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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Property developer Ron Medich has denied bribing an Aboriginal land council to obtain prime real estate at less than market value, the Independent Commission Against Corruption hearing has been told.
The hearing is into the Wagonga Local Aboriginal Land Council on the NSW south coast.
He acknowledged he gave his associate Lucky Gattellari, $53,000 in cash and $20,000 in cheques in relation to the Narooma properties he intended to buy.
ABC reporter Sarah Gerathy described it has “a testy and combative appearance before the ICAC”.
Gattellari previously gave evidence that the $53,000 was to "butter up" executives on the land council.
Medich denied much of Gattellari's testimony.

"I've never heard those words used in my life," Medich said.
Medich acknowledged he signed a joint venture agreement with the land council to develop the four properties, but said he had always intended to buy them outright.
"I went into it to do a joint venture, but I never wanted to do a joint venture," he said.
He said Gattellari had handled any some dealings without his knowledge.
  
 
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jchancellor-FAypfDUnLy

Ron Medich denies bribery charges in failed Narooma property deal

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Approvals for the construction of new homes in Victoria in January fell 25% year-on-year, according to new ABS figures.
On a seasonally adjusted basis there were just 2,348 approvals in Victoria in January 2012, compared with 3,138 in January 2011.
There were also small falls in private sector house approvals in New South Wales and WA.
Queensland was the strongest state for private sector house approvals, recording a 31% increase month-on-month.
Nationally, building approvals for both houses and units – a forward indicator of demand for new housing – continued to trend downward despite a big jump in NSW apartment approvals and a small improvement in January.
Click to enlarge
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In the month of January 2012 total seasonally adjusted building approvals increased by 0.9% to 11,729, with approvals for new house construction remaining flat at 0.1%  (7,508 houses) and approvals for units and other non-detached housing rising 1.5% (4,024 units).
Total seasonally adjusted building approvals increased by 7% in South Australia in January 2012, and in trend terms approvals rose by 2.6% in the Northern Territory.
In January this year total seasonally adjusted building approvals fell by 2.7% in Victoria, 22.1% in Queensland, 0.3% in Western Australia and 2.9% in Tasmania.
The trend number of building approvals fell by 13.9% in the Australian Capital Territory.
Despite the monthly improvement, overall approvals are down a cumulative 14.6% on figures a year ago with detached house approvals down 7.4% for the year and the more volatile apartments market down 23.3%.
The bright spot in the figures was NSW, with approvals rising 37.6% over the month led by a massive 90% jump in approvals in the more volatile apartments market.
Excluding NSW, HIA economist Harley Dale says approvals fell by nearly 9% in January.
“Housing has a large reach into the wider domestic economy in terms of both output and employment and urgent attention is required to turn the new residential building sector around,” he says.
“The profile for building approvals in late 2011/early 2012 continues to imply a level of housing starts comparable to the very weak levels endured around the GFC. It’s hard to call that a bright update for the domestic economy,” says Dale.
“Australia’s interest rate settings are too high and there needs to be immediate government focus on policy reform to boost flagging levels of new housing supply.”
CBA economist James McIntyre says the January building approval figures add to the “do-nothing” case for the RBA.
“It is too early to see the impacts from last year’s cuts.  They are yet to filter through.  At the same time, the data does not show any material weakening, which would be required to get the RBA to move off the sidelines,” he says.
“Our current expectation is that the RBA will cut rates once more in the second quarter of 2012.”
 
