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An efficient market relies on rational customers being willing to change suppliers when there’s good reason to do so.
But what happens when customers stay put regardless?
This issue is particularly acute in the banking industry.
Even when bank customers have a very good reason to switch, behavioural economics research shows they’re often reluctant to make the move.
For example, big scandals that affect banks have a weak impact on consumer behaviour.
However, there is a greater propensity to act among customers who are directly impacted.
Behavioural economics also shows bank customers are often slow to switch to take advantage of better offers from competitors.
In 2016, the UK’s Competition and Markets Authority lamented that only “3% of personal and 4% of business customers switch to a different bank in any year” in the country.
In 2013, Canstar suggested the figure is slightly higher in Australia at 5%.
Despite the slightly higher propensity to switch banks among Australian consumers, there’s much we can learn from the UK’s use of behavioural economics to nudge customers to act in their own best interests.
In particular, financial technology companies can provide information platforms to make it easier for customers to switch.
Behavioural economists have shown that consumer decisions are not rational. In particular, there is a “sunk cost bias” that affects consumer decisions.
That is, consumers tend to place more value on any previous effort or expenditure they’ve made rather than judging economic value when they make decisions.
If you have left a 20% deposit on an item in a store, you will probably buy it, even if you found the same item for sale at 75% of the price elsewhere.
So, customers will tend to stick with the bank they’ve got, despite scandals.
Competition authorities, led by the UK’s Competition and Markets Authority, are increasingly trying the “nudge” options offered by behavioural economics as a way to help persuade an irrational consumer to do what is in their best interests.
A nudge is simply a mechanism to encourage people. It might be a reminder as to the consequences of not taking the action or benefits of going ahead.
Regulators have examined ways in which nudges can be given without unintended consequences.
For example, should the nudge be a carrot or a stick? And which works best? The UK’s Competition and Markets Authority’s chief economic advisor, Mike Walker, advises regulators to “test, learn and adapt”.
A critical part of any nudge is presenting information in a way that can be used easily by consumers.
Intermediaries, comparison tools and other financial technology services can provide this information.
One of the barriers at the moment to getting customers to switch in Australia is a lack of information on all bank products and financial technology businesses to manage this information.
Although the UK implemented services that make it easier to switch between retail bank accounts, the UK’s Competition and Markets Authority found that this didn’t improve competition in the sector.
To resolve this problem, it has ensured that customers have information on other banks and their account options as part of new account-switching regulation.
The way that this works is that customers can compare their existing offering with alternatives using an app that talks to an open electronic interface to the bank.
The UK’s Competition and Markets Authority has mandated that the retail banks provide this interface, known as an applications programming interface, to both consumers and to financial technology businesses.
The effect is a space for new businesses to provide comparison tools.
These new financial technology businesses will not impose a significant cost on the banks.
Each of the UK banks has spent around £1 million each to create these open electronic interfaces, according to the UK Open Data Institute.
The open electronic interfaces will be associated with the European Union Second Payment Services Directive, which will be implemented before Brexit takes effect.
This directive will help automate parts of the switching process.
The Australian banks and the Reserve Bank under the auspices of the Australian Payments Clearing Association are trialling a New Payments Platform to try to make it easier for customers to switch.
But it’s not likely to have the same degree of flexibility and consistency as the approaches adopted in the UK, as it focuses on financial institution needs, rather than consumer ones.
Regulators in Australia should use behavioural economic analysis to learn more about how consumers use any new information on bank switching or services on this offered by financial technology businesses.
We’re still waiting on evidence on how these new financial technology companies will change consumer behaviour in the UK.
But it is likely that in the very least it will increase the intensity of rivalry between the retail banks, this can only be a good outcome for consumers in the UK.
This could also inform a similar implementation in Australia, particularly after a parliamentary committee’s first report on the four major banks is released.
<a href="https://theconversation.com/profiles/rob-nicholls-91073" target="_blank">Rob Nicholls </a>is a lecturer in Business Law at UNSW and is an author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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j.ballantyne1990-6AQqhLzZaK

