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Lismore’s retail market had been forecast to remain the same as 2016 except with slightly reduced sale rates, according to Herron Todd White’s recent report, which was issued just prior to the flood that hit the NSW town.
“We envisage the retail sector for the NSW Far North Coast to be a continuation of 2016, however, with slightly reduced sale rates and less volatility in pricing growth for the more coastal situated properties,” the report stated.
The property valuation firm also says that pricing growth will be less volatile for coastal situated properties.
The report noted the coastal located townships of Byron Bay, Mullumbimby, Bangalow, Lennox Head, Ballina and Yamba will continue to be impacted by increased demand and limited supply of good quality stock.
The owner occupier purchasers will continue to lead the market in most regional townships; however, the investors will continue to be prominent in the traditional high demand townships of Byron Bay and to a lessor extent Ballina, Lennox Head, Yamba and Mullumbimby.
Byron Bay rents in prime CBD locations have been steady with recent increases noted.
"The current firming in yields noted during several prominent sales over the Christmas/New Year period is expected to stabilise over the balance of 2017, with the market remaining strong.
The strength behind Byron Bay’s retail market remains with the tourist industry.
Local businesses are reporting a very strong tourist presence in the first two months of the year and this is expected to continue strongly throughout 2017," the report stated.
The investors will continue to be less prominent in the regional centre of Lismore and the regional townships of Casino and Kyogle for product priced under $500,000.
"This is likely to be a result of the historically limited supply of true investment product as well as downward pressure on rents.
There are currently increased vacancy rates in the Lismore CBD and this will cause uncertainty in being able to obtain a tenant over the balance of the year, the report noted before the recent flooding.
"From an investors perspective, the current price points up to $500,000 being paid by predominately owner occupiers in the regional townships (who are securing a premise to operate their business from and are less concerned with yields) are not considered to be great buys by potential investors (given the low yields and vacancy risks)," the report advised.
For the 2017 year ahead, the sub $500,000 market for retail property in non-coastal townships will continue to be driven by owner-occupiers looking to secure a location for their business.
"These acquisitions appear to be reasonably prudent given the low interest rates and generally stable to improving economic conditions.
Major retailers will remain strong and as a result of this, smaller mum and dad type businesses will continue to ‘do it tough’.
This will be reflected in the rental market - rents will remain stable in prime locations and there will continue to be downward pressure on secondary located properties," the report warned.
However, if the increasing vacancy trend in the Lismore CBD continues, downward pressure may begin for more centrally located properties.
It appears interest rates will continue to remain relatively steady with no indication of possible rate rises.
A"s such, throughout 2017 there should be continued interest from private investors and private super funds looking for superior returns (other than those available from the banks).
National tenanted properties will remain well sought after with stable to slightly lower yields," the report stated.
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Retail market in Lismore faced challenges for landlords before the recent flood: HTW

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Two premium streetwear stores within the Sydney CBD are on the market through Ray White by a private seller.
 Jonathon Holland from Ray White Business Sales said the businesses are situated near the heart of the Sydney CBD and are currently returning a net profit of more than $170,000 per annum from annual revenue of more than $450,000.
"The two stores each specialise in mid to high-end streetwear with one focused on menswear and the newest addition, focused on womenswear.
“The business currently stocks just under 50 brands in total and these include their own branded clothing, as well as brands such as Adidas Originals, Nike, ASICS, Champion, Puma, Reebok and Moscot.
“Proving to be a rare offering, the business is one of few Sydney Retailers stocking an exclusive range of international designer brands seeing it often attract crowds lining up down the street in anticipation of limited edition drops.
The new owner has the option to add new stock lines and continue with current store initiatives.
“The stores are located in a well-known and well-visited fashion precinct.
Mr Holland said the streetwear stores currently employ two full-time and one casual staff member and operate six days a week from 11am to 7pm.
The current lease for the main operation runs until 2019.
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Opportunity to acquire Sydney CBD streetwear stores