 
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lschlesinger-FZcF9M3vE6

Building approvals down in January, led by 25% fall in Victoria: HIA 

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National house price fluctuations since 1997: RP Data-Rismark

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Canberra only capital with house price gains in year to February 2012: RP Data-Rismark

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The new RP Data-Rismark Daily Home Value Index will be the first set of indices to provide “real-time daily home value indices”, says RP Data CEO Graham Mirabito.
The first edition of the daily index (March 1) is out today and shows gains for Sydney, Melbourne and Brisbane:
<img src="/images/stories/rpindexmarch11.jpg">
Launched in conjunction with the Australian Securities Exchange (ASX) as future tradeable index, it is also offers investors and buyers the world's first home value indices that track asset-class stock.
“For the past three years RP Data and Rismark have had a major research and development project underway to produce accurate daily housing market value indices,” Mirabito says.
“Our new 'hedonic imputation' methodology is an improvement on the previous flagship 'adjacent period hedonic' measurement and has been designed to be a tradable index.”
Mirabito says the primary benefits of the improved index methodology are:
<ul>
<li>Timely updated daily just one day in arrears </li>
<li>Not compositionally biased by different buyer segments that are active or inactive </li>
<li>All dwellings are included in the measurement not just those that have transacted </li>
<li>Non revisionary providing greater certainty about actual market conditions </li>
<li>Independently audited by both EWS (headed by Dr Alex Frino who also heads Capital Markets CRC and is a professor of finance at the University of Sydney) and KPMG (process) </li>
<li>Designed to be tradable tracks a true portfolio of properties. </li>
</ul>
The daily updates of the index values will be featured on both the RP Data website as well as at the <a href="https://www.asx.com.au/propertyindices" target="_blank">Australian Securities Exchange</a>.
Brian Goodman, ASX’s product development manager, said in a statement the index would give an important window into the residential market, which makes up a big portion of the average household’s assets.
He also said it would help the ASX develop exchange-traded products, which would allow investors to replicate the return and broad performance characteristics of the Australian residential property market.
“The RP Data-Rismark Daily Home Value indices overcome a number of the shortfalls present in existing property indices and in so doing support ASX’s longer term product development objectives,” Goodman said.
“To develop the daily indices there has been significant investments in new data collection which we have leveraged specifically for our property and finance industry customers. Following the indices launch we will be providing new data and analytics on a weekly basis for property and mortgage market activity that will deliver near real time business intelligence at the local level,” Mirabito says.
The index will not be tradeable until it has passed regulatory hurdles. 
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Forget the landlord-tenant gripes: Stand by for a tradeable property ASX futures index

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RP Data-Rismark now offers a daily hedonic index tracking housing prices in Australia's five major capitals.
<a href="https://www.propertyobserver.com.au/data-map" target="_self">Click here for median house and unit price information in your suburb</a>.
<img src="https://www.urban.com.au/images/stories/2014/03/07/rp-data-march-7.gif" alt="rp-data-march-7" width="470" height="375">
Get an automatic valuation of your property within five minutes: <a class="myrpdata_logo" href="https://www.myrpdata.com/" target="_blank"><img src="https://www.urban.com.au/images/myrpdata.png" alt="My RP Data"></a>
Get detailed reports on individual properties, specific streets or a postcode: <a class="myrpdata_logo" href="https://www.myrpdata.com/" target="_blank"><img src="https://www.urban.com.au/images/myrpdata.png" alt="My RP Data"></a>
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RP Data-Rismark March 7 daily index

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Median house prices: February 29, 2012
 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="307">
Sydney
</td>
<td valign="top" width="307">
$516,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Melbourne
</td>
<td valign="top" width="307">
$500,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Brisbane and Gold Coast
</td>
<td valign="top" width="307">
$435,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Adelaide
</td>
<td valign="top" width="307">
$390,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Perth
</td>
<td valign="top" width="307">
$460,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Australia 5 capital cities
</td>
<td valign="top" width="307">
$450,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Hobart
</td>
<td valign="top" width="307">
$340,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Darwin 
</td>
<td valign="top" width="307">
$487,500
</td>
</tr>
<tr>
<td valign="top" width="307">
Canberra
</td>
<td valign="top" width="307">
$555,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Brisbane
</td>
<td valign="top" width="307">
$430,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Australia 8 capital cities
</td>
<td valign="top" width="307">
$455,000
</td>
</tr>
</tbody></table>
Source: RP Data
 
