The sought-after Latent Defects Insurance policy, offering off the plan apartment buyers peace of mind for 10 years post-completion, has made its way to Sydney’s harbourside. Boutique developer <a href="https://www.apartments.com.au/developers/toohey-miller">Toohey Miller</a> has secured this insurance for its newly launched Elizabeth Bay development, <a href="https://www.apartments.com.au/new-apartments/barncleuth-square-elizabeth-bay-4-4a-barncleuth-square-elizabeth-bay-nsw-2011">Barncleuth</a>. This marks the developer’s second project in the area, following the success of No. 1 Onslow Place.

Latent Defects Insurance, offered by <a href="https://www.apartments.com.au/news/resilience-latent-defects-insurance">Resilience Insurance</a>, provides cover for structural or waterproofing defects in new apartment buildings. It is a policy that only the developer or builder can take out, not the apartment purchaser.

Located just&nbsp;off Macleay Street, one of Sydney’s most desirable high streets, Barncleuth offers a rare collection of only 10 residences. With just two per floor, each oversized floorplan has been designed by SJB specifically for the owner-occupier.

[smartcode_project:default project_id=140184 project_image_fid=356342]

The five-storey building captures views over Rushcutters Bay and Paddington, blending contemporary brickwork with the expressive silhouettes of its Art Deco neighbours.

Inside, the residences, designed by David Hicks, prioritise generous scale and enduring quality, with a mix of two- and three-bedroom layouts. Expansive terraces and cross-ventilated interiors maximise light and airflow, while sustainable features such as a green roof and locally sourced materials reflect SJB’s commitment to long-term liveability.

[smartcode_project:default project_id=140184 project_image_fid=356341]

Developer Toohey Miller, led by Nick Couloumbis, says the design aims to bring lasting quality to an area long celebrated for its apartment heritage.

"It's a stone's throw from the best restaurants in Sydney. Some people call it the Soho of Sydney," Couloumbis told Apartments.com.au when the project was approved.

[smartcode_project:default project_id=140184 project_image_fid=356337]

By securing <a href="https://www.apartments.com.au/news/resilience-latent-defects-insurance">Resilience Latent Defects Insurance</a>, Barncleuth joins a growing group of premium Sydney projects adopting the gold standard in building protection.&nbsp;

The cover, provided before construction begins, ensures any hidden structural or waterproofing defects are repaired immediately, without lengthy litigation or fault disputes.

Resilience Insurance CEO Corey Nugent said the product has been a catalyst for renewed confidence in the off the plan market.&nbsp;

“Ultimately what we’re trying to do is build better buildings consumers can trust. When buyers take possession, they have full insurance protection from day one, for 10 years,” Nugent explained.

Unlike traditional policies such as strata or construction insurance, Resilience LDI is a first-resort, strict liability policy, meaning repairs are covered immediately without needing to prove negligence. Coverage extends to foundations, load-bearing walls, and waterproofing, the elements most critical to long-term structural integrity.

Regarded construction firm Jasara has been appointed to deliver Barncleuth. They are forecasting an early 2027 completion.

[smartcode_project_cta:default project_id=140184]

Joel Robinson

Toohey Miller brings 10-year Latent Defects Insurance to Elizabeth Bay as Barncleuth apartments launch

<a href="https://www.apartments.com.au/developers/golden-sedayu">Golden Sedayu</a> has unveiled plans for the next phase of its landmark $4 billion <a href="https://www.apartments.com.au/new-townhouses/burswood-point-saintly-entrance-burswood-wa-6100">Burswood Point</a> project, just 3.5km from the Perth CBD at the Belmont Racecourse site.

The Local Development Plan Application has been lodged for a world-class mixed-use hub (Precinct B) on the previously untouched 2.5km stretch of Swan River foreshore.

Designed by Skidmore, Owings &amp; Merrill (SOM), recognised for their work on the world’s tallest skyscraper, Burj Khalifa in Dubai and the One World Trade Centre in New York, Precinct B will feature 15 buildings, offering a mix of residential and commercial spaces including a shopping centre up to 30,000 sqm in size.

Complementing this, an internationally acclaimed five-star hotel, and a high-end pedestrian-friendly retail boulevard with vibrant day-and-night retail, dining, and entertainment venues, will provide exciting new ways for Perth residents to connect with the riverfront.

This latest milestone signals continued construction and expansion momentum across Perth’s premier riverfront community, which is set to attract local, national and international visitors.

[smartcode_project:default project_id=142314 project_image_fid=263304]

The masterplan features 110,000 sqm of public open space, which is comparable to other Perth landmarks including inner-city Langley Park and South Perth foreshore. The riverside precinct will be brought to life through a visionary landscape concept by globally renowned architectural practice Grant Associates.

With an impressive international portfolio, including Gardens by the Bay and Funan Mall in Singapore and Barangaroo South in Sydney, the firm brings expertise in creating environments that harmonise with surrounding amenity.

At 38 hectares, Burswood Point is one of the largest urban development projects ever undertaken in Australia, and one of Perth’s most transformative mixed-use developments.

Golden Sedayu Managing Director Andrew Sugiaputra said the company was working closely with SOM, Grant Associates and the Government of Western Australia to ensure Burswood Point’s design responds sensitively to its surroundings, reflecting and enhancing the character, history, and natural features of the local environment.

[smartcode_project:default project_id=142314 project_image_fid=1817]

“West Australians enjoy a privileged outdoor lifestyle and the Swan River is central to their enjoyment,"&nbsp;Sugiaputra said.

"We’re proud to be creating something truly spectacular and unique for the city, a place that feels alive from sunrise to sunset, a place where people can stay, shop, dine, and celebrate life on the river."

Precinct B builds on the outstanding success of Burswood Point’s first residential stage, which has been met with exceptional market demand. Somerset Residences, a two- tower luxury apartment development, and the exclusive riverfront homes collection are under construction and selling fast. As the number of Perth houses listed for sale remain at or near record lows, Burswood Point will deliver 4,500 new homes over the next 10 years.

