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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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While the total return for the A-REIT sector was -1.6% in the 2011 calendar year, it outperformed the broader Australian equity market, which recorded a -11% return. A-REITs are now regaining some of the defensive characteristics they traditionally exhibit. 
Renewed optimism is occurring. It is driven by repaired and relatively healthy balance sheets. Sector gearing now averages approximately 28%, down from 37% in 2006. As current debt facilities expire over the course of this year, resetting these facilities at the lower interest rates will reduce interest payments. This will improve net earnings, just the same as any household budget with a mortgage. 
A-REITs trade at a near 10% discount to their net tangible assets (NTA). Some A-REIT managers such as Stockland and GPT are undertaking share buy-back schemes in order to boost their NTA. These buy-backs are being funded by targeted property asset sales at or above NTA. The net proceeds are then used to buy back their own discounted shares. 
Mergers and acquisitions is a theme that will feature this year. Charter Hall Office Trust will start the corporate activity, with a unit holder vote expected to ratify the privatisation of the trust in March. <country-region>Singapore</country-region>’s GIC and <country-region><place>Canada</place></country-region>’s Public Sector Pension Investment Fund are the investors. Another potential candidate for corporate activity is the newly revitalised Centro Retail Australia Trust, which is offering a prospective 6.8% yield on a portfolio of domestic retail assets held under a new structure which is trading at a 23% discount to NTA. 
The persistent discount between market prices and NTA is encouraging this corporate activity. This supported by the opportunities available to acquire institutional grade real estate at a discount. An additional benefit is the stamp duty saving over acquiring the assets outright. 
Reduced interest rates, prevailing discounts to NTA and repaired balance sheets provide solid prospects for A-REITs in 2012.
Mark Wist is senior asset consultant at <a target="_blank" title="Atchison Consultants" href="https://www.atchison.com.au/">Atchison Consultants</a>.
For more forecasts for what 2012 has in store for our property markets, <a href="http://propertyobserver.com.au/ebooks/free-ebook-property-forecasts-for-2012" target="_blank">download our free eBook</a>.
 
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markwist-Vaq6S8Xoby

Solid prospects for A-REITs in 2012

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Mortgage holders have received interest rate relief from lenders but businesses lending rates have not dipped at all, the latest RBA chart pack has revealed.
Business lending rates have not dipped following the November and December 2011 rate cuts:
<img src="/images/stories/rbafeb81.gif">
Mortgage holders have received interest rate relief from lenders but businesses lending rates have not dipped at all, the latest RBA chart pack has revealed.
<img src="/images/stories/rbafeb82.gif">
The chart pack also shows how the three-year fixed lending rate has fallen over the past year both for housing and small businesses in line with the benchmark 90-day Bank Bill Swap Reference Rate.
<img src="/images/stories/rbafeb83.gif">
This chart showing state output shows the impact the mining boom is having on the Western Australian economy and its growing share of the national output:
<img src="/images/stories/rbafeb84.gif">
 
 
 
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lschlesinger-FZcF9M3vE6

Lenders passing on rate cuts to borrowers but not businesses: RBA charts

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A heavy discount on a property’s price hopes can often mean its vendor misjudged the market when first putting it up for sale, says SQM Research.

On releasing its latest list of the top 10 most discounted properties in Australia, the research firm points out that the Queensland property at the top of the list has had its price hopes slashed by 42%.
The former number-one most discounted property, in Tasmania, is no longer on the discount list because its price hopes have risen.
Macleay Island now takes the top spot. Homes in <a target="_blank" href="/news">Macleay Island</a> have an average discount of 19%, according to RP Data.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/macleaymap.jpg"><img src="/images/stories/macleaymapthumb.jpg"></a>
"Our number one property on this week's list – 92 Beelong Street, Macleay Island 4184 – was initially priced at $590,000, only to be still sitting on the market now at $340,000," SQM says.
"It is evident that there was a level of misjudgement concerning the market value of this home, but what is possibly the most tragic about this particular example is that this misjudgement stems back to the previous sale of the property, where it was in fact sold for $590,000 back in December 2007."
The property has been listed by the mortgagee in possession since November 2011. 
"Yes, this is not necessarily your average home in an average location, however losing $250,000 in the space of four years is probably not what the vendors of this property had in mind when they originally bought it in 2007,"  SQM says.
 
