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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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.

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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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Many Australian consumers complain about the high cost of living. But more than likely you would hear the same complaint if you went back 30 years ago or even 50 years ago. Fortunately through the power of technology we can test – at least partially – whether times are indeed tougher now than in the past.
Search firm Google has made available scanned copies of old newspapers, enabling researchers to gain insights into the cost of goods over time. Despite the fact that Google disbanded the project in May last year, it has created an impressive database. For Australia the most comprehensive resource is the Sydney Morning Herald, with 38,755 copies digitised from 1830 to 1989.
CommSec has utilised the Google newspaper archive and the Reserve Bank inflation calculator to get a perspective on the cost of living 30, 40 and 50 years ago. And it is clear that Australians in 2012 are better off than their parents and grandparents with a raft of items far more affordable today, whether you measure the cost in 2012 dollars or compare the prices of goods with the value of wages.
What does it all mean?
Aussie consumers may complain about the cost of living, but it is clear that the quality and affordability of many goods is far better now than 30, 40 or 50 years ago. For instance, 50 years ago, in February 1962, a “standard” Holden cost £1,107 or $2,214. At that time the average weekly male wage (non-managerial) was $49.40. So it would have taken a worker almost 45 weeks of wages to buy the vehicle. Today it would take the average worker about 28 weeks of wages to buy a new Holden Commodore Omega auto. And clearly the quality and range of accessories in today’s vehicles is far superior to that of 50 years ago.
Certainly it’s not just cars, but kitchen appliances, alcohol, travel and bedroom furniture are among the items that are far more affordable in 2012 than in the past. For instance, in 1982 a “Celestial” two-itre kettle was advertised for $29.99 – the equivalent of $92.75 in 2012 dollars. Currently a “Homemaker” 1.7 litre kettle can be purchased for $25 at Kmart.
While many items have become more affordable over time, the same can’t be said for housing. In 1962, land in Penrith in the western suburbs of Sydney (“Sydney’s newest suburb”) could be purchased for £595. In today’s dollars that would equate to just over $15,000.
But in 2012 the cheapest land that could be found near Penrith would cost just over $200,000. Of course, land in 1962 can’t be readily translated to 2012 as amenities and transport times have changed. But if purchasing power was kept constant with 1962, a home buyer today would need to find a block of land around $32,000 – only obtainable in country areas like Henty, Braidwood or Kempsey.
The bottom line is that people generally have a poor appraisal of either the cost of living or standard of living. It is difficult for the average consumer to assess not just the relative cost of items, but more importantly affordability (that is, relating prices to wages) as well as the relative standard or quality of goods over time.
Fortunately technology now allows these comparisons to be made quickly and accurately.
The government, Reserve Bank, retailers and other businesses are among those that benefit from providing perspectives of affordability or purchasing power over time. Economists are generally good in tracking price changes over time but are poor at keeping actual prices to permit comparisons of affordability. In fact the Bureau of Statistics recently stopped publishing data showing the average prices of grocery items 30 years ago.
Thirty years ago (Sun Herald February 14, 1982)
The headline news of the day was speculation of a health fund  takeover – “The NSW government is poised to take control of the state’s second biggest health fund – HCF – in a move to provide cheaper health care.”
In sport, New Zealand beat Australia in a one-day international despite a century by Greg Chappell. At the cinema, For Your Eyes Only and On Golden Pond were playing. The top-selling album was Business as usual by Men At Work. And Young Talent Time was on television at the time – strangely enough as it is today.
The goods that dominated advertisements in the newspapers were cars, bedroom furniture, household appliances, liquor and women’s shoes. All the major department stores at the time heavily advertised – Grace Bros, Waltons, David Jones and Myer. At the time, the average weekly wage for full-time employees was $276.90 (male wage $347.20). Inflation was running at an 11% annual pace; the Aussie dollar was around US107 cents; and the cash rate was 15.2%.
In terms of liquor, Teachers Scotch Whisky was advertised at $11.99 and a case of Tooth KB or Reschs DA cans of beer cost $11.99. Using the average male wage for comparison in 1982 you could buy 29 bottles of whisky and 29 cases of beer. Today you can purchase 35 bottles of whisky and 41 cases of Carlton Cold on the current male wage.
A bottle of Richmond Grove chardonnay was advertised at the time at $4.29. In 2012 dollars that would equate to $13.27. Currently at Dan Murphy’s, Richmond Grove French Cask chardonnay is priced at $11.99 a bottle.
In terms of household goods, a two-litre Celestial Kettle was advertised at Waltons for $29.99. In today’s dollars that would equate to $92.75. Interestingly at the current time Kmart is advertising a 1.7 litre kettle for $25.
A Thorn 53cm TV was advertised at that time for $699; today that would equate to $2,161.81. A Sony Betamax VCR similarly cost $799 back in 1982.
A Westinghouse 370-litre fridge was advertised at Waltons for $699 (today’s dollars $2,161.81). Today Harvey Norman is selling a 390 litre fridge for $1,109.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/dural.jpg"><img src="/images/stories/duralthumb.jpg"></a>
In terms of travel, a 10-day/eight-night trip to the Bali Kuta Beach Club was advertised at $518-$698. In today’s dollars that would equate to $1,602-$2,158. By comparison a seven-night Bali holiday (Ramada resort) was recently advertised at $1,099.
Interestingly though, there was also an advertisement for Hotel Craigieburn Bowral offering five days’ accommodation with all meals for $156. In 2012 dollars that would equate to $482.46. The hotel is now known as Peppers Craigieburn Bowral and the cheapest five-day package without meals now costs $821.
The higher cost of the holiday accommodation appears a function of generally higher property prices. In fact a home on five acres (two hectares) was advertised at Dural for $298,000. In 2012 dollars that would equate to $921,630.85. The same home sold last year for $2.075 million.
Forty years ago (Sun Herald February 13 1972)
At that time one of the major stories was the flood threat posed by Cyclone Daisy: “Much of the NSW North Coast was awash last night as Cyclone Daisy battered its way south.” The other main story was headlined “500,000 to lose jobs over strike” – the report stating that 500,000 workers in Victoria and other states could be stood down if a power strike does not end.
In sport, Shane Gould added two wins to her gold medal tally at the Australian swimming championships. On the 2SM top 40, Imagine by John Lennon was at number 11. At the cinema, Diamonds Are Forever was showing. And World Championship Wrestling and Adam 12 were some of the programs on TV at the time.
Clothing dominated advertisements at that time including furs and men’s suits but furniture, mattresses and household appliances were also featured. All the major stores at the time heavily advertised – McDowells, Farmers, Norman Ross, Nock &amp; Kirby’s, Horderns, Waltons, David Jones and Mark Foy’s.
At the time the average weekly wage for all employees was $73.80 (male wage $96.20). Inflation was running at a 7.3% annual pace; the Aussie dollar was around US119 cents; and the cash rate was 4.9%.
Grace Bros heavily promoted a “$500,000 fur sale” at the time and Cornelius was also heavily promoting furs. Today a retailer wouldn’t openly promote such a sale. Grace Bros also had an advertisement featuring typewriters and the retailer also promoted “values in pullovers and cardigans from $3”. In today’s dollars that would equate to $27.11, so the bargains certainly appear reasonable from a 2012 perspective.
David Jones advertised men’s suits for $54 (‘young style’) and $70 (‘top name men’s suits’). In today’s dollars the suits would equate to $487.91 and $632.48 respectively . Currently suits can be purchased in major department stores for around $299 to $399.
Grace Bros also promoted a 24-inch (61 cm) “theatre type” Thorn TV for $229 (note black-and-white TVs existed at that time). In today’s dollars that TV would equate to $2,069.12.
The newspaper gave indicative prices for some vegetables such as lettuce, tomatoes and potatoes. A lettuce was priced at 10¢, equating to 90¢ in 2012 money. Currently Woolworths is selling lettuces for $1.98. But tomatoes were priced at 15¢ to 20¢ a pound. In today’s dollars that would equate to $1.36 to $1.81 a pound, but Woolworths is quoting $1.95 a kilogram or 89¢ a pound. And potatoes were also judged to be cheaper in 1972 than today at 36¢ to 54¢ a pound versus 90¢ today.
In 1972 an advertisement stated “Jet your way to the UK and Europe for $645 return”. That would equate to $5,827.86 in today’s dollars, showing that overseas travel at the time was very much a luxury.
At that time a three-pint (1.7-litre) kettle cost $18.95 and a toaster cost $15.95. In today’s dollars that would equate to $171.22 and $144.12. In comparison, recently Kmart advertised a 1.7-litre kettle for $25 and a two-slice toaster was advertised at $29.
 
