Resilience Latent Defects Insurance (LDI) is not just an essential safeguard for structural integrity—it’s becoming a defining factor in how properties are valued, sold, and perceived in the market.

With Australia witnessing a gradual adoption of Resilience LDI, insights from international markets reveal a clear trend: properties with LDI sell faster, command higher prices and maintain stronger resale values.

This shift is beginning to reshape valuation assessments and market dynamics across the Australian property sector.

The Impact of LDI on Property Valuations

In countries where LDI is well-established, such as the UK, Saudi Arabia, USA and France, properties backed by LDI consistently demonstrate higher valuations compared to those without. The reasons are clear:

- Reduced Financial Risk: LDI protects against costly latent defects, offering buyers peace of mind that any structural issues will be covered without financial disruption.

- Enhanced Buyer Confidence: Knowing that a property is backed by LDI assures buyers of its quality and reduces hesitation during the purchasing process.

- Stronger Financing Terms: Properties with LDI are often viewed more favourably by financiers, enabling smoother and faster transactions.

In the UK, residential developments with LDI sell faster than those without, with a price premium of four to five per cent, depending on location and building type. This demonstrates the strong correlation between LDI and marketability.

Faster Sales and Higher Prices

LDI-backed properties have a significant competitive advantage in the marketplace. These projects:

- Attract More Buyers: With concerns about structural and waterproofing issues removed, buyers are more willing to invest in LDI-backed properties, particularly in high-density developments.

- Sell Quicker: The assurance LDI provides reduces the decision-making time for buyers, allowing properties to move faster through the sales pipeline.

- Achieve Premium Pricing: Buyers are often willing to pay more for the assurance that LDI offers, viewing it as a long-term investment in quality and reliability.

Australian developers who integrate Resilience LDI into their projects are already beginning to see similar trends. In a market where buyer caution has grown due to high-profile defect cases, Resilience LDI offers a competitive edge.

Robust Resale Values

LDI doesn’t just impact the initial sale of a property—it also has long-term implications for resale value. Properties with LDI maintain stronger resale prices for several reasons:

- Continued Coverage: LDI policies provide coverage for 10 years, giving subsequent buyers the same peace of mind as the original purchasers.

- Perceived Quality: The presence of LDI signals a higher standard of construction, which translates into higher buyer confidence even years after completion.

- Lower Risk for Investors: For property investors, the reduced risk associated with latent defects ensures that the property remains a stable and attractive asset.

The Australian Context: A Shift in Valuation Assessments

Australia’s valuation assessments are beginning to reflect the influence of Resilience LDI. Properties with Resilience LDI are increasingly being viewed as lower-risk investments, prompting valuers to assign higher values compared to similar projects without such coverage. This shift is particularly notable in:

- Multi-Residential Developments: Given their complexity and higher risk of defects, Resilience LDI-backed projects in this segment are gaining a significant valuation boost.

- High-Density Housing: Buyers and investors in high-density developments are prioritising properties with LDI, pushing demand—and valuations—higher.

Lessons from International Markets

In the UK, LDI-backed developments not only sell faster but also face fewer legal disputes post-sale, which further bolsters buyer and investor confidence. Similarly, France’s mandatory decennial liability insurance for new builds has created a market where properties with coverage enjoy better resale performance and stronger demand.

These international experiences provide a roadmap for Australia’s emerging LDI market. As developers, financiers and buyers increasingly recognise the value of Resilience LDI, its adoption is expected to become a standard for high-quality developments.

The Future of LDI in Australia

As Resilience LDI becomes more prevalent, its benefits will continue to shape the property market. Developers who adopt Resilience LDI for their projects can expect:

- Faster Sales Cycles: Properties with Resilience LDI will move through the market more efficiently, reducing holding costs and enhancing profitability.

- Higher Valuations: The assurance of defect coverage will drive demand, pushing prices higher for both initial sales and resales.

- Stronger Buyer Loyalty: Buyers who experience the benefits of Resilience LDI-backed properties are likely to return for future projects by the same developer.

For buyers, Resilience LDI offers unparalleled peace of mind, while for developers, it provides a critical differentiator in an increasingly competitive market.

A Win-Win for All Stakeholders

Latent Defects Insurance is no longer just a safety net—it’s a value driver. For developers, it’s a way to build trust, ensure faster sales, and command higher prices. For buyers, it’s a guarantee of quality and protection against unforeseen costs. And for the Australian property market, it’s a step toward a more accountable and resilient future.

The message is clear: Resilience LDI-backed projects are the future of Australian real estate. Developers who embrace this shift will not only see immediate benefits in valuation and sales but also build lasting trust with buyers and investors.

The game-changing insurance not only protects properties but also enhances their marketability, helping builders, developers and homeowners unlock greater value

Joel Robinson

Resilience Latent Defects Insurance: A catalyst for higher property valuations and resale confidence

Downsizers have become the most dominant buyer demographic at Harbour Shores, the new sustainable masterplanned community on the Gold Coast.

<a href="https://www.urban.com.au/developers/lewis-land-group">Lewis Land</a>, one of the longest-standing developers across the Gold Coast for five decades and the creator of the likes of The Sovereign Islands and Ephraim Island, launched <a href="https://www.urban.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters">Harbour Shores</a>&nbsp;just over 12 months ago, to much fanfare.

[smartcode_project:default project_id=113271 project_image_fid=290022]

The one, two, three, and four-bedroom apartments in <a href="https://www.urban.com.au/developments/biggera-waters-qld-4216">Biggera Waters</a>—an area with limited new apartment supply—attracted immediate interest from first home buyers, next home buyers, and investors.

With over 50% of the first building, The Waterline, already sold, including all of the one-bedroom apartments, attention has now shifted to the larger two, three, and four-bedroom apartments. These range in size from spacious 133 sqm to expansive 414 sqm waterfront residences.

The larger apartments have been particularly popular with downsizers. According to data from MatterFact, the data partner of Urban.com.au, the three-bedroom, 158 sqm apartments priced at $1.64 million have proven just as appealing as the two-bedroom apartments with multi-purpose rooms, which start at $1.35 million.

[smartcode_project:default project_id=113271 project_image_fid=290045]

The Waterline, named after its prime position directly on The Boardwalk fronting canal and the one-hectare feature park, The Green,&nbsp;has been designed to capture either water or park views to the north and east.

Every apartment will boast contemporary light-filled coastal interiors, each featuring a richness of timber and stone accents. The Waterline residents will also enjoy a private pool, expansive rooftop amenities and lush tropical landscaping.

[smartcode_project:default project_id=113271 project_image_fid=290031]

The $1.5 billion sustainable masterplan, set to house over 4,500 people by the mid-2030s, is the first Gold Coast development to achieve a 6-Star Green Star Communities V1.1 rating. It will feature eco-friendly elements like solar power, rainwater harvesting, and more than 200,000 native plants across the site.

Spanning 16 hectares, Harbour Shores is one of the last large-scale waterfront greenfield sites on the Gold Coast, a property that Lewis Land has owned for several decades. The development will include waterfront villas, boutique apartments, a public boardwalk, and expansive parklands, along with 1.2 kilometres of canal frontage and private marina berths offering direct boat access to the Broadwater.

Residents in the first stage of Harbour Shores are expected to move in by late 2026. Also completing around the same time to ensure early residents are well served will be The Green, a waterfront park and playground, and The Club, a central amenity with a resort-style pool, gym, yoga facilities, tennis courts, and versatile clubhouse spaces for entertaining.

