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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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James Stewart of Ferrier Hodgson has prepared a graph about the likely growth in internet retailing that will frighten bankers, particularly those who are worried about their jobs. Bankers will look at business lending propositions with a degree of self-interest – they don’t want to make a mistake. On the other side, retail tenants will also be frightened because they usually have to put their houses on the line and the changes taking place make them very nervous. And perhaps the greatest fear comes from those shop owners who are highly leveraged. 
Over the years, one of the safest investments has been owning a shop in a good shopping centre. Many investors were not afraid to borrow heavily on them. There seemed a never-ending number of tenants prepared to pay exorbitant sums to fit them out and commit to big rents. But that’s changing and by the end of the year the landscape will have changed dramatically.
Click to enlarge
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The Ferrier graph above shows one US retailer is selling 18% of their goods online. Almost all US retailers have sales online well above the Australian averages (the estimated average Australian retailer online sales percentage is indicated by the red line). Partly because of our high retail costs, the difference between buying online (from offshore) and local prices can be staggering. The successful retailers will find a way to lower their costs to be more competitive with overseas retailers. Ferrier say that retailers are going to need to work out how they mix the online and store sales. In some retail areas, the online percentage will rise to 30 per cent in Australia, and this figure is backed by the research of the Quantum Group. Many retailers will adjust, others will not. Rents will depend on the talents of the tenants. Right now, Sydney and New York fight over who charges the highest retail rents in the world. With the dollar above parity, Sydney has its nose in front but Melbourne is not far away. In the next year or two, rents in many areas are going to fall and in some cases fall sharply. The big upmarket centres like Westfield’s Bondi and Chadstone believe they will be insulated. Indeed, Chadstone is backing that view with a massive expansion. I think these centres may experience a delay in reaction but over the next two years the downward movement in rents in the rest of the country will be too large for them to be insulated. And with that fall in rents will come a fall in the value of the rental properties, which will lead banks to request that building owners contribute more equity to maintain lending ratios. This will force shops onto the market. There are three forces pushing down rents. The first is that consumers are very price conscious, which means that margins are tight. Second, the new labour laws mean that for many retailers opening on the best trading days – the weekends – is much more expensive. If retailers can't put up prices they must accept lower returns – and lower returns will need to be transferred into lower rents and capital values. And finally there is the internet.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator</a>.
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Owning a retail shop no longer a safe investment: Robert Gottliebsen

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A <a href=""></a>58% clearance rate was secured from the 145 offerings at the weekend’s Ray White Gold Coast auctions.
<a href="https://www.propertyobserver.com.au/residential/gold-coast-prestige-sales-marked-by-stubbies-not-champagne-as-market-struggles/2012013053168" target="_blank">Some 55% of the listings were sold</a> in early estimates. It was reportedly a record clearance rate.
The joint chief executive of Ray White Queensland Peter Camphin described the investor market interest as strong.
“There were a significant number of Victorians, for instance, who purchased,” Mr Camphin said.
“It’s clear there was a lot of interest as well as caution on price," he added.
Mr Camphin said a number of units were sold to people who hadn’t seen them.
The listings included a presumed record of 35 mortgagee offerings.
It was the Ray White Surfers Paradise group’s 19th annual event.
Michael Willems sold 21 of his 25 listings.
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jchancellor-FAypfDUnLy

Sight unseen purchases assists Ray White's weekend Gold Coast auction 58% clearance rate

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The number of distressed properties put up for sale in 2012 is expected to climb, thanks to continuing struggles facing property owners and an entrenched hesitancy from potential buyers to jump into the market, according to a report by the Australian Financial Review.
Overall distressed real estate listings soared 30% in Australia in 2011 compared with 2010, according to Colliers International research.
More than half of the 775 distressed properties advertised in 2011 were in Queensland.
“You have a significant number of properties not sold coming into the market in 2012, and there's more coming on,” chief executive of listed property valuer LandMark White Brad Piltz told the AFR. 
A second source told the AFR that interest in buying distressed properties is slowly gaining pace as investors increasingly warm to the view that in some markets prices have bottomed out.
In a separate report, the AFR said that Australian housing prices were unlikely to experience a major slump in 2012, citing ANZ Research.
ANZ holds the view that market fundamentals remain supportive, although prices are likely to be flat or slightly negative.
“While housing construction continues to weaken under the cloud of negative market sentiment and softening prices, forward indicators suggest the recent slowdown in net overseas migration will continue to reverse,” ANZ said, according to the AFR.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator</a>.
 