1
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106479016" target="_blank">92 Beelong Street, Macleay Island, Queensland, 4184</a>
On the market since: May 23, 2010
Initial asking price: $590,000
Current asking price: $340,000
Reduction: 42%
Days on market: 615
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">2</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008940771" target="_blank">102 Fountain Road, Burpengary, Queensland, 4505</a>
On the market since: April 17, 2011
Initial asking price: $1.2 million
Current asking price: $699,000
Reduction: 42%
Days on market: 288
 
 
3
<a href="https://www.realestate.com.au/property-house-qld-karragarra+island-106914618" target="_blank">121 Treasure Island Avenue, Karragarra Island, Queensland, 4184</a> (pictured)
On the market since: October 23, 2010
Initial asking price: $335,000
Current asking price: $200,000
Reduction: 40%
Days on market: 462
 
4
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008421301" target="_blank">27 Reeve Street, Campania, Tasmania, 7026</a>
On the market since: June 14, 2010
Initial asking price: $330,000
Current asking price: $200,000
Reduction: 39%
Days on market: 596
 
<h2 style="font-size: 18px; line-height: 21px;">5</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106866439" target="_blank">329 Waterford Road, Ellen Grove, Queensland, 4078</a>
On the market since: October 16, 2010
Initial asking price: $1,275,000
Current asking price: $800,000
Reduction: 37%
Days on market: 469
 
<h2 style="font-size: 18px; line-height: 21px;">6</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106364068">22 Fenton Avenue, Christies Beach, SA, 5165</a> 
On the market since: March 6,  2010
Initial asking price: $1,195,000
Current asking price: $750,000
Reduction: 37%
Days on market: 693
 
7
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008729828">2/18 Campbell Crescent, Terrigal, NSW, 2260</a>
On the market since: December 11, 2010
Initial asking price: $1.99 million
Current asking price: $1.25 million
Reduction: 37%
Days on market: 413
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">8</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2008491614">25 Vicary Street, Triabunna, Tasmania, 7190</a>
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 547
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
<h2 style="font-size: 18px; line-height: 21px;">9</h2>
<a target="_blank" href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.domain.com.au%2FPublic%2FPropertyDetails.aspx%3Fadid%3D2007193295">290 Viveash Road, Swan View, WA, 6056</a>
On the market since: June 5, 2008
Initial asking price: $2.29 million
Current asking price: $1.45 million
Reduction: 37%
Days on market: 1,334
 
<h2 style="font-size: 18px; line-height: 21px;">10</h2>
<a href="https://sqmresearch.com.au/homediscounts/redir.php?url=http%3A%2F%2Fwww.realestate.com.au%2Fcgi-bin%2Frsearch%3Fa%3Do%26id%3D106211228" target="_blank">15 Gretel, Two Rocks, WA, 6037</a>
On the market since: December 26, 2009
Initial asking price: $1.1 million
Current asking price: $699,000
Reduction: 36%
Days on market: 763
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
 
<h2 style="font-size: 18px; line-height: 21px;"></h2>
SQM Research also offers a list of the <a href="https://www.sqmresearch.com.au/top100bargains.php" title="SQM Research" target="_blank">Top 100 Biggest Bargains in Australia </a>for sale.
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louischristopher-TWpYcZDLBK

Queensland accounts for four of top five most discounted properties in Australia as vendors often misjudge the market: SQM 

