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Annual inflation has crept back into the Reserve Bank of Australia's 2-3 per cent target range for the first time in 3 1/2 years after a jump in education, health and transport costs.
CBA noted inflation is essentially comfortable.
"To be more precise, inflation has bottomed, and is lifting - albeit at a very modest pace.
"In fact inflation has only crept into the lower end of the Reserve Bank’s target 2-3 per cent inflation band for the first time in 2½ years."
Justin Smirk at Westpac noted rising fuel prices were there, as was the usual seasonal bump in education and health as well as the jump in power bills.
"And we did see a bit of a lift in dwelling prices (which now includes attached dwellings) associated with strong jumps in Sydney and Brisbane which added to the expected lift in electricity prices.
"However, as we noted in our preview, there was clear risk that the recent appreciation in the AUD, along with intense competition in the retail space, would limit the upside risks and, in fact, could present some downside risks to our forecasts.
"In the end this came through with falling prices for clothing &amp; footwear household contents and services, car prices, audio visual &amp; computing &amp; international travel.
"All up core inflation rose just 0.4%qtr/1.8%yr with a six month annualised pace of just 1.8% year," he noted.
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j.ballantyne1990-6AQqhLzZaK

Inflation picks up in March 2017 quarter

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Listed financial services provider Thorn Group has agreed terms on a lease for office space in Melbourne’s Richmond, at a rate the leasing agents say is the the top rate in the area.
The 577 Church Street property was let at $151,000 per annum net, on a three-year term with a further option of two years. 
The leasing agents were Teska Carson’s Fergus Evans and Luke Bisset along with Colliers’ Tom Rothel.
Evans said the rental, at a rate of $500 per square metre was, with one other Cremorne Street property, the top rate in the area.
"This is an immaculate office space with panoramic city views in one of the most sought after inner suburban or fringe office markets in Melbourne and that was reflected in what is currently the highest square metre rental rate in Richmond,” said Evans.
“The grand foyer, large boardroom, roof top garden or balcony and 180 degree views, along with the open plan area and separate partitioned offices, secure access and car parking make this a highly attractive property.’’ Evans said. 
The 300 square metre property is in the heart of Richmond’s café and fashion precincts and provides easy access to public transport.
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Thorn Group takes office lease in Melbourne's Richmond 

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Weakness in discretionary spending habits of consumers continues and looks set to stay in place throughout 2017, according to Herron Todd White’s latest report.
The property valuation firm says that retail owners remain under pressure to maintain occupancy in their assets, with evidence of increasing incentives in this market.
"Vacancy rates increased across the board throughout the last year however remain lowest in the Hay and Murray Street Mall locations, followed then by regional shopping centres.
There is however an increasing trend towards tenants on short term leases, holding over and pop-up style shops," the report stated.
HTW advises that construction activity in regional and sub-regional sector will need to increase over the coming years.
"Over the next few years construction activity across the regional and sub-regional centre sector will need to increase as owners seek to grow and reposition their assets," the report advised.
Retail as an asset class is in the midst of a changing paradigm with many assets under utilised or failing to meet the expectations of consumers.
The integration of better child care, office, health and entertainment offerings needs to be considered to keep assets front of mind for the ever more discerning consumer.
"However increasing vacancies, stagnant or declining rents along with a moderating population growth have created more uncertainty for the timing of some of the mooted major centre expansions.
Recently, rising neighbourhood centre space combined with subdued demand has caused rental rates to deteriorate.
Neighbourhood centre rents declined by approximately 10% during 2016 to average around $600 per square metre.
Retail as an asset class remains on the radar for many investors (institutional, syndicates and private high net worth individuals) as it provides a relatively secure cash flow or upgradable investment options," the report stated.
This has resulted in investors accepting lower internal rates of return which is flowing into tighter yields for quality assets.
“We have noted a marked increase in eastern states based private investors who are willing to accept far lower yields for assets than local investors are prepared to accept,” the report stated.
The focus of the next WA government needs to be on investment in infrastructure which will support the shift from Perth being a mining headquarters to becoming a bona fide tourist destination.
"With that investment from government will come private development opportunities in the form of hotels and tourism based centres which will in turn drive the demand for world class retail opportunities, which will be the impetus to trigger retail expansion.
Government and industry need to work together on this solution otherwise the outlook for retail in Perth on the whole will remain bleak," the report advised.
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Perth retail market continues to experience increasing vacancy rates: HTW

