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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Aussie entrepreneur Dick Smith has promised to do all he can to devalue the electronics brand that still bears his name if Woolworths sells the business to foreign owners.
Woolworths has said it will close more than 100 stores in the chain and look to offer consumers electronic products through its own stores and discount brand Big W following years of underperformance.
Smith, who is also a "Buy Australian" campaigner, says there will be a “real problem if Woolworths do sell it to a foreign-owned company”.
"I'll rubbish them the whole time. They wouldn't want to pay much,” he told Fairfax media.
As a “proud Australian” Smith is opposed to foreign ownership of Australian brands.
"I would just point out all the time that this is further destruction of Australia,” he says.
Smith says he understands why Woolworths wants to sell
“I think they're doing a sensible thing and they've owned Dick Smith for 30 years and made a fortune out of it, but once the growth is gone, which I think it has in that field, I can understand them selling it."
 
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lschlesinger-FZcF9M3vE6

Dick Smith promises to undermine Woolworths if it sells his brand to foreign owners

<html><body>
<table style="width: 351px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="101" nowrap valign="bottom">
Postcode
</td>
<td width="114" nowrap valign="bottom">
Suburb
</td>
<td width="136" nowrap valign="bottom">
Median house price
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4005
</td>
<td width="114" nowrap valign="bottom">
NEW FARM
</td>
<td width="136" nowrap valign="bottom">
$1,250,000
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4006
</td>
<td width="114" nowrap valign="bottom">
NEWSTEAD
</td>
<td width="136" nowrap valign="bottom">
$1,167,750
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4000
</td>
<td width="114" nowrap valign="bottom">
SPRING HILL
</td>
<td width="136" nowrap valign="bottom">
$865,000
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4101
</td>
<td width="114" nowrap valign="bottom">
SOUTH BRISBANE
</td>
<td width="136" nowrap valign="bottom">
$820,000
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4064
</td>
<td width="114" nowrap valign="bottom">
PADDINGTON
</td>
<td width="136" nowrap valign="bottom">
$780,000
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4101
</td>
<td width="114" nowrap valign="bottom">
HIGHGATE HILL
</td>
<td width="136" nowrap valign="bottom">
$780,000
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4169
</td>
<td width="114" nowrap valign="bottom">
KANGAROO POINT
</td>
<td width="136" nowrap valign="bottom">
$750,000
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4006
</td>
<td width="114" nowrap valign="bottom">
HERSTON
</td>
<td width="136" nowrap valign="bottom">
$727,500
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4102
</td>
<td width="114" nowrap valign="bottom">
DUTTON PARK
</td>
<td width="136" nowrap valign="bottom">
$727,500
</td>
</tr>
<tr>
<td width="101" nowrap valign="bottom">
4101
</td>
<td width="114" nowrap valign="bottom">
WEST END
</td>
<td width="136" nowrap valign="bottom">
$695,000
</td>
</tr>
</tbody></table>
Source: RP Data
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cknowlton-QnEa6ntUYP

Top 10 most expensive Brisbane suburbs for houses

po-LsXgBTHBmX

Perth sales volume up 23% on this time last year: REIWA

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Woolworths has signalled that it will sell off the troubled Dick Smith chain following a structural review of the business, also announcing that it will close up to 100 stores over the next two years.
The announcement comes after an analysts' report from CSLR that predicted the company would close over 100 stores in the chain.
According to a statement this morning, Woolworths said that its consumer electronics chain will remain important for Woolworths through its Big W chain and its multichannel offer.
"A strategic review, announced in November 2011, concluded that Woolworths' main strengths are primarily in larger format, multichannel, high volume retail segments with market-leading positions," the company said in a statement.
"The future of the Dick Smith business, which is profitable, experiencing positive sales growth and has a strong brand position, could be better realised through new ownership."
The review found that investment and management attention given to Dick Smith "has been disproportionate relative to its position within the Woolworths' group".
With the company now focused on increasing activity in core trading divisions, the company agrees separating the model from the company is the best option.
"A divestment of Dick Smith will enable the Woolworths group to focus more investment on serving customers in its core business with a strong multichannel offer, backed with market leading fulfilment systems and an effective store network," chief executive Grant O'Brien said in a statement.
Staff affected by the closures will be moved around in the Woolworths group, the company said.
Recently CSLA analysts David Thomas and Richard Barwick <a target="_blank" href="https://www.propertyobserver.com.au/retail/analysts-predict-dick-smith-to-close-190-stores-as-pressure-weighs-on-retail/2012012353112">suggested Woolworths close 190 Dick Smith stores.</a>
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
 
