Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

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

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The Snowtown bank listing has been pulled by eBay from its online auction on grounds that its breaches eBay’s community content standards.
Some 47 eBay bids from 17 bidders had been made in the initial 16 hours of the online auction of Snowtown’s infamous bank building.
The bidding opened with a $US25 offer added to the $US1000 starting price.
The bidding stood at $35,100 when eBay took down the listing.
The barrel storage of murder victims was not mentioned on the auction site. Listing agent Nigel Christie says he believed he was adhering to eBay policy on murder memorabilia. 
Christie is seeking to have the eBay listing reinstated.
But the originating Hale Real Estate website does say: “Ever wanted a piece of grisly SA history?”
It adds: “Buyers should note that illegal activities were conducted in the old bank building, and you should enquire to the nature of these activities prior to bidding.”
Click to enlarge
<a rel="shadowbox" href="/images/stories/snowtownlisting.jpg" title="Click to enlarge"><img src="/images/stories/snowtownlistingthumb.jpg"></a>
The disused bank at Snowtown, about 140 kilometres north of Adelaide, became infamous after police discovered eight mutilated bodies in barrels inside the vault of the bank in 1999.
<img src="/images/stories/ebayremoved.jpg">
The bank sold the premises for $43,000 in 1995. It first sold after the gruesome discovery in 2000 at $34,560.
It sold again at $130,000 in 2005.
It last traded at $142,000 in 2006.
The online auction reserve price had been hidden from participants.
The property originally built as the bank manager’s residence consists of four good-sized bedrooms and the old bank building.
“It has since been used as rental for commercial purpose and more recently as a band room/games room and setting for the movie Snowtown,” bidders were advised.
Click to enlarge
<a rel="shadowbox" href="/images/stories/snowtownebay.jpg" title="Click to enlarge"><img src="/images/stories/snowtownebaythumb.jpg"></a>
“This property is for definite sale so buyers should bid with confidence,” the eBay marketing said.
The auction of 30 Railway East Terrace was scheduled to conclude on March 20.
The bidder with the highest offer was expected to enter into a Real Estate Institute of South Australia contract within seven days of the closing of bids, according to the listing rules.
Hale Real Estate director Nigel Christie has said the Snowtown property had $200,000 expectations.
“The bank and home would make an ideal investment giving two separate rental opportunities: the four-bedroom home and the ex-bank (subject to consents).”
The listing is also being advertised on <a target="_blank" href="https://www.realestate.com.au/property-house-sa-snowtown-109650811">realestate.com.au</a>.
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jchancellor-FAypfDUnLy

Auction site eBay pulls publicity-seeking Snowtown bank listing on grounds of poor taste

