Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

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The majority of people still believe wind farms can reduce the land values of nearby properties despite no evidence that this is true, two new reports on the renewable energy source have found.
About 53% of the 1,000 people surveyed in November by renewable energy company Pacific Hydro believe wind farms negatively impact on nearby property prices, and 30% totally disagreed with this assertion.
However, a report on community acceptance of rural wind farms by the CSIRO’s Science into Society Group found that to date the building of wind farms has not “necessarily lead to negative impacts on neighbouring property prices”. 
The CSIRO report notes an assessment of 78 property sales around the Crookwell wind farm between 1990 and 2006, which found no reductions in property values as well as a 2009 assessment by the NSW Valuer-General of 45 property transactions near six wind farms, which found there was no reduction in sale price for properties in townships with views of the wind farm.
Forty of the 45 properties did not sell at reduced prices, and there was no evidence that the decline in prices for the remaining five properties was caused by the wind farms.
Negative media stories could play a role in the perception that wind farms have a negative impact on property prices. 
Analysis of 49 articles about wind farms carried out by CSIRO found more reasons for opposing wind farms were reported in the media than reasons to support them.
Among the benefits noted by rural landowners who have allowed wind farms to be built on their properties include using the extra rental income to remain on the farm  after retirement.
They also said wind farms helped “conserve biodiversity, and prevent subdividing of land; communities benefit from a local wind farm through increased local business, community funds and local government revenue”.
One landowner said having a wind farm on their property could provide “a drought-proofing income stream for my property... Few farmers in this region could survive without off-farm income”.
Another said wind farms helped fund land protection.
“[With] a bit of money to put turbines on my property – that won’t devalue my property – we’ll be able to run less animals and put less pressure on the land and look after it a whole lot better, get the biodiversity happening as it should – that’s a good outcome for me,” a survey participant said.
Detractors said while wind farm might not reduce the actual value of a particular property, it could limit the market of potential buyers, such as those seeking to subdivide.
The report also produced evidence that wind farms could attract tourism, but at the same time found they can conflict with other tourism features.
It cites the Victorian Civil and Administrative ruling approving the Cape Bridgewater wind farm that the wind farm would add a “positive element to the landscape interest, and could become a significant tourist attraction in the South Gippsland area”.
One respondent to the survey said: “[The wind farm] has increased tourism; it’s put them on the map a bit. You know, they sell T-shirts and bumper stickers of our wind farm.”
But another respondent said the wind farm defeated the purpose of having a B&amp;B in a picturesque rural landscape.
Other complaints were that wind farms blocked up country roads during construction and that they changed the landscape.
The Pacific Hydro survey found strong overall support for wind farm developments, with 83% of respondents supporting their construction and only 14% opposed. Support is strongest South Australia (90%), the state that relies on wind-generated energy for 17% of its power, the highest across Australia.
More than two-thirds (69%) of respondents to the survey nationwide support the building of wind farms over gas-fired power plants (25%) and new coal power plants (6%).
Commenting on the results, Lane Crockett, general manager for Pacific Hydro Australia, says there has been “significant debate and media coverage on the effects of wind farms on health, wildlife and amenity”.
“However, this recent poll shows that there continues to be overwhelming support for wind farms, and the recent negative messaging and constant attacks by some in the community does not appear to be altering public opinion too much”
“It is clear from these results that people in regional Australia are drawing their own conclusions on wind energy and they are that they understand the benefits and want to see more of it.
“The results of this poll should serve as a clear message to politicians and policy developers in all three states that most people like wind power.”
<img src="/images/stories/electricity.gif">
Construction is currently underway to build the 500-turbine Silverton wind farm project near Broken Hill, which will generate 1,000 megawatts of power, making it the largest wind farm in the Southern Hemisphere.
There are currently 52 wind farms operating across Australia generating about 1.5% of the country’s total electricity generation.
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Most Australians erroneously believe wind farms will hurt property prices

