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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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<img src="/images/stories/omrad2.gif">
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<a title="Click to enlarge" rel="shadowbox" href="/images/stories/omrad3.gif"><img src="/images/stories/omrad3thumb.gif"></a>
Source: Property Council of Australia
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lschlesinger-FZcF9M3vE6

Adelaide commercial office market outlook 1990-2015: PCA

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<img src="/images/stories/omrperth1.gif">
<img src="/images/stories/omrperth2.gif">
Click to enlarge
<a href="/images/stories/omrperth3.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/omrperth3thumb.gif"></a>
Source: Property Council of Australia
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cknowlton-QnEa6ntUYP

Perth commercial office market outlook 1990-2015: PCA

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<img src="/images/stories/omrcan1.gif">
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Click to enlarge
<a href="/images/stories/omrcan3.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/omrcan3thumb.gif"></a>
Source: Property Council of Australia
 
 
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Canberra commercial office market outlook 1990-2015: PCA

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There was a notable pick-up in Queensland building approvals in December, bucking a weaker-than-expected national decline of 1%, according to the latest ABS figures.
Coinciding with improved take-up of the<a target="_blank" href="https://www.propertyobserver.com.au/residential/queensland-government-to-extend-building-boost-until-april/2012011253029"> state’s $10,000 building boost </a>(the scheme has been extended to April), Queensland building approvals increased by 24.6% in December on a seasonally adjusted basis, with Tasmania (15.6%) and Western Australia (6.0%) the other states to record increases.
The weakest state was Victoria (-16.7%) followed by South Australia (-9.1%) and New South Wales (-5.0%).
Approvals for private sector houses rose 0.2% in December, with rises in Western Australia (6.3%) and Queensland (4.7%), while South Australia (-8.3%), New South Wales (-3.7%) and Victoria (-3.4%) fell. The value of total building approved increased 1.9% in December following a decrease of 0.5% in November. The value of residential building increased 1% while non-residential building rose 3.3%.
Westpac says headline approvals “were a touch weaker than expected” but in line with the consensus and its own forecasts once revisions are made.
The bank expects national approvals to be revised up to a 2% rise in the month. “Approvals were down 1% in December, but November's 8.4% bounce was marked up to 10.1% for the month,” the bank says. “The context is important. Approvals were very volatile in the months before November, with sharp falls in Sep (–18.7%mth) and Oct (–10.1%mth).  Despite the upwardly revised November bounce, approvals are still down nearly a quarter on December 2010. “However there are signs that the rate of decline is moderating,” it says.
Predictably, the Housing Industry Association called for more government stimulus following the decline in December.
<img src="/images/stories/hiafeb2.gif"> 
Source: HIA
“Building approvals for both detached houses and ‘other dwellings’ are at very weak levels and now is the time to further lower interest rates and implement fiscal stimulus measures,” says HIA chief economist Harley Dale. 
“Building approvals in late 2011 imply that housing starts will fall to a level below that experienced during the depth of the GFC, which would clearly be a very unhealthy outcome,” Dale says. 
“The new home building sector is a key indicator of the health of the domestic economy and has a significant multiplier effect in terms of output and employment.”
“New housing activity doesn’t need to fall further, that situation can be averted. Such aversion requires further interest rate cuts starting next week, full pass through of those rate cuts by the banks, and government measures to both stimulate new home building activity and reignite action to address the high and inefficient tax base which applies to new housing.” 
 
 
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Queensland building approvals up 25%, but national approvals fall: ABS

