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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Low inflation figures have given the Reserve Bank scope to cut interest rates when it meets on Tuesday but it might adopt a wait-and-see approach, says HSBC economist Paul Bloxham. 
Bloxham says it’s a close call because while HSBC expects to rate cuts in the first half of the year, “the issue is timing”. 
“Global financial conditions have stabilised recently, which may give the RBA more time to see the impact of earlier cuts. Also, many of the structural upside risks to medium-term inflation persist, such as weak productivity growth, so the RBA may want more evidence of easing unit labour costs before moving again. 
“So, while we think the RBA will need to cut further, cuts this month are not a done deal. What is clearer to us though is that the 100 basis points priced in by markets over the next year seems overdone, given the structural inflation issues Australia still faces,” he writes in his latest RBA Observer report. 
Putting forward the case for a February rate cut, Bloxham says inflation numbers for the fourth quarter were “low enough to give the RBA an open door to cut rates”. 
“The trimmed mean was in the middle of the band quarter-on-quarter and year-on-year, and at the bottom of the band in the second half of 2011,” writes Bloxham. 
“Base effects are likely to bring year-on-year inflation down further in the first quarter of 2012,” he adds. 
Bloxham also notes the slowdown in the economy, which has taken further pressure of inflation. 
“Employment is contracting, falling in December, and the unemployment rate is 5.2%, up from 4.9% in early 2011. Job advertisements have edged downward; a further reading for January is published on Monday, and anecdotal reports suggest it will weaken. 
“Growth is expected to ease in the first half of 2012 as Australia’s trading partners slow down and the looser labour market weakens household spending. 
“At the same time, financial conditions are tighter than they were late last year. The cost of bank funding has risen, due to the European financial crisis, putting downward pressure on bank net interest margins and upward pressure on effective interest rates. 
“The exchange rate has also been at very high levels in recent weeks, further dampening activity in parts of the economy. The fiscal setting is also tight. The government’s political imperative to achieve a budget surplus by 2012-13 is seeing public demand subtracting from the economy. 
“This leaves the RBA to respond to the easing labour market. These arguments are why we think the RBA will cut rates on Tuesday.”
 
 
 
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lschlesinger-FZcF9M3vE6

February rate cut likely but not certain: HSBC

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Westpac says expectations of lower mortgage growth and the need to remove duplicate back-office roles as part of phase two of its post-St George merger are the reasons for its decision to axe about 560 jobs.
Peter Hanlon, Westpac financial services executive, says the job cuts will mostly be in mortgage processing and head office roles.
“We don’t see in the near to medium term a pick-up in housing or business credit growth,” he said following the announcement.
Hanlon estimates about one-third of those axed will be transferred to other roles, with up to 400 staff made redundant.
The move to cut jobs has been slammed by the Finance Sector Union, which has urged the government to intervene and stop the cuts. 
“Westpac can afford to keep every single one of these workers in their jobs and continue to make a multi-billion-dollar profit,” says FSU secretary Leon Carter.
In an interview on ABC radio today, Westpac CEO Gail Kelly refused to rule out further job cuts and would also not say how much of an expected February rate cut the bank would pass on to borrowers.
Her comments on higher funding costs suggest borrowers should brace themselves for the banking not matching any RBA move.
“These are complex matters and we won’t foreshadow and decision ahead of the time,” Kelly said, adding that the linkage between interest rate decisions and the cash rate had weakened.
However, she said the actions of the European Central Bank (ECB) in December that injected significant liquidity into the banking system had taken “the cataclysmic risk of the eurozone collapsing off the table”.
“[The actions of the ECB] have underpinned the banking system and the eurozone overall,” Kelly said.
However, she said hopes voiced a year ago that funding costs would be on the decline and returning to more normal levels had not happened,
“The troubles in the Eurozone means they have remained elevated. If anything they are higher now then they were at any times during the entirety of GFC and its more expensive to raise deposits,” she said.
Kelly said the bank had to safeguard net interest margins on its loans or else face the risk of potentially reducing the level of credit provided and “potentially landing up in a credit crunch”.
“We’re into a very much more slowing growth world – you only have to look at Europe to see that we are into several more years of much slower growth.
“This changed world brings with it higher levels of funding costs and changing consumer patterns and as banks we do need to adjust.”
She also defended the jobs cuts and said they were part of plans to simplify banking systems.
“This is the largest announcement we are likely to make this year …you can expect us to have a lower number of employees at the end of the year than we had at the beginning,” she said.
Kelly pointed out the bank was adding new roles at the same time as sacking staff, adding about 200 staff to its Bank of Melbourne operations, 50 new roles in financial advice, 50 new roles in institutional banking and has recently recruited 83 graduates.
The Property Council of Australian office report forecasts 7,000 financial services jobs to go in 2012.
ANZ axed about 130 positions earlier this month while the Royal Bank of Scotland plans to cut 170 jobs in Australia.
 