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The Reserve Bank is likely to cut interest rates a further three times this year, Yellow Brick Road executive chairman Mark Bouris has forecast.
Three rate cuts of 25 basis points each would take the cash rate to 3.5%, with the RBA’s monetary policy committee next scheduled to meet on February 7.
The last time the cash rate was at or below 3.5% was in February 2009, when the RBA cut the rate by 100 basis points from 4.25% to 3.25% to stimulate recovery following the GFC.
Most economists, including Westpac chief economist Bill Evans, <a href="https://www.propertyobserver.com.au/economy/february-rate-cut-tipped-to-boost-australian-housing-market/2012011253030">are forecasting two more rate cuts this year</a>.
But Bouris believes both global economic troubles and local factors will force the RBA’s hand further.
“I don’t like to spread negative sentiment, but a number of factors have been presenting themselves that suggest we’re in for a rough ride and that the RBA will have to look at cutting official interest rates in the first six months of the year,” he writes in the Sunday Telegraph.
“I am picking as many as three rates by the RBA before Christmas.”
On the global front, Bouris points to last week’s warning by the World Bank that the sovereign debt crisis in Europe could tip the world economy into a second GFC.
In the local banking sector, he notes predictions by investment bank UBS that 7,000 banking jobs will go due to the slowest growth in lending in Australia since WW II.
ANZ has already announced that it will lay off 900 staff, and today Toyota says it will cut 350 jobs from its Altona plant.
The other local data Bouris says is pointing to three rate cuts are a 2.6% drop in job ads in December, with 29,000 jobs lost (though the unemployment rate has held steady at 5.2%), stagnant housing finance up just 0.2% between October and November and little movement in property prices of late.
“Yet while we’re starting to see many indicators of a flat economy, flat housing, low credit growth, a drop in job advertisements, we also have reasonably high inflation, which suggests an overheating economy.
“The Reserve Bank’s web site says inflation is now at 3.5% well above the Reserve’s own guidelines of keeping it at 2% to 3%... the result of what they call the two-speed economy.”
This, he says, creates a “conundrum” for the RBA.
Bouris says the RBA would usually raise the cash rate to cool inflation, but says it now has a “broader mandate than simply controlling inflation”.
“The RBA’s three mandated roles are stability of the currency; maintenance of full employment; and the economy prosperity and welfare of the people of Australia.
“I don’t believe that with the current global and domestic weaknesses the cash rate can be kept at settings that control inflation while hurting the general welfare of the people,” he says.
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Mark Bouris tips three rate cuts in 2012

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The single best indication of the correct reaction to today's inflation data was in the financial market's response. In short, there was big disappointment – the market was, as I had correctly predicted, positioning for a very low number, and proved way wrong. Those economists forecasting super-low core inflation prints of around 0.2% or 0.3% – one was even angling for a negative number! – were frankly blown out of the water with the RBA's two core measures averaging 0.6% (to one decimal place). 
The Aussie dollar jumped from US$1.047 before the print to US$1.052 after. More tellingly was the reaction of Australian government bond futures. The benchmark three-year government bond contract immediately plummeted 10 points from 96.74 to 96.64 as traders priced in higher long-term interest rates. The 30-day interbank futures contract also substantially reduced the probability of a rate cut in February, although it is still pricing-in a better-than-evens chance. 
There is little doubt that today's inflation data creates more complications for the RBA. The average of the RBA's two main core measures – the trimmed mean and the weighted median – was 0.6%. The Bloomberg consensus was 0.5%, but all economists expected the risks to be skewed to the downside. (Remember also this is an inflation estimate produced using the ABS's much-improved expenditure class and seasonal-adjustment methodologies. So there are no excuses for the numbers.) 
As I had canvassed here in previous columns, more issues arose as a result of upward revisions to past data. In particular, both measures of third-quarter core inflation revised up from 0.3% to 0.4%. Crucially, this leaves Australia's 2011 calendar year core inflation rate sitting at, officially, 2.6%, which is slightly above the mid-point of the RBA's 2% to 3% target band. The risk is that the fourth quarter also gets revised up, and the numbers start looking a little ugly for Australia's central bank. 
With interest rates now substantially below where they were in 2011, and the benefits of the remarkable Aussie dollar appreciation mostly behind us, it is hard to see how the RBA is going to be confidently forecasting the much lower inflation outcomes over the next two years it requires to justify more stimulatory policy than the one it already has in operation right now (with two pre-emptive rate cuts in November and December). Sure, if the economy starts growing clearly sub-trend, it could make the case. But today it is far more difficult, unless of course this RBA finds it easier to cut rather than raise rates. 
There is, to be sure, much water to still flow under this bridge before the RBA meets again in February. But only a fool would refute the notion that a rate cut in February has become another line-ball – or in UBS's words – “close” call.
 Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
 