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Melbourne’s retail market continues its strong run and continues to improve, according to Herron Todd White’s latest report.
The property valuation firm says that Melbourne’s retail property market has continued its strong run over the past 12 months with supply generally limited and yields firming and reflecting pent up demand and rising prices.
The steady low interest rate environment, strong Australian dollar and the ongoing perception of being a safe haven have all combined to drive strong interest from domestic and overseas retail property buyers.
The Melbourne CBD retail property market continues to go from strength to strength.
Despite approximately 50 new shops opening in the 12 months to January 2017, the vacancy rate is stable and below the five year average.
“Rents have remained stable and range from $1,500 per square metre for CBD shopping centre space to $11,000 for Bourke Street Mall frontage while yields range from 3.5% to 6.5% for CBD shopping space and 3.5% to 5.5% for the Bourke Street Mall.
St Collins Lane, formerly Australia on Collins, which completed a $30 million upgrade in 2016, sold in November 2016 for $247 million on an initial yield of approximately 5% and a rate of $27,444 per square metre,” the report stated.
The revitalised site offers over 9,000 square metres of retail space over four floors.
With street frontage to Collins Street and Collins Lane in the heart of the Melbourne CBD, the centre comprises 60 specialty stores, including international brands such as The Kooples, Reiss, Sandro Paris, TAG Heuer and Coach plus restaurants.
The Melbourne CBD apartment construction boom and consequential growing population have been the driving force behind the strong market.
With more retailers scheduled to open their doors in the Melbourne CBD, including British retailer Debenhams’ first foray into the Australian market, and more apartment completions, 2017 is shaping up to be another strong year for the retail property market in the Melbourne CBD.
Within the suburban shopping centre market, owners may however be affected by store closures following the recent collapse of a number of retailers including Pumpkin Patch, Herringbone, Rhodes &amp; Beckett, Marcs, David Lawrence, Payless Shoes and Howards Storage World.
"Many commentators are forecasting more retail brands, particularly clothing retailers or fast fashion competitors, to fold in the face of increased competition from overseas retailers such as Uniqlo, H&amp;M, Zara and the forthcoming arrival of giants Amazon and Alibaba as well as a gradual yet inexorable move to online retailing.
"Store closures may affect suburban shopping centres in particular as it is precisely these shopping centres that the above named global players have pushed into," the report tipped.
Local mid-market players are effectively squeezed out both in terms of retail price of clothing and also in costs with overseas players able to negotiate lower rents than their local counterparts.
While the closure of one or two stores may not have much of an immediate impact for shopping centre landlords, over the longer term shopping centre vacancies on a larger scale may combine to push sales growth and rental growth down, subsequently impacting income levels and values of shopping malls.
Meanwhile, council valuations are released on a two yearly cycle and council rate notices for 2017 are now becoming available, it advised.
"As land values have generally risen markedly across metropolitan Melbourne it is highly likely that land tax bills will also increase.
"Landlords are likely to face higher land tax bills from the State Revenue Office.
"Under current Victorian state based legislation (the Retail Leases Act 2003), landlords are unable to recover land tax from their retail tenants unless the occupancy cost (rent and outgoings) exceeds $1 million per annum or the tenant is a listed corporation or a subsidiary of a listed corporation.
"Consequently, owners may try to recover higher occupancy costs through increases in rentals which tenants may resist.
It is therefore possible that higher land tax costs could lead to more lengthy and greater numbers of dispute resolution processes relating to tenancy occupancy costs.
“For example, we are aware of one large retail site in Hawthorn where the site value increased from $10.05 million in January 2014 to $11.223 million in January 2016 with the current land tax bill increasing from $183,600 to $210,000.
Although the Melbourne retail investment market currently appears to be strong and purchaser interest for retail properties is relatively high, we are of the view that this is led by an optimistic buyer perception of the market direction and may not ultimately reflect what is actually happening with tenant demand, affordability and achievable investment returns on a property,” the report stated.
There appears to be a discrepancy between capital values and rental income growth as capital values within precincts experiencing this exponential growth appear to be indicating strong growth whilst rental income growth appears to be moderate in comparison.
As such, the market within these precincts may be more strongly affected by economic volatility.
The Melbourne retail market has experienced a significant strengthening in purchaser demand over the past 12 to 24 months.
We have witnessed several strong results in recent times and it is worth noting that there is a perception of a rising market at present.
A downturn in the economy or a softening in local market conditions could lead to downward pressure on demand and price in the short to medium term.
Purchasers and tenants alike are advised to ensure due diligence and proper market research is conducted prior to making purchase and rental decisions.
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HTW expect increased Melbourne retail tenancy disputes after new State Revenue land tax valuations