 
 
 
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po-LsXgBTHBmX

Distressed property listings to grow in 2012

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Like many other industry professionals, I’m often accused of “talking up” the market for my own greedy ends – however, the majority of my working life is spent encouraging purchasers to avoid various real estate transactions, rather than enter into them. Having worked in this industry for many years, I’m still amazed at the risks people take when purchasing a property. It’s no surprise sales agents get a bad name with consumers – buyers seem completely oblivious to the fact that they’re working for the vendor not purchaser, and as such can offer little help or advice outside essential information that can only benefit their clients – namely the vendors.
For these reasons – and many more – buyers’ agents have become commonplace over recent years and the industry has grown considerably. In America buyer advocacy is considered the norm for property shoppers. However unlike in Australia, the listing authority between the selling agent and vendor specifies that the fee will be payment for “bringing a buyer”. Therefore, when the property is sold and commission paid, the fee the buyers’ agent receives usually comes directly from the vendor-paid commission and the buyer simply pays the purchase price.
With more mouths to feed, this is why American real estate sales commissions are so high to begin with (I’m told around 6%). It’s a complicated process fraught with conflicts of interest. Obviously if the buyers’ agent is being paid from the vendor’s commission, his or her fee will be greater based on property price. In other words, the more you pay for the property, the more the buyers’ agent receives, so there is little encouragement to negotiate a low price – although I’m sure there are ethical agents in the US who do a good job regardless.
In Australia our system is a lot less complex. Buyers’ agents work exclusively for the buyer, have an authority with the buyer, are paid by the buyer, and as such are contractually obligated to work in the buyer’s best interests. Therefore when it comes to sourcing a home, avoiding risks and seeking independent advice outside that of the selling agency, working with a “good” buyers’ agent is a wise idea. However those doing so should always choose a “fee for service” model, rather than a commission-based process.
Getting reliable advice is especially relevant to those buyers who intend to invest in property in another state or territory. When I worked as a selling agent, I often sold property to buyers over the net – sight unseen. It wasn’t unusual to get emails and phone calls from purchasers who were prepared to sign a contract on the advice I relayed alone – advice benefitting the vendor. The Australian market is fragmented and as such, different states are at differing stages of the property cycle. While Perth was tracking sideways a couple of years ago, Melbourne was enjoying a 20% rise over a single quarter. Therefore investors don’t want to be tied to local purchases if it’s wiser to search further afield and if this is the case, obviously a fair amount of research has to be done remotely. But should you travel to view a property before the final decision is made?
Well, that’s the advice from some who suggest investment should be totally void of emotion. It’s not so bad if you employ a local professional to do the necessary due diligence on your behalf – but in my opinion, internet shopping into the world of real estate with no more than a few advertisements and Google maps to sway your judgement is no better than plunging your hand into a lucky dip and hope it comes out holding gold. Checking out the feel, suburb and general surrounds of a location is something you can only experience physically – and yet it wouldn’t surprise me to see “Buy Now” buttons sitting next to real estate advertisements at some point in the not-so-distant future.
For instance, who can say how many buyers this year have been tempted by the numerous spruikers of American property investments and purchased into the country’s falling market, which seemingly has no bottom to its pit of despair? However, at the Home Buyer’s Show I attended in Melbourne last year, the room was full of “property professionals” advising the wisdom of such investments.
