The Victorian Government has secured the passage of the Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026, introducing a suite of reforms aimed at improving consumer protection and confidence in the apartment market.

Resilience Insurance, Australia’s leading Latent Defects Insurance (LDI) provider, has welcomed the move.

The LDI elements of the Bill passed with bipartisan support and now moves to the Legislative Council where debate and passage are expected later this month. It represents a significant milestone in the national shift toward stronger, longer-term protection for apartment buyers.&nbsp;

The reform would deliver practical benefits across the housing system. Apartment owners will have stronger protection if major defects emerge, developers and builders will have a clearer quality framework to work within, and the State will reduce the risk of serious building failures becoming a long-term financial and social burden for households, communities and government.&nbsp;

LDI helps support apartment delivery while providing stronger protection for buyers and encouraging better construction outcomes.&nbsp;

Resilience LDI provides apartment owners with 10 years of insurance-backed cover for major structural defects from completion, with direct claim access to the insurer. This means owners are not required to first pursue developers or builders through costly legal action before accessing protection.&nbsp;

Resilience Insurance has been operating in Australia since 2022 and has already insured hundreds of development projects covering many thousands of apartments across Australia.&nbsp;

At approximately 1.8 per cent of build cost, it is a cost-competitive alternative to the traditional two per cent Strata Bond, bond while delivering significantly broader and longer protection.&nbsp;

“The Victorian Lower House vote shows that reforms like this succeed when they are practical, evidence-based and supported by industry," says Corey Nugent, CEO of Resilience Insurance.

"Victoria is moving quickly on a reform that will make a real difference for apartment buyers, while supporting better building outcomes and greater confidence in apartment delivery.

“This is step one. We look forward to the Bill completing its passage through the Legislative Council and to working with government and industry to implement the framework effectively.”&nbsp;

Fast Facts: What is Resilience LDI?&nbsp;

<ul>
	<li>Resilience Latent Defects Insurance (LDI): Covers major structural defects for 10 years from completion.&nbsp;</li>
	<li>Consumer-first: Direct claim access, no need for lengthy legal action.&nbsp;</li>
	<li>Cost advantage: At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.&nbsp;</li>
	<li>Market leader: Resilience Insurance is the first approved LDI provider in NSW.</li>
</ul>

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026 has passed the Victorian Lower House, putting Victoria on track to become the first state to legislate an industry workable LDI framework as a formal alternative to the Strata Building bond. 

Joel Robinson

10-year Latent Defects Insurance for new apartment buyers set to land in Victoria

Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.

Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.

There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.

<img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" />

Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.

"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."

The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;

The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;

Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a>

Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a> 
&nbsp;

Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.

The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.

Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.

The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.

<img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" />

A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.

Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.

New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.

GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.

First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368853]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available.

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.

The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.

&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.

The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.

<img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" />

A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.

The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.

"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.

The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.

Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."

The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.

<img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" />

The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.

S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.

Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.

John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.

First look: S&S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street

New South Wales

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The Wategos Beach beachfront house of the late Sir Leslie Froggatt and Lady Elizabeth Froggatt has finally been sold.
The British-born Froggatt bought the dress circle property (centre above) on the fringe of Byron Bay for $66,500 back in 1970, the year after he became chief executive of Shell Australia.
The<a href="https://www.propertyobserver.com.au/https://m.domain.com.au/listing/2010759709" target="_blank"> 720 square Marine Parade property</a> sold recently for $3,735,000 through Ed Silk at <a href="https://www.edsilkbyronbay.com.au/sale/house-for-sale-wategos-byron-bay/" target="_blank">Ed Silk Byron Bay</a>, inconjuction with Martin Schiller, of Savills to the Melbourne lawyer Scott Stewart, a partner at Moray and Agnew.
It was initially listed in late 2007 when the Melbourne-based businessman, a former chairman of Ashton Mining, Pacific Dunlop and the Shell Company of Australia, had $8 million expectations. After his 2010 death, it was relisted last year with $4.5 million hopes.
The house was renovated with a dated Christine Vadez design almost three decades ago.
The sale reflected $5,180 per square metre land value, with minor access issues. 
Properties on either side have sold over the past five years at $12,600 and $13,700 a square metre.
The strip's record $15.68 million sale in 2006 was at $11,000 a square metre.
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jchancellor-FAypfDUnLy