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Nearly one in two (46%) home owners who entered the property market less than two years ago is looking to refinance their mortgage, according to LJ Hooker Finance.
Recent home owners are more than twice as eager then the market as whole – 22% of the more than 1,000 active property participants polled by Galaxy Research on behalf of LJ Hooker Finance said they were looking to refinance their home loan in the near future.
The survey was carried out in September 2011, before the interest rate cuts of November and December and independent rate increases announced by banks this month.
Financial products comparison website RateCity.com.au recorded a 50% increase in home loan traffic in the first two weeks in February compared with the whole month of January, indicating that the appetite for refinancing might have risen even higher than levels recorded by LJ Hooker Finance in the latter half of 2011.
LJ Hooker CEO Janusz Hooker says the RBA’s decision to hold the cash rate in February should encourage consumers to review their financial situation and plan for the year ahead.
"After the 2011 interest rate cuts, home owners are closely watching the market to see what will happen next. Our research has shown that new home owners are concerned about interest rates and are very much aware that a spike in the cost of living could affect their home loan repayments,” says Hooker.
Of those planning to refinance their home loans, 20% cite interest rates as their primary concern, with a further 17% need to refinance to consolidate their debts.
The survey indicates that homeowners are concerned about the rising cost of living with almost half (42%) of those surveyed claimed they were living within their means but felt that an unexpected large bill would put pressure on their finances. "Although Australians are taking steps to ensure that they are meeting their financial commitments, new home owners are clearly feeling increased pressure to stay on top of bills and mortgage payments," says Hooker. Not all home owners are considering refinancing due to money worries.
Almost one-third (32%) of those looking to refinance were hoping to purchase a second, or investment, property, while a further 14% believe there are better home deals available.
Paul Ryan, CEO of non-bank lender Intouch Finance, says he is growing frustrated at the “spin” being put out by the major banks who continue to “cry poor” while “enjoying record profits”.
“Ultimately it’s up to the consumer to hold the banks accountable.  In the last two weeks we’ve seen an increase in rates coupled with the announcement of major job losses.  I want consumers to know that there are other options and smaller lenders who are offering cheaper rates and make service an absolute priority of their business,” says Ryan. 
Intouch Finance offers a standard variable rate of 6.7%, which is 61 basis points below that of NAB’s 7.31% standard variable rate, the lowest of the big four banks and 76 basis points lower than Westpac, which has the highest standard variable rate of the big four. 
Ryan estimates that on a $300,000 loan over 30 years, an Intouch Finance borrower would be saving $153.60 per month or $55,000 over the life of the loan compared with the Westpac customer and $122.92 per month or $44,0000 over the life of the loan compared with a NAB customer. 
“Don’t fall for the big four crying poor ” says Ryan.  “Get on the phone, get some quotes and then call your bank to find out what it’s prepared to do to keep your business.  If the answer’s nothing, then maybe it really is time to make a change.”
To find out all you need to know about refinancing your mortgage, sign up for Property Observer’s free webinar hosted by Mortgage and Finance Association of Australia chief executive Phil Naylor tomorrow at 12.30pm: <a href="https://propertyobserver.us2.list-manage.com/track/click?u=24bd0766a834290948593f5aa&amp;id=c30855319a&amp;e=a6b9e3b424" target="_blank">The Do's and Don’ts of Refinancing Your Existing Home Loan ... and How to Avoid Unnecessary Hurdles</a>
{module What do you intend to do given the current interest rate fluctuations?}
 
{module Have you changed lenders in the last six years?}
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lschlesinger-FZcF9M3vE6

One in two new home owners looking to refinance: LJ Hooker

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The Reserve Bank noted signs of stabilisation in house prices in some capital cities, but has left the door open to further rate cuts should global demand ease further, its <a href="https://www.propertyobserver.com.au/https://www.rba.gov.au/monetary-policy/rba-board-minutes/2012/07022012" target="_blank">February monetary policy statement</a> has revealed.
“While housing prices had declined over 2011, there were signs of stabilisation in some major cities around the end of the year,” says the statement.
The central bank does name the major cities show signs of stabilisation.
However, it notes continued weak conditions in building construction and mortgage lending.
“Building construction activity remained subdued, reflecting the pull-forward from the earlier boost to grants to first home buyers, slower population growth, tight access to credit for developers and lowered expectations of capital gains. Housing credit continued to grow a little more slowly than household incomes,” says the RBA.
On the key measure of inflation, the RBA says underlying inflation is running at around 2.5%, “in the midpoint of the medium-term target range”.
“With growth expected to be close to trend and inflation consistent with the target, the board considered that this setting was appropriate for the overall macroeconomic outlook. They judged that if demand conditions were to weaken materially, the inflation outlook would provide scope for a further easing in monetary policy,” the statement concludes. 
The statement notes that the two rate cuts in November and December had been “passed through to most lending rates in the economy, which were now around average levels”. 
While noting “significant differences in conditions across sectors” it says the outlook for GDP growth remains close to trend over the next couple of years. 
“The recent inflation data had confirmed that, in underlying terms, inflation was now at the midpoint of the target range. Inflation was expected to remain consistent with the target over the forecast period. 
“Credit growth remained modest, though there had been a slight increase in demand for credit by businesses, and housing prices had showed some stabilisation around the end of 2011, after having declined for most of the year. The exchange rate had risen since early December,” says the RBA. 
The RBA also reports an improving outlook for a still “fragile” Europe. 
“While the financial situation in Europe remained fragile, the likelihood of an extremely bad outcome seemed to have diminished somewhat over the previous couple of months, partly reflecting actions by the European policymakers. 
“This, together with stronger economic data from the United States, had provided a mild boost to confidence in financial markets. Growth in China had moderated as intended, but on most indicators had remained quite robust through the second half of 2011. 
“While there were still many uncertainties, the central forecast was for growth in the global economy in 2012 to be about 0.5% below trend. Australia's major trading partners were expected to continue to grow more quickly than the world as a whole.”
 