<hr class="system-pagebreak">
 
Fifty years ago (Sun Herald February 11, 1962)
The headline story was “Aust. Ships threatened” with the report alleging that “Indonesian war planes are shadowing and menacing Australian oil tankers on the vital supply route from Sumatra to Botany Bay.”
In sport, 10,500 people turned out to watch a NSW vs. South Australia Sheffield Shield cricket match featuring Bob Simpson, Brian Booth, Neil Harvey, Alan Davidson, Garfield Sobers and Richie Benaud. There was also a review of a new film, Breakfast at Tiffany’s.
The “non-managerial adult male” weekly wage was equivalent to $49.40 a week (pounds, shillings and pence at the time); inflation was just 0.7%; and the cash rate was just 3.43%.
Household goods such as mowers, furniture, fridges and washing machines featured in advertisements together with clothing and cars. David Jones, McDowells, Farmers, Grace Bros, Mark Foy’s, Bebarfalds and Waltons were the major retailers at the time.
Bebarfalds offered a £100 trade-in on a 10 cubic feet Pope Automatic fridge, stating the list price of the fridge at £208 Using the Reserve Bank inflation calculator that would equate to $5,288.95 in today’s dollars.
It is notable that the major retailers were promoting the value of trade-ins at the time, noting that you could save almost half the purchase price of a new refrigerator by trading in an old fridge up to five years old.
Mark Foy’s listed coats, frocks and slacks sets for a £6 ($151.87 in today’s dollars) with suits, coats and frocks at £8 ($202.50) and swimsuits, blouses and pullovers at 30 shillings ($37.97). While some of these prices seem reasonable, it’s important to relate the prices to the average wage. A good coat or women’s suit would cost around a third of the weekly wage (male) or around $467 in 2012 terms.
Mark Foy’s also listed a men’s suit at 19 guineas (a guinea was 1 pound, 1 shilling), equating to around $505 in 2012 dollars. Meanwhile Anthony Horderns listed “English tailored suits” at a £26/19/6, equating to around $683 in 2012 dollars. In 2012, equivalent suits may cost $299 to $399.
A Hoovermatic washing machine was listed at 123 guineas or $3,269.05 in 2012 dollars. Today a washing machine could be purchased for as low as $548, and as much as $1,048 for a featured-packed model.
In terms of cars, a standard Holden was listed at £1,107 (today’s dollars, $28,020.45), a standard Ford Falcon was £1,137 ($28,779.81) and a Triumph Herald 1200 (with a “new big engine”) was listed at £812 ($20,553.39)
Notably there was also an advertisement for land in Penrith – “Sydney’s newest suburb”. The land was advertised for £595 with £10 “full deposit on every block”. In 2012 dollars the land would be the equivalent of $15,060.67.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/penrith.jpg"><img src="/images/stories/penriththumb.jpg"></a>
In the same advertisement the price of land in Caringbah was stated at £1900 (2012 dollars, $48,092.91) and Collaroy land was stated as £1950 (2012 dollars, $49,358.51). Today, it would be rare to find land in either suburb. But in Cronulla (near to Caringbah) land can be purchased for around $800,000.
Whichever way you cut it, home buyers in 1962 had a significant advantage over home buyers in 2012.
Implications
While consumers may complain about living costs, in many ways today’s shoppers have a significant advantage over their parents or grandparents. Clothing, cars, household appliances, liquor and overseas travel are more affordable today than 30, 40 or even 50 years ago. So the slow rate of retail spending appears more a factor of consumer reluctance to spend rather inability to spend.
However one factor potentially constraining household spending is the cost of property.
From the examples we have gleaned over the past 50 years, land and houses are generally less affordable today. However it is always difficult to factor in improvements in infrastructure, the standard of homes and increases in the number and range of amenities. Clearly a home or home site in Penrith in 2012 is a far cry from that back in 1962.
Still, cars are more affordable in 2012 than in the past despite the fact that features, standard of vehicles and accessory levels today are far superior. Cheaper production costs and efficiencies can partly explain the greater bang for your buck being achieved by car buyers while lower tariff levels have also served to reduce car prices over time.
Craig James is chief economist at <a href="https://www.comsec.com.au/default.aspx" target="_blank">CommSec.</a>
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cjames-5S2v74qSNK