 
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pmcstafford-pr9eMARWoN

Woolworths to sell struggling Dick Smith chain and close 100 stores

<html><body>
Mortgage lending remains in the doldrums, with the latest RBA figures showing only a 0.4% increase in housing credit provided during December on a seasonally adjusted basis. 
The December result matched the 0.4% increase in housing credit provided in November. 
For the calendar year, mortgage lending is up 5.4% compared with annual growth of 7.2% recorded in December 2010.
This is the lowest growth since records began in 1977. The previous lowest annualised growth for a calendar year was 7.2% recorded in December 1982.
Owner-occupier lending increased by 0.4% in December to be up 5.7% for the year, while loans to property investors increased by 0.3% to be up 4.8% for the year. 
On an annualised basis, mortgage lending declined every month of 2011. 
Economist and former Gillard government advisor Stephen Koukoulas tweeted: “Housing credit growth slumps to new 34 year low (since records were kept dating back to 1977)... the disappointing news continues.” 
Mortgage lending growth in 2011 (monthly and annual growth in %)
 
<table width="223" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="101">
 
Jan-2011
</td>
<td valign="bottom" nowrap width="59">
0.6
</td>
<td valign="bottom" nowrap width="63">
7.2
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Feb-2011
</td>
<td valign="bottom" nowrap width="59">
0.5
</td>
<td valign="bottom" nowrap width="63">
6.9
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Mar-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
6.5
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Apr-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
6.4
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
May-2011
</td>
<td valign="bottom" nowrap width="59">
0.5
</td>
<td valign="bottom" nowrap width="63">
6.2
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Jun-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
6.1
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Jul-2011
</td>
<td valign="bottom" nowrap width="59">
0.5
</td>
<td valign="bottom" nowrap width="63">
6.0
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Aug-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
5.9
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Sep-2011
</td>
<td valign="bottom" nowrap width="59">
0.5
</td>
<td valign="bottom" nowrap width="63">
5.8
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Oct-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
5.7
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Nov-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
5.6
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="101">
Dec-2011
</td>
<td valign="bottom" nowrap width="59">
0.4
</td>
<td valign="bottom" nowrap width="63">
5.4
</td>
</tr>
</tbody></table>
Source: RBA
Mortgage lending has not grown by more than 1% per month since June 2007, when it increased by 1.3%.
Since then mortgage lending growth has varied between 0.4% and 0.8% per month.
Business lending rose by 0.3% over December to be up 1.4% for the year while personal credit declined by 0.1% over December to down 1% for the year.
Total credit provided to the private sector by financial intermediaries rose by 0.3% over December 2011 to be up 3.5% for the year.
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Mortgage lending growth fell to 34-year low in 2011: RBA