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RBA notes ‘signs of stabilisation’ in house prices in some capital city markets 

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Salta Properties has secured the $61 million sale of its office and warehouse complex at CitiPort Business Park in Port Melbourne to the listed property group GPT.
The business three zoned complex at CitiPort (pictured below) comprises 28,000 square metres of office and warehouse facilities over five storeys with basement car parking.
<img src="/images/stories/salta.jpg">
Salta developed CitiPort 13 years ago, being one of the first to develop in the Port Melbourne precinct.
Its other estates include CitiLink Business Park, which it has sold previously, and Gateway@Port Estate, which Salta still owns.
“CitiPort has also been Salta’s head office since it was developed, and we will continue to occupy under lease for the time being,” Salta Properties managing director Sam Tarascio says.
The sale was negotiated by Tony Iuliano, national director industrial at Colliers International, and colleague Rob Joyes.
Tarascio says that the sale is in line with its business strategy and it intends to use the proceeds of the sale to advance Salta’s development pipeline.
“Following the successful sale of CitiPort Business Park, we are in a strong position to expand and accelerate the delivery of our substantial development pipeline and to take advantage of attractive opportunities as they come to market.
“We can now transfer capital towards new opportunities and existing developments, beginning by ramping up construction for projects at <a target="_blank" href="https://www.greensquareapartments.com.au/">Green Square in the Victoria Gardens Precinct</a> and at the dynamic Nexus Business Park,” Tarascio says.
The 2.55-hectare Lorimer Street building has a total building area of 28,000 square metres. There is a car park for 567 vehicles. Its fully leased net income was given as $5.5 million annually.
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Salta intends to ramp up construction of Green Square, Abbotsford project after $61 million Port Melbourne office block sale

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Mirvac has sold 55% of its first Harold Park residential precinct in Glebe in the first two months of marketing the project off the plan, according to its interim results for the six months to December 2011.
The developer sold 155 of the 296 apartments released for sale in the first two months of the marketing campaign with prices ranging from $495,000 to $1.7 million.
The developer began marketing the scheme, which will be built on the site of the Harold Park paceway, in November 2011.
Off-the-plan buyers have included media personality <a href="https://www.propertyobserver.com.au/developments/deborah-hutton-buys-two-off-the-plan-units-in-mirvac-s-glebe-harold-park-project/2011121252810" target="_blank">Deborah Hutton, who bought two apartments in December</a>.
In its Yarra’s Edge precinct in Melbourne’s Docklands Mirvac has also sold 47 out of the 82 luxury river homes, with prices ranging from $885,000 to $7 million and has exchanged contracts on 161 apartments in <a href="https://www.propertyobserver.com.au/developments/docklands-development-yarra-point-three-quarters-sold-as-mirvac-says-the-price-is-right/2011110252174" target="_blank">the 31-storey Yarra’s Point tower</a> with prices ranging from $500,000 to $2.4 million. No settlements have been recorded for the project. Also at Yarra’s Edge, boat owners have snapped up 96 out of the 149 marina berths with prices ranging from $120,000 to $225,000.
<img src="/images/stories/mirvacfeb21.gif">
In total, Mirvac exchanged pre-sale contracts of just over $1 billion in its residential projects over this period, a 20% increase over the first half of the year, and achieved 849 residential lot settlements over the six-month period.
More than half of off-the-plan buyers have come from NSW ($596 million) followed by Victorian buyers ($325 million), Queensland ($76 million) and WA ($11 million).
Managing director Nicholas Collishaw says Mirvac has commenced on the path of restring gross margin of between 18% and 20% on its residential projects and is also on target to achieve 1,800 sales in the 2012 financial year.
Collishaw says there has been strong interest in the Harold Park project, which is still two years away from completion.
He says Mirvac will continue to expand into areas of high demand for medium-density living.
The developer has registered an increase in first-home buyers (comprising a quarter of buyers) and investors (27%) with upgraders and empty-nesters comprising the majority of buyers (48.3%)
The developer says the fundamentals underpinning the housing sector are starting to improve. “Pop growth is starting to pick up, while the combination of declining property prices, rising incomes and lower borrowing costs have resulted in an improvement in housing affordability, says Mirvac.
“The changing preference of new migrants and the ageing of the population suggest the growing preference towards medium density will continue.”
The outlook is strongest for the NSW residential market, where Mirvac has the heaviest weighting (34%). Mirvac anticipates flat markets for WA and Queensland in 2012 and expects the Victorian market to decline in 2012 as it underperforms compared with other states.
Mirvac highlighted an increasing demand for apartments and semi-detached and terraced housing from migrants in its presentation.
Upon completion the 10.6-hectare Harold Park site will comprise 1,250 dwellings of one-, two- and three-bedroom apartments and terraces, with construction due to commence in May this year.
The project has received approval from the NSW state government, with the City of Sydney’s Central Sydney Planning Committee to shortly decide on the first of the development applications for the development.
Mirvac also achieved 46% pre-sales of the 231 lots released in it Pinnacle Waterside development in Rhodes in NSW.
For the six-month period, Mirvac reported a 1% rise in operating profit for the six month to December 31 of $201.5 million, compared with $201 million in the corresponding period in 2010.
 