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The NSW Government plans for the next section of Barangaroo’s public domain have been revealed, with forthcoming features set to include a new Sydney Harbour cove, a one-hectare public park, an expanded waterfront walkway and a public pier. A proposal released by the Barangaroo Delivery Authority fulfills its commitment to delivering more than half of Barangaroo as open public space, and completes the design of the two hectares dedicated to Barangaroo South.
<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/Barangaroo4.jpg" alt="" width="368" height="230">
Chief executive officer of the Barangaroo Delivery Authority, Craig van der Laan, remarked that the designs are an exciting proposal for the creation of more beautiful public spaces at Barangaroo, which will be of enormous benefit to the people of Sydney.
“The new harbour cove and public park represent the next step in the extraordinary transformation of Barangaroo from a 22-hectare concrete container terminal into a world class, vibrant waterfront precinct,” he said in a statement. 
Lendlease will construct the public space, which is due to open in 2021. Landscape architects Grant Associates, who designed Gardens by the Bay in Singapore, have created the park and garden design.
The design includes Waterman’s Cove, a fully-accessible amphitheatre-style boardwalk on the water. It also includes the extension to Wulugul Walk around the Crown Sydney Hotel Resort. 
<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/Barangaroo3.jpg" alt="" width="372" height="238">
 The one-hectare Hickson Park will provide a green link from the CBD into the heart of Barangaroo’s retail and dining precinct.
Architect and design adviser, Bob Nation AM, who has overseen the design development, added that the plans provide extensive public benefit and a completely different park experience to Barangaroo Reserve and the waterfront parkland proposed for Central Barangaroo.
“The Reserve catches a lot of direct sun, as will the western-facing parklands in Central Barangaroo. Hickson Park will get the northern sun in winter, but will be more sheltered from the wind and the hot western sun in summer,” he said.
<a href="https://www.propertyobserver.com.au/images/2017/04/26/Barangaroo5.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/2017/04/26/Barangaroo5.jpg" alt="" width="370" height="262">
According to Lendlease's managing director of Barangaroo South, Rob Deck, the business is delighted to be working with the Authority on the next important stage of Barangaroo.
“Grant Associates will bring their extensive international expertise to create a truly exceptional public space,” he said.
A Development Application will be lodged with the Department of Planning and Environment, and be available on public exhibition as part of the planning process.
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NSW Government reveal plans for new harbour cove and public park at Barangaroo