Tide still receding at Wategos Beach, Byron Bay 

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The Housing Industry Association’s Housing Scorecard report has found that New South Wales is a strong performer, having rapidly turned around over the past six months.
HIA chief economist Harley Dale said that the rapid turn of fortunes for New South Wales is evident.
“Six months ago we noted there was momentum building in NSW and this has been confirmed by the latest analysis. NSW is now the second strongest residential building market in the country, having been ranked number five only six months earlier,” said Dale.
“Much of the recovery in NSW can be attributed to the surge in activity in the multi-unit sector, but the detached home market in NSW ranks among the strongest in the country. The renovations market remains a soft spot for NSW, but there are signs that conditions in this part of the market are improving,” he said.
Western Australia topped the overall ranking, ahead of New South Wales, and these two states hold the lead strongly.
However, while it’s positive news for New South Wales and Western Australia, it remains less so for Tasmania – recording the weakest residential building sector in the country.
“This is an unenviable position the state has now held for six consecutive quarters. There have been some signs of improving conditions in the Tasmanian economy, but we are yet to see this flow through into the residential building sector,” he said.
The ACT, Victoria and the Northern Territory are very close in the middle of the group, with South Australia and Queensland seeing improvement but remaining just slightly more subdued.
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New South Wales detached home building strongest in country: HIA

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The Bencluna homestead on 2.42 hectares in the Byron Bay hinterland has been sold for $815,000.
The historic property last traded in 2007 at $654,000 when bought by the Tyrer-Goring family.
<a href="https://www.realestate.com.au/property-house-nsw-eureka-117152999" target="_blank">Tim Miller of McGrath Byron Bay had been expecting more than $700,000</a>, securing the sale in the lead up to the weekend auction.
The restored and improved house comes with pressed-metal ceilings.
There is a study, attic bedrooms and a terrace overlooking the garden.
Eureka is about half an hour from the coast at Byron Bay.
Andrew Johnstone was the original owner of Bencluna.
Meanwhile the former home of Pete Murray, the singer-songwriter, has yet to sell the 1907 Eureka property, Carawatha (pictured below), <a href="https://uniqueestates.com.au/buy-residential-real-estate/house-eureka-nsw-13058110215" target="_blank">still on the market with a price guide of $1.65 million through Nicolette van Wijngaarden of Unique Estates.</a>
<img src="/images/2014/07/14/eureka%20july%2014%20two.jpg" alt="">
His former partner, Amanda Coutts, a shoe designer, bought the property in 2004 for $1.1 million.
The study in the five-bedroom property featured on the cover of Murray's 2008 album, Summer in Eureka. There is also a recording studio, which is used as an artist's workshop. 
It has been for sale since mid-2012, <a href="https://www.propertyobserver.com.au/https://blogs.wsj.com/scene/2013/02/26/farmhouse-to-studio-in-australia/tab/slideshow/#slide/1" target="_blank">receiving a Wall Street Journal editorial in early 2013</a>.
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Bencluna, the 1890s Eureka, Byron hinterland farmhouse, sells