&nbsp;

&nbsp;

[smartcode_project_cta:default project_id=113271]

At 16 hectares, Harbour Shores stands as one of the last large-scale waterfront greenfield sites on the Gold Coast, a site Lewis Land has held for over several decades

Downsizers drive demand at Lewis Land's Harbour Shores masterplan in Biggera Waters

Developer DVB Projects has been given the go-ahead to build another Broadbeach apartment development.

<a href="https://www.urban.com.au/developers/DVB-Projects" target="">DVB</a>, currently in the construction phase of&nbsp;<a href="https://www.urban.com.au/new-apartments/broadbeach-qld-4218">Sea Glass</a> in <a href="https://www.urban.com.au/new-apartments/broadbeach-qld-4218">Broadbeach</a>, has scored approval for another high-end tower at 137 Old Burleigh Road, replacing the 1980s, 12-unit Gala building on the prime 1,156 sqm site.

The new&nbsp;32-level tower, designed by <a href="https://www.urban.com.au/architects/rothelowman" target="">Rothelowman</a>,&nbsp;will home 39 half and full-floor luxury apartments starting from 230 sqm.

&nbsp;

<img alt="DVB" data-entity-type="file" data-entity-uuid="c5a530ee-6bdb-4b55-a653-a9fb8ab40f01" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-01-13%20at%2011.29.25%E2%80%AFAM.png?VersionId=7riWoBp7lPih1l24wvr07muXW3CMe3NW" />

The designs had to be tweaked a little after feedback from the Gold Coast City Council, namely around the podium design and accompanying landscaping.

After a seven-month process from application to approval, council cited several factors that align the project with the area's urban planning goals.&nbsp;

"The proposed development positively contributes to housing choice and affordability through the provision of 126 beds within the High density residential zone," council noted in its approval documentation.

"The proposed development provides a high density, high-rise outcome that is considered to be an efficient use of land within the light rail urban renewal corridor."

They said the&nbsp;proposed design incorporates adequate modulation and articulation as well as generous landscaping to soften the built form appearance, protect adjacent amenity, and contribute to the streetscape character.

The building will feature a whole floor of communal amenities on the podium’s sixth level and will feature a 20-metre infinity pool, plunge pools, a gym, sauna, barbecue areas, and private dining spaces.

<img alt="DVB" data-entity-type="file" data-entity-uuid="6196c2e2-6b56-472a-87d2-793dfab3dd24" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-01-13%20at%2011.29.19%E2%80%AFAM.png?VersionId=dSaJT.al7j3uE7sJTR7Q882ulKxfZBQd" />

&nbsp;

&nbsp;

The building continues DVB's efforts in the high-end space on the Gold Coast. Sea Glass, around one kilometre north of the new project on the corner of First Avenue and Old Burleigh Road, has 29 half and full-floor apartments, also designed by Rothelowman.&nbsp;

Sea Glass is currently under construction and is slated for completion in early 2027.

After a seven-month process from application to approval, council cited several factors that align the project with the area's urban planning goals

DVB approved for second Broadbeach apartment development

National developer Walker Corp is taking expressions of interest for its newest residential apartment developer, SOL by Walker in Maroochydore on the Sunshine Coast.

Prices start from $660,000 for the apartments which will form part of the $220 million mixed-use development in the heart of the <a href="https://www.urban.com.au/developments/maroochydore-qld-4558">Maroochydore</a> CBD, one of just a handful of greenfield CBD's in the world and Australia's first truly smart city.

<a href="https://www.urban.com.au/developers/walker-corporation">Walker Corp</a>, founded by the late pioneering developer Lang Walker, is one of the joint venture partners delivering the new Maroochydore City Centre alongside the Sunshine Coast Council and SunCentral Maroochydore.

[smartcode_project:default project_id=147777 project_image_fid=319853]

<a href="https://www.urban.com.au/new-apartments/sol-by-walker-maroochydore-first-ave-maroochydore">SOL by Walker</a> will feature two 19-level towers with 250 one to three-bedroom apartments and four-bedroom penthouses.

"Billions of dollars are being invested into the Maroochydore City Centre to create a purpose-built CBD for people to work and live, and these new apartments will offer terrific options for everyone from singles and families to couples and downsizers", Walker Managing Director and Chief Executive Officer David Gallant says. says.

“Within walking distance of the beach, major retail centres and the future Maroochydore Railway Station, the project will offer a range of products including over 50 one-bedroom apartments, which are in short supply on the Sunshine Coast.”

[smartcode_project:default project_id=147777 project_image_fid=319846]

Walker Corp's in-house design team has worked with Plus Architecture to carefully curate communal spaces for residents, including a sunlit recreation deck with a 20-metre pool featuring a family-friendly shallow area, spa and cold plunge pools, saunas, steam rooms, BBQ facilities and dining areas.

<a href="https://www.urban.com.au/architects/plus-architecture">Plus Architecture</a> Principal Chrisney Formosa described the architectural vision. 
 
"Drawing inspiration from the Sunshine Coast's natural beauty, SOL seamlessly integrates coastal living with urban sophistication. Our design delivers spaces that harmonise with the local climate, prioritise user comfort and foster community connection.”

“Every element, from the subtropical landscaping to the innovative amenities, has been meticulously crafted to redefine city living in Maroochydore."

[smartcode_project:default project_id=147777 project_image_fid=319847]

The apartments will sit above a three-level commercial and retail podium that will activate the ground plane.

SOL by Walker will rise from a prime site on the corner of First Avenue and South Sea Islander Way, a short walk to Sunshine Plaza&nbsp;

[smartcode_project_cta:default project_id=147777]

SOL by Walker will feature two 19-level towers with 250 one to three-bedroom apartments and four-bedroom penthouses

Walker Corp reveals SOL by Walker, Maroochydore apartments

Rhett Williams' RG Property Group is the latest to join the residential apartment development scene in the booming Brisbane Games Precinct around Woolloongabba.

RG Property, a diversified developer predominantly playing in the shopping centre and office space nationally, recently acquired the 1,619 sqm site at 169 Wellington Road, East Brisbane, just 800 metres from The Gabba. The site purchase came with approval for a 50-unit, eight-level building.

The developer is seeking to push the height to 10 levels, and increase the density to 72 apartments.

Now on offer will be nine one-bedroom apartments, 36 two-beds, and 27 three-bed apartments. A rooftop will home swimming pool, pool deck, a bar, and a barbecue and alfresco area. There will also be a gym on the podium level.

<img alt="Rooftop" data-entity-type="file" data-entity-uuid="7fa7be62-7ac8-403b-bd3d-651c224b8507" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-01-09%20at%203.07.28%E2%80%AFPM.png?VersionId=Y1fPPvWPgoNmUuVhfk__JaRXRXRuE0SS" />

MAS Architecture has come in for the redesign of the building.

The tower is to be called The Banksii, in response to its design that was inspired by the Banksia flower.

In the documents submitted, MAS said the design concept draws deeply from the Grevillea Banksii, a flowering plant native to Queensland which is&nbsp;mostly found on the Queensland coast from Ipswich to Yeppoon, but sometimes further inland. The shrub, or slender tree, has divided leaves with four to twelve narrow lobes, and creamy white to bright scarlet and yellow flowers.

MAS said the 10-level residential tower is "poised to redefine East Brisbane’s urban fabric."

