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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Investors should consider putting their money into retail property trusts, according to post-reporting season analysis by Goldman Sachs REIT analysts Simon Wheatley, Peter Zuk and Andrew MacFarlane. 
In their March monthly REIT outlook, Wheatley, Zuk and McFarlane have picked the Westfield Retail Trust (WRT) as the “best buy idea” and maintained an overall “neutral” outlook on the REIT sector. 
The following chart shows the net operating income growth of WRT and Stockland (SGP) compared to Mirvac (MGR), GPT and the CFS Retail Property Trust (CFX).
Goldman Sachs’ other recommended REIT buys are the diversified trusts Charter Hall (CHC) and Stockland (SGP) and the Goodman Group (GMG) industrial trust.
Although the outlook for retail remains challenging, they note that bankruptcies in the sector for the 2012 calendar year to date have been “next to zero” compared with four major retailer collapses over the same time period last year. 
“By this time in the 2011 calendar year, there had been four major retailers (RedGroup, Ed Harry, Bijoux Accessories and Covers Designs) go into bankruptcy impacting 340 stores in Australia,” the report says. 
“We estimate two-thirds of these stores ultimately closed. By the end of the first quarter of 2011, these store bankruptcies had risen to a substantial 804 stores with the failure of Colorado and Perfume Empire. 
“Contrast this with 2012 calendar year. To date there have been no chain retailers enter bankruptcy with a benign 2011 Christmas trading period and our expectation that we could see some retailer failures. 
“The only two retailers who have stumbled are Sleep City (64 stores) and WOW Audio (15 stores), however neither has any real exposure to shopping centres,” say the Goldman Sachs analysts. 
According to Goldman Sachs shopping centre landlords currently have “negligible exposure to national retailers on any [bankruptcy] watch lists” .
“Other factors which suggest that there remains an apparent equilibrium regarding rent stress include; stable reported arrears; continued positive re-leasing spreads on expiring leases; no meaningful reduction in the tenant retention rate and negligible vacancy,” the report says. 
“Downside risk is very contained in our view. As such the best buying opportunities continue to be in retail REITs and this was reinforced by the reporting season results.” 
Beyond retail, Goldman Sachs says office occupancy levels have remained stable, but says they may have peaked and will soften into the end of 2012 financial year (end of June). 
The investment bank has weaker convictions about the residential outlook as a result of lower lot sales. However it notes that margins have held and there are better contracts on hand than at the end of the previous comparable period. 
“The outlook continues to see management avoiding the higher-end price point and satiating and stimulating demand at the more affordable end of the range,” says Goldman Sachs. 
“The outlook commentary was notably cautious, with fundamentals in NSW reported to be solid, Victoria continuing to moderate, and Queensland still extremely soft although showing some tentative signals.” 
Goldman Sachs is forecasting a 2012 calendar year capital return for the REIT sector of 15.5%, a yield of 6.87% for a total return of 22.4%.
 
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Retail REITs offer best investment potential: Goldman Sachs

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I have seen people make many moving mistakes over the years in my role as founder of one of Australia’s largest and fastest-growing removal and relocation services, Two Men and a Truck. Here are my top tips to make your next move a breeze.
1. Charge your mobile phone the night before and put the charger in the glove box of your car. 2. Make sure you have all relevant papers and numbers handy (and not packed in one of the boxes). For example, your removalist firm and truck driver’s numbers, real estate agent contact, inspection reports, utility customer numbers, etc. 3. Confirm arrangements with the real estate agent to gain timely access to your new house – or even better, try and pick up the keys the day before. 4. Label all boxes clearly with content and room. This makes it easy for the removalist to place them in the right room and saves you having to move them around later. Number each box and keep a list.
5. Keep a box or bag with scissors, tape, zip bags, labels, marker, screwdriver, pliers, etc handy. 6. Stick fragile stickers on all boxes containing breakables such as glass, china, art works, etc. 7. Keep screws, bolts, clips and other furniture bits together in zip bags and label these clearly – this is definitely worth it, as one missing screw can create stress when the bed simply won’t go back together. 8. As you clear out each room, clean up as much as reasonably possible – this can save you time and money in the end as the clean-up will be much less. 9. Turn off the hot water, gas and electricity, read all meters and note the readings down. 10. After the house is cleared do a detailed inspection all round, take notes and photos of any wear and tear, scratches and damages. 11. Remove all rubbish and take to the tip or collection point (you can be charged if you don’t). 12. Leave keys (labelled) where they can be found but are safe, or drop them to the real estate office. 13. Leave the old house secure – meaning lock all windows/doors/garage when you leave – usually you are still liable at this stage. 14. Inspect the new house, without furniture or boxes in it, take notes and photos of any wear and tear, scratches, marks or damages you may not have noticed before. 15. Drink plenty of water throughout the day to keep hydrated and calm the moving nerves.
Richard Kuipers is a moving expert and founder of one of Australia’s largest and fastest-growing removal and relocation services, <a target="_blank" href="https://www.twomen.com.au">Two Men and a Truck</a>. Two Men and a Truck has over 20 years of experience moving people across five states.
 