Housing has become less affordable in past 50 years as everything else becomes cheaper

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Mobile phone stores were the top-performing speciality tenants in the 29 shopping centres that form part of Colonial First State’s retail trust, according to interim results for the six month to December 31.
Mobile phone stores sales increased by 22% in the 12 months to December 31 to $103.7 million compared to $85 million in 2010.
Food retailers (annual sales up 8.8% to $180 million) and food caterers (up 6% $374 million) were the other strong performers among speciality store tenants.
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In total speciality stores annual turnover increased by 3.4% in 2011 to $2.6 billion generating turnover per square metre of $9,086 compared with $8,788 in 2010.
Among the strategies CFS Retail will embrace in 2012 will be “remixing tenancies to optimise performance” and “supporting retailers by advancing online and social media strategies”.;
On a comparable growth basis (including centres that are not undergoing or have not undergone substantial redevelopment in either period of comparison), speciality tenants were second strongest-performing tenants, with turnover increasing by 2.9%, ahead of supermarkets (2.1%). 
The strongest tenant category was “other retail”, which includes cinemas, travel agents, auto accessories, lotto and other entertainment and non-retail stores, with sales growth of 3.3%. 
Department store sales slumped by 6.1% while discount stores sales fell 2.1%. 
The REIT noted a subdued retail sales growth environment with household consumption around trend.
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Across its portfolio it achieved 99.7% occupancy. 
The shopping centre portfolio’s valuation increased to $8.05 billion from a $7.9 billion valuation for the first half of the year after 16 of its assets were re-valued during the period.
Including the four DFO centres, the portfolio is worth $8.6 billion.
Its assets include the Chadstone Mall, the biggest in Australia, which is set to undergo a $520 million refurbishment.
It also currently building Emporium Melbourne between Lonsdale Street and Little Bourke Street, which upon completion in late 2013 will introduce 43,856 square metres of new, retail floor space in the heart of Melbourne’s CBD.
Net property income for the trust increased 11% to $278.5 million over the six-month period while net profits were down 42% to $201.7 million.
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lschlesinger-FZcF9M3vE6