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The Brisbane home featured in the latest Selling Houses Australia 2012 series debut makeover still awaits new owners.
The <a target="_blank" href="https://www.lifestyle.com.au/property/selling-houses-australia-series-5-yeronga-supplier-list.aspx">four-bedroom, two-bathroom 1960-built bungalow</a> remains listed for sale at $625,000.
The vendors are happy in the meantime to take $600 a week in rent.
Listed through Liz Baillie at The Wilson Team RE/MAX Colonial Riverside, the Yeronga house went to auction last September<a target="_blank" href="https://www.propertyobserver.com.au/renovating/audiences-sold-on-andrew-winter-s-selling-houses-australia-with-record-ratings/2012020253229"> after its $60,000 makeover by Andrew Winter’s team</a>.
The vendors, Paul and Gloria, had previously had it listed with $570,000-plus hopes before its renovation, which was needed following the January 2011 flood. This was reduced to $529,000 hopes shortly before Winter’s arrival last August.
It last traded at $328,000 in 2001.
For advice an expert commentary on lessons to learn from property reality TV, download our free eBook <a href="http://propertyobserver.com.au/ebooks/free-ebook-lights-camera-auction-lessons-from-the-property-reality-television-shows" target="_blank">Lights, Camera, Auction!</a>
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jchancellor-FAypfDUnLy

Brisbane house featured in Selling Houses 2012 premiere still awaiting buyer

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Andrew Winter’s Selling Homes Australia achieved record ratings in its 2012 series debut.
The show’s average audience was about 115,000 – who rather than watch the cricket tuned into the program on Foxtel Lifestyle. Viewers peaked at 152,000.
It seems assured to remain the top-rating non-sports program on subscription television.
The 2012 series kicked off with a<a href="https://www.propertyobserver.com.au/renovating/brisbane-house-featured-in-selling-houses-2012-premiere-still-awaiting-buyer/2012020253230" target="_blank"> flood house makeover in the Brisbane suburb of Yeronga</a>.
The previous best average audience score was when it showed a Frankston extreme mess makeover, which had a 114,000 average audience rating when it aired midway through its fourth series last year.
Winter’s profile is steadily more known across Australia following a roadshow late last year sponsored by News Ltd local papers, where he gave seminars sponsored by RP Data.
<img src="/images/stories/sellinghousesoz2.jpg">
Last year’s debut program on a North Rocks makeover was watched by an average 91,000 people, which was its highest season debut since its premiere in 2008 at 72,000 average audience with an Austinmer makeover, based on OzTam data.
There were 68,000 average viewers per program after its 2008 launch.
Viewers dipped to 49,000 in season two, then jumped back to 62,000 in season three.
There were typically 108,000 viewers in its fourth series last year when Winter accepted Astra Awards for the Viewers’ Favourite Personality (second year running) and for the third year running, the Viewers’ Favourite Lifestyle Program.
Selling Houses began on Britain's Channel 4 amid the property boom in 2002 when Winter, then a London real estate agent, was plucked from obscurity to present the program.
He rivalled Property Ladder's Sarah Beeny and Location, Location, Location's Phil Spencer until his migration, with his wife Caroline and their three daughters, to the Gold Coast in Australia.
Winter, who is represented by the Harry M. Miller Group, has dispensed advice this year suggesting with another year comes a new property outlook.
He suggests important New Year resolutions for buyers and seller in the market for 2012 should include:
1. I will not place my house on the market unless I seriously want to sell and understand that the price I am finally offered may not be what I hoped for.
2. If I am selling, I will not leave it all to the agent. I resolve to get involved, read the text in advertisements and online, check the pictures, questions all aspects of the marketing campaign and listen to the agent’s advice and give them a chance to explain.
3. I will not underestimate the power of first impressions when selling. I will not leave the toilet seat up, beds will be made, windows will be shining, the whole place will feel clean, and no sign of pets other than pictures of them.
4. As a buyer, I will acknowledge that in reality my requirements will change during my search and I promise to be realistic with my expectations.
5. I promised to do my research and know there’s no such thing as “guaranteed capital growth”.
6. If I see a home I really like I will be prepared to pay market value and not get upset when the sellers, who are normal, sane beings, refuse my mad, crazy and insulting low offer.  I will try to secure the home at the right price, but make sure any low offers are based on facts and market conditions or because the seller needs to sell quick. If I do make an offer under those circumstances, I resolve to act quickly.
 