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Capital city dwelling prices fell 0.2% in December on a seasonally adjusted basis, with Melbourne dwelling values down 0.5% and Perth values down 1.6%, according to the latest RP Data- Rismark Home Value Index.
The small national drop in dwelling values in December follows an upwardly revised 0.4% rise in dwelling values in November (preliminary data showed a 0.1% increase).
Over the 2011 calendar year, capital city dwelling prices are down 3.6% while regional values are down 2.9%.
For the December 2011 quarter Melbourne dwelling prices were down 1.4% while Perth values were down 2.1%, making the WA capital the weakest capital city market.
There are now two reports suggesting Melbourne dwelling prices are continuing to decline, <a href="https://www.propertyobserver.com.au/residential/mixed-messages-in-melbourne-s-data-as-house-prices-increase-slightly-apm/2012012553140" target="_blank">with one suggesting they are increasing</a>.
Sydney housing has been the nation’s best performer, with dwelling values up 0.4% in December and by 0.7% over the quarter.
<img src="/images/stories/rpjan31.gif">
Melbourne has the weakest rental market, with gross rental yields of 4% for houses and 4.3% for units.
Darwin is returning property investors the strongest rental yields – 5.6% for houses and 6% for units.
Rismark director Christopher Joye expects the Melbourne and Perth figures to be cast in “a more positive light” when they are revised in February.
According to Joye, preliminary estimates for December and January can be difficult to interpret due to lower sales volumes and tardiness in some city valuer-generals’ offices in transferring transaction information over the holiday season.
“It just so happens that these cities’ valuer-generals are probably the worst offenders when it comes to the timely transmission of data,” Joye says.
“What makes the Melbourne and Perth numbers especially suspect is that they come on the back of solid seasonally adjusted gains in November, which have been reconfirmed with RP Data-Rismark’s latest index analysis.
Previous house price data has sent out mixed messages about where Melbourne house prices may be heading.
Last week, Australian Property Monitors (APM) surprised most pundits by reporting that Melbourne house prices increased 1.1% over the December 2011 quarter to a median of $538,000, the best result for all capital cities and the first quarterly rise since December 2010.
End-of-year figures put out Residex in mid-January show that <a href="https://www.propertyobserver.com.au/residential/melbourne-leads-nationwide-drop-in-house-prices-in-second-half-of-2011-residex/2012011753062">Melbourne house prices fell sharply in the second half of 2011</a> to be down 3.28% annually having recorded positive annual growth of 1.58% by mid-2011.
According to Residex, Perth house prices declined by 3.76% for the year, having been down 2.21% for the year six months ago.
Raw RP Data- Rismark  results (not taking into account seasonal factors) show capital city dwelling prices down 1.2% over December with Perth values down 1.9% and Melbourne values down 1.7%. According to the Austalian Bureau of Statistics (ABS) seasonally adjusted figures provide a more accurate month-on-month comparison.
"Seasonal adjustment allows for and removes the regular, reoccurring influences that could distort the short term view of what is happening," says the ABS.
 
 
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Dwelling prices down 0.2% in December 2011, with Melbourne and Perth hit hardest: RP Data-Rismark