If scandals don’t make us switch banks, financial technology might: Rob Nicholls

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In his recent presidential address to the American Economic Association, Nobel Laureate Bob Shiller drew attention to the importance of narratives in economics and, particularly, in financial markets.
This corroborates some recent research by the author and colleagues at the University of Queensland into the psychology of economic behaviour.
When we tell ourselves stories, we link up a number of different events into a coherent whole.
In financial markets and across the economy as a whole, these stories not only affect expectations but are expectations.
And expectations shape behaviour.
Our research shows that the more simple a story, the more it extends and agrees with preconceptions, the more persuasive it is.
A good story becomes embedded in investors’ minds; the story becomes the expectation.
If a narrative embedded in the mind of an investor tells a positive story about, for instance, profitability, they will act on it.
A positive story results in good news in the financial markets.
An example of what might occur when a powerful narrative spreads across financial markets is playing out right now.
The latest figures from the Australian Bureau of Statistics (ABS) reveal a huge spike in commercial loans last November.
Seasonally adjusted, there was a 14.8% increase in commercial finance from the month before.
The strange thing is, this surge occurred at the same time NAB’s Monthly Business Survey showed businesses were “increasingly concerned about the underlying momentum in the economy as evidence mounts that the non-mining economy is losing steam”.
Businesses expecting a sluggish future don’t suddenly go out and borrow 14.8% more money.
But we can see in the graph below that for much of the year business finance had been flat or declining. Until it wasn’t.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%2012.43.55%20pm.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/2017/02/07/Screen%20Shot%202017-02-07%20at%2012.43.55%20pm.jpg" alt="">
Now these are aggregate data; they tell us the change in the amount of lending to business done by the financial sector as a whole.
Even then, this spike is unusually massive, and therefore in and of itself in want of an explanation.
John Maynard Keynes wrote that surges in finance are supported by two factors: relatively cheap credit and expectations of future returns.
Without strong expectations of future returns, no amount of cheap credit can induce businesses to borrow and invest.
This is the famous “liquidity trap”.
Our research shows that a compelling story – one that extends and agrees with preconceptions – would have been sufficient to overcome the liquidity trap.
A mathematical principle called the “Chinese Whispers” theorem indicates that for us to see remarkable and sudden changes in economic systems we must be observing the effects of a powerful narrative supporting positive expectations (i.e. future profitability).
Meanwhile, a concept popularly known as “Made To Stick” indicates that a simple story, connecting emotionally charged ideas together while extending and agreeing with preconceptions, is sufficient to become embedded in minds and inform expectations.
In our research we demonstrate that this idea is the logical conclusion of a half-century of psychological research on cognitive dissonance, personality and “salience” in perception, as well as some simple mathematics.
You can see this play out in the headlines about the “Trump bump”.
Very soon after the Brexit vote and consistently afterwards, Theresa May indicated an eagerness to strike free trade deals with the US and Australia and Malcolm Turnbull concurred.
And while Donald Trump campaigned on anti-trade policies, these excluded the Anglosphere.
Further, the British economy did not collapse following the Brexit vote, and Trump’s policy platform included massive infrastructure stimulus, tax cuts and deregulation. Adding to all this, Congress and the Supreme Court are now Republican.
This is a positive narrative for expectations of future returns, because the Australian economy on the whole does not compete with the US and UK economies.
Rather, we help to supply their demand.
We have business to gain by participating in a strong Anglosphere economic bloc, and we have little business to lose.
Throughout financial history, there are other examples where powerful narratives have driven the markets.
John Kenneth Galbraith, in his history of money and the 1929 crash, tells us of at least three spectacular ones.
When King Louis XV granted the Mississippi Company the profits of the colony of Louisiana, its share price rose so high it reflated the French economy.
In his book, The Ascent of Money, Niall Ferguson shows us exactly how the narrative about the unbounded wealth of the Louisiana company drove this spread – in pamphlets, cartoons and posters.
When parliament granted the South Sea Company a monopoly over trade with the Spanish American colonies, its shares became so valuable it was for a time decided it, rather than the Bank of England, should assume responsibility for the British national debt.
The fact its merchants would have to run the gauntlet of the Spanish navy all the way across the Atlantic was conveniently ignored, while the story of fabulous riches from the new world captured the attention of investors.
The narrative of the Shenandoah Corporation beats them all. The initial call for investments was oversubscribed by a factor of seven.
Why? Because at that time a story was being told about the ability of fund managers applying “investment science” to obtain amazing returns.
“Trust the experts, they’ll make you a mint” is a simple story, connecting emotionally charged ideas together while extending and agreeing with our tendency to defer to the advice of the “wise men”.
Governments and investors ignore the power of storytelling at their peril.
The financial markets are not driven by the “mechanics” of interest rates and money alone.
They are driven by one of the most ancient traditions of humanity – stories.
We can lead an investor to liquidity, but we can’t make them drink without telling them a story about why it is so very tasty.
And if we want to stop them from drinking a really tasty poison, it’s not enough to make the poison a bit harder to get.
Either it has to be taken away (verboten), or a simple story, extending and agreeing with preconceptions, has to be told about why poison that tastes really nice is still poison.
<a href="https://theconversation.com/profiles/brendan-markey-towler-151862" target="_blank">Brendan Markey-Towler </a>is an Industry Research Fellow for the Australian Institute for Business and Economics and School of Economics at The University of Queensland. He is an author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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How storytelling drives finance and economics: Brendan Markey-Towler