 
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Mirvac’s off-the-plan sales jump 20%  in second half of 2011

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Following the RBA’s “surprise” decision to hold rates steady in February, financial market pricing has changed quite strikingly.  My first chart below compares the financial market’s best estimate of the RBA’s cash rate in June this year with the RBA’s actual cash rate over the last 12 months.
The implied or predicted cash rate, which is represented by the blue line, is derived from the Sydney Futures Exchange’s 30-day interbank futures contract for the month of June 2012, which cash settles on the average cash rate in June. It is, therefore, the best proxy of investors’ future beliefs apropos the actual cash rate in June that we have available to us.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/feb211.gif"><img src="/images/stories/feb211thumb.gif"></a>
The chart vividly illustrates how fickle financial market beliefs can be: they swung from pricing in more than two rate hikes back in February 2011 – and that was from a far higher base cash rate of 4.75% (it’s 4.25% today) – to an incredible six-plus rate cuts in late November last year when the doomsayers really had their way. 
The convergence of the blue line towards the red one, which denotes the RBA’s prevailing cash rate, shows us how investors have drastically pared back their expectations for monetary policy accommodation. 
Today the “market” is forecasting that we will only get one more RBA rate cut by June notwithstanding the major banks’ efforts to protect their oligopoly profits via out-of-cycle hikes. Another rate reduction following the two in November and December last year would push the RBA’s target down to a rather stimulatory 4%. 
One take-away from this analysis is that investors are not especially good at predicting rates. Having said that, they would appear to be better than economists. In a recent study, RBS’s Kieran Davies and Felicity Emmett empirically assessed the predictive powers of economists compared with a range of financial market benchmarks. In their own words: 
“We tested the accuracy of futures market pricing of the outright level of the [RBA’s] cash rate in a year’s time versus economist forecasts. Our analysis shows that the futures market comes out best on various measures of forecast accuracy, for both the long term and recent history, although neither approach is particularly good. The futures market beats the economists’ forecast 60% of the time, although both approaches persistently overestimate the cash rate and both have large average absolute forecast errors (1.1pp for the futures market versus 1.2pp for the economists). Worryingly, both approaches often point in the wrong direction to where the cash rate ends up – this happens 36% of the time for futures pricing versus 41% of the time for the economists.” 
Davies and Emmett’s finding that financial market expectations can end up wildly divorced from reality is reinforced by the chart above. In the first six months of 2011, the market’s estimate of the June 2012 cash rate was directionally way wrong. At one stage in February last year investors’ best guess at the June 2012 cash rate was 5.4%, which is nearly five standard RBA hikes above its present-day level. 
Yet investors are not stupid. They were being guided by the RBA’s communications, which at that time were pointing to higher rates given the vigorous core inflation pulse that was expected by the bank in the years ahead. 
Then, of course, the world changed. We had a rolling series of natural, political and economic disasters in Japan, the Middle East, Europe and the US. And so by July interest rate expectations started to swing from hikes to pricing in cuts by June 2012. Importantly, the market managed to manoeuvre its “base case” well in advance of the stickier views of economists, who, with a few notable exceptions, took longer to buy into the emerging offshore downside. 
Based on the best available information today, it would appear that the financial markets – and, frankly, some very dovish economists – overreacted. In late November 2011 the market was pricing in an incredibly low 2.9% cash rate by June, which is about the same level it reached during the worst days of the GFC. While no credible economist got quite this negative, there were certainly some forecasting cash rates as low as 3.5%, which would mean another three cuts from the current threshold. 
Of course, what actually transpires in the future cannot be known with confidence, and there is a state of nature in which these worst-case possibilities could still be fulfilled. 
The RBA’s striking policy shift in late 2011 has had a profound impact on consumer expectations. According to the latest Westpac-Melbourne Institute Consumer Sentiment survey, the average Australian has gone from budgeting on two to three rate hikes in mid-2011 to thinking that rates will remain unchanged over the next year (having already pocketed two cuts). 
The RBA’s decision to leave rates unchanged in February had a similar effect on consumers to that which has been observed in financial markets. Prior to the last RBA board meeting, 41% of Australians expected even lower interest rates over the next year, with only 31% banking on rises. After the RBA’s “shock” February call, the share of “doves” slumped to 30% while those expecting higher rates (i.e., “hawks”) soared to 48% (see chart below).
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/feb212.gif"><img src="/images/stories/feb212thumb.gif"></a>
Today’s final chart shows Westpac’s analysis of variations in consumer rate expectations over time, expressed in the form of forward variable mortgage rates. And it emphasises a point I have belaboured here, which has significant consequences for housing market dynamics: specifically, the change in consumer interest rate beliefs has been far larger than the actual adjustments to the RBA’s cash rate.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/feb213.gif"><img src="/images/stories/feb213thumb.gif"></a>
In June 2011, the average Australian thought the RBA would lift mortgage rates to a very restrictive 8.6%. Today average Aussies believe that home loan rates will be basically unaltered at around 7.4%. 
I’ve argued here that with unemployment sitting close to its “full employment” level, underlying inflation bubbling along inside the RBA’s target 2% to 3% band, and the economy more broadly expanding at an unequivocally “trend” pace, a period of interest rate stability would probably be a good thing. 
The RBA knows it is fallible and does not want to over-engineer the price of money. So, unless we get some new data that decisively shifts the RBA’s base case, there is a persuasive argument in favour of it not interfering further with the economy.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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Consumers expect no change in interest rates: Christopher Joye

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Property developer Lend Lease’s retail portfolio increased in value by 6% over the six-month period to December 2011.
Over the six-month period, the portfolio increased in value from $4.84 billion to $5.13 billion.
The portfolio comprises 701,000 square metres of retail space.
Major purchases made this year include the Cairns Central Shopping Centre.
Lend Lease’s Australian Prime Property Fund acquired the far north Queensland shopping centre in its entirety after paying $261 million to buy the 50% share held by joint owner Westfield.
The largest asset it manages in the portfolio is the 112,000-square-metre Erina Fair on the New South Wales central coast.
 
