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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

<html><body>
Sydney and Melbourne are significantly more affordable than US-based research organisation Demographia claims, according to Property Observer calculations based on the latest available official ABS data.
In its eighth annual global housing affordability report, Demographia ranks Sydney as the third most unaffordable city in the world with house prices 9.2 times higher than the median household income and Melbourne sixth most unaffordable with a median multiple of 8.4.
However, the most recent ABS estimates of median household income and median house prices (respectively, the Household Wealth and Wealth Distribution report for 2009-10 released in October 2011 and the September quarter House Price Index released in November 2011) suggests quite different results.
Using the ABS figures, Sydney has a median multiple of 7.4, which means it drops down the list of most unaffordable locations from third (according to Demographia behind Hong Kong and Vancouver) to equal 10th with the UK’s Plymouth and Devon region.
Using the same ABS data, Melbourne’s median multiple falling from 8.4 to 6.5, with its ranking falling from six to joint 24th most unaffordable city alongside Telford and Shropshire in the UK.
<table style="width: 450px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="96" valign="top">
 
</td>
<td width="266" colspan="3" valign="top">
ABS figures
</td>
<td width="254" colspan="3" valign="top">
Demographia figures
</td>
</tr>
<tr>
<td width="96" valign="top">
 
</td>
<td width="91" valign="top">
Median house-hold income
</td>
<td width="91" valign="top">
Median house price
</td>
<td width="84" valign="top">
Median multiple
</td>
<td width="82" valign="top">
Median house-hold income
</td>
<td width="93" valign="top">
Median house price
</td>
<td width="80" valign="top">
Median multiple
</td>
</tr>
<tr>
<td width="96" valign="top">
Sydney
</td>
<td width="91" valign="top">
$77,500
</td>
<td width="91" valign="top">
$575,000
</td>
<td width="84" valign="top">
7.4
</td>
<td width="82" valign="top">
$69,400
</td>
<td width="93" valign="top">
$637,600
</td>
<td width="80" valign="top">
9.2
</td>
</tr>
<tr>
<td width="96" valign="top">
Melbourne
</td>
<td width="91" valign="top">
$74,000
</td>
<td width="91" valign="top">
$484,000
</td>
<td width="84" valign="top">
6.5
</td>
<td width="82" valign="top">
$67,700
</td>
<td width="93" valign="top">
$567,000
</td>
<td width="80" valign="top">
8.4
</td>
</tr>
<tr>
<td width="96" valign="top">
Brisbane
</td>
<td width="91" valign="top">
$79,700
</td>
<td width="91" valign="top">
$450,000
</td>
<td width="84" valign="top">
5.6
</td>
<td width="82" valign="top">
$71,500
</td>
<td width="93" valign="top">
$427,500
</td>
<td width="80" valign="top">
6.0
</td>
</tr>
<tr>
<td width="96" valign="top">
Adelaide
</td>
<td width="91" valign="top">
$65,500
</td>
<td width="91" valign="top">
$402,000
</td>
<td width="84" valign="top">
6.2
</td>
<td width="82" valign="top">
$57,300
</td>
<td width="93" valign="top">
$385,000
</td>
<td width="80" valign="top">
6.7
</td>
</tr>
<tr>
<td width="96" valign="top">
Perth
</td>
<td width="91" valign="top">
$76,300
</td>
<td width="91" valign="top">
$500,000
</td>
<td width="84" valign="top">
6.6
</td>
<td width="82" valign="top">
$78,900
</td>
<td width="93" valign="top">
$450,000
</td>
<td width="80" valign="top">
5.7
</td>
</tr>
<tr>
<td width="96" valign="top">
Darwin
</td>
<td width="91" valign="top">
$95,500
</td>
<td width="91" valign="top">
$510,000
</td>
<td width="84" valign="top">
5.2
</td>
<td width="82" valign="top">
$82,500
</td>
<td width="93" valign="top">
$507,250
</td>
<td width="80" valign="top">
6.1
</td>
</tr>
<tr>
<td width="96" valign="top">
Hobart
</td>
<td width="91" valign="top">
$58,240
</td>
<td width="91" valign="top">
$339,000
</td>
<td width="84" valign="top">
5.8
</td>
<td width="82" valign="top">
$58,900
</td>
<td width="93" valign="top">
$345,000
</td>
<td width="80" valign="top">
5.9
</td>
</tr>
<tr>
<td width="96" valign="top">
Canberra
</td>
<td width="91" valign="top">
$104,400
</td>
<td width="91" valign="top">
$538,000
</td>
<td width="84" valign="top">
5.2
</td>
<td width="82" valign="top">
$105,100
</td>
<td width="93" valign="top">
$513,000
</td>
<td width="80" valign="top">
4.9
</td>
</tr>
</tbody></table>
Source: ABS data, Demographia
Not all cities become more affordable using the ABS figures – Perth’s median multiple goes from 5.7 to 6.6 because the official ABS figures put the median Perth house price at $500,000 while Demographia says it is $450,000.
<img src="/images/stories/medianmultiplechart.jpg" width="470">
Wendell Cox, co-founder of Demographia, tells Property Observer median household income data differences arise because it uses a different Australian Bureau of Statistics (ABS) database while house prices come from real estate industry sources.
“Our median household income estimates start with a base of the ABS 2006 census data for the corresponding capital cities (statistical divisions) as well as the other areas reported upon. These figures are then adjusted based upon the change in earnings per person (using ABS data),” Cox says.
“There are differences between the income data from the census and the Household Wealth and Wealth Distribution report data. For example, the 2005-6 report had a median household income for Sydney approximately 9% higher than the median household income as reported by the 2006 census,” he says.
“Our first choice for estimating median household income data is census data, where it is available (such as Australia, Canada, New Zealand and the United States) because of its virtual universality (more than 7 million households nationwide). The 2009-10 Household Wealth and Wealth Distribution data is from a national sample of 18,000 households (2,245 in Sydney).
“We do not question the Household Wealth and Wealth Distribution report, but consider the census data more appropriate for the comparisons in the Survey. We anticipate updated median household income data from the 2011 census and plan on using that as a base next year.
“The median house prices for the capital cities are from the Real Estate Institute (REIA and state affiliates),” he says.
Demographia as its Australian research sources the following: AMP Banking (Australia), ABS, Australian Property Monitors, Housing Industry Association, Real Estate Institute of Australia and its state institutes, RBA, Residential Property Council (Division of the Property Council of Australia) RP Data (realestate.com.au), and the Urban Development Institute of Australia.
</body></html>

