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The vagaries of resources booms and busts have been heavily felt at the central Queensland mining town of <a target="_blank" href="/news">Moranbah</a>, about 193 kilometres south-west of Mackay.
The coal town of around 10,000 is on the Peak Downs Highway on the way to Clermont in the Bowen Basin. It was established in 1969 to service the expanding mining industry.
When coal prices were booming towards the middle of last year, so was the town’s real estate, with some properties selling for record prices of $900,000, and others renting for up to $4,000 a week.
That’s certainly not the case now. A drop in coal prices has undermined real estate, and the huge numbers of fly-in-fly-out workers living in camps – up to 10,000 workers - has caused social pressures, residents say. They don’t help real estate as they live outside the town.
Terry Ryder, founder of hotspotting.com.au, said earlier this year that the use of FIFO workers removes pressure on local rents and prices. Workers fly in or drive in for their shift, stay in temporary workers accommodation provided by the mining company and head home when their shift is done.
‘’There are all kinds of negative impacts of this – and this is what a recent federal inquiry looked at – but rising rents and prices is not among them,’’ he said.
‘’The BMA (BHP-Mitsubishi Alliance) plan to have 100% FIFO workers on two new mines in the basin has all kinds of impacts on towns like Moranbah, but they don’t include pushing up property prices because none of the FIFO people live in the town.
‘’Moranbah rents and prices are falling right now, with residential vacancies up around 7%. In nearby Dysart, vacancies are approaching 15% and rental yields, previously above 10%, are now down around 5%.’’
Long time resident John Wood, of Moranbah Real Estate, described the local real estate market as ‘’slow, flat’’ but said it was ‘’at the point where it can’t fall any further’’.
Average prices are now $340,000 to $360,000 for houses with average rentals around $400 a week (boom times $1800) or, for newer style houses, $1000 a week (boom $3000).
‘’Everyone wants 10% yields but the norm is around 7% now,’’ Wood said.
For sale:
{yoogallery src=[images/stories/2013/11/14/mor1]}
Moranbah Real Estate is selling <a href="https://www.moranbahrealestate.com//Moranbah/Queensland/Homes/Moranbah/Agent/Listing_65829078" target="_blank">22 Lambert Court, Moranbah</a>  (pictured above) for $780,000. The single storey brick rendered house on a rectangular block has five bedrooms and two bathrooms. It has been newly tenanted at $2,000 a week. It is four years old with spacious living areas, floating timber floors and covered entertainment areas. The kitchen has a breakfast bar and stainless steel appliances.
There’s a lock up double garage with remote control door, Colorbond shed and carport.
For rent:
{yoogallery src=[images/stories/2013/11/14/mor2]}
Moranbah Real Estate is offering <a href="https://www.realestate.com.au/property-house-qld-moranbah-407106986" target="_blank">29 Jackson Avenue, Moranbah</a> (pictured above) for $1,000 a week. The two storey house has seven bedrooms, three bathrooms and six-car accommodation. It has a large kitchen upstairs and new kitchen downstairs. There’s a low maintenance yard. The bond is $4000.
RP Data reports that over the past 12 months 222 houses were sold in Moranbah for a median price of $742,825 and at a 50-day average on the market. Forty-one units were sold at a $385,000 median.
staylor@propertyobserver.com.au
 
