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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Buyer demand and confidence eased in the pricey inner-Melbourne municipality of Stonnington during 2011, according to Jellis Craig's Annual Property Review, but the agency expects buyers to return to the market for blue-chip properties in 2012.
“In general, against some easing of demand and buyer confidence driven by European concerns, Stonnington held well in 2011. As the municipality takes in some of Melbourne’s highly sought, blue-chip suburbs, it is important to reflect on how specific areas have performed over the last three years, to put any projections for 2012 into context,” say report authors Damien Davis and Steven Abbott.
 
Click to enlarge
<a href="/images/stories/ston1large.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/ston1.jpg"></a>
“Having peaked in September 2009, prices in Armadale and Toorak gradually declined over 2010/2011 back to those of early 2009 levels. However, the Armadale and Toorak price medians can be skewed by several significant sales in any one quarter, which needs to be taken into consideration in suburbs with a low turnover of property.
“Despite quarterly fluctuations in the market overall, the key drivers to the desirability of these suburbs are not investor led. Access to quality schools, parkland, the availability of public transport along with easy freeway access and the superb shopping restaurant and cafe facilities on offer, ensure that property across Stonnington is tightly held,” they say.
Click to enlarge
<a href="/images/stories/ston2.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/ston2thumb.jpg"></a>
Source: <a href="https://www.jelliscraig.com.au/" target="_blank">Jellis Craig</a>'s Annual Property Review
“One of our most significant sales last year was a very large parcel of land at 343-345 Glenferrie Road, Malvern, near Stonnington Town Hall. This 2,063-square-metre allotment of prime residential property was offered with current plans and permits for quality apartments with basement parking and attracted keen developer interest. It was eventually secured by an international consortium baring testimony to confidence in longer-term development opportunities.
“Into 2012, the market in Stonnington has met with renewed enthusiasm. The amount of property enquiry is up significantly on that of late 2011, and we have already transacted a number of January and February sales, normally a quiet month in the sales calendar,” the report notes.
“Buyer sentiment is certainly significantly more positive, and we would expect this increased confidence to translate into competitive purchasing. While potentially decreasing interest rates are certainly a contributing factor to increased demand, we do not expect this to appreciably increase prices over the next 12 months but more contribute to a stabilised market best described as conservatively optimistic.”
 
 
 
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Stonnington prices eased in 2011 but are likely to pick up in 2012: Jellis Craig