Median unit prices: February 29, 2012
 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" width="307">
Sydney
</td>
<td valign="top" width="307">
$435,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Melbourne
</td>
<td valign="top" width="307">
$416,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Brisbane and Gold Coast
</td>
<td valign="top" width="307">
$355,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Adelaide
</td>
<td valign="top" width="307">
$320,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Perth
</td>
<td valign="top" width="307">
$390,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Australia 5 capital cities
</td>
<td valign="top" width="307">
$390,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Hobart
</td>
<td valign="top" width="307">
$260,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Darwin 
</td>
<td valign="top" width="307">
$380,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Canberra
</td>
<td valign="top" width="307">
$430,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Brisbane
</td>
<td valign="top" width="307">
$360,000
</td>
</tr>
<tr>
<td valign="top" width="307">
Australia 8 capital cities
</td>
<td valign="top" width="307">
$395,000
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
 
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Capital city house and unit prices: RP Data-Rismark

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Melbourne led a rebound in capital city dwelling prices in February, with the Victorian capital recording 1.8% growth for the month, according to the new RP Data-Rismark Daily Home Value Index.
On a rolling quarterly basis during the three months ending February 2012, Australian capital city home values fell 0.2%.
Based on the new daily index, this was the best quarterly reading since the three-month period ending March 2011.
RP Data head of research Tim Lawless says the results in February suggest the decline in house prices has been easing  though he does not believe the November and December rate cuts were enough to drive back growth into the housing market.
"The November and December RBA cash rate cut shave improved affordability but have not yet fed into higher home values, which is no surprise. A return to housing market stability is likely the outcome the RBA was hoping for,” he says.
According to Lawless, the amount of housing for sale had fallen 20% since November, but is still 20% higher than the same time last year, which was already relatively high.
“It points to soft conditions but not quite as bad as the market was seeing over the last quarter of 2011."
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Looking at the division between houses and units, Melbourne house prices were up 2% over the month – the strongest gain across the five major capital city markets – while units gained a more modest 0.3%.
According to the new daily index, Melbourne house prices received a boost on the last day of February, rising 0.67%, with gains also recorded in Brisbane and the Gold Coast (up 0.32%) and Sydney (up 0.25%).
The new daily index launched in conjunction with the ASX allows property investors and buyers to track (and eventually trade) the daily changes in capital city house and unit prices.
It replaces the current monthly RP Data-Rismark Home Value index.
Overall the capital city dwelling values increased 0.8% in February 2012, leaving the market relatively flat (-0.2%) during the first two months of the year.
Sydney matched the capital city increase, with dwelling prices rising 0.8%, while Brisbane values were flat (0.1%).
Perth dwelling prices continued to fall, dropping by 1.8%. This was a steeper fall than 1.6% decline recorded in January.
“The strong February results, accented by capital gains in Melbourne and Sydney of 1.8% and 0.8%, respectively, likely reflect the impact of the November and December rate cuts,” says Rismark’s Ben Skilbeck, also the architect of the new daily index.
“Even before the RBA reduced rates, housing finance flows were staging a rebound with the ABS reported seasonally adjusted number of new home loans approved for people buying established dwellings rising for nine consecutive months,” he says.
Of the smaller markets, Darwin was the most impressive, with dwelling prices up 5% during February and Darwin house prices up 6.2%
Hobart had the strongest units market, with gains of 3.4% during the month.
Over the past three months to February Darwin was the strongest-performing capital city market, with dwelling values up 4.1% and is also offering the highest house rental yields of 5.8%.
RP Data’s Tim Lawless says some of the weaker markets over the past few years are now starting to show promise: 
“The Perth housing market is a good example of a city that has been one of the softest locations since 2008. This market appears to be staging a turn-around with dwelling values now 2% higher compared with the October 2011 trough.” 
“Perth dwellings values have corrected by 10.1% since their peak back in April 2010, which has provided a significant affordability dividend. We are also seeing Perth housing demand being driven by strong population growth underpinned by the resources investment boom. Despite a weak monthly result for February, Perth dwelling values were up 0.8% over the last three months,” he says.
Canberra has the strongest unit yields, with a gross indicative yield of 5.8%.
Melbourne offers investors the lowest gross rental yields of 3.5% for houses and 4.3% for units.
RP Data says the next daily index will provide the most up-to-date and sophisticated measure of value movements across the Australian housing market.
The index provides daily capital growth measurements across three broad housing types: houses, units’ and a “combined dwellings” index that includes both houses and units. The index results are released daily for Sydney, Melbourne, Brisbane (including Gold Coast), Adelaide, Perth and the combined capitals, which is a composite of these cities.
<img style="border-style: initial; border-color: initial;" src="/images/stories/rpindexmarch11.jpg">
It is the first commercially available residential index to track daily value movements across the market portfolio of all dwellings.
“The daily index is the result of three years extensive research and development. It is specifically designed for trading purposes and tracks the value of an investment in a self-financing market portfolio (all dwellings),” Skilbeck explains.
“That is, the index removes bias associated with capital injections such as those arising because of renovations, alterations and additions so as to examine true changes in market value.”
Along with the launch of today’s daily index, RP Data <a href="https://www.rpdata.com/research/back_series" target="_blank">has provided a backdated series for the past year showing the granular changes</a>. 
The benefits of the new index will include timeliness – updated daily to reflect the latest available property market information; granularity – “intra-month” index movement insights available for the first time; and low volatility – measured annual volatility remains comparable, between the monthly adjacent period hedonic and will cover the overall market. All dwellings are included in the measurement, not just those that have transacted.
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Melbourne leads slight rebound in capital city house prices in February: RP Data-Rismark daily index