 
 
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Top 15 tips to make moving a breeze

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Welcome to the boom and the gloom.  Australia has everything going for it, being an ultra-safe country and transparent democracy with a mining boom, uninterrupted economic growth, limited levels of private and public debt, a high and rising household savings rate, strong links with Asia and a currency that generally behaves itself.
But the average punter still cannot believe his bad luck.
Poor sentiment can be blamed on political wrangling (to put it mildly), uncertainty about new taxes, and then there is of course Europe, a shaky share market; that scary notion called “structural change” and the bloody RBA, which won’t drop the cash rate.
Whatever the cause, we need to wake up soon. Paradox of Thrift is what economists call it – we will talk and save ourselves into a recession.
More than half of us believe that the wisest place for savings is in the bank or paying off debt.
Encouragingly, real estate is starting to come back into the mix. There are plenty of good reasons to be looking at property – real prices are stagnant; the jobless rate is low; rental markets extremely tight; rents are rising above CPI; interest rates are historically low; and the amount of resale stock on the market is now starting to decline.
This will lead – I hope sooner than later – to a wave of new home buyers entering the market. Investors are likely to lead the charge.
More housing starts
We anticipate that just 135,000 new dwellings will be built across Australia this financial year. This is against the 10-year average of 155,000 new homes built each year. The slowdown is warranted given the drop in overseas migration during 2009 and 2010 and the oversupply of new housing in Victoria, South Australia and to some degree in Western Australia too.
But the <a href="https://matusikmissive.wordpress.com/2012/03/10/weekend-3-3/" target="_blank">recent lift in migration</a> is expected to cause new housing starts to increase in coming years. Our forecast is for 155,000 new starts across Australia during fiscal 2013 and up to 175,000 starts during 2013-14.
Forget what you read in the press this week, our forecast is contrary to many other property commentators out there, as we like to drive looking through the windshield instead of the rear vision mirror.
And Queensland looks set to benefit the most.  Also despite recent reports to the contrary, new housing is undersupplied across much of the state.  At present Queensland has a 16% market share of total residential building across Australia. Our historic average is closer to 25%. We forecast that new housing starts in Queensland could double (up 46%) over the next two to three years, rising to 38,000 new starts during 2014.
With close to $135 billion worth of new resource projects underway across the state, coupled with $29 billion worth of new infrastructure projects being delivered across the south-east corner of the state, the need for new housing is on the increase.
And much of this new supply – close to 70% – will be needed in the triangle between Noosa, Coolangatta and out to Toowoomba.
Health beats mining
When it comes to jobs, the health sector has been the boom sector since the GFC, not mining! Health added close to 235,000 new jobs over the last four years, or 36% of the total jobs created across Australia. By comparison mining employment lifted by just 110,000, accounting for just 17% of the 650,000 jobs created since 2008 Down Under.
Yes, 650,000 jobs have been created in Australia over the last four years. Best maybe to reread item one above.
The ageing population means more workers will be required in health care. Mining might be booming, but the demand for health-related services will be bigger, broader and most likely longer lasting. A miner and nurse/doctor partner household is the way to go!
Mining only accounts for a quarter of million jobs or just over 2% of the workforce.  The health sector is five times the size of the mining in terms of employment.
Oh <a href="https://www.propertyobserver.com.au/queensland/wait-a-minute-kochie-there-are-bright-spots-for-property-investment-on-the-gold-and-sunshine-coasts/2012030653715" target="_blank">Kochie</a>, how could you have got it so wrong?
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
 
 
 
 
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michaelmatusik-49YzLvdmNv

Australia is booming, so why are we all so gloomy?