lschlesinger-FZcF9M3vE6

Sydney and Melbourne more affordable than Demographia suggests

<html><body>
In a previous article published here entitled <a href="https://www.propertyobserver.com.au/residential/selling-agents-and-buyers-agents-work-together-but-have-opposing-goals/2011112052436">Selling agents and buyers' agents work together but have opposing goals</a>, I covered the definition of these agents’ respective roles in today’s property industry and how the two work together.  But what about vendors’ advocates? 
If real estate selling agents act for the seller, buyers’ agents act for the buyer, where on earth do vendors’ advocates fit into the equation? Surely they must be the same thing as real estate agents – after all, doesn’t the selling agent represent the vendor? So what is the difference? 
Firstly, they are all licensed agents but have different roles in property transactions. In Australia buyers’ agents have only been around for about 15 years, and their alter-egos, the vendors’ advocates have only recently begun to emerge in their specific role in our property industry. To further confuse the issue, buyers’ agents and vendors’ advocates are often the same person, although by definition they never sell real estate themselves. 
Vendors’ advocates are independent agents who act exclusively for the seller of a property. They offer a value-added service including: 
<ul>
<li>A written market appraisal of the property including local comparable sales and current listings to establish a market value range </li>
</ul>
<ul>
<li>Advice and recommendations for selecting the best real estate agent in the locality </li>
</ul>
<ul>
<li>Advice on real estate agents’ exclusive sale agreements and proposed commission fees </li>
</ul>
<ul>
<li>Recommendations on the best method of sale – auction or private treaty </li>
</ul>
<ul>
<li>Advice on strategy and proposed marketing campaigns </li>
</ul>
<ul>
<li>Vetting and screening buyers' offers presented to the seller through their appointed real estate agent</li>
</ul>
In the US advocates have been around for decades and are widely used by both sellers and buyers, but in Australia the concept is relatively new and falls into a grey area that is still unclear to many consumers.
The issue comes down to two reasonable questions: 
<ol>
<li>Why would a seller engage a real estate agent (acting as a vendor’s advocate) to then recommend another real estate agent to sell their property? </li>
</ol>
<ol>
<li>Isn’t there an inherent conflict of interest involved in this process? </li>
</ol>
The answer to the first question is that a vendor may decide to engage an independent professional to advise him on the whole process and look after his interests in the sale. He may be based overseas or simply doesn’t have the time to arrange the sale himself. 
The answer to the second question is much trickier and lies in understanding who actually benefits from the transaction. 
Brief research of fees charged by vendors’ advocates in the Australian states of New South Wales and Victoria reveals that many do not charge a fee to the seller. They are paid a conjunction fee or “referral fee” by the real estate agent they originally recommended as the best agent to exclusively sell a property. 
The issues involved with this arrangement are: 
-          The vendors’ advocate may be tempted to recommend the selling agent who pays her the highest split of the final commission, or choose an agent with whom she has a good relationship (but who may not necessarily be the right person for the job in terms of achieving the best sale price for the client). 
-          There can be confusion between who is actually handling the negotiation process, and in whose interest. 
-          If the vendors’ advocate is receiving a split of the sales commission the real estate agent’s motivation may be degraded. If offered a listing they will usually take it even if their fee is reduced, but will they then give the sale 100% of their effort? 
 
