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Australia’s first time home buyers are being locked out of the property market as wage growth fails to keep pace with rising house prices.
A national report from Bankwest reveals there are half as many first time home buyers (FTBs) in the market as a proportion of total buyers in 2016 than in 2009.
Fewer FTBs entered the market in the last 12 months, impacted by the removal of the First Homebuyers Grant for established homes by state governments, coupled with rising property prices. The number of FTBs declined to 90,939 in the year to June 2016, down from 94,517 the previous 12 months.
The proportion of FTBs in Australia has declined steadily over the last five years to 13.4 per cent in 2016, with the remainder repeat purchasers or investors, compared to 28.8 per cent in 2009.
The 2016 Bankwest Financial Indicator Series’ First Time Buyers Deposit Report shows Australian couples will have to save for an average of 4.4 years to accumulate the $103,600 needed for a 20 per cent house deposit on a median priced home.
This is two months longer than in 2015 (4.2 years) and a $3,900 increase on the $99,700 deposit required last year.
Bankwest Executive General Manager, Retail, Andrew Whitechurch said it was taking Australian FTB couples longer to save a deposit on a median priced house in every mainland state and territory except for WA.
“Western Australia bucks the national trend, being the only state where it takes less time for an average first time buyer couple to save for a house than it did last year.
The average time was down marginally to 3.5 years this year from 3.6 years in 2015 and well below the national average,” he said.
“Low interest rates, sluggish wage growth, and rising house prices are making it increasingly difficult for first time buyers to get a foot on the property ladder in most capital cities in Australia.
Australia’s median house value grew 3.9 per cent to $518,000 in the 12 months to June 2016, while variable-lending rates on owner occupier housing loans are notably lower than the 10-year average rate of 6.93 per cent.
We’ve seen extremely strong growth in property values in Sydney and Melbourne, while wages have grown by just 2.2 per cent nationally.
While lower interest rates are beneficial for those who already own their homes in the form of lower loan repayments and interest, they can also bring more buyers into the market and this drive up house prices, making home ownership less affordable for first time buyers.”
Mr Whitechurch said the eighth annual First Time Buyers Report had been produced as part of Bankwest’s ongoing commitment to offer insights on economic data, trends and issues of value to its customers, businesses, communities and policy makers.
“Bankwest is committed to helping customers and local businesses achieve what matters, contributing to the development of our communities and being a positive voice in the debate on the future of the economy.
We hope this annual report, which provides a snapshot of the country’s housing market in 2016, demonstrates this.”
The report shows FTB couples wanting to buy a property in the capital cities faced up to five years’ wait, with Sydneysiders facing the longest saving times.
“The average time for a first time buyer couple to save for a capital city property increased by almost six months to 4.9 years this year from 4.5 years in 2015,” Mr Whitechurch said.
“On average Sydney first home buyers will have to save for more than eight years to accumulate the $214,600 needed for a 20 per cent deposit on their first house (8.4 years), up from 7.9 years in 2015.”
Peppermint Grove in Perth is the local government area (LGA) with the longest savings time in the nation, where it takes 19.7 years for a couple to save the $686,300 needed for a 20 per cent deposit on a median priced house.
<a href="https://www.propertyobserver.com.au/images/2016/12/22/Bankwest.jpg" target="_blank">Click to enlarge</a>
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However, saving time in this exclusive Perth suburb is down from 20.2 years last year.
Peppermint Grove is followed by Strathfield in Sydney (17.9 years, $410,800) and Mosman in Sydney (17.4 years, $613,000).
Paroo Shire in Queensland’s South West lays claim to the title of the LGA with the shortest savings time nationally of six months to save the $8,500 deposit required.
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j.ballantyne1990-6AQqhLzZaK

Saving for eight years plus, as first home buyers face lengthy lock out: Bankwest property report