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Brisbane’s commercial property market is expected to rise on the radar of investors over the next two years as yield compression reaches its peak in Sydney and Melbourne.
That was one of the key outtakes of CBRE’s annual Brisbane Market Outlook presentation, which highlighted the continued outperformance of Australia’s south east property markets had compressed yields to their tightest levels.
CBRE’s Head of Research for Australia, Stephen McNabb, said strengthening drivers in the Brisbane economy, coupled with an attractive yield spread, would drive an increase in investment over the coming years.
“The gradual improvement of Queensland’s economy, which has been gaining momentum over the past 12 months, is making Brisbane look more attractive – particularly given the yield in prime assets of 6 percent – 6.5 percent.
Office vacancy is forecast to drop below 10 percent by the end of 2019, which will support rental growth and ultimately yield compression.”
The presentation also referenced CBRE’s latest Investors Intentions Survey – highlighting 30 percent of Asian investors list Australia as their preferred APAC destination for investment.
“As the Sydney and Melbourne markets reach their peak in terms of yield, investors are looking for new locations – in particular markets that offer a higher yield spread,” Mr McNabb said.
The presentation was followed by panel discussion with CBRE experts – key points from which are summarised below.
Mr Baker said Brisbane was well positioned to capitalise on a shift in the investment cycle over the next two years.
“When capital pours into a strong market like Sydney, which is reaching its limit in yield compression, it starts to point to alternative markets that offer attractive yield spreads such as Brisbane,” Mr Baker said. 
“A recovery in Brisbane’s office occupier market will further support the attraction of capital, in addition to an increasing population lending itself to a sustained economic recovery.”
Mr Lawrence said for most borrowers, debt had become more important to their purchase and investment decisions given the current tight lending conditions and low for longer outlook.
“Australian Banks are facing a number of constraints at the moment in terms of capital costs and limits, resources and APRA focus on their property exposures. 
Australia is unique in the market share that domestic banks have in terms of property funding so these constraints have a large effect on the market,” Mr Lawrence said.
“The constrained conditions, particularly for development funding, are creating opportunities for alternative lenders.
Importantly many of these groups have a different capital model than the domestic banks.
This allows funders to provide loans with a longer tenor or a different risk/return profile than Australian banks.”
CBRE has active relationships with more than 270 lenders worldwide and is engaging with a number of these to develop Australian loan programs.
“We are seeing a significant increase in offshore lender appetite for Australia - often for the same reason that equity investors are attracted to Australia.
These funders are in a position to grow their lending books and provide a more diverse range of loan products than domestic banks,” Mr Lawrence said. 
Ms Fitzgerald said in an environment of relatively limited growth, property owners needed to seek out opportunities to optimise their portfolios, taking into account the importance of placemaking and customer service.
“It’s about creating places people enjoy and more importantly want to return to.
"Places that help people manage their work life balance.
"To provide that point of difference, property owners need to think beyond end of trip and gym facilities – they need to get a lot more creative,” Ms Fitzgerald said. 
“We create real value in our assets by providing focus on the experience and service offering."
For example, in September and October landlords might want to partner with tax agents for two weeks to provide a tax return service within the building.
"It’s still paid for by tenant employees, but you have facilitated the convenience – you have helped make their work life balance easier.
"It’s about reducing the impact of distracting, mundane tasks, so that people can focus on their work when they are in the office, or spend time with their family and friends in personal time.”
Mr Curtain said there had been a major shift in the focus of placemaking in the office sector over the past decade.
“For a long time the responsibility sat with occupiers to provide collaboration zones and additional amenities within the tenancy NLA. 
Landlords have now taken up this challenge and are offering a wide range of services and amenities to ensure the needs of their occupants from early in morning until late at night are catered for.
Major corporate organisations want to provide their people with a workplace experience that offers the same benefits as a five-star hotel.
This includes a comprehensive food and beverage offering, gymnasium, conference facilities and personal concierge.
Importantly, these services and amenities enhance productivity, and provide settings for people to collaborate and recreate within the work environment.
Grocon/DEXUS’ recently completed 480 Queen Street is a great example of this in practice offering 11 different food and beverage options, childcare, rooftop entertainment terrace and gymnasium.”
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Brisbane commercial landlords need to think beyond gym facilities 

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Property group Charter Hall Group has announced that its Direct Office Fund (DOF) has leased several floors in the glass wall skyscraper, 1 Nicholson Street, on the northern edge of Melbourne CBD for an eight-year term.
Leading water treatment and chemicals company Ixom has leased three levels of the building.
1 Nicholson Street is Melbourne’s first glass curtain wall facade skyscraper, designed by Bates Smart and built in 1958. The building comprises 18 levels of office, ground floor retail cafe and basement parking.
It is located opposite Parliament Gardens at the intersection of Lonsdale/Albert and Nicholson/Spring Streets with commanding views and natural light throughout.
Head of Charter Hall Direct, Steven Bennett said, “We are pleased to partner with an existing customer to deliver property solutions that meet their individual business requirements and create value.”
“We are excited that Ixom will continue to be located at the iconic 1 Nicholson Street building, and that they value the quality of the building and its strategic location in one of the most desirable precincts of the city,” Bennett said.
DOF currently comprises 10 office buildings in Sydney, Melbourne, Brisbane and Perth with a total value of $1.025 billion as of December 31, 2016.
The fund is currently open to investors who can expect to earn 6.25% per annum income distribution with the prospect of capital growth and the advantage of partial tax deferred tax returns.
DOF returned 15.9 percent per annum in the 12 months to 31 December 2016.
This compares to the benchmark return - the MSCI/IPD Australian Unlisted Wholesale Property Fund Index - of 11.1 percent over the same period.
“DOF is a flagship fund for the Charter Hall Direct business,” said Bennett.
"Its key characteristics of long WALE (weighted average lease expiry), 100 percent occupancy, exposure to the strategic markets of Sydney and Melbourne accounting for over 75% of the fund’s portfolio, conservative gearing, and high quality tenants, is emblematic of the Charter Hall approach to property investing and a reason for our ongoing success,” Bennett added.
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Charter Hall fund says Melbourne's iconic 1 Nicholson Street has new tenants