 
 
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Lend Lease retail portfolio value up 6% in a year

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The five NSW councils with the lowest mean gross determination time for development applications in 2010-11 were:
<img src="/images/stories/11days.gif">
Murrumbidgee Shire Council
 
<hr>
 
<img src="/images/stories/13days.gif">
Temora Shire Council
 
<hr>
 
<img src="/images/stories/18days.gif">
Coolamon Shire Council
 
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<img src="/images/stories/18days.gif" style="border-style: initial; border-color: initial;"> 
Conargo Shire Council
 
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<img src="/images/stories/18days.gif" style="border-style: initial; border-color: initial;"> 
Berrigan Shire Council
 
<hr>
 
The five NSW councils with the highest mean gross determination time for develpment applications in 2010-11 were:
<img src="/images/stories/136days.gif">
Boorowa Council
 
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<img src="/images/stories/133days.gif">
Tweed Shire Council
 
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<img src="/images/stories/115days.gif">
Leichhardt Municipal Council
 
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<img src="/images/stories/114days.gif">
Mosman Municipal Council
 
<hr>
 
<img src="/images/stories/111days.gif">
Botany Bay City Council
 
The mayor of Leichhardt, in Sydney’s inner west, has defended her council’s planning system despite its ranking as the slowest Sydney metropolitan council for approving development applications.
Leichhardt, which determined 448 applications valued at under $500,000, was one of only eight councils taking more than 100 days to approve developments, in gross mean terms, according to the NSW government’s annual report card on the state’s 152 councils.
Now at 115 days, Leichhardt had recorded 113 days in the year prior.
“I think the issues you need to consider are that Leichhardt Council’s local government area is the fourth most intensely developed in Australia,” Leichhardt mayor Rochelle Porteous told the Australian Financial review.
“We have some of the smallest lots of any local government area, and 70% of Leichhardt Council is heritage conservation zone.”
The 2010-11 Local Development Performance Monitoring report provides an overview of the performance of the NSW planning system and information on local and regional development determined by councils, private certifiers and joint regional planning panels.
This year’s report is the sixth in the series. 
The ongoing effects of the global financial climate are evident in the development activity results for 2010-11. Development activity fell compared with 2009-10 while the total value of development increased during the same period.
While key indicators of performance, such as the statewide average determination time across 152 councils, were similar to 2009-10, the most recent year continued the trend of fewer councils with very high average determination times. 
Overall development approvals fell by 3% compared with 2009-10. 
A total of 81,147 local development approvals (DAs and complying development certificates or CDCs) were reported for 2010-11. 
This was 3% higher than 2008-09 when development activity reached a historic low.
 
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The NSW best- and worst-performing councils on residential development approvals