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GUEST OBSERVER
This year is the United Nations’ International Year of Sustainable Tourism for Development. UN World Tourism Organisation Secretary-General Taleb Rifai declared it gave: "A unique opportunity to advance the contribution of the tourism sector to the three pillars of sustainability – economic, social and environmental, while raising awareness of the true dimensions of a sector which is often undervalued."
Sustainable tourism comes from the concept of sustainable development, as set out in the 1987 Brundtland report. Sustainable development is:
"A development which meets the needs of current generations without compromising the ability of future generations to meet their own needs.
British environmental activist George Monbiot argued that, over the years, sustainable development has morphed into sustained growth. The essence of his argument is that little resolve exists to go beyond rhetoric. This is because environmental crises require we limit the demands we place on it, but our economies require endless growth.
At the moment, economic growth trumps environmental limits, so sustainability remains elusive.
What is sustainable tourism?
Tourism is important to our efforts to achieve sustainable development. It is a massive industry, and many countries rely on it for their economies.
In 2016, more than 1.2 billion people travelled as tourists internationally, and another 6 billion people travelled domestically.
According to the UN World Tourism Organisation, sustainable tourism is:
"Tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities."
Following on from Monbiot’s criticism, we might ask if efforts are directed at “sustaining tourism”, or instead harnessing tourism for wider sustainable development goals.
No place is off the tourism circuit
Looking at some of the tourism trouble spots, complacency is not called for.
Venice residents have accused tourists of “destroying their city”. Barcelona’s government has passed legislation to limit new tourist accommodation. The Galapagos sees mass tourism’s arrival threatening the iconic wildlife that attracts visitors.
No place is off the tourism circuit, so tourism grows with few limits. Ironically, tourists even want to tour Antarctica to see its pristine environment before it disappears (“last-chance tourism”). This is despite their impacts contributing to global warming and threatening this last wild place.
It is difficult to get a complete picture of the impacts of tourism because no-one is working to build a comprehensive view. So, insights are fragmented.
While we might be sceptical that UN “years” are often more rhetoric than real, we can nonetheless seize the opportunity to make tourism more sustainable.
How can tourism be made more sustainable?
Tourism can be made more sustainable through several achievable measures. Some look to technological solutions so we can continue business as usual. Others highlight conscious consumerism and ideas like slow travel.
But in a world in which growing populations with endless consumer demands are pitted against a fragile environment, we require more concerted effort.
1) Governments must implement policies that foster sustainable development by overcoming the growth fetish. Tourism then should be developed only within sustainable development parameters. Governments must tackle the environmental limits to growth and climate change challenges we confront. Tourism development requires integrated planning. So, we need the government tourism authorities – such as Tourism Australia or state tourism commissions – focused equally on integrated planning as the marketing they currently emphasise.
2) Consumers should be educated for responsible travel choices. For example, few realise that all-inclusive resorts result in economic benefits from tourism leaking out of the host economy back to the home economies of the big multinationals and corporations that often own such resorts (think Club Med). Civics education in schools could educate for responsible travel.
3) Local communities, often treated as only as one stakeholder among the many, must have a right to participate in tourism decision-making and have a say on if and how their communities become tourism destinations.
4) Workers of tourism must have their rights respected and given decent conditions. Tourism should not be allowed to continue as a low-wage and precarious source of employment.
5) The tourism industry needs to assume greater responsibility, submitting to local tax regimes and regulations so its presence builds thriving communities, rather than undermining them. This is increasingly essential as a social license to operate. The industry should also educate its clients on responsible tourism.
6) Non-governmental organisations are essential for reporting on the abuses of tourism, including land grabs, human rights abuses, community opposition and corruption.
Harnessing these essential stakeholders in a rigorous agenda for sustainable development, rather than sustaining tourism, would make the UN’s “year” more meaningful.
 
Freya Higgins-Desbiolles is affiliated with the Centre for Tourism and Leisure Management, University of South Australia. She can be <a href="https://theconversation.com/profiles/freya-higgins-desbiolles-181651" target="_blank">contacted here</a>.
 
 
 
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Tourism industry grows without restriction – but there are ways to curb its environmental damage