 
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Westpac cuts jobs as mortgage demand falls and won’t commit to passing on rate cuts

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Claims by self-promotional US real estate analyst Jordan Wirsz that Australian house prices could fall by up to 60% over the next five years have been torn to shreds by Australian property market analysts.
Wirsz is bearish about global property but <a target="_blank" href="https://www.propertyobserver.com.au/residential/incredible-prediction-of-australian-property-bloodbath-excites-twitter/2012012053102">particurlarly bearish about Australian real estate</a> because of “artificially low interest rates, high loan-to-value lending practices, overinflated property prices, unrealistic vendor expectations and Australia's large number of second mortgages”.
"There have been corrections but they don’t hold up to the scale of what is coming,” he says.
Fairfax columnist and property market analyst Mark Armstrong says if what Wirsz is predicting is true in a few years’ time  a $1 million house in Sydney, currently let for about $700 per week, will be worth just $400,000.
“While this happens the Reserve Bank of Australia that currently has the cash rate set at 4.25%, a full 4% above the US, will sit back and watch.
“Further, the government with a public debt of about 20% of GDP compared to the US's almost 95% will watch as the single largest asset of most Australians goes down the gurgler. I think not,” says Armstrong.
Armstrong also points to the current conservative lending practices and robust supervision demanded by the IMF and Australian banks low exposure to non-conforming high-risk loans and the fact that the vast majority of loans are full recourse (as opposed to many in the US, where borrowers can just drop their keys in the letter box) as further evidence that such dramatic falls are entirely unlikely.
“Very broad-based comments like these fail to recognise the complex nature and differences between property markets, demographics and economic factors from country to country.
Hotspotting.com.au director Terry Ryder describes Wirsz alongside another US property bear Harry Dent as one of a number of US punters “seeking profile at the expense of Australian home owners”.
“Jordan who?, I hear you ask,” writes Ryder.
“Dent forecast a 50% drop. Wirsz (allegedly a self-made millionaire) went further, predicting a 60% decline. But he went further still – land values would fall 80% to 90%, Ryder says.
“Just pause a moment and contemplate what he is suggesting. A fall of 90% means a decline to almost no value at all. If a block of city suburban land is worth $200,000, a decline of 90% means it would be worth just $20,000. Given that planning charges per allotment are generally much higher than $20,000, this is just silly stuff.
“That didn’t prevent headlines in Australia such as ‘Bloodbath to hit real estate’,” says Ryder.
He has also been caught up in a stoush with well-known TV commentator and author Margaret Lomas on Sky Business.
Property Observer has not yet seen the debate, but believes it was heated.
Lomas tells Property Observer she kept challenging Wirsz on the facts and where he sources his information from and his only response was, “on the internet…”.
Writing following the debate, Wirsz writes “Well, that was fun debating on live national television with a clueless investor promoting her own agenda (funny cause that's what she accused me of!) time will tell who is right... :)”
“Pity he didn’t research me,” says Lomas. “He would have found out that far from being a ‘clueless investor’ as he puts it, I have been in this business longer than he has been alive, own 38 of my own properties, run a national company and have a long list of qualifications and credentials, many economics-based.”
Wirsz claims to have achieved over $500 million in sales and advised Fortune 500 CEOs about real estate investments.
He describes his life so far on his Facebook page as “a storybook tale of rags to riches, overcoming the ever-so-common challenging childhood, and working hard to attain his massive successes”.
Other descriptions appear plucked straight from Charles Dickens.
He describes himself <a target="_blank" href="https://www.prweb.com/releases/Jordan_Wirsz/Dallas/prweb3988434.htm">on PRWeb</a> (a press release distribution website) as “having come from a broken home and spending much of his childhood alone, even calling 4-1-1- up to 25 times a day just to hear another human's voice, has decided to take his challenges and turn them into a passion for feeding the world his secrets to his extraordinary success.”
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US doomsayer Jordan Wirsz's predicted 60% drop in Aussie house prices 'silly': Analysts