"Framed by the city skyline to the north, the river to the east, and parklands with mountain vistas to the west, the site presents a rare opportunity to celebrate Brisbane’s distinct landscape.

"The re-imagined ground plane aims to anchor the building within its context, combining landscaped elements with communal spaces to enhance its connection to the streetscape. The architectural design responds by creating a striking yet contextually grounded presence, balancing inspiration from nature with a refined urban sensibility."

<img alt="East Brisbane" data-entity-type="file" data-entity-uuid="29c62e47-db1c-4a13-bfa0-19a69bf757f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-01-09%20at%203.07.37%E2%80%AFPM.png?VersionId=.KkSmV_o4bux1FDVYRr39h2cz0tadKsX" />

Town planner Urbis noted that, whilst the proposal is generally consistent with the existing approved development, there are additional elements that elevate the design, liveability and public realm to achieve a significant improvement compared to the previous design.

"More glazing has been incorporated to maximize the views of Raymond Park and improve the flow of natural light to each apartment within the tower."

RPG held a pre-lodgement meeting with the Brisbane City Council in October, with the council supportive of the proposed amendments, agreeing that the&nbsp;amendments were relatively minor in nature.

The development will include a laneway that will partially open to the sky and connect Wellington Road to&nbsp;Manilla Street. It will also provide the opportunity for a public art installation.

RG also has approved plans for a former bread factory in Fortitude Valley. The plans 15-level tower, rising from the heritage-listed building that would home 118 apartments, were approved in 2023.

The Woolloongabba precinct is a buzz with both private and public infrastructure projects. Mosaic has a second project in Kangaroo Point <a href="https://www.urban.com.au/new-apartments/77-linton-street-kangaroo-point">pending launch on Linton Street</a>, while Sarazin is currently developing <a href="https://www.urban.com.au/new-apartments/murcia-residences-east-brisbane-9-overend-street-east-brisbane">Murcia on Overend Street</a>.

The developer is seeking to push the height to 10 levels, and increase the density to 72 apartments

First look: RG Property files for Brisbane Olympic Games precinct apartment tower

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.

Urban Editorial

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?

A number of people ask - what is the settlement process when buying off the plan property?

The simple answer is that the process is one part of the off the plan buying journey that isn't too dissimilar to buying in the established market.

The major difference is the time from exchange to settlement, given the off the plan property isn't built yet. The standard settlement for established property is around six to eight weeks.

This however has a number of pros for off the plan buyers.

One of the biggest is that the price paid for the property at the time of exchange doesn't change. Even if the value of the apartment has risen during construction, buyers will still settle on their apartments at the same price agreed.

The settlement date will be forecasted in the contract, as to when the developer believes the building will be complete, and the certificate of occupancy is obtained. Then settlement can start to occur and buyers can move in.

The settlement date forecast is another pro for buyers. While this date can chop and change due to a number of reasons, least of all delays in construction, labour, and materials, it gives the buyer a ballpark future date where they need to have their finances in shape to settle.

By paying a deposit you lock in that price, and you might not be required to pay the rest of the deposit for two or three years, if the construction timeline is that far away. This allows buyers years to save up the rest of the money while their yet-to-be-built property potential grows in value.

The settlement date estimate also puts a time limit on buyers as to when they should either vacate their current rental, or put the wheels in motion to sell their current home.

If you're thinking of purchasing an off the plan apartment, it's a good idea to speak to a conveyancer or solicitor who can advise you on the settlement process and help ensure that everything goes smoothly.

A number of people ask - what is the settlement process when buying off the plan property?

Off the plan property settlement - how does it work?

Arguably floor plans matter more in off the plan property than any other type of property.

In established markets, the floorplan is the floor plan. That's it, barring renovations.

But in the off the plan market, there a number of factors to consider when analyzing floor plans, and a number of questions to ask agents and developers when discussing buying an off the plan property.

First there's the floor plan size.

Floor plan sizes advertised by agents or developers can differ hugely state by state, so it's important to understand whether you are being pitched a property's internal size, or total size.

Internal size is the measurement of the internal floor area of an apartment, and is typically measured in square metres (m²). External size is the measurement of the external dimensions of an apartment, be it a courtyard or a balcony, but sometimes it can include a parking space or storage cage.

Generally, off the plan apartments are advertised with their internal size, as this is the size that you will have to work with when furnishing and decorating your new home. It's important to be aware of external size, however, as this will give you an indication of the overall size of the building and how much outdoor space you will have access to.

When considering internal vs external size, it's important to keep in mind that internal size may vary slightly from the advertised size due to the internal walls of the apartment. External size, on the other hand, is usually accurate to the advertised size as it's based on the overall dimensions of the building.

Another thing to consider when analyzing floor plans in off the plan property is that floor plans aren't necessarily set.

The majority of developers, providing construction is still at its early stages, will allow buyers to customize their floor plan to suit their lifestyle.

It might be that you want to move a bedroom or bathroom, or re-orientate the living area. This generally isn't a problem for developers as long as the moving of internal walls doesn't impact the building structurally, and the redesign all occurs within the same floor plate size of the original apartment.

In the off the plan market, there a number of factors to consider when analyzing floor plans, and a number of questions to ask agents and developers

How to read a floor plan, what questions to ask, and why it's important for off the plan property buyers

Buying off the plan isn't for everyone.

Every building begins as a new build before aging into the secondhand property market, much like cars transition from the showroom to the used car lot. While most Australians purchase established homes—akin to the prevalence of used cars on our roads—the majority of property buyers are more familiar with existing real estate.

While the concept of off the plan purchasing has been around for decades, the trend only really gained momentum in Australia in the 2000s, following a recovery from the early 1990s recession. As the market stabilized, property developers increasingly saw opportunities in multi-residential developments, particularly in major cities like Sydney, Melbourne, and Brisbane.

As urban centers grew, there was rising demand for apartments, particularly in inner-city areas. The trend toward apartment living grew as people sought more affordable and convenient living options close to city centers.

Now, off the plan buying in Australia is widespread and growing, and the type of purchasing has become favorable for those who are willing to wait for construction to complete on their new home. It favors first home buyers who want to get into the property market but aren't ready to make repayments or are increasingly frustrated by being outbid at auctions in the more traditional established market.

Downsizers have been the biggest movement in recent years. These buyers typically purchased their family home decades ago and are now ready to move into something closer to the city from the suburbs they've lived in. They seek properties that are low-maintenance and “lock and leave,” ideal for travel in retirement, and prefer buildings with high levels of amenities for added convenience.

While there are many factors that contribute to the popularity of off the plan buying, in this article, we’ve looked at eight of the biggest reasons why people choose this option.

<h2>Floorplans designed for 21st-century living</h2>

The majority of Australia's apartment buildings, particularly the classic 'walk-up' apartments, were built four or five decades ago.

While these properties present at a more affordable price point compared to brand-new developments, they don’t have the modern floorplan configurations that today's buyers expect for 21st-century living.

Many of these older buildings still feature communal coin-operated laundries, carport parking, and lack modern intercom systems for security.

New apartments now typically feature integrated study nooks (a response to the growing work-from-home trend), concealed internal laundries, balconies to extend the main living area, and kitchens with floating islands that create additional prep or dining spaces.

<h2>Customisation</h2>

Off the plan buyers often have the option to customise their apartments. This could be as simple as selecting a color scheme or upgrading appliances, or as significant as combining two apartments to create a larger unit or changing internal walls to adjust room configurations.