 
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staylor-63KgDrKwoY

Suburb spotlight: Moranbah mining bust felt heavily

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Vacancy rates across Sydney’s popular inner and middle suburbs have tightened as first home buyers, struggling to afford properties, look to rental accommodation.
The October 2013 Real Estate Institute of New South Wales Vacancy Rate Survey shows availability across the Sydney metropolitan area is steady at 1.7%.
REINSW president Christian Payne said the rate was the lowest the middle suburbs had experienced in 18 months. "It is yet another indicator of how the abolition of incentives on existing properties for first home buyers is causing issues across the marketplace."
Other figures are:
• Inner suburbs (0-10 kilometres from the CBD) are down 0.1% to 1.7%
• Middle suburbs (10-25 kilometres from the CBD) fell 0.2% to 1.6%
• Outer suburbs (more than 25 kilometres from the CBD) are up 0.2% to 1.7%
"First home buyers who can’t afford to buy their dream homes are putting substantial pressure on the
rental market," Payne said.
"Middle suburbs, including Auburn, Burwood, Hunters Hill, Parramatta and Ryde are some of the hardest places to find accommodation in Sydney."
Outside Sydney, the Hunter fell 0.1% to 2.9% despite Newcastle’s increase of 0.7% to 2.4%. The Illawarra remained steady at 2.0% even though Wollongong’s vacancy rate rose 0.4% to 2.3%.
In regional areas, Albury is the hardest place to find rental accommodation after a decline 0.2% to 1.8%. Orana, which had previously held the title, jumped 0.6% to 1.9%.
Northern Rivers’ availability rose 0.2% to 3.1% and New England was up 0.5% to 2.9%.
Meanwhile, the easiest place to find rental accommodation in the state is the Central West after a rise of 0.3% to 4.1%. South Eastern NSW added 0.5% to 4.0%. Coffs Harbour’s availability leapt 0.8% to 3.8%.
<a target="_blank" href="mailto:staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
 
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Struggling first home buyers pushing down Sydney's inner and middle suburb vacancy rates

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Fancy a regular family skiing holiday in the European Alps? Why not buy a chalet there then?  
A new website, <a href="https://www.skiingproperty.com/" target="_blank">Skiing Property</a>, is promoting the purchase of new-build and off-the-plan properties in popular ski resorts in France and Switzerland.  
It has a portfolio of property developments listed by resort with full details and photos. The site also features a blog and glossary to keep buyers informed about the ski property market, and a free downloadable guide to buying an alpine ski home.  
Resorts properties for sale, both leaseback and classic freehold, are at Courchevel, Méribel, Les Gets, Chatel, Tignes and Val d'Isère in France, and Flims in Switzerland.  
‘’Ski property has proved to be one of the most buoyant sectors of the overseas property market, with some resorts even seeing price rises this year - unusual in much of Europe in the current climate,’’ director Julian Walker said.  
‘’Tight supply and controlled development, combined with huge lifestyle appeal and a strong international market, mean ski homes in quality resorts will always be good long-term investments. At Skiing Property we focus solely on new-build and off-the-plan projects, which typically offer better capital appreciation than resale properties."  
Buying new or off-the-plan in the French Alps may have key benefits, such as:  
-  Increased potential for capital appreciation, as units are often sold at a discount. Once a project becomes established, demand typically increases, especially as new development sites become harder to come by.  
-  Developers often offer attractive finance deals or payment schemes, not available on existing resale property. This is appealing as French interest rates are at record lows.  
-  Buying into a leaseback residence offers the opportunity to buy and finance a property net of VAT. Leaseback contracts also allow an option that suits your preferred amount of annual usage.  
-  In France, purchase costs for off-the-plan or new-build are lower than for resale property. If you do buy outright, sellers of new property less than five years old no longer need to pass on a charge for VAT to a buyer (unless the vendor is VAT registered).  
-  New-build property in France comes with a two-year exemption of Taxe Foncière, one of France's two council taxes.  
-  New property in the Alps will come with a guarantee from the developer, who will also be obliged to take care of any faults when the new owner takes possession, called snagging. Also, new property is built using more energy-efficient materials than in older resale homes.  
"Skiing Property aims to become a leading promoter of new property in the Alps, offering something for all budgets, whether it be a leaseback apartment in Chatel from €225,000 to luxury chalets in Méribel from €3.25million," Walker said.  
<a target="_blank" href="mailto:%20staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
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Website offering off-the-plan Swiss ski chalets

