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Conditions have generally improved over the past six months for businesses in the resource-related sector, according to RBA’s Financial Stability Review 2017.
The rise in commodity prices since the beginning of 2016, particularly for iron ore, and the ongoing efforts of these businesses to cut costs and reduce debt, have led to a substantial increase in the aggregate earnings of listed resource-related corporations (Graph 2.12).
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.12.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/19/Graph%202.12.jpg" alt="">
Many listed resource-related corporations have used some of their increased profits to pay down debts, resulting in a decline in the sector’s gearing and debt servicing ratios.
In line with these positive developments, resource-related corporations’ distance-to-default measures have increased over the past year (Graph 2.13).
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.13.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/19/Graph%202.13.jpg" alt="">
Nevertheless, earnings have continued to weaken for mining services corporations as resource producers have focused on cost reduction.
As noted in previous Reviews, banks’ direct exposures to the mining sector have declined in recent years and now constitute only a little over 1 per cent of their total lending, though this figure excludes banks’ exposures to non-resource-related businesses operating in mining regions (Graph 2.14).
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.14.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/19/Graph%202.14.jpg" alt="">
Conditions remain challenging for these businesses, given mining firms’ continued focus on cost containment, and some indicators of financial distress have picked up.
For instance, unincorporated business failure rates are elevated in Queensland and Western Australia (Graph 2.15).
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.15.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/19/Graph%202.15.jpg" alt="">
If higher commodity prices were to fall or not translate into improved economic conditions in mining-exposed regions, business failure rates may pick up further.
Outside the mining-exposed states, businesses’ finances generally appear sound and indicators of stress are low.
Survey measures of business conditions are well above their historical averages; listed corporations’ distance-to- default measures have continued their trend improvement and earnings have been in line with previous years; failure rates are low; gearing remains around its historical average; and many businesses continue to benefit from the depreciation of the Australian dollar since 2013 (Graph 2.16).
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.16.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/19/Graph%202.16.jpg" alt="">
The low interest rate environment has also made it easier for companies to meet their debt obligations by reducing debt-servicing costs (Graph 2.17).
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.17.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/19/Graph%202.17.jpg" alt="">
Find the RBA's latest Financial Stability Review 2017 <a href="https://www.rba.gov.au" target="_blank">here</a>.
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j.ballantyne1990-6AQqhLzZaK

Conditions have improved mining businesses: RBA

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The Melbourne based property developers Asian Pacific Group are rebranding.
Founded by sixth and seventh generation members of the Deague family, it will now operate as Deague Group.
The family claims a property development tradition in the state that dates back to 1859.
W. Deague was responsible for the early works of St. Paul’s Church in Bendigo, while W.H. Deague building the tallest chimney in Victoria in 1872 and soon after the Royal Bank of Bendigo.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/20/David%20Will%20and%20Jonathan%20Deague.jpg" alt="">
CEO of Deague Group, Will Deague, said that the move acknowledged the family’s historical roots in the industry after patriarch David Deague rebranded to Asian Pacific Group in 1992.
“We’re proud of our strong family roots in the building trade, tracing back to the mid 1800s,” he said.
“Our new brand and name is a nod to our ancestor’s achievements and cements a vision for future generations to continue on the legacy and uphold the strong family values.”
The group is involved in hotel, commercial and residential developments, such as the $100 million development of Howard Smith Wharves in Brisbane, Kings Business Parkin Melbourne’s inner suburbs, and the Whitehorse Towers apartment tower,
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Asian Pacific Group rebrands as Deague Group

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The $600 million South City Square urban regeneration project in Woolloongabba, Brisbane has secured Woolworths and Reading Entertainment as anchor tenants.
Both retailers signED 15-year leases in response to the retail demand south of the river.
South City Square has taken on board design philosophies from some of the best projects around the world, with research including study tours of precincts such as The Grove in Los Angeles.
Its design team included hospitality and retail specialists, Six Degrees Architects, DBI Design, and Woods Bagot.
 