“Golden Sedayu is dedicated to delivering on our promises,"&nbsp;Sugiaputra added.

"Our clients can buy with confidence, knowing that the price is fixed throughout construction. In an industry that has faced challenging market conditions, we’re proud to provide our clients complete peace of mind and confidence in the value of their investment."

&nbsp;

[smartcode_project_cta:default project_id=142314]

Golden Sedayu reveals next 15 buildings in Perth's $4 billion Burswood Point precinct

Rising at the base of The Remarkables,&nbsp;diversified New Zealand developer&nbsp;<a href="https://www.apartments.com.au/developers/safari-group">Safari Group</a>'s Mountain Oak Apartments presents a foothold in Frankton, one of Queenstown’s most dynamic and fast-growing locales.&nbsp;

Surrounded by soaring alpine scenery and year-round tourism drawcards, Mountain Oak Apartments is a masterplanned precinct that perfectly balances accessibility with lifestyle amenity.

<img alt="Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Frankton has emerged as a strategic growth zone just seven kilometres from Queenstown’s CBD, popular among both residents and investors for its proximity to the airport, the region’s two premier ski fields, Coronet Peak and Cardrona Alpine Resort, and an expanding network of shops, services, and recreation options. The apartments enjoy immediate access to the popular Market Street dining hub, as well as Five Mile Shopping Centre and the seasonal Remarkables Market, where locals gather for fresh produce and artisan goods.

The location also places residents near the gateway to South Island adventures. Scenic trails, golf courses, and Lake Wakatipu’s edge are within easy reach, while the historic village of Arrowtown, renowned for its preserved gold rush-era charm and walking routes, is a short drive away. Local transport connectivity is supported by the nearby airport and arterial roads, ideal for frequent travellers and short-term guests alike.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Living_WEB.jpg?VersionId=3LglY20Jp_MAzQYdvwODRWvtjL.cZcqI" />

Tourism-driven demand underpins strong investment fundamentals in Queenstown, with a noted shortage of short- and long-term accommodation stock. Mountain Oak’s 365-day visitor accommodation consent directly addresses this need, offering a rare opportunity to serve Queenstown’s dual population of holidaymakers and hospitality workers.

Construction of the 141 residences began in June 2025, with completion anticipated by mid-2027. Apartments range from one-bedroom to penthouses, with pricing from NZ$639,000. Dual-key options and low-maintenance finishes support a flexible rental model with strong gross return potential.

Staff Writer

From slopes to markets: Mountain Oak connects residents to the best of Queenstown

Deicorp is doubling down in the Hills Showground Station Precinct, the rapidly growing area surrounding the Castle Hill Metro and one of the state’s largest transit-oriented urban renewal sites.

Having launched Hills Showground Village several years ago, and now about 70 per cent through its build, Deicorp has brought another mini-masterplan to market just a few streets away.

The developer has now released the first of 873 residences in <a href="https://www.apartments.com.au/new-apartments/showground-pavilions-castle-hill-3-andalusian-way-castle-hill-nsw-2154">Showground Pavilions</a>, five new buildings located just 500 metres from the Metro, which connects Castle Hill residents to Martin Place in around 37 minutes.

[smartcode_project:default project_id=150067 project_image_fid=351416]

The mix includes one, two, and three-bedroom apartments, as well as a limited release of garden terrace homes with studies.

Designed by <a href="https://www.apartments.com.au/architects/turner-studio">Turner Studio</a> and <a href="https://www.apartments.com.au/architects/group-gsa">GroupGSA</a>, the residences are configured around a network of landscaped courtyards and podium-level gardens, with additional rooftop terraces offering views across the district.&nbsp;Communal amenities include a 3,500 sqm public park, playgrounds, shaded seating areas and walking and cycling paths.

[smartcode_project:default project_id=150067 project_image_fid=351416]

Interiors feature flexible layouts with oversized living areas, deep balconies, SMEG kitchen appliances and floor-to-ceiling glass to maximise light and airflow.&nbsp;

Many apartments include a study space, while select residences offer private outdoor areas. A total of 44 apartments have been designated as affordable housing for key workers, such as nurses, teachers and police officers.

[smartcode_project:default project_id=150067 project_image_fid=351413]

On top of its strong connectivity to the city, Deicorp has delivered significant new amenity to the area. The developer recently opened the 9,500sqm, four-level retail precinct at Hills Showground Village, which includes 26 specialty retailers and a 1,400sqm public plaza, creating a new community hub for shopping, dining, fitness, and everyday convenience. Castle Towers, one of Australia’s largest shopping centres, is also just one Metro stop away.

Between Hills Showground Village and Showground Pavilions, Deicorp is delivering more than 1,300 new homes to the rapidly growing Castle Hill precinct, representing a $2 billion investment in the suburb.

Showground Pavilions is one of several Metro-linked projects in Deicorp’s pipeline, joining developments at Tallawong Village, Zetland, Five Dock, Macquarie Park and Crows Nest.

[smartcode_project_cta:default project_id=150067]

Deicorp expands Castle Hill footprint with Showground Pavilions launch

The completion of Melrose Park Village marks a significant achievement in the evolution of one of Sydney’s largest urban renewal projects, developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a>.&nbsp;

Located in the city’s north-west, <a href="https://www.apartments.com.au/new-apartments/melrose-park-village-2a-2f-appleroth-street-nsw-2114">Melrose Park Village</a> represents the fourth completed stage in the broader $5 billion Melrose Park masterplan, which will ultimately bring over 6,000 new homes, a town centre, new schools and 52,000 sqm of green open space.

The completion of Melrose Park Village delivers 421 apartments across six buildings ranging from six to thirteen storeys, all centred around a 4,000 sqm landscaped courtyard designed as a communal “urban backyard” for residents.&nbsp;

The project is now 96 per cent sold, with 14 premium three-bedroom apartments remaining in the final building. Each offers two car spaces with prices starting from $1.259 million.

