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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Asian buyers are expected to cast an eye over the tender documents for the Calderwood Valley Golf Course in the NSW Illawarra.
The 18-hole, par 70 Albion Park course was established in 1995 by the late Noel Smithers and his family, who enlisted golf course architects McKay and Sons to design the course.
<img src="/images/stories/calderwood2.jpg">
<a target="_blank" href="https://www.calderwoodgolfcoursesale.com/">The property</a>, located 20 minutes south of Wollongong, comprises 31 hectares of golf course and an additional 20 hectares, some of which is escarpment land and not able to be developed.
Two homes are on the holding, which straddles two local government areas – zoned 1 (a) agricultural with Shellharbour Council, and RU2 rural landscape with Wollongong Council.
Recreational land use as a golf course and accommodation has council approval in both municipalities.
{yoogallery src=[images/stories/jan24calderwood]}
It’s close to Delfin, Lend Lease’s approved 4,800-home Calderwood Valley Estate site. 
No price estimate was given for the property.
‘‘It’s rare to get a golf course, especially a profitable one like this, to sell, so it’s too early to even give an approximate on what this property could fetch,’’ agent Andrew Hedley from Bevans Thirroul told the Illawarra Mercury.
‘‘And what is different about this property as opposed to golf course fire sales, is that it is successful in attracting not only local players but also ones from Sydney and Canberra.’’
An adjoining 51-hectare farm is currently also for sale.
 
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Asian buyers tipped to consider Calderwood Valley Golf Course in NSW Illawarra

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Last year was a great year for office building owners in the Perth CBD. Net effective rents for A-grade properties jumped by 24% over the 12 months to mid-year and the vacancy rate started to decline dramatically, estimated to be less than 4% by the third quarter of 2011.
The impact of the two-speed economy is now particularly apparent in this market. Next year, demand is expected to continue to accelerate, however, there are a number of new developments that will help to moderate rental growth and absorb tenants.
A move to decentralise hovernment tenants to non-CBD locations will also assist in accommodating demand.
The Brisbane CBD is also experiencing significant demand, however the floods at the start of the year, as well as a significant pipeline of development have led to relatively flat rental levels. Next year, there will be two buildings completing, One One One Eagle Street and King George Central. Similarly to Perth CBD, these will help to moderate rental growth, however net absorption levels are expected to be high, with rental growth really starting to accelerate towards the end of the year.
Although the Brisbane and Perth CBD office markets will be the obvious beneficiaries of growth in the mining sector, other CBDs are also expected to benefit. According to Deloitte Access Economics, Melbourne is a world leader in the provision of front and back office services to mining, while the Adelaide CBD is likely to benefit from the Olympic Dam expansion, with the first stage of this expected to complete by late 2013.
Australian office property has been the <a href="https://www.propertyobserver.com.au/commercial/offshore-investment-in-australian-commercial-property-at-20-year-high/2011122052916" target="_blank">most popular investment category for overseas investors</a>. The total volume of Australian office property acquired by offshore purchasers increased from $644 million in 2008 to $3 billion in 2011, a 365% increase. Asian and North American investors were the dominant purchasers.
Next year, these volumes are likely to continue provided there are enough owners willing to sell. Globally, there is still a lot of capital looking for a place to invest and Australian property is attractive due to Australia’s high levels of transparency and relatively solid performance.
Poor economic performance in Europe and the US is a positive for Australian property from this perspective. It is expected that similar to last year, Asian investors will be the main purchasers.
The likely sellers next year are the REITS, with some indicating that they plan to sell non-core assets. It is also possible that private investors will look to capitalise on the strong demand for their assets. The main competitors for Australian property will be the wholesale funds that are also looking to buy.
Nerida Conisbee is national director of office research at <a href="https://www.colliers.com.au/" target="_blank">Colliers International</a>
For more expert forecasts for the property market in 2012, <a href="http://propertyobserver.com.au/ebooks/free-ebook-property-forecasts-for-2012" target="_blank">download our free eBook</a>.
 