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Donald Trump’s assumption of the US presidency since the last RBA Shadow Board round two months ago raises important questions about the future health of the global economy.
Domestically, consumer prices rose a little faster, by 1.5% year-on-year in the December 2016 quarter, but still well below the RBA’s 2-3% target band.
The CAMA RBA Shadow Board’s conviction that the cash rate should remain at its current level is stronger than two months ago, reflecting the heightened uncertainty surrounding the Trump presidency.
The Shadow Board attaches a 70% probability to a rate hold being the appropriate policy setting.
The confidence attached to a required rate cut equals 5%, while the confidence in a required rate hike equals 25%.
There is little inflationary pressure emanating from the Australian labour market, with Australia’s official unemployment rate now standing at 5.8%.
Since the participation rate has remained steady, the modest increase in unemployment is primarily due to a smaller increase in the creation of new jobs.
There is no new data on wages growth.
The Aussie dollar, relative to the US dollar, has strengthened again, finding support above 75 US¢.
Yields on Australian 10-year government bonds have slipped to 2.77%, once again nearing their historical low.
Domestic share prices have retreated from their highs in early January, the S&amp;P/ASX 200 stock market index now consolidating between 5,600 and 5,700.
The main global threat remains the uncertainty surrounding the Trump Presidency.
On the one hand, Trump’s promise to drastically increase infrastructure and defence spending, coupled with tax cuts, will exert upward pressure on US, and hence world, interest rates.
On the other hand, Trump’s protectionist and nationalist policies will dampen international trade and generate political uncertainty.
This could further increase global interest rates if risk premia were to rise considerably, or lower interest rates if global demand falls.
Making accurate predictions in such an environment is extremely ambitious; but the heightened uncertainty is damaging to financial markets and the overall economic outlook.
Consumer confidence, as measured by the Westpac-Melbourne Institute Consumer Sentiment Index, has fallen slightly during the past two months.
It now stands at 97.4 (down from 101.3 two months ago).
The manufacturing and services PMI, which measure the performances of the manufacturing and services sectors, continue to bounce around without clear direction.
It is now equaling 51.2 (down from 54.2 two months ago) and 54.5 (up from 50.5), respectively.
The AIG Performance of Construction Index (PCI), after its recent blip up, fell again, edged up for the second month in a row, from 45.9 in October to 47 in December.
Building permits declined again in December, by 1.2%, though November saw an interruption in this trend, with an increase of 7.5%.
The Shadow Board’s preference for the optimal interest rate has strengthened.
It now attaches a 70% probability (56% in December) that “no change” is the appropriate policy, a 5% probability (2% in December) that a rate cut is appropriate and a 25% probability (43% in December) that a rate rise, to 1.75% or higher, is appropriate.
The probabilities at longer horizons are as follows: 6 months out, the estimated probability that the cash rate should remain at 1.50% equals 24%, three percentage points up from the previous round.
The estimated need for an interest rate decrease remains unchanged at 9%, while the need for a rate increase equals 67% (71% in December).
A year out, the Shadow Board members’ confidence that the cash rate should be held steady equals 17% (unchanged from December), while the confidence in a required cash rate decrease (7%) and in a required cash rate increase (77%) are also virtually unchanged.
<a href="https://www.propertyobserver.com.au/images/2017/02/07/Screen%20Shot%202017-02-07%20at%2011.37.05%20am.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/2017/02/07/Screen%20Shot%202017-02-07%20at%2011.37.05%20am.jpg" alt="">
For more information, <a href="https://cama.crawford.anu.edu.au/" target="_blank">click here</a>
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February rates are on hold as uncertainty about Trump continues: RBA Shadow Board