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The best property bets for Sydney property in 2012 would be most areas in the western suburbs, according to valuer Herron Todd White.
“This segment of the market should see steady capital growth and strong rental returns throughout the year,” the group has forecast.
“Best bets for 2012 would be most areas in the west at the lower to middle end of the market.
“We are seeing signs that small investors are continuing to return to the market in good numbers, looking to take advantage of strong rental returns in areas such as Mount Druitt.”
The valuer suggests new property investors had been “possibly spooked by the stock market fluctuations of late 2011”.
HTW says it is difficult to predict how things will progress as 2011 threw up plenty of challenges with the continuing resources boom counterbalancing poor economic global performance and some lack of business confidence.
“The challenge is trying to see through the macro and micro indicators and come up with a balanced view on how residential will perform this year.
“It seems that good local knowledge of each market’s different sectors is vital.
“The big picture view and blanket statements can prove all too general in a market like this current one.”
It noted The Hills acreage/prestige market appeared as though it would remain quite stagnant with negative growth a possibility through 2012, “so probably one to avoid”.
A major problem pinpointed for the Sydney market was how prospective purchasers react to the changes to the stamp duty exemption.
“This may price out first home buyers who fuel the market in the south west suburbs.”
It noted the upper range of the market had already stalled with very few high end properties selling in the last six months.
“The unemployment rate will also cause some effect,” the report notes.
Local agents in Western Sydney believe immigration is another possible reason for increase in property values, with areas surrounding Auburn and Parramatta remaining popular.
“With cheaper prices and a central location, foreign purchasers have kept the market strong and is predicted to continually grow in 2012,” HTW notes.
In Liverpool and Fairfield areas, the upper range had slowed, however, the properties under the median prices were selling quite well and are also expected to continue in 2012.
The Bankstown and Liverpool areas are envisaged to have “good buys” in 2012, with unit prices approximately $200,000 to $250,000, providing a good rental return of approximately $300-$340  to per week, which would represent a solid net yield.
The report notes the big influences looming for 2012 on eastern suburb property markets were largely dependent on the current economic climate in the US and Europe.
“As a result high end markets such as the eastern suburbs will be worst affected if the predicted white collar recession eventuates,” HTW notes.
“The coming year will still present opportunities in the lower to mid range Eastern Suburbs, as well as mid range dwellings in the Botany Bay, Leichhardt and Marrickville LGAs.”
The expectations in north-west Sydney were generally “pretty positive: with the residential market expected to remain fairly steady”.
The report noted the area was still growing at a fairly rapid rate with major land subdivisions and new estates in the Hills/Blacktown area (The Ponds, Rouse Hill, Ropes Crossing, Bunya Estate at Doonside) and Penrith (Jordan Springs, Waterside development at Cranebrook, Glenmore Park and Claremont Meadows).
In the southern suburbs the report noted the proposed Sharks residential/commercial development at Woolooware as one watch along with work on the light rail extension through the inner west, as another significant property price shaping event.
 