Alex Grujovski, Project Director, Apartment &amp; Mixed-Use Developments, said “Sekisui House Australia is proud to celebrate the completion of Melrose Park Village, which stands as a sustainable and connected community in the heart of Sydney’s north-west.&nbsp;

“This project represents a pivotal step in our long-term vision for <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a>, reflecting our commitment to creating communities that blend nature, technology and human connection. Since 2020, we have delivered over 1,075 apartments across four stages, each designed to enhance wellbeing, connectivity and convenience through exceptional architecture and resident-focused amenities.”

[smartcode_project:default project_id=150065 project_image_fid=356089]

Residents benefit from an array of lifestyle facilities including a 4,000 sqm internal park, rooftop gardens and BBQ areas, wellness amenities such as an infrared sauna, yoga studio and gymnasium, plus co-working spaces, pet wash facilities, EV charging stations and a resident shuttle bus.&nbsp;

Sustainability remains at the core of the precinct with rooftop solar, smart energy meters, air and water filtration systems and groundwater reuse technology supporting efficient resource use.

Melrose Park Village was designed by <a href="https://www.apartments.com.au/architects/ajc-architects">AJC Architects</a>, who have led the design of the broader Melrose Park masterplan since inception, developing architectural principles that continue to guide the precinct’s evolution.

Michael Heenan, Design Lead at AJC Architects said the design is completely generated by AJC’s Urban Backyard concept.

"At the heart of Melrose Park Village is a generous green courtyard, a shared backyard for all residents. We designed it at the scale of a local park, a place for families to live, play and grow, capturing the spirit of the Australian backyard.”

The courtyard features nature play areas, a climbing wall and open lawns for social and recreational use. Heenan added that the team’s approach to smart city design, carbon capture and sustainability guided every aspect of the project.&nbsp;

“Stage 4 reflects our belief that density can improve liveability. By integrating architecture, landscape and open space, we have created a model for sustainable urban living that feels contemporary and distinctly Australian.”

&nbsp;

[smartcode_project:default project_id=150065 project_image_fid=356088]

&nbsp;

Melrose Park Village was delivered in partnership with <a href="https://www.apartments.com.au/builders/parkview">Parkview Constructions</a>, a trusted builder with whom Sekisui House Australia has delivered thousands of apartments across Sydney over the past 15 years.&nbsp;

Upon completion, Melrose Park will deliver more than 6,000 dwellings, 52,000 sqm of open green space featuring over 1,400 mature trees, new transport connections, a town centre set to open in 2026 and Melrose Park High School which is currently under construction and due to open in Term 1 2027.&nbsp;

This milestone marks another major step towards realising Sekisui House Australia’s vision to transform a former industrial site into a future-ready neighbourhood for over 12,000 residents.

[smartcode_project_cta:default project_id=150065]

Completion of Melrose Park Village marks a major step forward in $5 billion masterplan

Roberts Co has entered a new phase of growth following its acquisition by Arada, one of the world’s fastest-growing property developers in Australia.

The acquisition is supported by a $50 million capital injection into Roberts Co’s Australian balance sheet, consisting of the previously announced $25 million recapitalisation and an additional $25 million in new funding from Arada.

This investment strengthens Roberts Co’s financial position, stabilises operations, and provides the foundation for strategic expansion beyond its New South Wales base, with a focus on new opportunities in Queensland, including the Brisbane and Gold Coast regions.

With Arada’s international resources and financial backing, Roberts Co will broaden its portfolio across residential, commercial, and infrastructure sectors, reinforcing its strong market position in New South Wales and setting itself to capture growth in one of Australia’s most dynamic construction markets.

Ahmed Alkhoshaibi, Group CEO of Arada, said Roberts Co has a proud Australian heritage, an outstanding delivery record, and a strong reputation for collaboration with clients and partners.

"By combining this expertise with Arada’s global scale and financial capacity, we are creating a platform for sustained growth in the Australian market,"&nbsp;Alkhoshaibi said.

“Our $50 million capital injection, including new funds from Arada, underlines our commitment to both stabilise and expand Roberts Co’s operations, particularly into the fast-growing Queensland market. We see significant potential in South-East Queensland’s pipeline and are confident Roberts Co is well placed to deliver lasting value for clients and communities.”

George Kostas, CEO of Roberts Co, said Queensland, and particularly South-East Queensland, is one of the most active and opportunity-rich regions in Australia right now.

"The lead-up to the Brisbane 2032 Olympic Games will bring unprecedented investment across housing, transport, and infrastructure. Roberts Co is eager to play a major role in that transformation and secure a meaningful share of this fast-growing market.”

Arada pours more funds into Roberts Co, flags expansion into South East Queensland construction market

A national new home building recovery is in sight, but state government housing policies risk stalling the recovery.

That's the view from HIA Senior Economist, Matt King, after the HIA&nbsp;released its Economic and Industry Outlook report.

The report includes updated forecasts for new home building and renovation activity nationally and for each of the eight states and territories.

“At the national level, demand for new homes is accelerating and this is largely due to the fact that the RBA hasn’t increased interest rates for a year, population growth is still elevated, the unemployment rate remains low and real incomes have stabilised,” King said.

“While activity is picking up, the varied nature of activity levels across capital city and regional markets continues to be pronounced.

“We have confidence that new home-building activity across most markets will continue to improve as we transition into the new year."

King said however that <a href="/developments/sydney-nsw">Sydney</a> remains an outlier, and there is still no indication of a near-term rebound in both detached houses and multi-residential buildings.

“New home building in the Sydney basin remains exceptionally low, primarily due to exceptionally high land prices and an ongoing excessive impost of housing taxes and infrastructure charges."

<a href="/developments/perth-wa">Perth</a>, <a href="/developments/adelaide-sa">Adelaide</a>, and South East Queensland continues to lead the way in new contract sales and building approvals, despite ongoing supply-side constraints.

In the September quarter of 2024, building approvals increased from the corresponding quarter last year in Western Australia (+60.1 per cent), Queensland (+24.2 per cent) and South Australia (+16.3 per cent) in seasonally adjusted terms.