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Sales of retail properties in the Newcastle CBD continue to be slow, according to Herron Todd White’s latest report.
The property valuation firm says that there is a moderate level of confidence in the retail market; however, this is tempered somewhat due to major infrastructure projects not at the completion stage.
“As the new university campus on Hunter Street nears completion, which is expected mid 2017, we would expect to see more activity in the market as flow on from the influx of students and university staff to the CBD,” the report stated.
In addition to the university nearing completion the 1.66 hectare Hunter Street mall site was recently sold to a Sydney developer with plans to redevelop large portions on the site.
Early indications are that the development will include a large number of mixed use retail and residential developments, HTW noted.
“This will be a welcome change for the mall precinct, which has undergone a period of uncertainty during the time it was held by GPT.
Now, as some certainty comes back into this area we may see more activity,” the report stated.
The CBD is a tightly held market, and this is seen by the very low level of transactions in the past 12 months.
"This is not to say that there is no confidence in the market, more a willingness of owners and investors to wait for these major infrastructure projects to complete.
This willingness to wait for projects to complete is evidenced by the number of vacant retail shops in the immediate vicinity of these projects.
It is reasonable to presume that as projects progress these properties will be transacted, either as sales or rentals, as a result of the increased pedestrian traffic," the report stated.
HTW are seeing yields for retail properties in the mid 7 percent to 7.5 percent range.
It suggests confidence is definitely evident in the CBD and the next 6 to 12 months will provide good opportunities for current investors to maximise their returns as the number of people in the CBD increases.
"It will also make the CBD an attractive prospect for new investors and tenants, if these tightly held properties are put to market," HTW advised.
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Newcastle retail market slows down despite market confidence: HTW

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PowerHousing Australia, the peak body representing 28 of Australia’s largest Community Housing Providers (CHPs), has welcomed Treasurer Scott Morrison’s commitment to deliver a raft of measures that address housing right across the lifecycle spectrum.
"From aiding new supply, to creating more social and affordable housing, supporting first home buyers and seniors looking to downsize, this package has been a while coming but signals a step in the right direction for fixing Australia’s housing affordability challenges," PowerHousing CEO Nicholas Proud said.
Adopting the UK bond aggregator model will open streams of institutional funds to increase the supply of social and affordable housing.
He said community housing providers, were the industry’s quiet achievers, well-placed to leverage these funding flows to maximise new housing stock.
“PowerHousing Members have, over the past 10 years, grown into credible scale managers, operators and developers of new and existing social housing dwellings and we do this by quietly achieving the highest level of social outcomes.
“While public housing has decreased by 24,000 since 2007, community housing in Australia has over the same period grown from 33,526 to 72, 410 dwellings as per the recent Productivity Commission Report on Government Services.
The community housing sector has largely built scale on the basis of property transfers and the Federal National Rental Affordability Scheme.
“Providing funds through to the community housing sector will deliver more affordable homes more cost-effectively and assist those on low incomes through to first home ownership with more options, new housing and the potential for a suite of wrap around services to aid training, education, health and livable outcomes.
“We will have to wait until the Budget to know whether the Treasurer will secure the deep funding measures that are required to meet the gap between what those in affordable housing can provide and what it is vital to deliver in terms of dwellings into the long-term future.
This is an integral part of the CHP model and we are hopeful this gap will be addressed in the upcoming federal budget.
“There has been some solid work undertaken in the states with reviews of New South Wales, South Australia and Tasmania showing good progress in meeting National Agreement Targets such as facilitating 35 percent of public housing being operated by the Community Housing Sector.
“Ultimately access to new finance streams, as suggested here, allows for the best return on government investment with more affordable housing delivered at the lowest cost to taxpayers – a win-win situation.
“Today’s announcements are a strong Federal Government acknowledgement of our CHP Members’ commitment to being commercially astute and achieve economies of scale by working with government, tier one/innovative financial lenders and scale developers to design and construct affordable housing options.”
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PowerHousing Australia says Treasurer Morrison signals right first step towards affordability fix