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There was a time when housing was seen primarily as a place to shelter loved ones, to keep possessions safe, to protect against the elements and through permanent settlement, stake a claim on the land, however securing this shelter has never been an easy road.  Historically, as soon as man began to “settle” housing became a luxury reserved for the rich.  You could argue that it hasn’t changed much – especially in Australia, where rising house prices and a shortage of “useable” accommodation has placed a strain on aspiring home owners thereby gradually reversing the trend from ownership to tenancy.
Since history began, housing was an integral part of the most valuable asset man desired, fought over, possessed and in many cases died for – land.  Land was – and has always been – used as a symbol of power and wealth.  Whether it be a means to make a living through effective cultivation, a form of wielding control over a resident population, a place to build the modern-day castle, or simply a speculative investment, it’s the most valuable commodity mankind owns – a valuable and finite commodity that becomes more so as the population expands.
Back in mediaeval times, there was no set system of ownership.  If you found it, you owned it, and if you wanted it, you fought for it. It didn’t come with recognised rights of ownership or tenancy laws protecting the resident population.  However all this changed on the most important date in <place><country-region>England</country-region></place>’s history – 1066.  When William the Conqueror took England, he declared all the land ownership of the Crown.  Keeping a quarter for himself as a personal holding, he gave a proportion to the church and split the rest into “manors”, which he distributed out under strict freehold conditions to barons.  He understood the value of land and the emotional envy it could inspire; therefore he was careful not to provide anyone a proportion large enough to invoke rebellion.
However, what he did provide was – as never before – the start of a recognised form of “free ownership” able to be split, used, sold and inherited as a personal holding.  In return for this generosity, the barons were required to pledge loyalty to the king in the form of monitory payment and – when required – military force.  After taking their share, the land was further subleased to knights, who thereby paid for their holding with a requirement to serve the barons’ combative needs.  The knights in turn subleased a percentage to serfs – who paid for their shelter in the form of food production and service on demand.  So started the evolution into the system we have today of “fee simple” ownership and land tenure – and thus, real estate became a valuable personal and recognised asset to be traded, sold and exchanged at the owners’ will.
Land has always equalled more than just a monitory value.  Unlike shares, the physical aspect of the asset and the emotional quality it holds have always underpinned its value.  The more potential the land holds for development or cultivation, the more value can be created.  It’s never been an asset easily liquidated, however because it’s essential to our basic needs, it stands right up there alongside food and water.  Of course, like any other investment, its value is assessed in terms of the demand created by location, potential use (the amount of accommodation it can provide) and health of the overall economy.  It follows the basic rule of any investment model – less supply fuels more demand and in Australia – particularly in the urban areas where most people want to reside – land value has increased through the continuous restriction and scarcity of supply and a population experiencing rapid, unprecedented growth.
You can debate the argument between shares vs property (land), as much as you want.  You can quibble over which will provide the best returns.  You can pull up charts, graphs, complex calculations and genuine examples to effectively win the argument for either side of the coin, because there is no doubt we have investors who have effectively wielded great wealth out of each model. However the one essential overwhelmingly obvious difference granted to investors of real estate is the personal control a privately held piece of useable land in a sought-after location provides – and it’s a lot more than a certificate of shares in the family safe.
 