For an owner to do this in an established apartment, a renovation of that scale could cost hundreds of thousands of dollars, and it may not even get past the strata committee, which can be notoriously difficult when it comes to apartment renovations.

Read more:&nbsp;<a href="https://www.urban.com.au/news/vic/why-the-ability-to-customise-is-a-crucial-offering-in-the-off-the-plan-apartment-market">Why the ability to customise is a crucial offering in the off the plan apartment market</a>

<h2>Sustainability</h2>

New apartment buildings have a responsibility to focus on sustainable practices.

Most state governments enforce sustainability requirements, and now buildings have to be 7-star NatHERS rated, which means they must include energy-efficient features like double glazing and better insulation.

While it's a positive for the environment, it's also a benefit for new apartment buyers. Energy-efficient appliances and standard practices like solar panels and rainwater harvesting can save thousands on electricity and water bills every year.

You’d be hard-pressed to find an apartment building built before 2000 with solar panels.

<h2>Technology</h2>

Developers today go the extra mile to set their developments apart, and a small feature they often include is advanced technology.

Some developers offer keyless entry systems, whether through keypad door handles or facial recognition, as well as smart home capabilities like routine-driven lights or Wi-Fi-controlled air conditioning. Many fixtures in an apartment, from blinds to air conditioning and lighting, can be controlled remotely via an app, whether at home or not.

This enhances both the functionality and security of living in these buildings.

Developers creating large towers or masterplanned communities in particular understand they're not just building homes, but fostering a community. They&nbsp;go as far as offering a mobile phone application, which, depending on the project, can be used to reserve any of the bookable facilities, request concierge services, or see what community events are taking place.

<h2>Facilities</h2>

One of the biggest differences between apartment buildings from the 1960s and those of today is the level of facilities.

While the facilities offered vary depending on the size of the apartment building, developers dedicate significant resources and floorspace to ensure that residents are well-catered for within the building.

At a minimum, developers allocate large portions of the site for walkable gardens, often landscaped by a professional. Smaller boutique buildings, which may not have a pool or gym, often feature rooftop communal spaces with barbecue facilities and alfresco dining areas.

Larger skyscraper towers go all out with luxury facilities. It's no longer enough to have just a pool and a basic gym. Now, towers are offering facilities that rival those of high-end hotels.

Lap pools, accompanying spas, and daybeds are now standard. Gyms are often replaced with wellness centres that include saunas, hot and cold plunge pools, and rooms reserved for classes or yoga.

Private dining spaces with large communal kitchens have become common, and many developers in Brisbane and the Gold Coast orient these facilities on the rooftop to take advantage of the warmer climate.

In recent years, some towers have even included golf simulators, cinemas, and karaoke rooms. The majority now feature co-working spaces. Buildings with a prominent street presence often include a ground-level café, while those on larger sites may offer multiple hospitality and retail venues at street level, along with office spaces on the lower floors.

Parking is also becoming more innovative, with license plate recognition systems that sometimes eliminate the need for key fobs.

<h2>Location</h2>

The location of new developments tends to be more strategically selected than older buildings.

Developers nowadays ensure their sites are close to major transport links or local amenities like parks, beaches, and shopping areas. Buyers are less willing to compromise on location when they’re paying more than ever before for a new apartment.

<h2>The fact it's brand new</h2>

Much like the customisation reason, the fact that the apartment is brand new is a huge selling point.

There’s no need to upgrade any fixtures or fittings once the apartment is complete. New apartments feature top-of-the-line appliances, typically from brands like SMEG or BOSCH, with some luxury apartments offering Gaggenau appliances.

Additionally, improvements in flooring materials, like engineered timber and stone benchtops, provide durability and a modern finish that is resistant to wear and tear.

<h2>Financial benefits</h2>

Buying off the plan comes with several financial advantages, including potential stamp duty savings in certain states, which can significantly reduce costs on completion.

Additionally, the staggered payment structure in the off the plan market allows buyers to secure a property at today’s prices while saving for settlement during the construction period.

Generally, buyers pay 10 percent upon going unconditional on the contract, with the remaining 10 percent due on completion. Many developers, however, offer flexible deposit terms, which could be as low as five percent.

The deposit is placed in a protected trust account by the developer, ensuring that the money is safe and untouched, while also generating interest during this time. That interest is handed to the buyer upon completion.

Eight reasons why people buy an off the plan apartment

Australia’s growing ageing population will underpin the opportunity for a significant housing response, with the possibility of shaping future demand and dwelling requirements across the nation.&nbsp;

Based upon ABS population projections across Greater Sydney, Greater Melbourne, Greater Brisbane and the ACT, the population aged 55+ will increase by 4.5 million people by 2071, highlighting the ongoing requirement for new housing solutions to be delivered across the market to cater towards both this demographic and others impacted by their emergence. This population cohort (55+ years) currently represents around 1 in 4 people and is anticipated to shift to around 1 in 2.5 people by 2071 across each of the capital city markets above. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; 
Through the medium term, Greater Melbourne is set to see the largest nominal increase of people aged 55-74 years old, followed by Greater Sydney and South-East Queensland, making it a prime location for right-sizers, however, the growth across each will support strong right sizing opportunities in each respective market.

“The right-sizer cohort is increasingly reflecting a blend of the established “Baby Boomers” and emerging “Generation X” that are ageing into this cohort,"&nbsp;Managing Director of Residential at Colliers, Diana Sarcasmo, said.

"With the recognition of changing expectations and aspirations across the generations, housing choice and requirements will need to be a dynamic consideration for the future. This increase in population will underpin the critical decisions of property developers and policymakers moving forward, as they need to cater for the ‘right-sizer’ cohort.”

As part of efforts to address Australia’s housing supply crisis, many older homeowners are opting to move out of large, underutilized homes into apartments that better suit their lifestyle needs. This trend frees up larger houses for families, making better use of existing housing stock and creating new opportunities for those seeking more space.

“While right-sizing is not a standalone solution, it highlights how individual choices can contribute to alleviating housing pressures. Combined with broader initiatives like increased construction and urban planning, this movement represents a small but meaningful step towards more sustainable housing solutions in Australia,” Sarcasmo added.

As of 2021, the number of detached homes owned outright by households over 55 in capital city markets totals 855,260, according to the ABS. In comparison, the total of current occupied apartment stock throughout the market is 939,763. This highlights the potential impact that downsizing detached homeowners may have on apartment demand, especially as the ageing population continues to grow).

Rightsizers have highlighted a reduction in dwelling size, decluttering, more manageable internal and external spaces as well as potential financial benefits being prime motivators for moving. &nbsp;Many of these benefits can be facilitated through well-designed apartment options, with right-sizers able to use funds from the sale of a detached home to support their lifestyle into retirement.&nbsp;

While historically there has been a higher representation across two-bedroom options occupied within apartments owned outright by these cohorts, it is expected this new trend will support an increasing push and opportunity for three-bedroom options, from this right-sizer cohort.

“The increasing representation of couples without children residing within apartments has the potential to support a greater demand for three-bedroom options. This trend has been observed across recent movers into apartments as well as detached houses. Three bedrooms offer increasing space for a larger ageing household with the flexibility to repurpose rooms to align with right-sizer’s lifestyles as they age,” Ms Sarcasmo said.

