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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Once you have carefully chosen your commercial property investment, and negotiated a great deal with the purchase, you then need to turn your mind to ensuring you extract the most from it during your time of ownership.
Therefore, you either need to know how to properly manage the property yourself or you engage some professional help to handle that for you.
And in the current litigious climate, there is no way you can possibly keep abreast of all the regulatory requirements relating to property ownership.
So your next question becomes: "How do I know whether a particular property manager is up to the task?"
To help you, here are the key areas where your property manager needs to be really well versed.
1. The market and the marketplace
<ul>
<li>Rental levels in your property's market</li>
<li>The balance of supply and demand in your market</li>
<li>Up-to-date records of properties, owners, tenants and service providers</li>
</ul>
2. Taxation (especially GST and capital gains tax)
<ul>
<li>Taxation advice in relation to repairs/replacement</li>
<li>Income management</li>
<li>Budget forecasting</li>
<li>Depreciation</li>
<li>Insurance</li>
</ul>
3. The laws governing ownership and leasing of property
<ul>
<li>Landlord and tenant legislation</li>
<li>Subdivision legislation</li>
<li>Essential service regulations</li>
<li>Lease preparation</li>
<li>Local Government Act</li>
<li>Rights of property owners</li>
<li>Trade Practices Act</li>
<li>Anti-discrimination Act</li>
</ul>
4. Trust accounting
<ul>
<li>Acts governing real estate agency practice</li>
<li>Basic bookkeeping principles</li>
<li>Cashflow management</li>
<li>Budget forecasting</li>
</ul>
5. Various legislative requirements
<ul>
<li>Health and safety matters</li>
<li>Essential services</li>
<li>Town planning</li>
<li>Building Code of <country-region><place>Australia</place></country-region>
</li>
<li>Fire regulations</li>
</ul>
6. Building and construction
<ul>
<li>Property maintenance</li>
<li>Building methods</li>
<li>Cost control</li>
<li>Alternative materials</li>
<li>Design and decoration</li>
<li>Market requirements</li>
<li>Optimum layouts</li>
</ul>
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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chrislang-EQKojcgJPV