In Australia a buyer can travel nationwide and purchase a property on a weekend away if he or she so desires. If she’s really brave, she can do it remotely – signing and returning the paperwork via fax or email. However, any transaction is subject to the laws and regulations of the state purchased – and like every other state law in Australia, they differ(in some cases quite considerably) from state to state. For example, in Victoria, buyers commonly have three business days to “cool off” on real estate sales transactions (auctions excluded). New South Wales on the other hand allows five business days. Perth has no cooling-off period, and Darwin has a four-business-day cooling-off period. In all cases there are exceptions to the rule and if you don’t know what they are, you could find yourself coming unstuck.
For example, in Victoria, buyers commonly think the cooling-off period starts when the vendor signs the contract – however not so!  It starts from when the written offer is made – regardless of it being accepted. If the vendor waits for three days before signing the contract and the buyer has not employed a solicitor to conduct the due diligence needed for the paperwork, the time to use the “get out of jail” card without losing your deposit has long passed. No doubt other states and territories have variations on this and it’s confusing enough when you work in the industry – let alone when you’re conducting a real estate transaction only two or three times in a lifetime.
There’s currently a proposal on the table to bring in national licensing for all real estate professionals. When/if implemented it would allow realtors from different states and territories to conduct their business anywhere in Australia. However, without some streamlining of the different systems in place, it’s hard to imagine how agents will have the necessary knowledge to work in the best interests of their clients without local expertise. I am hopeful the delays keeping the proposal at bay are being used to address these issues.
Other points of confusion concern the different negotiation practices employed in each state or territory. For example – the market in the inner suburbs of Melbourne can move at the speed of light. As such, placing a contract with any special conditions is a challenge in itself, and the process has to be navigated carefully if the offer is likely to be accepted. However in Perth, where – until recently – prices have languished and auctions are rare, it’s common practice to place several special conditions on sales contracts and without understanding the process, it’s not wise to venture into an unconditional agreement.
Purchasing real estate is fraught with danger. Even for those with experience, without the best research and advice, there are enough hidden dangers lurking to ruin the potential of any pricey acquisition.  For example, if you wandered into Western Australia, buoyed up on the recent market activity and population projections without due awareness of the state’s new planning schemes, you’d risk missing out on some excellent potential for short term capital growth. In Perth, large swathes of land are being re-zoned to allow for greater density in major activity centres. This could mean a house sitting on a block of land with the potential for a two-storey, seven-metre-high development could become next month’s six-storey unit site. Obviously it will affect the potential and value of various blocks of land depending on which way the wheel turns.  All in all, the internet’s not going to be very good at sourcing out these types of intricacies.
Despite all of the above, when property shoppers take to the streets once again, there’ll still be a swathe of investors who’ll delight sales agents as they stumble across the street theatre of an auction and decide on first look to raise their hand and place a bid.  Some may get lucky, but others will be the fodder for this year’s newspaper headlines and in essence, it’s no different to a game of Russian roulette. Property investment isn’t easy; it’s hard work and takes time. Analysing the price requires on-the-ground legwork and access to data bases that in some states are only accessible to licensed real estate agents. Working out if a property is a suitable investment requires a physical inspection from someone who is an experienced local and should not be done via internet alone. It’s true no investment is free of risk, however make sure those you take are calculated and not reckless.
Catherine Cashmore is senior buyer advocate, property manager and market analyst for Elite Buyer Advocates. She is also Channel Ten’s property expert on The Circle.  With extensive experience in all matters regarding real estate, <a href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a> purchases and negotiates more than $100 million worth of property each year for its clients.
 