The leasing deals represent a substantial milestone for joint venture partners Pellicano and Perri Projects, who integrated a 13,000sqm retail component into the project to create a new retail and lifestyle destination in Woolloongabba.
The emerging suburb of Woolloongabba is located just two km from the Brisbane CBD.
Property research firm, Urbis, has forecasted the Woolloongabba catchment’s population to grow to over 33,000 residents by 2036, representing a 50 per cent increase from the current population of 22,000.
Pellicano’s Development Operations Manager, Michael Kent, said the South City Square’s vision is to provide residents south of the river with a vibrant activity centre to meet the lifestyle needs of this rapidly growing population.
“The strong interest from high profile tenants, including nationally renowned Woolworths Group and the internationally recognised Reading Entertainment, has reaffirmed our belief that South City Square will be the centre of Woolloongabba’s transformation into a dynamic retail and lifestyle precinct,” said Michael Kent.
Location IQ has reported that the current retail spend in the main trade area in Woolloongabba is estimated at over $358m per annum, and is projected to more than triple in size, increasing to $1.08b per annum over the period to 2031.
“South City Square’s retail and dining precinct is located just a three-minute walk from The Gabba, which draws over 330,000 people to its sporting events each year. That’s 330,000 people that will want to dine, be entertained, and patronise retailers before and after events,” said Kent.
Woolworths’ Regional Property Manager, Phillip Peel, said the company was thrilled to secure one of the key retail tenancies in the South City Square development.
"We are delighted to be part of South City Square’s regeneration of this former industrial site and are excited that local residents will soon have access to one of Australia’s most modern supermarkets.”
"Supermarket customers will be able to take advantage of Woolworths’ Click and Collect service - where groceries can be ordered online and picked up at a convenient time and location."
Reading Entertainment, a wholly owned subsidiary of the US listed Reading International, also saw the strong opportunity in the project, jumping on the chance to operate the cinema tenancy which will offer a world class dine-in cinema experience.
The cinemas will range from smaller, boutique theatres to a large-screen format theatre, and will be situated within the development’s double-story commercial podium.
 
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Woolworths and Reading Entertainment secured as tenants for Woolloongabba's South City Square

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Retail throughout metropolitan Adelaide has not shown any significant growth for several years, according to Herron Todd White’s latest report.
The property valuation firm says that retail trade figures published by Australian Bureau of Statistics (ABS) show retail turnover for South Australia have been at growth per quarter of below 1.5 percent since December 2014 2.4 percent growth, which was the highest quarter of growth since March 2008.
This is consistent with the national trend.
"This poor retail performance is not expected to change in the short term, with the low interest rate environment and rising house prices being offset by weak wage growth and continued softening in the labour market.
The sustainability of many businesses is challenged when retail trade continues to be this poor.
As a result, rent growth has stabilised, however in some sectors, reduced significantly. Vacancy is up and incentive use is increasing," the report stated.
Retail strip shopping has continued to show decline with cafés the best performing use.
In particular, rural retail tenancies are being negatively affected by contractions meaning that there is no demand for a commercial use.
"In some cases, within smaller towns, unless these shops can be converted to a residential use there is almost no demand.
Key locations such as The Parade Norwood, O’Connell Street North Adelaide and Jetty Road Glenelg, which are the premium suburban retail streets, remain at values out of reach to owner- occupiers, and with declining rentals they are less attractive to risk sensitive investors.
Even Rundle Mall, at the heart of the Adelaide CBD is experiencing vacancies," the report advised.
Shopping centre rents are also reported to be decreasing even within otherwise well performing centres.
This is resulting in numerous tenants being retained in ‘Holding Over’.
"Hold Over rents typically include penalty rates which may be considered better than a vacancy to the managers, this will take time to be absorbed," the report stated.
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Adelaide retail market shown no growth for several years: HTW

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The Blocktagon, South Yarra apartment designed by The Block’s most controversial contestant, Suzi Taylor was passed in at $2 million when auctioned on the weekend.
It was offered with $2 million-plus price hopes and had a $2.35 million reserve.
The three-bedroom pad last sold for $1.829 million. It is the first resale in the block since the 2015 finale of the hit renovation show’s eleventh season.
Suzi Taylor and Yvonne ‘Vonni’ Cosier pocketed $349,000 after they renovated the fourth floor of the derelict former hotel.
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Gold Coaster Suzi controversially danced topless on a boat after Oaks Day, collapsed on set and was admitted to hospital during the series.
RT Edgar agent Nikki McCarthy said the property would earn buyers a great rental return with a permanent $1800 a week tenant or as a $485 a night short stay, and came with most of the furniture from the show.
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Black is a feature colour throughout the home. 
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<div class="image-frame">This article first appeared in the Sunday Telegraph.</div>
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Blocktagon unit of Suzi Taylor passed in at auction

