in metropolitan Melbourne. 
The two-level, 950-square-metre property at 1 Pearl River Road within Docklands’ Victoria Harbour precinct was bought by a private investor for $4.3 million on a 9.3% yield following an expressions-of-interest campaign directed by Nick Peden and Clinton Baxter from Savills Australia. 
The sale price equates to $4,500 per square metre and “represented a strong price for ground and first floor strata retail,” Peden says. 
James Squire Restaurant and Bar pays a current net rental of $400,000 per annum with fixed annual 4% rental growth. 
Peden says the property attracted a great deal of interest from investors “keen to take advantage of the secure lease profile and prime waterfront location”. 
“Properties on the waterfront always attract a good level of interest and with a secure 10-year lease with a 10-year option, commencing July 2011, to a well-established business, it was always going to see a reasonably good result,’’ says Peden. 
“With the Docklands residential population growing rapidly and the precinct maturing in commercial terms, investors have again turned their attention to this remarkably active and evolving location,’’ says Baxter. 
According to the Docklands Authority, the precinct is expected to become home to 17,000 people, a workplace to 40,000, and a destination for 55,000 visitors per day by 2020. 
The sale of the Victoria Harbour restaurant premises comes as a Colliers International notes a pick-up in investor demand for restaurants and cafés with established tenants in Melbourne’s east, about two kilometres from Docklands. 
Colliers International’s Hamish Burgess and Ben Baines report receiving a “flood of enquiries from eager investors” since listing The Palms restaurant at 213-215 Blackburn Road in Mount Waverley.
The recently renovated 435-square-metre property, which sits on 1,015 square metres and has a 10-year lease, is attracting interest is in the vicinity of $1.9 million to $2 million. 
Burgess says interest in the property, which will go under the hammer on March 29, confirms the recent trend towards restaurants and cafes as investments.
“There has been a noticeable trend evolving lately whereby sub-$5 million property investors are searching for restaurant and café investment properties with secure, long-term tenancies in metropolitan Melbourne,” he says. 
According to Burgess investors are focusing on restaurants and cafés with high-profile, well-established tenants. 
“This represents increased security, as operators are continuing to spend significant amounts on fit-outs and don’t want to lose clientele by moving location,” he says. 
According to Baines, recent sales of restaurants in Melbourne’s east indicate that investors are willing to pay a premium for this sort of investment. 
Three recent restaurants sales all achieved yields of under 5%:
<ul>
<li> 210 Blackburn Road, Glen Waverley: achieved a yield of 4.6% with Subway as a tenant</li>
<li>313 Stephensons Road, Mount Waverley: achieved a yield of 4.1% with Pizza Hut as a tenant</li>
<li>319 Stephensons Road, Mount Waverley: achieved a yield of 4% with Great Eastern Hakka Restaurant as the tenant</li>
</ul>
 
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lschlesinger-FZcF9M3vE6

Docklands restaurant James Squire sells with 9.3% yield as investor appetite for Melbourne eateries grows 