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Investor interest is likely to be high for the latest group of 7-Eleven service stations, which will go to auction on March 22.
Ten service stations will go under the hammer in NSW ranging in size from just 955 square metres for a West Pennant Hills service station to South Windsor property measuring 4.7 hectares (by the far the biggest to be sold to date), in the Hawkesbury municipality.
Initial annual rentals for the 10 service stations range from $160,000 to $320,000 with a guaranteed 4% annual rent increase.
The stores are part of the 250 retail sites acquired by 7-Eleven following its $61.1 million acquisition from Mobil Retail in May 2010. Each includes a service station, convenience store and customer parking
The South Windsor property is located close to the Bligh Park shopping centre and on the major access path to the Windsor town centre and Penrith. 
The 4,465-square-metre Bankstown service station has the highest annual rental of $320,000. It is located close to the main commercial and retail centre approximately 16 kilometres from the Sydney CBD.
The full list of NSW services stations is:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="319"> </td>
<td valign="top" width="151">
Size
</td>
<td valign="top" width="146">
Annual rental
</td>
</tr>
<tr>
<td valign="top" width="319">
South Windsor, 735 George Street 
</td>
<td valign="top" width="151">
47,370 sqms
</td>
<td valign="top" width="146">
$250,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Roseville, Cnr Pacific Highway &amp; Boundary Street
</td>
<td valign="top" width="151">
2,598 sqms
</td>
<td valign="top" width="146">
$250,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Bankstown, 180 Stacey Street
</td>
<td valign="top" width="151">
4,465 sqms
</td>
<td valign="top" width="146">
$320,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Greenacre, 301-313 Hume Highway
</td>
<td valign="top" width="151">
8,268 sqms
</td>
<td valign="top" width="146">
$300,000
</td>
</tr>
<tr>
<td valign="top" width="319">
West Pennant Hills, 552 Pennant Hills Road
</td>
<td valign="top" width="151">
955 sqms
</td>
<td valign="top" width="146">
$160,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Parramatta, 81 Victoria Road
</td>
<td valign="top" width="151">
2,802 sqms
</td>
<td valign="top" width="146">
$170,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Dapto, 125 Princess Highway
</td>
<td valign="top" width="151">
2,335 sqms
</td>
<td valign="top" width="146">
$200,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Newport, 307-311 Barrenjoey Road
</td>
<td valign="top" width="151">
1,435 sqms
</td>
<td valign="top" width="146">
$250,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Burwood, Cnr Shaftsbury Road &amp; Parramatta Road
</td>
<td valign="top" width="151">
4,549 sqms
</td>
<td valign="top" width="146">
$170,000
</td>
</tr>
<tr>
<td valign="top" width="319">
Minchinbury, 815 Great Western Highway
</td>
<td valign="top" width="151">
2,419 sqms
</td>
<td valign="top" width="146">
$250,000
</td>
</tr>
</tbody></table>
All properties come with new 15-year leases, with three further renewal options of five years each and 4% annual fixed rent increases. The tenant pays all outgoings except land tax.
The 4,549-square metre Burwood service station sits on the most valuable land – estimated at $4 million – and has the highest estimated 2011 land tax bill of $64,000.
The 2,335-square-metre Dapto property is valued at $400,000 and has an estimated land tax bill of just $164.