Mobile phone stores ringing the till at Colonial First State shopping centres

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At last Friday’s Property Council of Australia gig – see <a target="_blank" href="https://matusikmissive.wordpress.com/2012/02/17/missive-extra-next-stop-brisbane/">here</a> – there was a lot of discussion about valuations currently coming in well under purchase price.  The difference between the price paid by the buyer and the bank valuation is often high – more than 20% – and the differential is spreading.
When asked about this situation, I replied that the solution should be a relatively simple one.  Firstly, bank valuers should be paid more – they carry the risk, not the bank – and this, in theory, would allow them time to conduct the appropriate research, and secondly – <a target="_blank" href="https://www.propertyobserver.com.au/developments/a-tale-of-two-queensland-buildings-an-investment-property-s-worth-should-be-determined-by-income/2011111552374">as we noted back in November</a> – rental return should determine value, not what a previous buyer paid.
I started tweeting last week – yes, I am slow to cotton on – and asked my small Twitter following whether they would like to hear more about how a bank valuation is actually done The replies were a resounding yes.  So here goes – bank valuations 101.
By the way, you can follow me on Twitter <a target="_blank" href="#!/MichaelMatusik">here</a> and each day – assuming there is something to say (you won’t find out what I had for breakfast, nor my favourite TV show or about the book I am currently reading), we will let you know…in 140 characters or fewer! *
If you require finance to complete the purchase of a dwelling, all financiers seek a valuation to ascertain the value of the property that is being offered as security for the loan.  Licensed valuers must base their opinion on hard evidence and take legal responsibility for any information they provide.
Australia’s four major banks have a panel of valuers who are assigned to value a particular property through a process called “Valuation Exchange” (Valex).  Smaller financiers often use the same valuers as the “big four”, although there are many valuers who are not part of the Valex system.
To assess a property’s value, a valuer must inspect the property, record details on the number and type of rooms, along with fixtures, fittings and any improvements.  A property’s unique attributes will also be taken into account, such as:
<ul>
<li>location</li>
<li>building structure and its condition</li>
<li>standard of presentation and fit-out</li>
<li>standard of fixtures, fittings and facilities</li>
<li>zoning and whether and planning restrictions apply</li>
</ul>
The valuer combines these attributes together with recent comparable sales in the surrounding area and prevailing market conditions to produce a valuation report.  Several photographs must also be taken to support their findings.
The identification of appropriate comparable sales is often the most contentious issue, especially in relation to new apartments purchased off the plan.  There are a number of reasons for this, as detailed below.
<ul>
<li>Comparable sales should be recent (less than six months old). This is problematic when the number of sales is low (perhaps because of a limited supply of dwellings for sale) or because of economic factors.  The number of dwelling sales last year in Brisbane, for example, was well below historical averages as a result of the January 2011 flood.  This has meant that identifying the required number of comparable sales has become that much harder.</li>
</ul>
<ul>
<li>Sufficient analysis of alleged comparative sales must occur so that family transfers and distressed sales are not shown as market transactions.  For example, one of our developer clients arranged for one of its newly completed apartments to be valued by several valuers independent of the banks.  The first valuation came in at $720,000.  The second at $730,000 and the third at $595,000!  Why was the third valuation so low?  Because the valuer in question had erroneously based the valuation on a “distressed sale” in a nearby project.  Such sales are considered to be inconsistent with the concept of “market value” as defined in the Australia and New Zealand Valuation and Property Standards.</li>
</ul>
<ul>
<li>Banks and their valuers are reluctant to use developer sales (either made off the plan or after completion) in competing projects as comparable sales.  This is based around the mistaken belief that a developer sale does not represent the “true market“.  In some locations – especially where there is no sales history for dwelling types such as a new subdivision in a green-field area – or where sales volumes are lower than usual – this leads to valuations that do not truly reflect a property’s worth.</li>
</ul>
However, the Australia and New Zealand Valuation and Property Standards state that where the property to be valued is within a new development and is being purchased from the developer, sales from other comparable developments should be considered as a cross-reference.  In our view, this means developer sales in other projects can be used as sales evidence to support a valuation.
<ul>
<li>Valuers usually do not use sales made to interstate and overseas buyers as comparative sales, based again on a mistaken belief that non-local buyers are uneducated and pay higher prices than local buyers.</li>
</ul>
<ul>
<li>In Queensland, clause 27c of the sales contract requires all agents to list how much commission they charge.  Valuers – on instruction from mortgage insurers and banks – often reduce the purchase price by the amount the agent is paid in excess of the standard Queensland sale fee of 2.5%.  This is based around the belief that the developer is increasing the purchase price by anything higher than the standard REIQ commission.  Our understanding is that this clause only applies in Queensland.</li>
</ul>
Again, <a target="_blank" href="https://www.propertyobserver.com.au/developments/a-tale-of-two-queensland-buildings-an-investment-property-s-worth-should-be-determined-by-income/2011111552374">as we wrote a few months ago</a>, the distribution of costs should have no bearing on the end value of a product.
Finally, remember that you as a buyer can challenge a valuation if it appears too low.  In particular, keep in mind that comparable sales evidence needs to be “like for like” as far as possible, especially insofar as proximity (to a railway station for example) or height above ground, view, aspect, ceiling height, facilities and so on.  Furthermore, valuers can utilise a much wider range of data than just comparable sales in any valuation report.
*Pretty please (with sugar on top)…join <a target="_blank" href="https://www.twitter.com/MichaelMatusik">my Twitter space</a>.  My aim is to have more followers than <a href="https://www.twitter.com/hotspotting">Terry Ryder</a>.  He has 1,432 followers and has posted 1,841 tweets.  I have just 129 followers, with 35 tweets.  I am winning the race at 3.7 followers (v. 0.78) per tweet, but I need numbers!
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a href="https://matusikmissive.wordpress.com/" target="_blank" title="Matusik's Missive">Matusik's Missive</a>. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
 
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michaelmatusik-49YzLvdmNv

Property valuation 101

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<table width="398" align="left" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="101">
Postcode
</td>
<td valign="bottom" nowrap width="103">
Suburb
</td>
<td valign="bottom" nowrap width="194">
Indicative gross rental yield
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6112
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">BROOKDALE</a>
</td>
<td valign="bottom" nowrap width="194">
6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6167
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">MEDINA</a>
</td>
<td valign="bottom" nowrap width="194">
5.9%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6111
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">CAMILLO</a>
</td>
<td valign="bottom" nowrap width="194">
5.8%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6107
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">KENWICK</a>
</td>
<td valign="bottom" nowrap width="194">
5.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6167
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">PARMELIA</a>
</td>
<td valign="bottom" nowrap width="194">
5.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6168
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">COOLOONGUP</a>
</td>
<td valign="bottom" nowrap width="194">
5.7%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6056
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">STRATTON</a>
</td>
<td valign="bottom" nowrap width="194">
5.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6168
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">HILLMAN</a>
</td>
<td valign="bottom" nowrap width="194">
5.%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6109
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">MADDINGTON</a>
</td>
<td valign="bottom" nowrap width="194">
5.6%
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
6112
</td>
<td valign="bottom" nowrap width="103">
<a target="_blank" href="/news">ARMADALE</a>
</td>
<td valign="bottom" nowrap width="194">
5.6%
</td>
</tr>
</tbody></table>
 
 
 
 
 
 
 
Source: RP Data

 
 
 
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cknowlton-QnEa6ntUYP

Top 10 suburbs with the highest indicative rental yield for houses in Perth

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SQM Research has compiled data on how much rental stock is available in each capital city in Australia.
<img src="/images/stories/12719.gif">
The number of residential properties available to rent in Melbourne. This equates to a vacancy rate of 3.5%, according to SQM.
 
<hr>
<img src="/images/stories/8465.gif">
The number of residential properties available to rent in Sydney. This equates to a vacancy rate of 1.6%, according to SQM.
 