What a commercial property manager needs to know

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It seems that just a couple of months ago we were reading headlines outlining the possibilities of a US-style crash in Australian real estate.  It was the most common question I got asked throughout the course of last year – “should I wait to buy – is the market going to drop further?” I never have to field such questions during the boom phase of a property cycle.  During these periods, despite cautioning the opposite, buyers are too busy following the herd mentality to take a step back and read the signs.  Now, less than two months after the barrage of media gloom, we’re under a new influx of subtle conditioning with headlines such as <a href="https://bit.ly/xbKQUN" target="_blank">‘Don’t bet on a property crash’</a> , <a href="https://bit.ly/Ax5RZD" target="_blank">‘Property crash just a myth’</a> and ‘Sydney streaks ahead of national market’ working their magic.
It’s totally understandable why moguls such as Gina Rinehart would see investment in Fairfax – even at a marginal level – as a valuable and strategic move. It doesn’t take Einstein’s mentality to work out we’re all – to some extent – puppets of the media.  As the author Nicholas Johnson once said about television (and equally relevant to other forms of publishing), “All television is educational television.  The question is:  what is it teaching?”  It’s a loaded query and one of which we should take note, because for most people, the only education they get on market movements is via mainstream broadcasts.  Furthermore, the stories are staged involve us emotionally, using personal examples and photos to illustrate the bias of the editor’s slant – stories that affect us on a very human level.
I have contact with a wide range of people involved in the real estate industry and often get asked to provide case studies for media stories.  Throughout 2011 the requests were for individuals undergoing rental stress or those experiencing negative equity.  So far this year, the demands have been specifically for those who have made considerable money from property investment – usually over a short period of time. I guess “normal” stories of success through long-term investment simply don’t sell in profitable numbers to warrant report.  It will be interesting to see how the year progresses in this regard, and I’m sure many investors will be left with little concept of who or what to believe.
Even more confusing – <a href="https://www.propertyobserver.com.au/residential/december-quarter-housing-data-roundup-four-sets-of-statistics-give-divergent-outlooks/2012020153215" target="_blank">the stats used in each feature are based on methods that differ considerably</a> depending on the index provider used.  Due to space requirements, these methods generally remain unexplained in the main body of text. As an example, the REIA uses the simplest method of correlation – picking out the middle number of all recorded sales results published on a quarterly basis.  Under this system, unit sales include townhouses, apartments, villa units, and so forth – with no specification of the differences between each property type. Any in-depth analysis of our market should not be based on this information alone considering how broad-based the results are.  For example, variability of sales volumes and the physical nature of stock available are two of many components that can skew the data.
Others attempt to employ more accurate assessments by breaking results down to reflect individual property attributes (two-bedroom, three-bedroom and so forth.)  This system is known as a “hedonic index”, and RPdata-Rismark is at the forefront of the research.  Then there’s the “repeat sale” methodology, which limits samples to properties previously sold.
Others only use detached dwellings thereby ignoring anything “attached”, and the preliminary “real-time data” each provider releases is only as good as the number and accuracy of results recorded from individual sales agents.  More confusing still, certain index providers assess capital city medians based on grouped suburb data – taking the 50% percentile from the correlated information to produce numbers that can differ quite remarkably in the short term to other research databases. To go into a detailed explanation of how each set of figures is collected would be an essay in itself.
Regardless, whichever is employed, it’s somewhat dangerous for investors to base their knowledge on one set of figures alone without a full understanding of the various instruments involved.  Having said this, to get a feel for overall “trends” in the market, median movements can be useful (hence why the RBA take close stock of the information).  When affordability is constrained during a downward phase of the property cycle, a higher volume of lower end sales will be reflected in the data and this can even be referenced when employing negotiation tactics.  However, they’re certainly not an accurate indication of an individual properties value.  For example, it’s possible for the overall median to drop while the price of an individual property rises.  A well-educated buyer will understand the fundamentals attributing to this quandary and override the waves of confusion – however, many will be left with <a href="https://www.propertyobserver.com.au/residential/divergent-housing-data-raises-more-questions-than-answers/2012020153216" target="_blank">more question marks than answers</a>.
Every buyer likes to feel he or she knows the market, and opinions on the prediction of long-term price movements often take a political air.  For those entering the market for the first time, or wondering whether to diversify their funds into property, this conflicting information produces a thought bubble of question marks – especially considering it’s foolish and all but impossible to make blanket assumptions on the Australian real estate market without a thorough understanding of the fragmented elements affecting each state and suburb.
Furthermore, Australia’s median movements are generally so marginal, they don’t deserve the sensationalist headlines they create.  However, I don’t underestimate the importance of the data in scrutiny of overall economic health, especially when other indicators weigh in to show the trend could be reflective of more serious concerns.
 
<hr class="system-pagebreak">
 
Now we’ve moved passed Australia Day, market activity is about to begin once again. Weekend clearance rates will be published, poured over, and analysed, and investment advice will be spruiked from every corner.  Affordability has certainly eased, with last year’s interest rate drops being passed on by the banks, but caution still holds strong in the investment sector.  Those states benefitting from the two-speed economy have already turned the wheel on our downward trend, with Perth and areas of Sydney showing tightening vacancy rates and a marked reduction in stock.  For both states the bottom of the property cycle may have already passed, however in others – Victoria, for example – opportunity is still ripe (for the time being).
Melbourne is undergoing some challenges. The recent blows to the manufacturing industry with the downgrade of Toyota’s Altona-based factory and the challenges they’ll face when the carbon tax is implemented – including potential rises in the state’s unemployment, are all factors that will affect Victoria’s economy and general affordability and put a stop to any bullish ideas of a boom recovery.  As a consequence, any upturns in the market are likely to be perceptible later in year – and depending on a number of possibilities, may even push into 2013.  However, having said this, reported numbers attending open for inspections and buyer enquiry has certainly increased state wide – and with stock dropping and the population still rising, it’s inevitable that disparity between supply and demand in some suburbs will place upward pressure on prices.
The global picture doesn’t need comment at this stage – only to say it increases insecurity and will bear significant influence on the RBA’s decisions to further reduce interest rates – maybe more so than domestic matters.  Therefore, even though nationally we’ve seen a rise in the number of home loans, we’ve yet to see how many will be drawn down.
Indicators across all capitals show real estate around and below the state median is likely to be the strongest performer, with top-end sales still struggling.  This has been reflected throughout 2011 with a greater population push towards the more affordable outer-suburban markets and unit sales topping detached dwellings in the overall median data.
However, for vendors who have weathered through a complete seven- to 10-year property cycle, profitability in all states cannot be disputed – they’ve come out winning regardless of our current conditions. Even in Brisbane – which has taken the largest hit in its median value over 2011 (tumbling some 7%) –  when analysed over a 10-year property cycle, compound capital growth still shows rises in excess of 7% per annum.  The news won’t make headlines, but once again the long-term stability of wise property investment is demonstrated.
Back to current the current malaise and over all confusion, and it’s in an atmosphere like this that the greatest care should be taken when purchasing.  Only quality real estate is going perform well as we progress through 2012, and without plenty of due diligence, purchasers could find themselves making expensive errors.  However, if buyers can pull themselves away from the headlines and seek out more qualified opinions based on their own individual circumstance, opportunities to win in a gloomy atmosphere are in abundance.
Catherine Cashmore is senior buyer advocate, property manager and market analyst for Elite Buyer Advocates. She is also Channel Ten’s property expert on The Circle.  With extensive experience in all matters regarding real estate, <a href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a> purchases and negotiates more than $100 million worth of property each year for its clients.
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catherinecashmore-6LXia3pPQj

