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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

<html><body>
Rental vacancies in the Perth metro region dropped to 2.3% in February, according to Real Estate Institute of WA figures for the three months to February. 
This is down from 2.8% at the end of last year. 
As a result of the tighter market median asking rent for units, apartments, villas and townhouses increased by $10 a week to a median of $390 per week. 
Rents for houses remained steady at $420 per week. 
Demand for rental accommodation was particurlarly high along Perth's north coastal market from Scarborough upwards, which recorded a vacancy rate of just 1.2% for February and 1.5% for the three months to February. 
In the western suburbs the rate remained steady at 2.3%. 
“The vacancy rate has tightened in Perth's outer southwest corridor where the monthly vacancy rate for Kwinana-Rockingham has fallen one percentage point from 2.5% in January to 1.5% in February, which means that in the three months to February the vacancy rate was 2.2%,” says REIWA president David Airey. 
Airey says the fall in the vacancy rate is not surprising because the volume of property listed for rent has fallen 24% since the start of the year, from 2,900 homes to 2,200 at the end of February. 
“It’s also the case that there is strong seasonal demand for rental property in the March quarter,” he says. 
Airey the rental pressure is coming from those who are opting to rent rather than buy and from the growing demand for accommodation from new migrants flowing into WA, which caused a solid upturn in rents in 2011. 
“The long term equilibrium vacancy rate in Perth is 3%, and the lowest point we have recorded was just 0.8% in the March quarter of 2007,” he says. 
Metropolitan rents could tighten further in the coming months with the “volatile” month-only reading for February showing a vacancy rate of just 1.6%. The last time a reading of 1.6% was recorded was four years ago for the December quarter of 2007.
Property Observer readers can secure free tickets for the Perth Home Buyer and Property Investor Show by<a target="_blank" href="https://www.homebuyershow.com.au/special-offers/propertyobserver-ticket-offer/"> clicking here</a>.
 
</body></html>

lschlesinger-FZcF9M3vE6

Perth unit rents rise as vacancies tighten to 2.3%

<html><body>
The Napoleon Perdis Makeup Academy has leased space on Queen Street, Woollahra.
It’s the former post office premises whose closure was shut down in controversial circumstances in early 2011 by Australia Post.
The space has been empty since then.
The Perdis lease is for 112 square metres of ground-floor space.
The rent has been struck at $156,000 a year with options through to 2019 typically with 4% annual rental increases.
The share of outgoings total 40%, which includes council rates, sewerage and water charges, land tax, garbage disposal and insurance. Perdis opened in first store in 1995 in nearby Oxford Street, Paddington and now has 72 concept stores and over 4,500 point-of-sale locations in Australia and New Zealand.
The latest tenant on Queen Street is Anna Thomas, one of Australia's newest luxury women's fashion labels hailing from Melbourne, taking space in the former Howell and Howell building. The prestige shopping precinct attracted subdued interest ever since June 2011 when Alasdair MacLeod and his wife, Prudence, bought the Howell and Howell antique premises fetched $4.25 million post auction through Richardson and Wrench agent Ben Vaughan in conjunction with Laing and Simmons agent John Knott.
Wholefoods House is set to swap sides of the road moving almost adjacent to the Woollahra Hotel. The landlord had been seeking $210,000 a year tenants for the former CBA premises/Gary Castles premises on the Moncur Lane corner, but its not known what rent leasing agent Ben Vaughan secured.
Pauline Goodyer from GoodyerDonnelley Real Estate has listed the <a target="_blank" href="https://www.gdrealestate.com.au/includes/property/search.asp?f_propertyID=1861441&amp;f_ct=1&amp;f_st=1&amp;f_ps=2&amp;xsl=2421&amp;stylename=2421_">retail premises of fashion designer Lisa Ho</a> and her husband, fashion fabric importer Philip Smouha. The three-storey building on Queen Street has operated as a hotel, a newspaper distribution company and a bookshop, and then trading as G.L. Auchinachie and Son Antiques until ins 2004 sale.
The 400-square-metre retail site premises is a 1905 building with rear lane access. It cost $4.5 million in 2004.
Offers are due by April 14.
Woollahra's Queen Street<a target="_blank" href="https://www.propertyobserver.com.au/new-south-wales/fashion-royalty-boosts-queen-street-s-leasing-pedigree/2011062250571"> is fast becoming fashion central as its Dickensian antique dealers depart</a>.
Martyn Cook, the street's most ubiquitous antique dealer, and the interior decorator Thomas Hamel, relocated last year to an 1891 heritage building, the Redfern Electric Light Station, with 1,042 square metres of space.
</body></html>

jchancellor-FAypfDUnLy

Napoleon Perdis takes Woollahra post office and Anna Thomas adds to Queen Street fashionistas 