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Low income households in Beenleigh have been given some good news with 12 new and affordable houses available through the National Rental Affordability Scheme.
Opening the complex on Tuesday, housing minister Tim Mander said the project marked the 2,000th dwelling delivered in Queensland by the National Affordable Housing Consortium.
“The National Rental Affordability Scheme is a key part of our Housing 2020 vision,” Mander said.
“Projects like this one are a godsend for people who may otherwise face a long wait for social housing.
“The Newman government promised to revitalise frontline services for families. That’s particularly important when it comes to helping people on low or modest incomes.’’
Properties in the scheme fill an important gap in the market for those who may not be considered high-needs, but who still struggle to find an affordable place to live, he said.
“Under the joint state and federal program, properties must be rented at no more than 80% of the market rate for that area.
“Building 2000 properties in five years is a fantastic effort from the team at NAHC, not to mention a great result for Queenslanders.”
NAHC chief executive Mike Myers said the rental affordability scheme was making ‘’a real difference’’ to the lives of thousands of families.
“A typical NRAS tenant is saving over $90 per week in rent and this makes a huge difference to those on lower incomes” he said.
“We have another 1,000 homes in our construction pipeline and remain fully focused on meeting community needs for affordable housing.”
Mander said the government was committed to delivering an additional 12,000 social and affordable housing dwellings throughout the state.
“Our job is to make sure Queensland has a flexible, efficient and supportive housing system that gives all Queenslanders the dignity that comes from having a safe and affordable place to call home.”
<a target="_blank" href="mailto:%20staylor@propertyobserver.com.au">staylor@propertyobserver.com.au</a>
 
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New NRAS properties announced for Beenleigh, Queensland

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So, you’ve got the home loan, bought the house and are now you’re settling in ...
Well, don’t get too comfortable - nothing stays the same and a proactive approach to your borrowing arrangements over time can save you thousands.
It seems your home loan can be likened to the car you drive – just as it reflects your lifestyle, needs and goals at any stage in life, so, too, should your home loan.
"This is well illustrated by the fact that the cheap runabout you drive when you’re in your early 20s is very different to the seven-seater four-wheel-drive you’ll need in your 40s when you have three children and their friends to transport," says Smartline Personal Mortgage Advisers’ Michelle Schaafsma.
"A young couple starting out who have managed to save their deposit and are in the early stages of their careers, on entry level incomes, probably only need a basic loan with minimal fees and features that simply allows them to maximise paying every dollar off as quickly as possible.
"However, five years later they’re in a very different situation. They’ve paid off a chunk of their home loan and both are earning considerably more and perhaps saving for something significant, such as renovations or an overseas trip. They may well be better off with a home loan package that includes an offset account, redraw, a low fee credit card and a more competitive interest rate.
"Later in life, as the couple moves towards retirement, they may not want or need a complex loan or loan structure. They may well want a basic loan again that is going to allow them to quickly pay out the final amount owing on their home loan in the last few years of their working lives."
Schaafsma said a good mortgage broker would review each client’s situation annually to ensure that loan products and structures in place continue to meet their needs and goals.
She says clients who haven’t reviewed their home loan arrangements in the past three years could be getting a better deal. "The point of the review should not be to focus just on the interest rate on offer and the lender, although they are certainly key considerations, but to determine whether you need the same things out of a loan now that you did when you first took it out.
"If your lifestyle, requirements and financial situation have changed, for better or worse, then there is probably scope to investigate other options.
"Take the couple facing cash flow pressure as a result of reduced household income and/or considerably increased expenses, such as private school fees, who have diligently been making principal and interest repayments on their home loan for 10 years.
"They could probably refinance their mortgage and reset the term of their loan. This would considerably reduce their repayments and improve their household cash flow position and their whole lifestyle."
Schaafsma said the policies and criteria of the banks had changed considerably in recent years and continue to do so. "So, it might be that some forms of income (such as commissions or bonuses) that weren’t previously considered by your lender now are, or that you’re able to borrow a higher percentage of the property’s value.
"The competition in the home loan market also means banks tend to offer loans on more favourable terms to new customers, or existing customers who are prepared to ask for a discount.
"An experienced mortgage adviser will consider your current situation in depth and be able to advise of the best approach to maximise the opportunities available to you."
 