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A prestigious riverfront Bulimba home in Brisbane has sold.
Located at <a href="https://www.realestate.com.au/sold/property-house-qld-bulimba-122215942" target="_blank">Quay Street</a>, the Lungo Il Fiume sits on a 872 square metre block.
It went up earlier this month on websites as having sold, having been offered for June auction when it was passed in.
It is understood to have been bought by the Maccheron medical family.
The six-bedroom, five-bathroom home attracted four bidders seeking the waterfront offering, with bidding starting at the $4 million mark.
With superior design and functionality, the 2006-built home that spans three levels may have fetched more than $5 million. 
There is a sixth bedroom on the ground floor that has its own bathroom.
The property has state of the art appointments and sophisticated finishes.
The gourmet kitchen boasts a butler’s pantry, extensive array of European stainless steel inclusions, large banks of cupboard storage and dedicated wine fridge and wet bar area.
The vast internal living areas promote seamless indoor/outdoor living via banks of glass sliders.
Designed to maximise the views, the flowing entertainer's deck features an outdoor bar and BBQ.
There is a sparkling glass framed swimming pool with a 20 metre lap section which extends out towards the lush green grass and sandy river bank.
<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/2016/12/21/Bulimba-2.jpg" alt="">
A private jetty and second swing mooring for close access to the bay and a sprawling six car basement garage with impressive storage capabilities are also included.
The property was offered by Place agents Sarah and Damian Hackett.
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City-view Bulimba home, the Lungo Il Fiume, sold

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National Australia Bank (NAB) and realestate.com.au have announced a five year partnership aimed at combining the property search with securing finance.
“By partnering with NAB, we are building a truly innovative solution that will marry property search and property finance,” said Tracey Fellows, CEO of REA Group, which operates realestate.com.au.
“We will be assisting home buyers throughout their entire property journey, whether it be buying, renting, investing or selling.”
Anthony Cahill, COO at NAB, said that the partnership would combine online property searching and home lending in a manner unseen both nationally and globally.
“We’re combining our respective expertise to deliver more to Australian property buyers and create a game-changing experience,” he said.
With the partnership just announced, details on the exact products to be offered have yet to be announced.
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Realestate.com.au website partners with NAB to offer home loans

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The NSW government has committed to the largest ever government agency leasing deal in Western Sydney, with more than 62,000 square metres of A-Grade office accommodation to be built by Walker Corporation at 4 Parramatta Square.
The new building will accommodate at least 4,000 public service roles, including more than 1,600 planning and environment roles relocating directly from the Sydney CBD by 2019.
Minister for Finance, Services and Property, Dominic Perrottet, said the development would establish a major public service base in Parramatta, the heart of Sydney’s second CBD.
The development will bring together around 2,500 roles from the Department of Planning and Environment, the Office of Environment and Heritage and the Environment Protection Authority, creating a Western Sydney Planning and Environment “hub” and improving opportunities for these agencies to work together.
Around 1,600 Department of Finance, Services and Innovation roles already located in Western Sydney will also be co-located in the new building.
The selection of Walker Corporation as preferred proponent followed an expressions of interest process and subsequent detailed tender phase.
Development approval for the site has been obtained and construction work is expected to commence in March 2017.
Since 2014, the government has announced the relocation of more than 4,200 public service roles from the CBD to Western Sydney.
This includes more than 1,800 jobs from the Department of Education, which will be relocated to 105 Phillip Street, Parramatta in 2018.
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NSW government jobs bound for Parramatta Square