 
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jchancellor-FAypfDUnLy

Western suburbs best bets for Sydney investors in 2012: HTW

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AFG mortgage brokers arranged 4,736 home loans worth a combined $1.8 billion in January 2012, a 40% increase on January 2011, when brokers wrote 3,583 worth $1.3 billion. 
The aggregator says the January result marked a return to more normal trading levels after January 2011 was affected by the Queensland floods and other natural disasters. 
Not surprisingly, one of the biggest jumps in mortgage sales was recorded in Queensland, where brokers wrote 80.6% more mortgages in January 2012 than January 2011. 
The top performer was South Australian, where sales increased by 84.5% compared to a year ago. 
There were also significant uplifts in WA (+ 37.4%), Victoria (+25%) and NSW (+14.5%). 
In January WA also took over from NSW as the most popular state for first-home buyers, with almost one in five new mortgages (19.1%) in WA arranged for first-home buyers compared with 14% in NSW. 
NSW retained its position as the most popular state for property investors, with 40.2% of loans arranged for investment purposes, compared to 36.8% in Victoria, 34.9% in Queensland, 32.6% in Western Australia and 32.0% in South Australia. 
Major banks recovered some of the market share they lost in December, writing 79% of all mortgages in January, compared with 76% in December.  A year ago major banks wrote 81% of all AFG mortgages. 
Mark Hewitt, general manager of sales and operations, says: ‘While markets across the country have recovered from last year’s natural disasters, right now we have a strong sense that borrowers are playing wait and see on rates. 
“Will the RBA cut rates, and if so, how much of this will be passed on by lenders? 
“It seems that we are moving to a new paradigm where there is less and less linkage between the cash rate and mortgage rates. An RBA cash rate cut will not automatically translate into improved consumer confidence." 
The AFG Mortgage Index also shows that nearly one in five new borrowers (18.6%) opted for a fixed-rate home loan. This figure is close to the high water mark of 20.4% for fixed-rate products recorded last October.
 
 
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Mortgage sales up 40% in January year-on-year: AFG

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The <a href="https://www.propertyobserver.com.au/residential/capital-city-house-price-slide-slows-in-december-quarter-with-melbourne-worst-performer-abs/2012020153211">ABS house price data for December 2011</a> has just been released, and it shows that house prices fell 4.8% in nominal terms between December 2010 and December 2011. The <a target="_blank" href="https://smh.domain.com.au/real-estate-news/house-prices-may-have-bottomed-out-20120131-1qqs0">usual suspects</a> are already trying to see this as marking the bottom, while “<a target="_blank" href="https://www.smh.com.au/business/property/record-slump-in-house-prices-in-2011-20120201-1qsid">just the facts, ma’am</a>” reporting simply emphasises the scale of the downturn. A couple of media outlets have asked my views on the next calendar year, so here they are – along with some historical perspective on the house price bubble.
Figure 1 deflates the ABS series by the CPI and sets the real price index at 100 in mid-1986, when the ABS Data began. The peak was 261 (which means that real house prices were 2.6 times as high in 2010 as they were in 1986), the December 2011 value was 237, a fall of 9.3%. That’s in the ballpark of the figure I anticipated at the beginning of 2011 for the fall from the peak; over the calendar year of 2011, real house prices fell 7.7% (from 256 to 237), which is still in the range of 10% (see Figure 1; the vertical blue lines on this chart mark the beginning of four or five incarnations of the first-home owner’s scheme [its introduction was under Hawke in 1983; its last spin was the doubling and trebling of it by Rudd in 2008-10]).
<img src="/images/stories/keenfeb31.gif">
I expect this rate of decline to keep up for 2012, so I’d expect prices to be of up to 10% lower than they are now by the end of 2012, in inflation-adjusted terms.
The force driving prices down is the same one that drove them up. Houses are overwhelmingly bought with borrowed money, so keeping house prices where they are requires a constant supply of new mortgages at the same level (relative to GDP per household) as now; rising house prices require new mortgages to be growing compared with income; and house prices fall if mortgages grow more slowly than income. That we’re now in a period of mortgage debt falling relative to income is finally obvious; only the first-home vendor’s boost delayed this happening.
<img src="/images/stories/keenfeb32.gif">
The key indicator of the direction in which house prices are likely to move is the Mortgage Accelerator, which is the change in the change in mortgage debt (scaled by GDP). The logic is that since the rate of change of mortgages determines the demand for houses – and hence the price level – the acceleration of mortgages determines the change in the demand for housing – and hence the change in the price level.
Mortgage debt is now decelerating almost as much as it was before the introduction of the first-home vendor’s boost – the rate of acceleration is now about minus 1.5% of GDP, versus -2% before the Rudd government meddled with house prices in its attempt to sidestep the GFC. The annual rate of decline of house prices is also of much the same rate as it was before that intervention: they are now falling at a rate of about 8% per annum in real terms. So a fall of that magnitude – somewhere between 6% and 10% over 2012 – is quite likely.
<img src="/images/stories/keenfeb33.gif">
The government might well attempt to intervene again as it has in the past, but I don’t think it will, and I doubt that intervention would work anyway.
The 2008 squeeze of the first-home vendor’s sauce bottle was very successful, which makes another squeeze much less likely to work: potential buyers from 2011 and beyond were already dragged forward into 2009-10 by the last squeeze, and house prices rose so much – by more than 18% in real terms from the early 2009 trough to the peak early 2010 peak – that another scheme would be hard pressed to entice new buyers in.
The NSW state government did its bit for the bubble by abolishing stamp duty for first-home buyers in 2011, but that’s so expensive for the bottom line of state budgets that I don’t think they’d contemplate a repeat.
So overall, the likely outcome is a fall of 6% 10% in real terms over calendar year 2012.
Steve Keen is Associate Professor of Economics and Finance at the University of Western Sydney and author of   <a href="https://debunkingeconomics.com/" target="_blank">Debunking Economics</a>  and the blog <a style="text-decoration: none; color: #287bce; background-color: transparent; margin-top: 3px; margin-right: 0px; margin-bottom: 3px; margin-left: 0px; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; line-height: 14px; padding: 0px;" href="https://www.debtdeflation.com/blogs/" class="=article" target="_blank">Debtwatch</a>.
 