<html><body>
On the back of yesterday’s news that consumer confidence has fallen to levels last seen before the November and December rate cuts CommSec chief economist Craig James says Australians “risk talking ourselves into a growth recession”.
“[This is] a period of sub-trend economic growth, which feels in many respects like a recession but doesn’t involve the economy actually going backwards,” says James.
The <a target="_blank" href="https://www.propertyobserver.com.au/trends/slight-improvement-in-housing-sentiment-defies-drop-in-consumer-confidence-in-march-westpac-index/2012031453826">March Westpac–Melbourne Institute Index of Consumer Sentiment</a> showed a slight increase in housing sentiment but an overall five-point drop in consumer confidence to a level of 96.1, meaning pessimists outweigh optimists.
It also revealed that tenants were a lot more pessimistic (down 10.8%) than households with a mortgage (down 6.8%) and those who own their homes outright (flat).
“Then there is the weak housing market with new home sales at 11-year lows, dwelling starts slumping almost 7% in the December quarter and home loans falling in January,” James says.
“And then there is retail spending – up just 0.3% in January with chain store sales up only 2% on a year ago,” he says.
Adding to the gloom will be the release of new US home sales for February on Friday, which James forecasts will continue “bumping along the bottom” although the annual rate is tipped to rise from 321,000 to 327,000 in February.
To turn things around, James suggests: “Better times abroad would help, lifting our share market, and causing us to re-assess our conservative attitudes. “Aussies need to focus again on the opportunities, not the risks. And a rate cut from the RBA wouldn’t go astray either. Inflation is not a threat and the economy is stagnating.
“So there are few risks about trimming rates another quarter of a percent. And if conditions started to lift quicker than expected, a rate cut could always be reversed,” he says.
“It gets down to the fact that the majority of Australians live outside the areas that are affected by the mining boom. And in those non-mining areas, the news flow has been overwhelmingly negative, not positive,” he adds.
Commonwealth Bank economist James McIntyre says the consumer sentiment index shows the economy to be “muddling along” at a below-average level, though some parts of the economy remain “very bright”.
“The RBA has recently highlighted the importance of developments in the labour market for the course of interest rates whilst the current level of structural change and economic shocks are rendering other readings of the economy less useful.
“In that vein, there is little new information between now and the April RBA board meeting.  Our expectation is that the RBA will remain on hold in April, with the first-quarter CPI figures (due April 24) the next major marker for monetary policy,” he says.
 
 
 
 
 
</body></html>

Inflation not a threat and another interest rate cut needed: CommSec’s Craig James