<hr>
 
<img src="/images/stories/5112.gif">
The number of residential properties available to rent in Brisbane. This equates to a vacancy rate of 1.8%, according to SQM.
 
<hr>
 
<img src="/images/stories/2231.gif">
The number of residential properties available to rent in Adelaide. This equates to a vacancy rate of 1.4%, according to SQM.
 
<hr>
 
<img src="/images/stories/1084.gif">
The number of residential properties available to rent in Perth. This equates to a vacancy rate of 0.6%, according to SQM.
 
<hr>
<img src="/images/stories/583.gif">
The number of residential properties available to rent in Hobart. This equates to a vacancy rate of 2.1%, according to SQM.
 
<hr>
<img src="/images/stories/382.gif">
The number of residential properties available to rent in Canberra. This equates to a vacancy rate of 0.8%, according to SQM.
 
<hr>
 
<img src="/images/stories/238.gif">
The number of residential properties available to rent in Darwin. This equates to a vacancy rate of 0.9%, according to SQM.
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How much property is available to rent in your capital city? A state-by-state analysis: SQM

<html><body>
<table width="341" cellpadding="0" cellspacing="0" border="1"></table>
<table width="341" cellpadding="0" cellspacing="0" border="1"><tbody>
<tr>
<td valign="bottom" nowrap width="101">
Postcode
</td>
<td valign="bottom" nowrap width="101">
Suburb
</td>
<td valign="bottom" nowrap width="139">
Median house price
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2027
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">POINT PIPER</a>
</td>
<td valign="bottom" nowrap width="139">
$8 million
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2023
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">BELLEVUE HILL</a>
</td>
<td valign="bottom" nowrap width="139">
$3.28 million
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2030
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">VAUCLUSE</a>
</td>
<td valign="bottom" nowrap width="139">
$3,217,500
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2028
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">DOUBLE BAY</a>
</td>
<td valign="bottom" nowrap width="139">
$2.96 million
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2026
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">TAMARAMA</a>
</td>
<td valign="bottom" nowrap width="139">
$2.9 million
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2030
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">DOVER HEIGHTS</a>
</td>
<td valign="bottom" nowrap width="139">
$2.55 million
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2066
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">LONGUEVILLE</a>
</td>
<td valign="bottom" nowrap width="139">
$2,325,000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2088
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">MOSMAN</a>
</td>
<td valign="bottom" nowrap width="139">
$2.3 million
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2111
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">HENLEY</a>
</td>
<td valign="bottom" nowrap width="139">
$2,17,5000
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
2093
</td>
<td valign="bottom" nowrap width="101">
<a target="_blank" href="/news">CLONTARF</a>
</td>
<td valign="bottom" nowrap width="139">
$2.15 million
</td>
</tr>
</tbody></table>
Source: RP Data
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Top 10 most expensive Sydney suburbs for houses: RP Data