Historically, apartment stock has had a greater focus on one- and two-bedroom options, as apartments are increasingly required to support more permanent and diverse households. It is anticipated that three-bedroom stock will increasingly reflect the demands of these households in the future.

“To date, there has been a focus on smaller scale projects occupied by right-sizer and retiree households, however, they have also demonstrated acceptance of a diversity of project types (including medium and higher density). Developers should increasingly have these occupiers in mind when considering their project designs and product compositions with consideration for the significance of this demographic shift,” Ms Sarcasmo said.

Capital cities across the east coast will need to adapt to the surge of ‘right-sizers’, with innovative solutions required to meet growing demand.

Ageing population to drive downsizing trend and force major rethink of Australia’s housing response: Colliers

Diversified New Zealand developer <a href="https://www.urban.com.au/developers/safari-group">Safari Group</a> has introduced a gateway for investors and homeowners to the "adrenaline capital" of &nbsp;New Zealand, situated in the picturesque suburb of Frankton.

Safari's apartment development, Mountain Oak Apartments, will be located in Frankton’s masterplanned precinct, Remarkables Park, offering a mix of 141 apartments ranging in size from 49 sqm to 249 sqm.

The development includes 36 one-bedroom and one-bedroom flexi apartments, 40 two-bedroom and two-bedroom flexi apartments, four three-bedroom apartments, three penthouses, and four private entry apartments.

Dual-key apartments—comprising two separate residences held under one title—are also available.

Its location ensures residents and visitors are just a short drive from popular slopes like Coronet Peak and Cardrona Alpine Resort.&nbsp;

Additionally, the development capitalises on its proximity to essential facilities, including the airport and extensive retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market.

The historic village of Arrowtown, known for its rich gold rush history and scenic trail network, is also just a 30-minute drive away, offering an alternative destination for history and nature enthusiasts.

<img alt="Safari Group’s Mountain Oak Apartments living area" data-entity-type="file" data-entity-uuid="957d1777-8b2b-420e-8a81-f22b75151b85" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Living_WEB.jpg?VersionId=3LglY20Jp_MAzQYdvwODRWvtjL.cZcqI" />

Frankton is a burgeoning area located just seven kilometres from Queenstown’s bustling centre. While Queenstown is a popular year-round holiday destination, its busiest season runs from mid-June to mid-September, coinciding with the snow season.

"It peaks all year round, in both winter for skiing and snowboarding, and summer for hiking, cycling, and water sports," said Safari Group Senior Development Manager Josh Van Veen.

Queenstown’s popularity ensures consistent high demand for short-term visitor accommodations, holiday homes, and residences for long-term tourism workers.

"There is high demand for both tourist and residential living, coupled with a shortage of housing options and limited supply for both renters and home buyers," Van Veen said.

After New Zealand locals, Australians are the second most active buyers in the New Zealand property market. They are particularly drawn to Queenstown’s ski fields due to their affordability and investment potential.

Unlike Australia, New Zealand does not impose stamp or transfer duty on property purchases, saving Australian buyers a minimum of four per cent compared to similar transactions at home.

Safari Group has calculated that the average annual gross return for a Mountain Oak Apartment operating as visitor accommodation is 7.43 per cent.

"Queenstown properties generally offer good returns on investment, making this an excellent opportunity for investors to either dip their toes into property investment or expand their portfolios," Van Veen said.

<img alt="Safari Group’s Mountain Oak Apartments dining area" data-entity-type="file" data-entity-uuid="b24ce18d-f4e3-4b9e-9a01-a6173cdcd5b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Mountain Oak has been designed with this flexibility in mind, offering buyers multiple options. Buyers can opt for long-term rental management to cater to Queenstown's tourism and hospitality workforce or short-term visitor accommodation management to leverage the region’s thriving tourism market.&nbsp;

Buyers can use either the Safari management service, or find their own management provider - this is not something they have to decide straight away.&nbsp;

The Safari short-term accommodation option includes comprehensive services such as cleaning, administration, and 24/7 on-site guest support, providing a hassle-free investment experience.

For homebuyers seeking a permanent residence, Mountain Oak offers spacious apartments with expansive windows that frame breathtaking views of The Remarkables mountain range.

The apartments feature modern amenities, including electronic key-locked front doors, acoustically treated flooring, and underfloor heating in bathrooms, ensuring secure and comfortable living in the Alps.

Kitchens are equipped with premium Fisher &amp; Paykel and Haier appliances, complemented by luxurious yet durable engineered or porcelain benchtops and splashbacks.&nbsp;

Residents can choose between light and dark interior colour schemes to suit their preferences.

One-bedroom apartments at Mountain Oak start from NZ$639,000 (AU$586,000).

Queenstown’s popularity ensures consistent high demand for short-term visitor accommodations, holiday homes, and residences for long-term tourism workers

Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown

In the construction and property industries, insurance is vital to protecting stakeholders from financial risks. However, not all insurance policies are created equal, and the differences between them can sometimes lead to confusion.

<a href="https://www.urban.com.au/news/resilience-latent-defects-insurance">Resilience Latent Defects Insurance</a> (LDI) is one policy often misunderstood, particularly when compared to strata insurance, construction insurance, professional indemnity (PI) insurance, as well as many others.

A common misconception is that Resilience LDI offers duplicate coverage to other policies, particularly strata insurance. This misunderstanding can leave property owners, builders, and developers underprepared for the unique risks that only Resilience LDI addresses. In this article, we’ll explore how Resilience LDI differs from these other insurances, clarifying why it’s an essential safeguard for construction projects.

<h1>What is Resilience LDI?</h1>

Resilience LDI is a first-resort strict liability policy that covers physical loss or damage to new buildings caused by hidden structural and waterproofing defects. These defects, which may arise from flaws in design, materials, or workmanship, often become apparent years after construction is complete. LDI typically provides coverage for up to 10 years from the date of practical completion.

Unlike other types of insurance, Resilience LDI:

Covers defects: It doesn’t require a determination of fault, allowing for swift resolution 
Protects property owners directly: Coverage applies regardless of whether the original builder or developer is still operating. 
Focuses on structural elements: Its scope includes foundations, load-bearing walls, and waterproofing, among other critical components.

<h1>How Resilience LDI differs from other insurances</h1>

1. Strata Insurance 
 
Strata insurance is often mistakenly thought to provide the same coverage as Resilience LDI. However, the two serve entirely different purposes.

Strata Insurance: Protects common property in a strata scheme, such as roofs, lobbies and shared amenities, against risks like fire, flood and accidental damage. It does not cover structural waterproofing defects. 
 
Resilience LDI: Covers hidden defects in the building’s structure and waterproofing, ensuring that property owners are protected from significant repair costs years after construction. 
 
Key Difference: Strata insurance manages external risks and day-to-day maintenance, while Resilience LDI addresses hidden construction flaws.

2. Construction Insurance 
 
Construction insurance, also known as contract works insurance, protects against risks during the building phase. 
 
Construction Insurance: Covers damage to the site, materials, and equipment during construction due to events like theft, fire, or weather. It also protects against delays caused by these incidents.

Resilience LDI: Comes into effect after the project is complete, protecting against unforeseen structural and waterproofing issues. 
Key Difference: Construction insurance is limited to risks and patent defects discovered during the building phase, while Resilience LDI provides post-completion protection and coverage for latent defects.