<html><body>
You’ve found what you think is a brilliant development site.  Now it’s time to jump on that roller coaster and start the ride of your life as you commence the analysis process.  Will the project be feasible?  What is feasible, anyway?
Let’s find out.  Feasible is really another word for “is it going to be financially worth it for you to spend your time, energy, money, blood, sweat and tears developing this site?”.
Some advice I can give you about property investing and anyone in property will also tell you, to stay emotionally unattached to the property, as this is where bad decisions can be made. I have seen it many times, and this is where it can all come undone.
Firstly, it’s important to determine your development strategy and your investing criteria prior to looking for a development site.  Your strategy may include:
<ul>
<li>Land subdivision</li>
<li>Renovating an existing dwelling</li>
<li>Dual-occupancy or low-density development</li>
<li>Renovating an existing dwelling and building new villas/units also on the land</li>
<li>Medium-density development</li>
<li>All of the above</li>
</ul>
Your budget will help to determine your development strategy. A simple land subdivision will be less costly (but not necessarily quicker) than a larger villa/unit development, for instance.
As part of your strategy, you will need to think about what profit margin you would feel comfortable making from a development.   You may have heard about the “20% profit margin” rule for developers?   Once all development costs are taken from the potential sale result of the properties, (when selling the properties) there will be a 20% profit margin.  Personally, I don’t always work back from a certain profit margin, as I find this restrictive.
Most of my clients are looking to boost their portfolios and hold the new properties long term, so we also need to meet other criteria.  By other criteria, I mean rental returns on completion.  For instance, if a client wants to create a positively geared development the end gross yield will need to be around 10% and we will actively search for development sites in very strong rental areas of the Hunter region of NSW to meet this objective.  Other criteria will include the amount of equity we can create from the project.  We strive to create over $100,000 in equity after our project management fee.
To determine the feasibility of a site, you will need to:
<ul>
<li>Talk to an accountant who specialises in property and one who preferably develops property him or herself as he or she can advise you on the best structure to purchase under and explain the tax implications when developing such as GST and CGT. </li>
<li>Meet with a financial lender or a bank to determine your budget and the best loan structure for your development.  It’s important to choose a lender that offers construction loans and find out what their lending criteria is around this, i.e. not all residential lenders will lend to you for a four unit site for instance.  Check interest rates on these loans.</li>
<li>Meet with solicitor to determine his or her costs. He or she will check for restrictive covenants or easements that may affect the land and will also make sure services are available and connected, especially if you are developing in a new area, as well as finalising the deal for you.</li>
<li>Read the local development control plan (DCP) and local environment plan (LEP) and speak with your council’s town planner to find out development application and CC (construction certificate) costs. Get friendly with the town planner to find out which developments the town wants to see in the area, as this could save you time and money by getting it right the first time. </li>
<li>Meet with an architect and builder to determine what you can build on the site.  Some builders offer standard designs which will save you design fees.  If they do this, then they will be familiar with the local planning requirements.  If you are not happy with a standard design, engage a local architect to design specifically for the site. Get a quote.</li>
<li>A surveyor will give you advice on the subdivision process. He or she will prepare your subdivision plan and estimate costs relating to the subdivision including sewer extension and service connection costs. </li>
<li>Once you have a concept design and before you lodge your DA, meet with builders to determine construction costs. Try to get three quotes and make sure they offer you a fixed-price contract.</li>
<li>Talk to real estate agents to determine the value of your development and rental returns on completion as this will have huge impact on the success of the feasibility.</li>
<li>Research other costs such as stamp duty, reports, insurance and interest payments.</li>
</ul>
The aim is to keep the above costs to a minimum so you will receive a higher profit margin. All this information can be kept in a spreadsheet, or there are software programs to help you with this process.
Below is a quick one-page analysis I do to determine if a development is going to be feasible. In this case the client is keeping the three properties we have created from one.
Purchase price three-bedroom house on 1,012 square metres of land: $210,000 Estimated set-up costs, stamp duty, legals, pest and building reports, survey: $8,500 Estimated renovation cost: $8,000 Build cost for a two-bedroom duplex (2 x villas) to be built behind existing house: $353,000 Contingency:  $20,000 Note: build costs includes all council, subdivision and other fees and charges. I always ask my builder to wrap all development costs into their contracts so my clients can maximise their lending.
Total development cost to create three properties from one in Hunter region of NSW:  $599,500 
Estimated end values:
Renovated three-bedroom house on 400 square metres:  $220,000
Two-bedroom villas $260,000 each:  $520,000
Total end values:  $740,000
Potential gross equity to be created: $140,500
Note: lending costs are not included at this stage:
 