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Keynesian purists are all clutching their foreheads, but actually it's pretty fabulous that Australia's politicians are competing with each other to promise budget surpluses: it's so much better than the appalling tax cut and spending competition of last decade led by JW Howard. 
Politicians can really only be trusted with emergency fiscal policy, such as when they flooded the world, and Australia, with blind government spending in late 2008. Otherwise borrow only in recession please, and at other times make outgoings less than incomings.
Central banks are running the global economy now, not finance ministers and bureaucrats. Elected governments are either tapped out or, in the case of Australia, splendidly sidelined by the potent political symbolism of surplus budgeting.
The European Central Bank and the US Federal Reserve are both using the rather novel strategy of printing money for financial speculators to play with to try and avoid another collapse and recession. Quantitative easing in the US and the ECB's LTRO strategy involve flooding the system with cheap money knowing that it won't be lent but gambled on carry trades and asset punts.
The result, as we begin 2012, is rising asset markets. In the US it's shares and property, in Europe all-important sovereign bonds, specifically in Italy and Spain. This morning's contraction in German industrial production, however, as well as the continuing weakness in US employment (highlighted by Fed chairman <a href="https://www.bloomberg.com/news/2012-02-07/bernanke-says-8-3-unemployment-understates-weakness-in-u-s-labor-market" target="_blank">Ben Bernanke this morning</a>) suggests that the transmission of this plan to the real economy is muffled.
The problem for the Australian central bank is that the speculators thus financed are keen on Australian assets, and why not? It's a AAA country paying 4% on 10-year bonds and a dividend yield of 8% on Telstra shares that is underpinned by government cash.
Australia is a carry trade paradise and to prove it the dollar is at, or close to, $US1.08, moving higher.
So does the RBA cut rates to bring down the currency, as some suggest? No, that won't work. The capital inflow is not investing in cash.
Far better, according to the RBA, to just watch the inflation rate, watch unemployment, try to ignore warnings about hardship and layoffs in the real world, and read up with what's happening in Europe.
On that basis there was a solid case for leaving rates on hold yesterday because, in theory and looking only at the stats, the economy is in equilibrium (moderate inflation, moderate to low unemployment) and Europe is looking a bit better thanks to the ECB's employment of the "good bacteria" of carry trade speculators keep the sovereign bond market afloat.
But as we have suggested previously in these columns, unemployment on the Australian east coast, and perhaps in the national statistics, is heading higher because retailers, manufacturers and banks are all cutting costs, because penalty rates are capping employment in hospitality and the currency is cutting tourism and exports.
In addition there seems a fair chance the banks will break cover and raise mortgage rates over the next month, starting with ANZ on Friday, which won't be great for the property market.
But at least Australia's RBA still has "sea-room", to quote Wayne Swan, to use normal monetary policy to impose a pay cut on the nation's bank depositors, thus lowering at least some of the banks' funding costs.
Other central banks can't do that since rates are at or close to zero. All they can do is print money for speculators to play with and hope that one day actual businesses will want to start borrowing to invest.
This article originally appeared on<a href="https://www.businessspectator.com.au/" target="_blank"> Business Spectator</a>.
 
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akohler-TyLfJGrMb8

There's a fair chance the banks will raise mortgage rates, starting with ANZ on Friday: Kohler

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Credit Union Australia (CUA) has cut its three-year fixed-rate home loan for the third time in the space of five months, taking it below that of the major banks. 
The move follows the RBA leaving rates on hold yesterday and speculation that the major banks might raise interest rates on standard variable mortgages this week. 
The mutual, one of the biggest in Australia, with 400,000 customers, will reduce its three-year fixed rate by 39 basis points from February 13, taking the interest rate from 6.34% to 5.95%. 
CUA says it now offers one of the lowest three-year fixed-rate home loans in the market – 43 basis points lower than the average of the big fours’ three-year fixed-rate home loans.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/cuachartlarge.gif"><img src="/images/stories/cuachart.gif"></a>
Based on an average loan size of $300,000 with a 30-year term, a three-year fixed-rate home loan from CUA at this rate could save borrowers $84 per month, or $3,024 over the three-year duration of the loan, compared with the average rate of the big four banks on the same product. 
“CUA is committed to offering customers the best deal we possibly can. Because our customer owned model enables us to focus entirely on our customers, not on shareholders, we have more flexibility to make rate decisions that are in their best interests,” says Jason Murray, CUA’s acting general manager for products and marketing.
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CUA cuts fixed-rate mortgages to undercut major banks

