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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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RP Data has released a list of the 30 capital city markets where the number of days it takes to sell a house increased the most during the year to October 2011. The chart shows the time on market (TOM), e.g. Mosman Park houses take an average of 123 days to sell. The increase refers to the number of days, rather than  a percentage increase.
Click to enlarge
<a href="/images/stories/rpjan241.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpjan2412.gif"></a>
TOM= Time on Market
Increase is in days, not percentage
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Days on market blowout: the 30 worst capital city slowcoaches for house sales: RP Data

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When considering real estate investment one of the rules you’ll often hear quoted is “follow the population”.  An increasing population indicates work opportunities, investment in infrastructure and demand for housing – however, it doesn’t always result in the best long-term capital growth if this is the objective.
It’s always important to analyse the reasons behind any surge in population and conduct a risk assessment on the longevity of the move before committing to a purchase.  For example, mining towns attract rapid population growth and infrastructure development; however, because that growth is reliant on one industry, the risk of a quick reversal of the wheel is ever prevalent – even in mining the good times don’t last forever – hence investment in a mining town is all about “timing the market”, rather than “time in the market”.
For an example of a longer trend in population growth that can also be risky for investors, you need look no further than the city.  Back in the 1800s just 3% of the world's population lived in urban areas. By 1900, the number of people choosing to reside in a city swelled to almost 14%. By 1950, 30% of the world’s population were choosing city living above rural lifestyle and in 2008 – for the first time in recorded history – half the world’s population were living in towns and cities. Earlier this year, China recorded a 50/50 split between city dwellers and “ruralites”, and by 203 (assuming we’re not hit by a monumental plague) the number of people opting for a city lifestyle will swell to almost 5 billion – that’s 70% of the population.  Frightening statistics – especially when you take into account the challenges we already face feeding the earth’s 7 billion.
The top 25 “mega-cities” now account for over half the world’s wealth – 50% of which comes directly from within India and China – which are incidentally Australia’s largest migrant populations (now on the brink of outnumbering the European-born residents.) Here in Australia we have a population growth rate of 68%, well above the global average, which according to the “population reference bureau” is projected to grow around 38% by 2050.  We come second only to Saudi Arabia, which projects a growth rate of 74% by 2050.
Roughly 89% of our population live in urban areas, 64% of which reside in the capital cities – by 2050 this will increase considerably.  We’re seeing changes on a monumental scale and the effects on our housing, infrastructure and topography will be unprecedented. The borders of our cities will have to expand to eventually soak up the smaller satellite towns surrounding the capitals – for example, it’s feasible that Melbourne’s metropolitan area will one day include Geelong and Ballarat – and density in the inner suburbs will feature strongly.  Obviously it indicates investment in rural locations for purposes other than lifestyle is unwise as demand is likely to remain weak.  However, investing in a climate of rapid expansion requires a little more due diligence than simply “following the population” if the aim is to build the kind of wealth that results from long-term trends.
The approval of “mooted” residential developments is the first risk that must be evaluated to protect against periods of oversupply of any one type of accommodation.  For example, the massive projection of high-rise apartments in Brisbane and Melbourne has played a significant part in slowing – and in some cases reversing – the profit investors expected to achieve over the last three years principally because of the record numbers under construction.
The same scenario happened in Melbourne’s Docklands when it was established.  The apartments were flogged by sales agents taking their cut directly from the developers pushing prices up in a wave, however supply was never tight enough, or the developments attractive enough, to ensure ongoing demand.
There may be broad acceptance that apartment living will be the choice for a growing number of inner-city residents – and numbers moving into inner-suburban localities bear witness to this – however there’s currently no indication that high-density, high-rise apartments will ever attract the level of capital gain you can expect to achieve when a market is driven principally by owner-occupier demand.  Residents living in these apartments are mostly renters – not owners – therefore the demand is principally driven by one market – namely the investor market.
We’re often told <place><country-region>Australia</country-region></place> has a critical shortage of accommodation around our major employment centres – however this doesn’t mean you can purchase any accommodation and reap the rewards.  Our shortage of accommodation should not be confused with the general buyer market, which is principally a “shuffling of the cards” and not an indication of how many need a roof overhead – or an assertion that they’ll be prepared to purchase anything.
A better indication of Australia’s critical housing shortage comes from our vacancy rates, which remain well below the long-term average.  Investing next door to these job centres may attract renters – but it’s unlikely to attract the kind of growth you can expect to achieve in an owner-occupier-dominated market. Move in the wrong direction and it’s easy to walk into an investor-fuelled speculative bubble.
Jobs are transitory and many don’t want to – or can’t afford to – purchase close to their workplaces, therefore they choose to rent and make their “expensive” purchases in areas less industrialised and more appropriate for family accommodation.
Mining towns are good examples of this.  The buyers they attract are investors who want to gain positive yields from the number of workers requiring accommodation.  The capital gains are fuelled by increasing numbers of investors jumping onto the band wagon.  However the workers do not want to settle long term and therefore choose to rent, not buy – when the work dries up, the majority won’t be hanging around and losses occur as fast as the gains. Stories of investors falling foul of the market are common because they’re projected to the front pages of the media, however when the reasons are analysed it’s always possible to see where mistakes were made. There are no guarantees with any type of investment – but there are safe guards you can set in place to insure against the risk of loss.
Other risks resulting from simply “following the population” occurred during 2009, when masses of purchasers moved into the outer-suburban new estates buoyed on by the post GFC first-home buyer incentives. For example, in the year 2009-10 the areas attracting the fastest population growth were all located on Melbourne’s outer borders – Wyndham, Melton, Whittlesea, and Carndina.  The level of growth was unprecedented and capital gains were fast. Developers of new land estates inflated prices under the surge of demand, with some suburbs rising over 20% during the year. Yet the gain was short term – as soon as the incentives were pulled back most purchasers experienced a short-term loss. The pain was well publicised in the press during subsequent months.  Defaults went up, and the demand could not be sustained from the area attributes alone.
There are no fast and hard rules when it comes to property investment; most advice will have exceptions based on the idiosyncratic characteristics of the suburb.  However as a general rule try and seek out those areas where turnover is low with a good proportion of owner-occupiers to renters and a diverse range of accommodation.  Happy owners generally hold onto their properties during a market downturn and therefore short-term losses from an abundance of supply are minimised.  These areas are generally populated by generations in their middle years.  Families and mature couples in secure long-term employment benefiting from growing equity.  Risk minimisation is important, therefore sticking close to the suburb median is important to insure against market fluctuations – spending more doesn’t necessarily mean you’ll gain more.  Finally, always invest within your means: having good buffers to protect against job loss and absence of cash flow is primary.
Catherine Cashmore is senior buyer advocate for <a target="_blank" href="https://www.elitebuyeradvocates.com.au/">Elite Buyer Advocates</a>. With extensive experience in all matters regarding real estate, Elite Buyer Advocates purchases and negotiates more than $100 million worth of property each year for its clients.
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Population surges not always a good indication of a solid investment