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stevekeen-hGRrVP8sYD

House prices will be 10% lower by the end of the year: Steve Keen

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Mirvac, the developer of the inner-Sydney Harold Park project, has taken the unusual step of commenting on the campaign of opposition to the proposed development.
It has accused the local Balmain Greens MP Jamie Parker of fuelling opposition by “misinformation”.
Mirvac’s response came ahead of this weekend’s public meeting that FLAG Harold Park has asked Parker to chair as part of the campaign “to stop the overdevelopment” of what was previously the Harold Park paceway.
The City of Sydney’s Central Sydney Planning Committee will shortly decide on the first of the development applications for the development. Parker has suggested there are significant community concerns about bulk, scale and density, the lack of affordable housing, and 700 additional vehicle movements per hour in peak periods that would affect surrounding suburbs including Glebe, Forest Lodge and Annandale.
Mirvac had submitted applications for Harold Park that were compliant with the site-specific planning controls and reflected the City of Sydney’s vision for the inner city, says Mirvac development chief John Carfi.
“Despite being provided facts, Mr Parker has continually communicated inaccurate information to the public about items relating to the proposed development.
“This has caused unnecessary community concern and undermines the detailed and thorough rezoning process completed by the City of Sydney,” Carfi says.
“This debate is being fuelled by misinformation.
“The impacts of extra residents in this location were modelled, and considered by the City of Sydney in formulating the site specific planning controls which were subsequently approved by Central Sydney Planning Committee and Council, then legislated by the NSW state government.
“In relation to traffic, Mirvac took the extra precaution of commissioning further traffic studies by specialist transport engineers before submitting its development applications.
“The RTA was also involved at every stage of the process.
Carfi says “Mr Parker’s demands for further studies were an attempt to delay the project and pressure consent authorities into reducing the size of the development which has already been set as part of the rezoning legislation.”
He says as one of the last remaining substantial inner-city sites suitable for residential development, Harold Park represents a very important role in the vision envisaged by the planning authorities.
“Sydney is a growing city with an urgent need for additional housing. In fact so urgent, that the state government is taking steps to fast track the rezoning of more land on the outer fringe of Sydney.
“But at the same time there is an equal need for housing in the inner-city, close to jobs and importantly public transport. Harold Park is in the enviable position of being close to the Jubilee Light Rail station, a range of bus services and cycle-ways.
“Not only that, it is an easy 2.5-kilometre walk to the Sydney CBD”.
“If Sydney is to be a liveable city, sustainable residential development is needed in the inner-city where people are not reliant on private cars. Harold Park meets that need,” Carfi says.
He says there will be a dedication of 38,000 square metres of land, more than 35% of the site area, to the City of Sydney for public open space. There will also be an $8.5 million payment to the City of Sydney to embellish the public open space.
 