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Suggesting we need more investors in the property market is bound to evoke strong emotions from the first-home buyer demographic.  Many blame Australia’s “generous” tax incentives offered to property investors as the prime instigator for what’s considered (by some) to be an “overvalued” market.  The argument follows that if fewer investors purchased property, prices would fall and more young people would aspire to the dream of owning their own homes.
The basic premise is correct.  Take investors out of the marketplace and there’s no doubt demand would ease substantially with prices experiencing an immediate drop.  Investors currently make up about 30% of our market; therefore it’s a significant percentage to bear influence on capital movements.  However, if Australia’s real estate prices did drop and experience falls on a par with various states in the US (say some 40% to 50%) would there be a sudden rush of happy first-home buyers eager to snap up the “bargains”?  I doubt it.
Due to increasing concern over the global economic outlook and general market uncertainty keeping a tight cap on real estate price growth throughout the past couple of years, along with low interest rates easing the pressure for borrowers, housing in some states is more affordable now than it’s been for  years,  Some areas have corrected by more than 20% – and although it should be noted this has not happened nationwide, neither has it been restricted to the outer-suburban “nether-regions” where demand rarely stays consistent – inner-urban areas have also suffered from the current malaise.
Furthermore, despite the challenges of our “two-speed economy” and increased financial pressure on small businesses, the overall outlook for Australia paints a comparatively pretty picture, so expecting the slump to continue perpetually is unlikely.  As the deputy governor of the RBA Philip Lowe recently pointed out, it is not an exaggeration to say Australia is facing “a once-in-a-century investment boom”.
Aside from this, it seems our prospects over the next couple of years are also sunny.  Forecast growth in the economy is expected to remain on trend, unemployment rates low, and underlying inflation is bang on track to fall within 2 % to 3%.  Just in case this isn’t enough to inspire at least a smidgin of confidence from the initial home-buyer demographic, should there be any financial upsets resulting from a European disaster, we at least have the flexibility to somewhat buffer the resulting fall-out – so the picture’s looking rather rosy.
Yet despite all the above calling out to first-home buyers to enter now and realise their “Aussie dream”, purchasers love a bargain, but when it comes to property let’s face it, no one wants to take on the expense of a 30-year debt if there’s any hint it won’t provide healthy capital returns for the retirement fund.
Considering what’s happened to the property market in Europe and the US, many purchasers worry it could happen this side of the Pacific.  In addition, due to our modern transitional lifestyles, it’s become increasingly important that the first purchase has a large investment component in order to leverage up to the second.  You see, unlike during the 1950s, rarely is the first property a place to call home for the next 20 years or so.  We leave it longer to get married, have children later in life, and change jobs often.
All in all, first-home buyers prefer the amenity of more expensive inner urban locations than the relaxed atmosphere offered in the middle-suburban city ring “family-friendly” suburbs. Therefore, single first-home buyers struggle to afford their version of the dream and property purchases are often postponed for a later more settled period – during which couples can employ joint purchasing power.  However while a combined wage certainly helps, without that initial purchase to tap into, it’s hard to envisage even the family home will be achievable for a growing number caught in the long-term rental trap.  Therefore, with this front of mind, it’s clear where our future model of home ownership is heading – more renters and fewer owner-occupiers.
I’m not here to argue with anyone’s personal financial choices in life, but it stands to reason, if fewer people take the opportunity to buy, more will rent, and therefore as we transition into Australia 2030 with plans to increase housing supply substantially, we better hope there’s a growing crop of investors ready to pool their funds into property to meet this growing rental demand.
There’s one outstanding problem – the type of accommodation largely being built to absorb the need is unlikely to hold the future capital growth investors have been used to experiencing previously. At the moment Australia’s level of home ownership is high, at roughly 70%.  It’s been the desire to own a property along with our robust growing economy and population growth, which has underpinned house prices throughout the decades producing (even in the worst of times) healthy capital returns over a complete 10-year property cycle.
Considering our lucky economic stance in comparison to the rest of the world’s developed counties, along with a smaller pool of competitive buyers in the marketplace, generous tax deductions and the ease of restrictions enabling investors to tap into their self-managed super to purchase residential real estate, there’s more to encourage this demographic than ever before.  However while some property prices will continue to attract genuine owner-occupier demand and therefore maintain the long-term upward curve on capital appreciation, it’s important all property buyers understand the changes our town planners envisage if they’re going to avoid what could be a dangerous and speculative bubble.
Most renters are singles or young professional couples.  As has been demonstrated on numerous occasions by the ABS, the fastest-growing household statistic is the single person model.  The challenge of housing this demographic is providing our state governments with the perfect excuse to begin redesigning our capital cities into a potential (at least in the short term) graveyard of residential real estate.  What’s missed by the data is the type of property single home buyers really desire to own – and in many respects, long-term tenants want to rent – and I can assure you it’s not the accommodation currently undergoing mass construction.
If you take a look at an aerial shot of Australia’s “most liveable” city, Melbourne, it’s easy to see why it stays at the top of the yearly survey.  It’s largely a low-rise city that contains a wonderful feeling of human scale.  Streets surrounding the border of the CBD and running directly across it are lined with buildings of character and charm representing different eras and styles thereby giving the sense, not of urban sprawl, but of a wonderful liveable and personable nature.
However, instead of embracing this low-rise advantage and expanding the transport systems to enable the growing populous to move outward’s and commute, the local government is set to embark on an ambitious “mega city” of skyscrapers “stretching from the MCG to the West Gate Bridge and north to the University of Melbourne”. One in which the Eureka tower (the second tallest residential building in the world) could be dwarfed.  As I’ve pointed out numerous times before, this style of accommodation is designed, marketed and limited (due to lending restrictions) to a predominantly investor-based market – a market that attracts a large demographic of foreign investment from those buoyed up on Australia’s speculative growth.
As any astute property professional understands, these buildings can be poorly designed, have a tremendously high turnover of sales (and tenants), extortionate owner corporation fees and a lifestyle that often feels akin to living in holiday accommodation.  Furthermore, when you have a market dominated by investors, should there ever be an unforseen event to tip us over the brink, (something has simple as a sudden decline in demand for our underground resources, for example) we could be looking at a mass of sales, and a situation in our high-rise market, akin to the worst-affected countries in Europe (for a good example, look towards Sesena in Spain).
When times are tough, owner-occupiers will hold whereas investors will bail in an attempt to liquidise their assets – and considering such large numbers of apartment sales are focused on the foreign market, there’s no telling what other international influences may affect future growth.
Plans like this aren’t limited to Melbourne; inner-city rezoning allowing for a greater density of stock is happening country-wide – for example, Brisbane, the Gold Coast and Perth.  In all the high-rise markets over the course of the last 10 or so years, we’ve seen poor growth (from oversupply and low demand) and in some cases very poor rental take-up (a good example would be Melbourne’s Docklands, which currently has a vacancy of 7.9% (SQM) and has seen less than 5% capital growth over the past five years (RP Data).  Considering the abundance of planned construction, investors purchasing into this market can no doubt expect more of the same. Furthermore, many of these apartments are sold based on their spectacular views of the city surrounds.  This is an attractive aspect, however don’t be fooled! There’s no condition in the contract that states the view can’t be built out.  The better the view, the higher the price – often by hundreds of thousands – therefore, the consequent price drop is not marginal by any means.
All in all you have to fear the future potential of this market and the consequence any drops would have on the economy as a whole.  Make your own conclusions and assumptions, but I for one will not be placing my hard-earned dollars in this direction.  I maintain that good property that falls under consistent solid owner-occupier demand will continue to outperform throughout the foreseeable future. Just be warned however, that without plenty of due diligence, the risks of making expensive errors are more prevenient than ever.
Catherine Cashmore is senior buyer advocate, property manager and market analyst for <a href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a> and also Channel Ten’s property expert on The Circle.  With extensive experience in all matters regarding real estate, Elite Buyer Advocates successfully purchases, assesses and negotiates more than $200 million worth of property each year for its clients.
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catherinecashmore-6LXia3pPQj

Why investors are essential for our property markets

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This year has already started out as a year of economic confusion and consternation. 
We all know the strength of our property markets is underpinned by Australia’s economic prosperity, and of course this is closely intertwined with China’s growth. 
However, with the economies of many countries faltering and China’s growth slowing, some are concerned that stumbles in China’s economy could stunt Australia’s economic growth. 
So let’s look at what’s really happening in China and what’s ahead. And more importantly what this could mean to your wealth and mine. 
Why is China growing so fast?
 