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During the last quarter of 2011 there was a definite improvement in the US economy — with consumer spending up and companies finally replenishing their inventories.
GDP increased by an annualised 3%, with improved sales for durable goods and new homes.
Petrol prices have been cheaper since mid-2011, and the US jobless rate was the lowest in nearly 3 years.
Therefore, with improved employment figures, consumers have felt more comfortable spending — which represents around 70% of US economic activity.
And despite the European turmoil, the German economy has remained resilient — also growing by 3% over the past 12 months.
What does this mean for Australian commercial property?
In Australia, offices remain the preferred asset class for performance during 2012, followed by retirement property.
However, retail property was expected to be a negative performer after decades of strong rental price.
In contrast, the Property Council of Australia/ANZ survey found:
The office and industrial markets are particularly well placed, as reflected by the positive net balance of capital growth expectations for the sectors.
According to Jones Lang LaSalle, during last year $US400 billion in direct commercial property deals were made worldwide — which reflected an increase of 25% on 2010.
Bottom line: Australia's share of those deals was $6.5 billion in office towers during last year — <a href="https://www.propertyobserver.com.au/commercial/offshore-investment-in-australian-commercial-property-at-20-year-high/2011122052916">with 28% of those purchases being made by overseas buyers</a>.
And this <a href="https://www.propertyobserver.com.au/commercial/office-and-industrial-sectors-to-lead-commercial-property-growth-in-2012-pca-anz-survey/2012011153019">trend is expected to continue strongly during 2012</a>, and beyond.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Improved global outlook helps Australian commercial property