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Audiences sold on Andrew Winter's Selling Houses Australia, with record ratings

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Home owners and investors should not read too much gloom into yesterday’s ABS capital city housing data, according to JP Morgan economist Ben Jarman.
<a href="https://www.propertyobserver.com.au/residential/capital-city-house-price-slide-slows-in-december-quarter-with-melbourne-worst-performer-abs/2012020153211" target="_blank">December quarter ABS figures</a> showed capital city house prices declined by 1% to be down almost 5% for the year.
However, Jarman says it is “unlikely that dwelling prices generally have been as weak as that” because the figures only represent the more expensive detached house market and does not factor in apartments or townhouses.
End-of-year <a href="https://www.propertyobserver.com.au/residential/dwelling-prices-down-0.2-in-december-2011-with-melbourne-and-perth-hit-hardest-rp-data-rismark/2012013153184">RP Data-Rismark figures</a> confirm that capital city unit prices held up far better than houses in 2011 registering a drop of 1.5% while capital city house prices fell by 4.3%.
“Due to its narrow composition, [the ABS] result overstates the weakness of the market, while timing issues also obscure stabilisation in the price data shown toward year-end,” Jarman says.
According to Jarman, the lower end of the price spectrum drove the strength of the housing market over 2009, “while the top end of town has borne a disproportionate share of the weakness through the hangover of mid-2010 through 2011.
“Given that the coverage of the House Price Index is arguably biased towards these more expensive properties (detached houses, which tend to be larger properties, in capital cities), it is therefore likely to overstate the weakness of the broader market,” he says.
Another reason to be optimistic about house prices, Jarman says, is the fact that the ABS data collection process is “biased toward results early in the quarter, meaning it gives a somewhat dated snapshot, and also is prone to substantial revisions (as occurred in yesterday’s estimates for prior quarters).
“If anything, the monthly price data look to have improved around year-end, a natural by-product of the affordability metrics returning to trend after a year of gradual price declines, and the protracted on-hold period from the RBA, which was followed by an explicit 50 basis points of monetary support at year-end.”
Furthermore, he says data on housing finance, credit, and reports from mortgage brokers suggest that, “outside of building activity – which has been and we expect will continue to be very depressed – housing is nearing the end of its glide path”.
“We have characterized the housing market as being in a pretty boring space through 2011: certainly not strong, but similarly not disconcertingly weak. We expect that description to hold true again this year, with prices to move approximately sideways through 2012,” Jarman says.
Also commenting on the ABS housing figures, CBA economist James McIntyre says the bank is not surprised that rate cuts thus far have not resulted in rises in house prices.
“Monetary policy takes time. Gains in real house prices have tended to lag shifts in interest rates by around 9 months. Recent rate cuts could see real house price gains in the late second half of 2012,” McIntyre says.
However, McIntyre warns that “nothing is pre-ordained” and says “a continuation of current weak confidence in the economic, particularly global, backdrop could mute any upward momentum, despite healthy gains in wages, rents and household incomes”.
“On the other hand, weak dwelling comments, combined with a potential pickup in population growth from a turnaround in migrant inflows, are two factors supportive of price gains.
“For now, we are comfortable with the view that easing in policy is likely to see the decline in real house prices abate, rather than spark a new appreciation.”
 
 
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ABS housing figures overly gloomy: JP Morgan