Look beyond the headlines to invest wisely in property

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<img src="/images/stories/qiii.jpg">
Singaporean investors have spent more than $11 million buying apartments off the plan in Fraser’s new residential project in Perth. 
The development known as QIII is part of Frasers’ Queens Riverside Hotel + Residences development, which will offer 408 luxury apartments in three buildings and a 236-room all-suites hotel operated under the Frasers Hospitality brand. 
<img src="/images/stories/qiii2.jpg">
Frasers ran a series of seminars in Singapore in November promoting the project to local buyers and attracted “exceptional interest” as well as sales of $11.1 million, according to CEO Guy Pahor. 
The 26-storey apartment building will feature 265 apartments, of which 125 have been sold. 
Many of the Singaporean buyers purchased with the intention of upgrading from their existing Perth property as the time draws closer to completion of QIII.
Apartments are selling for about $730,000, with $1.4 million the top price achieved to date. It was for a three-bedroom apartment on the 21st floor. 
<img src="/images/stories/qiii3.jpg">
QIII will be the second stage of the development, which is being built for Frasers by Diploma Construction. 
The first stage, the $107.5 million construction of Fraser Suites Perth plus common basements and podium for the Queens Riverside precinct, is now underway.
For more on Asian investors in Australian real estate, download our free eBook <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets">Foreign Investment in Australia's Property Markets.</a>
For more on buying off the plan, donwload our free eBook <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-10-tips-for-investing-off-the-plan">10 Tips for Investing Off the Plan</a>.
 
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lschlesinger-FZcF9M3vE6

Investors buying off the plan in Perth's QIII

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With the Treasury expected to collect about $3.8 billion from stamp duty this year, nationwide home buyers are in agreement on the call to streamline the greatly disputed tax. State-based stamp duties are widely recognised as a drain on our nation’s productivity and an inefficient and unstable source of revenue for each state.
Currently, home buyers are perplexed by the lack of uniformity in stamp duty rates across the country. On a $400,000 home, first-home buyers in Victoria, South Australia and Tasmania are forking out more than $12,000 in charges while those in New South Wales, Queensland, Western Australia and the Northern Territory pay nothing at all. First-home buyers in the $700,000-plus bracket pay as little as $8,130 in NT compared with a hefty $34,860 charge for a standard purchase in NT. On the extreme end of the scale Victorian’s are forking out $41,530 for a property in this price range.
<img src="/images/stories/bennett1.jpg">
<img src="/images/stories/bennett2.gif">
To further complicate matters, we are seeing state governments pull back their concessions for first-home buyers. In Queensland, the government has just recently cut its $10,000 first-home buyers’ boost, the Northern Territory ended its $10,000 grant on new properties on New Year’s Eve last year, and South Australia is completely revoking its discount for buyers of established homes mid-2012.
Evidently, state governments are using the tax as a lever to adjust revenue levels. In late October 2011 the government cut back stamp duty payment deadlines from 90 to 30 days after settlement in a bid to bring forward revenue and help meet budget surplus targets for the year.
Further to this, given the level of activity in the housing sector has declined, removing concessions for first-home buyers is also likely to be an attempt to claw back revenue. If this is the case, it highlights the state’s dependence on a volatile and uncertain revenue base.
Stamp duty creates a barrier for those wanting to buy or sell property in a number of ways. The inconsistency of the tax across the country discriminates against those who move where the jobs are. It also discourages those who need to downsize, predominantly the elderly, which in turn affects first-home buyers looking to enter the market.
In the short term it is clear that the tax cannot simply be removed. However, in the interim, a range of reforms to make the current regime fairer could be introduced, including: the removal of GST on stamp duty (tax on tax) in non-residential transactions; limiting higher stamp duty rates for investors; and, most importantly, the indexation of duty rates so the proportion of tax paid does not increase.
We at the Real Estate Institute of Australia are calling for the removal of state-based property taxes and have been actively lobbying to key government bodies for increased harmonisation of the tax across the nation. As a result of our presentation at the 2011 October tax forum, Queensland and New South Wales governments have agreed to examine the harmonisation of payroll tax and possibly other taxes (stamp duty) and present a state tax reform plan to the federal government by the end of 2012.
Pamela Bennett is president of the <a href="https://www.reia.com.au/" target="_blank">Real Estate Institute of Australia.</a>
 