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Contents arising from the lengthy Ashton family ownership of historic Markdale, the NSW country farm at Binda, are to be auctioned.
The recently sold property has been with the family for three generations.
The 2250 hectare farm was sold by company director Geoff Ashton and his wife Mary.
On May 12, 13 and 14<a href="https://www.markdale.com/markdale-auction-shapiro-auctioneers/"> the contents of Markdale</a> will be for viewing. The auctual auction of the 350 plus lots will be at the RSL in Crookwell starting at 12noon on Sunday.
But not all is going up for sale with exclusions including the polo-player weathervane that tops the 1920s home to symbolise the family's long association with the sport.
The seven bedroom homestead came with extensions by the acclaimed Professor Leslie Wilkinson and is set in an Edna Walling-designed garden.
The garden is acknowledged as one of the great country gardens of Australia.
The Southern Tablelands property derives wool production and guesthouse income from its two original stone cottages and the shearers quarters.
Richard Royle of Colliers International Rural &amp; Agribusiness sold the estate for an undisclosed price to a family with four boys from Sydney.
James Ashton, who was a copy boy on the Hay newspaper and went on to become chairman of MLC and the Commercial Banking Company of Sydney, pioneered the farm.
James had four sons Jim, Robert, Geoff and Phil, who began playing polo against his wishes.
In the 1930’s, the brothers shipped their horses to England, the United States and India to compete against top international teams, winning numerous tournaments, including England’s Hurlingham Championship and the Indian Empire Shield, and an invincible team in Australia retiring unbeaten in 1938.
The guestbook shows just how generously the Ashtons have entertained their family and friends at the home since 1921.
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Markdale contents for auction after Ashton family sale at Binda

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First home buyers will receive preferential tax treatment in the budget tomorrow night to enable them to save for a deposit.
Sources have confirmed the budget will introduce its own version of first home saver accounts which will resemble a superannuation account.
First home buyers will receive concessional tax treatment on contributions by being able to salary sacrifice, The Australian Financial Review advised.
The earnings will be taxed at a concessional rate. 
There will no contributions from the government.
There will be caps on the amount that can be contributed annually and an overall cap on the size of the fund.
There will be no age limit on who can set up such a fund but it can only be used for the purchase of a first home.
Couples with individual accounts would be able to pool their accounts.
Despite the government's policy having both annual and global caps, the Australian Financial Reviews suggested its still risks being criticised as fuelling demand, a key reason why there was widespread opposition to enabling people to use their superannuation to buy houses.
"I think on budget night, I don't want to raise expectations too much, but anyone who is saving for a deposit for their first home will be pleased with the steps by the government," Assistant Treasurer Michael Sukkar told Sky News.
"By the time you save the money for a deposit the market has moved on and now you need 60 or 70 thousand."
The policy will be one of a handful on budget night aimed at improving housing affordability but the government won't be tackling demand-side factors such as negative gearing and capital gains tax concessions.
On the supply side, it will encourage retired couples to downsize from the family home.
People who downsize will be able to use the proceeds to bolster their retirement by being offered exemptions from the annual $100,000 cap on on on-concessional superannuation contributions and the $1.6 million cap on retirement accounts. However, the proceeds from downsizing are not expected to be exempt from the pension assets test.
The government will also encourage a national scheme in which investors will be taxed for leaving properties vacant.
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Federal Budget 2017: First home buyers to get preferential tax treatment

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Financial comparison site RateCity.com.au will be hosting Australia’s first industry home loan sale from Monday 8 May to 10pm Tuesday 9 May, offering refinancers exclusive deals and potential savings of up to $39,000 for customers of the big banks.
Lasting for only 40 hours, the Switch &amp; Save Sale will see eight home loan lenders come together to slash fees, offer cashbacks and cut rates.
Pre-registrations for the sale opened last week.
RateCity.com.au Money Editor Sally Tindall said there had been a huge influx of traffic to the site.
“Some of these deals could potentially sell out. 
“Our research shows that the average mortgage holder could save up to $39,000 on a 15- year loan,” she said.
“There are no up-front obligations, and customers have up to 30 days to take advantage of the discounted offer, provided they register within the initial 40-hour period,” she said.
RateCity’s Switch and Save Sale includes well-known banks such as ING Direct and HSBC, alongside competitive lenders such as Mortgage House, Reduce Home Loans, loans.com.au and IMB.
Ms Tindall said the climate was ripe for refinancing.
“With banks putting up rates out of cycle, alongside comparatively low wages growth, mortgage repayments are starting to pinch.
"Refinancing isn’t as hard as people might think,” she said.
The sale runs from 6am (AEST) Monday 8 May to 10pm (AEST) Tuesday 9 May 2017. 
For more information, <a href="https://www.ratecity.com.au/sale?utm_source=propertyobserver&amp;utm_medium=referral&amp;utm_campaign=rcsale_propertyobserver_text&amp;rmatt=tsid:1030695%7Ccid:54369%7Ccgid:543693734136%7Ccrid:15969003" target="_blank">click here</a>.
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RateCity home loan sale gives Australians the incentive to switch