 
Other vendors’ advocates charge a fee directly to the vendor (usually about 0.5% of the sale price). This system avoids a conflict of interest, allowing the vendors’ advocate to act independently and without bias for the client, and it encourages the selling agent to put his best effort into the sale for the benefit of all stakeholders.
Either way the fact is the market for vendor advocacy is growing at a fast rate in Australia. If vendors feel they can benefit from this new service by engaging a property professional, then why not? 
The service is ideal for vendors based overseas and anyone else who needs independent advice in the sale of what is often their most valuable asset – their home.
Tim Mansfield is founder and principal of Sydney-based buyers' agency <a target="_blank" href="https://www.primepropertybuyer.com/">Prime Property Buyer</a>.
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tmansfield-Rk8rBecHRA

Why you might use a vendor's advocate

<html><body>
The December quarter Consumer Price Index figures show that the Reserve Bank of Australia’s consumer price measures of inflation are within their target zone.
The analytical series of trimmed mean and weighted median increased by 0.6% and 0.5% respectively for the December quarter 2011, compared with 0.4% for both measures in the previous quarter.
The annual change in trimmed mean and weighted median is 2.6% for both measures for the December quarter, compared with 2.4% and 2.7% respectively for the September 2011 quarter
The latest figures are well within the RBA’s target zone of 2% to 3% and should provide a clear message to the RBA to reduce official interest rates at its February meeting.
The housing group showed a slowing down in the quarterly rate – from 1.9% in the September quarter 2011 to 0.4% in December quarter 2011 – the annual rate decreased from 4.2% for the 12 months to September 2011 and to 4% for the 12 months to December 2011.
The main contributor to the December quarter increase for the housing group was rents, which increased 1%.
For the year to December 2011 the biggest increases in the housing group were for electricity (12.2%), water and sewerage (8.6%) and gas and other household fuels (6.7%), with inflation within the RBA’s target zone. Given the latest outlook for the Australian and global economies it is appropriate to have a third consecutive cut in interest rates.
Pamela Bennett is president of the <a target="_blank" href="https://www.reia.com.au/">Real Estate Institute of Australia.</a>
</body></html>