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The following charts describes what the Reserve Bank of Australia knows about Australia's economy especially GDP growth and inflation:
<a href="https://www.propertyobserver.com.au/images/2017/01/06/RBA%20CHART-1.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/2017/01/06/RBA%20CHART-1.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/01/06/RBA%20CHART-2.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/2017/01/06/RBA%20CHART-2.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/01/06/RBA%20CHART-3.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/2017/01/06/RBA%20CHART-3.jpg" alt="">
<a href="https://www.propertyobserver.com.au/images/2017/01/06/RBA%20CHART-4.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/2017/01/06/RBA%20CHART-4.jpg" alt="">
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RBA's January chart pack gives insight to Australian GDP growth and inflation

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A mid-century modern style house with mountain views in Canberra's Campbell has been listed for auction.
Located at 11 Waller Crescent, the home was designed by architect Neville Ward.
It takes advantage of a bush setting close to the city centre and Lake Burley Griffin with westerly views of the Brindabellas and Black Mountain.
<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/2017/06/11%20Waller%20Crescent-2.jpg" alt="">
The property has four bedrooms, a purpose-built music room, a study, plus two decks/terraces.
There is also an extensive garden and a salt water pool styled in a native garden setting.
The property goes on auction on February 18 through Peter Blackshaw Real Estate agent Debbie Maddigan.
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Mid-century modern style Campbell, Canberra trophy home listed

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Burnie is the cheapest place to purchase a unit in Tasmania, according to Investar’s latest report.
The property investment firm says that the average median price of a two bedroom unit at Burnie is $139,000.
This is followed by East Devonport with $149,000 and Launceston with $155,000 for a studio or one bedroom.
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="113">
Suburb
</td>
<td valign="top" width="113">
Postcode
</td>
<td valign="top" width="113">
Bedrooms
</td>
<td valign="top" width="113">
Median price
</td>
</tr>
<tr>
<td valign="top" width="113">
Burnie
</td>
<td valign="top" width="113">
7320
</td>
<td valign="top" width="113">
2
</td>
<td valign="top" width="113">
$139,000
</td>
</tr>
<tr>
<td valign="top" width="113">
East Devonport
</td>
<td valign="top" width="113">
7310
</td>
<td valign="top" width="113">
2
</td>
<td valign="top" width="113">
$149,000
</td>
</tr>
<tr>
<td valign="top" width="113">
Launceston
</td>
<td valign="top" width="113">
7250
</td>
<td valign="top" width="113">
Studio and 1
</td>
<td valign="top" width="113">
$155,000
</td>
</tr>
<tr>
<td valign="top" width="113">
Newnham
</td>
<td valign="top" width="113">
7248
</td>
<td valign="top" width="113">
2
</td>
<td valign="top" width="113">
$160,000
</td>
</tr>
<tr>
<td valign="top" width="113">
Upper Burnie
</td>
<td valign="top" width="113">
7320
</td>
<td valign="top" width="113">
2
</td>
<td valign="top" width="113">
$170,000
</td>
</tr>
</tbody></table>
A two bedroom unit at <a href="https://www.realestate.com.au/property-apartment-tas-burnie-124390686" target="_blank">25/47 North Terrace</a>, Burnie (above) has been listed for sale for $109,000. It last sold for $87,500 in 2004.
Similarly a two bedroom unit at <a href="https://www.realestate.com.au/property-unit-tas-burnie-124322670" target="_blank">38/47 North Terrace</a>, Burnie (below) has been listed for $135,000 after last trading for the same price in 2010.
<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/2017/06/38_47%20North%20Terrace.jpg" alt="">
A two bedroom unit at <a href="https://www.realestate.com.au/sold/property-apartment-tas-burnie-123474362" target="_blank">13/47 North Terrace</a>, Burnie (below) has been sold for $100,000, going back from its 2008 sale of $120,000.
<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/2017/02/07/13_47%20North%20Terrace.jpg" alt="">
Similarly a two bedroom unit at <a href="https://www.realestate.com.au/sold/property-unit-tas-burnie-123128874" target="_blank">4/3 Vernon Place</a>, Burnie (below) has been sold for $150,000, only increasing $2,500 in five years.
<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/2017/02/07/4_3%20Vernon%20Place.jpg" alt="">
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Burnie the cheapest place to purchase a unit in Tasmania: Investar