 
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Firm inflation surprises market: Christopher Joye

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A modest increase in underlying inflation and the decision by the IMF to cut its global growth forecasts have increased the likelihood of the RBA cutting interest rates next month. 
Seasonally adjusted CPI rose 0.2% for the quarter – in line with economists’ estimates to be up 3% year-on-year. 
Fruit prices fell furthest during the quarter, down 13.4% due to a sharp drop in the cost of bananas, while costs also dropped for pharmaceuticals, vegetables and electronics. Domestic holiday travel, beer, telecommunications and rents all increased.
Underlying inflation increased by 0.55% (weighted mean of 0.5%, trimmed mean of 0.6%) in the December quarter to an annualised rate of 2.6%. Headline inflation for the quarter was 3.1% just outside the RBA’s inflation target range of between 2% and 3%, but below estimates of 3.3%.
RP Data’s Tim Lawless believes the inflation figure is good news for interest rates as does Channel Nine finance editor Ross Greenwood. 
“Headline inflation steady. Seasonally adjusted 0.2%. Lock in rate cut Tuesday week,” tweeted Greenwood. 
Financial commentator and TV host David Koch tweeted: “Inflation well under control so Reserve Bank should cut rates in 2 weeks.” 
However, economists are more divided on what the inflation numbers mean for interest rates. 
Rismark International and Yellow Brick Road director Christopher Joye says markets reacted to the inflation results with “big disappointment”. 
“The Aussie dollar jumped from US1.047 before the print to US1.052 after. More tellingly was the reaction of Australian government bond futures. The benchmark three-year government bond contract immediately plummeted 10 points from 96.74 to 96.64 as traders priced in higher long-term interest rates. The 30-day interbank futures contract also substantially reduced the probability of a rate cut in February, although it is still pricing in a better-than-evens chance,” he says. 
According to Joye, the February rate call is a line ball call, with the risk being “that the fourth-quarter [core inflation data] also gets revised up, and the numbers start looking a little ugly for Australia's central bank”.
Macquarie senior economist Brian Redican says the latest figures suggest inflation is “well contained” and will not surprise the RBA.
A rate cut, Redican says, will allow the RBA to “take out more insurance about the weakening global outlook; they can be more worried about those soft employment numbers”.
Rochford Capital currency director Derek Mumford says there might be a rate cut in February but it could be the end of the rate cutting cycle due to the increase in core inflation.
“That would suggest that in the short term interest rates can come down but perhaps the RBA will be less keen to cut rates sharply."
Ahead of the announcement Craig Michaels, senior economist at ANZ, said a 0.5% quarterly increase in underlying inflation would lend further support to its view “that the RBA has scope to further reduce rates, given the continued risk of European financial market dislocation, as well as a cyclical slowdown in Chinese growth and further labour market softness”.
The RBA board will also take note of the International Monetary Fund’s decision to cut its global growth forecast from 4% to 3.25% for 2012 principally due to a continued deterioration the Eurozone. This follows on from the World Bank cutting its economic growth forecasts to 2.5% in 2012 and 3.1% in 2013 – well below June 2011 forecasts of 3.6% growth for each year.
The IMF expects the eurozone to fall into a mild recession in 2012 after the crisis entered a “perilous new phase” toward the end of last year, affecting other parts of the world including the United States, emerging markets, and developing countries.
Olivier Blanchard, the IMF’s economic counsellor, says the global growth outlook is mediocre and could be worse. 
Speaking in Washington, Blanchard says “the world recovery, which was weak in the first place, is in danger of stalling”. 
“The epicentre of the danger is Europe, but the rest of the world is increasingly affected,” he says. 
Mortgage broker Loan Market says the RBA will need to reduce the official interest rate by at least 0.5 percentage points next month to pressure major banks into passing on reductions to customers.
Loan Market spokesman Paul Smith says the big banks have all indicated they might not be able to match a 25-basis-points cut to the cash rate should the central bank cut rates on February 7.
“The RBA will have to go hard with at least a 50-basis-point reduction at their next meeting and the latest official figures showing a lower-than-expected 3.1% annual inflation rate and prospects of rising unemployment support the need for a cut,” he says.
The major banks are coming under pressure from the IMF to raise their capital reserves as a buffer to a possible second GFC – a move that has been rebuffed by the Australian Bankers Association, which says it will force the banks to raise mortgage rates if implemented.
The ABA says the banks are already well capitalised and already implementing requirements under Basel III global banking reforms to hold higher levels of cash.
Holding higher levels of cash reserves would force the banks to ration credit and push up interest rates, the ABA has warned.
 