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GUEST OBSERVATION
The December RBA minutes are consistent with the recent narrative out of the RBA which points to policy on hold, according to Commonwealth Bank's economic update.
The level of inflation and spare capacity in the economy gives the bank scope to cut rates if the economic data makes the case.
But today’s minutes suggest it would take a shift in the economic landscape for the cash rate to move lower from here.
To recap, the RBA left the cash rate unchanged at 1.5% at the December board meeting. And the final paragraph contained an unchanged neutral bias.
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This was reaffirmed in today’s minutes.
Namely, that: “having eased monetary policy earlier in the year, the Board judged that holding the stance of policy unchanged would be consistent with sustainable growth in the economy and achieving the inflation target over time.”
"In our view, there is a paragraph in the December minutes that contains the thumb print of new governor Philip Lowe," the updated stated.
The key lines being that the board discussed the “effect of lower interest rates on asset prices and the decisions by households to borrow, particularly given the already high levels of household debt”.
“The Board had sought to balance the benefits of lower interest rates in supporting growth and achieving the inflation target with the potential risks to household balance sheets.”
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"Members recognised that this balance would need to be kept under review.”
These are indications that the RBA, under Governor Lowe, is placing a little more emphasis in policy settings on asset prices and financial stability than it did under former governor Stevens.
Here we recall that there have been a series of developments since RBA governor Lowe took the helm that mean the hurdle for more policy easing is a notch higher than it was under Glenn Stevens.
First, there were tweaks to the RBA’s policy framework. The inflation target was reaffirmed as 2-3% per annum.
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But “on average over the cycle” was replaced with “over time”. There was also a drafting change that, at least cosmetically, makes the link between monetary policy and financial stability a little more direct.
These two changes point to a central bank that appears more willing to tolerate inflation outside of the target band for a little longer than they may have done in the past.
On the international economy, the bank is a little more upbeat than previously, noting that developments had been “more positive” in recent months and that the Chinese economy had “remained resilient”.
The RBA is a little more hawkish on global inflation, noting that the outlook is more “balanced” than it has been for a while.
On the domestic economy, the RBA noted that, “year-ended growth was expected to decline”. Here we note that the December board meeting predates the QIII GDP ‘shocker’.
And while the RBA was expecting a soft print, the 0.5% fall in GDP would not have been in their growth profile.
As such, we expect the bank to downgrade their GDP forecasts in the February statement on monetary policy (SMP).
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Growth is expected to pick up to be “above potential” later in the forecast period as the impact of declining mining investment on the economy wanes.
"We agree and would add that on our estimates we are about 85% through the expected decline in mining investment," the update stated.
The RBA lacked conviction in its assessment on the labour market by indicating that there was still “considerable uncertainty” about its “momentum”.
Clearly the bank is struggling with the rare combination of a downward trend in both employment growth and the unemployment rate.
On that score, last week’s comprehensively strong November employment report will settle some nerves in Martin Place around the health of the labour market.
The pulse of jobs growth was easing into the November print (which predates the December board meeting) so the solid increase in jobs over the month (all full-time), coupled with a lift in participation and fall in the underutilisation rate would have been a welcome update.
Interestingly, the RBA mentioned a new hours-based measure of labour market underutilisation that had declined to a similar extent as the unemployment rate.
The Bbank stuck to the recent script on the housing market by noting that: “Conditions had strengthened overall over preceding months, although there was considerable variation across the country.”
On the AUD, the Board had very little to say which is probably related to their satisfaction with what has been happening.
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Commodity prices have been firming, but since mid-November (i.e. over the past month) the AUD has fallen 41⁄4% against the USD and 13⁄4% on a TWI basis.
The fall largely reflects USD strength which is the ideal outcome for the Australian economy at the moment.
The Outlook
With no meeting in January, the next RBA Board meeting is seven-odd weeks away.
There will be a lot of economic data out between now and then. And overlying that, financial markets will continue to adjust to the new economic paradigm under a Trump presidency.
We think that the RBA faces a tough job in returning inflation to target. But new Governor Philip Lowe looks more willing to tolerate inflation outside of the target band if it reduces the risk of financial imbalances and the further build of up debt in the household sector.
In addition to today’s minutes, governor Lowe’s comments from his CEDA address in November that: “It is unlikely to be in the public interest, given current projections for the economy, to encourage a noticeable rise in household indebtedness, even if doing so might encourage slightly faster consumption growth in the short term” are still ringing in our ears."
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"To us, Lowe’s comments are a strong hint that the governor doesn’t want to take the cash rate lower. And he reminded us today that the cash rate had been “lowered in aggregate by 31⁄4 ppts” over this easing cycle," the update stated.
The risks over the next year continue to lie with a cut and the market is pricing in a small (10%) chance that policy is eased again.
But the house view is that those risks don’t materialise and we have policy on hold at 1.5% over 2017.
Gareth Aird is senior economist with Commonwealth Bank.
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Market pricing implies 10% chance interest rates will go lower: Gareth Aird