<hr class="system-pagebreak">
 
It’s not just a case of deciding when to buy and sell; you can control other aspects such as renovation, extension, subdivision, and major development.  Providing you picked the right area to invest initially, the long-term risks of loss are extremely low. Sure, we can look out from our sunny side of the rainbow and wag a finger at Greece and the US as a shining example of “when it all went wrong”, however what went wrong wasn’t peoples need for shelter, or the emotional aspirations and value they placed on property.  Neither was it the mentality of those who invested with a cautionary approach for the long term.  What went wrong was a system that fuelled speculative greed.  A system that encouraged the population and big organisations to treat real estate as nothing more than a vehicle to trade with a get-rich-quick mentality. A system that encouraged lending of “non-recourse” “get out of jail free” 100%-plus loans granted to unqualified recipients.  The irresponsible lumping of mortgages into “pools” to be purchased, sold, sliced and traded, thereby treating property as nothing more than a company share with the unrealistic expectation that what goes up never comes down.  The result was understandably cataclysmal.
You will see it stressed with regularity by Property Observer’s resident panel of authors that real estate is a fantastic investment if basic rules are applied – the first being the rule of long-term holding.  We have fees associated with the purchase of real estate that make selling and buying expensive and therefore not encouraged.  As much as real estate is a sought-after form of equity – particularly in the inner-city suburbs, where land is now just a game of musical chairs between a growing number of players – it’s not one that gains quick profit from “flipping” (buying/renovating and immediate selling) <a target="_blank" href="https://www.propertyobserver.com.au/victoria/the-block-auction-a-dose-of-reality-which-sydney-finally-loved/2011082251240">as programs like The Block on Channel 9 have duly demonstrated</a>.
It’s not akin to a company that can increase its customer base considerably without length of time being a critical factor.  Rather, it’s a steadily climbing asset dependant on many economic factors – the most fundamental being peoples need for it.  Only those vendors who have owned their acquisitions for 10-plus years will have experienced substantial returns (even taking into account the recent downward phase of the property cycle.)  Furthermore, they have been protected from any US-style “crash” by Australia’s prosperous status of low unemployment, regulation of loans, a growing population and a sunny long-term economic outlook.
It must always be remembered that our best insurance against a housing crash is not an investor, but an owner-occupier – they make up 70% of home owners. In recent times owners, not suffering under any prospect of forced sales, have underpinned the overall value of the market.  Over the past year, those who have needed to sell have – in due course – dropped expectation (in some instances lowering prices by as much as 15% to 20%).  However, even though we bandy around that popular adage of a vendor needing to meet the market – we might as well be talking to the wall, because owners – most of whom are in gainful employment – simply don’t need to meet the market, they’re perfectly happy to hold until the next boom totters along.  So, all in all – so far as Australia’s concerned – property’s been a pretty safe bet – but maybe the tables are starting to turn?
Thus far, we’ve been used to measuring patterns of growth over a number of years, not the volatility of days. But this is all about to change with the introduction of <a target="_blank" href="https://www.propertyobserver.com.au/residential/rp-data-rismark-march-1-daily-index/2012030153640">Australia’s first “daily house price index suite”</a>, which will track timely market movements (without being unduly influenced by compositional biases).  It’s been put together by the most accurate real estate data provider we currently have – RP Data/Rismark.
Most property graphs show smooth lines of movement taken from data updated on a monthly or quarterly basis.  They have not been subject to the more volatile day-to-day movements that show clearly to all who work in the property.  By updating property sales as and when they are recorded, the line on the graph starts to look a little more unstable and provides a fascinating insight into a microscopic view of market sentiment.
However, while daily house price movements avoid the violent volatility associated with various companies floated on the share market, they have the potential to inspire a similar reaction.  Furthermore, the index has been produced with the prospect of being openly traded, thereby swinging it into the hands of large overseas hedge funds that want to start betting (hedging) against future movements our property market may take.  It’s not only large institutions who can play “casino” with the daily index, it’s everyday folk like you and me who don’t want to lay down a large deposit on the real thing (which is a growing demographic).
No one can be against the concept of having increased transparency in market movements.  Australia’s residential property market is worth about $4 trillion, so access to reliable timely data is critical for institutions such as the RBA. However, encouraging anyone to view property as something to take short-term bets upon is moving away from the fundamental understanding of property’s primary purpose, which is essentially a place for shelter. This has the dangerous potential to bubble and topple under a mentality that rides on “get-rich-quick” speculation.  Even though many will argue that on the current view, volatility is marginal compared with a day’s ASX trading, it does not take away the fact that we’re encouraging people to gamble on something that should never be used for such a purpose.  We’re effectively opening the gates to a different and dangerous mindset.
As I said above, the property market is underpinned by an owner-occupier mentality, but easily tradeable assets are not.  Furthermore, investors make up an increasingly dominating proportion of certain volatile sections of our real estate market (principally high rise and mining towns) and even in the “nothing safer than bricks and mortar” side of things they’ll be quick to bail if Australia hits that sticky point. Instead of looking at graphs, we should be encouraging real ownership by providing greater promotion of solid well qualified models such as the first-home savers’ accounts.  It might be an old-fashioned view, but it’s a much safer one that taking short-term bets in a property casino.
For those tempted, feel free to lay your chips on the table because based on the information so far, it doesn’t look overly dangerous.  However, I would heartily encourage you weigh long-term risks carefully.
Catherine Cashmore is senior buyer advocate, property manager and market analyst for Elite Buyer Advocates and also Channel Ten’s property expert on The Circle.  With extensive experience in all matters regarding real estate, <a target="_blank" href="https://www.elitebuyeradvocates.com.au">Elite Buyer Advocates</a> successfully purchases, assesses and negotiates more than $200 million worth of property each year for clients. 
 