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Commercial property prices have continued to rise by more than rents, and yields have now reached historically low levels, according to RBA’s Financial Stability Review 2017.
Nonetheless, yields on Australian commercial property remain higher than in many overseas property markets and other asset classes, which has attracted investors, including foreign buyers, it noted.
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.8.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%202.8.jpg" alt="">
The current heightened commercial property valuations may leave some leveraged investors vulnerable to subsequent price declines.
In particular, if global interest rates were to increase more quickly than investors currently anticipate or demand from foreign or domestic investors were to decline, a consequent price decline may lead leveraged property investors to breach loan-to-valuation covenants on bank debt.
They would then be required to inject additional equity to support their loan facilities, which may prompt further sales and price declines if they were unable to do so.
Like residential property markets, conditions in commercial property markets vary significantly by state and type of asset.
Investor demand is strongest in Sydney and Melbourne, and for office and industrial properties.
In Sydney and Melbourne, prices for office property are rising, and growth in rents has increased in recent months due to strong tenant demand.
In Brisbane, office prices are rising at a much slower rate, while prices in Perth are flat. Office vacancy rates are elevated in Brisbane and Perth (Graph 2.9).
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.9.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%202.9.jpg" alt="">
There is some evidence that conditions in the prime-grade Brisbane and Perth office markets may be stabilising, though this appears to have come at the expense of secondary-grade markets where the outlook remains weak.
Falling rents and increasing vacancy rates have motivated tenants to relocate into better quality office spaces.
Accordingly, prime-grade tenant demand picked up in Brisbane over the past six months, while in Perth analysts generally expect the vacancy rate in prime-grade office property to stabilise, with little new supply forecast to come on line over the next couple of years.
Conditions in industrial and retail commercial property markets also vary by city. Stronger local economic conditions and infrastructure investment have supported tenant demand in the Sydney and Melbourne industrial markets, and rent growth has picked up noticeably in Sydney.
Conditions in Brisbane may be stabilising, while rents in Perth continue to fall.
In retail property markets, tenant demand has been soft nationally.
In 2016, APRA reviewed banks’ commercial property lending practices, including lending for residential development.
The review examined banks’ underwriting standards and portfolio controls.
Among other things, the review found evidence at some ADIs of weak underwriting standards and that the ability of lenders’ boards to monitor the risk profile of lending was hampered by inadequate information systems.
Over the past six months, banks have tightened their commercial property lending standards and growth in banks’ commercial property exposures has slowed, due primarily to slower growth in lending for residential and land development (Graph 2.10).
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.10.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%202.10.jpg" alt="">
A decline in Australian banks’ commercial property exposures has been offset by an increase in Asian banks’ commercial property exposures (Graph 2.11).
<a href="https://www.propertyobserver.com.au/images/2017/04/19/Graph%202.11.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%202.11.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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Commercial prices continue to rise more than rents: RBA

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A parcel of 24 rural properties located in Victoria’s agricultural region of Colac Otway is being marketed by CBRE Agribusiness. 
Located between Geelong and Portland, the portfolio consists of properties ranging in size from 30 hectares to 240 hectares, including some harvested properties that will be available for purchase with vacant possession.
Comprising around 2,600ha of freehold land, it is currently planted to Eucalyptus Globulus.
CBRE’s Peter and Jarrod Ryan are marketed the properties. 
According to Peter, the portfolio represented an outstanding opportunity to acquire attractively priced land in a reliable, high rainfall agricultural region.
“Previous to its current use as a timber plantation, the properties were utilised for either high value dairy or grazing – and provide significant scope for reversion to these uses,” he said.
“Alternatively, post-harvest, the properties are suitable to replant to a range of timber species, with their location ideal for plantation management being situated within haulage range to export ports at Geelong and Portland, and also close to processing facilities at Colac, Geelong and Portland.”
The Otway Portfolio is being offered for sale either as a portfolio, individual properties or any combination to suit requirements.
Asset manager New Forests Asset Management is also seeking to enter into sale and leaseback arrangements with the purchaser, retaining management of the properties until the conclusion of each harvest.
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Timber opportunity in prime Victorian forests

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Westpac has raised the fixed rates attached to nearly all of its interest only packaged loans.
The bank lifted fixed rates by up to 30 basis points, with interest only rates for owner occupiers now on par with the rates available to investors. 
Owner occupiers on interest-only fixed loans will be the hardest hit — iincreasing rates by 30 basis points across 1, 2, 3, and 5 year fixed deals.
Westpac’s sister banks St.George, BankSA and Bank of Melbourne also joined the rate hike with increases of up to 25 basis points.
A small number of four year fixed rates were slashed however, with 25bp being the most generous cut among them. 
This news comes after CommBank hit investors across 14 of its mortgage products last Friday, with hikes of up to 0.50 basis points.
Last month Westpac increased its variable home loans interest rates for: 
<ul>
<li>Owner occupiers customers by 0.03% to 5.32% per annum with principal and interest repayments (comparison rate 5.46% per annum*)</li>
<li>Owner occupiers customers by 0.08% to 5.49% per annum with interest only repayments (comparison rate 5.63% per annum*)</li>
<li>Residential investment property loan rate customers by 0.23% to 5.79% per annum with principal and interest repayments (comparison rate 5.93% per annum*)</li>
<li>Residential investment property loan rate customers by 0.28% to 5.96% per annum with interest only repayments (comparison rate 6.01% per annum*)</li>
</ul>
 