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Probably the biggest property myth of 2011 was the claim that Australia was in a “property bubble” that was about to burst. 
It was only a few years ago when “doomsday economist” Steve Keen predicted Australian house prices would plummet. Awkwardly for him, average house prices went up 40% rather than down. 
Interestingly, he now predicts that house prices will fall around 10% this year. I must admit I can see property values falling further in some areas, but I don’t see a property crash happening. 
Watch out for the economic tsunami 
Let’s not forget Harry Dent, another purveyor of doom, who came to our shores last year warning that an economic tsunami was about to hit. Starting in Europe, Dent predicted the downturn would spread to the US, China and eventually Australia, causing property values to drop to levels not seen since the late 1990s. 
He was right about the economic troubles facing most of the world, but I don’t think he understands the fundamentals of the Australian property markets. 
I’m not suggesting we are immune to the overseas problems, clearly we are not, but I can’t see a property crash occurring here. 
What about affordability? 
Throughout the year there were cries that housing is unaffordable and “something” had to be done. 
The year finished off with<a target="_blank" href="https://www.propertyobserver.com.au/residential/australian-housing-market-more-at-risk-than-pre-gfc-america-the-economist/2011112852565"> The Economist magazine warning that Australian house prices could plunge</a> by as much as 25% on the back of a global credit crunch caused by the European meltdown. This is not as bad as last year when the pundits suggested our property markets were overvalued by 61%, based on the ratio of house prices to rents.
 
This year started off with the latest <a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-and-melbourne-in-the-top-five-least-affordable-cities-in-the-world-demographia/2012012353110">Demographia International Housing Affordability Survey</a> reporting that “Australia exhibited the worst housing affordability of any national market outside Hong Kong".
So is our property market really so overpriced and is there a bubble waiting to burst? 
Let’s start by looking at the latest figures from RP Data. They suggest Australian property values fell by 3.6% nationally for 2011, with Brisbane and Melbourne experiencing a 6.8% and 6.1% market value decline respectively.
 
The most recent Australian Bureau of Statistics figures suggest capital city house prices fell 4.8% over the last year. 
The predictions of a property market crash just did not eventuate in our main capital cities. 
Of course, it did in some of our holiday locations, like the Gold Coast and the Sunshine Coast, but these were never really areas to invest in. 
I know some property pessimists would argue that the bubble is just getting bigger and bigger, which means Australia is heading for an even larger property crash. 
Is housing really unaffordable? 
I agree that to many, housing in Australia is expensive. But that’s what comes from having large dwellings in some of the best spots in the world to live. 
Let’s face it, house prices got ahead of themselves in some parts of Australia and have since corrected, especially in the more affluent areas and holiday locations. 
But that does not necessarily mean property is unaffordable or that it is going to crash. 
The most commonly used benchmark to determine whether housing is affordable is if it costs less than 30% of the household income. However, some households can afford to spend more than half of their income on mortgages or rents, while others struggled when housing ate up 30% or less of their gross earnings. 
Another way of measuring affordability 
A new <a href="https://www.ahuri.edu.au/themes/housing_affordability/">study</a> by the <a target="_blank" href="https://www.ahuri.edu.au/">Australian Housing and Urban Research Institute</a> strongly suggests that the traditional method of calculating housing affordability is outdated and should be considered in conjunction with other ways of weighing up whether people can afford their mortgage or rent. 
According to a paper from the United States Census Bureau, the rule that households can devote 30% of their income to accommodation costs before the household is said to be "burdened" evolved from the United States National Housing Act of 1937. 