 
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Home loans need to change to reflect your lifestyle

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It’s a tale of two cities: Home loan approvals in September were the highest since October 2009 - yet the month had the lowest proportion of first home borrowers in two decades.
Figures from the Australian Bureau of Statistics show that the first quarter of the financial year had 12% national growth in loan approvals over the previous year and 13% year on year growth for September.
This comes on the back of record low interest rates, high clearance rates and a boost in the number of properties for sale.
However, increased investor activity – and a noticeable rise in cashed-up foreigners - has forced first home buyers out of the race, with their numbers falling from 13.7% of buyers in August to 12.5% in September.
The proportion of first home buyers in the number of owner-occupied housing finance commitments is now one in eight - the lowest since data was collected in July 1991, the Real Estate Institute of Australia says. It is far lower than the long-run average of 20.15%, despite eight interest rate cuts since November 2011.
In contrast, owner-occupied finance approvals rose 12.6% for the 12 months to September and investors took out 5.2% more loans in September than in August.  
"With the proportion of first home buyers at historic lows and figures indicating no bubble in lending, the Reserve Bank Board should be taking a ‘steady as she goes’ approach in December," said REIA president Peter Bushby.  
Changes to the first home buyers’ grants - which in Victoria is $10,000 for the purchase of new homes after July 1 this year but none for established homes – is being blamed for keeping first home buyers behind the eight ball. Pressure on them is further compounded by investors having greater equity in existing property and being able to borrow more at cheaper rates - without the need for mortgage insurance.  
But state treasurer Michael O’Brien said loan approvals for new dwellings in Victoria were the highest of any state. "Victoria contributed 29% of national loans for new dwellings in September which is above its population share of 24.8 %.
"The Coalition government is supporting first home buyers by increasing grants for new homes and bringing forward a major cut in stamp duty.
"Since July 1, more than 6,500 new home buyers have received the stamp duty concession, which amounts to almost $36 million in benefits to first home buyers.
"Targeting the first home owner grant to newly constructed homes – whether in regional Victoria, Melbourne’s growth corridors or new CBD apartments – will stimulate the economy and create jobs in the construction sector." He said the move "brings Victoria into line with New South Wales, Queensland and South Australia".
Loan Market director Mark De Martino said that the first quarter of the financial year was off to "a very hot start" with low interest rates and a recovering property market helping boost activity in the home finance space.  
"Nearly every state is showing double digit growth for the first quarter" De Martino said.  
The 51,938 home finance approvals in September were a rebound from the August figures which saw the first month-on-month drop in approvals in 45 months.  
High auction clearance rates this spring point to a continuing upward trend in market activity.  
De Martino said pre-approvals were helping buyers get a ‘leg up’ over the competition at auctions, although he agreed first home buyers were struggling to enter the market. "As the prospective pool of buyers grows, it’s only a matter of time before first home buyers return. 
"They are competing with cashed-up investors and upgraders who have significant equity in their properties. Building a sizable deposit and understanding their borrowing power with pre approval will give them the best chance to compete in this market."  
Number of Home Finance Commitments September 2013: ABS  
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td>
State
</td>
<td>
September 2013 v 2012
</td>
<td>
Quarter v Quarter
</td>
</tr>
<tr>
<td>
NSW
</td>
<td>
9%
</td>
<td>
11%
</td>
</tr>
<tr>
<td>
VIC
</td>
<td>
17%
</td>
<td>
15%
</td>
</tr>
<tr>
<td>
QLD
</td>
<td>
11%
</td>
<td>
12%
</td>
</tr>
<tr>
<td>
SA
</td>
<td>
19%
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
WA
</td>
<td>
11%
</td>
<td>
8%
</td>
</tr>
<tr>
<td>
TAS
</td>
<td>
6%
</td>
<td>
8%
</td>
</tr>
<tr>
<td>
NT
</td>
<td>
-1%
</td>
<td>
-11%
</td>
</tr>
<tr>
<td>
ACT
</td>
<td>
24%
</td>
<td>
23%
</td>
</tr>
<tr>
<td>
Australia
</td>
<td>
13%
</td>
<td>
12%
</td>
</tr>
</tbody></table>
<hr>
<img src="/images/stories/2013/11/06/jc-insights.png" width="140" height="150" alt="jc-insights" style="float: left;">PROPERTY INSIGHTS
<a title="Falling first home buyers numbers the result of state government FHB grant meddling" href="https://www.propertyobserver.com.au/news/falling-first-home-buyers-numbers-the-result-of-state-government-fhb-grant-meddling/2013111166285?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=jonathanchancellor'spropertyinsights">Falling first home buyers numbers the result of state government FHB grant meddling</a>
"The decline in FHB numbers follow the re-targeting of the originating FHB grants and/or stamp duty exemptions across the states to encourage FHBs to buy new homes not established homes."
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Home loan approvals soar while first home buyer proportion sinks