The calendar year 2024 has produced a growing divergence of both geography and typology.

The detached home building sector looks promising, evidenced most recently by detached house approvals across Australia rising by 6.1 per cent in the month of September to 9,890. This was the highest monthly number of detached house approvals in two years.

King said in contrast, the apartment sector "remains constrained",&nbsp;and is unlikely to experience any material recovery before mid-2025.

"The sector continues to be dampened by skilled labour shortages, business credit constraints and the aftermath of significant building material cost escalation.

“It is anticipated that detached house starts will rise steadily from a trough of 100,230 in 2023 to 115,690 in 2027. If the supply of land and labour are addressed, there is significant upside potential for this forecast.

“With relatively stable economic conditions nationally, home prices will remain elevated, rental vacancies will remain acutely low and demand for new homes will recover."

King says the&nbsp;extent of the recovery in new home building will be determined by the ability of governments to ease the barriers to home building.

“Housing investment is encouraged by the certainty of policy settings. Recent state government announcements to levy increased surcharges on foreign investors and introduce taxes on short-term rental accommodation are unhelpful at a time when stability is needed to achieve the 1.2 million home target.

“Failure to implement policies such as expedited land release, concessions on property taxation, and accelerated development approval timeframes; risk slowing the rate of home building over the next five years.

“At the beginning of this upswing in the cycle and the initial stage of the National Housing Accord target period, now is the time to ensure that each state government housing policy mix is entirely pro-supply,” King stated.

There were 14,090 multi-unit commencements in the June quarter of 2024, which is 7.8 per cent lower compared to the previous quarter and the second weakest quarter in 12 years. This is expected to increase by 15.5 per cent in the September quarter to 16,260, followed by a modest 1.8 per cent increase in the December quarter.

The upswing will bring multi-unit starts in the calendar year 2024 to 62,190, the weakest year since 2011 (62,170). Multi-unit commencements are expected to rise by 11.5 per cent in 2025 to 69,360 and by a stronger 20.9 per cent in 2026 to 83,870, followed by a 20.3 per cent increase in 2027 to 100,860 and a 2028 peak of 104,380.

Home building increasing everywhere but Sydney

Resilience Latent Defects Insurance (LDI) is reshaping the way building defects are managed in Australia, providing the most extensive cover for off the plan property buyers in the market.

<h2>What is Resilience LDI?</h2>

Resilience LDI is the <a href="/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">first Latent Defects Insurance policy in Australia</a>. The insurance provides off the plan apartment buyers with a 10-year warranty for structural and waterproofing defects on both their new apartment and the building it's situated in.&nbsp;

The cover is purchased pre-construction by the property developer or builder and is designed to protect apartment owners against any immediate or future problems with the structural components of their new property, from leaks to cracks and everything in between.

<h2 id="ember48">Understanding first resort strict liability Latent Defects Insurance</h2>

First resort, strict liability LDI marks a significant advancement in consumer protection in the building industry. Unlike traditional insurance, which requires proving fault or negligence, this insurance operates on a strict liability basis. This means that issues can be addressed without needing to establish fault first—a long-standing problem in new developments. This delay often leaves consumers at a disadvantage, as problems remain unresolved while legal battles drag on, leading to increased costs and frustration

With strict liability insurance, consumers are entitled to compensation without navigating the complexities of proving fault or negligence. This streamlines the claims process and ensures faster resolution, providing&nbsp;consumers with primary coverage for damages resulting from latent defects, without the need to establish fault on the part of the builder or developer.

<h2>Further strengthens build quality</h2>

Latent Defects Insurance is a key indicator of build quality.&nbsp;Before a policy is issued, the construction process undergoes rigorous inspections by accredited independent experts.&nbsp;

These inspections ensure that any defects are identified and rectified during construction, not after.&nbsp;This proactive approach means that buyers can be more confident in the quality of their new apartment.

<h2>Increase apartment value</h2>

With LDI, buyers can rest assured that their property is safeguarded against structural defects for a decade after completion. This long-term coverage adds significant value to the property, making it more appealing to future buyers and potentially increasing resale values. Subsequent buyers will benefit from LDI coverage for the remainder of the 10-year policy on their newly purchased apartment.

Latent Defects Insurance is only being offered by Resilience Insurance in Australia. LDI has been a common policy worldwide for over seven decades, with over 40 countries offering LDI to new apartment buildings.

As a buyer, LDI isn't a policy you can take out individually on your apartment. Your new development either has the Resilience Latent Defects Insurance policy or it hasn't. Several of Australia's largest developers, such as Deicorp and Urban Property Group.

Latent Defects Insurance is only being offered by Resilience Insurance in Australia. LDI has been a common policy worldwide for over seven decades, with over 40 countries offering LDI to new apartment buildings

The advantages of first resort, strict liability, Latent Defects Insurance for off the plan property buyers

The latest dwelling approvals released by the ABS paint a bleak picture for the future of housing in Australia.

Following two months of growth, total dwelling approvals dropped -6.5 per cent in June, to be back around 12 year lows.

The most glaring statistic was that the declines were driven by New South Wales (-18.8 per cent) and Victoria (-13.5 per cent), the home of two of our largest capital cities and immigration hotspots.

Over the past 12 months, there have been a total of 162,892 dwellings approved, compared to 177,936 in the 12 months prior, representing an -8.5 per cent decrease. It's the lowest number of dwellings approved on a financial year basis since 2011/12.

Dwelling approvals had been trending upwards, marginally, in the two months prior to the latest release.&nbsp;

The result came in below consensus expectations of a milder -2 per cent fall although that mainly reflected a sharp drop in the volatile units component.&nbsp;

Approvals for private sector dwellings excluding houses (townhouses, apartments and terrace houses) fell by -19.7 per cent in June, reaching the second-lowest monthly level recorded since January 2012.&nbsp;

<h2>Dwelling Approvals by Building Type</h2>

<img alt="Dwelling" data-entity-type="file" data-entity-uuid="c43443ec-8b14-4237-a7e3-5e8609378858" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-07-31%20at%2011.48.09%E2%80%AFAM.png?VersionId=820tT7ActWtlQU34Jy7WZAgGs20h8oGu" />

“These building approval numbers are an alarm bell that this housing crisis could rapidly escalate into a political crisis if further action isn’t taken,” said Stuart Ayres, CEO,&nbsp;UDIA&nbsp;NSW.