Estimated rental returns:
Renovated house: $300 per week
Two-bedroom villas @ $280 per week each:  $560 per week
Total rental return: $860 per week or $44,720 per year
Gross yield on completion of development: 7.5%
 Gross rental yield: How it works One of the first calculations you will need to understand if you intend renting the properties on completion is the gross rental yield (GRY). To calculate the GRY you need the annual rent and the total cost of the development. If we use the above example:
Annual rent: $860 per week x 52 = $47,720pa Total development costs: $599,500 Gross yield: $47,720 divided by $44,720 =  7.5%
The yield on the above example of 7.5% is ideal at the moment, as anything over 7% is considered to be a strong yield.  Some of our developments are creating up to a 10% gross yield.
Once you have obtained the estimates for your development and the figures are looking good, you have some actual estimates to go back and speak to your lender about and ensure you can finance the project. There are various finance options so seek professional advice on the best one for your situation.  Then before you purchase, ensure you have discussed the best legal entity to be purchasing under for your individual circumstances with your accountant.
When your finance is preapproved, you can then start to negotiate the purchase. Always ensure you have a preapproval before making an offer so you can move quickly to exchange. This is a good negotiation tool.  Ask for a longer settlement and a lower deposit which will reduce your holding costs.
There are many more things to consider for your site selection, so it’s important you do your due diligence.  In the development game, time is money. So you will need to learn to assess a potential site very quickly. One way to fast track the analysis process is to engage other professionals to do this important work for you.  If it is your first development then work with an experienced project manager so you can learn from them as you progress through the complicated and challenging journey of your property development.  Enjoy the ride!
Jo Chivers is director of <a href="https://www.propertybloom.com.au/" target="_blank" title="Property Bloom">Property Bloom</a>, which manages property development.
</body></html>

jochivers-wq5Bp59R5a

How to determine if a site is feasible for development

<html><body>
For years I’ve encouraged analysts and commentators to avoid using the performance of property in the unique areas in which they live – e.g., Mosman, Toorak, Whale Beach, or the Mornington Peninsula – as a proxy for Australia’s diverse, $4 trillion housing asset class.
The behavioural tendency to extrapolate out from our immediate environs to the 8.5 million homes not located in our street leads to what psychologists might call an “anchoring bias”. It is no different to taking a micro-cap listed on the ASX and assuming that its returns are a good guide for the ASX All Ordinaries Index. If anything, individual homes, and specific suburbs, are even more heterogeneous.
This anchoring bias is arguably exacerbated by the fact that media organisations tend to focus the bulk of their efforts on covering $1 million-plus properties. But as my first chart below shows, these homes are irrelevant to 95% of all Australian property buyers. In particular, this diagram depicts the distribution of all sales over the last 12 months sorted by price. You can see that homes worth more than $1 million accounted for just 5.7% of total sales. For what it is worth, 90% of all Australian homes sales were for dwellings worth less than $800,000.
Click to enlarge
<a href="/images/stories/march151.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/march151thumb.gif"></a>
Anyone familiar with Australia’s housing market will intuit that this makes sense. The median dwelling price across all regions and property types was only $400,000 in December 2011. As I reported earlier in the week, Australia’s dwelling price-to-disposable household income ratio has now fallen 12% from a peak of 5.2 times to its current level of around 4.5 times.
Notwithstanding these facts, the property lift-outs in most newspapers and magazines dedicate an inordinate amount of space to the tiny minority of homes that trade for more than magical million-dollar mark.
We also know that by dint of their incomes, many of the analysts, economists, retail bankers, fund managers, investment bankers, accountants and financial planners who are called on to proffer comment on Australian house prices live in its more salubrious suburbs. In this respect, they are especially ill-placed to make inferences about the broader market.
This is likely why during downturns, such as in 2008 or 2011, one frequently finds investment bankers amongst the most “bearish” on conditions, with shrill claims they are down 10% to 30%. Ironically, the bankers are probably right if they are talking about Bellevue Hill, Bondi or Point Piper. But these statements are meaningless when it comes to the 450,000 homes that sell each year that are not located in these areas.
Of course, if the bankers’ communities were representative of the national market there would be no bias. But they are not. In fact, they have systematically underperformed during these corrections. My next chart shows the change in the value of homes situated in Australia’s “cheap”, “expensive”, and “mid-priced” suburbs since the housing market started flat-lining in April 2010. The chart beneath it presents the same data in a slightly different way by comparing Australia’s most expensive suburbs with all others.
Click to enlarge
<a href="/images/stories/march152.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/march152thumb.gif"></a>
Click to enlarge
<a href="/images/stories/march153.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/march153thumb.gif"></a>
If you happen to live in the most affordable 20% of suburbs, the value of your dwelling drifted by only a trivial 1.5% over the last 1.5 years. If you inhabited the price cohort above, which we classify as the “middle 60%” of suburbs ranked by price, your home’s value declined, on average, by a still fairly modest 3.7%.
It is, by way of contrast, the affluent who have suffered the worst. The most expensive 20% of suburbs across Australia have registered much more substantial price falls of about 6.5% over this period. And you can bet that if you broke this group down further, into, say, the dearest 10% of suburbs, you would find steeper losses again.
So what explains the inferior performance of Australia’s most expensive localities over the last year or two? I would argue one candidate is post-GFC structural adjustment.
The financial services industry, which was one of the principal drivers of demand in the dearest suburbs in Australia’s non-resources states, has now quite radically altered its future growth expectations.
The retail banks, investment banks, and stock broking firms are not shelling out anything like the pay packets that were prevalent in the period preceding 2007. The abysmal performance of the share market more generally has weighed heavily on the portfolios of wealthier individuals, who were often loaded up with equities by their advisors. If only they had more cash and fixed-income!
I would venture that this new “air pocket” in housing demand is most relevant to non-resources states, and to homes valued at between, say, $3 million and $10 million. Australia is still creating extraordinary wealth, with the list of billionaires now numbering in excess of 20. And private sector wages growth –  and total disposable household income growth – have been expanding at normal rates.
In the last one to two years, home buyers have received a tremendous affordability dividend, with the circa 4% decline in house prices accompanied by healthy disposable income growth of around 5% per annum. And now due to the RBA’s benevolence, mortgage rates are 0.4 percentage points lower than they were in October 2011.
So I suspect the housing market will remain healthy for most Australians. RP Data-Rismark’s new daily house price index, which is quoted by the ASX, has reported small capital gains over February and March. There is nevertheless likely to be a fundamental downward adjustment in that specialised $3 million to $10 million segment that was once dominated by financial services professionals.
On the other hand, it is questionable whether demand at the extreme heights of the market, where estates trade for more than $20 million, and buyers typically have little debt, will be much affected.
Australia will keep on producing individuals worth hundreds of millions, if not billions, of dollars. For the time being, however, fewer will do so in financial services.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 
 