 
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Perth and Brisbane CBD office markets to get mining sector boost in 2012

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Queensland architect DBI Design has won the coveted World’s Leading Hotel Award for its Etihad Towers project in Abu Dhabi at the World Travel Awards in Doha.
The Brisbane-based outfit was up against some the world’s leading architects including France’s Jean-Michel Wilmotte, who transformed two Art Deco Paris offices – originally designed by the distinguished 1930s architect Charles Letrosne – into the Mandarin Oriental Paris. Wilmotte is well known for his redesign of several wings and galleries of the Louvre Museum.
<img src="/images/stories/dbi2.jpg"> 
Other finalists were Jestico + Whiles for the W Hotel London, New York’s Skidmore, Owings and Merrill for The Park Hyderabad, Allan Murray Architects for Hotel Missoni Edinburgh, which is a UNESCO World Heritage site, and the American firm Kohn Pedersen Fox Associates for the Ritz Carlton Hong Kong.
<img src="/images/stories/dbi5.jpg">
DBI managing director Warren Coyle says he is delighted that Etihad Towers claimed the prize against such imposing competition.
Etihad Towers is a US$1 billion (A$962 million), five-tower project in Abu Dhabi’s exclusive beachside area of Al Ras Al Akhdar near the Corniche. It has three residential towers with 800 apartments, 200 serviced apartments, a 400-room Jumeirah hotel, 12 restaurants, retail space and a convention centre. Worked started in 2006 for His Highness Sheikh Suroor Bin Mohammed Al Mahyan.
<img src="/images/stories/dbi3.jpg"> 
“It is a very sculptural form, and the owner really liked that iconic style. He wanted a landmark and a statement to Dubai, so we set out to give him one,’” Coyle says. 
DBI was invited to enter the international design competition after one of the developers bought an apartment in the Ultra building on Broadbeach, which DBI had designed. 
DBI designed, engineered and fitted out the project mainly from its Brisbane office.
“Designing remotely from Australia was a challenge, and we were the lead consultant so had a great deal of control including structure, air-conditioning, and acoustics which was new to us and very challenging,” Coyle says. 
<img src="/images/stories/dbi4.jpg">
DBI is behind some of Brisbane’s most avant-garde buildings and is working on FKP’s AUD$210 million The Milton. 
“We can design projects that are truly world-leading,” says Coyle. 
The recent prize, which is considered the “Oscars” of the travel industry, has more than 5,000 companies from 162 countries competing in 1,000 categories. 
<img src="/images/stories/dbi6.jpg">
The prize is DBI’s first international award, although the firm has accumulated a swag of local awards. 
“This award so is a nice start for us on the international scene,” Coyle says.
<img src="/images/stories/dbi1.jpg" style="border-style: initial; border-color: initial;">
 