In 1978, after years of state control of all its productive assets, the government of China embarked on a major program of economic reform. 
In an effort to awaken a dormant economic giant, it encouraged the formation of rural enterprises and private businesses, liberalised foreign trade and investment, relaxed state control over some prices, and invested in industrial production and the education of its workforce. 
The strategy has worked spectacularly well, and now the People's Republic of China ranks as the world's second-largest economy, after the United States. 
Over the past 30 years it has been the world's fastest-growing major economy, with consistent growth rates of around 10%. China is also the largest exporter and second largest importer of goods in the world. 
What’s ahead?
 
Since 1978 hundreds of millions of Chinese have been lifted out of poverty, yet there’s still a big job ahead, with hundred of millions of rural population as well as millions of migrant workers still living on less than $1.25 a day. 
As China goes through its industrial revolution it plans to more than 350 million people into cities in the next 15 years. 
If you think about it, this means they would be building the equivalent of 17 Australias in the next 15 years. Now that’s a mammoth task, and as Australia’s biggest trading partner China requires massive resources to fuel this growth. 
To help put some perspective to this, ANZ’s Paul Braddick suggests the following could happen in China between now and 2025:
<ul>
<li>350 million more people will move to the cities – 103 million have moved since 1990</li>
<li>221 Chinese cities will have more than 1 million people living in them – the whole of Europe has 35 million today</li>
<li>1 million kilometres of new road and 28,000 kilometres of metro rail will be laid</li>
<li>170 mass-transit systems will be built – twice the number that all of Europe has today</li>
<li>40 billion square metres of floor space will be built in 5 million buildings</li>
<li>50,000 skyscraper will be built (of more than 30 storeys) – the equivalent of building two Chicagos every year</li>
<li>97 new airports will be built</li>
<li>One in seven planes assembled by Boeing and Airbus will be delivered to China</li>
<li>1,000 MW of coal-fired power capacity will be commissioned every week – equivalent to four million tonnes of new coal demand</li>
<li>One wind farm turbine will be built every hour and a half </li>
</ul>
What’s happening in China now?
 
China’s economic growth is enormous at around 9% per annum. While this is likely to drop a little over the next few years, the growth in some of its big cities is almost double that. 
Interestingly, there are currently 16 cities the size of London in China. Cities I’ve never heard of. 
Have you heard of Changsha, Chengdu and Chongqing?  Neither had I. 
What about Weifang or Wuhan? 
Cities like these are the backbones of China’s 30 or so provinces whose astonishing economic growth is largely responsible for keeping the world’s economy in black numbers. For example, the economy of Shandong province itself is larger than those of several G20 countries. 
This is not only creating a new middle class in China but also a new group of very wealthy individuals.  According to a study by Julius Baer Group, China’s millionaires account for about half of the rich people across the 10 major economies in Asia, and the number of millionaires there will more than double in number to 2.8 million by 2015 
What does all this mean for Australia?
 
Australia stands poised to capitalise on an economic transformation unparalleled in our nation's history, with a resources and commodities boom capable of generating $480 billion of exports a year and creating 750,000 jobs in the next 20 years.
 
But there’s more to it than that. 
Currently more than 80% of our exports to China are resources; however, looking forward China offers markets of enormous proportions for all the modern services that a developed economy like Australia has to offer. We are in a prime position to supply the world’s fastest-growing major economy with food as well as a raft of products and services. 
One more thing… 
If we play our cards right, Australian tourism could be boosted as we become the playground of the new rich in China who will want to holiday in a nearby country, just as we were a preferred holiday destination of the Japanese in their heyday in the 1980s. 
According to the ANZ Bank, almost $2 trillion needs to be invested in the Australian economy for our nation to capitalise on the mining boom caused by the developing world's march towards urban industrialisation. 
While our new economy will be underpinned by mining, the benefits will flow through to the services, education tourism and our property markets. 
Sure there will be ups and downs and lots of problems ahead, however we are indeed the lucky country and our economy will remain the envy of the developed world. 
Needless to say – a strong economy is good for our property markets. 
So, if like me, you are confident that Australia has a prosperous future, our current softer property markets could be the ideal time to start or add to your property investment portfolio. 
I am going to explain exactly what I’m doing about it personally when I’m joined by finance strategist Rolf Schaefer and tax specialist Ken Raiss as we conduct our <a href="https://www.propertyupdate.com.au/2012-events/national-property-and-economic-market-update/" target="_blank">National Property &amp; Economic Update seminars</a> in five states in the next few weeks.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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myardney-DFoGhGbSJX