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Chinese buyers accounted for nearly a third of foreign purchases of Queensland residential real estate during the 2010-11 financial year, with record amounts spent on Gold Coast property, according to research compiled by Colliers International. 
The Gold Coast was China’s preferred local authority during the 2010-11 year, and they spent a total of $66.9 million (40% of the total amount spent by foreigners) in the area, followed by Brisbane with $30.4 million and Logan with $4.8 million. 
Gold Coast figures for 2010-11 were 128% higher than the previous year, when Chinese buyers spent $29.3 million – the largest amount spent by Chinese buyers in a single year since Colliers began to monitor foreign investment figures.
<img src="/images/stories/foreigninvestment.gif">
Tony Holland, Colliers International Gold Coast director of project marketing, says the Gold Coast is a favoured destination for Chinese and other foreigners because of its year-round sunshine and attractive lifestyle opportunities. 
Furthermore, with two expanding international airports – Brisbane and the Gold Coast – close by, it is easily accessible both domestically and internationally. 
In December 2011, China Southern airline announced it would launch up to four direct flights a week between Coolangatta and the Chinese city hub of Guangzhou by 2015. 
“Within five years China is expected to eclipse New Zealand as the Gold Coast’s number-one tourism provider,” Holland says. 
“With continued strong tourism, the popularity of the Gold Coast with foreign buyers is encouraging and, with the current stock of new apartments now down to a 10-year low, these figures should provide developers with confidence to commence new projects over the coming 12 months,” he says. 
While overall foreign investment in the Queensland has declined since the GFC (the 2007-2008 financial year), Chinese buyers have not been deterred, spending almost $107 million in the state’s property market over the year to June 2011, a 50% increase on the $71.5 million they spent in the previous financial year.
Colliers records 203 transactions by Chinese nationals in 2010-11 financial year – with $106.8 million the largest amount spent in a single year by Chinese buyers, notes Lynda Campbell, Colliers International Gold Coast research manager. 
Although the numbers are slightly down on last year, China buyers also dominated spending by foreigners across Brisbane, with a total of $30.4 million spent over 61 transactions. The year 2010-11 was the fourth consecutive year that Chinese buyers were the most prolific foreign purchasers of Brisbane property. 
More than three-quarters (77%) of property transactions by Chinese nationals in Queensland were for investment purposes, while the remaining 23% were for owner-occupation. 
During the past 10 years, China has spent a total of $366.3 million on Queensland property.
 
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Chinese appetite for Gold Coast property soars to record highs in 2010-11: Colliers

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Woolworths should consolidate its Dick Smith electronics chain into its existing Big W network, an analyst says, after a report called for the retail giant to close more than half the brand’s stores in favour of boosting Dick Smith’s online presence.
The report, written by CSLA analysts David Thomas and Richard Barwick and entitled Off With Dick’s Head, suggests Woolworths should close 189 of the chain’s 386 stores.
The CSLA report says the stores should be closed given Dick Smith is generating such a small return for Woolworths, posting $22 million in EBITDA in 2010-11.
“This is virtually irrelevant in the context of group EBIT north of $3 billion,” the report states.
It also notes Woolworths does not have time or money to make the chain into a key player, given it’s focusing on competing with Coles and the rollout of Masters.
Other analysts agree. Peter Esho, chief market analyst at City Index Asia Pacific, says it would make sense for Woolworths to consolidate the Dick Smith chain into its Big W network of stores.
“If you look at the footprint, there is a lot of overlap between Dick Smith and Big W, and we think it makes strategic sense to enhance them,” he says.
“We think it makes strategic sense to utilise the space there, and that would drive more traffic into Big W.”
Woolworths was contacted this morning, but a reply was not provided prior to publication.
The analysts say the recommendations could almost double Dick Smith’s profitability in the short term to $40 million, adding that a Woolworths divestment of the entire asset was unlikely in the current market due to expected difficulties in finding a buyer.
The report also notes that Woolworths would be reluctant to spend more money on Dick Smith. Esho says given the company is lagging market leader JB Hi-Fi, it makes more sense to integrate it with an existing business.
“It’s dominant, but it’s certainly not the most dominant player. The current position doesn’t really justify having a separate chain for electronics and Big W,” he said, also noting that Dick Smith’s online capabilities could integrate well with Big W.
“If you’ve got a competitive Big W with a well-defined consumer electronics strategy, it gives you the ability to try something else. For now, [rival discount department store] Kmart is just going to chip away on price in the consumer electronics market.”
The Dick Smith chain has been owned by Woolworths since the early 1980s, and started growing in 2001 after acquiring the Tandy chain of companies. It closed 320 stores in Australia, but the CLSA report still says there is a “massive gap” between the company and the next biggest thing, JB Hi-Fi.
Esho says moving the chain away into the Big W stores will allow the company to take new risks.
“If you put that chain into the Big W stores, it gives you more freedom to try other things. As of right now, there is no opportunity there.”
The prediction comes during a troubling time for retail. Just last week Speciality Fashion Group announced it may close more than 100 stores due to excessive rents and sluggish sales.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
Photograph by Kieran McGlone
 