 
 
</body></html>

chrisjoye-JYhJsTrNRC

It's a millionaires' malaise, but housing market healthy for most Australians: Christopher Joye

<html><body>
House prices rose by 0.8% in February and while that might not sound like much, it is the biggest monthly increase in 18 months.  Prices rose in six of our eight capitals and in almost every major regional city, highlighting the underlying strength of Australian residential property.
The future looks bright too, with auction clearance results now hovering around the low 60% mark.  Remember clearance rates over 50% means that prices should continue to grow.  In addition the amount of resale stock on the market continues to fall.  Stock levels have fallen since the beginning of the year.
Underlying demand for new property is also set to improve with a big lift in permanent settlement in Australia.  The number of people settling Down Under hit the highest levels in 3½ years in January.  Close to 14,000 people are now arriving each month, compared with the lows of 9,500 per month in late 2010.  Over the past year 146,500 people moved permanently to Australia.
To quote Craig James of CommSec “Population is power, lifting economic growth and momentum”.
More people means greater demand for homes, cars, household appliances and heaps of other stuff.
It is anticipated 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 recent lift in migration is expected to see new housing starts 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.
Queensland looks set to benefit the most.  Despite 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.
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.
</body></html>

michaelmatusik-49YzLvdmNv

The future of Australian property markets looks bright – especially in Queensland

<html><body>
There were 887 sales in Perth for the week ending March 14, according to the Real Estate Institute of Western Australia. This is up from 727 sales last week.
<img src="/images/stories/reiwamarch14.gif">
Property Observer readers can secure free tickets for the Perth Home Buyer and Property Investor Show by<a style="font-size: 14px; text-align: left;" href="https://www.homebuyershow.com.au/special-offers/propertyobserver-ticket-offer/" target="_blank"> clicking here</a>.
 