pbennett-Zvm5u8EFas

Inflation data should encourage RBA to cut rates again in February

<html><body>
The regional Victorian cities of Mildura and Shepparton rank as the most affordable Australian housing markets out of 32 major and minor housing markets as rated by US-based research group Demographia.
Canberra is the most affordable capital city market due to high civil servant wages. Sydney, with a median house price of $637,600 and median wages of just $69,400, is the least affordable.
The full list is:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="103" valign="top">
National rank
</td>
<td width="141" valign="top">
Market
</td>
<td width="65" valign="top">
Median multiple
</td>
<td width="103" valign="top">
Median price
</td>
<td width="103" valign="top">
Median household income
</td>
</tr>
<tr>
<td width="103" valign="top">
1
</td>
<td width="141" valign="top">
Mildura
</td>
<td width="65" valign="top">
4.2
</td>
<td width="103" valign="top">
$207,000
</td>
<td width="103" valign="top">
$49,300
</td>
</tr>
<tr>
<td width="103" valign="top">
2
</td>
<td width="141" valign="top">
Shepparton
</td>
<td width="65" valign="top">
4.2
</td>
<td width="103" valign="top">
$236,000
</td>
<td width="103" valign="top">
$55,600
</td>
</tr>
<tr>
<td width="103" valign="top">
3
</td>
<td width="141" valign="top">
Launceston
</td>
<td width="65" valign="top">
4.5
</td>
<td width="103" valign="top">
$272,300
</td>
<td width="103" valign="top">
$60,900
</td>
</tr>
<tr>
<td width="103" valign="top">
4
</td>
<td width="141" valign="top">
Bunbury
</td>
<td width="65" valign="top">
4.6
</td>
<td width="103" valign="top">
$362,500
</td>
<td width="103" valign="top">
$78,600
</td>
</tr>
<tr>
<td width="103" valign="top">
5
</td>
<td width="141" valign="top">
Toowoomba
</td>
<td width="65" valign="top">
4.7
</td>
<td width="103" valign="top">
$275,000
</td>
<td width="103" valign="top">
$58,400
</td>
</tr>
<tr>
<td width="103" valign="top">
6
</td>
<td width="141" valign="top">
Albury-Wodonga
</td>
<td width="65" valign="top">
4.8
</td>
<td width="103" valign="top">
$274,000
</td>
<td width="103" valign="top">
$57,200
</td>
</tr>
<tr>
<td width="103" valign="top">
7
</td>
<td width="141" valign="top">
Canberra
</td>
<td width="65" valign="top">
4.9
</td>
<td width="103" valign="top">
$513,000
</td>
<td width="103" valign="top">
$105,100
</td>
</tr>
<tr>
<td width="103" valign="top">
8
</td>
<td width="141" valign="top">
Rockingham
</td>
<td width="65" valign="top">
5.1
</td>
<td width="103" valign="top">
$312,000
</td>
<td width="103" valign="top">
$61,600
</td>
</tr>
<tr>
<td width="103" valign="top">
8
</td>
<td width="141" valign="top">
Townsville
</td>
<td width="65" valign="top">
5.1
</td>
<td width="103" valign="top">
$358,000
</td>
<td width="103" valign="top">
$70,500
</td>
</tr>
<tr>
<td width="103" valign="top">
10
</td>
<td width="141" valign="top">
Cairns
</td>
<td width="65" valign="top">
5.2
</td>
<td width="103" valign="top">
$350,500
</td>
<td width="103" valign="top">
$67,400
</td>
</tr>
<tr>
<td width="103" valign="top">
10
</td>
<td width="141" valign="top">
Devonport-Burnie
</td>
<td width="65" valign="top">
5.2
</td>
<td width="103" valign="top">
$257,00
</td>
<td width="103" valign="top">
$49,200
</td>
</tr>
<tr>
<td width="103" valign="top">
10
</td>
<td width="141" valign="top">
Wagga Wagga
</td>
<td width="65" valign="top">
5.2
</td>
<td width="103" valign="top">
$293,000
</td>
<td width="103" valign="top">
$56,300
</td>
</tr>
<tr>
<td width="103" valign="top">
13
</td>
<td width="141" valign="top">
Tamworth
</td>
<td width="65" valign="top">
5.3
</td>
<td width="103" valign="top">
$293,000
</td>
<td width="103" valign="top">
$48,600
</td>
</tr>
<tr>
<td width="103" valign="top">
14
</td>
<td width="141" valign="top">
Bendigo
</td>
<td width="65" valign="top">
5.4
</td>
<td width="103" valign="top">
$277,500
</td>
<td width="103" valign="top">
$51,700
</td>
</tr>
<tr>
<td width="103" valign="top">
15
</td>
<td width="141" valign="top">
Ballarat
</td>
<td width="65" valign="top">
5.5
</td>
<td width="103" valign="top">
$285,000
</td>
<td width="103" valign="top">
$52,200
</td>
</tr>
<tr>
<td width="103" valign="top">
15
</td>
<td width="141" valign="top">
Alice Springs
</td>
<td width="65" valign="top">
5.5
</td>
<td width="103" valign="top">
$440,000
</td>
<td width="103" valign="top">
$79,600
</td>
</tr>
<tr>
<td width="103" valign="top">
17
</td>
<td width="141" valign="top">
Mackay
</td>
<td width="65" valign="top">
5.6
</td>
<td width="103" valign="top">
$410,000
</td>
<td width="103" valign="top">
$73,700
</td>
</tr>
<tr>
<td width="103" valign="top">
18
</td>
<td width="141" valign="top">
Perth
</td>
<td width="65" valign="top">
5.7
</td>
<td width="103" valign="top">
$450,000
</td>
<td width="103" valign="top">
$78,900
</td>
</tr>
<tr>
<td width="103" valign="top">
19
</td>
<td width="141" valign="top">
Mandurah
</td>
<td width="65" valign="top">
5.9
</td>
<td width="103" valign="top">
$367,300
</td>
<td width="103" valign="top">
$62,700
</td>
</tr>
<tr>
<td width="103" valign="top">
19
</td>
<td width="141" valign="top">
Hobart
</td>
<td width="65" valign="top">
5.9
</td>
<td width="103" valign="top">
$345,000
</td>
<td width="103" valign="top">
$58,900
</td>
</tr>
<tr>
<td width="103" valign="top">
21
</td>
<td width="141" valign="top">
Brisbane
</td>
<td width="65" valign="top">
6.0
</td>
<td width="103" valign="top">
$427,500
</td>
<td width="103" valign="top">
$71,500
</td>
</tr>
<tr>
<td width="103" valign="top">
22
</td>
<td width="141" valign="top">
Darwin
</td>
<td width="65" valign="top">
6.1
</td>
<td width="103" valign="top">
$507,250
</td>
<td width="103" valign="top">
$82,500
</td>
</tr>
<tr>
<td width="103" valign="top">
23
</td>
<td width="141" valign="top">
Bundaberg
</td>
<td width="65" valign="top">
6.2
</td>
<td width="103" valign="top">
$270,000
</td>
<td width="103" valign="top">
$43,600
</td>
</tr>
<tr>
<td width="103" valign="top">
24
</td>
<td width="141" valign="top">
Newcastle-Maitland
</td>
<td width="65" valign="top">
6.7
</td>
<td width="103" valign="top">
$365,000
</td>
<td width="103" valign="top">
$54,300
</td>
</tr>
<tr>
<td width="103" valign="top">
24
</td>
<td width="141" valign="top">
Adelaide
</td>
<td width="65" valign="top">
6.7
</td>
<td width="103" valign="top">
$385,000
</td>
<td width="103" valign="top">
$57,300
</td>
</tr>
<tr>
<td width="103" valign="top">
26
</td>
<td width="141" valign="top">
Wollongong
</td>
<td width="65" valign="top">
6.9
</td>
<td width="103" valign="top">
$403,000
</td>
<td width="103" valign="top">
$58,200
</td>
</tr>
<tr>
<td width="103" valign="top">
27
</td>
<td width="141" valign="top">
Geelong
</td>
<td width="65" valign="top">
7.1
</td>
<td width="103" valign="top">
$390,000
</td>
<td width="103" valign="top">
$55,300
</td>
</tr>
<tr>
<td width="103" valign="top">
28
</td>
<td width="141" valign="top">
Sunshine Coast
</td>
<td width="65" valign="top">
7.5
</td>
<td width="103" valign="top">
$430,000
</td>
<td width="103" valign="top">
$57,000
</td>
</tr>
<tr>
<td width="103" valign="top">
29
</td>
<td width="141" valign="top">
Gold Coast
</td>
<td width="65" valign="top">
7.6
</td>
<td width="103" valign="top">
$470,000
</td>
<td width="103" valign="top">
$61,900
</td>
</tr>
<tr>
<td width="103" valign="top">
30
</td>
<td width="141" valign="top">
Coff’s Harbour
</td>
<td width="65" valign="top">
8.3
</td>
<td width="103" valign="top">
$354,000
</td>
<td width="103" valign="top">
$42,500
</td>
</tr>
<tr>
<td width="103" valign="top">
31
</td>
<td width="141" valign="top">
Melbourne
</td>
<td width="65" valign="top">
8.4
</td>
<td width="103" valign="top">
$567,000
</td>
<td width="103" valign="top">
$67,700
</td>
</tr>
<tr>
<td width="103" valign="top">
32
</td>
<td width="141" valign="top">
Sydney
</td>
<td width="65" valign="top">
9.2
</td>
<td width="103" valign="top">
$637,600
</td>
<td width="103" valign="top">
$69,400
</td>
</tr>
</tbody></table>
 Source: Demographia’s 8th Annual International Housing Affordability Survey
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Mildura and Shepparton most affordable regional areas in Australia: Demographia