“Every month of underwhelming data requires another future month of increased approvals for us to have any hope of recovery. We do not want to see these housing targets drift into the realm of impossibility."

The Property Council of Australia said the decline in approvals is another clear sign of the challenges ahead to the national housing targets.&nbsp;

<a data-entity-type="file" data-entity-uuid="ee9bdceb-a292-4e98-89b8-fefb5aa36ada" href="/developments/sydney-nsw"><img alt="Search New Property Across Sydney" data-entity-type="" data-entity-uuid="" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202024-08-02%20at%202.37.15%20pm.png?VersionId=2647mseF7WdBlu_6UdgG_43IFQI8Ypg1" /></a>

Property Council Group Executive Policy and Advocacy Matthew Kandelaars said the figures continue to paint a challenging picture for reaching our 1.2 million new homes by 2029 target.&nbsp;

“That our dwelling approval numbers have hit the lowest number on a financial year basis in &nbsp;over a decade is a clear sign of the challenges we face in delivering the homes Australians need,” Kandelaars said.&nbsp;

“If we don't accelerate our efforts, we will fall far short of what should be an attainable target.&nbsp;Governments nationwide must use every available measure to help industry deliver the desperately needed supply of new homes.&nbsp;

“We need an invigorated focus on supply-inducing last-mile infrastructure, more construction labour and we need to ensure that first-home buyers are given a better chance of accessing credit for housing.&nbsp;

“To achieve our goal of 1.2 million homes, we need to adopt a proactive mindset and pull every lever available to unlock more supply – including new homes for students, renters and retirees."

“These building approval numbers are an alarm bell that this housing crisis could rapidly escalate into a political crisis if further action isn’t taken,” said Stuart Ayres, CEO, UDIA NSW

Dwelling approval drop highlights urgent need for interest rate drop or incentive for developers to build

A reacceleration in the quarterly pace of growth for national construction costs is suggested to be a return to trend rather than a new surge, according to CoreLogic.

The&nbsp;Cordell Construction Cost Index (CCCI), which tracks the cost to build a typical new dwelling, recorded a growth rate of 0.8% over the three months to December. This marks a reversal of the easing trend seen over the previous four quarters when the quarterly CCCI reading went from 4.7% in Q3 2022 to 0.5% in Q3 2023. The annual growth rate for the 2023 calendar year was 2.9%.

CoreLogic Economist Kaytlin Ezzy&nbsp;said although the quarterly CCCI reading has risen, the latest growth rate remains 20 basis points below the pre-COVID decade average of 1.0%.

"This suggests that reacceleration is more a return to trend rather than a new surge in construction costs," Ezzy said.

"While up over the quarter, the annual change in residential construction costs continued to ease as larger quarterly increases fell out of the annual calculation."

At 2.9%, the latest 12-month increase was the smallest annual rise in the national CCCI since the year to March 2007 (2.7%) and below the pre-COVID decade average (4.0%).

"This suggests that growth in construction costs have normalised after recording a recent peak of 11.9% over the 12 months to December 2022, albeit at a higher level. Although 26.6% higher than at the onset of the pandemic, the recent surge in CCCI is below the increases seen across national house values, with CoreLogic's Home Value Index rising 36.5% over the same period," Ezzy added.

CoreLogic Construction Cost Estimation Manager John Bennett&nbsp;said pricing remains generally unsettled, with no clear trend seen across most product types.

"Depending on the supplier, both increases and decreases were recorded in timber and metal prices, although we have seen rises in the price of hardware and chemical items. This tells me suppliers are either bringing their product pricing back down to acceptable levels from the increases during the Covid period, or they are increasing to set up for the year ahead," Mr Bennett said.

"In 2023 there was a bit of uncertainty around what the fallout from the interest rate increases would be and therefore the overall impact on the building industry. While the latest figures show the market has settled down, I don't think we have seen the slowdown many were expecting.

"While dwelling approvals are still well below historic averages, there is still an elevated level of projects under construction which is keeping cost pressures high," he added.

Price rises were also varied across the states, with an increased growth rate seen in NSW, Victoria and WA, while SA and Queensland both saw a reduction in quarterly CCCI growth.

<h2>CCCI Outlook</h2>

Ezzy said the outlook for construction costs over the coming year is uncertain.

"While it's unlikely we'll see any declines in construction costs, the pace of growth could be influenced by several factors. Although national dwelling approvals have risen from a recent low of 12,185 in January, the latest data from the ABS showed that dwelling approvals remained -15.8% below the decade average in November at around 14,500. Although a number of projects are still moving through the construction pipeline, the recent lull in approvals could result in a shortfall in new projects, which would help keep growth in building costs low, due to greater capacity in the construction sector.

"However, with the CPI continuing to ease, it's looking increasingly like we'll see a cash rate cut in the second half of 2024, which could fuel housing demand for both established and new dwellings. Regardless, the normalisation in CCCI growth will help provide some certainly for builders, insurance companies and homeowners alike," she said.