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The Federation Wahroonga trophy home, Kumdibar, set on 2,934 square metres, has been listed for sale with $7.5 million plus hopes.  
Built in 1898, the five bedroom home at <a href="https://www.realestate.com.au/property-house-nsw-wahroonga-123888170" target="_blank">62 Braeside Street, </a><a href="https://www.realestate.com.au/property-house-nsw-wahroonga-123888170" target="_blank">Wahroonga</a> has three stone bathrooms, a master with ensuite and a flexible study on each level. 
There’s also a games room above the double garage with a king-sized billiard table and overhead lights as well as a tennis court and swimming pool. 
The stately, manicured home has been listed for expression of interest by Darren Curtis and Carys Adams of Ken Jacobs, Christie’s International Real Estate, Double Bay. 
The median house price in Wahroonga is $1.6 million according to CoreLogic RP Data.
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Historic Federation trophy home Kumdibar at Wahroonga listed

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Hobart has a balanced market for its unit’s rental vacancy situation, according to Herron Todd White’s latest report.
The property valuation firm says that Hobart’s rental vacancy trend is tightening.
Demand for new units is soft despite an increasing trend in new unit construction as well as a steady volume of unit sales.
<a href="https://www.propertyobserver.com.au/images/2017/02/03/Screen%20Shot%202017-02-03%20at%202.53.55%20pm.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/2017/02/03/Screen%20Shot%202017-02-03%20at%202.53.55%20pm.jpg" alt="">
Hobart’s unit property market cycle is currently rising, HTW's report said.
New unit properties in Hobart are almost never sold at prices exceeding their potential resale value.
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Hobart's demand for new units is soft: HTW

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Bankrupt former billionaire Nathan Tinkler’s ex-wife Rebecca is selling her Hawaiian mansion for $US15.8 million, at not much more than break even.
The three acre property on the island of Maui has six bedrooms, six bathrooms, an infinity pool, chef's kitchen, an over-sized wine room and a movie theatre.
The Zillow website says an offer has been pending on the property since last month with<a href="https://vwonmaui.com/listing/30113-4541-makena-rd-makena-hi" target="_blank"> the Sothebys Volker Weiss agency</a>.
It initially hit the market early last year at $US19.9 million.
The former couple bought the mansion together in 2011, with Ms Tinkler understood to have been living in the 2004-built home since they split in 2013.
The purchase was made by Queen St Property Holdings. Land title records at the time show the assessed value of the property was $US8.6 million. It is now $15.6 million.
Set on a hill looking out over the Pacific ocean, the 640 square metre home on 12,500 square metres in the gated Keauhou subdivision of Makena, the most expensive area on Maui.
The Tinkler’s Brisbane trophy home recently sold at a $2 million discount.
Their former Pullenvale retreat was sold after the receivers Grant Thornton moved in on him.
The expansive mansion was sold to Brisbane buyer for $3.05m which was $2.15m less than the $5.2 million paid almost a decade earlier.
The former BRW Young Rich list leader had a trust estimated at its peak to have hold more than $1.4 billion worth of assets including his many homes and horse studs, his stake in Whitehaven Coal as well as The Newcastle Knights and Jets via Hunter Sports Group.
Tinkler's Falcon 900 jet was repossessed by creditor GE Capital in Singapore in 2012.
Last week Tinkler was given permission to travel to the United States for a Hawaiian holiday as long as he follows strict conditions ordered by a Sydney judge.
Justice Nicholas at the Federal Court gave permission as long as he returns to Australia no later than April 8.
Tinkler surrendered his passport when he was declared bankrupt with debts of $554 million in March last year.
This article first appeared int he Sunday Telegraph.
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Nathan Tinkler’s ex-wife selling Hawaiian mansion