3. Professional Indemnity (PI) Insurance 
 
PI insurance covers professionals, such as architects, engineers, and consultants, against claims of negligence or errors in their work. 
 
PI Insurance: Focuses on liability, compensating for financial losses caused by professional mistakes.

Resilience LDI: Addresses physical defects and their repair, without requiring proof of professional negligence. 
 
Key Difference: PI insurance is liability-based, while Resilience LDI is a no-fault policy ensuring immediate action on defects.

4. Liability Insurance

Liability insurance protects builders, developers, and contractors against claims for bodily injury or property damage caused during construction. 
 
Liability Insurance: Covers legal and compensation costs if someone is injured on-site or if the work causes damage to neighbouring properties. 
 
Resilience LDI: Covers structural and waterproofing issues that arise years later, with no need for a liability claim. 
Key Difference: Liability insurance handles claims during or immediately after construction; Resilience LDI focuses on the building’s structural longevity.

5. Landlord Insurance 
 
Landlord insurance covers risks associated with leasing a property.

Landlord Insurance: Protects landlords from tenant-related risks, including damage to the property, loss of rent, or liability claims from tenants.

Resilience LDI: Covers the structural integrity of the building, not tenancy-related issues. 
 
Key Difference: Landlord insurance is tenancy-focused, while Resilience LDI protects the physical structure itself as well as waterproofing failures.

<h2>Why LDI is not “doubling up”</h2>

Many property owners mistakenly believe that having strata or construction insurance means they don’t need Resilience LDI. This misconception can leave them exposed to significant financial risks.

Strata insurance does not cover defects: If a structural flaw in the building or waterproofing issue causes damage to common property, the cost of repair typically falls back on the owners’ corporation. Resilience LDI steps in to cover these costs. 
 
- Construction insurance is temporary: Once the project is complete, construction insurance no longer applies, leaving a gap in coverage that Resilience LDI fills. 
 
- No reliance on liability claims: Unlike PI or liability insurance, Resilience LDI ensures immediate repair coverage, avoiding delays caused by fault-finding or disputes.

<h2>Who benefits from Resilience LDI?</h2>

For property owners

Resilience LDI provides peace of mind, ensuring they are not burdened with repair or litigation costs for hidden defects years after buying their property.

For Builders and Developers

By including Resilience LDI in their projects, builders and developers can differentiate themselves in the market, demonstrating a commitment to quality and accountability. It also helps protect their balance sheets, offering financial security in the face of potential latent defect claims. Moreover, Resilience LDI-backed projects often experience improved sales velocity and command higher prices, providing a clear competitive edge.

For Financiers

Resilience LDI-backed projects are seen as lower-risk investments, enhancing their attractiveness to financiers.

For OC Managers

Resilience LDI ensures higher building quality through rigorous inspections, provides financial protection with a 10 year warranty for structural and waterproofing defects and simplifies defect resolution by allowing direct claims without the need to prove fault, enhancing the reputation and effectiveness of OC managers

The future of LDI in Australia

As construction standards and buyer expectations continue to rise, Resilience LDI is becoming a crucial part of the insurance landscape. Builders, developers, and property owners need to recognise its unique role in safeguarding against long-term risks. It is not a replacement for other insurances but a necessary addition that fills critical gaps in coverage.

The misconception that Resilience LDI overlaps with strata or other insurances must be dispelled. By understanding the distinct protections Resilience LDI offers, all stakeholders can make informed decisions to secure their investments and protect their reputations.

Resilience LDI isn’t just an option—it’s an essential safeguard for a secure future in construction and property ownership.

Not all construction and property insurances are created equal. Discover why Resilience LDI is a game-changer for builders, developers, property owners, financiers and OC managers - and how it goes beyond strata, construction, PI and landlord insurance.

How Resilience Latent Defects Insurance (LDI) stands apart from other construction and property insurances

A national new home building recovery is in sight, but state government housing policies risk stalling the recovery.

That's the view from HIA Senior Economist, Matt King, after the HIA&nbsp;released its Economic and Industry Outlook report.

The report includes updated forecasts for new home building and renovation activity nationally and for each of the eight states and territories.

“At the national level, demand for new homes is accelerating and this is largely due to the fact that the RBA hasn’t increased interest rates for a year, population growth is still elevated, the unemployment rate remains low and real incomes have stabilised,” King said.

“While activity is picking up, the varied nature of activity levels across capital city and regional markets continues to be pronounced.

“We have confidence that new home-building activity across most markets will continue to improve as we transition into the new year."

King said however that <a href="https://www.urban.com.au/developments/sydney-nsw">Sydney</a> remains an outlier, and there is still no indication of a near-term rebound in both detached houses and multi-residential buildings.

“New home building in the Sydney basin remains exceptionally low, primarily due to exceptionally high land prices and an ongoing excessive impost of housing taxes and infrastructure charges."

<a href="https://www.urban.com.au/developments/perth-wa">Perth</a>, <a href="https://www.urban.com.au/developments/adelaide-sa">Adelaide</a>, and South East Queensland continues to lead the way in new contract sales and building approvals, despite ongoing supply-side constraints.

In the September quarter of 2024, building approvals increased from the corresponding quarter last year in Western Australia (+60.1 per cent), Queensland (+24.2 per cent) and South Australia (+16.3 per cent) in seasonally adjusted terms.

The calendar year 2024 has produced a growing divergence of both geography and typology.

The detached home building sector looks promising, evidenced most recently by detached house approvals across Australia rising by 6.1 per cent in the month of September to 9,890. This was the highest monthly number of detached house approvals in two years.

King said in contrast, the apartment sector "remains constrained",&nbsp;and is unlikely to experience any material recovery before mid-2025.

"The sector continues to be dampened by skilled labour shortages, business credit constraints and the aftermath of significant building material cost escalation.

“It is anticipated that detached house starts will rise steadily from a trough of 100,230 in 2023 to 115,690 in 2027. If the supply of land and labour are addressed, there is significant upside potential for this forecast.

“With relatively stable economic conditions nationally, home prices will remain elevated, rental vacancies will remain acutely low and demand for new homes will recover."

King says the&nbsp;extent of the recovery in new home building will be determined by the ability of governments to ease the barriers to home building.

“Housing investment is encouraged by the certainty of policy settings. Recent state government announcements to levy increased surcharges on foreign investors and introduce taxes on short-term rental accommodation are unhelpful at a time when stability is needed to achieve the 1.2 million home target.

“Failure to implement policies such as expedited land release, concessions on property taxation, and accelerated development approval timeframes; risk slowing the rate of home building over the next five years.

“At the beginning of this upswing in the cycle and the initial stage of the National Housing Accord target period, now is the time to ensure that each state government housing policy mix is entirely pro-supply,” King stated.

There were 14,090 multi-unit commencements in the June quarter of 2024, which is 7.8 per cent lower compared to the previous quarter and the second weakest quarter in 12 years. This is expected to increase by 15.5 per cent in the September quarter to 16,260, followed by a modest 1.8 per cent increase in the December quarter.

The upswing will bring multi-unit starts in the calendar year 2024 to 62,190, the weakest year since 2011 (62,170). Multi-unit commencements are expected to rise by 11.5 per cent in 2025 to 69,360 and by a stronger 20.9 per cent in 2026 to 83,870, followed by a 20.3 per cent increase in 2027 to 100,860 and a 2028 peak of 104,380.