<h2>Key findings by state – Q4 2023 CCCI Report</h2>

<ul>
	<li>The CCCI for NSW rose 1.0%, up 40 basis points on the previous quarter but only 10 basis points above the pre-COVID decade average of 0.9%. The annual reading eased to 3.1%, the lowest annual change since the 12 months to March 2021.</li>
	<li>Victoria’s CCCI rose 1.1% over the quarter, up from 0.3% in the September quarter, making it the fastest acceleration in construction costs among the states. The annual increase continued to ease to 2.9%, down from a recent high of 13.0% over 2022 and is Victoria's lowest annual change since the 2016 calendar year (2.6%).</li>
	<li>Queensland recorded the lowest quarterly rise at just 0.1%, down from 0.8% in Q3, bucking the acceleration trend. This is the state's lowest quarterly result since Q1 2001 when CCCI fell -0.1%. The December quarter's weaker growth helped bring Queensland's annual growth rate back in line with the other states at 2.8%.</li>
	<li>In WA, construction costs rose 0.7% over the quarter, up 50 basis points on Q3. Annually, WA's CCCI increased by 2.3%, which was the lowest annual rate among the states.</li>
	<li>SA’s CCCI Increased by 0.5%, down from 0.6% in Q3, also bucking the national trend. This took SA's annual change in construction costs to 2.8%.</li>
</ul>

CoreLogic researches and reports on materials and labour costs which flows through to its Cordell construction solutions to help businesses make better decisions, estimate rebuild and insurance quotes easily and, ultimately, price risk effectively.

Construction cost growth returns to normal trends: CoreLogic

Developments across Australia are getting greener.

In the financial year 2022-23,&nbsp;Green Star certifications increased by more than 80 per cent, the Green Building Council of Australia (GBCA) has announced.

Over 800 certifications were issued across Australia, showing sustainability is on the rise.

Jorge Chapa, Chief Impact Officer at GBCA, said the&nbsp;2022–23 financial year saw GBCA issue more than 840 Green Star certifications – the highest number since the inception of Green Star,” Chapa said.

“This year we saw an unprecedented number of certifications across a range of projects from universities to the interiors of retail stores, and from industrial precincts to sporting arenas hosting the Women’s FIFA World cup here in Australia.”

Now over 80,000 people live in Green Star rated apartment buildings, while over&nbsp;890,000 people will live or work in the 70 Green Star-certified communities, including more than 510,000 residents and 380,000 workers and students.

<img alt="Greenstar" data-entity-type="file" data-entity-uuid="13ef9712-efd0-4f4e-9f85-5cd2f77af118" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-11-21%20at%209.28.27%20am.png?VersionId=obKIKRQJvp3IoZmEuXlVvRZiVyf0UdvA" />

There's an upcoming release of Green Star Fitouts which will help drive&nbsp;circular, healthy, responsible and positive outcomes in commercial space, while a tailored pathway for apartment buildings within Green Star Buildings is also under development.

Chapa emphasised the importance of the relationship between Green Star, industry, and the community.

“2023 was the year of game changers, milestones, and growth for the GBCA, but also for industry who responded to the calls for a more sustainable, resilient, and healthy built environment.”

<a href="/developers/sekisui-house-australia">Sekisui House Australia's</a> West Village precinct in <a href="/new-apartments/west-end-qld-4101">West End</a> is a 6-Star Green Star Community. Their apartments feature tinted windows to reduce heat gain and energy bills, rainwater tanks to create a greywater recycling system, and a&nbsp;21kW solar PV system to generate renewable entry in the communal areas.

[smartcode_project:default project_id=114215 project_image_fid=204851]

AVJennings are pursuing a&nbsp;5-Star Green Star Community rating, as well as a 7-Star natHERS Rating, at their new <a href="/new-apartments/brunswick-west-vic-3055">Brunswick West development</a>, <a href="/buildings/harvest-square-apartments-and-townhomes">Harvest Square</a>.

The walkable community&nbsp;is fully electric, and features an 18-metre-wide green corridor with productive plantings for the enjoyment of all residents.

Over 800 certifications were issued across Australia, showing sustainability is on the rise

Apartment developments getting more sustainable: Green Building Council of Australia

A sharp slowdown in the pace of construction cost growth may be an early sign that pressures are stabilising within the building sector.

CoreLogic’s Cordell Construction Cost Index (CCCI), which tracks the cost to build a typical new dwelling, returned a quarterly growth rate of 0.5 per cent for the September quarter, the smallest lift since the three months to June 2019 and half the pre-COVID decade average of one per cent per quarter.

This took the annual growth in the index to 4.0 per cent, below the recent quarterly peak of 4.7% this time last year.

CoreLogic Head of Australian Research Eliza Owen said while construction costs are still very elevated, the ongoing level of increase has normalised.

“This is the fourth consecutive slowdown in the quarterly pace of growth for residential construction costs,” Owen said.

“The slowdown in new dwelling approvals also points to mixed news for the construction industry next year. On the one hand, this will free up capacity for material and labour resources, but it will also mean greater competition for new jobs.”

The recent slowdown in the growth rate of construction costs is broadly in line with the new dwellings cost sub-component of the ABS CPI figures.

The ABS CPI sub-index saw a peak in the March 2022 quarter at 5.7 per cent, and has since slowed to just one per cent through the June quarter of 2023.

"The cost of new owner occupier dwelling purchases comprises the largest weighting in the CPI ‘basket’, so the continual easing in the CCCI may also be a forward indicator of inflationary pressures easing within the building sector,” Owen added.

Apartment developers have seen costs soar over the last few years since the pandemic, making their projects unfeasible. While costs are still considerably higher than they were two years ago, the big difference is they're not going up every month like they were in 2021 and 2022.

CoreLogic Construction Cost Estimation Manager John Bennett said cost pressures in construction are shifting from an issue of materials, to labour.

“While material costs appear to have stabilised in general, labour costs have had a number of new pressures applied,” Bennett said.

“Award rates have increased more than five per cent across the construction industry, coming in higher than previous years."

&nbsp;

<h1>Key findings by state – Q3 2023 CCCI Report</h1>

- The CCCI for New South Wales rose 0.6% over the three months to September 2023, steady on the previous quarter but down from a recent high of 4.0% Q3 last year. The annual increase also sank to 3.9% from 7.3% in the three months to June 2023.

- Victoria’s CCCI recorded a 0.3% increase in construction costs over the September quarter, down from 0.7% in the three months to June and the largest deceleration in construction costs over the quarter. Annually costs increased 3.7%, from a peak of 13.0% in the calendar year of 2022.