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After several years of research and development, Rismark and RP Data, in conjunction with the Australian Stock Exchange (ASX), have announced this morning two global firsts in the closely followed housing space:
(1) the launch of the world’s first genuine “daily” house price index suite, which will cover all the major cities and the national market and will be quoted by the ASX as a precursor to the development of exchange-traded products, such as house price index-linked “futures”; and
(2) the launch of house price indices that track the change in the value of the overall asset class (known as the “stock”) rather than simply being limited to the 5% to 6% of all homes that transact each year (called the “flow”).
Based on their new daily hedonic home value index, RP Data-Rismark report that dwelling values across Australia’s eight capital cities rose 0.8% in the month of February, although due to a slump in the seasonally slow month of January year-to-date dwelling values are still soft-to-sideways (-0.2%).
Encouragingly, in the month of February, dwelling values rose 0.8% in Sydney, 1.8% in Melbourne, 1% in Adelaide, 2.2% in Hobart, 5% in Darwin, and 1.9% in Canberra. The only cities to record falls in home values in February were Brisbane (-0.1%) and Perth (-1.8%).
These ASX-quoted daily house price index products should improve the accuracy and timeliness of the information available on Australia’s largest investment class, residential housing, which is valued at $4 trillion in total. They will also offer us the first historical insights into what happens to house prices on an “intra-month” basis.
In the ASX’s release today, Rismark’s Ben Skilbeck said, “RP Data-Rismark’s daily index is specifically designed for ‘trading’ purposes and tracks the value of an investment in a self-financing portfolio of dwellings. The index removes biases from renovations, alterations and additions so as to examine true changes in market value. The daily indices also address the compositional biases that plague ‘median’ and ‘repeat-sales’ techniques.”
Analysts in this area will recall that most house price indices currently report on a quarterly frequency. Rismark and RP Data broke ground by publishing a low-volatility monthly “hedonic” house price index back in 2006, which has been embraced as the leading benchmark by the RBA and bank economists.
Bill Evans, chief economist of Westpac, commented, “RP Data-Rismark are the RBA’s ‘preferred data analysts’ for house prices,” while CBA’s Craig James said, “RP Data-Rismark’s index has emerged as Australia’s authoritative source on home price trends”.
But the notion of accurately tracking daily movements in Australia’s most talked-about asset class is a potential game changer. As the first chart below shows, the new daily index moves in a generally similar fashion to the old monthly version when calculated over the long run (in this case since 1995).
Click to enlarge
<a href="/images/stories/march11.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/march11thumb.gif"></a>
However, on an “intra-month” basis the daily index opens up fluctuations in house prices that frankly nobody has ever been exposed to before. This is highlighted by the second chart below, which compares the daily index with its monthly predecessor, but this time sampling daily and monthly, respectively. Observe how the monthly index looks like a smoothed version of the daily.
Click to enlarge
<a href="/images/stories/march12.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/march12thumb.gif"></a>
Throughout history researchers have been restricted to “low-frequency” house price proxies that look like the red line in the above chart. Around the world, house prices are typically reported with a one-month to four-month lag. Even in Australia, RP Data-Rismark’s old benchmark was reported with a one-month lag while the ABS publishes on a quarterly basis one month after the end of the quarter.
Going forward, we will get daily updates on movements in Australian home values. Will this open us up to the wild swings associated with the share market? The short answer is: no.
In the final chart I’ve compared daily changes in the S&amp;P/ASX 200 share market index with RP Data-Rismark’s new benchmark. This puts into striking perspective questions about the volatility of the new daily measure, which, as you can see, is substantially less variable than its listed equity equivalent.
Click to enlarge
<a href="/images/stories/march13.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/march13thumb.gif"></a>