</body></html>

cknowlton-QnEa6ntUYP

Perth sales up 35% on same week last year: REIWA

<html><body>
The total land value of the 2,475 properties in Harden was $535 million according to NSW Valuer-General Philip Western.
The figure slipped 0.5% from the 2008 valuation of $538 million.
Residential land prices in the twin towns of Murrumburrah-Harden had a moderate decrease.
This decrease includes a median residential price drop of 5% from 2010’s figure $25,700.
Commercial land prices also experienced a moderate decrease over the three years but from 2010 to 2011 business land prices remained constant.
Industrial land in the area had a slight decrease since the last valuation although prices remained constant from 2010 to 2011.
Rural and hobby farm land prices in Harden Shire remained generally steady over the three years, although hobby farms towards the southern part of the shire had a moderate increase in value, while larger hobby farms towards the north and west of the  shire experienced a slight decrease.
<img src="/images/stories/hardenmap.gif">
Year on year, rural land prices in Harden increased 5% from $177,000 in 2010.
Village land values generally remained steady except for a slight increase in Galonga and a strong increase in Wombat.
Landowners and rate-paying-lessees received a notice of valuation this month.
The valuations are used to determine rates and land taxes on investment properties.
Typical residential land values were:
<ul>
<li>1,012 square square metres at Binalong Street, Harden valued at $22,600 </li>
<li>1,897 square square metres at Ward Street, Harden valued at $32,400 </li>
<li>1.993 hectares at Doolan Road, Harden valued at $67,500</li>
</ul>
Typical commercial land value was:
<ul>
<li>550 square metres at Neill Street, Harden valued at $17,700</li>
</ul>
Typical industrial land values were:
<ul>
<li>2,023 square metres at Vernon Street, Murrumburrah valued at $28,500 </li>
<li>7,653 square metres at Jack Ward Drive, Harden valued at $17,700</li>
</ul>
Typical rural land values were:
<ul>
<li>529 hectares at Bogolara Road, Berremangra valued at $582,000 </li>
<li>211 hectares at Fairview Road, Galong valued at $644,000 </li>
<li>242 hectares at Cullinga Mines Road, Harden valued at $663,000 </li>
<li>157 hectares at Back Demondrille Road, Murrumburrah valued at $576,000 </li>
<li>303 hectares at Jugiong Road, Harden valued at $670,000 </li>
<li>224 hectares at Moppity Road, Young valued at $680,000</li>
</ul>
Typical rural residential land values were:
<ul>
<li>6.8 hectares at Hume Highway, Jugiong valued at $38,100 </li>
<li>2 hectares at East Street, Harden valued at $80,000 </li>
<li>2 hectares at Barwang Road, Harden valued at $55,000 </li>
<li>8.4 hectares at Race Creek Road, Wombat valued at $96,800</li>
</ul>
Typical hobby farm land values were:
<ul>
<li>40.1 hectares at Jugiong Road, Harden valued at $194,000 </li>
<li>49.4 hectares at Ellerslie Road, Wombat valued at $260,000</li>
<li>25.5 hectares at Currawong Road, Murrumburrah valued at $208,000 </li>
<li>63.4 hectares at Kalangan Road, Galong valued at $200,000 </li>
<li>14.4 hectares at Cunningar Road, Galong valued at $50,000</li>
</ul>
Typical village land values were:
<ul>
<li>1,100 square metres at High Street, Galong valued at $16,500 </li>
<li>2 hectares at Stapylton Street, Jugiong valued at $38,400 </li>
<li>1,366 square metres at Parkes Street, Jugiong valued at $17,200 </li>
<li>1,265 square metres at Rose Street, Wombat valued at $23,300</li>
</ul>
 
 
<ul></ul>
</body></html>

awalsh-7Ub9EypybQ

Land values flat in NSW region of Harden in past three years: NSW Valuer-General

<html><body>
Property group Stockland has found strong interest in its retirement development in Gowanbrae village, about 15 kilometres north of Melbourne. Since the development’s off-the-plan marketing launch in October 2010, 32 of the 39 apartments have sold.
The Gowanbrae apartments cater to a new breed of retirees, who are keen to maintain their active lifestyles as they age.
“Nowadays, both retirees and the community realise retirement presents choice when it comes to living standards that encourage active and social lifestyles,” Stockland says.
“Moving into a Stockland retirement village is an independent living choice and is based on factors such as: enhanced social contact, secure surroundings, peace of mind within a close-knit community and home downsizing for a renewed active lifestyle.”
The development features nine one-bedroom apartments, 24 two-bedroom apartments and six two-bedroom apartments with studies across three storeys.
Units range from 63 square metres to 105 square metres and are priced from $319,000 to $495,000.
The development includes onsite health services such as 24-hour emergency medical assistance, physiotherapy, exercise programs and medical rooms for doctors’ visits. All doorways and hallways are wide enough to accommodate people with limited mobility.
Features also include a bar and dining room, dance floor, bowling green, library, craft room, pool, spa and beauty salon.
Construction was completed on the development at the end of last year, and about 70% of the sales were off the plan.
The development is part of Stockland’s “three R” strategy – focusing on residential, retirement and <a href="https://www.propertyobserver.com.au/retail/stockland-continues-to-focus-on-higher-yielding-retail-commercial-property/2012020953322">retail</a>, which chief executive Matthew Quinn has implemented.
 