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An increased investor appetite for retail property by private and institutional buyers in Queensland is ramping up transaction levels across the state’s retail sector. This includes a renewed desire for bulky goods centres.  
The increase in transaction activity - both in total value and in the average size of transactions – is highlighted in a research report by estate agent Savills.  
Insight Retail Queensland shows a total of $2.2 billion worth of retail property sales above $5 million in Queensland in the 12 months to September - up from $1.46 billion in the previous year and well up on the five-year average of $1.13 billion.  
It shows that investor demand for the state’s retail assets is coming from all buyer categories: from private investors and syndicates up to institutional investors who accounted for $1.14 billion of the total $2.2 billion transacted during the year to September.  
The report shows that investor demand is growing across the whole spectrum of retail property: from regional, sub-regional, and neighbourhood centres to renewed interest for bulky goods centres.  
The average size of retail transactions has increased significantly: from $48 million in the previous year to $73 million in the year to September this year, reflecting the increased appetite for sub-regional and regional scale assets from institutional buyers.  
By number of sales, properties in the $10 million-$50 million price range proved the most popular, accounting for around 52% of the total number of properties transacted.  
 <img alt="queensland_retail_nov_6" src="/images/stories/2013/11/06/queensland_retail_nov_6.png" height="306" width="470">    
“Investors are sensing that the outlook for retail property with a five-year horizon is better than commercial offices, given that the national office vacancy has drifted above 10% with the major office markets all likely to go higher as new developments enter,’’ Savills Queensland retail sales director Peter Tyson said.  
“Accordingly, many of the institutional investors have signalled their desire to acquire more quality retail assets, suggesting yields are as generous as they are going to get.  
“We have already witnessed this year improved demand and increased competition with compression of yields for larger and prime assets. We expect this will continue as purchase opportunities remain tight, debt remains low and the weight of capital seeks to find a home.”  
Tyson said Queensland’s retail trade had grown to $54 billion annually and was now 20% of the national annual trade. He said sales in the household category had recovered from negative growth to be up 5% in the past 12 months.  
“One of the key criteria that investors are looking for is a balanced tenancy mix. That is, the right number of specialties-to-anchor ratio and the right variety among the specialty tenants,” he said.  
“Non-discretionary retail tends to hold up the best in economic downturns and, accordingly, neighbourhood centres have been consistently popular, although they do fall in the right price range also for a greater percentage of private investors and syndicates.  
“In the past 12 months, an appetite for bulky goods centres has re-emerged, particularly on the back of some attractive yields. Overall, the outlook for bulky goods has certainly improved, which is reflected in the volume of sales in this category, and we expect this to continue.”  
There are plenty of indicators to support an optimistic outlook for retail across the board, said Savills Queensland research director Paul Day. ‘’Interest rates are at record lows, unemployment is stabilising and likely to be contained below 6.5%, and household savings are at a 20-year high.  
“Improved margins in household savings and population growth will drive total spending. Already we are seeing Queensland outperforming the other states with 3.2% trend growth in retail turnover - double the Australian average for the 12 months to July 2013,” he said.  
“Population growth is again on the rise and the median house price differential between Brisbane and the southern capitals has again widened to more than $100,000. This will promote higher levels of interstate migration.  
“We see a jump in retail trade turnover coming which will enliven the sector and the economy in general. With the low cost of debt and improving prospects, appetite for investment retail property is likely to escalate with a subsequent tightening in yields for prime assets.  
“Judging by the demand this year for retail property - from the smallest convenience centre through to major centres - it appears that investors share the same sentiment for the sector.”  
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Queensland's retail sector ramps up under increased investor appetite