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As we move into a new year, it is my feeling that interesting times are ahead for both the Australian residential property and mortgage markets. 
There is no doubt that as uncertainty continues in global economies many Australian home owners will continue to hurt financially. 
However, the prevailing economic conditions are also heavily influenced by decisions made by the Reserve Bank of Australia, which moved to cut the official cash rate by 50 basis points over November and December – decisions that will no doubt help stimulate the property and mortgage markets. 
Recent labour force data released by the Australian Bureau of Statistics has certainly fuelled speculation that the Reserve Bank will move in February (at least), with many pundits predicting a potential cut of 25 basis points – bringing the official cash rate down to 4%. 
Such downwards movement in rates is helping to improve purchase conditions and levels of confidence for many of those Australians who are in a position to buy yet spent 2011 sitting on the fence. And with the rental market continuing to tighten across the country, many buyers, including both previous renters and investors, are moving to take advantage of fortuitous purchase opportunities and lending conditions. 
Therefore, circumstances that are highly concerning for many are also helping to improve prospects for others.  Interesting times ahead. 
So how can borrowers best approach mortgage management in 2012?
When to fix? 
Understandably, many of those people looking to obtain finance to purchase a property will be waiting for the possibility of further rate cuts so as to secure the lowest fixed-rate home loan package. 
While there is certainly the potential for fixed rates to come down with further rate cuts, it is my suspicion that the rates offered by lenders across the board will eventually bounce back up at some stage over the course of the year. 
If this happens, it will occur with little warning and could be quite substantial – with prospective borrowers missing out on good mortgage packages, resulting in larger monthly repayments. 
As such, I would advise that those borrowers who wish to fix do so, as rates are coming down – a mortgage professional will be able to provide guidance as to the best product and associated rate for your personal situation. 
Choose your lender wisely 
I would encourage those borrowers who may usually prefer to do their banking with the big four to contemplate the mortgage offerings of second-tier lenders. As the major banks ponder whether or not to pass on rate cuts in full, the mortgage products of many second-tier lenders generally present good propositions, and are certainly worthy of consideration if suitable for your personal situation. 
This goes for current mortgage holders as well – don’t discount the value that refinancing with a second-tier lender could have if your current lender declines to pass on any future rate cuts (be it one of the big four banks or another second-tier company). 
Take care with valuations when refinancing 
With some property values declining in various areas of the country across 2011, investors may find that when refinancing in order to expand a property portfolio, a valuation shows their position is not as strong as they had thought.  As such, it is essential that investors ensure they have adequate equity prior to making further purchases, and ideally should consult with a mortgage professional to ascertain their true financial position. 
Despite concerning conditions in global financial markets, the year to come should certainly present some attractive mortgage opportunities to those Australians who are financially positioned to make a property purchase.  I would urge buyers to seek the advice of a mortgage professional so as to be able to take advantage of attractive interest rates and to ensure that you end up with the best home loan for your circumstances.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21.</a>
 
 
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ctarbey-W47GL9jwxa

What's in store for borrowers in 2012

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Rydges Hotel Group is set to spend $11 million to create an entire level of New York-inspired dining at its South Bank hotel in Brisbane. 
<img src="/images/stories/rydges1.jpg">
Designed by Base Architects in collaboration with LA interior designer Tracy Beckham, the 2,887-square-metre space will have an elevated dining area, a lounge plus poolside bar and eatery. It will be named in honour of the Roman god of indulgence, Bacchus. The Grey and Glenelg street frontages is set to get one of the design industry’s newest must haves: a vertical garden.
<img src="/images/stories/rydges2.jpg">
 
 
 
 
 