How Australian property markets will benefit from China’s industrial revolution

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We've come a long way since Kevin 07, WorkChoices and the description of climate change as the "greatest moral challenge of our time". On the flipside, with Rudd circulating for the leadership, the Fair Work Act damned daily in the press and a carbon tax on its way, maybe we're heading back to where we started – but a lot more battered and bruised.
As SmartCompany celebrates its fifth birthday, we're looking forward and backwards in a special two-part feature.
In part one, we take a <a href="https://www.smartcompany.com.au/economy/048298-the-five-trends-that-shaped-smartcompany-s-first-five-years?utm_source=SmartCompany&amp;utm_campaign=381bc631a2-Tuesday_21_February_201202_21_2012&amp;utm_medium=email">look</a> at the key trends that have shaped the last five years.
In this second part of the special, we've spoken to some of the country's great thinkers to find out what's in store for Australian businesses over the next five years.
What are the themes entrepreneurs need to be aware of? And how should SMEs prepare?
<h3>Volatility rolls on</h3>
If the average deleveraging cycle lasts about a decade, we still have a long way to go before the global financial crisis recedes – and either a bust-up of the euro or a nasty recession from strict austerity measures don't bode well for Europe, and its business partners across the world.
Shane Oliver, head of investment strategy and chief executive at AMP Capital Investors, says private-sector deleveraging among advanced companies will curb economic growth in the years to come – and the past few years' volatility will continue as central banks in Europe and the US continue with their "extreme" monetary policies; that is, holding interest rates around zero.
Lest companies think they can bow out of macro-economic concerns, Professor Kosmas Smrnios, lecturer in entrepreneurship at RMIT, says SMEs can ill-afford to put their heads in the sand by avoiding global competition.
"Organisations will need to look at the big picture," he says. "A parochial stance will be a thing of the past unless someone can deliver a niche product to suit a particular market."
<h3>Technology and structural change</h3>
RMIT's Smrnios says with technology developing in leaps and bounds, the focus is on how organisations can better use technologies to manage global competition and changes in supply. And as the shelf life for products and services shrink, Smrnios says technology will help companies stand out from a pack, be creative and innovative.
The Service 2020: Megatrends for the decade ahead report, conducted by the Economist Intelligence Unit and released last month, says firms will need to use the increased transparency brought by social media to their advantage.
"The clear trend to come out of this [social media] is that organisations understand it's here to stay and they need to harness it," says BDO Australia national chairman Tony Schifmann.
But although few would argue that companies can afford to ignore the enormous audiences of Twitter and Facebook, it'll be imperative for businesses to work out on their return on investment. Social media can go awry or soak up too much time; expect smarter methods to emerge as businesses get smarter with their social media practices.
The effect of technology will be most profoundly felt by the retail sector, says IBISWorld founder Phil Ruthven, likening its impact to the introduction of self-services decades ago. Just as self-service caused the demise of many retailers from the 1960s onwards, he argues, online is doing it all over again.
<h3>A new consumer</h3>
Demographer Bernard Salt says changing business models should be front of mind for all business-leaders.
"It's almost like in the Australian business community, the consumer market was travelling along and then ran into the GFC, and now everyone is battening down the hatches waiting for it to pass. But my view is we'll come out of the storm pointing in another direction," Salt says.
"Big picture structural shifts are afoot and business needs to be anything but complacent about strategic thinking."
"If you've invested in a business predicated on a model based on the 1970s through to 2010, and the model has genuinely shifted, then no amount of smart business practices will fix it."
So who's in line? Salt says by 2020, between 15-20% of retail sales could be competing online, having a profound impact on retailers and the traditional consumer model.
Similar change will sweep through the tourism industry, which has traditionally been predicated on mum, dad and the kids going on holiday in Queensland rather than jumping on a Jetstar flight to Bali.
And then there's manufacturing: Salt says although Germany has managed to retain its manufacturing sector, this is largely because its manufacturing is value-added, sophisticated and generally can't be replicated in China – yet. These are some weighty questions for out-of-favour sectors.
<h3>Sustainability</h3>
Smrnios says sustainability will be another key theme in business for the next five years.
With the carbon tax and associated compensation taking force later this year, and the commitment of Labor and the Greens to prepare for the "green economy", SMEs are urged to familiarise themselves with the financial incentives and government programs for greening up.
<h3>People power</h3>
An ageing population and ongoing skills shortages mean staffing will remain a key issue for entrepreneurs in the years ahead. Smrnios says the focus will be on finding and retaining people who:
<ul>
<li>have the appropriate skills;</li>
<li>fit in with the culture,</li>
<li>can work in teams;</li>
<li>solve problems; and</li>
<li>be up-to-date with technology.</li>
</ul>
Beyond the issue of Australia's ageing population – how will it be funded, how much longer people will have to work, how will the government and companies deal with foreign labour – industrial relations will likely loom as a hot-button issue for the country.
Phil Ruthven of IBISWorld says there is "some suggestion that the industrial relations legislation [Fair Work] may be a bit of time bomb for the future," particularly among mining and construction companies.
Time will tell what the Fair Work review throws up, and how the Coalition would change things if it won the next election. No doubt we'll get yet another system that will claim to get the balance right.
This article originally appeared on<a href="https://www.smartcompany.com.au/index.php" target="_blank"> SmartCompany</a>.
 
 
 
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Five key trends for the next five years

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Restaurateurs Matt Moran and Peter Sullivan are immersed in the final renovations of the old Prunier’s building in Woollahra’s lovely Chiswick Gardens before its March 7 reopening.
<img src="/images/stories/moranwork6.jpg">
Moran recently tweeted that operation Chiswick will have a ceiling-to-floor white-tiled Parisian bistro-style bar plus a wood-fired oven.
<img src="/images/stories/moranwork5.jpg">
A kitchen garden, with a dedicated gardener, <a target="_blank" href="https://www.chiswickrestaurant.com.au/the-garden/recipes">will produce seasonal goodies</a> for the “sharing” menu. Apparently the radishes (pictured above) and cucumbers are doing well.
<img src="/images/stories/moranwork3.jpg">
Art director Vince Frost, who created chic packaging for Donna Hay and Ceramica di Manfredi and produced a beautiful book for Damien Pignolet, is also working to create the restaurant theme. The wine list is designed by ARIA sommelier Matthew Dunne with diners enjoying views over the council garden on Ocean Street. 
The space is believed to have been part of the stables of an old house called Chiswick, which occupied the land. Woollahra Council bought it from a Mrs L.F.Holmes in 1938 for seven thousand pounds.
From 1953 the restaurant was called The Kiosk. In 1970 it was Dimitris, and Pruniers moved there in late 1972 from the Al Corso, in Double Bay, where it had opened in 1947.
<img src="/images/stories/moranwork4.jpg">
Chris Grinham from Humphrey and Edwards Design worked with Moran and Sullivan  on the restaurant’s design and interiors.
<img src="/images/stories/moranwork7.jpg">
The restaurant is set to open March 7.
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