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A Hamptons inspired residence at Carrara has been sold.
Located at <a href="https://www.realestate.com.au/sold/property-house-qld-carrara-123610686" target="_blank">18 Maryland Avenue</a>, the property is positioned north along the main river. The exclusive Hamptons region of Long Island, New York is renowned for its luxurious estates.
At the centre of the home is the gourmet Calcatta marble island kitchen and butlers' pantry. This includes integrated fridges, steam oven, induction microwave, gas cooktop and soft-close cabinetry.
A slide glass door spans the adjacent lounge area with full bar and study that invites an effortless flow out to the expansive entertainment patio overlooking the swimming pool and riverfront.
There are also numerous living and dining spaces, both formal and casual, along with a gym room and separate self-contained guest house.
The king-sized master bedroom is on the upper level and features an ensuite with bath, multiple rainfall showers, generous walk-in wardrobe and private balcony with panoramic views to Surfers Paradise.
<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/2016/12/20/Carrara-2.jpg" alt="">
Two of the remaining three bedrooms have their own ensuite.
Additional features include secure garaging for six cars, outdoor surround sound and heating system, alarm, intercom, boat ramp with electric winch, remote front gating, and large storage shed or workshop are also featured at the property in a cul-de-sac only minutes to Pacific Fair shopping centre and M1 motorway.
The property was offered by Kollosche Prestige Agents agents Michael Kollosche and Jordan Williams.
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Hamptons-inspired riverfront Carrara residence sold

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GUEST OBSERVATION
The Reserve Bank board minutes make for interesting reading, although there was no significant surprise in views.
Board members were upbeat about the improvement in the global economy – particularly China and were also aware of the likelihood of the weaker domestic September quarter economic growth result.
Interestingly, policymakers highlighted a couple of concerns at the time of the December 6 Board meeting – in particular the complications of “an appreciating exchange rate” on rebalancing the economy and “uncertainty about the moment in the labour market”.
Since the board meeting the Australian dollar has lost well over two cents (2.4%) against the US dollar and is even 1.3% lower against the trade weighted index.
Importantly the latest round of employment data showed a substantial rebound in full-time employment.
No doubt it is still early days but the improvements would give policymakers a degree of comfort.
Looking forward it is likely that the lift in commodity prices should support medium-term employment in the commodity states.
The focus for central bank official would be on how the business investment profile shifts over the coming year.
It is clear that a lift in non-mining business investment will be need to support broader economic growth.
Overall inflation remains well contained despite the lift in commodity prices.
Simply interest rate settings are likely to remain stable until well into 2017.
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Members noted that the international environment had been more positive in recent months, while observing that significant risks to the outlook for global activity persisted.
The Chinese economy had remained resilient, supported by expansionary fiscal policy and rapid growth in financing.
“There was still considerable uncertainty about the momentum in the labour market,” the minutes said.
The unemployment rate had declined over the past year, as had measures of excess capacity that accounted for the number of additional desired hours of work.
Part-time employment had grown strongly over the previous year, but employment growth overall had slowed.
Members noted that there was expected to be excess capacity in the labour market for some time, which was consistent with further indications of subdued labour cost pressures.
This suggested that inflation would remain low for some time before returning to more normal levels.
“Members noted that these factors had assisted the economy in its transition following the mining investment boom and that an appreciating exchange rate could complicate the adjustment.”
“Housing market conditions had strengthened overall over preceding months, although there was considerable variation across the country and between houses and apartments. Housing credit growth had picked up a little, particularly for investors.”
“Prices for a number of Australia's key commodities, including coking coal, iron ore and base metals, had increased noticeably over the June and September quarters, which had contributed to the increase in Australia's terms of trade of about 6% over that period.
“3Commodity prices had risen further over November, suggesting that an increase in the terms of trade in the December quarter was likely.
“Taking into account the information that had become available over the previous month, and having eased monetary policy earlier in the year, the Board judged that holding the stance of policy unchanged would be consistent with sustainable growth in the economy and achieving the inflation target over time.”
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The ANZ/Roy Morgan weekly survey of consumer confidence closely tracks the monthly Westpac/Melbourne Institute consumer sentiment index but the former measure is a timelier assessment of consumer attitudes and is now closely tracked by the Reserve Bank.
CommSec expects the Reserve Bank to remain on the interest rate sidelines for an extended period.
Could the next move in interest rates be a rate hike rather than a rate cut? It’s important not to get too far ahead of ourselves.
Inflation is still historically low. And while there is speculation of growth-focussed policies in the US, they haven’t been fleshed out.
However you get a sense that inflation has reached an inflexion point.
Savanth Sebastian is senior economist with CommSec.
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RBA board members upbeat about improvment in global economy: Savanth Sebastian

