<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Joel Robinson

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

[smartcode_project:default project_id=111820 project_image_fid=344699]

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

[smartcode_project:default project_id=136442 project_image_fid=374084]

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

[smartcode_project:default project_id=134954 project_image_fid=4553]

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul>
	<li>Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li>10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li>An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li>Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li>No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li>Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li>Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul>
	<li>Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li>Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li>Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li>Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<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/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" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<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_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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Private investors or a syndicate of private investors may be interested in a Woolworths Service Station and adjoining development site listed for sale and offering a potential yield of around 7.5%.
The Woolworths Service Station stands at 258 Beenleigh-Redland Bay Road in <a target="_blank" href="/news">Cornubia</a>, a busy road between the Gold Coast, 54 kilometres to the south and the Brisbane CBD, 32 kilometres to the north.
It stands on a 6,031-square-metre site, with the corner portion of the site available for further development.
The service station is branded ‘Caltex Woolworths’ – one of 550 such petrol outlets located around the country.
It is leased by Woolworths on a 20-year lease, which expires in 2022.
The site is zoned for residential use but according to the investment memorandum prepared by Jones Lang LaSalle, it could be developed as a retail outlet subject to planning approval from Logan City Council.
The property brings in current net income of around $249,555 per annum with CPI annual increases capped at 4%.
The property is being marketed for sale by private treaty by Sam Hatcher, manager of Queensland retail investments at Jones Lang LaSalle, who expects it to sell for around $3.4 million, representing a yield of around 7.5%.
Refurbished 7-Eleven petrol stations have proved popular investments for self-managed super funds and retirees, with dozens selling on strong yields over the past 18 months.
In December last year<a href="https://www.propertyobserver.com.au/news/more-than-%2440-million-worth-of-7-eleven-service-stations-sold/2012121458473">,</a> <a href="https://www.propertyobserver.com.au/news/more-than-%2440-million-worth-of-7-eleven-service-stations-sold/2012121458473">$40 million worth of 7-Eleven service stations</a> sold at auction in Brisbane and Sydney, which achieved a 100% clearance rate and yields averaging 6.9% in Brisbane.
“Interest is expected from private investors with the opportunity to develop (subject to council approval) on the adjoining parcel,” says Hatcher.
“The opportunity also includes an adjoining site on the corner of Beenleigh-Redland Bay Road which could be used for future retail development (STCA).
“In addition, Fabcot Pty Ltd (Woolworths Development Company) have acquired a supermarket site approximately two kilometres from the service station further strengthening the desirability of this store to Woolworths Fuel,” says Hatcher.
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Woolworths service station to tempt private investors with 7.5% return

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The mining boom has pushed up demand for accommodation in hotels, motels and serviced apartments from those working on projects in the mining industry.
The chart below prepared by valuers at LandMark White shows how occupancy rates have risen more or less in line with rising mining investment over the last few years.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/lmwfeb6.gif"><img src="/images/stories/2013/02/lmwfeb6thumb.gif"></a>
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What the mining boom has done for hotel occupancy rates: Chart of the week

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Piercing studio Body Pleasure Piercing has agreed to pay around $1,900 per square metre per annum to rent a 71 square metre shop on Melbourne’s Flinders Lane.
 
The tenant has taken a three year lease on the ground floor shop at 289 Flinders Lane (Carlow House) at a net rental believed to be around $135,000 per annum. 
The deal was brokered by Savills Australia retail director, Michael Di Carlo, along with colleague Jeremy Marmur. 
The Flinders Lane shop is the first CBD lease for Surf Coast-based Body Pleasure Piercing, which currently operates stores in Geelong, Corio, and Prahran. 
"This has been a natural progression for a firm which has taken body piercing to a new level on the surf coast and will now introduce it to a new client base in a CBD location ideally suited to a company with strong links to the fashion industry, ‘’ says Di Carlo.
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Piercing studio rents space on Flinders Lane, Melbourne at $1,900 per square metre

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A four-bedroom house in Somerton Park, South Australia, was the top sale in the country last week.
<img src="/images/stories/2013/02/wilkinsonave.jpg" width="470" height="353" alt="wilkinsonave">
 The house at <a target="_blank" href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/12_wilkinson_avenue_somerton_park_sa_5044/10530717">12 Wilkinson Avenue, </a><a href="/news">Somerton Park</a> (pictured above), was sold for $3 million last week by Lew Toop from Toop &amp; Toop Real Estate.
Built in 2010 and within walking distance of the beach, the house has three bathrooms and in-ground swimming pool, along with a four-car garage plus workshop and further off-street parking. 
On the market for 17 days, the 495-square-metre house sits on 925 square metres of land. 
The property was last sold for $1.21 million in July 2008, for $805,000 in August 2005 and $450,000 in June 2000, according to RP Data.
Somerton Park is located 12 kilometres south-west of Adelaide in sits within the local government area of Holdfast Bay.
 