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andreadixon-oif3j7eKne

Queensland-based DBI Design wins award for Abu Dhabi hotel Etihad Towers

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A forecast that Australian property prices will fall 60% over the next few years has excited the Twitterverse.
The prominent property <a target="_blank" href="https://www.propertyobserver.com.au/residential/property-prices-to-fall-20-by-2013-year-s-end-steve-keen/2011101952000">doom commentator Steve Keen</a> has expressed ironic relief that another analyst has forecast even worse tidings than his longstanding forecast for the Australian property market.
United States analyst Jordan Wirsz forecast a 60% fall in Australian capital city house prices over the next five years.
<img src="/images/stories/keentweet.jpg">
“Thankfully someone taking the bear heat off me,” Keen tweeted today.
<img src="/images/stories/wirszwebinar.jpg">
Wirsz, a self-described author, speaker and real estate expert, <a target="_blank" href="https://trade-futures.com/australia_real_estate/australia_real_estate">gave a webinar on Australian property</a> this week. His webinar is available to be heard for $89.
News Ltd papers reported today his forecast that right now was not a time to be buying real estate in Australia.
“The market has slowed substantially but residential prices are likely to fall up to 60%, possibly even more, within five years," Wirsz said.
It reported his outlook was even grimmer for land, which Wirsz said being more speculative would plummet by as much as 80% and 90% in value.
Commercial property would shed at least 50% of its value, he told reporter Sonja Koremans.
Wirsz suggests a sluggish recovery would begin in 2016.
“If you are home owner, be cautious, get rid of your debt, consider selling if you don’t plan to be in your house for more than seven years and downsize or become a tenant," he said.
The only winners will be real estate agents cashing in on bank-owned properties, he added.
Properties in capital city would be hardest hit “because Australian cities are some of the most overvalued in the world and more speculative than regional areas", Wirsz said.
While the comments have been questioned by Tim Lawless at RP Data, other commentators have given the forecast some credence including economist, Stephen Koukoulas.
<img src="/images/stories/kouktweet.jpg">
“This looks ridiculously extreme: but many who've experienced a property crash still cannot explain why Aust is diff,” Koukoulas tweeted.
Wirsz says he has $500 million of real estate based transactions under his belt.
<img src="/images/stories/jordantweet.jpg">
Wirsz, a former fund manager and private capital financier, says he has been heavily involved and invested in real estate for over a decade.
“Jordan has seen the national real estate markets at their best, and at their worst.
<img src="/images/stories/wirszbookcover.jpg">
“Jordan has been featured on Fox News, CNBC, NBC, and many others, as well as having been recognized by members of Congress, Senate, and state government, awarded Young Entrepreneur of the Year by the SBA, Top 40 under 40, and has published four books,” his marketing screed says.
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A 60% price fall - Incredible prediction of Australian real estate bloodbath excites Twitter

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Administrators of Refund Home Loans have reportedly issued two draft contracts for the sale of the business, with a third contract expected to be drafted soon.
A letter from Refund Home Loans administrator SV Partners has been sent to franchisees advising them of the draft contracts, said industry website Australian Brokernews.
SV Partners is currently awaiting response on any amendments required to the contracts and has told creditors it is in their best interests for the negotiations to run their full course.
"Whilst the terms of all three offers are different, we believe that all three offers will provide creditors and franchisees with a better result than if the company is wound up and a sale does not occur," the letter says.
Refund Home Loans, which was started by Wayne Ormond, was placed in administration in October last year and <a href="https://www.propertyobserver.com.au/showcase/wayne-ormond-s-refund-home-loans-owes-creditors-millions-as-relations-with-franchisees-turn-sour/2011111652384" target="_blank">owes 119 creditors a combined $9.7 million.</a>
Creditors include Refund Home Loans franchisees, law firm DLA Piper, mortgage broking training provider Intellitrain and WA-based Ourimbah Holdings Pty Ltd.
A sale before Christmas had been targeted.
Before its collapse Refund was valued by Deloitte at between $40 million and $50 million, but the company struggled to obtain additional lines of funding after expanding into real estate services and financial planning and was forced into administration by its lender.
Ormond said in December that while he had managed to raise $1.5 million from two investors before the collapse, he could not raise enough money after the share market collapsed and the business environment turned sour.
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Three offers on the table to buy Refund Home Loans