 
 
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catherinecashmore-6LXia3pPQj

Don't be so quick to buy property

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Asian buyers look set to increase their investments in Melbourne’s upper-middle-class eastern suburbs over the Chinese New Year period.
Popular suburbs include Glen Waverley and Balwyn, with a desire to own prestige property, feng shui alignment and access to better schools among the reasons why Asian buyers have bought homes recently.
The Ray White Glen Waverley office has recently sold a number of homes in the $2 million-plus price bracket to wealthy mainland Chinese buyers.
Director Damian Moore expects almost every property currently up for sale in the suburb to attract some interest from Asian buyers during the festive season.
“Glen Waverley has a very large Asian community with varying financial means.  Therefore we sell homes [to Asian buyers] from $400,000 to $2.5 million,” says Moore.
Moore says most of the suburb’s Asian buyers come from mainland China, Malaysia, Singapore and Indonesia.
“Often the grander the house, the better – financial status at the high end of our market is very important.
“But you can’t beat good old ‘feng shui’ – most buyers will consider direction of the home, adjacent streets, low side/high side, front door opposite back door, staircase facing the front door,” he explains.
About 14 kilometres west of Glen Waverley, the affluent suburb of Balwyn has also experienced an influx of Asian buyers wanting to own property in the Balwyn High School zone bounded by the Eastern Freeway and Whitehorse Road.
According to Tim Heavyside of Fletchers Real Estate, property purchases by aspirational Asian families have increased from an average of 20% of Balwyn home buyers in the zone 10 years ago to about 60% of all purchases currently.
"They may decide rather than invest $25,000 in school fees every year, I'll utilise that in travel and educate my child in life, but they still get the benefit of being at the fourth-best school in the state," he says.
According to Moore, selling to Asian buyers comes with its challenges.
“Most Asian buyers are very hard negotiators – they remain non-emotional about the purchase and must always feel in control,” he says.
Melbourne real estate is not just proving popular with Asian families – Asian companies are also entering the market.
Asian property developers are making major plays in the Melbourne apartment market, with Hong Kong-based Far East Consortium building 2,600 apartments in the billion-dollar Upper West Side project on Lonsdale Street. Investors in the project come from Malaysia, mainland China, Korea and India.
Savills reported late last year that investors and developers from China, Singapore and Malaysia had spent more than $100 million in buying Melbourne development sites in the past 18 months.
Last year Asian developers snapped up a 3,200-square-metre site at 224-250 La Trobe Street for $29.2 million with potential for more than 500 apartments while Singapore construction and property group Chip Eng Seng bought an 8,000-square-metre office building on a 900-square-metre block at 150 Queen Street for $25.5 million, with plans to convert it for residential use. Both deals were negotiated by Savills.
Another residential development site at 420 Spencer Street (2,250-square-metre site with a permit for 368 apartments) has registered interest from Asian buyers including SP Setia and Mammoth Empire Holdings, both from Malaysia, as well as private developers from mainland China.
In total more than half of the 17 properties sold by Savills since March last year with residential development potential were snapped up by Asian buyers.
According to Savills divisional director of CBD sales and investments Nick Peden, Asian developers have bought eight properties, averaging $12.5 million, since March 2010.
"Melbourne offers sustained population growth, inexpensive land compared to home markets, the potential for significant growth, the benefit of freehold title, and its stature as the world's most liveable city," says Peden.
In a recent report on the influx of Asian property developers, CBRE said Melbourne was proving more popular with foreign developers than Sydney due to larger sites being available on the northern edge of the city.
For more on Asian investment in Australian property, download our free eBook<a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets"> Foreign Investment in Australia's Property Markets</a>.
 