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Conflicts of interest undermine the quality of advice and policy. It is critical to the functioning of markets and government that parties involved are free of conflicts, especially monetary ones.
We would like to believe others are ethical, engage in honest practices, and do not withhold or manipulate information for selfish reasons.
Sadly, the real estate industry is saturated with such conflicts. Individuals and organisations with direct and indirect connections to the industry are so plagued by conflicts of interest that the industry is a textbook example, along with the defence and pharmaceuticals sectors, of what not to do.
Real estate agents make their living from the commissions on real estate transactions. Thus, it is in the agents’ self-interest to maximise the volume of transactions. It ought to make little difference whether prices are rising or falling, but in practice it matters a great deal. In a property market of high volumes and rising prices, agents can make small fortunes. Real estate is a big business where vast amounts of profit can be made, and where corruption and dishonesty inevitably corrode ethical practice.
Australia’s market from 2001 to 2004 was an era of golden rewards. Gripped by speculative fervour, owners engaged in “flipping”, or short-term reselling of property for capital gains. It is the profits realised from flipping, backed by lax lending standards and preferential tax treatment, that drives the market into a Ponzi or pyramid scheme.
Agents are faced with a set of incentives to optimistically promote (“spruik”) the prospects for the property market. If prices are increasing, they say, “buy now or be left behind”; if stagnant (tracking inflation), “buy now because the market is soon to rise”; or if prices are falling, “buy now because housing affordability has never been better and the market has bottomed out”.
Sound familiar?
Likewise, real estate intelligence firms face a set of incentives to argue property is always a good investment regardless of market conditions. Their public faces are articulate and well educated, which comes in handy when offering technical arguments that rationalise sky-high housing values, and claim with confidence prices are based upon fundamentals and could never fall. The fact that they always assert this even when, in reality, a bubble exists (as in the case of the US, UK, Latvia, Ireland, Spain, Lithuania and so on) should come as no surprise.
These optimistic appraisals should be immediately dismissed on the grounds that they are completely predictable and thus tell us no new information about how the market is really performing, on much the same basis that politicians reflexively inform us they always have our best interests at heart.
In the US, the leading spruiker was David Lereah, the former chief economist of the National Association of Realtors. He championed rising housing prices, denied a bubble existed and cited sound fundamentals in the form of a housing shortage, demographic change and low interest rates. He published the book Why the Real Estate Boom Will Not Bust: And How You Can Profit From It at the peak of the bubble in early 2006.
Lereah has claimed that NAR executives pressured him into fabricating optimistic forecasts – something any skilled professional ought to have the capacity to resist.
Potential home buyers rely upon agents as the primary source of market information and place a high degree of confidence in them. Never mind agents operate for their paymasters – sellers – and are constantly working to remove buyer resistance to close the price gap to seller expectations. Sellers, however, are also affected by the perverse set of incentives that agents operate under.
Given their institutional bias toward spruiking, it is problematic that agents and real estate organisations can make outrageous assertions about the investment potential of both the real estate market and individual properties without bearing responsibility if things turn sour. Their “conversations” with buyers are deniable in a court of law.
Financial advisors are regulated by the Australian Securities and Investment Commission (ASIC) and must meet strict guidelines. Anyone providing investment advice without a licence is subject to serious penalties if apprehended. A different standard applies to real estate agents who can endlessly spruik million-dollar assets (homes) without a license.
The information asymmetry between buyers and industry is enormous. Atomised buyers rely on the advice dispensed by multi-million dollar organisations and multi-billion dollar sectors with a direct interest in maintaining the status quo of overvalued multi-trillion dollar property markets. These include the central bank, Treasury, commercial lenders, investment banks, real estate intelligence firms and agencies, mass media outlets, governments, and the vast array of professionals employed in these sectors.
When real estate bubbles burst, the industry PR machine goes into overdrive, placing blame on everyone except themselves. Apparently, the poor have cheated the banks and real estate agencies by refusing to keep up with mortgage payments, running rings around the oppressed sectors of power and privilege. (As Ayn Rand put it, America’s persecuted minority is big business.)
The mass media is heavily reliant upon advertising revenue from the real estate industry, thus gagging outlets from speaking out against the interests of industry. Industries can and do use the threat of withdrawing advertising revenue to change editorial lines. Agents’ organisations depend heavily on journalists and editors casting the industry in a good light to maintain their supposed ability to self-regulate. This is similar to believing the nice, furry fox will guard the chicken coop – after all, real estate institutes represent agents, not consumers.
The incentives faced by the mass media ensure overly positive outcomes for the real estate industry and other sectors as well (finance, insurance, mining, government, etc).
The industry desperately needs to have these conflicts of interest and incentives to deceive removed to ensure an efficient property market for both buyers and sellers.
Agents should be required to have the equivalent of a financial services license, and pass a rigorous course in ethical practices. Neil Jenman, an experienced Australian real estate consumer advocate, has sought to tackle these conflicts with his system of approved agents who adhere to high standards of ethical and consumer practice (that is one of the reasons why Jenman is not well liked within mainstream industry).
Eliminating the causes of high housing prices that promotes a bloated real estate industry is a must. To this end, ending lax lending standards by the banks and taxing land is a necessity (though in Australia it is a case of too little, too late).
Regulators and politicians have not tackled these conflicts of interest for two reasons. The first is the belief that privatisation and deregulation is the way to go; that markets can often do a better job via self-regulation. Even if market advocates point out that problems still exist, the second reason rears its head: the real estate lobby is immensely powerful, representing the $4 trillion landowning class. The lobby will ensure that little will be done about the current state of affairs.
Given the inherent difficulties of such a task due to entrenched vested interests, a cynic may conclude it would be easier to clean up Chernobyl.
 