Home building increasing everywhere but Sydney

The Charles de Gaulle Airport in Paris suffered a catastrophic collapse in 2004. The incident occurred when a section of steel roofing at Terminal 2E crashed down causing 4 people dead and injuries to several passengers. Investigation revealed that the reasons for the collapse were a combination of faulty design and workmanship. After four years of reconstruction, Terminal 2E reopened in March 2008, costing EUR 150 million (AUD 250 million) covered by insurers and reinsurers.

The Charles de Gaulle International Airport is one of the largest airports in the world. As a significant component of the expansion project in 1997, Terminal 2E started to be used in June 2003, with a cost of approximately 750 million euros. The 450-metre-long terminal building is an elliptical tube on parallel longitude beams constructed of 30-centimetre-thick reinforced concrete rings. However, just nine months after its operation, at 7 o’clock in the morning of 23 May 2004, a 30-meter section of glass of the roofing structure collapsed within the boarding area. The incident happened during the early morning hours and left 4 casualties, the consequences could have been more devastating if it occurred during rush hour.

The French Commission for the Administrative Investigation indicated that the structural engineering defects may have been a possible cause of the accident. These issues in structural design were associated with poorly placed reinforced steel, a lack of structure supports, weak outer steel structures and concrete support beams. The Chief architect of the project also released a statement mentioning that weak metal reinforcement in the concrete was the primary factor leading to partial collapse.

The collapse could also be attributed to failures in the construction process. Aéroports de Paris (ADP) was responsible for both designing and constructing this project. It was reported that there were hundreds of stakeholders involved in the work, which largely increased the management complexities. Meeting the project’s proposed timeline posed another challenge for ADP. Consequently, there may have been inadequate supervision of design reviews and site work inspections during the process, resulting in quality issues.

Following the demolition of the existing structure and the construction of a new light steel structure, the terminal reopened to the public in 2008. The estimated cost of the rebuilt project was 150 million euros (AUD 250 million). Since the airport owner had Decennial Liability Insurance (DLI), also known as Latent Defects Insurance (LDI), insurers and reinsurers were to guarantee the payout. DLI/LDI insurance is a mandatory program in France that provides cover against damage caused by defects in design, workmanship or materials affecting the structure, external walls and roofs. In this case, even though the cause of the collapse is unclear, LDI/DLI would still come into effect to facilitate repairs, as it is a strict liability policy.

The collapse of Charles de Gaulle Airport’s Terminal 2E in 2004 was a tragic event that exposed a combination of design and construction flaws. It prompted a re-evaluation of quality control in airport infrastructure projects and highlighted the importance of Latent Defects Insurance in addressing such structural defects-related incidents in the future.

Since the airport owner had Decennial Liability Insurance (DLI), also known as Latent Defects Insurance (LDI), insurers and reinsurers were to guarantee the payout.

When Latent Defect Insurance covered the $250m collapse of the Charles de Gaulle Airport

In Australia, a significant percentage of real estate transactions involve properties bought off the plan, yet this approach remains unfamiliar to many buyers.

Purchasing a property before it’s built can offer several opportunities, but it also comes with unique risks and considerations. Understanding the ins and outs of the off the plan buying process is crucial for making an informed decision.

In this article, we’ve highlighted the key factors to consider when buying off the plan, ensuring you’re well-prepared for this important investment.

<h2>1. What does "buying off the plan" mean?</h2>

Buying off the plan refers to purchasing a property, such as an apartment or house, that has not yet been constructed or is currently under construction.

Instead of viewing a finished property, buyers base their decision on building plans, designs, and artist renderings provided by the developer.

<h2>2. What are the advantages of buying off the plan?</h2>

<ul>
	<li>Potential Price Savings: Developers often offer competitive prices and incentives to secure early buyers, particularly before construction begins.</li>
	<li>Extended Saving Time: You typically only pay a deposit upfront, giving you more time to save for the remaining balance due upon completion.</li>
	<li>Capital Growth Potential: The property's value may appreciate during the construction period.</li>
	<li>Modern Design and Features: Enjoy new, contemporary designs and the latest amenities.</li>
	<li>Stamp Duty Savings: Some states and territories offer stamp duty concessions or exemptions for off-the-plan purchases, especially for first-home buyers.</li>
	<li>Tax Advantages for Investors: There can be potential tax deductions for investors, such as depreciation benefits.</li>
</ul>

<h2>3. What are the disadvantages and risks of buying off the plan?</h2>

<ul>
	<li>Project Delays: Construction timelines can be unpredictable, potentially leading to extended settlement periods.</li>
	<li>Potential for Value Fluctuations: The property market can change during construction, and the final value may be lower than the purchase price.</li>
	<li>Developer Bankruptcy: If the developer goes bankrupt, completion of the project may be jeopardized, and deposit recovery could be difficult.</li>
	<li>Limited Customization: Changes to the design or finishes might be restricted once construction has commenced.</li>
	<li>Unforeseen Costs: Be cautious of potential hidden costs or variations that can arise during the development process.</li>
</ul>

<h2>4. How does financing work for off the plan purchases?</h2>

Lenders may grant conditional loan approval (pre-approval) based on the projected value of the completed property. However, the final loan approval and amount are contingent upon a valuation conducted closer to settlement.

This final valuation ensures the property's value aligns with the loan amount and assesses any changes in your financial situation.

<h2>5. What is a sunset clause, and why is it important?</h2>

A sunset clause is a provision in the contract that allows either the buyer or the developer to terminate the agreement if construction has not reached a specific stage by a predetermined date. This clause protects buyers from indefinite delays and allows them to potentially recoup their deposit if the project faces significant setbacks.

<h2>6. Can I negotiate the price when buying off the plan?</h2>

Negotiation is possible, especially in the early phases of a development when the developer is seeking to attract initial buyers.

Be prepared to do your research and make a reasonable offer.

<h2>7. What should I check before signing an off the plan contract?</h2>

<ul>
	<li>Developer Reputation: Research the developer's track record and financial stability.</li>
	<li>Contract Terms and Conditions: Carefully review all clauses, paying close attention to payment schedules, sunset clauses, potential variations, and dispute resolution processes.</li>
	<li>Inclusions and Finishes: Obtain a detailed list of inclusions and specifications, including the quality and brand of fixtures and appliances.</li>
	<li>Seek Legal Advice: Consult with a solicitor or conveyancer to ensure you understand the legal implications of the contract before signing.</li>
</ul>

<h2>8. How is my deposit protected when buying off the plan?</h2>

Deposits for off the plan purchases are held in a trust account until settlement. This protects your funds in case of developer insolvency or project failure.

Be sure to understand the specific deposit protection regulations in your state or territory.

Buying off the plan refers to purchasing a property, such as an apartment or house, that has not yet been constructed or is currently under construction

The top eight considerations when buying off the plan

Is now the best time to purchase an off the plan apartment?

Recent data released from CBRE suggests new apartments are set to get more expensive, with CBRE forecasting prices could jump by as much as 20 per cent by the end of 2026.

CBRE is forecasting build prices are forecast to grow 23 per cent by 2026, as supply tightens to around 45 per cent below pre-pandemic completion rates over the next five years.

CBRE’s Pacific Head of Research Sameer Chopra said newly built apartments are commanding a premium price compared to older stock.&nbsp;

“These premiums are justified by changing consumer expectations around amenities, like building security, lift access, flooring to rooftop gardens and gyms, which typically come with newer builds,” Chopra said.