The properties are being marketed by John Macree from Jones Lang LaSalle, who led the 2011 NSW campaign, <a href="https://www.propertyobserver.com.au/retail/high-yields-for-7-elevens-continue-to-attract-investors/2011120752720">which culminated in 10 sales of 7-Elevens at auction</a>.
Macree could not provide a price guide, but says the 2010 sales results “may be useful as a guide”.
“Buyer appetite for these passive investments secured by long-term leases remains strong,” he says.
Last year commercial property investors snapped up more than $90 million worth of refurbished 7-Eleven service stations across NSW and Victoria with prices ranging from $1.6 million for a 1,900-square-metre service station in Bayswater East in Melbourne to up to $4.6 million for a 2,824-square-metre site in Turramurra.
A further six Queensland 7-Elevens are to be sold by Jones Lang LaSalle’s Ben McGrath.
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NSW 7-Eleven service stations expected to garner strong investor interest

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When it comes to commercial property investing, have you ever actually sat down and analysed your principal aims?
And have you then matched them against the properties you already own — or those you may now be considering?
Basically, you'll find most people purchase commercial property for one (or more) of four reasons.
<ul>
<li>to receive a solid cashflow;</li>
<li>to provide a profitable return;</li>
<li>to benefit from tax savings; and</li>
<li>as a hedge against inflation.</li>
</ul>
You may feel you'd like to achieve all of these. But generally, one or two will stand out as being more important for you.
As you're probably aware, the truly rich tend to generate their capacity for wealth through their business activities. But then, they turn to commercial property to preserve and grow that wealth.
And in the same way, your underlying principles should also be to protect your original equity, and then obtain a worthwhile, ongoing return on it.
With that in mind, you would need to remove anything of a highly speculative nature from among the properties you pursue. Because, what you're effectively seeking is solid growth — without unnecessary risk. And that brings us to:
Your investment profile
More often than not, you can determine your profile based upon your personality type and your past experience.
Type #1: The Risk Taker
Some people love telling stories about how they "gambled a lot" — where they would have either made a fortune or gone broke. These investors can be quite entertaining to listen to, but rather dangerous to imitate.
Type #2: The Armchair Investor
These people certainly know their stuff — because they attend lots of seminars, read many books and are probably a regular on several forums. But they never have enough conviction to actually invest for themselves.
Type #3: The Shrewd Conservatives
These are the mildly aggressive investors, who only increase the size of the portfolio when they have enough funds in reserve. They do their homework before buying and don't put the existing properties at risk.
Bottom Line: As you can appreciate, it is the Type #3 investor who is most likely to succeed. And that's the one you should strive to emulate, going forward.
Anyway if you'd like to explore all of this in more detail, I would invite you <a target="_blank" href="https://commercial-property-secrets.com/">to watch a video</a>, where I'll walk you through a case study and also outline the precise steps you need to follow.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
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