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Inflation result and global woes possibly put more pressure on RBA to cut rates

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Melbourne house prices increased 1.1% over the December 2011 quarter to a median of $538,000, the best result for all capital cities and the first quarterly rise since December 2010, according to Australian Property Monitors.
The December quarter result helped lift Melbourne to the position of second best-performing housing market in 2011 (behind Sydney) and the best-performing unit market.
Andrew Wilson, senior economist at APM, says the Melbourne improvement is being driven by increased buyer activity at the top end of the market while Sydney buying activity is coming from those at the bottom end.
Wilson says this result is significant “as it shows an end to a recent trend of falling prices over the past year, with the realistic potential for a sustained turnaround in some markets”.
“Looking forward, 2012 will provide mixed outcomes for housing markets, with some capital cities set to revive while others will remain flat.”
However, Monique Sasson Wakelin, managing director of Wakelin Property Advisory, disagrees that prestige buyers are pushing up Melbourne house prices.
“I disagree that it is being driven by the top-end prices. My view is the increase has been driven by upgraders with equity. It’s that group which have tended to anticipate the decline in interest rates,” she told the Australian Financial Review.
She maintains a cautious outlook, forecasting growth of 1% to 3% over 2012.
Recent December quarter figures put out by the <a target="_blank" href="https://www.propertyobserver.com.au/residential/melbourne-metro-house-prices-5.2-cheaper-than-a-year-ago-reiv/2012012253107">Real Estate Institute of Victoria </a> show a 36% increase house prices in affluent Kew and 14% gain in Prahran, but also strong gains in less affluent suburbs West Footscray (up 6.2%).
The outlook appears less rosy for Melbourne’s property investor market, with the <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-nation-s-strongest-and-weakest-capital-city-rental-markets-sqm/2012012453139">latest rental vacancy figures from SQM Research</a> showing the Melbourne vacancy rate rising to 4.4% in December with more than 16,000 properties now available for rent – up from 3.4% and 12,300 vacant rental properties in November 2011.
Melbourne’s vacancy rate is more than twice that of Sydney (2%) and significantly higher than the national vacancy rate of 2.5%.
The figures also coincide with data released today by ING showing that <a target="_blank" href="/news">Victorian mortgage confidence plummeted</a> during the December 2011 quarter.
Overall, house prices were unchanged over the December quarter according to APM, while unit prices declined marginally, down by 0.5%.
Hobart (0.5%) and Adelaide (0.5%) were the two other capital city markets to record price gains over the quarter, while Sydney house prices were unchanged at $637,000.
The worst-performing housing markets over the past three months were Brisbane and Perth, both recording a decline of 1.2%.
<img src="/images/stories/apmjan251.gif">
Nationally house prices were down 3.5% over the year led by Brisbane (down 7.5%), Darwin (7%) and Perth (5.2%). The best-performing housing market for the year was Sydney, with prices down a marginal 1.3%, followed by Melbourne, where house prices were down 3.1% in 2011.
Canberra was the strongest-performing market for units in the December 2011 quarter with a 2.9% increase in prices to a median of $414,000, followed by Perth (up 2.1%) and Darwin (1.1%)
Melbourne unit prices in Melbourne fell by 0.9% during the December 2011 quarter to just under $400,000 while Sydney unit prices softened by 1.1% to just under $450,000.
Nationally, units outperformed houses during 2011, with prices falling just 1.6%
Melbourne unit prices were virtually unchanged over 2011, down just 0.2% for the calendar year.
By far the worst-performing unit market was Hobart, with prices down nearly 16% for the year.
Of the big-city markets, Brisbane registered a 5.8% drop for the year, but a slight recovery in the December quarter with a 0.4% gain.
<img src="/images/stories/apmjan252.gif">
 