The differences in the chart above accord with what we understand about housing as an asset class more broadly: once you diversify at the national “index” level, volatility is very low and a fraction of the riskiness of equities. Of course, it’s not very easy to invest in a house price index. That is precisely why the ASX has got involved.
ASX product development manager Brian Goodman said today that the exchange is investigating “the creation of exchange-traded products with the objective of allowing investors to replicate the performance characteristics of Australian residential property. The ability to obtain and optimise residential property exposures with an exchange-traded product will enable investors to efficiently manage exposure to this asset class.”
“The RP Data-Rismark indices overcome a number of shortfalls present in existing indices and in so doing support ASX’s longer term product development objectives” Goodman said.
One obvious question is: how did they do it? The technology underlying the new daily index is sophisticated, and, if you are really interested, you can read three different papers on it <a href="https://www.rpdata.com/research/rp_data_rismark_home_value_index_methodology">here</a>.
The daily index leverages off the fact that in Australia all homes sales are collected and reported by valuer-general’s offices – i.e., we don't have “small sample” biases like the US or UK – and RP Data’s enormous financial investment in extra data-gathering.
The simplest explanation as to how the index works is this. First, RP Data has very detailed information on 99% of all Australian homes, including the exact address, land size, property type, historical sales prices paid for the property, its distance to the local GPO, listing information for the home and like dwellings in the area, its number of bedrooms, bathrooms, and car spaces, and whether the property has things like a pool or a tennis court. In addition to this information, RP Data captures, on average, about 1,400 new home sales every day.
For the purposes of the daily index, RP Data and Rismark have taken a portfolio of around 5 million capital city homes across Australia, and all of the specific attribute information that pertains to them, and used the flow of incoming sales data to re-price the portfolio.
This is similar to the way most financial market indices work. Consider the ASX’s All Ordinaries Accumulation Index. This includes every company listed on the ASX. Each company has a weighted contribution to the index. As new sales data is received, the company’s price is updated, and the index changes accordingly.
RP Data’s Tim Lawless adds, “The daily index production is reliant on timely updates from RP Data’s core database of more than 170 million property records. It has been independently audited and is calculated every day on RP Data’s secure servers.”
Researchers will want to ask obvious questions, like: how do the returns differ over time between the two methods; is the new index more volatile than the daily index; and why don't you seasonally adjust the ASX indices?
Analysis of the new and old indices shows that both their monthly volatility and average annual returns are very similar (e.g., over the last few years, monthly volatility for the daily index has been 0.84% while the old index’s volatility was 0.83%).
This is important. As the first chart above shows, the daily index does not tell us anything especially new about the low-frequency direction of Australian home values over the last 15 years.
It will, however, give us important new insights into weekly, fortnightly and monthly changes in national home values on a daily, rather than a one-month-lagged, basis.
On the question of seasonal adjustment, RP Data and Rismark are currently undertaking a detailed review of the methods they use for controlling for seasonality in house price movements. Upon completion of the review, they will commence publishing a seasonally-adjusted ‘analytical series’, much like the ABS does with its inflation data.
However, as is the case with financial contracts traded on inflation (or any other asset for that matter), the “tradeable” index will track actual or “true” changes in home values, rather than a statistically smoothed series.
Christopher Joye is a leading financial economist who serves as a director of Yellow Brick Road Funds Management and Rismark International. Christopher was actively involved in the development of the <a href="https://www.rpdata.com/research/daily_indices">daily indices</a> during his time as an executive of Rismark.
 