Philip Soos is a researcher at the School of International and Political Studies at Deakin University. This story first appeared on <a target="_blank" href="https://theconversation.edu.au/">The Conversation</a>.
 
 
 
 
 
 
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Real estate agents’ conflict of interest creating Australia’s housing price bubble: Philip Soos

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The plurality of home owners in all six state capitals cities have between $200,000 and $399,999 equity in their homes, but in ACT and NT the plurality of home owners have between $400,000 and $599,999, ABS figures show.
Click to enlarge
<a href="/images/stories/equity2.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/equity2thumb.jpg"></a>
Source: ABS
The data also shows that more Tasmanian home owners (about 32%) have between $200,000 and $399,999 equity in their homes than home owners in any other state.
Click to enlarge
<a href="/images/stories/equity3.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/equity3thumb.jpg"></a>
Source: ABS
More home owners in Western Australia (13%) have $800,000 or more in their homes than owners in any other state.
The ABS data also shows the size of mortgages in each state.
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Dwelling equity: The official ABS state-by-state data

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The first step you need to take is to create a shortlist of locations that you are considering. The mistake that most investors make is that they fail to properly plan their property search. As a result they enter a fox-like process, whereby they try to absorb information about potential investments from each and every source available.
They read newspaper headlines and magazine articles. They browse real estate shop windows, and view property sales online. They end up knowing a little bit about a lot of different real estate locations instead of knowing a lot about two or three locations. Because they don’t do enough detailed research on a few locations, they can end up buying the wrong property in the wrong location, or they pay too much for it.
Instead of this, I suggest that you adopt a hedgehog approach to your research. The hedgehog limits his final shortlist to no more than three locations, so you can really knuckle down and become an expert in those particular areas.
The first step in being a hedgehog researcher is to choose which state you want to invest in. A lot of people default to their own home state, but that’s not always going to be the best and most effective property investing choice.
Properties in different states can experience a significant variance in capital growth rates due to a range of factors, not least of which is supply and demand.
Some states simply don’t have enough housing to cope with the level of new residents arriving each month. This means that the housing that is available is highly sought-after. If an area is experiencing high population growth, and at the same time there aren’t enough new houses being built to accommodate the growing population, then that’s going to translate into rapidly increasing property prices and higher yields.
Supply and demand is not the only factor that you need to take into consideration when doing your property research. Generally, the most important factors that you will need to consider include the health of the local economy, population growth, private investment in industry and housing, and government spending on infrastructure, housing and employment.
You can learn most of what you need to know about what’s happening in various states through the magic of the internet (what did we do before it?).
By browsing internet sites you can learn all about government plans for growth and development in different regions. You will find updates and fact sheets about new infrastructure projects and information about upcoming large-scale projects that will inject money, resources and employment opportunities into local communities.