- Queensland saw construction costs rise by 0.8% over the quarter, the highest quarterly increase 
at a state level and 10 basis points up on Q2 2023. On an annual basis, costs increased 4.8%.

- In Western Australia, construction costs rose 0.2% over the quarter, the lowest quarterly growth rate of all states. The quarterly pace of change is down from a recent high of 4.3% in the September quarter of 2021, and is running below the pre-COVID decade average rate of 1.0%.

- South Australia's increase in construction costs was 0.6% for the quarter, the smallest increase in the CCCI since the Q3 2020, when the effects of material constraints and a surge in demand from HomeBuilder were yet to be fully felt in the residential construction space. The annual increase plummeted to 4.1% from a recent high of 10.5% in the 2022 calendar year.

CoreLogic Head of Australian Research Eliza Owen said while construction costs are still very elevated, the ongoing level of increase has normalised

Construction costs ease prompting apartment developers to look forward

As awareness around environmental sustainability and outcomes grows, the Australian construction industry is increasingly transitioning towards adopting more sustainable construction methods and green building practices.

The need to create modern structures that harmonise with the environment, while also saving costs and inefficiencies, reducing waste, minimising energy consumption, and enhancing human wellbeing is driving this change.

Bart Crowther, Regional Lead for Australia and New Zealand, PlanRadar, says green buildings present an alternative to traditional construction methods that, by design, helps reduce the negative environmental impacts of construction and building operation.

"The construction industry has significant influence on the environment, and pivoting towards more sustainable development, including prioritising net zero construction, is crucial to protecting our resources," Crowther said.

Net zero construction is a term applied to buildings and construction projects that have no net release of greenhouse gases during their lifecycle. Sustainable construction practices—such as using sustainable materials and prioritising energy efficiency and renewable energy sources—allow building projects reduce their ongoing construction and operational costs. Primarily, this creates more efficient buildings that incur lower energy and utility bills due to reduced water consumption and waste generation.

Importantly, net zero construction delivers buildings with reduced environmental impacts, substantial cost savings, improved indoor environments for occupants, and wider social and community benefits. Their growth is a testament to their viability and the expanding consciousness of their significance.

While net zero buildings and sustainable construction are not a new concept, there are three notable trends that are driving increased interest and adoption:

<h1>Sustainable materials</h1>

Renewable or recycled resources, such as bamboo, wool, or cork, are replacing traditional building materials, reducing environmental impact and fostering long-term sustainability. These materials offer durability, require less maintenance, and have a smaller environmental footprint, making them a smart and sustainable choice.&nbsp; They also contribute to improved indoor air quality by reducing harmful chemicals, creating a healthier living and working environment.

<h1>Green roofs</h1>

Partially or entirely covering a roof with vegetation creates a green roof, which absorbs rainwater, slows stormwater runoff, improves water and energy efficiency, and extends the lifespan of a roof. Additionally, their ability to cool the air helps to reduce the urban heat island effect (an urban area that experiences warmer temperatures than surrounding areas due to human activities and population density), decreasing energy usage and greenhouse gas emissions. They also provide a haven for birds and other wildlife, enhancing local biodiversity.

<h1>Passive design</h1>

Passive design uses natural sources like sun and wind to minimise heat gain and loss, making the building more energy efficient. Designs can match a building to its local climate and maintain comfortable indoor temperatures without additional heating or cooling to save energy and reduce costs. This reduces a building's energy consumption and overall environmental impact while also contributing to healthier indoor air quality and a comfortable living or working space.

“The construction industry stands at the forefront of environmental sustainability, embracing new trends to decrease carbon footprints, increase energy efficiency, and make a positive impact on the environment," Crowther added.

"The evolution of green buildings is a testament to the sector's adaptability and commitment to securing a sustainable future for coming generations.

“These innovative trends in green building are influencing traditional construction methodologies and setting the tone for the industry's future. By embracing net-zero buildings, sustainable materials, green roofs, and passive design, the Australian construction industry can move towards a future where structures are not only built to last, but also to positively impact the environment and the communities they serve.”

Bart Crowther, Regional Lead for Australia and New Zealand, PlanRadar, says green buildings present an alternative to traditional construction methods that, by design, helps reduce the negative environmental impacts of construction and building operation

Three green building trends propelling the construction industry

Residential cranes across Australia's capitals and major cities are still at near peak levels,&nbsp;Rider Levett Bucknell (RLB's) Q1 2023 Crane Index found.

The residential index representing the number of cranes on residential projects across the country has eased off very slightly from 172 index points to 171 index points. The results are similar to those recorded in the 2015-2017 property boom.

Over the last six months, 292 new cranes were added to new development sites, but 300 were removed from projects nearing completion. There are 835 cranes up across the country, a 3.8 per cent decrease from the 868 cranes in RLB's last edition of the report. The 835 cranes in the Q1 2023 report is still the second highest number of cranes seen since the inception of the RLB Crane Index in 2012.

<img alt="RLB Crane Index" data-entity-type="file" data-entity-uuid="f73284eb-c266-4b5d-9663-32255f086672" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202023-04-11%20at%2010.17.24%20am.png?VersionId=GiuC9xZZuTCaDW1zSSI5DYMyGPEqszPQ" />The number of cranes across Australia. Image credit: RLB Crane Index Q1 2023

Domenic Schiafone, RLB’s Oceania Director of Research and Development said the continuing strong number of cranes observed correlates with the strong national activity numbers.

<h2>Large fall in crane numbers in Melbourne CBD, but residential cranes holds firm</h2>

Melbourne recorded a fall of eight per cent in the Q1 2023 RLB Crane Index.

Across Melbourne, a total of 84 new cranes were added to projects, and 101 cranes removed, representing a net loss of 17 cranes across the region, bringing the current number of cranes to 189, down from 206 recorded in the previous edition.

[smartcode_project:default project_id=4522 project_image_fid=208465]

There were two less cranes for residential projects across Melbourne compared to the Q3 2022 Crane Index. Approval values grew over the 2022 calendar year, up 1.5 per cent.