<html><body>
Financial adviser and breakfast TV presenter David Koch stands firmly behind his assessment that the Sunshine and Gold coasts are “catastrophes” and says investors should not trust the views of local estate agents and journalists.
Koch has hit back after local newspapers and estate agents told him to do his homework before making such remarks about these markets.
Both the <a target="_blank" href="https://www.propertyobserver.com.au/queensland/sunshine-coast-mayor-slams-kochie-for-catastrophic-warning-to-property-investors/2012012353114">Sunshine Coast mayor and the head of the local real estate institute</a> say Koch is wrong about their market, pointing to a recent turnaround in building approvals and reeling off a string of famous residents as evidence.
Writing on his blog, Kochie.com.au, he acknowledges that he and his wife Libby have “upset Gold Coast and Sunshine Coast real estate agents” but says they has done the necessary research and the numbers stack up.
“The local real estate agents took to the Sunshine Coast Daily and Gold Coast Bulletin to ‘correct us’ with some stern comments about our view… They told me I should do a little more homework before making statements like this,” Koch says.
“Well let me assure you I had already done my homework and have the necessary fodder to back up my statements,” he says He says the following market facts support his view:
“Gold Coast house prices are down 15.1% from their peak in March 2010, falling from $568,000 to $482m500.
“Home units also peaked in March 2010 at $400,000, and have since fallen 15% to $340,000 in the December 2011 quarter
“On the Sunshine Coast house prices are down 13.9 % from their peak in December 2009 falling from $505,000 to $435,000
“Home units peaked in June 2010 at $367,500 and have dropped 16% to $309,000 at December 2011.
“SQM Research (an independent property research firm) is predicting another 7% to 9% across-the-board fall in value in the region in 2012.
Kochie also points out: “In any survey of trustworthiness real estate agents and journalists always appear at the bottom of the list.
“So dear reader you haven’t got much to choose from. But please note that I have no reason whatsoever to be making inaccurate statements. I have no issue with this area, but it’s my job to tell it how it is. And the bottom line is that property investments in these two locations are historically volatile, and right now in pretty bad shape,” he says.
“There are still massive amounts of stock on the market and it’s not going down.”
While he acknowledges that that building approval figures “rattled off” by Coast newspapers are “well and good”, he says the region “is already suffering a major oversupply, and having building approvals is no proof of a healthy market. It just means more supply in a low-demand area. Places are being built, but they’re not being bought.”
“Property is always about demand and supply. If there’s a lot of supply and weak demand then pressure is on prices to fall to attract buyer interest.”
He also includes a chart from SQM Research which shows Gold Coast listings are just as high as back in 2008, “though there has been a slight down trend in recent months.
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/gold.gif"><img style="border-style: initial; border-color: initial;" src="/images/stories/goldthumb.gif"></a>
Click to enlarge
As far as the Sunshine Coast market is concerned, Kochie says stock levels are “still clearly rising”.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/sunshine.gif"><img style="border-style: initial; border-color: initial;" src="/images/stories/sunshinethumb.gif"></a> 
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Kochie sets his sights on estate agents and journalists in Queensland property 'catastrophe' stoush

<html><body>
Australian banks are more concerned about political interference and regulation than their global counterparts, according to the PricewaterhouseCoopers (PwC)/Centre for the Study of Financial Innovation latest Banking Banana Skins survey. 
The 13 Australian banks that took part in the survey agreed with their global counterparts that macroeconomic risk – the crisis within the global financial system and Europe in particular – is the biggest threat to their operations. 
But Australian banks rated political interference and regulation as far bigger risks than foreign banks, while being less concerned about credit risk and capital availability.
Banking anxieties: Australia vs the world
<table style="width: 470px;" border="0"><tbody>
<tr>
<td>Top Five Global banking risks</td>
<td>Top Five Australian banking risks</td>
</tr>
<tr>
<td>1. Macroeconomic risk</td>
<td>1. Macroeconomic risk</td>
</tr>
<tr>
<td>2. Credit risk</td>
<td>2. Political interference</td>
</tr>
<tr>
<td>3. Liquidity</td>
<td>3. Liquidity</td>
</tr>
<tr>
<td>4. Capital availability</td>
<td>4. Regulation</td>
</tr>
<tr>
<td>5. Political interference</td>
<td>5. Credit risk</td>
</tr>
</tbody></table>
The findings are telling coming just over a week before the RBA meets on February 7 to decide on interest rates and following the December rate cut debacle when some banks took two days before eventually deciding to cut rates in line with the RBA’s 25-basis-point reduction.



After the December rate announcement some banks slammed the government for putting pressure on them to pass on rate cuts in full (in the face of higher funding costs) culminating in <a href="https://www.propertyobserver.com.au/economy/anz-keeps-rates-unchanged-in-first-independent-call/2012011353034">ANZ de-coupling its rate decisions from the RBA</a>, with Bendigo and Adelaide Bank also considering making independent interest rate decisions.



Aside from the political pressure banks have also warned that new capital holding requirements under Basel III as well as a proposal from the International Monetary Fund that they adopt even tougher capital requirements to guard against a collapse in the country's property market would lead to credit rationing and higher interest rates.