 
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Australia's housing market could crash if property's primary purpose is forgotten: Catherine Cashmore

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Jellis Craig presents the change in house and unit prices in the inner-Melbourne municipality of Stonnington during 2011.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/stonmap.jpg"><img src="/images/stories/stonmapthumb.jpg"></a>
Source: <a href="https://www.jelliscraig.com.au/" target="_blank">Jellis Craig</a> Annual Property Review
Numbers in brackets indicate a decrease
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Annual median dwelling price changes in Stonnington: Jellis Craig

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The cost of funding mortgage lending will again become a hot topic this week regardless of the decision the Reserve Bank makes about the cash rate.
Banks will argue that funding costs are rising, and more out-of-cycle rate decisions are expected. 
However, research compiled by Nomura analysts Victor German, Prue Rydstrand and Anthony Hoo has found that apart from a “brief period in January when banks technically wrote unprofitable business” mortgages remain an “attractive asset class for the majors, on a medium-term view”. 
These are the numbers you need to know:
<img src="/images/stories/20percent.gif">
The estimated return banks are currently making on their mortgage lending businesses
 
<hr>
 
<img src="/images/stories/30percent.gif">
The estimated return banks will make on their mortgage lending businesses if funding spreads normalise towards 2011 levels
 
<hr>
 
<img src="/images/stories/1percent.gif">
 
The estimated earnings boost the major banks receive for every five-basis-point increase in their standard variable rate. On the same five-basis-point increase regional banks receive a 3% earnings uplift and a 0.25% gross profit margin benefit.
 
<hr>
<img src="/images/stories/23percent.gif">
The estimated return Westpac is making on its mortgage lending business. The bank currently has the highest interest rate of the major banks at 7.46%.
 
<hr>
 
<img src="/images/stories/122m.gif">
How much extra revenue the Westpac earns by pushing up rates by five basis points
 
<hr>
 
<img src="/images/stories/22percent.gif">
The estimated return the Commonwealth Bank is making on its mortgage lending business. The bank currently has the second-highest interest rate of the major banks at 7.41%.
 
<hr>
 
<img src="/images/stories/126m.gif">
How much extra revenue the Commonwealth Bank earns by pushing up rates by five basis points
 
<hr>
 
<img src="/images/stories/20percent.gif">
The estimated return ANZ is making on its mortgage lending business. The bank currently has the third-highest interest rate of the major banks at 7.36%.
 
<hr>
 
<img src="/images/stories/68m.gif">
How much extra revenue the ANZ earns by pushing up rates by five basis points
 
<hr>
 
<img src="/images/stories/18percent.gif">
The estimated return NAB is making on its mortgage lending business. The bank currently has the lowest rate of the major banks at 7.31%.
 
<hr>
 
<img src="/images/stories/83m.gif">
How much extra revenue NAB earns by pushing up rates by five basis points
 
<hr>
 
<img src="/images/stories/70bps.gif">
 
The average discount the major banks are currently offering borrowers on mortgages over $500,000
 
 
Source: All numbers sourced from Nomura Equity Research
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The millions banks make from raising interest rates by 0.05% and 11 other numbers you need to know

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Demand for ongoing discount rate loans has fallen as lenders pull back on offering these special deals, according to February mortgage approval figures from Mortgage Choice. 
The percentage of ongoing discount rate loans fell from 46% to 42% of all new home loan approvals by Mortgage Choice brokers in February – the largest decrease since Mortgage Choice began reporting on this loan type in November 2010. 
An ongoing discount rate loans is one where the interest rate is discounted over the entire loan term, usually in exchange for an annual fee. 
Despite this drop, demand for this product still remains well above the 12-month average of 38%. 
Fixed-rate loan demand steadied in February, at 21% of all new home loan approvals, on par with January and the six-month average, but ahead of the 12-month average of 16%. 
Demand for basic variable loans rose to 17% of all approvals in February, from 14% in January while standard variable loan demand grew marginally to 16% from 15%. Line of credit loan popularity held steady at 3% and interest in introductory rate loans remained below 1%.
<img src="/images/stories/mcmarch5.png" width="470">
Source: Mortgage Choice 
Commenting on the February figures, Mortgage Choice spokeswoman Belinda Williamson says lenders kicked off 2012 with a “slew of loan discounts in a bid to compete for business in a subdued housing finance market”. 
“A number of these discounts were scaled back in February as lenders responded to shaky global economics and rising funding costs. 
“We were surprised to find that despite lenders raising their home loan interest rates independently of the Reserve Bank during February, and ongoing concern around the direction of interest rates, our borrower data did not show any increased interest in the repayment security offered by fixed-rate loans. 
“The fact that only one in five new loan customers opted for fixed-rate loans reflects that there is still a large volume of borrowers willing to ride the variable rate rollercoaster,” says Williamson.
 