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Demand for fixed-rate mortgages appears to have peaked, with Mortgage Choice recording a drop in the proportion of these loans written in January, the first decline since May 2011.
Mortgage Choice customer data shows fixed-rate products accounted for 21% of all new home loan approvals in January 2012, a fall from 24% in December 2011.
The mortgage broking franchise expects fixed-rate demand to fall further in February, should lenders pass on all or some of an RBA rate cut next week.
The likelihood of banks passing on a full RBA rate cut appears to be growing more remote by the day, with the Australian Bankers Association today putting out a statement attempting to explain how banks source their funding and highlighting that more than 20% of their funds comes from overseas.
“Australia’s banks have to raise an important proportion of their funding from overseas,” says Steven Münchenberg, chief executive of the ABA.
“The deep crisis in Europe means the cost of borrowing money in those international markets has risen to levels last seen during the global financial crisis… Because overseas prices are so high, there is greater demand for funds from depositors and investors in Australia.  This has driven up the price of this money as well.
“While the RBA has been cutting rates, banks have continued to pay high interest rates to depositors, benefitting Australian savers, but adding to the cost of bank funding,” he says.
The number of lenders cutting fixed rates has fallen sharply, with Westpac brands St George and Bank of Melbourne the last big lenders to trim fixed rates, doing so just before Christmas.
Despite the drop, <a target="_blank" href="/news">demand for fixed-rate mortgage</a> still stands well above both the six-month average of 19% and the 12-month average of 16%.
Demand for ongoing discount variable-rate mortgages (where the rate is discounted over the life of the loan in exchange for higher fees) jumped from 41% to 46% in January, an all-time Mortgage Choice high.
<img src="/images/stories/mcfeb2.gif">
“Our latest loan approval figures suggest borrowers taking out new loans at the start of this year were less concerned with locking in their loan’s interest rate than those who took out a new loan in late 2011,” says Mortgage Choice spokeswoman Belinda Williamson. 
“Interest rate cuts and generous discounting on variable rate loans could be the key drivers behind borrowers giving fixed rate loans the cold shoulder. The margin between fixed and variable has narrowed, with most variable rates now sitting only slightly higher than fixed rates,” she adds. 
According to Williamson, if the RBA cuts rates on February 7 and lenders pass on most of this rate cut, “some variable rates could very well fall below fixed rates”. 
“If this occurs, next month’s loan approval data may show a bigger shift towards variable rate loans.” 
Demand for basic variable loans fall slightly to 14% of all approvals in January, from 15% in December while standard variable loan demand dropped marginally to 15% from 16%. 
Line-of-credit loan popularity held steady at 3% and interest in introductory rate loans remained below 1%.
 
 
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Banks talk of withholding RBA cuts while fixed-rate mortgage demand falls

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The Brisbane and Sydney CBDs have recorded the greatest addition of new office stock over the past six months, well above 20-year supply averages, but their outlooks are vastly different, according to Property Council of Australia’s latest office market report.
Click to enlarge
<a href="/images/stories/pca1large.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/pca1.gif"></a>
Source: PCA
While the Brisbane office market is well placed to benefit from an influx of mining and resource-linked companies seeking office space, Sydney’s vacancy rate could increase above its current six-year high should predictions of about 7,000 banking job cuts this year prove accurate.
Over the six months to December 2011, Sydney vacancy rate increased from 9.3% to 9.6%, bucking a national decline from 9% to 7.9%.
The Sydney CBD office market, which now has nearly 5 million square metres of office space, managed a net absorption rate of just 8,000 square metres over the six-month period, just a fraction of the 20-year historical average of more than 31,000 square metres.
Sydney office vacancy rate
<img style="border-style: initial; border-color: initial;" src="/images/stories/omrsyd2.gif"> 
Source: PCA
In comparison, the Brisbane CBD’s vacancy rate decreased from 7.4% to 6.2%, the lowest since January 2009 despite increasing supply over the six-month period at nearly double the national average.
This was mainly due to Brisbane achieving net absorption of 54,032 square metres over the six-month period, the highest in five years and more than four times the 20-year average. In 2012, an additional 111,000 square metres of office space will enter the Brisbane market in 2012.
Brisbane office vacancy rate
<img style="border-style: initial; border-color: initial;" src="/images/stories/omrbris2.gif">
CBRE executive director of global research and consulting Kevin Stanley described the Sydney result as the “biggest disappointment” in the report, noting “little growth in occupied office space despite Sydney being the largest CBD in the country”.
“While the expansion in occupied space was positive, it was very weak and the vacancy rate has increased slightly to be 9.6%,” Stanley says.
“Concerns about the global economic and financial outlook have led business to be very cautious about committing to more office space in Sydney, where the share of companies in the finance and insurance industries is the highest in Australia (about 25% of all CBD employment).
“With global uncertainty likely to continue through 2012, we don’t expect the Sydney market to expand strongly again in the year ahead.  But we do hold out hope that when the European financial mess is sorted, global confidence will return and Sydney will expand strongly once again. The initiatives of the new state government will also eventually lead to a more active State economy.”
Knight Frank national director for office leasing in NSW Andy Collins says the marginal increase in Sydney’s vacancy rate was to be expected, “given relatively weak tenant demand experienced over the period”.
“Landlords are actively competing for tenants within the 'single-floor market', where effective growth during 2012 will be subdued,” Collins says.
“Vacancy in the premium-grade market segment has jumped markedly, which is probably due to the inclusion of 1 Bligh Street and 85 Castlereagh Street. Despite this, moderate growth in premium-grade effective rental levels can be expected during 2012, as pockets of tenant demand focus on high quality space”.
Like Stanley, Collins believes the Sydney market recovery will be “signalled by stability in the global equities markets and sustained growth in local business confidence”.
Analysts expect the Brisbane market to continue to perform strongly over 2012 should large leasing deals continue to be signed.
David Prosser, state director for office services at CBRE, says Brisbane numbers are consistent with expectations in both the Brisbane CBD and fringe markets.
“In order for Brisbane to sustain a continued improvement in market conditions, it is critical the large leasing deals currently in negotiation at the top end of town are concluded in a timely manner. This will help consolidate the vast improvement in sentiment we experienced in the second half of 2011,” Prosser says.
“Supply and demand is quite simple to evaluate over the next three years, with almost no new supply additions limiting any danger of a major upswing in vacancy.
“Brisbane is a very stable market for the forseeable future and can comfortably withstand a reduction in net absorption should economic conditions substantially worsen or the mining boom fall off a cliff,”
“Some tenants are seeking to renegotiate a renewal early with their current landlords should they have a 2014 lease expiry as it is expected market conditions will significantly favour landlords by this time,” he says.
The overall result – vacancies declining from 9% to 7.9% – was heralded by the Property Council of Australia, which said the Australian office market has “shrugged off gloom about the wider economy recording a decrease in vacancy to its lowest level in three years”
Overall net absorption, the most reliable indicator of business space demand, was 20% higher than the historical norm at around 240,000 square metres
Over the six month period of the survey, supply was less than 200,000 square metres, about one-third below the long-term average
“Despite the global gloom, negative business and consumer sentiment, the halting recovery from natural disasters and a tetchy political environment, the demand for space increased and vacancies fell,” says Property Council chief executive Peter Verwer.
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Boom in office construction leaves Brisbane well placed but Sydney oversupplied: PCA