New one-bedroom apartments are delivering a 16 per cent premium compared to older apartments, new two-bedroom apartments are at a 30 per cent premium, and it’s 45 per cent increase for newly built three-bedroom apartments.&nbsp;

Urban.com.au CEO, Mike Bird, says we are seeing the gap between off the plan and established units continue to grow.

"Historically there hasn't been much backwards movement in the cost structure that drives new apartment pricing, so that suggests the only way the market can unlock the supply is by the price of established growing through increase lending capacity driven by the upcoming rate cut cycle."

<img alt="Premium for new build apartments" data-entity-type="file" data-entity-uuid="65399013-dea0-4b8c-b2a3-180126e3701d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Chart%20-%20premium%20for%20new%20built%20apartments.jpg?VersionId=6oTGh4Z4BAskXgYCJa1jRWZ7_Zu1ip64" />

The report forecasts rents will grow by 25 per cent ($170 per week) between 2024 and 2029 across 59 suburbs in Australian capital cities. By 2029 it’s predicted the rent for a two-bedroom apartment will exceed $600 per week across 90 per cent of precincts.

<h2>The Supply Factor</h2>

CBRE’s Apartment Vacancy and Rent Outlook 2H 2024 estimates over the next 10 years, demand for housing is expected to benefit from a combination of population growth (+3.9 million), employment growth (+2.6 million) and rising income (+$36,000).

In terms of supply, delivery of new apartments is expected to be around 50,000 per year from 2025 to 2029, but population growth is expected to require an apartment supply of approximately 75,000 per year to avoid further falls in vacancy.&nbsp;

In Sydney, apartment delivery is expected to average 12,100 per year from 2025 to 2029, well below the 30,000 average demand for housing stock per year. In the next three years, city-wide vacancy is expected to fall from 2.2 per cent to 1.5 per cent.

Apartment delivery in Melbourne is expected to average 8,700 per annum over 2025-2029, nearly 35 per cent below Sydney, however demand for housing stock is likely to average 37,000 per year over the next five years. The supply and demand inbalance should continue to drive down city-wide vacancy rates from 1.8 per cent to 1.4 per cent, CBRE suggests.

Brisbane's demand for housing stock is likely to average 18,000 per year, but apartment delivery is only expected to be 4,200 per year which should drive vacancy rates from 1.5 per cent to 0.9 per cent.

<h2>The Demand Factor</h2>

CBRE's Q3 2024 Residential Valuer Insights revealed that 43 per cent expect apartment value growth over the next 12 months, with the highest conviction in Perth and Brisbane metro.

<img alt="Demand" data-entity-type="file" data-entity-uuid="87b363ed-083e-468e-968b-5970e70a9fb4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-10-10%20at%209.51.23%E2%80%AFAM.png?VersionId=RUJC0rPMEnFYZ2U7USz83Uh.6k9hqAPq" />

CBRE's forecast suggest 60 per cent of new supply purchases will be from owner-occupiers. Over the past 25 years, the demographic has comprised 64 per cent of all purchases.

They say that of the investor market, they see a growing share moving across to institutional build-to-rent sector, which will comprises around 22 per cent of new apartment supply, or 11,000 per year, by 2029.

Urban.com.au CEO, Mike Bird, says we are seeing the gap between off the plan and established units continue to grow, but a the rate cut cycle will change that


New apartment prices could jump 20 per cent by 2026 as supply forecasts tighten - is now the time to invest off the plan?

The volatile nature of apartment approvals is continuing to hindering the national housing target to build&nbsp;1.2 million new well‑located homes over five years.

The number of dwellings approved fell 6.1 per cent in August to 13,991, after an 11 per cent rise in July, according to data released by the ABS.

The decline was fuelled by a 16.5 per cent fall in approvals for private dwellings excluding houses (such as townhouses and apartments), to be 6.1 per cent lower than one year ago.

This was mainly driven by a decline in high-density apartment approvals. There were 1,214 apartments approved in nine or more storey blocks in August, down from 2,504 in July.

Matthew Kandelaars, Property Council Group Executive Policy and Advocacy, said it is disappointing to see the number of approvals go backwards after growth in July.

“We need to increase the number of homes approved and ensure a strong pipeline of apartment supply, to drive towards our housing targets at scale,” Kandelaars said.

“But the reality is that it has never been more difficult and costly to get apartments out of the ground.

“Apartment-killer taxes and planning systems continue to stall housing supply at a time when we can least afford it.

“Over the past year, we approved nearly 9,000 fewer apartments and townhouses across the country than the in preceding 12-month period. We need that number to increase month on month to build the homes Australians need."

In New South Wales, approvals declined by 14 per cent over the 12 months to August 2024 to just 42,400. They are now 45 per cent below their September peak.

“The decline in approvals is a warning that the path to reach our state’s housing targets is getting steeper by the month,” said Stuart Ayres, CEO, of UDIA NSW.

This pressure continues to be felt across the whole state, and across all dwelling types. As UDIA NSW analysis shows, all typologies reported an annual decline, with apartments again showing the most dramatic of declines of 30 per cent over the last twelve months to just 10,300 approvals.

<img alt="New Building Approvals, NSW, Rolling Annual to August 2024" data-entity-type="file" data-entity-uuid="ff4c36ec-8788-4e6d-8776-9b1c4e37a3a4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/unnamed_0.png?VersionId=rO6K6BlNWp9t3uf6ncykilGX4ANsvY2h" />

Source ABS: UDIA NSW 
<img alt="No of Building Approvals" data-entity-type="file" data-entity-uuid="1f56a5f2-4fe4-4a3f-a07d-eba8eb37da08" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/unnamed.jpg?VersionId=B.ag7p8G51AHHuKgYDdTBD5KYPmCR_8j" />

UDIA says it is continuing to advocate for more action to speed up the delivery of housing, including the Government adopting key recommendations made in the Productivity and Equality Commission’s Review of Housing Supply Challenges and Policy Options for New South Wales. The report called out the challenges of development feasibility, construction sector capacity, and a slow and inefficient planning system, which are all constraining the delivery of new housing.

The Productivity Commissioner’s report makes some common-sense recommendations that can unlock more housing supply more quickly and help us chart a course to deliver our housing targets.

The Commissioner confirmed the findings of UDIA’s recent. Making TODs Work research found that mid-rise apartment projects are largely unfeasible in most parts of Sydney and recommended a further increase in densities around the announced TOD sites, expanding them to 800m and adding more locations to the program.

“Doubling the permissible floor space ratio in the TOD 2 sites and greatly increasing density in other areas which are already zoned for high-density apartments will significantly increase the capacity of the industry to deliver housing," Stuart Ayres added.

Ayres also says an upfront Government investment now will be recouped through future developer contributions and state revenue like stamp duty, land tax and payroll taxes, which are only paid to the Government when new homes are built.

"The current business-as-usual approach of waiting years for developer contributions to accumulate, before there is enough available to start funding a handful of these housing-enabling projects, is clearly not delivering homes at the speed that communities need them.

Latest Expert Insights

Resilience Latent Defects Insurance: A catalyst for higher property valuations and resale confidence

Guides

Editor's Picks

Guides

Developments

New apartments

New townhouses

News

Latest Expert Insights

Resilience Latent Defects Insurance: A catalyst for higher property valuations and resale confidence

Guides

Editor's Picks

Receive the latest news stories to your inbox

Guides

Developments

New apartments

New townhouses

News