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First-home buyer demand should continue to pick up in 2012, particularly in NSW and Western Australia, but there will be no recovery in Victoria, according to the latest forecasts from BIS Shrapnel.
“We started to see a pick-up in NSW And Western Australia towards the end of last year, which was emphasised by the expiration of stamp duty exemptions for existing properties,” BIS Shrapnel senior manager Angie Zigomanis said at the March 2012 Building Industry Prospects conference yesterday.
“But it is still weak in Victoria, and one of the reasons why it is still weak is because the state government has tended to keep the first-home buyer incentives fairly elevated, which has pushed forward demand.
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“First-home buyer demand is very important because it creates demand at the bottom of the market for the next group of buyers to trade up.
“It’s that turnover and activity that flows to price growth and also brings more investors into the market.”
Zigomanis says this churning of property created by first-home buyers entering the market won’t be felt as strongly in Victoria.
“In Victoria the weakness in first-home buyer demand is permeating through to the rest of the market,” he said.
According to Zigomanis there are only a “finite number of first-home buyers out there”, and all the incentives do is encourage these buyers to purchase sooner.
“We had the federal government incentives when the GFC hit and then followed by the state government incentives,” he says.
As a consequence of demand being pulled forward, subsequent demand will fall off much more strongly, Zigomanis says, meaning that there will be no recovery in first-home buyer numbers Victoria until the end of 2012 or the start of 2013.
Victoria’s first home bonus and regional bonus, which awarded grants of $13,000 and $6,500 respectively to qualifying first-home buyers, are both set to expire at the end of 2011-12.
However BIS Shrapnel warns “the Victorian government has shown a tendency in the past to extend such grants, and hence it is quite possible they will do so again”. <img src="/images/stories/bismarch213.gif">
Looking at the overall state of residential markets, Melbourne remains one of the weak spots, with vacancies heading up towards the 3% mark, which indicates a balanced market.
BIS Shrapnel estimates put the Victorian deficiency at approximately 23,100 dwellings as at June 2011, with newly completed dwellings coming onto the market over 2011-12 and 2012-13 likely to cause this number to fall. 
“In fact in some areas of inner Melbourne we feel that the market may even be in slight oversupply. This means there is significantly less pressure in the Victorian property market than is evident in New South Wales,” says BIS Shrapnel. 
“The residential vacancy rate in Melbourne has gradually risen over 2011 to reach 2.4% as at September 2011. As a result, our expectations for growth in property prices as well as rents are much more subdued in Melbourne than it is in the tighter market of Sydney. This in turn will ultimately limit demand from the investor segment of the market.”
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On the other hand vacancies in Brisbane, Perth and Sydney have tightened.
“Rental growth is coming up in Brisbane, but it has been pretty flat in Melbourne,” says Zigomanis.
During his presentation, BIS Shrapnel director Robert Mellor said the bump up in first-home buyer numbers in 2011 “was not all the result of the demand being brought forward in NSW”.
“People are responding to lower interest rates and an easing back in prices. Now may be a good time to buy relative to staying in the rental market,” he said.
“Housing interest rates are not the issue, affordability is not the issue – the real issue is confidence.
“What is going to tip it? After 30 years of forecasting I cannot answer that,” he said.
 
 
 
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Victoria to miss out on first-home buyer pick-up and churn factor: BIS Shrapnel