 
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andreadixon-oif3j7eKne

Rydges gets a taste for Big Apple-style dining in Brisbane South Bank hotel

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A Chinese developer is looking to acquire a nine-story Sydney office block as Asian funds continue to pour into prime CBD assets.
The unnamed developer is currently carrying out due diligence on for 333 Kent Street, owned by AMB Holdings. 
The building, which measures nearly 9,000 square metres and is fully leased by Central Queensland University until 2017, last traded for $41.5 million in August 2010. 
In recent survey carried out by the US-based Association of Foreign Investors in Real Estate (AFIRE), Sydney ranked as the seventh most attractive city for offshore investors to buy commercial real estate.
The building is being marketed by Mark Wizel from CBRE, who has sold a number of development sites to Chinese groups, including 557 St Kilda Road in Melbourne, which was acquired by Setia Australia for $25 million. 
Over the past two years, Wizel has noticed a strong preference among Chinese buyers for development assets over passive investments, with the recent drop in the Australian dollar encouraging more offshore interest.
Wizel says Chinese developers have spent more than $180 million on development sites and plan to build about 3,500 apartments on these sites, the Australian Financial Review reported.
In addition, Chinese institutions are also seeking out more passive properties. Wizel expects them to start buying up office, retail and industrial assets and possibly apartment blocks in Sydney and Melbourne. 
Among these is Chinese conglomerate HNA Group, which has paid $117.7 million to acquire 1 York St from an unlisted fund run by Colonial First State Global Asset Management.
The purchase of the 22-storey B-grade office building is the first Australian investment for HNA Group, which plans to make further investments in Australia due to it have a stable economy, strong tenancy covenants and strong capital growth. 
DTZ acted on behalf of HNA while Colliers International represented Colonial.
For more on Asian investors in Australian property, download our free eBook <a href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets" style="color: #000000; font-size: 15px;" target="_blank">Foreign Investment in Australian Property Markets</a>
 
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Chinese developer set to buy Sydney office block as more Asian funds eye CBD properties

<html><body>
It’s not news to anyone that there has been a constant increase in the number of Chinese property buyers and sellers in Australia, particularly in metro city areas. In light of the Chinese lunar New Year, I find it timely to take a look at some of the taste and behaviour idiosyncrasies of this significant group of property actors. 
This article will refer mostly to Chinese residential buyers and sellers. While there are some similar behaviour patterns with Chinese commercial buyers and sellers, most commercial transactions are different as many involve syndicates rather than single players. 
I also would like to highlight that a level of generalisation is required to write an article such as this. The observations made in this article are from years of experience in dealing with Chinese clients and from the knowledge of my colleagues who are of Chinese origins and understand the finer details of the culture. 
The first mistake that many people make when discussing Chinese buyers is to group them all as one. The reality is that Chinese buyers behave very differently depending on whether they are overseas Chinese buyers, new Chinese immigrants, long-term Australian residents of Chinese heritage, or even Australian-born-Chinese buyers of the second generation. The main difference is due to their level of English as well as the level of familiarity, trust and comfort they have in the Australian real estate processes. 
The second mistake often made in understanding Chinese buyers is to assume all buyers of ethnic Chinese origins behave in similar fashion. A Taiwanese buyer can behave very differently from a Hong Kong buyer or a mainland Chinese buyer. Chinese Malaysians, Indonesians or Singaporeans likewise all behave in their own unique manner during property negotiations. 
While increasing sensitivity to Chinese buyers and sellers is becoming the norm in real estate transactions, many agents still only have a superficial understanding of Chinese clients. Many have a basic understanding of feng shui, or the preference for certain lucky numbers such as eight, and tend to focus on these in the marketing of properties. While this is certainly important for some Chinese buyers, it is not usually equally so for second-generation Chinese-Australians. Many properties with the supposedly unfortunate number four (meaning “death”) have sold for high prices to Chinese buyers. Therefore, while important to keep these cultural preferences in mind, it is not an all-consuming factor. Chinese buyers are rational, and they are not buying every single property that has an eight in the number. 
With this said, my colleagues and I have noticed a definite pattern of preferences with many Chinese buyers over the years: 
<ul>
<li>They like full-brick homes (as opposed to brick veneer, weatherboard or fibro – unless they plan to knock it down).</li>
<li>They like rectangular-shaped land.</li>
<li>They generally would prefer not to have a swimming pool. Swimming is not a big part of the Chinese upbringing and many Chinese-born children don’t know how to swim. Therefore a swimming pool is seen to be more a danger and a chore than a source of pleasure.</li>
<li>They like level and clear land with not too many trees (especially protected species such as gum trees, which are not always possible to remove).</li>
<li>They like low-maintenance properties (e.g. paved backyard as opposed to cottage-style garden).</li>
<li>They prefer high side of the street and generally dislike properties that have an entrance below street level.</li>
<li>They have a preference for newer properties and less of an appreciation for older-style features such as an ornate ceiling or picture rails, etc. Therefore, a heritage-listed property usually does not appeal to Chinese buyers.</li>
<li>Position is important, and many Chinese buyers will not want to purchase properties that are at a T-junction, for example.</li>
<li>Aspect is also important, and Chinese buyers typically prefer morning sun than afternoon sun.</li>
<li>Some feng shui-related features are important. However, so long as a “flaw” can be fixed, it shouldn’t be a huge problem. For example, some superstitious Chinese buyers believe it is bad feng shui to be able to see through from the front door straight out the back door. To them, this implies that money which comes into the house will immediately find its way out the door just as quickly. However, if some kind of partition or barrier can be built to disrupt this flow, then this problem is solved. This is quite unlike many non-Asian families who actually think it is preferable to have that cross ventilation and see-through aspect from the front door.</li>
<li>For any Chinese buyers with school-aged children, the proximity to their preferred school is almost always the main consideration. This is not surprising given the heavy emphasis on education by parents. </li>
</ul>
When it comes time to buy or sell, many Chinese buyers and sellers who may not be fluent in English would show a strong preference to deal with Chinese-speaking agents. This is why many Sydney suburbs (such as Chatswood, Eastwood, Epping, Strathfield, Campsie, and Ashfield etc.), which have strong Chinese demographic presence, also tend to have the highest number of Chinese-speaking agents. Quite often the Chinese agents are not necessarily the best when it comes to sophisticated or glossy marketing. However, their ability to communicate in the same language and build a relationship with the client gets them the business. 
At the end of the day, while recognising that there are distinct behavioural differences between Chinese and non-Chinese property buyers and sellers, it is also important to note that there are also similarities. For example, as is the case with anyone else, Chinese buyers also like to get a “bargain” when buying. They tend to be savvy property investors who are risk averse and rely on the advice of their family and friends. Earning their trust is important when dealing with them, regardless of whether it is on the buy or sell side. And just like any other buyers, once they are emotional about a particular property that meets their criteria, they are prepared to pay a premium if they can afford it.
Oliver Stier is the director of <a href="https://www.ohpropertygroup.com/" title="OH Property Group" target="_blank">OH Property Group</a>, a Sydney-based buyers agency. In addition to being a licensed real estate agent, Oliver also holds the Chartered Financial Analyst (CFA) designation. You can follow Oliver on Twitter at <a href="https://www.twitter.com/ohproperty">www.twitter.com/ohproperty</a>
For more on Chinese buyers and sellers of Australian property, <a target="_blank" href="http://propertyobserver.com.au/ebooks/free-ebook-foreign-investment-in-australian-property-markets">download our free eBook</a>.
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oliverstier-Cu9aF99VRm