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pbennett-Zvm5u8EFas

Stamp duty hurting our national productivity

<html><body>
<table border="1" cellspacing="0" cellpadding="0" width="370"><tbody>
<tr>
<td width="69" nowrap valign="bottom">
Postcode
</td>
<td width="111" nowrap valign="bottom">
Suburb
</td>
<td width="189" nowrap valign="bottom">
Median weekly asking rent
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3078
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">FAIRFIELD</a>
</td>
<td width="189" nowrap valign="bottom">
$295
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3185
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">RIPPONLEA</a>
</td>
<td width="189" nowrap valign="bottom">
$340
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3182
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">ST KILDA WEST</a>
</td>
<td width="189" nowrap valign="bottom">
$360
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3183
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">BALACLAVA</a>
</td>
<td width="189" nowrap valign="bottom">
$360
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3206
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">ALBERT PARK</a>
</td>
<td width="189" nowrap valign="bottom">
$377.50
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3031
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">KENSINGTON</a>
</td>
<td width="189" nowrap valign="bottom">
$380
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3182
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">ST KILDA</a>
</td>
<td width="189" nowrap valign="bottom">
$380
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3143
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">ARMADALE</a>
</td>
<td width="189" nowrap valign="bottom">
$380
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3068
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">CLIFTON HILL</a>
</td>
<td width="189" nowrap valign="bottom">
$382.50
</td>
</tr>
<tr>
<td width="69" nowrap valign="bottom">
3181
</td>
<td width="111" nowrap valign="bottom">
<a target="_blank" href="/news">PRAHRAN</a>
</td>
<td width="189" nowrap valign="bottom">
$385
</td>
</tr>
</tbody></table>
Source: RP Data
 
 
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cknowlton-QnEa6ntUYP

Top 10 cheapest inner-Melbourne suburbs for unit rentals: RP Data

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Gerald Foley, managing director of National Mortgage Brokers, has backed Aussie Home Loans and Mortgage Choice’s requirement that their brokers be members of an industry body of their choosing. 
John Symond’s Aussie Home Loans and Mortgage Choice, the two most well-known mortgage broking brands, are currently awaiting a ruling from the ACCC about whether they can continue to <a target="_blank" href="/news">make membership of the Mortgage and Finance Association of Australia (MFAA) mandatory</a> rather than let brokers choose the MFAA or rival industry body the Finance Brokers Association of Australia (FBAA).
The FBAA claims such mandatory requirements are anti-competitive. 
“The current debate in the market seems to be confused around whether a retail aggregator, such as Mortgage Choice or Aussie, has the right to require their members to be members of an association,” Foley says. 
“To me it seems a reasonable position for a branded business to insist that all its members are following the same set of rules.” 
National Mortgage Brokers, which has about 300 brokers, is a member of both the MFAA and the FBAA, and Foley says it sees value in being a member of an industry association. 
“As far as our brokers are concerned, we encourage all our brokers to also be a member of one of the associations, however it is not mandatory. As most lenders, at least at this stage, still require association membership then most brokers have no option but to join,” he says. 
“I think as we all get more comfortable with licensing more lenders will start to relax their association membership requirements and rely on the aggregator and licence holder’s ability to manage their networks.” 
 