 
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Analysts suggest Dick Smith should close 190 stores as pressure weighs on retail

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Housing affordability has improved marginally in Australia over the past year, according to the Eighth Annual Demographia International Housing Affordability Survey, but still remains “severely unaffordable” due to restrictive land release policies on city fringes.
Australia's national unaffordability ratio declined from a median multiple of 6.1 (median house price compared to median household income) in 2010 to the still “severely unaffordable” ratio of 5.6 in 2011.  The analysis was done by the self-titled “anti-urban research planning group” of 325 metropolitan markets in Australia, Canada, Hong Kong, Ireland, New Zealand, the UK and the US.
According to Demographia, to ensure housing bubbles are not triggered, housing prices should not exceed three times gross annual household incomes.
“To allow this to occur, new starter housing … must be allowed to be provided on the urban fringes at 2.5 times the gross annual median household income of that urban market,” it says.
Click image to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/afford.gif"><img src="/images/affordthumb.gif"></a>
Of the 32 Australian housing markets rated by Demographia, none rate as affordable (a median multiple of 3 or less) or moderately affordable (median multiple of 3.1 to 4).
Seven rate as seriously unaffordable (4.1 to 5) with 25 rating as severely unaffordable (more than 5.1).
The report is typically controversial, <a target="_blank" href="https://www.propertyobserver.com.au/residential/housing-affordability-in-australia-is-not-as-dire-as-you-think/2011121352823">with local housing pundits claiming its measures of affordability are inaccurate</a>.
However, Hugh Pavletich, who co-author’s the report with Wendell Cox, rejects the criticism and says the survey methodology is a measure recommended by the United Nations and World Bank Urban Indicators Programs and employed by Harvard University's joint centre for housing.
Sydney remains Australia’s most unaffordable housing market with a median multiple of 9.7. It has fallen below Vancouver and is now ranked the third most unaffordable major housing market in the world, with Melbourne ranking fourth. The list is topped by Hong Kong, with a “staggering” median multiple of 12.6.
Adelaide had a median multiple of 6.7, despite being the major market with the lowest demand in the nation. Brisbane (6) and Perth (5.7) are also well above the severely unaffordable threshold.
“Like Sydney, each of these markets has more restrictive land use regulation and has seen its housing affordability deteriorate markedly,” the report says.
“Housing affordability has improved substantially in Perth since 2006, when the median multiple was eight. However, Perth remains severely unaffordable.”
Each of Australia's major markets, with the exception of Sydney had housing affordability within the median multiple norm of 3 during the 1980s.
The five most unaffordable major housing markets (population of more than 1 million)
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="205" valign="top">
Rank
</td>
<td width="205" valign="top">
City
</td>
<td width="205" valign="top">
Median multiple
</td>
</tr>
<tr>
<td width="205">
1st
</td>
<td width="205">
Hong Kong
</td>
<td width="205">
12.6
</td>
</tr>
<tr>
<td width="205">
2nd
</td>
<td width="205">
Vancouver
</td>
<td width="205">
10.6
</td>
</tr>
<tr>
<td width="205">
3rd
</td>
<td width="205">
Sydney
</td>
<td width="205">
9.2
</td>
</tr>
<tr>
<td width="205">
4th
</td>
<td width="205">
Melbourne
</td>
<td width="205">
8.4
</td>
</tr>
<tr>
<td width="205">
5th
</td>
<td width="205">
Plymouth and Devon (UK)
</td>
<td width="205">
7.4
</td>
</tr>
</tbody></table>
Source: 8th Annual Demographia International Housing Affordability Survey
The seven most affordable markets are all regional locations, apart from one, the federal capital Canberra, which has a multiple median of 4.9.
The six other markets are Mildura and Shepparton in Victoria (4.2), Launceston in Tasmania (4.5), Bunbury in Western Australia at 4.6, Toowoomba in Queensland (4.7) and Albury-Wodonga on the NSW-Victoria border with a median multiple of 4.9.
Outside the major metropolitan areas, the most expensive markets are Coff's Harbour (NSW) at 8.4, the Gold Coast (Queensland) at 7.6, the Sunshine Coast (Queensland) at 7.5 and Geelong (Victoria) at 7.1.
The US-based organisation run by Wendell Cox, blames housing affordability problems in Australia, New Zealand, the UK and Ireland on restrictive land release policies
“Australia with its abundant land supply has the most pervasive housing affordability problem In recent decades, housing affordability has deteriorated materially across Australia, Ireland, New Zealand and the United Kingdom, virtually without regard to market size or demand,” says Demographia.
“The causes of massively deteriorating housing affordability are not a mystery. They inevitably result from more restrictive land use regulations adopted by governments with insufficient attention to economic fundamentals.
“This occurs even as virtually all governments profess housing affordability as an important public objective. Where land is rationed (by more restrictive land use regulation), house prices will rise. Thus, where house prices have increased substantially, they have been preceded by more restrictive land use regulation.”
All of the affordable major markets are in the US, while three of the moderately unaffordable markets are in Canada. One of the moderately unaffordable markets is in Ireland, with the other 16 in the United States.
The most affordable major market is Detroit, with a multiple of 1.6.  Atlanta is the second most affordable, with a multiple of 1.9.
The most affordable major metropolitan markets outside the US is Dublin, with a multiple of 3.4, and Edmonton in Canada, with a multiple of 3.5.
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Sydney and Melbourne among the five least affordable cities in the world: Demographia