One Australian respondent commented as part of the survey: “Excessive / over regulation could reduce lending support from banks, and potentially lead some banks to increase credit risks to offset costs from regulation. Protectionist policies ... stifle banking competition”.



In December last year, then Commonwealth Bank boss Ralph Norris warned that regulator APRA’s hard-line stance on enforcing new global banking rules could result in higher interest rates and a credit squeeze.



According to the PwC, the Australian results reflect “uncertainties in the economic environment and the long journey the Australian banks still have to navigate through ongoing regulatory reforms that are still taking shape”. 



Overall, the global survey of more than 700 banks, regulators and market observers found globally anxiety levels are at their highest levels since they were first collected by the Banking Banana Skins survey 13 years ago. 



PwC says the rise in anxiety levels is not surprising “given the global financial system, and Europe in particular, is skirting on the edge of a fresh crisis”. 



“Certain developed economies are fighting hard to gain momentum amidst painful austerity measures. Regulators, both here and offshore, have responded by unleashing an unprecedented amount of new, often highly complex, regulations. 



However, while Australian banks are better prepared for a global crisis (scoring 3.21 versus 2.96), they are more anxious (3.28 versus 3.15) than their global banking peers.



“What will surprise many is how acute the anxiety is for Australia’s bankers, especially when the relative resilience of the nation’s banks and wider economy are considered,” comments PwC.



“To some extent this no doubt reflects the increasing gloom that bankers – no matter which country they work in – regard the immediate future. On a deeper level, it reflects uncertainties in the economic environment and the long journey the Australian banks still have to navigate through ongoing regulatory reforms that are still taking shape.”



“Despite the higher levels of anxiety, Australian bankers feel more prepared to deal with these risks than overseas counterparts. However, the response in Australia came exclusively from bankers; whereas countries with lower scores had input from observers and regulators who tended to be more sceptical.”

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Australian banks worried about government intervention but not so much borrowers' credit risk: PwC survey