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Jewel – the Gold Coast’s most ambitious property development to be given the nod – is searching for a prestigious hotel operator for the $950 million three-tower project.
A short-list of operators is shrouded in mystery, but the preferred operator should be known by March.
<img src="/images/stories/jewel1.jpg">
 
Although the Gold Coast is well supplied with luxury hotels, it is yet to attract the ultra-luxe brands such as Aman, Peninsula and Shangri-La hotels.
Gold Coast developer RDG, which is backed by the Chinese property giant Ridong Group, has moved into gear to get the plan underway.
“We have the DA approved and are currently negotiating some of the finer points with the council. Our main focus now is to secure a hotel operator,” says RDG chief executive Steven Haggart.
Jewel will be on the corner of Wharf and Old Burleigh roads, Surfers Paradise.
It will have a six-star hotel with all of the attendant restaurants, bars, pools, gyms and all of the shopping expected of such an operation. There will also be two residential towers, one of of 35 levels and one of 45 levels.
<img src="/images/stories/jewel2.jpg">
It will also have a spa, beach club, ballroom and a two-level recording studio, which was inspired by the Setai Hotel in South Beach, Miami, where Lenny Kravitz has branded the property.
According to Haggart, contracts for off-the-plan apartment sales will be ready by November this year.
“We want to be able to take the apartments to market by the end of this year,” he says.
For such a premium plan, the apartments are modestly priced, starting at about $800,000 for a two-bedroom unit.
“Jewel will be like an island with its own beachfront and without being surrounded by KFCs. We are pricing it realistically for the local and international markets and providing excellent quality,” says Haggart.
About half of the units are tipped to be sold offshore while 30% are marked for interstate ownership and the remaining 20% for local Queenslanders.
RDG expects to announce the builder for the project later this year, with demolition tipped to start in March 2013 and completion slated for summer 2015-16.
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