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The lengthening absence of data indicating any housing construction recovery – and accompanying credit growth – must be weighing on Federal Treasurer Wayne Swan during his May budget preparations.
I suspect the deliberations will possibly come down to whether the federal government throws some money at the problem so that it takes effect this year or saves any announcement until the 2013 election year.
But the treasurer ought to be asking: does it necessitate anything being done, and what outcomes are desired?
Should it go directly into the pockets of the buyer, or indirectly to the seller? Or maybe into infrastructure.
Or does the housing construction industry simply need to realise that cycles are cycles, and no reason for a handout from government?
When presenting floral bouquets for effective lobbying the housing construction industry stands up there on the podium, albeit overshadowed by the car industry.
Indeed Philip Soos says in his latest column on The Conversation, <a target="_blank" href="https://www.propertyobserver.com.au/residential/real-estate-agents-conflict-of-interest-creating-australias-housing-price-bubble-philip-soos/2012032053925">and on Property Observer today</a>, that the real estate lobby is immensely powerful, representing the $4 trillion landowning class.
Take the long-running first-home buyer’s grant, which has been around since its 2000 introduction by John Howard as part of GST compensation.
Soldier settlement assistance ran for about eight years following the return of soldiers from World War 1.
Bob Hawke's housing assistance lasted seven years in the 1980s.
New South Wales first-home buyer grants:
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/fhbg.gif"><img src="/images/stories/fhbgthumb.gif" style="border-style: initial; border-color: initial;"></a>
Source: NSW OSR
The current 12-year-long assistance package has periodically undergone a boost that triggers an even greater market distortion of the herd mentality among young buyers. It was Aussie Home Loans founder John Symond who first signalled the possibility that events might unfold this year. 
<a target="_blank" href="https://www.propertyobserver.com.au/residential/first-home-owner-s-boost-could-return-this-year-john-symond/2012010552968">Property Observer reported in January</a> that Symond noted it was generally true that “in any run-up to an election the government throws money around”.
“Probably my cynical self says six to 12 months ahead of the next election, it would not surprise me that the government might stimulate housing by helping first-home buyers and they may possibly introduce a bonus or a boost to the first-home owner’s grant,” Symond said.
The earliest date for the next federal election is August 2013 (unless the government calls an early election) and an election must be held by November 30, 2013, meaning if Symond’s prediction proves accurate the boost to the first-home owner’s scheme could return in the latter half of the year.
The original boost scheme ran from October 2008 to December 2009 with the aim of cushioning the Australian economy from the worst impacts of the GFC.
Up until September 30, 2009, it provided first-time buyers with an extra $7,000 to purchase an existing home and $14,000 if they purchased a newly constructed home or built a new home.
The scheme operated in tandem with the $7,000 already on offer as part of the first-home owner’s grant, which is still in effect.
Between October 2009 and December 2009, the first-home owner’s boost was halved, with $3,500 available for the purchase of established homes and $7,000 for the purchase of new homes.
Symond says while no one can be certain of the boost returning, he tipped that “come federal election time there might be some handout for first-home buyers”.
But there was interesting debate this week about the effect of the grant for first-home buyers.
Bendigo and Adelaide Bank chairman Robert Johanson who said that first-home buyer grants were only serving to unnaturally drive up the cost of housing.
"The government were just giving people money to get into new houses, which transferred the value to the sellers. It just puts costs up," Johanson said.
"I think it's a waste and a distraction," he said.
Johanson said the grants were "bad policy", and that the housing market had succeeded because of economic prosperity rather than government intervention.
While we all wait for prosperity, the home builders are offering varied incentives to attract buyers.
Free air-conditioners, they pay your rent while you build, even $5,000 barbecues.
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jchancellor-FAypfDUnLy

Federal government must decide if housing industry warrants a handout in May budget

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The real estate sector is set to pick up in the second half of the year driven by opportunities created by the mining boom, but the property industry as a whole has not fully recovered since the GFC, says BIS Shrapnel economist Frank Gelber.
“When I say property has not recovered, I’m talking about property the industry, the people that work and provide services to the sector,” Gelber said at the March 2012 BIS Shrapnel forecasting conference yesterday.
According to Gelber the property industry is still “bumping along at the bottom of the cycle”.
“We’re not providing all the services we did pre-GFC because we don’t have the funds available.
“The great deleveraging of property has not yet finished. The REITs have managed to get their hands on some equity but a lot of the unlisted property trusts are still in the hands of the banks.
“A lot of these single property unlisted trusts have long ago breached their loan covenants,” he says.
The latest economic outlook prepared by BIS Shrapnel point to an improvement in overall conditions for the sector.
New capital expenditure is set to rise in the second half of the year following a small but sharp dip in the last 12 months:
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/bismarch21.gif"><img src="/images/stories/bismarch21thumb.gif"></a>
According to BIS Shrapnel, the real estate, rentals and hiring sector was one of just a few sectors to record an increase in wage inflation compared with average inflation, which drifted lower over 2011 due to zero employment growth.
“[The real estate, rentals and the hiring sector and the professional, scientific and technical services sector] are two sectors that are benefiting from the work generated by the minerals-related investment,” says BIS Shrapnel. 
The report also notes that excluding a dip pre-GFC, the real estate, rentals and hiring has “consistently generated profit margins near or above 40% for over a decade”. 
“Recently, these margins have edged higher, and with income remaining steady since 2009, profits are on the increase, particularly in the unincorporated sector,” says BIS Shrapnel.
 