You can also access data about population growth across the state, so you can see which areas are experiencing the highest influx of new residents, and thus, which has the largest potential rental pool for you to tap into.
Plug each of these websites into your ‘bookmarks’ folder and spend some time really studying each state. I’d recommend at least one to two hours per site, so you can learn about all of the different projects and plans for the short and long term.
<a target="_blank" href="https://www.australia.gov.au/">www.australia.gov.au</a>
<a target="_blank" href="https://www.qld.gov.au/">www.qld.gov.au</a>
<a target="_blank" href="https://www.vic.gov.au/">www.vic.gov.au</a>
<a target="_blank" href="https://www.nsw.gov.au/">www.nsw.gov.au</a>
<a target="_blank" href="https://wa.gov.au/">www.wa.gov.au</a>
<a target="_blank" href="https://www.sa.gov.au/">www.sa.gov.au</a>
<a target="_blank" href="https://www.act.gov.au/">www.act.gov.au</a>
<a target="_blank" href="https://www.nt.gov.au/">www.nt.gov.au</a>
<a target="_blank" href="https://www.tas.gov.au/">www.tas.gov.au</a>
Don’t forget land tax, an annual charge levied by most state governments. The amount charged varies from state to state, but it is usually charged as a percentage of the current unimproved land value. The more land you own the more land tax you will pay, so you will need to cost payment of this tax into your budget.
One benefit of townhouses and units is that they occupy less land, which makes them more attractive from a land tax perspective.
Fine-tuning your search
At this point, you should now have selected the state that you are interested in investing in. The next step is to locate the city or town that you want to invest your money into.
This is where you need to put your buying rules into action, so you can match your investing strategy goals to the ideal location.
For instance, do you want to invest in a regional town or a capital city? This will depend on your budget and also your investment strategy. If a high quality property yielding strong capital growth is the aim of your game, and you have a decent amount of money to play with, narrow your focus to the capital cities. If high yields and positive cash flows are your priority, go regional.
If you opt for a capital city investment, do you want a city residence, a suburban house, or a coastal property?
If you’re going regional, do you want a major regional centre with several employment nodes that drive the town’s economy, or do you want to invest in a mining town?
Consider your tenants. Do you plan to rent to students, young families, professional couples or retirees?
Depending on your answer, should you then look for property that is located near schools, hospitals and/or universities?
As you begin to work through all of these questions, you may begin suffering from information overload. This is when investors will be tempted to skip these steps and invest in that suburb that their brother/ cousin/ workmate/ hairdresser/ accountant told them about. Don’t be discouraged! If you put the hard yards in now, you’ll put yourself in a position to enjoy enormous financial rewards in the long term.
 Helen Collier-Kogtevs is an educator and property investor. This is an excerpt from <a target="_blank" href="https://majorstreet.com.au/how-to-start-creating-real-wealth-through-real-estate/">How to Start Creating Real Wealth Through Real Estate</a>, published by Major Street.
For more tips on buying your first investment property, sign up for our free webinar with property expert Chris Gray tomorrow, Thursday, March 22 at 12.30pm <a target="_blank" href="/news">Six Smart Steps Towards Buying Your First Investment Property</a>
 
 
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How to locate the perfect investment property: Helen Collier-Kogtevs