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Mixed messages in Melbourne's data as house prices increase slightly

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Melbourne
16,007 vacancies representing a 4.4% rental vacancy rate compared with 12,937 vacancies a year earlier in December 2010. 
Sydney 
11,106 vacancies representing a 2% rental vacancy rate compared with 9,504 vacancies a year earlier in December 2010.
Brisbane
6,278 vacancies representing a 2.5% rental vacancy rate compared with 6,908 vacancies a year earlier in December 2010. 
Adelaide
2,731 vacancies representing a 1.9% rental vacancy rate compared with 2,040 vacancies a year earlier in December 2010. 
Perth
1,565 vacancies representing a 1% rental vacancy rate compared with 2,339 vacancies a year earlier in December 2010. 
Hobart
559 vacancies representing a 2.4% rental vacancy rate compared with 303 vacancies a year earlier in December 2010. 
Canberra
482 vacancies representing a 1.1% rental vacancy rate compared with 389 vacancies a year earlier in December 2010. 
Darwin
405 vacancies representing a 1.7% rental vacancy rate compared with 665 vacancies a year earlier in December 2010.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/sqmjan25large.gif"><img src="/images/stories/sqmjan25.gif"></a>
Source: SQM Research
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The nation's strongest and weakest capital city rental markets: SQM