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Confidence in the property industry continues to rise in New South Wales, according to the latest results from a survey of 2,300 property and construction sector professionals.
The state’s confidence was indexed at 143 for the September quarter in the Australian Property Confidence Index, with 100 considered neutral. Around 650 New South Wales property professionals were surveyed for the Property Council/ANZ Property Industry Confidence Survey.
Property Council NSW Executive Director Glenn Byres said the property industry is a driver of the “health and vitality” of New South Wales’ economy, pointing to gains from increased stamp duty receipts shown in the recent state budget.
“The industry has retained a rosy outlook and firmly re-established NSW as the most positive state in the nation,” said Byres.
“Forecasts for increased staffing levels, forward work schedules and state economic growth are all firmly planted on the right side of the ledger.
“There are some signs that the rapid increase in residential capital values may be easing – but like all other asset classes, it remains in the positive.”
David Cannington, ANZ’s Senior Property Analyst, says the state’s economy is expected to excel, underpinned by property and infrastructure projects.
“NSW confidence has increased sharply in the past 18 months to be at the highest level across all states and territories in the September quarter, reflecting the strong cyclical upswing in Sydney’s residential property market and solid foreign capital inflows to the NSW property sector,” said Cannington.
“We expect the NSW economy to continue to outperform over the next 12-18 months, largely driven by a solid pipeline of residential and commercial construction and increased state government capital expenditure on a number of large-scale infrastructure projects.
“Despite easing in recent months, housing sales and house price gains in particular remain strong, driving the September quarter outlook for the NSW property sector higher. Moreover, commercial property capital growth expectations remain positive in all sectors, driving expectations for cap rate compression across both prime and secondary grade office property in the coming year.”
Nationally, the Australian Property Confidence Index recorded a one point drop to 131 over the September quarter.
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jrichardson-uRX5hFdKfN

NSW property industry most optimistic in Australia: PCA/ANZ

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The media tycoon and occasional property developer Kerry Stokes has secured approval to develop one of Australia’s largest industrial estates, some 240 hectares near Newcastle.
Approval has been granted to Stokes's private company, Australian Capital Equity to proceed with its expansion of Northbank by the NSW Department of Planning &amp; Environment.
It is the former Austeel site.
The Northbank Enterprise Hub site was purchased from the NSW government in 2010.
The long-term project first stage of development at Northbank started with the $160 million WesTrac NSW and ACT operational headquarters.
WesTrac, one of the biggest dealers of Caterpillar machinery in the world and part of Seven Group Holdings, is chaired by Kerry Stokes.
The Tomago property will be marketed through Colliers International targeting logistics, distribution companies, warehousing and manufacturing companies. 
It is expected the lots will range from 5,000 square metres to 50 hectares.
He faces competition as the local paper reports the Hunter Corporate Park, a 300 hectare site in the buffer zone of the Tomago Aluminium Smelter on the other side of Tomago Road, is also in the early planning stages.
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Kerry Stokes's Northbank Enterprise Hub at Newcastle gets expansionary approval

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The sixth-generation wool grower Charlie ­Coventry has teamed with Ermenegildo Zegna in a wool production enterprise in NSW’s New England region.
The Italian luxury fashion label has bought into Achill, a 175-year-old sheep farm taking a 60% stake.
Achill is 2,564 ­hectares with 12,500 sheep in production of super fine wool.
Coventry was reportedly opposed to an outright sale to the Zegna Group as he loved his farm which was "in his blood."
He and Mr Zegna are setting up the venture with a wool buyer, Don Belgre, joining the company as the third ­member of the board.
“This joint venture is a clever move and one step towards invigorating the marketing of wool,” chairman of ­Australian Wool Innovation, Walter Merriman said.
Mr Zegna said Ermenegildo Zegna is not planning any further expansion into wool production, the AAP report noted.
Coventry says his 70-year-old father Tyrll can hang up his work boots, while his wife Dorianne, reckons she'll soon get a trip to Italy.
There was a Charles George Achill Coventry in the family history.
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Ermenegildo Zegna gets into NSW wool production for the first time

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Langston House, the 1892 Epping colonial residence, has been sold for $1.91 million.
<a href="https://www.mcgrath.com.au/buy/house-epping-nsw-2121/220788/?searchID=38977987" target="_blank">The house</a>, with pressed metal ceilings, sits on a 1,082 square metre parcel.
The Norfolk Road property last sold in 2001 at $700,000.
It was identified by the 1993 Perumal Murphy Wu heritage study and gazetted in 2001 on the local environment plan.
Epping's median house price sits at around $1.19 million, <a href="/news">according to RP Data</a>.
The colonial classic was sold by John Pearce, a senior executive at New Zealand's multi-national dairy co-op Fonterra, and his wife, Susan. They were the fifth owners.
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Langston House, 1892 colonial Epping home sells