 
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 Demand for discounted mortgages wanes as lenders pull offers: Mortgage Choice 

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More borrowers are choosing fixed loans and shopping around for the best refinancing deal as inquiries from buyers in Sydney and Melbourne show signs of picking up, according to McGrath Estate Agents boss John McGrath. 
In his latest market outlook for 2012, McGrath writes that the housing market remains in a state of flux due to global worries, recent job cuts and the out-of-cycle rate increases by the banks, but notes that “buyer enquiry is considerably higher, with more people attending opens in January and February”. 
He also highlights recent mortgage lending figures from mortgage broker AFG, which reported a 40% increase in national mortgage sales in January (up 14.5% in NSW) compared with the corresponding period last year, when natural disasters significantly impacted sales.
“The under-$1 million market is still the strongest segment, but there’s new interest up to $2 million and even beyond in Sydney and Melbourne where higher-end buyers weren’t around as much in 2011,” McGrath says.
“While it’s too early to tell whether this new enquiry will translate into sales, it’s logical to think that if enquiry is up and new mortgages are up then we will see a good start to the first quarter,” he says.
McGrath also notes the growing propensity for borrowers to choose fixed-rate loans and the increase in refinancing activity.
“Many borrowers are choosing the safety of two-year fixed loan rates as low as 5.8%. AFG says 18.6% of all new loans in January were fixed, more than double that of six months ago. Borrowers are increasingly shopping around with 50,000 people reportedly refinancing last quarter,” he says.
To make an informed refinancing decision, download Property Observer’s free eBook: <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-12-tips-for-refinancing-your-mortgage"> 12 tips for refinancing your mortgage</a>
According to McGrath, the banks’ decision to move independently of the RBA will cause some insecurity among borrowers.
“When the RBA drops rates, it’s a sign our economy needs a boost and in the past, home owners have been able to count on mortgage relief during these periods. But with the banks citing international pressures as the major determining factor for their home loan rates, consumers may no longer have the comfort of lower repayments when our economy slows,” he warns.
He also warns that unemployment remains a concern following jobs cuts by several big companies and could hinder a housing market recovery.
“While we’re not seeing rising unemployment on any major scale at the moment, if it were to blow out significantly from here it would likely have a damaging effect on property values and rents,” he says.
For investors looking for sound investment opportunities McGrath makes the observations:
<ul>
<li>Buying residential real estate within 10km of the CBD in Sydney is an excellent choice, with outer suburban areas not doing as well as city hubs and the coastal belt</li>
</ul>
<ul>
<li>Investors seeking higher rewards might look to south-east Queensland this year. We’re already seeing more activity on the Gold Coast, with investors coming from the local area, as well as Sydney, Brisbane and Melbourne</li>
</ul>
<ul>
<li>Markets like the Gold Coast and Sunshine Coast were significantly oversold during the GFC and depending on the level of mortgage sales over the next 12 months, should have very strong upside when they begin a real recovery either this year or in 2013. 
</li>
<li>We’re seeing a significant jump in enquiry in many of our markets, particularly Bowral, Ballina, Byron Bay, Wollongong, Thirroul, Newcastle, and the Gold Coast. </li>
</ul>
 
 
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More borrowers choosing safety of fixed-rate loans as buyer activity picks up: John McGrath