 
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Mandatory mortgage broker association membership reasonable: National Mortgage Brokers

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The only thing that prevented Australian house prices from crashing during the 2008 GFC was the first-home owners’ boost, says Deakin University’s Philip Soos, who believes the sector is now operating like a Ponzi scheme.
Soos, a researcher in Deakin University’s School of International and Political Studies, believes the Australia’s residential property market has resembled the Ponzi stage of financing for the last 11 years.
The Ponzi finance stage is the third and final stage of US sub-prime mortgage theorist and economist Hyman Minsky’s “state capitalist economies cyclically generated crises”.
In the first hedge finance stage “income flows from an asset is sufficient to pay down both principal and interest on the debt financing asset purchases. Prices are based upon fundamentals”.
In the second speculative finance stage “income flows cover only interest, not principal, requiring debt to be continually rolled over. Asset owners may experience financial stress, but it is not widespread, and fundamentals are in kept largely in check”.
During the Ponzi finance stage “income flows cover neither principal nor interest charges. Owners are completely reliant on escalating sale prices (capital gains) to make a profit and meet the cost of the debt. Prices are completely delinked from fundamentals at this stage, resulting in the dreaded bubble.”
“The market would have collapsed during the GFC in 2008 were it not for another first-home owners’ boost re-inflating asset prices to a new, higher peak,” Soos says in an article for academic commentary site <a target="_blank" href="https://theconversation.edu.au/housing-bubble-trouble-separating-facts-from-fiction-5007?utm_medium=email&amp;utm_campaign=Latest+from+The+Conversation+for+January+27+2012&amp;utm_content=Latest+from+The+Conversation+for+January+27+2012+CID_3a05cc55871c06651a4fc3437c781d5a&amp;utm_source=campaign_monitor&amp;utm_term=Housing+bubble+trouble+separating+facts+from+fiction">The Conversation</a>.
“Two types of return tempt house buyers: owning a property valued by the market at a higher price than it was purchased for (capital gain), and increases in the rental income (yield). Property owners hope that they will make a substantial capital gain when they sell, and that rental income can overtake costs over the long run.
“Data from the ATO tells an interesting story. On aggregate, net real rental income has resulted in continuing losses starting at $966 million in 2000, and peaking at $8.8 billion in 2008. Rental income has not exceeded interest costs since 2000, let alone met the costs of maintenance, rates, agent fees and property tax.
“No rational investor knowingly purchases an asset that yields a negative return. Investors are sacrificing cash flow to build assets and realise eventual capital gain,” he says.
According to Soos, the tipping point for the mark will come when “the household sector is so overloaded with debt there exist no more ‘greater fools’ willing to commit to a lifetime of debt serfdom to purchase property”.
“With few buyers and many sellers, prices stagnate then rapidly fall as assets are unloaded en masse onto the market. With demand falling in the housing sector, coupled to an inevitable increase in unemployment, a vicious deflationary spiral occurs. Economy activity grinds to a halt.”
Soos says other arguments put forward by housing bubble deniers don’t stack up including the argument that “restrictive government regulations (RGR) limit the supply of land and timely dwelling construction through zoning controls, development, planning and building laws, driving up housing prices”. Soos says the major difficulty with this argument is that government regulations can only affect rent prices and thus the market-efficient price for land.  “If rent and land prices diverge, however, this argument falls flat – as is the present case. Housing prices have experienced a far greater run-up than rents since 1996. Further, markets would have already priced the supply-side distortions into the cost of housing long before the bubble began. There is no change in RGR that could explain the increase in housing prices from 1996, skyrocketing in 2001,” he says.
He also says low inflation and low interest rates that began in the late 1990s cannot fully explain the jump in house prices. “Even as far back as 2004, the RBA noted that the decrease in inflation and interest rates could only explain a doubling of household debt relative to incomes, and probably less. Household debt has more than quadrupled over this period,” he says. “If this argument were credible, the 1960s should have prompted an even greater household debt ratio as rates were the lowest on record throughout this decade. This did not occur.”
 
 
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Australian housing a Ponzi scheme and the housing price bubble will burst: Academic

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Sydney CBD super-prime net face retail rents fell 6.2% in the December quarter to an indicative $7,560 per square metre, but landlords have a very low vacancy rate of 0.6%.
Regional shopping centre rents rose by about 3.2% in part due to council approval delays for new retail space.
Prime strip retail is typically showing a 5.5% vacancy rate, with rents down 1.2% in the December quarter.
Oxford Street and Double Bay were the weakest, with CBRE saying Double Bay gross face rents fell 10% in the December quarter.
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Double Bay retail rents tumble 10%, but Sydney super-prime not immune either