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Click image to enlarge
<a href="/images/stories/affordabilityregulation.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/affordabilityregulationthumb.gif"></a>
 
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Global housing affordability - where Australian cities rank: Demographia

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The experience of a house fire is traumatic for anyone, but what happens when you are a tenant? Who do you call? What do you do?
The first point of call is usually the property manager.  But if you read the legislation there isn’t anything in there about fire, or what the process is.  It doesn’t outline the steps the property manager needs to take. Does the property form part of an owners’ corporation or is it a stand-alone house? Does the owner have insurance? If the property is inhabitable, where do you relocate the tenant to?  Who pays?
There are so many questions, so what’s the process?
Well, recently we had a fire, so I thought it would be an ideal topic.
Our situation is a unit within a development. Therefore the building insurance is taken out by the owners’ corporation.
We made the call to the corporation, and the people there advised they would notify the insurance company.
While our tenant was safe and uninjured, he was shaken up and there was some damage caused to his belongings. The fire brigade advised us the property was no longer habitable.
The next morning we inspected the damage. There was severe smoke damage throughout, a window had been blown out, the kitchen was destroyed and the carpets need replacement due to water, as did the gas ducted heating throughout.  All walls and ceilings throughout the house will need to be washed down and then repainted. All the electrical wiring will also need to be inspected. And the list goes on.
The building insurance policy will cover the rebuilding costs and provide the owner with rental assistance/income during the reconstruction. But did you know that that the carpet forms part of a landlord insurance policy and isn’t part of the building insurance policy? I bet there are lots of property managers and owners who don’t know this!
We meet with the tenant, who as you would imagine was still in a daze about the events of the past 12 hours. As he didn’t have anywhere to live, we reviewed what other properties we had available in the same area and showed him a property just around the corner. We obtained approval from that owner, we prepared all the required paperwork and done – the tenant had a new home.
We did what needed to be done. We did it quickly and with as little further stress or inconvenience to him as possible.
But what totally surprised me from the events of the past 12 hours was the seeming lack of care or interest from people at the owners’ corporation strata managers. They simply advised they would ring me on Monday and let me know what the insurance process was. They never offered once to call the tenant to see if he was OK. They never offered to assist either the tenant or us in finding another property. It was simply expected we would fix things. Someone had just lost his home, and they simply seemed to not care. It was almost like, “Well, Leah will sort things out. She will know what to do,” – but what about if I hadn’t known what to do? Where would this have left the tenant?
So the next time you are at an owners’ corporation meeting, perhaps ask your strata manager what steps they will you undertake if there is a fire at your investment property. If your property burns down or is inhabitable, what will they do to assist your tenant and property manager in this situation?
Their reply may determine if they continue to be the owners’ corporation for your property in the future.
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
 