 
 
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New daily index shows Aussie home values rose 0.8% in February: Christopher Joye

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Last week my senior project manager used an interesting story to illustrate an important lesson in patience when developing property. 
Rich is a country lad brought up on a farm in rural NZ – no, it wasn’t a sheep station. Lucky for me, he decided to “cross the ditch” and settle in Australia to make his fortune developing property in the Hunter region of NSW. He was working with one of my builders when I discovered his expertise. It was some time later that we ended up working together. 
Rich’s story message was simple: “Pushing too hard at the wrong time can cause problems rather than solutions.” 
The message came about while discussing how we could fast-track lodgement of a particular development application.  As project managers I knew we were doing all we could.  I also knew that the other people involver, our builder and engineering consultants, were too.  We wanted to illustrate this to our client.  And then Rich sat down with a steaming cuppa in his hand and spun me a yarn. 
I thought I’d share his tale with you because it really made sense, even to a city gal like me.  Hope you enjoy it as much as I did. 
Rich: “On the farm we never had a dog to chase the cows into the milking shed. But our neighbours did and they were always in a hurry to get the milking done for the day. One day I asked Dad, ‘Why don’t we have a dog to chase the cows like our neighbours?’ 
“He responded by saying,  ‘Son, when a dog chases cows, by the time they arrive at the milking shed, they’re all nervous and tense because that dog has been snapping at their heels, barking and generally causing them grief.  Because of this, those cows never milk for long and as a consequence, they don’t produce much milk.’ 
“What those stressed out cows did was to produce a lot of crap.  The cow manure mounted up quickly and ended up covering the shed while they stood waiting to be milked. 
“The neighbours with dogs always finished milking earlier than we did, but spent more time cleaning up their milking shed at the end.  They produced very little milk. 
“When it was all washed up and done, we always finished around the same time as the neighbours. Although our cows milked longer, we had less to clean up and we always produced a lot more milk.” 
Going back to our property development situation, the bottom line is if we do things properly and not rush the procurement stage of the process, the delivery and close out will move along smoothly and end up producing a better, more profitable, on-time result. 
My take out of Rich’s yarn:  There are times for snappy dogs, but use them sparingly and intelligently. 
Property Bloom understands the need for speed, as do our builders.  At the end of the day we all want to complete the project quickly.  But what we really want to ensure is a development that is delivered efficiently, on budget – and hopefully with very little crap to clean up at the end!
Jo Chivers is director of <a title="Property Bloom" target="_blank" href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
 
 
 
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