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The auction market will start to gather momentum coming into February after the seasonal slowdown over the holiday period, with auction numbers doubling over the week across the combined capital cities, according to CoreLogic’s latest report.
The property data firm says that there were 867 auctions being tracked by CoreLogic this week, with a preliminary clearance rate of 70.8 per cent, compared to last week’s 71.6 per cent across 368 auctions.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.56.27%20am.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/2017/06/Screen%20Shot%202017-02-06%20at%209.56.27%20am.jpg" alt="">
Although auction activity has shown a significant uplift over the week across the combined capitals auction volumes are increasing at a slower rate than what was seen over the corresponding period last year, when 916 auctions were recorded with a similar rate of clearance (70.1 per cent).
The lower volumes can be attributed to slower activity across the Sydney market, which was also evident over the same week last year, when volumes were lower over the given period compared to previous years.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.56.35%20am.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/2017/06/Screen%20Shot%202017-02-06%20at%209.56.35%20am.jpg" alt="">
While the combined capital city clearance rate returned a strong result over the week, as auction numbers continue to gather pace we will get a clearer understanding if auction trends remain as strong as they were at the end of 2016.
In Melbourne, Australia’s largest auction market, a preliminary auction clearance rate of 77.5 per cent was recorded across 255 auctions this week.
This is almost double the volume recorded last week, although slightly lower than what was seen over the corresponding week last year.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.57.44%20am.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/2017/06/Screen%20Shot%202017-02-06%20at%209.57.44%20am.jpg" alt="">
Last week, Melbourne’s final clearance rate was recorded at 82.4 per cent across 137 auctions.
During this time last year, 268 properties were taken to auction across Melbourne and a clearance rate of 77.6 per cent was recorded.
The busiest Melbourne sub-regions this week were Melbourne’s West region and the South East region, where 68 and 36 auctions were held respectively.
Sydney’s preliminary clearance rate this week was 78.1 per cent across 192 auction results.
There were a total of 255 auctions held across the city.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.57.49%20am.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/2017/06/Screen%20Shot%202017-02-06%20at%209.57.49%20am.jpg" alt="">
Looking back at this weekend last year auction volumes were higher, when 313 auctions were held across Sydney and a clearance rate of 75.0 per cent was recorded.
Sydney’s North Sydney and Hornsby hosted the most auctions of any Sydney sub-region this week, with 39 properties taken to auction.
The preliminary clearance rate for the region is 82.1 per cent across 28 results.
There were 99 Brisbane homes taken to auction this week, with 67 results reported so far.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.57.56%20am.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/2017/06/Screen%20Shot%202017-02-06%20at%209.57.56%20am.jpg" alt="">
The preliminary clearance rate for the city is 58.2 per cent, down from 63.0 per cent last week and higher than one year ago, when 54.0 per cent of the 111 properties taken to auction were successful.
Across the Gold Coast 48 results have been reported so far, with a success rate of 47.9 per cent (23 sales).
A total of 143 Adelaide homes were taken to auction this week, with a preliminary clearance rate of 64.3 per cent across 84 results.
This is lower than the 70.5 per cent recorded over the corresponding week last year when 107 auctions were held across the city.
<a href="https://www.propertyobserver.com.au/images/2017/06/Screen%20Shot%202017-02-06%20at%209.58.12%20am.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/2017/06/Screen%20Shot%202017-02-06%20at%209.58.12%20am.jpg" alt="">
In Perth, 35 auctions took place this week, with 14 results reported so far.
Perth’s preliminary clearance rate of 28.6 per cent across these 14 results is lower than both last week’s result (38.5 per cent) and the clearance rate from one year ago (35.3 per cent).
Canberra’s preliminary auction clearance rate of 75.4 per cent this week is higher than last week, when the final auction clearance rate was 72.7 per cent and higher than the 71.4 per cent recorded last year.
There were 11 Tasmanian auctions held this week, 2 were reported as sold
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Auction numbers double in all capital cities as February market gains momentum: CoreLogic

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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