Comparison site finder.com.au found the likely <a href="https://www.finder.com.au/bank-interest-rates" target="_blank">average home loans rates</a> (below).
They compared the <a href="https://www.finder.com.au/cheapest-home-loans" target="_blank">cheapest home loan rates available</a> and found UBank have the lowest interest rates at 3.74 percent.
<a href="https://www.propertyobserver.com.au/images/2017/04/26/Finder%20home%20loans.jpg" target="_blank">Click here 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/2017/04/26/Finder%20home%20loans.jpg" alt="" width="614" height="184">
Mozo have too <a href="https://mozo.com.au/home-loans/fixed-rate" target="_blank">compared the best fixed rate home loans</a>, suggesting CUA offer the lowest interest rates at 3.84 percent.
In a ratecity.com.au's '<a href="https://www.ratecity.com.au/home-loans" target="_blank">Todays top loans section</a>', Beyond Bank offers a rate of 3.88 percent.
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Westpac raise interest-only fixed rates for owner occupiers and investors

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Fresh data from PRDnationwide has indicated that the Coolangatta property market cooled during the final quarter of 2016, having recorded growth in median house price of just 1.0%, and unit prices experiencing a reduction of 4.2%. As one of the earliest settlements on the Gold Coast, Coolangatta is located approximately 29 kilometres from the Gold Coast CBD. Its predominant demographic is singles and home sharers between the age of 35 and 44.
During this period, Coolangatta properties received a median house price of $600,000 and a unit price of $445,000. Comparatively, median house prices in the nearby Gold Coast City region grew by 7.0% to $610,000 and unit prices lifted by 3.9% to $400,000.
<a href="https://www.propertyobserver.com.au/images/2017/04/19/coolangatta%20graph.png" target="_blank">CLICK TO ENLARGE</a>
<a href="https://www.propertyobserver.com.au/images/2017/04/19/coolangatta%20graph.png" target="_blank"><img src="https://www.urban.com.au/images/2017/04/19/coolangatta%20graph.png" width="700" height="512"></a>
Ongoing project development in Coolangatta and its surrounding suburbs for the first half of 2017 is valued at approximately $19.6 million, of which more than half (57.7%) is to be spent on residential dwellings. This is followed by infrastructure (25.5%) and mixed use developments (10.2%).
Positively, rentals in Coolangatta recorded a very low average vacancy rate of 0.3% throughout December 2016, with the low rate suggesting that there is consistent high demand for rental properties, in turn signifying a healthy investment environment.
Median rent for units in Coolangatta has enjoyed a rising trend over the past year, sitting at $413 per week in the final quarter of 2016. House rent has experienced a slight decrease to $480 per week.
The average amount of days rental properties have sat on the market has stayed under 31 days over the past year, with houses currently sitting at a low 24 days and units at 19 days.
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Coolangatta property market cooled in late 2016: PRDnationwide

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The NSW Central Coast's strongest performing locations - both now and for the past several years - has been the peninsula suburbs at the southern end of the region, according to Herron Todd White’s latest report.
The property valuation firm says that included Umina Beach, Woy Woy and Ettalong with records being set and broken in very short periods of time.
"Almost daily, we talk to people and hear the surprise at the prices being paid," HTW's latest report noted.
"These areas have been around forever.
"Originally a holiday or retirement destination, this has been evolving over the years to become popular with first home buyers or those looking at a lower cost base.
"Nowadays, these areas have become a magnet for renovators, value adders with those looking to exit the Sydney market finding these areas particularly attractive due to the comparative level of affordability," the report stated.
It’s this exodus from the Sydney market that is seen to be driving the values in these locations.
"Regularly, we are seeing prices rocketing past the $700,000 mark when the same property could have been purchased for much less just a few short years ago.
A three bedroom villa at <a href="https://www.realestate.com.au/property-villa-nsw-ettalong+beach-125076934" target="_blank">3/30 Flounder Road</a>, Ettalong Beach (above) has been listed with a price guide of between $675,000 to $725,000.
Similarly a four bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-woy+woy-124940918" target="_blank">35 Pratley Street</a>, Woy Woy (below) has been listed with a price guide of between $670,000 to $735,000.
<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/2017/04/20/35%20Pratley%20Street.jpg" alt="">
"Knowing this, established locals are reluctant to pay the asking prices, but for every hesitant local, there is a new resident eager to step in," the report noted.
$700,000 nowadays will secure a 2-to 3-bedroom fibro dwelling close to the shops and beach or a mid 1970s style, 3-bedroom brick and tile a little further from the shops," the report advised.
Renovations are aplenty and the builders are happy.
"The peninsula has always had a love affair with backyard granny flats, mostly in the form of a converted garage and some even being council approved.
But recently, they have been popping up everywhere and granny flat builders are flat out.
These are particularly popular with investors who in many cases are effectively doubling the income received from a property.
"Whether the proliferation of granny flats is good for the area remains to be seen, but we have been saying for some time now that the increasing values have passed the point of being sustained on an ongoing basis and we still believe this to be the case," the report stated.
"The market moves on without waiting and whilst we can worry about the future of the peninsula’s values, a flow on effect is being seen in other areas further along the coastal strip and at this stage, we haven’t heard any complaints of things getting out of hand.
“In this regard, we see the older areas on the fringe of the Gosford CBD as being the big winners.
"This includes areas such as Narara, Niagara Park and Wyoming,” the report stated.
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NSW Central Coast granny flats doubling investor income: 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