 
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Mining boom to create opportunities in property, but sector has not yet recovered from GFC: BIS Shrapnel’s Frank Gelber

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The number of homes with mortgages worth more than the property's estimated value increased late last year as house prices fell.
Recent home buyers incurred the biggest jump in so-called negative equity.
RP Data says 6.4% of homes were valued at less than their purchase price in the December 2011 quarter, rising from 4.9% in the September quarter.
Since late 2010, capital city home values have fallen by 5.5%, RP Data suggests. The analysis does not look at debt levels by owners, only the price paid for properties and their estimated current value.
While the trend has potentially pushed more owners into negative equity, only 1% of owners who have held their properties for 10 years faced the prospect of negative equity on their homes.
Since late 2010, the Australian housing market has been quite weak, with home values falling by 5.5% across the combined capital cities since the market peaked, research analyst Cameron Kusher says.
"Buyers who purchased a home since this time have in many instances seen the value of their home move below their contract price," Kusher says.
RP Data notes prices tracked lower through 2011 as interest rate uncertainty, economic jitters and the unwillingness by many households to take on more debt sapped demand.
Far north Queensland had the highest proportion of mortgages in negative equity, at 22%, followed by the Gold Coast, with 19%.
The Sunshine Coast was in the third spot at 15%.
The area with the lowest amount of negative equity was Loddon, Victoria, with 1.9%, followed by Canberra with 2%.
Brisbane fared the worst among capital cities, with 9.2% of property deemed to be "underwater" in financial terms, followed by Perth at 7.4%
Sydney had 3.6% of properties in negative equity, pipping Melbourne with a 3.5% rate. In Hobart, 6.2% of properties were in negative equity, compared with 5.5% for Adelaide.
But 42% of Australian home owners find their properties are now worth more than twice the purchase price.
Kusher says it highlights the long-term nature of the housing market and investment.
"The first few years of owning a property are always the toughest because you don’t have much equity and aren’t paying off much of the principal,” he says.
Victoria had the highest incidence of homes worth double their purchase price, as half of all homes in the state are in this category.
 
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Number of homes in negative equity rising, particularly for recent buyers: RP Data

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Sydney’s 1 Bligh Street has secured tenant Oil Search, which is leasing two levels at Dexus’ flagship sustainable office tower. But the deal required higher leasing incentives than previous deals.
At its half-year results, Dexus said its incentives across its portfolio had fallen from 20% two years ago to 16 % but were unlikely to fall further.
Dexus’ <a href="https://www.propertyobserver.com.au/industry-news/no-changing-course-for-dexus-as-darren-steinberg-readies-to-step-in/2011112852577" target="_blank">new managing director, Darren Steinberg</a>, said the Sydney market, which has been adversely affected by white-collar job losses and economic uncertainty, was expected to improve next year.
Oil Search, which is Papua New Guinea’s biggest oil and gas producer, will occupy levels 22 and 23.
The 3,274-square-metre lease runs for 12 years.
One Bligh, completed last year, is owned by Dexus Property Group, Dexus Wholesale Property Fund and Cbus Property.
<a href="https://www.propertyobserver.com.au/office/dexus-yet-to-meet-leasing-target-at-1-bligh-street/2012021553391" target="_blank">Law firm Clayton Utz is the tower’s anchor tenant</a> and the Commonwealth government's Ministerial and Parliamentary Services recently leased three floors.
Dexus says a further two floors are under offer, leaving three vacant high-rise floors and a number of smaller part-floor tenancies.
Financial media group <a href="https://www.propertyobserver.com.au/office/bloomberg-considering-move-to-sydney-s-1-bligh-street/2011112452537" target="_blank">Bloomberg has been linked to the pending two-floor lease</a>.
The Australian Financial Review says the new deals are understood to have been struck at higher incentives than previous deals.
The two new leases would take the tower’s occupancy level to 82%.
Cadigal Office Leasing and Jones Lang LaSalle represented the One Bligh Street owners, and LPC was the tenant adviser to Oil Search.
 
 
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