Understanding Chinese property buyers and sellers

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The value of all 53,700 properties in The Hills Shire has been put at $26.45 billion.
It's represents a 10% jump on the 2008 total of $23.90 billion given by NSW Valuer-General Philip Western.
Western says landowners and rate-paying lessees are set to receive a notice of valuation given.
Over the three-year period since landowners in The Hills Shire LGA were last issued with the official notices, the value of residential land has generally shown a moderate increase.
It included a 2% increase in median residential values from $377,000 to $385,000 in the 2010-11 valuation year.
Rural land also showed a moderate increase over the three-year period.
In the north-most part of the shire rural land had shown a strong increase in value. Rural land surrounding Maraylya, however, shown a slight decrease in value.
But overall rural land recorded a decline in the last of the three years, when the median rural value eased from $661,000 to $650,000.
Commercial land values have generally remained steady, with some commercial properties in Kellyville and Castle Hill showing a slight increase in value over the three years.
The median value of business (e zoned, which is an "employment zone") commercial jumped in the most recent year by 6.6%, from $2.7 million to $2.88 million. The median value of b-zoned business ("commercial/business zone") commercial land was steady at $619,000.
The value of industrial land has shown a slight increase overall. Industrial land in North Rocks has shown a moderate decrease, while the value of industrial land in Castle Hill has generally shown a slight decrease. In the final of the three years the median value of industrial land eased from $3.62 million to $3.52 million.
Land values in the Rouse Hill development area generally showed a strong increase over the three-year period.
Typical residential land values were:
<ul>
<li>696 square metres at Bradley Drive, Carlingford valued at $441,000 </li>
<li>703 square metres at Carole Avenue, Baulkham Hills valued at $360,000</li>
<li>696 square metres at Carramarr Road, Castle Hill valued at $418,000</li>
<li>550 square metres at Greygum Avenue, Rouse Hill valued at $297,000</li>
<li>700 square metres at Huon Place, Bella Vista valued at $442,000</li>
<li>946 square metres at Kingussie Avenue, Castle Hill valued at $430,000</li>
<li>696 square metres at Thirlmere Avenue, Northmead valued at $391,000</li>
<li>550 square metres at Perisher Road, Beaumont Hills valued at $322,000</li>
</ul>
Typical commercial land values were:
<ul>
<li>917 square metres at Cecil Avenue, Castle Hill valued at $702,000</li>
<li>379 square metres at Kenthurst Road, Dural valued at $540,000</li>
<li>721 square metres at North Rocks Road, North Rocks valued at $425,000</li>
<li>456 square metres at Old Northern Road, Baulkham Hills valued at $709,000</li>
<li>335 square metres at Old Northern Road, Castle Hill valued at $684,000</li>
<li>1,868 square metres at Windsor Road, Kellyville valued at $907,000</li>
</ul>
Typical industrial land values were:
<ul>
<li>1.7 hectares at Annangrove Road, Rouse Hill valued at $3,400,000</li>
<li>6,620 square metres at Brookhollow Avenue, Baulkham Hills valued at $3,010,000</li>
<li>1.3 hectares at Hudson Avenue, Castle Hill valued at $5,670,000</li>
<li>8,083 square metres at Loyalty Road, North Rocks valued at $2,000,000</li>
</ul>
Typical rural land values were:
<ul>
<li>10.1 hectares at Floyds Road, South Maroota valued at $488,000</li>
<li>2 hectares at Jones Road, Kenthurst valued at $700,000</li>
<li>2.4 hectares at Nelson Road, Nelson valued at $704,000</li>
</ul>
 
 
 
<ul></ul>
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jchancellor-FAypfDUnLy

Land values in The Hills, NSW jumps 10% in three years

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The proliferation of information (spin really) about climate change and our own carbon tax doesn’t mean that it has become more understandable.  In fact, the opposite rings true.