 
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lschlesinger-FZcF9M3vE6

Melbourne’s eastern suburbs popular with Asian buyers

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There is no Australian housing price bubble, says ANZ in its latest assessment of the Australian property sector.
In its January assessment of the property market, the bank argues that gains in house prices over the past 25 years have been driven by increases in household income and lower interest rates.
The bank forecasts house prices will remain on hold or fall slightly in 2012, but will not crash.
“A combination of lower interest rates, falling house prices and rising household incomes has improved Australian house purchase affordability over the past 12 months,” say report authors David Cannington, senior economist at ANZ, and Paul Braddick, head of property research at ANZ. 
“Despite the continued concerns about significant Australian house price overvaluation from some commentators, housing market fundamentals remain supportive,” they say.
<img src="/images/stories/anzjan301.gif">
According to ANZ’s analysis, all the growth in Australian house prices since 1986 can be explained by gains in average household incomes and a structural decline in the cost of borrowing. 
“Cross-country comparisons using partial valuation measures are commonly used to contend the case of overvaluation of Australian house prices. That is, suggesting actual house price growth in Australia has run significantly higher than justified by explained price growth,” says ANZ. 
However, international house prices, rental yields and house price-to-income ratio comparisons compiled by ANZ suggest that Australian house prices have not deviated from international trends.
<img src="/images/stories/anzjan302.gif">
<img src="/images/stories/anzjan303.gif">
ANZ forecasts housing affordability to improve in 2012 following recent improvements due to softening house prices, rising household incomes and lower mortgage rates.
<img src="/images/stories/anzjan304.gif">
Among the factors ANZ says will continue to support the housing market is net migration, which is starting to rebound after the recent slowdown and combined with weak housing construction will add to the pressure building within the housing sector.
<img src="/images/stories/anzjan305.gif">
“While housing construction continues to weaken under the cloud of negative market sentiment and softening prices, forward indicators suggest the recent slowdown in net overseas migration will continue to reverse,” say Cannington and Braddick. 
“This renewed housing market tightening will add further upward pressure on rents, household size and provide a fundamental support to flagging market activity, especially for the first-home buyer market.” 
However, there will be no marked improvement in new home building in 2012, according to ANZ. 
“Soft house prices, weak housing market sales activity and tight credit conditions have dampened residential developer sentiment. Despite the recent interest rate cuts, weak housing market sentiment will continue to weigh on residential development activity through 2012,” says Cannington and Braddick.
<img src="/images/stories/anzjan306.gif">
 
 
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Strong fundamentals mean there is no Australian housing price bubble: ANZ

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The sales were small beer, rather than champagne cork popping, at the Gold Coast's weekend prestige auctions.
Just two of the 10 prestige listings listed for Main Event, Ray White Surfers Paradise auction found buyers.
The two were sold prior, but none of the remaining seven properties put under the hammer were sold.
Another was postponed and another withdrawn. There are reports that deals on another two are close to exchange.
The multimillion-dollar mansions that didn't sell included the Cronin Island property owned by Nicole Perrin, wife of former Billabong surfwear entrepreneur Matthew Perrin, which was passed in at $5.9 million.
It was therefore well below <a target="_blank" href="/news">its onetime $15 million valuation</a>.
No bids were taken for the <a target="_blank" href="https://www.propertyobserver.com.au/queensland/gold-coast-%249-million-offering-might-benefit-from-nerang-river-rising-tide/2011081851212">Bartinon mansion  at 26 Marseille Court in Sorrento</a>.
<img src="/images/stories/sanctcove.jpg">
The properties that did sell before auction were in Sanctuary Cove, including <a target="_blank" href="https://surfers-pardise.rwoffice1.com/qld/sanctuary-cove/723156/">a four-bedroom house sold by Ted Kunkel</a> (pictured above), the former Fosters boss turned Billabong chairman for an undisclosed figure.
Set on Bay Hill Terrace, the expansive house was built after the 804-square-metre lakefront reserve block had cost $500,000 in 2002 when bought from Mulpha. It comes with a Florida room with conservatory-style pool overlooking the sixth, seventh and eighth holes of the Palms Golf Course.
Another Hope Island property at Anchorage Terrace sold for $3 million to an overseas buyer.
Ray White Surfers Paradise boss Andrew Bell says the crowd suggested there may be renewed interest in real estate.
The auctioning of the mid-range priced properties saw some demand.
By late Sunday more than $30 million worth of properties had sold.
The clearance rate had jumped to more than 55%, well up on last year’s level of around 30%.
“It’s a big jump,” Bell says.
“We knew something was brewing.”
While the cooling in prices on the Gold Coast had played its role, Bell told the Australian Financial Review that “a couple of interest rate drops and the belief there will be more” had stimulated the market. “We’ve got five or six bidders on most properties [and] we’re going over reserve on most properties,” he said.
About 1,000 people packed the main auction watching numerous properties sell for much less than they sold before the global financial crisis.
There was an average sale of $485,000.
The Gold Coast Bulletin reported sales included a five-bedroom Dirk Hartog Place, Hollywell house with boat ramp that sold for $1.125 million, $415,000 less than when it last sold in 2006.
A mortgagee sale of a luxury apartment in the Q1 building in Surfers Paradise that sold for $2 million in October 2006 fetched $970,000 at the auction.
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Gold Coast sales marked by stubbies, not champagne as market struggles to find its price footing