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The ACCC is investigating whether it is in the best interest of consumers for some mortgage broking groups and lenders to make it compulsory for their brokers to be members of industry body the Mortgage and Finance Association of Australia (MFAA).
Two of the industry’s biggest franchise groups, Aussie Home Loans and Mortgage Choice, require their brokers to be members of the MFAA rather than accept membership of rival industry body, the Finance Brokers Association of Australia (FBAA).
Membership of the MFAA is not a requirement of the National Consumer Credit Protection Act, the legislation introduced in 2010 that requires brokers to be licensed and sets out standards for conduct and compliance.
In 2008, before the introduction of compulsory licensing, the ACCC granted permission to Mortgage Choice, Aussie and others to enforce the requirement (known as third-line notifications) that their brokers be members of the MFAA.
However, it is now seeking industry comment and has written to about 70 industry participants including brokers, aggregators, banks and ASIC as part of its review of this decision.
In the letter written by the ACCC to industry stakeholders it says it could revoke these notifications at any time "if it determines that the conduct to which the notification relates no longer delivers a net benefit".
The FBAA claims to be an industry body run by brokers for brokers and says on its website that “all but one elected executive positions are held by practising finance brokers in their own right”.
It says enforcement of compulsory MFAA membership is anti-competitive.
“[These practices] restrict consumers’ ability to have the right of choice as to which broker they use and what lenders that broker is able to access,” said FBAA president Peter White in the organisation’s ­submission to the ACCC on the matter.
The MFAA has strong lender representation and has been accused in the past of having a strong leaning towards the major banks, counting the Commonwealth Bank and NAB as its “platinum industry partners”.
Mortgage Choice has said previously that it would defend its decision requiring compulsory membership. 
“While we appreciate MFAA membership is not a conditional requirement of NCCP, Mortgage Choice is committed to the MFAA and strongly believes in the need for an independent industry association,” the franchise group said last year.
A spokesperson told Property Observer today it was "waiting to hear from the ACCC regarding their decision".
 
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ACCC reviewing compulsory mortgage broker industry body membership

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?There is little chance of a housing market crash this year, says HSBC chief economist Paul Bloxham as part of his macro-economic outlook for 2012. 

Bloxham says there are three main reasons why prices won’t plummet: the majority of households can service their debt; the undersupply of housing is growing at a greater rate <a href="https://www.propertyobserver.com.au/demographics/australia-s-population-up-1.4-in-2010-11-as-migration-slows/2012011953093" target="_blank">than the decline in population growth</a>; and there is strong demand for housing close to major urban areas. 
Bloxham expects these three broad factors to underpin the housing sector and remains “unconcerned about the possibility of a large decline in housing prices this year”. 
Expanding on the first of these factors, Bloxham says that while aggregate household debt is high in Australia, “it is well-allocated to households that can afford to service it”.
<img src="/images/stories/bloxham1.gif">
“Around three-quarters of household debt in Australia is held by the top two income quintiles. These households also typically have significant equity built up in their properties and assets. 
“Indeed, a significant proportion of this debt is held against a second property, to take advantage of the mortgage deductibility on investment properties. 
“Around one-fifth of Australian households have a second dwelling,” he says, adding that the tax system favours these investment properties. 
“Around one-quarter of all household credit is for the purpose of holding an investment property. Indeed, when making international comparisons of household debt levels, this is a critical point to keep in mind.”
<img src="/images/stories/bloxham2.gif">
He also notes that the debt-to-income rate has been broadly steady for the past five years, and has been declining modestly over the past year.
“Despite the decline in housing prices last year, non-performing housing loans also remained a very small share of total loans and significantly lower than in other developed countries.”
On the second point of housing supply, Bloxham says construction of housing is still “well below the cumulative demand that exists”.
“Most industry estimates suggest a shortage of around 100,000 homes, which is over two-thirds of one year’s production. While population growth has slowed to be in line with growth in the number of dwellings, construction has yet to catch up with the demand overhang.”
<img src="/images/stories/bloxham3.gif">
Lastly, he says there are significant constraints in the supply of additional dwellings close to the urban centres, and thus within a reasonable distance to employment in the urban centres.
“For these ‘high-quality’ dwellings there is strong demand and limited supply. Supply is constrained by zoning regulations, a lack of willingness of local governments to allow further urban infill in the major cities, and the lack of quality transport infrastructure.
“Despite its artificial nature, this is still a constraint. Unless this constraint is lifted – which seems unlikely to occur rapidly – the supply of dwellings close to urban centres will remain low relative to demand, supporting prices,” he says.
Bloxham says the main risk to the housing market is a sharper increase in unemployment, which he says is the “typical trigger of rising loan arrears”.
But, he says, the RBA has a powerful tool for providing support for the housing market and employment. 
“While we expect the unemployment rate to rise further from here, we expect it to peak around the middle of the year, before falling as expected RBA rate cuts provide support for the economy.” 
Bloxham expects the trend of households increasing their savings and reducing their borrowings to continue in 2012, but says lower interest rates should put a floor under house prices. 
“While increased savings can often be seen as a bad thing for the economy, especially when everyone does it at once, in Australia’s case it has occurred just at the right time: that is, at a time when household income growth has been strong,” he says. 
Bloxham forecasts housing credit growth to remain subdued in 2012, with household consumption slowing in response to a further modest weakening in the labour market, “though this should be partly offset by lower interest rates”.
 