Who really knows what happened in <a href="https://www.crikey.com.au/2011/12/12/what-i-did-on-my-trip-to-durban-by-greg/" target="_blank">Durban</a> last month, except that the Kyoto Protocol has been taken out of its casket and put on critical life support; the Gillard government got a breath of fresh air; some carbon-cutting decisions will be made in 2015 and then again in 2020; and $100 billion per year (yes $100 billion every year) will be spent on a Green Climate Fund.  Our contribution – if financing is direct – towards this fund will be between $2 billion and $3 billion per year.

Oh, and of course, there will be an even bigger United Nations climate change summit next year.  This time it is in Qatar. Qatar and a climate change summit is a perfect fit if you ask me as it has – well, according to Wikipedia – the world’s largest per capita production and proven reserves of both oil and natural gas.  Qatar also has the highest and fastest-growing GDP per capita in the world.  The main drivers behind this rapid growth are the production and exports of liquefied natural gas, oil and petrochemicals.  How bloody ironic!

Most don’t know that these talk-fests have been going on since the mid-1990s, when they were informally known as the Earth Summit.  Also ironic, again if you ask me, is that the 18 annual conventions held to date have delivered nothing but hot air.

Closer to home, the carbon tax is now law.  Starting from July 2012, a carbon tax of $23 per tonne will be levied on the 500 biggest polluters in Australia.  This will rise by 2.5% per year until an emission trading scheme kicks in.  The 2015 starting date for such a scheme is now somewhat up in the air, given the Durban outcome. Nevertheless, Climate Change Minister Greg Combet has declared that “Durban has delivered”.

Now depending on whose figures you use, it is suggested that about 10% of your carbon footprint is attributed to your own transport, another 10% is embedded in your home and another 17% or so goes into running that house.

The tell-tale figure is that about two-thirds (63%) of one’s carbon footprint is in what you consume.  So if you want to do anything about climate change, then you should focus on what you consume.  For example, our home household electricity bill – when using one of those online carbon tax calculators – will rise by about $300 or 10% in 2012-13.  The air-conditioning and pool filter are the two biggest culprits.

For the construction industry, the impact of the new tax falls into two categories: cost and demand.  In both cases it is difficult to determine the impact of the carbon tax with any great clarity.

In terms of cost, the new tax will affect the price of building materials and in theory, overall construction costs should rise.  But here is the stupidity of the whole thing, many of the trade-exposed industries, such as cement, steel, aluminium and glass-making qualify for up to 95% shielding from the carbon tax.  So while the MBA and HIA claim that costs will rise by as much as 2% or around $6,000 to build the average new home from July 2012 (and by as much as $13,000 over the life of a 25-year home loan), I do think the financial impact will be much less and more likely than not, negligible.

In fact, the two 0.25% recent rate cuts have delivered the average home owner twice as much savings (close to $28,000) in the interest payments over a 25-year period.

In addition, if you are building a home you can request a number of easy, cost-effective ways to reduce the amount of embodied carbon and energy contained within a new home.  This, too, will reduce its cost.  For example, you can specify fly-ash as a substitute for cement in concrete, which drops the embodied energy like a stone without – as I am told by <a href="https://www.lifestyle.com.au/tv/grand-designs/" target="_blank">Kevin McCloud from Grand Designs</a> – affecting a building’s structural integrity (whatever that means).

The effect of the carbon tax on housing demand is even more complex.  The scaremongers suggest a fall of about 17,000 new starts (about 12% on current demand) once the carbon tax starts from mid-next year.  But I don’t think it will have much impact on new housing starts at all.  In fact, it might get things moving again, especially if suppliers get innovative about building materials and the end housing designs on offer.  Again, the key to minimising the impact of the carbon tax is to reduce consumption.  New houses are much more energy- efficient than old, established homes.  More might start buying new homes over old ones again.

Now, for those malcontents who keep trying to push me down a “carbon tax will make new housing much more expensive” path – rack off.  Just because I think that a carbon tax and the whole climate change industry is a gross misuse of our time and money, and that we have much bigger things to resolve in the world than pretending to do something about an issue over which we have no real control – outside of China, India and America playing ball that is – doesn’t mean that I will roll over and spruik the housing industries’ dogma.

Nobody is listening anyway.  The number of respondents to online carbon tax polls rarely number in treble digits these days.  Blog replies rarely exceed 10.  Only 12 months ago literally thousands replied.  Tired of it all?  Or just more concerned about other things, like staying employed, paying the mortgage and keep ahead of the utility and school fees?

Both, me thinks.

PS Personally I would be more interested if I got the complete Grand Designs series for Christmas like I asked Santa for.  Well, maybe next year.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>.
 
 
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