Times have changed a lot since then; we now live very differently. 
There are a lot more DINKS (double income no kids), SINKS (single income no kids) MINGLES (middle-aged singles) and one-person households. 
Yet another way of looking at affordability 
Property commentator<a target="_blank" href="https://www.propertyobserver.com.au/residential/housing-affordability-in-australia-is-not-as-dire-as-you-think/2011121352823"> Michael Matusik suggests</a> that instead of the 30% rule, one should look at the income left over after debt servicing, as this approach paints a different picture to that obtained simply by calculating the proportion of income devoted to repayments. 
Rising incomes have allowed households to meet rising loan repayments while maintaining (and often increasing) living standards. 
Matusik believes that rising household incomes mean that the 30% traditional affordability benchmark is now outdated. 
In fact, given higher income levels now, households can devote as much as half of their income to debt servicing, while maintaining the same standard of living. 
The AHURI study I mentioned above found similar results. 
Now don’t get me wrong, I’m not saying that some people are not suffering from mortgage stress. What I am saying is that some households can easily afford 50 to 60% of their income going on rents or mortgages and still have plenty enough left over. 
What it boils down to is that potential first home buyers need to understand that buying your first property is not easy. It never was. 
It involves saving discipline, sacrifice and compromise and perhaps not purchasing your “dream home” straight away. 
Why I don't think the Australian property market will crash 
Currently a tug of war is affecting our property markets, with low interest rates pulling hard on one end of the rope and economic uncertainty joining forces with subdued prospects for economic, income and employment growth at the other. 
I expect the economic side of the equation to win out in the near-term, influenced in the first half of 2012 at least by continuing global financial turbulence. 
This will mean property values are likely to remain flat in most parts of Australia for the first half of the year. 
But our overall market is unlikely to collapse. For that to occur we would need to have high interest rates, massive unemployment, a recession or a failure of our banking system. 
I can’t see any of these events happening in the foreseeable future. 
In the meantime, we’ll see more US analysts surprised that Australian real estate hasn't collapsed as their market has. The problem is that these economists keep analysing Australian properties as if they were shares – it's like comparing apples with oranges. 
Remember in Australia, 70% of properties are bought by owner-occupiers. And one of the things that keeps pushing our property prices up is that, by and large, these property owners all want to live in the same areas. 
If you think about it, 70% of our population lives in one of eight capital cities and most of these people want to live in the inner and middle ring suburbs, near the city, near amenities and near their jobs. 
Secondly, Australia doesn't have suburbs full of empty houses awaiting mortgagee sales like the US. And despite our population growth falling lately, it is still growing at a rate faster than most developed nations. 
Sure, some Australians currently have issues with housing affordability and are putting off their home buying decisions. But people still need a roof over their heads. People are still getting married and people are still getting divorced, some are having babies and others have to move house for their jobs. 
If they can't afford to buy a house they rent one, hence vacancy rates are at unprecedented lows and pushing up rental prices. 
We are moving into the next stage of the property cycle 
And the next stage is the stabilisation phase of the cycle.
<img src="/images/stories/yardneygraph.jpg">
You see, the markets don’t move directly from the downturn phase to a property upturn. There is a period of time where buyers return and take up the slack before prices start rising. 
And I expect more buyers to return to the market this year when they realise prices won’t fall any further. 
By the way, the stabilisation phase is a great time for savvy investors to get set for the upturn stage of the cycle.
 