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With the backdrop of housing affordability set to be a key issue for Tuesday's federal budget, a compact Chelsea townhouse in Melbourne's seaside suburb was in the spotlight as the nation's most affordable weekend sale.
The vacant <a href="https://www.realestate.com.au/property-unit-vic-chelsea-125169970" target="_blank">one bedder</a> fetched $273,000, having last sold at $147,000 in 2005, so falling short of doubling in price over the intervening dozen years.
The property was offered through Thomson Real Estate agent Mark Pearman and Jeff Cowan.
Its 2005 price had surged from its prior $55,000 sale eight years earlier in 1997, highlighting recent CoreLogic research suggesting despite the recent boom in capital city dwelling values growth was actually subdued compared to past decades.
Sydney ranks as the only capital city that has recorded a greater increase in values so far this decade compared to the previous decade, the research advised. The latest commentary on Sydney's affordability came via a weekend <a href="https://www.facebook.com/senator.sam.dastyari/videos/vb.269334213215074/784450785036745/?type=2&amp;theater" target="_blank">Facebook posting</a> by Senator Sam Daystari with some 345,000 plus views by Sunday evening. 
Sydney's cheapest weekend sale was $502,500 for a three bedroom house at Windsor, in the Hawkesbury district.
Almost doubling in price over its nine year ownership, it had last traded at $255,000 in 2008, and previously at $257,000 in 2005, showing that prices can fall too.
It had doubled in price from $110,000 to $220,000 between 2000 and boom time 2003.
The nation's top reported result was Sydney's dearest sale when an restored 1890s Newtown terrace house sold pre-auction for $3.8 million.
<img src="https://www.urban.com.au/images/2017/05/08/Screen%20Shot%202017-05-08%20at%209.50.35%20AM.png" alt="">
The <a href="https://www.realestate.com.au/sold/property-terrace-nsw-newtown-125174618" target="_blank">66 Watkin Street</a> terrace (above), that now overlooks the glamorous backyard swimming pool, traded unrenovated at $1,883,000 in 2009.
The property was offered through Ray White agents Ercan Ersan and Shaun Stoker who had initial $3 million price guidance.
"No expense has been spared on the meticulous craftsmanship behind its prestigious 12 metre facade," the marketing advised.
Adelaide, often ranked as the cheapest mainland capital city, saw prices range from $290,000 to $991,000.
<img src="https://www.urban.com.au/images/2017/05/08/Screen%20Shot%202017-05-08%20at%209.51.42%20AM.png" alt="">
The $991,000 sale was <a href="https://www.realestate.com.au/sold/property-house-sa-eden+hills-125265266" target="_blank">a four bedroom home on a hillside 2413 sqm block at Eden Hills</a> (above). 
The home marketed as "elegant and huge" had been tipped by Harris Real Estate to fetch $850,000 plus.
The $290,000 Aldinga Beach sale was a 1970s townhouse that had been a $250 a week rental when last offered vacant three years ago.
The national clearance rate held firm around 74 percent on lower auction activity in the first week of May, according to CoreLogic’s latest report.
Rapidly falling volumes appear to have underpinned the national auction clearance rate as buyer hesitancy begins to emerge given rising interest rates and overheated markets.
The property data firm says that this week, 1,662 capital city auctions were held and preliminary results show that 1,365 auctions have been reported so far, with a preliminary clearance rate of 74.6 percent, rising from a final clearance rate of 74 percent last week across 2,350 auctions.
Clearance rates remain above the long term average across the largest capital cities, but the rolling four week average reveals a softening trend in Sydney’s final clearance rate.
Both Sydney and Melbourne maintain their place as the strongest auction markets.
This week’s combined capital city preliminary clearance rate is stronger than one year ago, when 67.7 per cent of capital city properties cleared, however auction volumes are lower than this time last year when 2,230 homes were taken to auction across the combined capitals.
Across Melbourne, 782 homes were taken to auction and preliminary results show a clearance rate of 78.4 percent, up slightly from last week’s final clearance rate of 78.1 percent across 1,226 auctions.
At the same time last year, Melbourne’s clearance rate was 73.2 percent, with 1,150 auctions held across the city.
The North East region was the best performer in terms of clearance rates, with a 89.4 per ent success rate. 
Melbourne's top sale was $3.7 million in Balwyn for a home with 500 sqm of living space through MICM Real Estate.
<img src="https://www.urban.com.au/images/2017/05/08/Screen%20Shot%202017-05-08%20at%209.56.17%20AM.png" alt="">
 