 
 
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Mirvac accuses Greens MP of 'misinformation' over Harold Park campaign

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McGrath boss John McGrath suggests choosing the best agent to sell your property is the second most important decision in real estate, after choosing the right property to buy.
“From my experience many people are too casual in their approach to this crucial decision," he says.
“They ring a couple of agents and choose the one who gives them the highest valuation or has the lowest commission."
He says prospective vendors should create a series of questions to ask agents:
<ul>
<li>What do you think my property is worth? How have you come up with that figure?</li>
<li> How does my house present? What can I do to maximise the sale price?</li>
<li>What’s the best method for selling my property? Auction or private treaty? Why?</li>
<li>What’s an approximate time frame?</li>
<li>What’s it going to cost me?</li>
<li>Why should I hire you?</li>
<li>How long have you been working in this area?</li>
<li>What comparable homes have you sold in this area lately?</li>
<li>What’s the state of the market?</li>
<li>How long is it taking you to sell well priced listings at the moment?</li>
<li>What marketing strategy do you suggest? Why?</li>
<li>How much will be spent on marketing? Why?</li>
<li>How much traffic does your website get?</li>
<li>What will you do to introduce buyers to my property?</li>
<li>Do you have a list of recent vendors I can speak to?</li>
</ul>
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The 15 questions to ask when hiring a real estate agent to sell your property: John McGrath

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Amanda Sun bought three houses worth a total of $3 million on the Gold Coast after visiting just once as a tourist.
Sun is Chinese, 33 years old and owns a small trading firm, according to a recent news story. She is typical of the Chinese buyers who have rescued many Australian developers, agents and vendors from deeper price cuts and longer selling times in recent years.
Less than 12 months ago, the Chinese government got a shock when the results of a comprehensive survey of high-net-worth Chinese like Sun were released. The two organizations behind the survey are very respectable, Bain &amp; Co and China Merchants’ Bank, so the results can’t be written off as a fluke.
The survey revealed what many Australian agents had already been feeling: rich Chinese, for various reasons, want to get out of China, and they believe buying property in Australia and other countries enables their escape.
Not just a few rich Chinese want out.
A full 57% of rich Chinese have contemplated emigration. About 20% have actually completed immigration procedures in countries like Australia or expect to do so soon.
These percentages account for huge numbers of individuals, because China has the fourth-largest number of high-net-worth individuals in the world. Each year the cohort grows by nearly 10%.
Many of those rich Chinese emigrants are coming to Australia. China sent more immigrants to Australia in 2010 than any other country, including the UK and New Zealand.
Even as they sink roots in Australia, rich Chinese like Sun are also keeping a presence in China. For example, published research shows that about 80% plan to keep their Chinese passports.
It is common for the wife and child to live abroad, while the husband spends most of his time in China. Chinese émigrés might still run businesses in China.
They are usually moving abroad for their children. They believe that Western schools and universities are better than their Chinese counterparts, and that living overseas gives their children an advantage.
Foreign residency could also be useful in case China goes through policy shifts, like massive new wealth taxes, or social unrest. China is a rapidly changing country. Riots, strikes and protests recently doubled over the last five years to 180,000.
Emigration and educating children are just two of the reasons wealthy Chinese are buying property in Australia. The third is for investment.
As Sun puts it, Australia’s “legal system is better”. She plans to migrate to Australia to live in one of her new homes. She will find renters for the other two.
Australian property is an attractive investment in its own right, with <a href="https://www.propertyobserver.com.au/residential/house-prices-will-be-55-higher-in-a-decade-christopher-joye/2011082551288">credible economists predicting</a> prices will be 55% higher in 10 years.
It also represents a diversification of risk. Instead of only investing in property in China, they put some of their money overseas so that they don’t lose everything if the Chinese property market goes down.
Buyers like Sun have made a real impact on the Australian property market. As one agent told the Sydney Morning Herald about Chinese buyers, “They're the only ones that have got the big dollars at the moment”.
The Financial Times has reported that Chinese buyers account for 20% of all purchases in Sydney. This may be an overestimate, but it reflects the trend. They tend to seek out property that has water views or is close to the ocean or major universities and CBDs.
Many developers depend on Chinese buyers for their off-the-plan unit sales. Chinese parents often buy Australian apartments for their children to live in while studying.
At the Stamford Residences, a 30-level tower at The Rocks in Sydney, one buyer recently bought a $2 million apartment to serve as this sort of student housing. In total, mainland Chinese buyers snapped up about six of the building’s 122 apartments.
In Melbourne, developer Morry Schwartz of PanUrban says, "Chinese buyers, both local and from Asia, account for about 60% of enquiries and purchases at Pan Urban's developments. That's up substantially from a few years ago.”
Meriton general manager Peter Spira told the Australian Financial Review that Chinese buyers enabled the company to keep up production rates in Melbourne and Sydney through the global financial crisis.
"We build between 1,300 to 1,500 new apartments each year in NSW and south-east Queensland," Spira says.
Schwartz reckons, "You are not doing a good job at selling real estate in Australia today if you're not marketing to the Chinese buyer”.
Chinese buyers also make their mark on the higher end of the market. Just this month, a luxury penthouse at Lumiere Residences in the Sydney CBD was reported sold for $8.1 million to an Asian, possibly Chinese, investor.
But, while new developments and luxury properties grab the headlines, the overwhelming interest I see is from Chinese buyers enquiring about affordable second-hand property in good locations.
Andrew Taylor is  the founder and CEO of sales and marketing of<a href="https://www.juwai.com/" target="_blank"> Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world. 
 