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Real estate fund manager EG Funds Management has secured the off-market sale of two commercial assets in Kensington, Melbourne.
The combined 15,725sqm site area was sold for $30.25 million.
The Young Husband Wool Stores sites were acquired in two tranches by EG Funds Management in 2007 and 2011 for AU$8.9 million and $5.5 million respectively.
The sites underwent a successful rezoning in 2015 from IN1 and IN3 (Industrial) to Commercial 2 zoning.
The strong market appetite for well-located assets delivering passing yield while allowing future land use change potential has also benefited these sites, said EG's Daniel Farley.
EG purchased the two assets for the Yield Plus Infrastructure Fund No. 1, which was launched in 2006 to acquire assets near new or upgraded infrastructure.
The fund is on track to achieve 13.0% p.a. Equity IRR.
The transaction was concluded through Ben Hegerty and Chris Jones from Savills.
Impact Investment Group, a Melbourne-based syndicator backed by the wealthy Liberman family, bought the converted warehouse on a yield of around 5 per cent, but with considerable rental upside.
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EG Funds sells its Kensington properties through Savills

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GUEST OBSERVATION
The economic growth forecasts have undergone a number of revisions to reflect two major surprises since May, namely: conditions across the broader economy are weaker than anticipated; and commodity prices have spiked temporarily. The economic growth forecasts are optimistic in our view. Real GDP growth of 2.0% for 2016/17, downgraded from 2.50%, requires a quick return to solid growth, averaging 0.8% per quarter for the rest of the year. In addition, the medium-term economic projections err on the optimistic side. From 2018/19 to 2022/23 real GDP growth is assumed to be 3.0% each year, a little faster than potential, judged to be 2.75%. The thinking is that spare capacity is gradually absorbed, closing the output gap by the end of 2022/23. The terms of trade are projected to remain flat at around its 2005 level from 2019/20. Nominal GDP growth is assumed to be 5.50% over the long-run (described in a Treasury working paper in 2014 but not specifically mentioned in MYEFO). <a href="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.36%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.36%20pm.jpg" alt=""> 1) The real GDP growth profile for the four years 2016/17 to 2019/20 is: 2.0% (downgraded by 0.50%); 2.75% (downgraded by 0.25%); 3.0% and 3.0%. The Australian economy began the 2016/17 financial year on a weak note, with output contracting by 0.5%, the sharpest quarterly decline since the GFC. 2) Nominal GDP growth profile is: 5.75% (upgraded by 1.50%); 3.75% (downgraded by 1.25%); 4.25% (downgraded by 0.75%); and 4.50% (downgraded by 0.50%). Notably, the size of the nominal economy is 1.0% smaller at the end of 2019/20 than assumed at budget time. Inflation and incomes are softer than anticipated reflecting the weaker conditions across the broader economy. 3) The terms of trade jumps a forecast 14% in 2016/17 (upgraded from 1.25%) on the spike in commodity prices, followed by a 3.75% decline in 2017/18 (downgraded from 0%) as commodity prices retreat to more sustainable levels. There is considerable uncertainty around the timing / speed of commodity price adjustments. The iron ore price is assumed to decline from its recent average of US$68 per tonne FOB through the March and June quarters of 2017 to reach $55 in September 2017. The budget assumed a year average price of $55. The coking coal price is assumed to be US$200 per tonne FOB in line with the December quarter contract price, before declining through the September and December quarters of 2017 to $120 in March 2018. The Budget year average