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The total land value of the Richmond Valley municipality was $1.856 billion in July 2011, up 6% from 2008, according to NSW Valuer-General Philip Western.
In 2008 the 10,106 properties in the area were worth $1.749 billion.
Western’s report showed residential land values generally had a moderate increase in value over the three years, while residential land in the towns of Broadwater, Evans Head, Coraki and Woodburn had just a slight increase in value.
Year-on-year the median residential land value increased 2% from $99,000 in 2010 to $101,000 in 2011.
Prime commercial land in the town of Casino generally experienced a slight increase in value, while fringe commercial land generally had a moderate increase in value. Commercial land in Coraki, Woodburn and Broadwater had slight increases in land value.
From 2010 to 2011 the median commercial land value increased 4% from $111,000 to $115,000.
Industrial land values in Casino had a moderate increase in value, while coastal industrial land in Evans Head experienced moderate to strong increases in value.
<img src="/images/stories/richmondvalleymap.png">
Industrial land values in the area increased 3%, from $168,000 in 2010 to $173,000 in 2011.
Rural residential land and hobby farms increased slightly in value over three years, with the exception of rural-residential land closer to the coast but west of the highway, which decreased slightly in value.
Rural land values remained steady over the three years despite falling 3.5% from $171,000 in 2010 to $165,000 in 2011.
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>858 square metres at Fergusson Street, Casino valued at $84,000 </li>
<li>1,161 square metres at Lakeside Drive, Casino valued at $130,000 </li>
<li>832 square metres at McAuliffe Street, Casino valued at $96,100 </li>
<li>790 square metres at Booyong Street, Evans Head valued at $260,000 </li>
<li>717 square metres at Ocean Drive, South Evans Head valued at $400,000 </li>
<li>1,011 square metres at Richmond Street, Woodburn valued at $120,000 </li>
<li>685 square metres at Thomas Crescent, Coraki valued at $87,500</li>
</ul>
Typical commercial land values were:
<ul>
<li>500 square metres at Barker Street, Casino valued at $93,600 </li>
<li>651 square metres at Centre Street, Casino valued at $115,000</li>
</ul>
Typical industrial land values were:
<ul>
<li>1,125 square metres at Sir Valston Hancock Drive, Evans Head valued at $200,000 </li>
<li>2,116 square metres at Cassino Drive, Casino valued at $117,000</li>
</ul>
Typical rural land values were:
<ul>
<li>70.2 hectares at Bruxner Highway, Woodview valued at $300,000 </li>
<li>73.4 hectares at Mongogarie Road, Leeville valued at $400,000</li>
</ul>
Typical rural residential land values were:
<ul>
<li>2 hectares at Sextonville Road, Casino valued at $134,000 </li>
<li>5,000 square metres at Hereford Drive, North Casino valued at $128,000 </li>
<li>1.4 hectares at Casuarina Drive, Swan Bay valued at $165,000</li>
</ul>
Typical hobby farm land value was:
<ul>
<li>17.8 hectares at Avenue Road, Myrtle Creek valued at $130,000</li>
</ul>
 
 
 
<ul></ul>
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Richmond Valley land values up 6% in three years: NSW Valuer-General