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Three reasons why there is no Australian housing price bubble: HSBC's Paul Bloxham

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NAB’s highly regarded interest rate strategist, Peter Jolly, thinks that an RBA rate cut in February is only a 50:50 bet. I agree. Frankly, I see no need to cut rates at all. I don't buy the global recession line. And I am still worried about global (and thus Australian) inflationary pressures, especially in the medium term. 
As one portent, US core inflation has started bubbling up again: during the 2011 calendar year, headline inflation in the US rose by 3% while core increased 2.2% – both above the US Federal Reserve’s implied target. 
I certainly don't agree with Professor John Quiggin, who yesterday published an op-ed arguing that the RBA should drop its singular inflation target and instead focus on targeting economic growth (or nominal GDP). Central banks should concentrate, laser-like, on two things only: price stability (viz., inflation) and financial stability. Leave the rest to fiscal policy and the politicians. But forgetting what I think, because, in case you had not noticed, I am not the RBA, my best guess at this stage is, like December, February is a very “line ball” call for an eager-to-please, financial markets-enraptured central bank (it shouldn't be, but it is). Anyone claiming it's a “done deal” has not eaten their Weet-Bix for brekkie. One key wrinkle is this: if you believe that the four major banks – they are the financial system these days and really all that counts – are entitled to maintain their current world-beating returns on equity and should not have to eat any of the current funding cost increases (or heaven forbid, cut staff salaries), then an RBA rate cut in February will be all about major bank margin preservation. (And do you get the irony? Remember bank profits have nothing to do with the RBA's cash rate, or so we were told!)
All the hoopla around the major banks shedding a few staff is simply a PR campaign to explain to the public that times are very tough. It is the first salvo in a renewed attempt to maintain or expand major bank net interest margins, which are getting squeezed by higher funding costs. As I have pointed out too many times to count, there is another alternative: our government-guaranteed banks could simply target lower returns, lower profits and lower margins in recognition of their substantially lower risks (as a function of explicit taxpayer guarantees, new RBA liquidity facilities and lower leverage).
If the RBA cuts, it is entirely possible the banks pass on less than half, if any. So why cut in the first place? We've had two in succession already, which have yet to have a material impact – in fact, rate changes typically take two years to have their full effect. And the RBA is the first to admit it cannot forecast the future. December was a “weak-at-the-knees, let's dole out some insurance for our banking and financial market buddies” moment. The RBA has time on its side. The one real rider to this is inflation. And it is a D-Day of sorts for the February meeting. If core inflation prints super-low – say 0.3% or less again for the fourth quarter – and the third-quarter numbers don't revise up, then I would agree with the many newly minted-doves (wink, nudge, HSBC’s Paul Bloxham!) that the evidence is growing that the RBA can afford to furnish the economy with more rate relief. I still wouldn't cut myself, but that's just me. I care about savers as well as borrowers. Anyway, here is what NAB's Peter Jolly has to say: "The RBA’s Feb 7 decision…remains a close-call. [Yesterday’s] labour force report didn’t give us any fresh leads, as while employment growth is weak – exactly zero jobs were created in 2011 compared to 365k in 2010 – a bit surprisingly the unemployment rate has remained steady around 5.2% for the past six months. So downward pressure on wages and inflation remains modest. Data to watch will be Wednesday’s Q4 CPI (NAB economists expect a benign increase of +0.5%qoq/+2.4%yoy) and then December’s NAB Business Survey Tuesday week…All up, a Feb 7 rate cut remains close to a 50:50 call at this stage. Market pricing little changed over the week @84%."
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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RBA February rate cut still a 50-50 call: Christopher Joye