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The construction sector could be on the cusp of a long-awaited recovery, with the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index recording expansion in the sector for the first time in more than three years.
The index jumped 6.8 points to 54.4 in October - passing the critical 50 point mark which indicates expansion.
‘’Consolidation over the next few months will show whether a sustained recovery will be built on the combination of renewed confidence and low interest rates during the first half of 2014,’’ Australian Industry Group director, public policy, Peter Burn, said.
He was backed up by Housing Industry Association chief economist, Harley Dale, who said: “The Australian PCI breaking into positive territory again for the first time in over three years is a milestone moment.
‘’The indications in recent months have been that this outcome was achievable, but there was a false dawn earlier in the year so this confirmation is heartening news for the construction sector. ‘’
The positive reading was led by the residential construction sub-sectors, however, all the sectors were back in the black with the apartments sub-sector recording the strongest growth in October – up 8.5 points to 66.2. Housing also rose strongly - by 3.8 points to 65.3 after a solid upturn in the previous month.
The new orders sub-index was 3.5 points higher at 54.3 reflecting an improvement in confidence and overall demand across construction in the month.
“The sharp lift of the index in October, which comes after a gradual easing of contractionary conditions over the past six months, is certainly welcome,’’ Burn said.
‘’Consolidation over the next few months will show whether a sustained recovery will be built on the combination of renewed confidence and low interest rates during the first half of 2014.
‘’The residential construction sub-sectors are showing most promise while commercial construction activity lifted from a low base and remains more fragile. Engineering construction recorded a welcome return to positive territory despite the cloud hanging over the near-to-medium-term prospects for this sub-sector as mining-related construction retreats from boom conditions.”
After his ‘milestone’ comment, Dale said: ‘’The indications in recent months have been that this outcome was achievable, but there was a false dawn earlier in the year so this confirmation is heartening news.
‘’The residential sub-sectors are leading the way. What appears a sustained improvement in both the house and apartment activity and new orders sub-indices is consistent with a broader recovery evident for leading indicators of new home building.
‘’The activity and new orders sub-indices for houses indicate further upward momentum ahead for detached house building approvals, itself a further tick in the box for a sustained new home building recovery.
‘’It will be important for recent gains in the Australian PCI to be maintained and built upon, but the results of recent months have certainly been pleasing.”
Australian PCI key findings for October:
<ul>
<li>
After almost three and half years in contraction – the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI) expanded in October lifting 6.8 points to 54.4.
</li>
<li>
Across the sub-sectors:  apartments (66.2) and house building (65.3) expanded at higher rates, while commercial construction (52.6) and engineering construction (52.7) returned to growth.
</li>
<li>
Overall construction activity lifted 5.4 points to 57.3.
</li>
<li>
New orders across the sector were stronger at 54.3 – reflecting the activity improvements across all sub-sectors.
</li>
<li>
After 40 months of decline, employment increased to 52.5 in October.
</li>
<li>
Selling prices continued to decline, although at a slower rate (48.9).
</li>
<li>
The increase in input prices was stronger in October (72.1).
 
 
</li>
</ul>
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Construction sector may be on cusp of recovery

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Real estate agents discussing self-managed super funds with potential investors had better watch out.
The Australian Securities and Investments Commission warns that they must understand their legal obligations – or face penalties.
That’s because those who recommend their clients use an SMSF to invest in property must have an Australian financial services licence.
ASIC has written to the REIA, the state and territory real estate institutes and property investment associations setting out its concerns and urging them to alert their members.
With the increasing popularity of SMSFs and property investment, many estate agents may not even realise they are providing financial product advice without a licence.
If providing any advice, agents must ensure they comply with legal obligations under the Corporations Act 2001. 
ASIC’s letters to the REIA and the real estate bodies warn that:
<ul>
<li>
If a person does not hold an AFS licence or is not authorised by an AFS licensee, they can only provide factual information to consumers in relation to SMSFs.
</li>
</ul>
<ul>
<li>
Where an AFS licence is required, estate agents must stop offering and providing financial services or advertising the provision of financial services until an AFS licence is obtained or they become a representative of an AFS licence holder.
</li>
</ul>
<ul>
<li>
A person convicted of carrying on an unlicensed financial services business may be fined up to $34,000 or imprisoned for two years or both. If a company is convicted it may be liable to penalties, including a fine of up to $170,000.
</li>
</ul>
ASIC commissioner Greg Tanzer said ASIC’s role in relation to SMSFs was to regulate the ‘gatekeepers’ – the advice providers, SMSF auditors, and providers of products and services to SMSFs. 
‘We want to ensure the SMSF sector remains healthy and vibrant so investors can be confident that, if they are receiving advice about investing through an SMSF, their adviser holds an Australian financial services licence and is aware of its obligations,’’ Tanzer said.
ASIC is also aware that some real estate agents are offering commissions or benefits to financial advisers for recommending investors use an SMSF to buy those agents' properties.
‘’Such commissions or benefits may be conflicted remuneration and financial advisers may be banned from receiving them under the future of financial advice reforms,’’ Tanzer said. This is because the commissions or benefits could reasonably be expected to influence the financial product advice given to retail clients.
The SMSF Professionals’ Association of Australia is backing ASIC, with CEO Andrea Slattery saying: “The ASIC warning is both timely and needed in light of the enormous media attention that has been given to this issue in recent months.
“From SPAA’s perspective, it’s been our constant stance on SMSFs investing in property that there are technical dangers, and, as such, we have always recommended that trustees get professional licensed advice, either from a professional SMSF advisor who holds a licence or is an authorised representative of a licensee.
“We took that position a year ago in a detailed technical bulletin to all our members warning of the risks of property investment, and it remains our position today.”
Slattery says property is an investment option for an SMSF, but, like any investment, it must be suited to the fund and take into consideration the members’ circumstances.
“In relation to property, there may be an interest in this asset class now because, in a low interest environment, people are looking for investment opportunities with higher yields than cash or bonds, and while there are still fears held about equities.
“It’s exactly because of this heightened interest in property that the regulator should be on the front foot to warn the real estate industry that its members must use licensed advice when recommending setting up an SMSF or recommending an SMSF acquires a property.’’
 