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Victorian’s mortgage comfort level has plummeted in the last three months, according to the latest ING Direct Financial Wellbeing Index. 
Over the last three months of 2011, the state’s borrowers have gone from being the most comfortable with their level of mortgage debt to being the least comfortable.
Victorian borrowers were the most confident in the September 2011 survey, leading the nation in comfort with their mortgage (5.6 out of a possible 7), household income (4.19) and personal savings (3.58). 
However, in the December 2011 survey, Victorian borrowers scored 5.3 out of seven – the lowest comfort level of all states despite having a relatively small median mortgage debt of just under $187,000. 
The index measures personal comfort level on a scale from 1 (“very uncomfortable”) to 7 (“very comfortable”).
<img src="/images/stories/comforting.gif">
Source: ING
“Victorians are falling behind financially,” says ING. “The fourth quarter of 2011 saw a significant plunge in Victoria’s household financial wellbeing as the state’s index score dropped to 101.4 down from 110.1 in the third quarter. 
“The state also recorded the nation’s lowest comfort ratings across five key indicators including comfort with long term debt, savings, ability to pay bills, income and investments. 
“In 2011 only 27% of Victorians gained ground with their personal finances – 36% fell behind (59% of low-income earners) with 77% blaming the increasing cost of household essentials. 
“One in four (25%) expect their personal finances to deteriorate further in 2012. 
“Higher taxes/levies and rising living costs are the chief financial concerns for 32% of Victorians, followed by fears of job losses (20%),” the report highlights. 
Further suggesting a gloomier outlook, a higher proportion of Victorians (40%) expect the economy to worsen in 2012 compared to a national average of 35%. 
Conversely Victorians feel more comfortable about their level of savings (up to 3.83 from 3.58), suggesting as shift towards deleveraging. 
About 41% of Victorians are making extra mortgage repayments compared with 36% of borrowers in NSW and the ACT. 
In contrast, mortgage holders in NSW and in the ACT are most comfortable about managing their mortgage repayments and other long-term debts, with the state achieved the nation’s top score for financial wellbeing of 109.1. 
NSW and ACT borrowers scored 5.9 out of 7 on the mortgage debt component of the index. Borrowers from NSW and the ACT have a median mortgage debt of $264,000. 
Only 21% of NSW households saw their financial situation deteriorate in 2011, compared with 32% nationally. 
One in three (31%) NSW households expect the economy to deteriorate in 2012, but 78% see their personal finances improving or holding steady this year. 
Including all six measures of financial wellbeing (mortgages, credit cards, savings, investments, household income and ability to pay bills), the state’s wellbeing index has improved from 108 to 109.1, and NSW and Western Australia have the joint highest overall comfort level of 4.4. 
According to ING, Western Australian borrowers are making the most effort to deleverage, with more than half (55%) making extra mortgage repayments.  The state has the smallest average mortgage debt of $159,000. 
Overall, the survey found that almost two-thirds of households (61%) are comfortable with their home loans with 41% ahead with their mortgages – though is down slightly from 46% in the third quarter. 
Although 35% of Australians expect the economy to deteriorate in 2012, only 22% of households believe their personal financial wellbeing will decline. 
The majority (75%) expect their financial position to improve or remain unchanged. 
One in four (27%) households hold less than $50,000 worth of assets, including equity in the family home (excludes superannuation savings). Over half (52%) have no investments at all outside their home and almost the same proportion (50%) have less than $17,000 in personal savings.
 
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Victorian mortgage confidence plummets: ING 

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For most of this year Australians have had to read asinine media articles reporting purported experts predicting catastrophically large 20%, 40% and, <a target="_blank" href="https://www.propertyobserver.com.au/residential/incredible-prediction-of-australian-property-bloodbath-excites-twitter/2012012053102">last week</a>, 60% falls in domestic house prices. 
The fact that these individuals have no experience successfully forecasting housing market conditions seems to be utterly inconsequential to the journalists desperately seeking to peddle doom and gloom. 
The best information we have today suggests that Aussie house prices will have tapered by around 3.5% over the course of 2011. That’s right: less than one-tenth the decline sensationally predicted by the closely covered doomsayers (no prizes for guessing who I am referring to here). 
Wiser readers will realise that this is history repeating itself: the same individuals expressed the same opinions during the global financial crisis only to see Aussie house prices surge over 2009 and 2010. 
And now we have mounting evidence that the housing market is staging a slow recovery, as I’ve projected in these pages for some time. The key catalyst appears to have been the RBA’s decision to swing 180 degrees from expecting to hike interest rates to cutting them in November and again in December. A low core inflation result from the ABS today would significantly increase the prospect of a third delicious rate cut for home owners at the RBA’s February board meeting. 
The first tangible signs of the recovery derived from RP Data-Rismark’s November house price index release, which reported a marginal 0.1% increase in seasonally adjusted dwelling prices. This was the first rise in capital city home values since December 2010. Importantly, even stronger capital growth was found across Australia’s “regional” (i.e., non-capital city) markets. 
A key question that will be resolved next week is whether this November data was a once-off or indicative of a more sustainable theme. More specifically, will the preliminary November month result revise up or down, and what will the index tell us about the highly seasonal month of December? 
Today a second leading house price index provider, Australian Property Monitors, has echoed these findings, reporting that nationwide house prices actually ground out a tiny gain over the December quarter (the three months inclusive of October, November and December). 
The main take-away here is not that home values are inflating again: it is, on the contrary, that they are not falling, or falling at an accelerating rate, as Steve Keen has predicted. 
In today's release, APM comments, “Median house prices have risen nationally for the first time since September 2010, indicating early tentative signs of recovery in the housing market… The rise in the national median house prices reflects activity in the Sydney and Melbourne housing markets over the December quarter.” 
APM’s chief economist, Dr Andrew Wilson, adds: “This result is significant as it shows an end to a recent trend of falling prices over the past year, with the realistic potential for a sustained turn-around in some markets.” 
The coincidence between the APM and RP Data-Rismark house price index paths is especially encouraging because they use markedly different methodologies. APM’s index is based on a “stratified median” technique pioneered by Dr Anthony Richards (and colleagues) at the RBA. RP Data-Rismark uses a more sophisticated hedonic regression approach. Over the long term, the two indices tend to move very closely together. 
The recovery in housing activity, which seems to be occurring more rapidly than perhaps even I forecast, is entirely understandable. 
Australians have benefited from a tremendous improvement in housing affordability. Capital city house prices have not increased since May 2010. In fact, they have tapered by a cumulative 4.5% (one bad day for the share market!). At the same time, disposable incomes per household have risen by about 14%. On a longer-term basis, Rismark’s analysis suggests that disposable incomes per household have outpaced capital city dwelling prices by more than 15% since the end of 2003. 
The final nail in the affordability argument is, of course, mortgage rates. The RBA’s munificence has bequeathed borrowers with home loan rates that are now well below their 15-year averages. Ubank is offering variable rates of 6.14% and fixed rates of just 5.93%. 
If the RBA cuts again in February, and further thereafter, as some analysts believe they will, expect to see the return of rapid house price appreciation. As I've said before, housing (and bank-intermediated credit growth) will be the chief beneficiary of any interest rate relief.
Christopher Joye is a leading financial economist and a director of Rismark International and Yellow Brick Road Funds Management. The above article is not investment advice.
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Aussie house prices could be on the rise again: Christopher Joye