This year may be a good time to buy property – I have always found it a good time to buy when everybody tells you that property is a bad investment. 
Now is the time to get set for the future.
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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Australian housing price bubble is a myth: Michael Yardney

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RateCity CEO Damian Smith has downplayed the risk of banks raising mortgage rates, but he says anything is possible.
“It’s been an extraordinary last 48 hours. Twenty-four hours ago we were expecting banks to pass on 10 to 15 basis points of a 25-basis-point rate cut, now they’re pushing the line of a rate rise,” Smith tells Property Observer.
“Nothing surprises me anymore, but I would be surprised if they raised rates at time when lending growth is slow. The big issue is not funding cost but the slow lending market,” he says.
If banks do raise rates, Smith says they will be banking on “inertia from customers” and assuming that they won’t switch lenders.
“It’s up to customers to demand better and be ready to switch,” he says.
His comments follow speculation that the major banks could raise rates independent of the Reserve Bank in order to protect their profit margins on mortgages.
Borrowers should know by Friday whether their mortgage repayments will rise when ANZ makes its independent interest rate announcement.
Should ANZ push up its standard variable mortgage rate, the other banks are likely to follow suit.
Alan Mitchell, finance editor at the Australian Financial Review, says “conventional wisdom” dictates that ANZ will not raise rates after the RBA left them unchanged.
“To do so would be much more?provocative than the banks’ preferred strategy of simply not fully passing any RBA rate cut to its customers,” he says.
The banks were expected to pass on only part of an expected 25-basis-point interest rate cut yesterday – effectively increasing their net interest margins – but they and most economists were stumped by the RBA’s decision to keep rates on hold for another month.
<a href="https://www.propertyobserver.com.au/economy/rba-may-not-cut-rates-until-may-commonwealth-bank/2012020753285" target="_blank">Commonwealth Bank chief economist Michael Blythe speculated that the RBA could hold off on cutting rates again until May</a>.
ANZ head of Australian economics Katie Dean says the risks have risen that the cash rate will remain on hold “well into the second quarter”.
Westpac chief economist Bill Evans remains hopeful that the RBA will hope “adopt a more appropriate policy response over the course of the next few months beginning with a 25-basis-poing rate cut on March 6” but acknowledges that the bank “does not provide strong encouragement to expect a cut in March”. Yesterday the RBA noted an improving situation in Europe following the intervention of the European Central Bank in December, but a new report by Moody’s lists Australia alongside New Zealand, Korea, and Vietnam as the Asia-Pacific economies most at risk from a collapse in Europe and says further deterioration of the property market is a “menacing risk” facing the economy.
A fall in house prices would impact on foreign investor confidence in Australian property and make it more expensive for banks to raise money offshore, Moody’s has warned.
NAB released its quarterly results yesterday revealing unaudited cash earnings of $1.4 billion, but the bank highlighted “higher deposit and wholesale funding costs”.
“Higher deposit and wholesale funding costs, softening credit growth and fragile economic conditions continued to be key characteristics of the operating environment in most of the regions in which NAB operates,” said National Australia Bank Group chief executive Cameron Clyne.
The other major banks have beat a steady drum about rising wholesale funding costs while the Australian Bankers’ Association last week put out a statement on “how bank funding works and why banks are under funding cost pressures”.
After Westpac announced it would cut about 560 jobs last week, CEO Gail Kelly said that while a cataclysmic collapse in Europe was off the table risks remained elevated and  “if anything they are higher now than they were at any times during the entirety of GFC”.
Kelly also would not commit to pass on any future rate cuts. NAB has pledged to keep offering the lowest standard variable rate of the four major banks.
If ANZ raises its mortgage rates, NAB could also push up its rates and still continue to offer the lowest interest rate of the big four.
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" colspan="2">
Standard Variable Rate p.a. 7 February 2012
</td>
</tr>
<tr>
<td valign="top">
NAB
</td>
<td valign="top">
7.22%
</td>
</tr>
<tr>
<td valign="top">
ANZ
</td>
<td valign="top">
7.30%
</td>
</tr>
<tr>
<td valign="top">
CBA
</td>
<td valign="top">
7.31%
</td>
</tr>
<tr>
<td valign="top">
WBC
</td>
<td valign="top">
7.36%
</td>
</tr>
</tbody></table>
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Banks unlikely to raise interest rates for home borrowers: RateCity’s Damian Smith

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The second off-the-plan marketing campaign of apartments in the Crown Group’s Top Ryde City Living development is a near sell-out.
<img src="/images/stories/topryde7.jpg">
The recent pre-sales have accounted for almost all of the 81 apartments up for sale since September.
 
<img src="/images/stories/topryde5.jpg">
Apartments ranged in price from $500,000 for a one-bedroom apartment plus study with a car space to $1.6 million for a three-bedroom penthouse with study, two car spaces and city views.
<img src="/images/stories/topryde8.jpg">
It followed the earlier successful marketing campaign when 183 apartments were put up for sale in the first stage of the release.
The Crown Group chief Iwan Sunito believes the pre-sales were achieved due to the prime location – 12 kilometres north west of the Sydney CBD, near major employment and education facilities.
On <a href="https://www.propertyobserver.com.au/developments/crown-group-seeks-out-asian-buyers-for-top-ryde-project/2012013153090">completion the $500 million complex</a> will consist of 502 apartments across five towers above the shopping centre.
<img src="/images/stories/topryde10.jpg">
The sales have been across three towers. Registration for sales for apartments in the fourth tower are currently being taken, says Roy Marcellus, the head of sales and marketing for Top Ryde City Living.
“The majority of buyers at Top Ryde City Living are owner-occupiers,” Sunito advises.
<img src="/images/stories/topryde11.jpg">
“The level of design and amenity is meeting a high level of expectation amongst the downsizer, empty-nester or first-home buyer markets.”
<img src="/images/stories/topryde12.jpg">
Crown International Holdings Group (Crown Group) was co-founded by Iwan Sunito and Paul Sathio in 1996.
The privately owned company currently has over $2 billion worth of developments in the pipeline.
Crown Group is actively searching for new development opportunities and strategic acquisitions.
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Second off-the-plan stage of Crown's Top Ryde project almost sold out

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January Perth sales up on 2011 transactions: REIWA