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NSW Treasurer Andrew Constance has confirmed just how much Sydney’s real estate boom is adding to the general fortunes of the state.
The 2014 budget papers show that "a resurgence in the property market has significantly lifted transfer duties in 2013-14". Transfer duty, including stamp duty, contributed $938 million of state budget revenue. This result was seen as a ‘windfall’ and measures to further stimulate the rate of new home construction were also announced in the budget.
The Treasurer also announced that the threshold for the first home buyer $15,000 grant will be boosted to $750,000 – an increase of $100,000. From 1 July 2014, the NSW government will boost the threshold of the First Home Buyers Grant for new homes by $100,000, which means entry level buyers can spend up to $750,000 on a new property.
However extending this to established homes appears to be totally off the agenda given the level of demand and the increased prices over the last six to 12 months. Still, eligibility for the grant will from 1 July 2014 be restricted only to citizens who are permanent Australian residents.
The NSW government has also pledged to freeing up land supply and speeding the delivery of some infrastructure to help boost construction activity.
Property Plays a Big Part in State’s Economy
However when looking at the government’s revenue papers in the budget, it is easy to see how important a robust property market is. But at the same time the extent of revenue from property and some related areas may be placing too great a burden on the sector.
Comments in the budget also underline how relatively volatile, even fragile this revenue stream can be, and so I think it’s worth looking in more detail at some key points. What we can see is how reliant the government is on this revenue and why any move to abolish stamp duty as part of a possible review of state-based tax reforms looks a long way off, if ever, although remaining mortgage duty is being abolished in 2015.
One of the most telling figures in the revenue statement is the comparison between GST revenue and transfer duty. GST revenue in 2014-15 is estimated at $6.094 billion rising to $6.9 billion in 2017-18. By comparison transfer duty revenue in 2014-15 is estimated at $6.095 billiob but is anticipated to rise more than GST to $7.256 billion in 2017-18. On top of which Land Tax will add $2.4 billion – $2.8 billion in the same time frame, while we should not forget the parking space levy set to reach $115 million by 2017-18 and so adding these figures we see that by 2017-18 direct property related revenue for the state will be some $10.24 billion.
The budget papers do point out that the 2013-14 results were expected to increase by 20.5% but in fact the increase looks set to be closer to 35%. Further the current budget anticipated an increased volume of sales at 6% but the final figure was much more at 18%. And residential property prices have increased by some 10% over the past budget period, however those figures are not expected to be maintained, but any slow down is expected to be gentler than previous cycles. And in the four years to 2017-18 the government is expecting a growth rate of 7% over the four years. In today’s market this looks a conservative estimate.
What Has Been Driving These Figures
The Office of State Revenue might be expected to be conservative in its views, however key facts driving the revenue in 2013-14 have, according to the Office, been: historically low interest rates, pent up demand, under supply, improved consumer confidence and of course the obvious big increase in house prices.
When looking at the impact of house prices, the Office points out that activity was initially driven by sales of less than $600,000 but now strong growth in sales of homes valued over $1.2 million is apparent, however the Offices argues that this trend might also mark a peak in the housing cycle.
A Keen Eye Out for Strong Construction Activity
Given the potential of $10 billion in annual revenue by 2017-18 the government is also keen to keep the recovery in new construction on a robust footing. In the December quarter 2013 private sector dwelling approvals were 44% higher than the decade average, as were dwelling commencements while completion were 14% above the decade average.
The hope is that these strong results will continue over the next 4 years, as this appears vital for the health of NSW. However the reality is that the sector and those home buyers paying stamp duty (and that’s the majority) are doing some heavy lifting when it comes to government revenues and any adjustment to the GST needs to address this reality.
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New South Wales reliant on the property market for revenue