"The apartments sub-sector saw total approvals grow by 42.8 per cent to $6.1 billion, although still below CY 2017 peaks,"&nbsp;Schiafone noted in the report.

[smartcode_project:default project_id=27728 project_image_fid=173913]

The report found that inner-city remains the region with the highest prevalence of cranes, accounting for 44 per cent of all of Melbourne’s cranes.

Residential cranes in Melbourne account for 53 per cent of crane activity.

To read more about Melbourne crane activity, click here.

<h2>Sydney still the main driver of crane count, but residential tapers off</h2>

Sydney continues to be the main driver of the crane count. Of the 836 cranes sighted across Australia, 365 were in Sydney.

But the residential pipeline in Sydney is shrinking. Approvals for houses were up 2.3 per ent, but apartment approvals were down by 23.1 per cent.

[smartcode_project:default project_id=108896 project_image_fid=180669]

The residential sector saw a total of 78 cranes removed and 65 new cranes added, bringing the overall number of cranes in the sector down to 246 cranes.

Inner Sydney (CBD &amp; Surrounds) saw the addition of only 18 cranes, against the removal of 27 cranes. This brings the total number of cranes down to 89 cranes. Losses were almost entirely attributed to the residential sector, which recorded a net decrease of 13 cranes.

[smartcode_project:default project_id=9302 project_image_fid=188219]

Sydney's crane activity is still the second highest on record.

To read more about Sydney's crane activity, click here.

<h2>South East Queensland reaches a new high</h2>

The crane count in Brisbane declined slightly during Q1 2023, down by five cranes from 35 to 30.

The residential sector continues to be the largest in Brisbane, accounting for 39 per cent of all cranes (30 of 77 cranes), slightly lower than the 43 per cent share recorded in the previous count.

Schiafone says it is interesting to note that that the current 39 percent share that the residential sector maintains in Brisbane is significantly lower than both Melbourne and Sydney, where residential cranes account for 53 per cent and 67 per cent of each city respectively.

[smartcode_project:default project_id=112020 project_image_fid=198798]

While Brisbane recorded a net loss in overall crane numbers, the Sunshine Coast and Gold Coast have performed stronger, bringing the total number of cranes across South East Queensland to a new high of 153 cranes.

Queensland should see a strong pipeline of activity over the next few years, with approval values for 2022 growing 6.2 per cent compared to 2021.

To read more about the South East Queensland crane activity, click here.

Over the last six months, 292 new cranes were added to new development sites, but 300 were removed from projects nearing completion

Residential crane count across Australia still near peak: RLB Crane Index Q1 2023

Homophobia, bullying and harassment continues in the construction industry despite improving attitudes towards LGBTQ+ employees, according to new research from the Australian Human Rights Institute at UNSW released Tuesday.

The report, which looked into the experiences of LGBTQ+ people working in construction and the effectiveness of current diversity and inclusion strategies, was undertaken in conjunction with InterBuild&rsquo;s People Engagement working group and sponsored by the Lendlease Foundation.

Researchers Dr Natalie Galea and Dr Melissa Jardine found that while LGBTQ+ inclusion has improved, there is a &ldquo;significant variation across the industry&rdquo; and many people still don&rsquo;t feel safe bringing their authentic selves to work.

<img alt="" height="667" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/shutterstock_1396952330.jpg" width="1000" />

Participants in the study ranged from tradespeople to senior executives of multinational companies, and gave detailed accounts about coming out at work, the experience of transitioning gender in the workplace, and the effectiveness of existing diversity and inclusion strategies.

Another study published by <a href="https://www.pwc.com.au/publications/pdf/pwc-workplace-inclusion-report-sep17.pdf" target="_blank">PwC&rsquo;s GLEE team</a> showed that homophobia was more present within the construction industry than on average.

75 per cent of respondents from the construction sector, Australia&rsquo;s most male-dominated industry and the third-largest national employer, indicated&nbsp;they had observed homophobia, compared to 56 per cent in other sectors.&nbsp;

[smartcode_project:default project_id=3459 project_image_fid=147569]

Lead author of the UNSW report Dr Galea said that while most participants felt there was a positive trajectory in workplace attitudes, many noted the sector was coming off a very low base.

&ldquo;The research found it was particularly challenging for those in junior positions, apprentices and FIFO workers to navigate the construction sector as an LGBTQ+ worker due to a lack of power and a desire to &lsquo;fit in&rsquo; to avoid anticipated negative responses,&rdquo; Dr Galea said.

One of the participants, who is in their 40s and identifies as queer, said: &ldquo;I&rsquo;m going to wait until I finish my apprenticeship and get a permanent position [before being more open about my identity] even though my role is considered permanent... I feel like I need people to see that I do a good job and I&rsquo;m an okay person.&rdquo;

<img alt="" height="423" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/lgbtq_construction_thumb_0.jpeg" width="740" />

Co-author Dr Jardine said the research found that industry leaders often lacked awareness of inclusive LGBT+ practices and in some cases failed to act on homophobic or discriminatory behaviours.

&ldquo;Despite many examples of good leadership, participants expressed frustration that some leaders turned a blind eye and failed to act or challenge homophobic behaviour and attitudes, especially from &lsquo;old school&rsquo; men,&rdquo; Dr Jardine said.

The report, which included recommendations for government and businesses, noted that this&nbsp;risks entrenching current behaviours and may lead to the loss of new talent.

Other recommendations to recalibrate industry behaviours and value the engagement of all workers included sexism, homophobia and transphobia education, publicly available inclusion policies, and a mental health service for LGBTQ+ tradies with qualified counsellors who understand the construction sector.

The full report, titled Building an LGBTQ+ inclusive workplace: A blueprint for Australia&rsquo;s construction industry is available to read <a href="https://www.humanrights.unsw.edu.au/research/lgbtq-workers-australian-construction-sector" target="_blank">here</a>.

Australian Human Rights Institute at UNSW released a new report, 'Building an LGBTQ+ inclusive workplace: A blueprint for Australia’s construction industry', on Tuesday

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