price was $91. Thermal coal prices are assumed to remain at $62 per tonne FOB, up from $52 at budget time. 4) Labour market forecasts have been downgraded to reflect the soft start to the 2016/17 year. Employment growth has been lowered by 0.5% this year and 0.25% next year, while wages growth has been lowered by 0.25% this year and next. See table 2 below for details. <a href="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.47%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.47%20pm.jpg" alt=""> The 2016/17 budget deficit forecast is effectively unchanged from that in May, while the cumulative deficit for the four years to 2019/20 has deteriorated by $10.3 billion (with net savings of $2.5 billion partially offsetting $12.8 billion in slippage due to the weaker forecasts). The medium-term projections have the budget returning to surplus in 2020/21, as assumed in May, although the size of the surplus has been trimmed from 0.2% of GDP to 0.1% of GDP. Policy decisions had little net impact on the budget position, with a net saving of $2.5 billion, back-loaded over the two out years. Revisions to the economic growth forecasts (including parameter variations more generally) cost the budget $12.8 billion over the four years, including a saving of $0.5 billion in the current year. Receipts are $30.5 billion lower than at Budget time over the four years, partially offset by a $16.5 billion undershoot on payments. Critically, as noted above, the size of the nominal economy at end 2019/20 is 1.0% smaller than assumed at Budget time. Of the $30.5 billion hit to receipts over the four years, key impacts include: individual income tax collections, down $18.3 billion due to weaker wage and employment outlook; company tax down $5.9 billion with weaker non-mining corporate profits only partially offset by higher mining profits from stronger commodity prices over 2016/17; and lower GST collections, down $5.3 billion.
On the payment side, weaker wages growth and lower inflation help to contain expenditure growth. <a href="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.58%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="/images/2016/12/19/Screen%20Shot%202016-12-19%20at%204.40.58%20pm.jpg" alt="">
Bill Evans is chief economist with Westpac.
Andrew Hanlan is senior economist with Westpac.
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Surplus by 2020/21 on track, but at an estimated 0.1% GDP: Bill Evans and Andrew Hanlan

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An imposing home at Mount Martha set in vast resort inspired grounds has been sold.
The six bedroom, five bathroom, two-storey <a href="https://www.realestate.com.au/sold/property-house-vic-mount+martha-124013838" target="_blank">2006 Graeme Jones designed residence</a> is set on 4350 square metres.
No price has been revealed by Kay &amp; Burton, but is is understood to have sold for close to $5 million.
Its vista takes in Dromana to The Heads, across the You Yangs to the city skyline from the iconic Esplanade setting.
<img src="/images/2016/12/19/Mount%20Martha-2.jpg" alt="">
The grounds come with a mod grass north-south tennis court, heated swimming pool, fire pit, putting green and practice holes, and a brand new all-season entertaining pavilion with a cook and dine teppanyaki kitchen.
Pizza oven, barbecue, dishwasher, Vintec wine fridge and radiant heaters with protective motorised cafe blinds and even an LED Smart TV are included.
<img src="/images/2016/12/19/Mount%20Martha-3.jpg" alt="">
There is also a flourishing orchard and citrus grove.
It comes with entry via Deakin Drive, minutes from Mount Martha village on the Mornington Peninsula.
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Iconic clifffront property at Mount Martha sold

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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