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Steady February auction clearances rates encouraged the Reserve Bank to keep interest rates on hold, the full minutes of the March Monetary Policy Meeting of the Reserve Bank Board have revealed.
In making its decision to leave rates on hold, the board noted that the “housing market remained soft, with auction clearance rates in February broadly unchanged from late 2011”.
“Housing credit continued to grow at a slower rate than nominal income,” the minutes also say.
The RBA board identified “Europe and its potential flow-on effects to the rest of the world as the major downside risk for Australia”.
The Australian economy remains sensitive to developments in east Asia, but this is now less of a risk than a few months ago.
The minutes also show the RBA has scope to ease policy in response to any adverse scenario.
According to Westpac senior economists Matthew Hassan and Andrew Hanlan, the main difference between the March minutes and the February minutes is a “significant change in the discussion of structural adjustment in the Australian economy”.
Following the release of the minutes, Westpac Economics says it continues to expect a 0.5% reduction in the RBA cash rate with an initial 0.25% move in May/June and a further 0.25% cut in July.
“To our ear, the shift has, if not fully opened the door to a rate move, at least seen it now slightly ajar,” says Hassan and Hanlan.
“Westpac remains less optimistic than the RBA both on the global front –  we anticipate further bouts of volatility emanating from Europe, disappointing momentum in the US and a more pronounced slowdown in China – and domestically where we view the high Australian dollar, structural adjustment and deleveraging as posing more substantial headwinds to growth.
“The change in RBA rhetoric suggests the debate on domestic conditions is becoming more open. Coupled with the quarter-four national accounts and the governor's comments in his March 19 speech it suggests that if further evidence of sub-trend growth emerges domestically, e.g. in labour markets, and the inflation backdrop remains benign the RBA may start considering further policy stimulus measures sooner rather than later.
“In February this was put mainly as an observation – that differences across sectors showed a degree of structural adjustment but that demand growth overall remained firm and the outlook was for a continued trend expansion with inflation around target.
“The March minutes were more equivocal, putting more emphasis on "the uncertainties inherent in assessing the response of the domestic economy to the disparate forces at work, including the very large rise in resources investment and the high exchange rate” and raising the key question of "whether the necessary adjustment was occurring at an overall pace of growth that kept the economy close to trend and inflation close to target."
According to the two economists, the other key points to come out of the minutes are that the Australian banking system remains relatively strong and the household sector continues to show a more cautious approach towards its finances.
“Aggregate measures of household financial stress remains low, though mortgage arrears rates remain somewhat higher than a few years ago,” Hassan and Hanlan note.
“For the business sector, conditions continued to vary significantly, with the divergent experiences helping to explain why banks' non-performing business loans and business failure rates were somewhat higher than average.
“Overall, though, the business sector was in a better financial position than several years ago, having deleveraged considerably and improved its liquidity position. The commercial property market, traditionally a source of vulnerability for banks, had continued to improve after the recent downturn, though construction activity remains muted and financing activity weak,” they say.
 
 
 
 
 
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Steady auction results helped keep RBA rates on hold, but Europe threat leaves door 'ajar' to further cuts says Westpac

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Average house prices in the 70 largest and mid-size cities in China fell 0.099% in February following falls of 0.14% in January and 0.22% in December, according to calculations by Dow Jones Newswires.

Mark Budden, North Asia area leader at property and construction consults EC Harris, expects property prices to continue to fall in the second half of 2012 and until Chinese government policies governing the property sector are altered.

Budden expects government regulation of the property sector – introduced two years ago – to remain in place for the forseeable future as part of efforts to curb real estate speculation.

Current regulations include not allowing existing home owners to buy a second investment property.

House prices though are still fractionally (0.17%) up on the same time last year, but trending down from the 0.7% year-on-year gain in January.

The Dow Jones calculations are based on the latest monthly Chinese government’s National Bureau of Statistics report, which showed that prices of newly built homes fell in in 45 of the 70 cities from January to February, compared with declines in 48 cities from December to January.

Prices in 27 of the 70 cities were lower in February than they were a year earlier (compared with 15 in January), with marginal price falls recorded in Beijing, Shanghai, Shenzhen and Guangzhou.

House prices increased in four of the 70 cities in February, compared with none in January.

Last week Chinese Premier Wen Jiabao said the government would continue to regulate the property sector to prevent chaos in the housing sector.

“We must not slacken our efforts in regulating the housing sector. A bursting property bubble would hurt the entire economy, and the government wants “long- term steady and sound growth” in housing, he said.

Earlier this month rating agency Standard &amp; Poor’s warned that Australian house prices could decline by more than 5% in 2012 if China's economy experiences a soft landing with GDP growth at about 8%.

But in the event of the less-likely scenario, under which China's economy slows to 5% GDP growth, Australia could be sent into recession, S&amp;P warned.

China's hard landing likely flow-on effect of higher unemployment could trigger a sharp decline in Australian house prices of 20% or more, according to S&amp;P, which rated the prospect of a hard landing happening at 10%. The other scenario – a medium landing – would trigger a 10% price fall, said S&amp;P. The company said there was a 25% chance of a medium landing.
 