It was a five bedroom home with study and six bathrooms, built in the French provincial style on <a href="https://www.realestate.com.au/sold/property-house-vic-balwyn-125159990" target="_blank">its 740 sqm Metung Street block</a> (above).
The vendors had unsuccessfully sought $3.9 million at its June 2016 auction.
It first sold as a new-build in 2011 at $2.82 million.
Sydney was host to 585 auctions this week, down from 811 last week and 676 at the same time last year.
A preliminary clearance rate of 77.8 percent was recorded this week, representing an increase from last week’s 74.3 percent and higher than one year ago (71.8 percent).
"The performance across Sydney’s individual sub regions was varied," Kevin Brogan, the CoreLogic auction analyst said.
Across Blacktown, where 11 results have been reported so far, the preliminary clearance rate was 36.4 per cent, while across the Central Coast secured 89.5 percent and City and Inner South secured 88.5 percent.
There were 105 auctions held across Brisbane this week, down from 124 last week, and significantly lower than one year ago (195).
Preliminary results for the city show that 60.8 percent of auctions were successful this week, up from 52.9 percent last week, while one year ago 41.2 percent of auctions were sold.
Brisbane's cheapest weekend result was $355,000 in Zillmere, for a home on a 610 sqm block of land not too far from Nudgee College. 
<img src="https://www.urban.com.au/images/2017/05/08/Screen%20Shot%202017-05-08%20at%209.57.48%20AM.png" alt="">
<a href="https://www.realestate.com.au/property-house-qld-zillmere-125140418" target="_blank">The 1970-build three bedroom home</a> (above) with 95 sqm of living space had been last traded in 1977 at $27,450, so reflected 6.6 percent annual growth over the four decades.
A total of 95 auctions were held in Adelaide this week, up from 83 last week, and similar to last year (94).
Preliminary results for the weekend show 66.7 percent sold across Adelaide, up from 63.5 percent last week.
There were 56 auctions held in Canberra this week and the preliminary clearance rate was 65.3 percent, down from 68.3 percent last week and higher than one year ago (54.3 per cent).
Like several other capitals, Canberra's cheapest offering was a townhouse.
<img src="https://www.urban.com.au/images/2017/05/08/Screen%20Shot%202017-05-08%20at%209.58.48%20AM.png" alt="">
 
It was a <a href="https://www.realestate.com.au/property-duplex+semi+detached-act-amaroo-125273026" target="_blank">three bedroom Amaroo duplex townhouse</a> (above) that fetched $430,000, having come with $399,000 plus price guidance from LJ Hooker. It had last sold at $382,000 in 2010.
 
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Compact Chelsea townhouse priced as Australia's most affordable auction offering

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Rural sales activity is increasing in south-west Victoria, according to Herron Todd White’s latest report.
The activity is primarily small to medium size farms purchased by local farmers wishing to expand.
The property valuation firm says there is strong interest in grazing holdings suitable for sheep or beef cattle of between 100 and 175 hectares, as well as larger holdings up to 800 hectares.
“Agents report the enquiry for outpaddocks around Warrnambool is very strong, listings are down and agents’ real estate advertisements are now regularly including a list of wanted property for prospective purchasers,” the report advised.
“We are aware of a large dairy farm in the Mount Gambier district having just been purchased by a private New Zealand syndicate.
“An expression of interest marketing closing on 21 April 2017 for a well developed dairy farm of 160 hectares between Cobden and Simpson will provide a pointer to the current dairy farm market.” 
A rural cropping land at <a href="https://www.realestate.com.au/property-cropping-vic-illowa-7869850" target="_blank">35 Settlers Lane</a>, Illowa (above) has been listed for $325,000.
Similarly a 20 hectare rural land at <a href="https://www.realestate.com.au/property-other-vic-warrnambool-7613547" target="_blank">135 Boiling Down Road</a>, Warrnambool (below) has been listed for sale.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/26/135%20Boiling%20Down%20Road.jpg" alt="">
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South-west Victorian farm sales increasing: HTW

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

Joel Robinson

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

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

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

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

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

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

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

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

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

Staff reporter

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