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Home loan applications are up 23% for the first three weeks of January 2012 compared with January 2011, according to RateCity.com.au.
The mortgage comparison website recorded an increase in activity over the past six months and a 41% jump in applications in December 2011 compared with July 2011.
It is unclear though how much of this increased activity is due to borrowers taking out new home loans or existing home owners refinancing their mortgages, as RateCity.com.au is unable to provide a breakdown of home loan applicant types.
RateCity.com.au has attributed the increased activity to lower property prices, two successive interest rate cuts and “aggressive discounting by lenders eager to kick-start the borrowing market”.
It has also noted a return of first-home buyers to the market following RBA data showing that first-home buyers make up one in five (20%) of all mortgages for the first time in almost two years.
Damian Smith, RateCity's CEO, said the mortgage market is finally picking up the pace.
"This year, the mortgage market looks set to recover from the past two years of slower growth," Smith says.
"While we're yet to see the strong numbers of home buyers from five years ago, lenders are likely to see business improving this year as borrowers react to lower prices and interest rates."
Almost 51,000 home loans were financed in November, according to figures from the Australian Bureau of Statistics released last week.
"This is the biggest number of home loans financed recorded by the ABS for two years," says Smith. "The dollar value of these home loans was almost $15 billion in November alone."
According to RateCity.com.au, the lowest rate on a three-year fixed-rate loan is 5.95% offered by non-bank lender HomeStar Finance, which is funded by ING; Deutsche Bank and HSBC.
The lowest standard variable rate loan is offered by non-bank lender State Custodians at 6.22%. NAB’s Ubank is offering a refinancing standard variable loan at 6.14%.
 
 
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Mortgage applications up 23% in January: RateCity

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More than half of the more than 4,000 apartments in the pipeline in Brisbane’s development hotspot of Fortitude Valley, Bowen Hills and surrounding northern fringe suburbs are yet to be sold, according to the latest figures from research group Oliver Hume.
During the months of September, October and November 2011, 146 apartments were sold in this precinct, the highest volume of sales in Brisbane.
About 2.3 years of supply remaining at current sales rates.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/fortvalley.gif"><img src="/images/stories/fortvalleythumb.gif"></a>
According to Oliver Hume, the variety of stock on offer contributed to the high level of sales.
The Vecchio Property Group’s The Rivé apartments at Breakfast Creek was the most successful project for the quarter, accounting for more than a third (56) of this total.
Of the 29 projects being marketed in the northern fringes area, 14 have sold more than 50% of their available residential stock while just seven have sold 75% of their stock.
Projects spearheaded by noted property developer David Devine have performed strongly to date.
The Chelsea, a New York-style project being developed by Devine’s Metro Property Group, is 98% sold, with 191 out of the 195 apartments snapped up. The development consists of two towers of 12 levels each with one-bedroom apartments priced at $295,000.
The Hamilton Harbour project on the Brisbane River being developed by Devine Limited and Leighton Properties has sold 98% of the 257 apartments in Harbour One and 85% of the 212 apartments in Harbour Two.
One-, two- and three-bedroom apartments have been priced from $422,000 and rise to $2.25 million.
Laing O’Rourke’s $250 million McLachlan  &amp; Anne (M&amp;A) project under construction at McLachlan, Connor and Ann streets in Fortitude Valley is 72% sold, with 163 out of the of the 234 one- and two-bedroom apartments now sold.
Other apartment projects in Fortitude Valley appear less successful.
At the end of November all 131 apartments in the Alex Perry Residential 11-storey designer block were still available for purchase.
According to a spokesperson for the project, five apartments had been sold in January, and the project is “performing well”.
Another Fortitude Valley project, Belise, was unsold up until the end of November, according to research by Oliver Hume.
Construction of the 199 apartments at the St Paul’s Terrace is due to commence in the second quarter of next year.
In September last year a spokesperson for this development told Property Observer about 50 had been sold off the plan since launching in October 2010.
Photograph by Michael Zimmer
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More than half of Fortitude Valley's new stock yet to find buyers