 
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Tiny drop in Chinese house prices in February, but further falls expected

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Borrowers who bought their homes with small deposits may struggle to refinance their mortgages in 2012 due to falling property values, RateCity.com.au has warned.
The problem would apply to both variable-rate and fixed-rate mortgage holders looking to refinance into a new fixed or variable-rate loan but not to those that have signed a contract where a fixed-term loan automatically rolls over into a variable-rate mortgage from the same lender.
Mortgagees on high loan-to-value (LVR) ratios in Brisbane, Melbourne and Hobart will be most at risk of not being able to refinance, as their mortgage debt may now be greater than the value of their homes.
House prices fell by 6.8% in Brisbane in 2011, by 6.1% in Melbourne and by 5.9% in Hobart leading a 3.6% fall nationally, according to figures compiled by RP Data-Rismark.
A 3.6% decline in 2011 would translate into a $400,000 home falling to a value of $385,600 over the course of the year.
Changes in capital city property values year-on-year
<div align="center">
<table cellpadding="0" cellspacing="0" border="0" style="width: 470px;"><tbody>
<tr>
<td width="213">
City
</td>
<td width="213">
Median dwelling price
</td>
<td width="213">
Year-on-year change
</td>
</tr>
<tr>
<td width="213">
Sydney
</td>
<td width="213">
$485,000
</td>
<td width="213">
-0.3%
</td>
</tr>
<tr>
<td width="213">
Melbourne
</td>
<td width="213">
$462,500
</td>
<td width="213">
-6.1%
</td>
</tr>
<tr>
<td width="213">
Brisbane
</td>
<td width="213">
$420,000
</td>
<td width="213">
-6.8%
</td>
</tr>
<tr>
<td width="213">
Adelaide
</td>
<td width="213">
$370,000
</td>
<td width="213">
-4.4%
</td>
</tr>
<tr>
<td width="213">
Perth
</td>
<td width="213">
$450,000
</td>
<td width="213">
-4.3%
</td>
</tr>
<tr>
<td width="213">
Darwin
</td>
<td width="213">
$450,000
</td>
<td width="213">
-2.3%
</td>
</tr>
<tr>
<td width="213">
Canberra
</td>
<td width="213">
$488,000
</td>
<td width="213">
-2.2%
</td>
</tr>
<tr>
<td width="213">
Hobart
</td>
<td width="213">
$328,000
</td>
<td width="213">
-5.9%
</td>
</tr>
<tr>
<td width="213">
Capitals
</td>
<td width="213">
$450,000
</td>
<td width="213">
-3.6%
</td>
</tr>
</tbody></table>
</div>
Source: RP Data
“Imagine buying a $400,000 property with a 5% deposit,” says RateCity.com.au chief executive Damian Smith.
“On day one, you’d assume you had $20,000 of equity value in the property. But if the property’s value declines by 10%, then it’s worth just $360,000 – and you have no equity at all.
“If you try to refinance in those circumstances, you will find yourself owing more than the property is worth – a mortgage of $380,000 as against property value of just $360,000.”
Besides creating problems for buyers with high LVRs, Smith says a downturn in refinancing this year due to uncertain property values would be a serious blow to Australia’s lenders.
“The industry relies on refinancing of existing mortgages for a big proportion of their business. Refinancing was the main driver of home loan volume in 2011, as in fact it has been over the past decade.
“According to RateCity research, 51% of all home loans last year were from refinanced mortgages – this is the highest proportion of refinanced loans on record for at least the past 20 years,” Smith says.
“If property values drop further and it discourages borrowers from refinancing, the mortgage market could be in for a very slow year.
“But on the flip side, first home buyers and borrowers with more than 20% equity in their home are in the best position to find a great value home loan as lenders will be desperate to find new business.”
To make a more informed decision before you refinance, download Property Observer’s free eBook: <a href="http://propertyobserver.com.au/ebooks/free-ebook-12-tips-for-refinancing-your-mortgage" target="_blank">12 tips for refinancing your mortgage – how to find the best home loan in 2012</a>
 
 
 
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