 
 
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How to understand Chinese property buyers

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Housing construction is set to remain under pressure for the first few months of 2012, but might start picking up again in late 2012, according to the latest Business Outlook report from Deloitte Access Economics.
The consulting group is forecasting private dwelling investment to increase by a modest 3.5% in 2012 (compared with 1.4% drop in 2011) but then accelerate to 12.7% in 2013 before returning to moderate growth of 3.3% in 2013.
“The pace of housing construction is going nowhere in a hurry. Indeed, that trend has been evident in leading indicators such as approvals and loans for a while now,” the report says.
According to Deloitte Access Economics, growth in housing construction is being curtailed by the mortgage rate increases of late 2010, current housing price trends (high but falling) and “lingering difficulties for developers seeking finance for high-rise apartment blocks”.
“That’s why the latest data (September quarter dwelling unit commencements) show new housing starts falling further, and why there’s no surprise in the increasing anecdotal reports of home builders laying off staff. 
“And given that today’s housing starts are the result of decisions made some months ago – when concerns were at their greatest, and there was still a good chance of further interest rate hikes – there’s no immediate upturn in sight,” the report says. 
However, there are signs of a revival driven by a rise in lending commitments for housing, now at a four-year high, as well as successive rate cuts, which have “whetted appetites”. 
Furthermore, the report says that while the gap between demand for housing and its supply “does not imply a surge in construction tomorrow, it does add important upward pressure”.
Examining the wider economic environment, the sub-title of the report “Eurogeddon” makes it clear what will be the tipping point for 2012.
“Europe is the key to global growth: its mismanaged crisis means the euro could falter and banks could go bust, sending shockwaves around the world,” the report says.
“Yet it‘s marginally more likely the eurozone muddles through, with sticky tape holding the euro together and ECB funding to banks keeping the market wolf from the sovereign debt door,” it says.
Deloitte Access Economics is forecasting the eurozone to fall into recession in 2012 with negative growth of 0.4% followed by marginal growth of 1.8%, 2.3% and 1.9% over the next three years.
In contrast, Australia’s economic outlook is far healthier, with the economy forecast to expand by 3.6% in 2012, 3.5% in 2013 and 3.4% in 2014.
The report identifies two possible paths for the Australian economy over the next few years depending on what happens globally:
“If the world muddles through, then Australia will grow faster than you think it will: surging resource construction will underwrite a lot of growth, as will a further rebound in coal output from the early 2011 floods. That will combine with better news in retail and home building (thanks to Reserve Bank rate cuts) to keep growth relatively rapid in 2012, though it may lose some steam in 2013 as the rebound in coal output runs its course. Moreover, that acceleration in growth would occur despite well-publicised negatives: the hit to consumer and business confidence from the horror headlines in Europe, the winding back of federal government stimulus, and continuing pain for many firms from the Australian dollars stellar strength. 
“However, if Europe blows, Australia’s outlook tanks” and “Eurogeddon” becomes a possibility. 
“Resource sector construction would still surge, leaving us among the fastest growing economies in the world. Yet that would be little consolation: growth would still slow and unemployment rise as confidence saps spending by firms and families here at home, the weak world economy cuts commodity prices (and so national income), and money becomes ‘too tight to mention’, as European bank failures would mean a credit crunch even if the RBA cut hard and fast,” says Deloitte Access Economics.
 
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