 
</body></html>

Retirees snap up units in Stockland's Gowanbrae development

<html><body>
The pace of decline in residential construction picked up notably in the final quarter of 2011, with residential starts falling to their lowest level since the GFC led by a 21% drop in Queensland, according to the latest ABS figures.
December quarter dwelling commencements fell 13.4% (compared to the same period in 2010) to a seasonally adjusted total of 33,653.
This is more than double the 5.8% quarter-on-quarter decline recorded in the September 2011 quarter.
Over the December quarter, housing starts fell 2.7% to 21,845 following a fall of 1.7% in the September quarter while the more volatile unit starts sector fell by 13.9% to 10,739 following a fall of 10.7% in the September quarter.
Apart from the big drop in Queensland dwelling starts there was 7.8% fall in Victoria and smaller falls in South Australia, WA, NT and the ACT.
NSW and Tasmania recorded small rises in dwelling starts.
 
Seasonally adjusted dwelling starts 
 
<table style="width: 459px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="76" nowrap></td>
<td width="51" nowrap>
 NSW
</td>
<td width="52" nowrap>
 Vic
</td>
<td width="47" nowrap>
 Qld
</td>
<td width="55" nowrap>
 SA
</td>
<td width="44" nowrap>
 WA
</td>
<td width="44" nowrap>
 Tas
</td>
<td width="39" nowrap>
 NT
</td>
<td width="52" nowrap>
 ACT
</td>
</tr>
<tr>
<td width="76" nowrap>
Dec-10
</td>
<td width="51" nowrap>
7628
</td>
<td width="52" nowrap>
14028
</td>
<td width="47" nowrap>
6603
</td>
<td width="55" nowrap>
2553
</td>
<td width="44" nowrap>
5276
</td>
<td width="44" nowrap>
746
</td>
<td width="39" nowrap>
261
</td>
<td width="52" nowrap>
1683
</td>
</tr>
<tr>
<td width="76" nowrap>
Mar-11
</td>
<td width="51" nowrap>
8483
</td>
<td width="52" nowrap>
13957
</td>
<td width="47" nowrap>
7218
</td>
<td width="55" nowrap>
2494
</td>
<td width="44" nowrap>
5051
</td>
<td width="44" nowrap>
760
</td>
<td width="39" nowrap>
456
</td>
<td width="52" nowrap>
1072
</td>
</tr>
<tr>
<td width="76" nowrap>
Jun-11
</td>
<td width="51" nowrap>
7421
</td>
<td width="52" nowrap>
15075
</td>
<td width="47" nowrap>
6253
</td>
<td width="55" nowrap>
2425
</td>
<td width="44" nowrap>
5087
</td>
<td width="44" nowrap>
649
</td>
<td width="39" nowrap>
159
</td>
<td width="52" nowrap>
1397
</td>
</tr>
<tr>
<td width="76" nowrap>
Sep-11
</td>
<td width="51" nowrap>
7301
</td>
<td width="52" nowrap>
12937
</td>
<td width="47" nowrap>
6824
</td>
<td width="55" nowrap>
2540
</td>
<td width="44" nowrap>
4782
</td>
<td width="44" nowrap>
574
</td>
<td width="39" nowrap>
296
</td>
<td width="52" nowrap>
1290
</td>
</tr>
<tr>
<td width="76" nowrap>
Dec-11
</td>
<td width="51" nowrap>
7342
</td>
<td width="52" nowrap>
11993
</td>
<td width="47" nowrap>
5605
</td>
<td width="55" nowrap>
2149
</td>
<td width="44" nowrap>
4626
</td>
<td width="44" nowrap>
607
</td>
<td width="39" nowrap>
236
</td>
<td width="52" nowrap>
1051
</td>
</tr>
</tbody></table>
 
Source: ABS
 
 
</body></html>

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

The apartment feature many buyers don't think about, until their first missed delivery

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News