 
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leahcalnan-pwE6GD6KY9

Fire in an investment property leaves unanswered questions

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Despite a modest recovery in the final quarter of 2011, the median house price in metropolitan Melbourne is down $30,000 compared with a year ago, according to the Real Estate Institute of Victoria.
The institute puts the median house price at $550,000, a minor increase of 1.9% from the revised September quarter median of $540,000, but 5.2% down on a median of $580,000 a year ago. 
The price decline equates to Melbourne metropolitan houses losing about $80 a day in value over the past year.
One of the best-performing suburbs of the quarter and the year was Prahran, with house prices up 14% for the quarter to $997,500 and 10.8% for the year. A year ago a house in Prahran cost $900,000, and the median in December 2011 is $997,500.
Affluent Kew recorded quarterly price growth of 36% with the median house price increasing from $1.18 million to $1.6 million (with about 60 Kew houses sold over the quarter, according to realestate.com.au) but does not feature on the <a target="_blank" href="https://www.propertyobserver.com.au/residential/top-10-suburbs-with-the-highest-annual-growth-in-2011in-victoria-reiv/2012012253105">list of the best-performing suburbs of the year</a>, indicating some record sales over the final quarter skewed the results.
The far-outer Melbourne suburb of Mornington (an hour’s drive from the CBD) recorded 10.9% increase in house prices over the quarter, with house prices increasing $50,000 to $510,000. Quarterly house price increases of around 10% or more were also recorded for Kensington (12.4% up to $725,000) and Port Melbourne (up 9.7% to $911,000).
Balwyn North (7.9%), Blackburn (7.4%), Wantirna South (6.9%), West Footscray (6.2%) and Mount Waverley (4.8%) all recorded strong growth over the quarter.
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>
 
</td>
<td>
Suburb
</td>
<td>
Dec 2011 median
</td>
<td>
Sept 2011 median
</td>
<td>
Quarterly change
</td>
</tr>
<tr>
<td>
1
</td>
<td>
<a target="_blank" href="/news">Kew</a>
</td>
<td>
$1,600,000
</td>
<td>
$1,175,000
</td>
<td>
36.2%
</td>
</tr>
<tr>
<td>
2
</td>
<td>
<a target="_blank" href="/news">Prahran</a>
</td>
<td>
$997,500
</td>
<td>
$875,000
</td>
<td>
14.0%
</td>
</tr>
<tr>
<td>
3
</td>
<td>
<a target="_blank" href="/news">Kensington</a>
</td>
<td>
$725,000
</td>
<td>
$645,000
</td>
<td>
12.4%
</td>
</tr>
<tr>
<td>
4
</td>
<td>
<a target="_blank" href="/news">Mornington</a>
</td>
<td>
$510,000
</td>
<td>
$460,000
</td>
<td>
10.9%
</td>
</tr>
<tr>
<td>
5
</td>
<td>
<a target="_blank" href="/news">Port Melbourne</a>
</td>
<td>
$911,000
</td>
<td>
$830,250
</td>
<td>
9.7%
</td>
</tr>
<tr>
<td>
6
</td>
<td>
<a target="_blank" href="/news">Balwyn North</a>
</td>
<td>
$1,154,500
</td>
<td>
$1,070,000
</td>
<td>
7.9%
</td>
</tr>
<tr>
<td>
7
</td>
<td>
<a target="_blank" href="/news">Blackburn</a>
</td>
<td>
$768,000
</td>
<td>
$715,000
</td>
<td>
7.4%
</td>
</tr>
<tr>
<td>
8
</td>
<td>
<a target="_blank" href="/news">Wantirna South</a>
</td>
<td>
$556,000
</td>
<td>
$520,000
</td>
<td>
6.9%
</td>
</tr>
<tr>
<td>
9
</td>
<td>
<a target="_blank" href="/news">West Footscray</a>
</td>
<td>
$515,000
</td>
<td>
$485,000
</td>
<td>
6.2%
</td>
</tr>
<tr>
<td>
10
</td>
<td>
<a target="_blank" href="/news">Mount Waverley</a>
</td>
<td>
$740,000
</td>
<td>
$706,000
</td>
<td>
4.8%
</td>
</tr>
</tbody></table>
Unit prices are down 4.2% for the year, with the median unit price falling from $475,000 to $450,000. Over the December 2011 quarter, units managed growth of 1.1%.
The strongest demand for units was recorded in North Melbourne, Armadale and West Footscray. 
Regional houses have delivered investors a better return over the past year, falling by just 0.8%. The median regional house price now stands at $312,500 compared with $315,000 a year ago. 
Of the three main regional centres, demand was highest in Bendigo, where the median house price increased by 6.3% to $294,000. In Ballarat the increase was 3.6% to $290,000 and in Geelong there was a drop of 2.3% to $380,000. 
“The REIV does not predict any significant change in the market during the March quarter as it is generally the quarter with the least activity, however we are starting to see signs that the market may have bottomed in 2011, and, if there are improvements in economic conditions, we may see an improvement in transaction activity from the second quarter of this year,” says REIV chief executive Enzo Raimondo. 
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="88" valign="top">
 