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The total land value of the Coffs Harbour local government area sits at $6.558 billion, a 3.6% jump over the July 2008 valuations, according to NSW Valuer-General Philip Western.
New land values have been issued to the council today to use in the determination of rates of the 26,518 properties in the Coffs Harbour local government area.
Over the three-year period the value of residential land throughout central, west and south Coffs Harbour, Toormina, Boambee and Sawtell generally remained steady. In the last year the median residential holding was steady at $165,000.
Some residential land in the northern beaches area showed a slight decrease in value, the Valuer-General says.
Sustained demand for a limited supply of available good-quality property has resulted in slight increases in values of rural residential land across most areas, particularly throughout the well-regarded Crossmaglen, Bonville, Middle Boambee, Karangi, Korora, Sapphire and Moonee localities.
Commercial land values had remained steady.
The median business landholding was steady at $530,000 over the most recent financial year.
Industrial land values have generally shown a slight increase, with the exception of industrial land in the Orlando Street/Lawson Crescent locality, which has decreased slightly over the three-year period in the face of increased competition from other industrial centres.
The median industrial value rose over the last year by 1.3% from $288,000 to $293,000.
The value of larger rural holdings, including retreat homesites, grazing and horticultural holdings, has generally shown a slight increase over the three-year period. In the past year there was a small jump from $258,000 to $259,000 for the median rural landholding.
Land values for grazing and larger rural homesite holdings throughout the Orara Valley, Bucca and eastern Dorrigo Plateau localities have increased slightly as demand generally continues to exceed the limited supply of good quality properties.
Western says the 2011 valuation program included the analysis of 352 residential sales, 10 commercial, 22 industrial and 127 rural sales.
Typical residential land values were:
<ul>
<li>809 square metres at Thirteenth Avenue, Sawtell valued at $261,000 </li>
<li>1,014 square metres at Cutter Drive, Coffs Harbour valued at $295,000 </li>
<li>700 square metres at Abel Tasman Drive, Coffs Harbour valued at $150,000 </li>
<li>500 square metres at Thrower Avenue, Coramba valued at $125,000</li>
<li>646 square metres at Barnes Street, Woolgoolga valued at $155,000 </li>
<li>843 square metres at Burns Crescent, Corindi Beach valued at $145,000 </li>
<li>570 square metres at Rutland Street, Bonville valued at $155,000 </li>
<li>697 square metres at Paperbark Street, Sapphire Beach valued at $320,000 </li>
</ul>
Typical commercial land values were:
<ul>
<li>544 square metres at First Avenue, Sawtell valued at $510,000 </li>
<li>397 square metres at Harbour Drive, Coffs Harbour valued at $715,000 </li>
<li>498 square metres at Harbour Drive, Coffs Harbour valued at $560,000 </li>
<li>1012 square metres at Park Avenue, Coffs Harbour valued at $635,000 </li>
<li>323 square metres at Beach Street, Woolgoolga valued at $428,000 </li>
</ul>
Typical industrial land values were:
<ul>
<li>2,100 square metres at Craft Close, Toormina valued at $250,000 </li>
<li>1,853 square metres at Lawson Crescent, Coffs Harbour valued at $315,000 </li>
<li>1,623 square metres at Featherstone Drive, Woolgoolga valued at $195,000 </li>
<li>2,028 square metres at Isles Drive, North Boambee Valley valued at $410,000 </li>
</ul>
Typical rural land values were:
<ul>
<li>30.9 hectares at Ferretts Road, Nana Glen valued at $375,000 </li>
<li>66.1 hectares at Grafton Street, Lowanna valued at $325,000 </li>
</ul>
Typical rural residential land values were:
<ul>
<li>6,054 square metres at Fig Close, Bonville valued at $240,000 </li>
<li>6,021 square metres at McRae Close, Boambee valued at $270,000 </li>
<li>8,094 square metres at Mt Bishop Road, Karangi valued at $245,000 </li>
<li>1.262 hectares at Heritage Drive, Moonee Beach valued at $240,000 </li>
<li>3,166 square metres at Shearer Drive, Woolgoolga valued at $180,000 </li>
<li>1.1 hectares at Red Rock Road, Corindi Beach valued at $265,000 </li>
</ul>
Typical hobby farm land values were:
<ul>
<li>10.1 hectares at Irvines Road, Bonville valued at $430,000</li>
<li>10 hectares at East Bank Road, Coramba valued at $326,000</li>
</ul>
 