 
 
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ASIC warns agents about legal obligations for SMSF advice

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It may surprise some miffed suburban homebuyers in Melbourne and Sydney, but foreigners cannot buy established houses for investment or as homes in Australia.
This is at odds with the growing perception that cashed-up mainland Chinese buyers are forcing locals out of the property race.
However, foreigners can buy new dwellings, off-the-plan houses or apartments under construction or yet to be built, or vacant land for development.
The latest Knight Frank Global Development Insight report, which looks at global buying trends for new property around the world, reveals that Chinese investors are the most influential buyers in the this sector, with investors from Singapore and Russia second and third.
Key findings are:
<ul>
<li> 37% of respondents believe political and economic risk in a buyer’s home market as a key driver for international demand. </li>
</ul>
<ul>
<li>New York, Paris and London are among the most sought after markets. </li>
</ul>
<ul>
<li>47% of respondents believe ‘the safe haven effect’ is the biggest drawer for their market. </li>
</ul>
<ul>
<li>Education and lifestyle are increasingly important when investing overseas. </li>
</ul>
<ul>
<li>Chinese, Russian and US-based investors are all expected to retain and grow their market share in new-build property over the next 12 months. </li>
</ul>
<ul>
<li>Latin American buyers meanwhile, particularly those from Brazil and Mexico, are expected to feature more prominently in global new-build markets.</li>
</ul>
<ul>
<li>China’s growing importance reflects the rise of Asia as a wealth creation hub. Asia is second only to North America in the number of billionaires, and the number of high-net-worth individuals in China is forecast to rise by 137% over the coming decade, according to data contained in The Wealth Report.</li>
</ul>
"There is strong demand from Asian buyers across all hubs in Australia, especially in Sydney and Melbourne,’’ says Sarah Harding, Knight Frank’s international project marketing - network director.
‘’We expect continued buyer activity from overseas, with buyers coming from China, Hong Kong, Singapore, Malaysia and Indonesia, driven in part due to tightening measures which continue to be imposed on Asian markets in an attempt to cool house prices.
‘’The report reveals that Sydney is rated as No. 1 for buyers in Hong Kong, while Indonesia ranks Sydney as the third top city. This could also be mainly attributed to the proximity, high standards of education and lifestyle options available in Australia."
Harding said offshore developers have been ‘landbanking’ sites over the past year, with Chinese and Malaysian developers actively marketing apartments in their local markets.
‘’Over the next three years we anticipate development activity to ramp up as the number of high-net-worth individuals in China is forecast to rise by 137% over the coming decade."
As well as being the top purchasers of new-build residential property in Sydney and Hong Kong, Chinese buyers are active in Kuala Lumpur and Bangkok’s prime new-build markets. They are growing in strength in key western markets, particularly New York.
The Chinese buyers’ global presence is fuelled by a strong Yuan and slowing domestic economy, encouraging Chinese investors to look further afield to diversify their investments, the Knight Frank report said.
Singaporean and Russian investors are the next most active buyers of new-build residential property around the world, followed by UK and US buyers.
Concern about the rise of Chinese buyers in Australia is in contrast to many European countries, which are tempting international investors with promises of residency and a reduced tax bill. This is because foreign buyers help stimulate struggling mainstream property markets and boost economic growth.
In Spain, Portugal and Greece, for example, large amounts of stock remains unsold as a result of property booms that came to an abrupt halt in 2008. In Spain, estimates suggest that at the end of last year there were around 700,000 new homes unsold on the market.
According to official data, mainstream property prices in Greece, Spain and Portugal are now 31%, 29% and 19% below their respective market peaks.
Knight Frank’s residential development teams around the world report that Asia - home to five of the top 10 leading buyers - should be viewed as an important market for developers to showcase new projects.
‘’In terms of pricing, research indicates that the leading international buyers for prime new-build residential property spend between $1.8 million and $3 million, and typically look for apartments with two or three bedrooms,’’ they say.
</body></html>