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Last week I gave an address to about 400 members of the Victoria branch of the UDIA.  “I appreciate the honesty and directness,” quipped several from the audience after the event.  But they were just being nice – I think many wanted to stab me, or at least shut me up.  My MO wasn’t to rub anyone’s nose in it, just give out some tough love.
Usually the media is informed about such events and they are spruiked to all and sundry, but not this time.  While some in the development industry in Melbourne appreciate that things are going to get tougher, too many are still hoping that things will somehow magically improve.  That was what too many in development across Queensland thought too, in late 2007.
According to Mark Twain, “history may not repeat itself, but it does rhyme a lot”.
Here’s what I said: 
Click to enlarge
<a href="/images/stories/matchart1.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/matchart1thumb.gif"></a>
The new housing market will remain tough across Australia and especially in Victoria for some time.
While we do not expect the market to crash, it will be increasingly difficult to make new sales.
People will, of course, purchase new property, but the property on offer will need to be better tailored for, and marketed to them.
The development industry has become quite sloppy in recent times.  Sales in the southern states (Victoria largely) have been too easy and the attention to service/detail limited at best.
<img src="/images/stories/matusikclock.jpg">
Things are now changing.  Melbourne is past its peak and is at one o’clock on the property clock.  The Victorian market is now oversupplied with both new and existing stock, confidence is low and there are fewer jobs being created today than in the recent past.
End prices are also high and somewhat unaffordable.  Rental growth, while still positive, is now sluggish and is likely to remain so, with the city having the highest vacancy rate of any Australian capital, at over 4%.
Click to enlarge
<a href="/images/stories/matusikchartlarged.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/matusikchart.jpg"></a>
Brisbane, my home town, in contrast is at the bottom of the cycle and is about to experience a recovery.  As noted above, Brisbane was in the same position as Melbourne was in mid-2007.
Click to enlarge
<a href="/images/stories/matchart2.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/matchart2thumb.gif"></a>
It has taken four years – last year’s flood did delay Brisbane’s upturn by about a year – for Brisbane to start showing signs of improvement.  It could take Melbourne this long too – at best two to three years – to recover.  History – as well as Mr Twain – supports our claim.
<img style="border-style: initial; border-color: initial;" src="/images/stories/matusikclock2.jpg">
There are several things that the development community can do to improve sales.
<ul>
<li>Make their projects look different.  Buyers tell us that they are all too generic.</li>
</ul>
<ul>
<li>Provide a lot more detail about future development in their project itself and in the area.  Detail is expected regarding the siting of homes and such things as outside entertainment areas, bedrooms and air-conditioning.  In a perfect world, developers would be best to sell built stock.</li>
</ul>
<ul>
<li>Don’t hide anything from the public, including full price lists and dwelling designs.  They know much more about the project and the competition than sales people give them credit for.</li>
</ul>
<ul>
<li>Implement a loyalty system.  Repeat customers should be treated as such.</li>
</ul>
<ul>
<li>Match sales staff (demographic, experience) and the décor, interiors and furnishings (the actual product design of course) to the demographic.  A 25-year-old single selling to a middle-aged couple doesn’t work too well.</li>
</ul>
<ul>
<li>Make much more of your brand and development pedigree.  Buyers want to know more about who you are.</li>
</ul>
<ul>
<li>Relax at the launch.  Don’t put too much pressure on potential buyers then – the time to close is much later in the sales process.</li>
</ul>
<ul>
<li>Follow up constantly and not just before settlement.  Buyers want to be informed.</li>
</ul>
On a final note – people buy something new because it should be less hassle than buying second-hand and fixing it up.  Developers need to ensure that the buying experience is hassle-free, too.
New developments meet today’s strict environmental compliances, which help save buyers money and also give them peace of mind when it comes to resale.
Click to enlarge
<a href="/images/stories/matchart3.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/matchart3thumb.gif"></a>
For investors, buying something new often provides a better return.  This is due to the attractive depreciation allowances that come with buying new over old – something that too few investors understand – and that new property, on average, has 15% to 20% more value in it than an older property in the same area.  Think about the true cost of a new kitchen, bathrooms, carpeting, painting, landscaping and again all the ESD stuff.
Want a copy of the presentation?  Well just click <a href="https://matusikmissive.files.wordpress.com/2012/02/matusik-udia-victoria-feb-2012-speaker-notes.pdf" target="_blank">here</a> to download.
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>.
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