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Kryal Castle, the mediaeval-themed property set on the slopes of Mt Warrenheip about two hours' drive west of Melbourne, has been sold after several unsuccessful marketing campaigns.
Built in 1972 as a life's dream by the vendor, Keith Ryall, the tourist attraction and function centre is east of Ballarat, visible in the distance to commuters taking the Western Highway.
It’s been bought by Castle Tourism and Entertainment Pty Ltd, which is headed by Ballarat district publican Gary Browning. Its other directors include John Hatherley, a former Glencore operative, currently the chairman of Tadcaster Holdings in Singapore, the tourism and entertainment company that operates Molly Malone's, Singapore's first Irish pub. The other Castle Tourism directors are Melbourne regional tourism advisor Erin Joyce and the Singapore-based Mark Hinkley.
The consortium is said to be gaining inspiration from Britain's Camelot Theme Park and Alton Towers Resort, with plans for mediaeval-inspired rides, 3D theatres, jousting and other arena-style entertainment.
In mid-2010 Ryall and wife Joyce were approached with a flighty offer in the lead-up to the <a target="_blank" href="https://www.theage.com.au/victoria/brothel-owners-10m-plan-for-kryal-castle-20100721-10k5s">castle’s July 2010 auction from a Brunswick businessman</a> who planned to convert the 22-bedroom, 30-bathroom fortress into an adults-only entertainment venue.
The Leigh Creek vendors own farmland abutting the fortress, which comes with bluestone castle, moat, drawbridge, tavern and maze.
It has operated as a tourist attraction since 1974.
The official price of the sale of the 10.9-hectare property has yet to be registered, but price expectations were upwards of $1.5 million.
Late last year interested parties were being advised that $1.7 million would be needed to outbid the highest offer.
The property no longer appears on the website of Gerard Cosgrave of Harcourts Ballarat following its sale.
A call to the castle had a recorded message saying it is due to re-open for general admissions in mid to late 2012 after a refurbishment of exhibits and displays.
It remains available for specific events, such as this weekend, when INXS, fronted by Northern Ireland singer-songwriter Ciaran Gribbin, will perform at the castle in their Red Hot Summer regional tour along with Vanessa Amorosi and James Reyne.
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Kryal Castle white knights hope to revive Ballarat tourism destination after lengthy sales campaign

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Investment bank Morgan Stanley will pay US$1.1 billion (A$1.05 billion) to purchase the largest shopping centre in St Petersburg.
<img src="/images/stories/galleria.jpg">
The bank’s Morgan Stanley Real Estate Fund VII will purchase the Galleria Mall from Meridian Capital CIS Fund, a private investment fund backed by a group of Kazakh investors.
The transaction is due to be completed later this month.
<img src="/images/stories/galleria2.jpg">
Galleria cost US$380 million to build. It opened in November 2010 and has 250 stores occupying 93,000 square metres over five floors.
<img src="/images/stories/galleria3.jpg">
It includes a multi-screen movie theatre, a 27-lane bowling alley plus underground parking for 1,200 vehicles.
By comparison, Australia’s biggest shopping centre is the Chadstone Mall in south-east Melbourne, which is owned by Colonial First State. It has 126,000 square metres of gross lettable area and is valued at $1.53 billion.
 
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