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There are just nine locations in Australia that are long-running property investment hotspots, according to analysis of Australian Property Investor magazine’s Hot 100 list for last three years.
Among the nine are five Queensland locations – Coorparoo, Gladstone, Southport, Toowoomba and Townsville.
There are six regional locations – Gladstone, Newcastle, Orange, Toowoomba, Townsville and Warrnambool.
The lack of city suburbs is notable, with only three making it on the list – Blacktown in the hotspot belt of western Sydney and Coorparoo and Southport in Brisbane.
Not surprisingly, the list includes a number of towns with mining connections, including Newcastle in NSW and Gladstone and Toowoomba in Queensland.
But there are also expanding regional towns that are becoming lifestyle destinations such as Warrnambool in country Victoria and Orange in NSW, which has a growing reputation for fine food and its nearby wineries.
The most affordable housing market among this list is Toowoomba (median house price of $276,000) and the most affordable unit market is in Orange, where an apartment costs just $218,000.
<img src="/images/stories/blacktown.gif">
The 2012 median house price in the Sydney suburb of Blacktown is $368,000, while the median unit price is $282,000.
<img src="/images/stories/coorparoo1.gif">
The 2012 median house price in the Brisbane suburb of Coorparoo is $676,000, while the median unit price is $540,000.
<img src="/images/stories/gladstone1.gif">
The 2012 median house price in the Queensland town of Gladstone is $445,000, while the median unit price is $350,000.
<img src="/images/stories/newcastle.gif">
The 2012 median house price in the NSW town of Newcastle is $385,000, while the median unit price is $346,000.
<img src="/images/stories/orange1.gif">
The 2012 median house price in the NSW town of Newcastle is $315,000, while the median unit price is $218,000.
<img src="/images/stories/southport.gif">
The 2012 median house price in the Gold Coast suburb of Southport is $385,000, while the median unit price is $330,000.
<img src="/images/stories/toowo.gif">
The 2012 median house price in the Queensland town of Toowoomba is $276,000, while the median unit price is unavailable.
<img src="/images/stories/townsville.gif">
The 2012 median house price in the Queensland town of Toowoomba is $370,000, while the median unit price is $308,000.
<img src="/images/stories/warrnam.gif">
The 2012 median house price in the Victorian town of Warrnambool is $315,000, while the median unit price is $241,000.
Among the reasons for Townsville selection are “plenty of shopping centres … great cafés, restaurants, an aquatic play area on the Strand, a good art precinct at River Way, good hospitals, a university and schools”.
Southport on the Gold Coast is chosen because of its “law courts, good schools, the Gold Coast Hospital and further public transport potential with the light rail coming”.
“It also has a major shopping centre, Australia Fair, strip shopping, cafés and restaurants,” says API magazine.
 
 
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Queensland towns dominate list of hotspot kings for three years

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There's now a tipping website, <a style="font-size: 14px; text-align: left;" target="_blank" href="https://www.propertytycoon.com.au/">www.propertytycoon.com.au</a>, where punters can guess auction results in Melbourne, Sydney and Brisbane, with no outlay. It's mostly about testing your market knowledge with a small cash prize as a sweetener.
<img src="/images/stories/musgravest.jpg">
The one-bedroom apartment at 18/24a Musgrave Street, Mosman (pictured above), featured as one of the five Sydney properties in round two of Property Tycoon's auction tipping competition, fell well short of its agent's $1.2 million expectations. It sold for $1.05 million.
"A closer look at the analysis show this property has still been an outstanding investment for its owner," says Mark Armstrong of Property Tycoon. 


Two Sydney properties in the competition were passed in.
<img src="/images/stories/mayroad.jpg">
The Melbourne property featured on Property Observer, 8/29 May Road Toorak (pictured above), also failed to meet its vendor's expectations, but the vendor was unwilling to settle for less.
"A cold and wet day in Melbourne kept the buyers away from the one-bedroom apartment in May Road, Toorak," Armstrong says. "Although there were multiple bidders the property failed to meet the vendors' expectations. The property passed in for $410,000 and also received a later offer of $420,000."
It was last sold in 2009 for $418,000 and was among three Melbourne properties that were passed in.
<img src="/images/stories/archerst.jpg">
The Brisbane property featured on Property Observer, 22 Archer Street, Gordon Park (pictured above), sold for $875,000. The agent had provided comparable sales of between $700,000 and $800,000.
"The Brisbane auction market has been on its knees this year but this result shows that good property, that is well located and presented, will always be in strong demand," Armstrong says.
All four other properties in the Brisbane competition were passed in. 
 