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RP Data’s Tim Lawless has given qualified support to the findings of US-based research group Demographia that Australian housing is among the most unaffordable in the world.
According to Demographia’s <a href="https://www.propertyobserver.com.au/residential/sydney-and-melbourne-in-the-top-five-least-affordable-cities-in-the-world-demographia/2012012353110" target="_blank">eighth annual International Housing Affordability Survey</a>, Australian cities are among the most unaffordable in the world, led by Sydney with a median multiple (the ratio of median house price to median income) of 9.2 and Melbourne with a median multiple of 8.4. It places the blame on restrictive land use policies that encourage speculators and investors in dense urban areas.
Lawless says Demographia might exaggerate the affordability figures “slightly” but there is no doubt Australian cities are expensive places to buy homes.
“There are some flaws in the Demographia methodology – they use median house prices, whereas a better guide would be median dwelling prices, as around 35% of dwellings in Australia are units. Also it does not include regional dwelling prices and is focused on capital cities,” he says.
If you include these figures, Lawless says, “median prices will come down much further”.
These methodology issues aside Lawless backs the survey and says it reflects the fact that “we are in a market place that does have affordability challenges and even though we have seen price declines, we have not seen a dramatic improvement in the affordability level”.
According to Lawless, affordability is already changing consumer behaviour.
“There isn't any argument that in areas like Sydney for example, affordability is a real issue and we are seeing more and more people look towards the unit market as opposed to the detached housing in an effort to combat affordability,” he says in an interview on ABC radio.
Demographia founder and report author Wendell Cox says Australian house prices are two to three times higher than what they should be and says land use regulation and a focus on developing housing close to the major cities is to blame.
“There is nothing unique at all in Australia for prices to be so unaffordable… Basic economics tells us that when you create a shortage of anything, be it land or cars, you are going to drive the prices up.
“[Housing affordability problems in Australia] have to do with land use regulation, this philosophy of urban consolidation which has drawn strict borders around virtually all [Australian] capital cities so that it is virtually impossible to build much on the fringe of the city.”
Cox says regulations governing land development fuels property speculation and says such policies ultimately led to the bursting of the property bubble in the US.
“Australia has a housing bubble, of that there is no question. Australian housing is incredibly over-valued by any sort of international standard.
“Whether it bursts or not is beyond my ability to predict.”
Cox says investors are not drawn to markets that don’t have constraints.
“There aren’t any speculators in Dallas-Fort Worth or Atlanta. Why? Because you can develop land there.”
“It’s just unbelievable that sections of land in the suburbs of Sydney are going for $200,000 and $300,000 – we’re selling houses for that in a lot of urban areas in the US and Canada.”
Cox says there is plenty of room for expansion around Sydney, Melbourne, Adelaide, Perth and Brisbane.
Lawless agrees that land restrictions are driving prices up, but says there are other factors which have contributed to Australian house prices being far higher than in the US.
“Demographically we are unique… 50% of our population is across three cities. We have tight urban densities in those cities and we have very little opportunities for employment outside the capital cities.”
 
 
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