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Today’s December 2011 house price index results make for some interesting reading.
As I have flagged here before, the “flash” or preliminary estimates around December and January can be difficult to interpret due to two factors: first, the volume of sales is seasonally much lower than normal, which makes measurement immediately following the month in question trickier; and, second, some cities’ valuer-generals’ offices can be a bit tardy is transferring transaction information over the holiday season, which gives rise to more volatile numbers that are subject to material revision.
While the flash estimate of the seasonally adjusted December month dwelling value index is -0.2%, this is being heavily influenced by two outsized (negative) results for Melbourne and Perth. It just so happens that these cities’ valuer-generals are probably the worst offenders when it comes to the timely transmission of data. What makes the Melbourne and Perth numbers especially suspect is that they come on the back of solid seasonally adjusted gains in November, which have been reconfirmed with RP Data-Rismark’s latest index analysis.
I expect to see future index revisions cast a more positive light on the price action in Melbourne and Perth over December, which could kick the national result back up into positive territory (following on from the encouraging November gain).
As an aside, a flash index estimate a few days ago did precisely that with more benign numbers for Melbourne, Brisbane and Perth generating a seasonally adjusted national gain. At this stage, however, the standard errors are two large to arrive at any definitive conclusions as to where the hard-to-handle December month data will actually end up.
Notwithstanding these wrinkles, the data does tell us some interesting things.
The November result for capital city dwelling values has revised up from +0.1% (s.a.) to +0.4% (s.a.) based on additional sales information. This marks the largest month-on-month improvement in Australian home values since May 2010.
RP Data-Rismark’s “rest-of-state” index, which covers all regional markets, has also revised up in November from +0.3% to +0.5% (s.a.). This is the most significant increase in regional house values since November 2010.
Australia’s biggest city, Sydney, currently has the largest volume of reported sales in December. In seasonally adjusted terms, Sydney dwelling values increased by 0.4% in the month of December. In the December quarter, Sydney dwelling values are up a total of 0.7% (s.a.).
So it would seem that Sydneysiders are leading the recovery.
There is also some good news for property investors. Weekly rents across the capital cities were up 1% over the December quarter and are now 6.3% higher than at the same time last year. These stronger rental rates combined with the recent correction in property values have improved investors’ overall yields. The average capital city apartment is now offering a gross rental return of 5.1% after a consistent trend upwards since mid-2010.
Over the course of last year, Australian capital city dwelling values experienced a total capital loss of about 3 ½%. Regional house values fared a little better, correcting by around 3%. This compares with the 14% to 15% decline in Australian shares. Adding in rents, the gross total return realised by Australian property investors was slightly less than 1% (up) over 2011.
Finally, we know that housing affordability in Australia has experienced a striking improvement. While disposable household incomes grew by nearly 7% over the year to September 2011, Australian dwelling values have declined by a total of 3.3% since May 2010. As a result of the RBA’s generous rate cuts in November and December, borrowers can today get fixed- and variable-rate home loans as low as 5.9% and 6.14%, respectively.  The bottom line is that Australian home loan rates are stimulatory.
Rismark’s research shows that disposable incomes per household have risen about 15% further than (hedonicall -measured) capital city dwelling values since the end of 2003. This helps account for the decline in Rismark’s national dwelling price-to-income ratio, which is as low as its been since 2003.
On the outlook for the year ahead, Rismark’s Ben Skilbeck commented, “We expect that the RBA’s interest rate cuts in the final two months of 2011 will lend further momentum to housing activity as transaction volumes pick up over February and March after the seasonally slow months of December and January. If financial market pricing for substantial additional RBA rate cuts proves accurate, we could see a stronger-than-expected bounce-back in housing conditions.”
RP Data’s Tim Lawless added: “While global uncertainty and a stagnant local labour market could weigh on the consumer’s mindset, we are nevertheless observing improvements in monthly housing finance commitments. RP Data’s leading indicators on average selling times and vendor discounts are also starting to look healthier. There is no doubt that additional interest rate relief in 2012 would afford a very welcome cushion to the housing market.”
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 
 
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Sydney housing streaks ahead of national market: Christopher Joye

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Will commercial property investors and businesses be starved of ready funds during 2012?
The banks seemed to be protesting about the increased cost of offshore borrowing and are using that as their excuse for not wanting to pass on any future RBA rate reductions in full.
But are they really telling you the whole truth?
Since 2008, the banks have reduced their dependence upon offshore funding by a third — now providing only 20% of their funding needs. In turn, they have raised (from 40% to 50%) their contribution from domestic deposits.
As such, their overall exposure to the European crisis has been significantly reduced. But what if things were to get worse? How would it look then?
During the early stages of the GFC, the Australian dollar fell as commodity prices collapsed.
But our dollar has now proven itself to be a safe haven — with foreign governments eagerly buying Australian 10-year bonds. This has driven yields down from 5.5% per annum early last year to where they currently sit, at around 3.8% per annum.
Unlike most Western countries, Australia still enjoys an envied AAA credit rating. And the Gillard government wants to ensure banking stability, along with a steady flow of funds throughout the system.
Therefore, if global conditions were to worsen or there were any suggestion of a funding shortage frustrating the banks, the government would undoubtedly extend its guarantee facility to them — as it did during the GFC.
That would have a twofold benefit:
The banks would then be able to borrow cheaply, backed by the AAA rating of the Australian government.
Plus any reduction in the cash rate by the RBA would immediately be passed on in full — given that the taxpayers would effectively underwrite the banks' wellbeing.
Bottom line: Because of Australia's rather unique economic position, it is well placed not only to survive any further global upheaval but actually emerge stronger as a result of it.
Therefore, as a commercial property investor, you need to grasp this window of opportunity and secure some well-let property now, ready to ride the underlying growth wave over the next five to six years.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a target="_blank" title="Chris Lang's blog" href="https://his-best.biz/">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
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