Developer <a href="https://www.apartments.com.au/developers/drew-group">Drew Group</a> is wasting little time following the completion of Lagoon Main Beach, lodging plans for another high-rise apartment development less than two kilometres away at the northern end of Surfers Paradise.

Drew Group, led by local developer Jon Drew, is pitching for a 32-storey residential tower at 180–184 Ferny Avenue, replacing three low-rise buildings on a prominent 1,055 sqm corner site just 150 metres from the beach.

Drew called on architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/bda-architecture">BDA</a>&nbsp;to design the new slender tower, which will have 130 apartments. BDA drew on the inspiration of legendary architect Frank Lloyd Wright's philosophy of organic architecture, which seeks "a superior sense of use and a finer sense of comfort, expressed in organic simplicity."

"The design creates a seamless dialogue between built form, natural elements, and the iconic Surfers Paradise context," BDA wrote in the application recently submitted to the Gold Coast City Council.<img alt="First look: Drew Group eyes next Gold Coast tower after completing Lagoon Main Beach" data-entity-type="file" data-entity-uuid="5dcaa84d-67ba-4e22-b8f1-208ca5056b05" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/surfers%20paradise%20da.png?VersionId=Ah9oBOlL0ofC5eboXSI.dEq9VRfEnFaT" />

BDA also drew inspiration from New York's iconic Flatiron Building, with softened curved corners responding to the geometry of the triangular site. While referencing the 1902 Manhattan landmark, the design reinterprets its distinctive form through a contemporary coastal lens.

Drew is targeting the Gold Coast's "missing middle" market, a segment that has arguably been underserved in recent years. The project is weighted towards owner-occupiers, with 104 two-bedroom apartments complemented by a further 26 one-bedroom residences.

Resident amenity will be centred on the level five podium, featuring a resident lounge, gym, yoga room, steam room, sauna, lap pool with a lagoon area, spa, cold plunge and magnesium plunge.&nbsp;

Additional resident facilities will occupy the rooftop, including work-from-home spaces, a meeting room, resident lounge with a full kitchen, bar and dining area, as well as a dedicated wellness zone with additional plunge pools, steam rooms and saunas.

<img alt="First look: Drew Group eyes next Gold Coast tower after completing Lagoon Main Beach" data-entity-type="file" data-entity-uuid="a1392ad9-620b-41f9-957d-b1fcec13613f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/surfers%20da%20podium.png?VersionId=9kDudIwvCaZFW6F8IyXGP6wQg0B_VS3E" />

The application follows the completion of Drew Group's Lagoon Main Beach, which only has around four apartments left to sell after a successful sales and marketing campaign.

Built by Hutchinson Builders, Lagoon comprises 248 apartments and was popular with local owner-occupiers and interstate buyers.

First look: Drew Group eyes next Gold Coast tower after completing Lagoon Main Beach

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.

Staff reporter

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