 
 


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Sydney and Melbourne properties fall well short of expectations in round two of auction tipping

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The weekend's damp weather didn't dampen auction results.
Bidders were in attendance in both major capital cities, and auction results gave further signs of entering something of a holding pattern.
The Real Estate Institute of Victoria put Melbourne’s clearance rate at 62% over the weekend from its 797 auctions.
The last week of February showed Melbourne's clearance rate at 61%, among the most successful auction weekends since October 2010 and the first weekend with a clearance rate higher than 60% since March last year.
Sydney recorded a 55% clearance rate from its initial 311 results, according to Australian Property Monitors. It was 55% in the weekend prior.
Australian Property Monitors data shows 19.7% of Sydney vendors chose auctions over private treaty last year, compared with 21.7% in 2010.The percentage of homes actually sold by auction fell to 13.9% of total sales from a peak of 15.8% in the same period in 2010.
Senior economist at APM Dr Andrew Wilson says after a flat few years, there was strong auction activity in the second half of 2010.
The inner west and east are Sydney's traditional auction hot spots, with 26% of vendors selling this way last year.
The inner west had peaked a year earlier at 28%, with east on 27%.
Tim Lawless, research director at RP Data, noted recently that auction clearance rates were one of the timeliest indicators of housing market sentiment, particularly in the major auction markets of Melbourne and Sydney.
About 30% of all Melbourne houses and units are taken to auction (as opposed to private treaty sales) – the highest proportion of any capital city.
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jchancellor-FAypfDUnLy

Damp weather doesn’t dampen auction results in Melbourne and Sydney

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The Housing Industry Association says it is looking forward to meeting with new Federal Housing Minister Brendan O’Connor to “discuss the many pressing policy areas that need to be addressed to revitalise the residential housing industry”. 
“Housing is a staple of life that drives both economic and social outcomes. Yet Australia is facing both a housing shortage and affordability challenge, which needs urgent attention.” says Graham Wolfe, chief executive of the HIA. 
O’Connor was named the new Minister for Housing and Homelessness as well as Small Business Minister as part of the cabinet reshuffle announced by Prime Minister Julia Gillard following her defeat of former foreign minister Kevin Rudd in the Labor Party leadership vote. 
The HIA welcomed O’Connor’s appointment as well as the combining of the two portfolios.
“The Australian housing industry is made up of around 85% small business,” says Wolfe. 
“By combining these two portfolios, Minister O’Connor has the unique opportunity to promote much needed policy initiatives and programs across small business and residential building. 
“It is also important that the housing portfolio has remained in cabinet, and it is likewise pleasing to see that small business has now been elevated to this level.” 
“The housing industry puts around 400,000 Australians into new homes every year and creates thousands of new jobs.” 
Lobby group Australians for Affordable Housing (AAH) also welcomed O’Connor’s appointment. 
It also applauded the move to retain the role of housing minister as a cabinet position. 
“This is recognition that housing is central to the wellbeing of every single Australian household and should be a concern for the highest levels of government,” says AAH campaign manager Sarah Toohey. 
“Housing is the biggest cost-of-living issue in Australia, and with one in 10 households in housing stress it is clear that our current housing system is failing too many people. 
“We need a national housing plan, to deliver affordable housing, right across the system, from public and community housing to home ownership. Retaining a single housing minister in cabinet is an excellent first step towards making sure the housing system works for everyone. 
“People in Minister O’Connor’s own electorate of Gorton, know too well the problem of housing affordability. Figures released by AAH late in 2011 show that the Local Government areas of Melton, Hume and Brimbank (which are either in or surround the seat of Gorton) are all in the top five areas of housing stress in Victoria,” says Toohey.
 
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