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Coffs Harbour land values up 3.6% over three years

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As economists tell the Australian government to ready for another round of economic stimulus, Australians for Affordable Housing is calling on state and federal governments to make creating more affordable housing a national priority. 
This follows the release of the annual Demographia International Housing Affordability survey of 325 global housing markets, which classified Australia as having no affordable markets in 2011, with the <a target="_blank" href="https://www.propertyobserver.com.au/residential/sydney-and-melbourne-in-the-top-five-least-affordable-cities-in-the-world-demographia/2012012353110">majority of those markets classified as “severely unaffordable</a>”. Housing is the biggest cost-of-living issue in Australia, and this report is further evidence of the need for proactive government action on this issue. 
Australia has the worst housing affordability of any national market outside of Hong Kong, which is a terrible indictment and shows just how serious this problem is. 
The survey classified Melbourne and Sydney as “severely unaffordable”, with the cities’ median house price 8.4 times and 9.2 times the median income respectively. 
Although Australia’s national unaffordability ratio reduced from 6.1 times in 2011 to 5.6 times this year reflecting a slight fall in house prices, we must not ignore the fact that this still leaves Australia’s housing as “severely unaffordable”. 
This makes it the right time for governments to prioritise spending on affordable housing and prepare a stimulus plan focused on social housing, in anticipation of further economic problems in Europe. 
Social housing spending was the unheralded success story of the last stimulus package.  It didn’t just keep builders employed but delivered massive social benefits to some of our most vulnerable and disadvantaged people. 
By contrast the boost to the first-home owner’s grant simply supported house prices at record levels delivering a boost to those vendors who sold rather than providing benefits to renters seeking to get into the market.
Sarah Toohey is campaign manager of <a target="_blank" href="https://housingstressed.org.au/">Australians for Affordable Housing</a>.
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