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Arding, which has been occupied by the CSIRO since 1947 in New England grazing country has been sold for $2.95 million.
<a href="https://www.realestate.com.au/property-other-nsw-uralla-7649179" target="_blank">CSIRO’s long-held Arding</a><a href="https://www.realestate.com.au/property-other-nsw-uralla-7649179" target="_blank"> research station</a><a href="https://www.realestate.com.au/property-other-nsw-uralla-7649179" target="_blank"> </a>is a 325 hectare (803-acre) Armidale property. The property sold under the hammer to Annette and John Cassidy of Merilba, Kingstown.
It was one of two portions of the pioneering White family’s Saumarez Station acquired by the federal government in 1947 for use by the fledgling Council for Scientific and Industrial Research (later CSIRO).
Arding and the other property, Chiswick, were initially used by the plant industry division for soil and pasture research, but The Land's veteran rural reporter Peter Austin noted since 1960 the focus of both sites has swung to animal, especially sheep, research dealing with breeding technology, internal parasites, nutrition, husbandry practices and information systems.
The 24 paddock Arding was listed to free-up funds for re-investment as part of CSIRO’s contribution to the University of New England’s Integrated Agricultural Education Project, involving five separate capital works projects across the university’s Armidale and Tamworth campuses.
It was listed through Geoff Leedman of Landmark Armidale with price expectations in the $6,000 a hectare ($2,400 per acre) or higher for the property situated 13 kilometres south of Armidale fronting the New England Highway.
<a href="https://www.nationaltrust.org.au/nsw/SaumarezHomestead" target="_blank">Saumarez</a> Station (pictured below), which is located about five kilometres south of Armidale, was one of the earliest grazing runs established on the New England tablelands during the 1830s.
<img src="/images/2014/07/07/saumarez.jpg" alt="">
Photo courtesy of the National Trust.
Henry Dumaresq, a former army officer and brother-in-law of Governor Ralph Darling, claimed a squatting station on the New England tablelands, naming it Samaurez in memory of his family connections with the Seigneur de Sausmarez in the Channel Isles.  
In 1857 the licensed pastoral run was sold to Henry Arding Thomas who sold Saumarez in 1874 for £40,000 and moved to Camden west of Sydney.
 The property’s new 1874 owner was Francis White.
When Elsie While died in 1981 at the age of ninety-seven, the homestead was gifted to the National Trust as an eduring example of a late-nineteenth century Australian pastoral station. 
The remaining 3,000 acres surrounding Saumarez homestead is still run by the descendants of FJ White.
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CSIRO sells Arding research station at Armidale for $2.95 million

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A new masterplanned estate from AVJennings has released its first stage, with homestead allotments and heritage protected countryside views.
The community, called <a href="https://www.avjennings.com.au" target="_blank">Arcadian Hills</a>, is in Cobbitty, New South Wales, some 60 kilometres south west of Sydney. The area is largely farmland, and it is a village near the more widely-known Camden.
<a href="/news">Cobbitty</a> is home to many amazing homes, including <a href="/news/amanpuri-one-of-the-great-estates-of-west-sydney-sells-for-5-6-million">Amanpuri that sold for $5.6 million earlier this year</a>.
This development will bring 457 country-style residences to the township, and also offer land-only sales in later stage releases.
AVJennings NSW’s executive general manager, Alan Soutar, said that the development is unique to the Camden LGA, and will be part of the growth already seen in the council area.
“The village of Cobbity has all the benefits of a wonderful rural community, yet the proximity to the future Oran Park Town and Camden making it a convenient place to live. Arcadian Hills will offer a tranquil family haven with a distinctive country feel,” said Soutar.
“The Arcadian Hills site was once home to a small village clustered around a historic homestead, with everyone from a blacksmith to a brickmaker and their families sharing a thriving community. Today, Arcadian Hills adjoins a 500 acre heritage area, providing never-to-be-built out neighbouring green pastures and bushland,” he said.
A fitness trail and cycleway will be included, as well as ‘Village Green’ areas and playground facilities.
Member for Camden, Chris Pattrerson, said that the development will appeal to those looking for a rural lifestyle but maintaining the conveniences of the suburbs.
 “We are pleased that AVJennings is investing further in the Camden region following the success of the company’s other local development, at Elderslie.”
The first stage includes six homes, with prices from $595,000, including both single and double storey properties.
The historic Lily Pond will be the centre of the development, with Stage One’s arterial road being Olive Hill Drive.
In February 2013, things were reportedly looking tough for AVJennings as they awaited interest to return to the house and land sector. As a result, they'd <a href="/expert-insights/buying/avjennings-awaits-the-return-of-confidence-to-house-and-land-buyers">cut the value of this development due to bureaucratic red tape</a>.
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