</td>
<td width="176" valign="top">
Melbourne house prices
</td>
<td width="176" valign="top">
Melbourne unit prices
</td>
<td width="176" valign="top">
Melbourne regional houses
</td>
</tr>
<tr>
<td width="88" valign="top">
Dec 11
</td>
<td width="176">
$550,000
</td>
<td width="176">
$455,000
</td>
<td width="176">
$312,500
</td>
</tr>
<tr>
<td width="88" valign="top">
Sep 11
</td>
<td width="176">
$540,000
</td>
<td width="176">
$450,000
</td>
<td width="176">
$310,000
</td>
</tr>
<tr>
<td width="88" valign="top">
Dec 10
</td>
<td width="176">
$580,000
</td>
<td width="176">
$475,000
</td>
<td width="176">
$315,000
</td>
</tr>
</tbody></table>
Source: REIV 
Commenting on the December quarter results, Raimondo says that demand in the local residential market improved marginally from the previous quarter, as did housing affordability, due to the two interest rate cuts; however, transaction numbers were significantly lower than for the same time the previous year. 
“REIV data confirmed that, overall, the median house price has not changed over the last six months; the key factors driving the current market are a combination of lower consumer confidence, a slowing state economy and an increase in supply,” he says. 
“Feedback from REIV members during the December quarter was that buyers are not as willing to buy and sellers are not as anxious to sell as they hold out for an improvement in conditions. 
“As we head into 2012, there is no doubt that housing affordability has improved with the combination of lower house prices and two interest rate reductions.”
 
 
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Melbourne metro house prices 5.2% cheaper than a year ago: REIV

<html><body>
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>
 
</td>
<td>
Suburb
</td>
<td>
Dec 2011 median
</td>
<td>
Dec 2010 median
</td>
<td>
Annual change
</td>
</tr>
<tr>
<td>
1
</td>
<td>
Prahran
</td>
<td>
$997,500
</td>
<td>
$900,000
</td>
<td>
10.8%
</td>
</tr>
<tr>
<td>
2
</td>
<td>
Mount Evelyn
</td>
<td>
$406,500
</td>
<td>
$377,000
</td>
<td>
7.8%
</td>
</tr>
<tr>
<td>
3
</td>
<td>
Surrey Hills
</td>
<td>
$1,212,000
</td>
<td>
$1,130,000
</td>
<td>
7.3%
</td>
</tr>
<tr>
<td>
4
</td>
<td>
Brighton East
</td>
<td>
$1,200,000
</td>
<td>
$1,123,000
</td>
<td>
6.9%
</td>
</tr>
<tr>
<td>
5
</td>
<td>
Lilydale
</td>
<td>
$490,000
</td>
<td>
$460,000
</td>
<td>
6.5%
</td>
</tr>
<tr>
<td>
6
</td>
<td>
Mount Eliza
</td>
<td>
$795,000
</td>
<td>
$750,000
</td>
<td>
6.0%
</td>
</tr>
<tr>
<td>
7
</td>
<td>
Williamstown
</td>
<td>
$905,000
</td>
<td>
$856,000
</td>
<td>
5.7%
</td>
</tr>
<tr>
<td>
8
</td>
<td>
Richmond
</td>
<td>
$853,000
</td>
<td>
$810,000
</td>
<td>
5.3%
</td>
</tr>
<tr>
<td>
9
</td>
<td>
Frankston South
</td>
<td>
$565,000
</td>
<td>
$540,000
</td>
<td>
4.6%
</td>
</tr>
<tr>
<td>
10
</td>
<td>
Rosebud
</td>
<td>
$380,000
</td>
<td>
$367,500
</td>
<td>
3.4%
</td>
</tr>
</tbody></table>
Source: REIV
 
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