Foreign buyer limitations on property may come as surprise

The Victorian Government has secured the passage of the Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026, introducing a suite of reforms aimed at improving consumer protection and confidence in the apartment market.

Resilience Insurance, Australia’s leading Latent Defects Insurance (LDI) provider, has welcomed the move.

The LDI elements of the Bill passed with bipartisan support and now moves to the Legislative Council where debate and passage are expected later this month. It represents a significant milestone in the national shift toward stronger, longer-term protection for apartment buyers.&nbsp;

The reform would deliver practical benefits across the housing system. Apartment owners will have stronger protection if major defects emerge, developers and builders will have a clearer quality framework to work within, and the State will reduce the risk of serious building failures becoming a long-term financial and social burden for households, communities and government.&nbsp;

LDI helps support apartment delivery while providing stronger protection for buyers and encouraging better construction outcomes.&nbsp;

Resilience LDI provides apartment owners with 10 years of insurance-backed cover for major structural defects from completion, with direct claim access to the insurer. This means owners are not required to first pursue developers or builders through costly legal action before accessing protection.&nbsp;

Resilience Insurance has been operating in Australia since 2022 and has already insured hundreds of development projects covering many thousands of apartments across Australia.&nbsp;

At approximately 1.8 per cent of build cost, it is a cost-competitive alternative to the traditional two per cent Strata Bond, bond while delivering significantly broader and longer protection.&nbsp;

“The Victorian Lower House vote shows that reforms like this succeed when they are practical, evidence-based and supported by industry," says Corey Nugent, CEO of Resilience Insurance.

"Victoria is moving quickly on a reform that will make a real difference for apartment buyers, while supporting better building outcomes and greater confidence in apartment delivery.

“This is step one. We look forward to the Bill completing its passage through the Legislative Council and to working with government and industry to implement the framework effectively.”&nbsp;

Fast Facts: What is Resilience LDI?&nbsp;

<ul>
	<li>Resilience Latent Defects Insurance (LDI): Covers major structural defects for 10 years from completion.&nbsp;</li>
	<li>Consumer-first: Direct claim access, no need for lengthy legal action.&nbsp;</li>
	<li>Cost advantage: At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.&nbsp;</li>
	<li>Market leader: Resilience Insurance is the first approved LDI provider in NSW.</li>
</ul>

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026 has passed the Victorian Lower House, putting Victoria on track to become the first state to legislate an industry workable LDI framework as a formal alternative to the Strata Building bond. 

Joel Robinson

10-year Latent Defects Insurance for new apartment buyers set to land in Victoria

Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.

Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.

There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.

<img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" />

Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.

"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."

The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;

The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;

Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a>

Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a> 
&nbsp;

Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.

The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.

Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.

The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.

<img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" />

A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.

Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.

New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.

GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.

First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368853]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available.

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.

The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.

&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.

The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.

<img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" />

A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.

The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.

"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.

The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.

Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."

The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.

<img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" />

The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.

S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.

Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.

John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.

Stephen Taylor

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