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General investors and superannuation contributors did not do well over 2011.
The Australian share market lost about 15% of its value, and SuperRatings reports that even conservative “balanced” super funds went backwards by 1.9%.
House values in Australia’s capital cities dropped by around 3% to 4% during 2011.
So what should people be investing in this year?
I suggest a serious look at investing in property and renting it out to tenants.
There are several reasons for this outlook, including soft house prices, strong rental demand and the prospect of solid total returns.
You ideally want to buy the property at a time when real estate is in the downturn phase of its cycle, you want to rent it out when rental demand is high, and these two factors should come together to produce a total return that not only beats inflation but also compares favourably with alternative investments.
One of the first rules of buying property is that you must not overpay. This is important for two reasons: firstly, you don’t want your income from the property being overshadowed by high mortgage repayments; and secondly, capital growth in the property is as important as the monthly cashflow from rental income, and you will enjoy greater capital gains when you buy the property for a lower price.
With property prices having been flat or going backwards for two years, it seems like a good time to buy.
Property can also be looked at in terms of affordability, and affordability is attractive for investors right now. Disposable household incomes grew about 6% in the year to September 2011 while dwelling values declined by a total of 3.3% since May 2010, according to RP Data-Rismark research.
Rismark says disposable incomes per household have risen about 15% further than capital city dwelling values since the end of 2003.
When many people buy investment properties, they simply want to buy the cheapest place they can find and rent it for the highest rent they can charge. I advise potential landlords to hold out for a property that is in a sought-after area, close to shops, transport and schools.
There is no point having a rental property that you can afford when no one wants to pay you to live in it.
Then you have to look at rental demand because when you buy an investment property, you are going into business as a landlord.
On this score, there’s some good news for property investors. Weekly rents across the capital cities rose 1% over the December 2011 quarter and are 6.3% higher than at the same time last year.
This suggests rental demand is exceeding supply, which is good for landlords. Anecdotally, you hear stories of people queuing to see the good properties and offering to pay more rent than advertised to secure the property.
While this is a good result financially, it’s also a benefit in terms of tenant management. One of the biggest headaches for a landlord is a bad tenant, but when demand is strong you don’t have to take the first applicant. You can pick the tenant who is best suited to your property and who has the best record.
If you feel you can buy cheaply in the current property market and you can take advantage of the strong rental demand, then you have to think about your total return.
The total gross return enjoyed by property investors around Australia has averaged 1% per cent over 2011, much better than the 15% losses experienced in Aussie shares.
The average capital city apartment is now offering a gross rental return of 5.1%.
This is looking like a strong scenario for investors wanting to buy property, and if the current financial market pricing for further interest rate cuts comes to pass, the outlook for housing in 2012 looks positive for not only owner-occupiers, but landlords too.
As a final hint to first time property investors, I would urge you to take professional advice before entering into this: consult a solicitor or accountant about your tax position as a landlord, use an insurance broker to get the right insurances, and spend some time finding the right property management company.
It’s a good time to be a landlord, but only if you do it properly.
Mark Bouris is executive chairman of <a target="_blank" href="https://www.ybr.com.au/">Yellow Brick Road</a>, a financial services company offering home loans, financial planning, accounting and tax, and insurance.
This article originally appeared in News Ltd. papers.
 
 
 
 
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Now is a good time to become a landlord, but you must do it properly: Mark Bouris

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ANZ says a bump up in job advertisements in January means the RBA can hold off cutting interest rates until March.
The latest figures show total job advertisements were 0.7% higher in January 2012 than in January 2011 – the largest rise in job advertising since February 2010.
“Against this local backdrop and that of a persistently weak (but not worsening) global economy, we have forecast that the RBA will need to cut interest rates by 25 basis points in the first quarter of 2012, most probably in March,” says ANZ head of Australian Economics and Property Research Ivan Colhoun.
“Inflation is well contained and the economy can afford to grow a little faster. Beyond March, if we see further confirmation that job ads have stabilised, this will likely be important for monetary policy expectations.
“In particular, we will be less likely to see further interest rate cuts and the market will need to remove some of the aggressive easing profile built into rate curves,” he says.
The job figures had an immediate impact on interest rate betting odds, with TAB odds of a rate cut increasing from $1.20 to $1.26 – still lower than odds it offering of Australia winning the one-day series against India and Sri Lanka, currently at $1.45.
The TAB is paying $1.20 on a 0.25% rate cut but $1.45 on the Australians winning the tri-nations tournament, despite yesterday’s 65-run thumping of the Indians.
There are very long odds ($151) on the RBA pushing up the cash rate by 0.25%.
Sportingbet.com.au is paying $1.22 on a 0.25% rate cut and $3.50 on rates staying the same.
 
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