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Heritage Victoria has approved further developments to the former Richmond Maltings site mixed-use development in Cremorne, Victoria.
Caydon Property Group has proposed a two-stage residential and commercial development for Caydon’s Malt District.
The new plans include the restored and working Nylex clock above the extruded concrete silos.
The Victorian Civil and Administrative Tribunal (VCAT) approved stage one of the development proposal last year.
A major feature of the revised plans is the retention of a majority of the concrete silos under the Nylex clock that were previously earmarked for demolition.
<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/2017/03/31/Cremorne_Rooftop_City_Final.jpg" alt="">
Jarrod Stratton, Caydon chief operations officer said the determination is significant because having agreement with Heritage Victoria on the heritage aspects of this important urban renewal site means we can confidently move forward on a project that has already captured significant public interest.
“We’ve listened to Heritage Victoria’s concerns about the original plans, and through constructive dialogue and collaboration have a consensus that includes further heritage retention, whilst still delivering our vision for the Malt District and a viable urban renewal project," he said.
"We will continue to consult and work closely with Heritage Victoria and other government officials on the remaining aspects of our plans, and appreciate their ongoing collaboration regarding this state-significant project.
"Retaining and restoring the significant heritage fabric of this site has always been a priority for Caydon, as has been returning the famous Nylex clock to working order for Melburnians to once again enjoy.
"We are now an important step closer to the Nylex clock being re-lit as a focal point of a great new destination for people to live, work and enjoy.”
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Heritage Victoria determination given to Caydon's Malt District redevelopment

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A Brighton house has been sold for $4.225 million making it one of Melbourne’s most expensive weekend auction sale.
Located at <a href="https://www.realestate.com.au/property-house-vic-brighton-124994102" target="_blank">24 North Road</a>, the 920 sqm property was offered for the first time in 17 years.
There is a potential to redevelop STCA with a 60 sq m right of way access via St Kilda Street along with two driveways to North Road.
<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/2017/04/09/24%20North%20Road-2.jpg" alt="">
It is within walking distance to Port Phillip foreshore.
It last sold in 2000 for $1.27 million.
The property was offered through Biggins &amp; Scott agents Bill Stavrakis and Eyal Malka.
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North Road, Brighton, Victoria house sold for $4.255 million

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McGrath Estate Agents, a division of McGrath Limited, today announced the opening of its 100th office in Toukley on the New South Wales Central Coast.
McGrath founder John McGrath said the opening of our 100th office was "an exciting and important milestone for McGrath."
“We opened our first office in Paddington, Sydney, 29 years ago.
"Over that time, we have strategically grown our footprint throughout the East Coast of Australia, targeting both emerging property and premium lifestyle markets.
“As we continue to grow, it remains important that we partner with high quality business operators who share our core values of honesty, transparency and integrity.
“It is serendipitous that the principals of our 100th office were also our very first franchise partners, when we opened on the Central Coast more than 10 years ago.
I am delighted that we can share this pinnacle with both Jaimie and Mat as they have played such an important role in the business over the years,” said Mr McGrath.
Jaimie Woodcock and Mat Steinwede, both currently in McGrath’s Top 10 agents ranking, will lead the team at McGrath Toukley.
Mr Woodcock and Mr Steinwede opened their first McGrath office in Terrigal in 2005, the company’s first franchise office and first regional office outside of Sydney.
Mr Woodcock said opening our fifth office in the region demonstrates our ongoing commitment to this important market.
Toukley is a natural extension from our existing office locations and an area experiencing strong and sustained growth.”
Steinwede said “It has been an amazing journey.
Located at the northern end of the Central Coast, Toukley is an affordable lifestyle destination.
The beachside suburb has experienced healthy growth with house prices increasing by 9.5 percent over the past 12 months to $460,000.
<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/2017/04/10/McGrath%20Toukley%20L-R%20%20Mat%20Steinwede%20Jaimie%20Woodcock%20John%20%20McGrath.jpg" alt="">
Woodcock said in Toukley and its surrounds, it is still possible to purchase a freestanding house with a backyard for less than $500,000, "which is exceptional value for money in today’s market.
“With significant investment in infrastructure and services in recent years, I believe demand in the region will continue to strengthen with price growth to follow,” said Mr Woodcock.
The new office is located at 248 Main Road, Toukley. 
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Mat Steinwede helps McGrath reach its 100th office milestone

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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