In the last 12 months in Somerton Park:
<ul>
<li>53 houses sold</li>
<li>$580,000 median sale price</li>
<li>95 average days on market 
</li>
</ul>
The top 10 sales in Australia last week were (RP Data):
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/12_wilkinson_avenue_somerton_park_sa_5044/10530717">12 Wilkinson Avenue, Somerton Park, SA, 5044</a>, four-bedroom house, sold at auction on January 31 by Toop &amp; Toop Goodwood for $3 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/945_barrenjoey_road_palm_beach_nsw_2108/5301020" target="_blank">945 Barrenjoey Road, Palm Beach, NSW, 2108</a>, five-bedroom house, sold on February 2 by Barrenjoey Properties Avalon for $2.159 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/49_brighton_avenue_toronto_nsw_2283/6910335" target="_blank">49 Brighton Avenue, Toronto, NSW, 2283</a>, four-bedroom house, sold at auction on January 31 by L J Hooker Toronto for $1.9 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/601/168_queenscliff_road_queenscliff_nsw_2096/16163917" target="_blank">601/168 Queenscliff Road, Queenscliff, NSW, 2096</a>, three-bedroom unit, sold on January 30 by McGrath Estate Agents for $1.6 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/3/4_young_street_paddington_nsw_2021/16161758" target="_blank">3/4 Young Street, Paddington, NSW, 2021</a>, three-bedroom unit, sold on January 31 by BresicWhitney Estate Agents Darlinghurst for $1.575 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/47_griffiths_street_fairlight_nsw_2094/2306239" target="_blank">47 Griffiths Street, Fairlight, NSW, 2094</a>, four-bedroom house, sold on January 30 by Cunninghams Property Balgowlah for $1.4 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/46_greenlaw_street_indooroopilly_qld_4068/5160112" target="_blank">46 Greenlaw Street, Indooroopilly, QLD, 4068</a>, five-bedroom house, sold at auction on February 2 by Karen Mortland Inner West Specialist for $1.39 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/46_greenlaw_street_indooroopilly_qld_4068/5160112" target="_blank">16 Hillview Street, Sans Souci, NSW, 2219</a>, four-bedroom house, sold at auction on February 2 by PRD Nationwide Woodward for $1.378 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/2_frederick_street_malvern_vic_3144/11577137" target="_blank">2 Frederick Street, Malvern, VIC, 3144</a>, three-bedroom house, sold on January 31 by Bennison Mackinnon Armadale for $1.36 million
<a href="https://www.propertyobserver.com.au/https://www.myrp.com.au/property-overview/58_curry_street_merewether_nsw_2291/4208613" target="_blank">58 Curry Street, Merewether, NSW, 2291</a>, four-bedroom house, sold on January 31 by PRD Nationwide Newcastle for $1.35 million
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Four-bedroom South Australian house tops week's sales: RP Data

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Sales of strata offices in the Melbourne CBD have begun strongly in 2013 after being flagged as a potentially attractive investment option last year.
Owner-occupiers and investors have been buyers of strata offices in the first two months of 2013.
The sale of 1 Elizabeth Street Melbourne for $940,000 by agents DTZ represented $4,921 per square meter and was purchased by YC Travel who intends on occupying the space.
This is in contrast to a previous sale in the building in 2011 for $800,000 for a full floor strata office.
The property had been on the market for over 12 months, but upon advice from DTZ, the previous owner removed the existing dental practice fit-out to reposition the property in the market.
“Within a week of the removal of the previous fit-out we received multiple enquiries, with the offers ranging from $840,000 up to the $940,000 negotiated sale price,” said DTZ agent Craig Hembrow.
Also sold in January was level three at 250 Queen Street.
The 420 square metre floor sold for $1.85 million through Kliger Wood Real Estate, representing around $4,404 per square meter.
Selling agent, Grant McKenzie says the sale represents an indicative yield of 7.46% based on the current rent for a whole floor in the building.
The property was sold with a lease in place consisting of $138,000 net rent per annum on a four year lease with a four year renewal option and 4% annual rental increases.
<a target="_blank" href="https://www.propertyobserver.com.au/office/small-business-snapping-up-melbourne-cbd-strata-offices-for-as-little-as-%2495000-dtz/2012121358460">Last year Property Observer reported</a> that strata office space in the Melbourne CBD was being acquired by small businesses as their business premises for as little as $95,000, according to property services group DTZ.
A 2012 Urbis Melbourne strata office market report calculated that there are some 1,800 strata units within the Melbourne CBD, with an average sales turnover approaching 130 units per annum – this represents 7% per cent of total stock.
The report notes that prior to 2000, the market was characterised by the creation of strata units from the conversion of older, conventional office buildings, with few purpose built facilities.
Sales completed towards the end of last year include an office-warehouse property on Ricketts Road in Mount Waverley, which sold through Crabtrees Real Estate sold for $1.26 million in November.
The site has a total building area of 695 square meters inclusive of 191 square meters of air-conditioned offices.
It was purchased by owner-occupiers and brickwork specialists, Byrne Construction Systems.
The property is part of a commercial strata development located within close proximity to the Monash Freeway.
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Melbourne CBD strata offices continue to be snapped up.  

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GPT is reportedly looking to sell its half-share in the super-regional Erina Fair Mall on the Central Coast, according to the Australian Financial Review.
The mall is considered one of the retail jewels on the central coast, about an hour's drive from Sydney.
<img alt="erina" height="314" width="470" src="/images/stories/2013/02/erina.jpg">
GPT’s half-share in the 113,700-square-metre centre was valued at $392.9 million as of June 30, 2012, and it will reportedly be seeking around $400 million.
It paid in excess of $80 million to acquire its half share of the mall in June 1992 from the Capita Statutory Fund.
The mall is jointly owned by the Australian Prime Property Fund Retail (APPRF) and is managed by Lend Lease.
It was built in 1987 and is the largest mall on the central coast.
<img alt="erina1" height="195" width="470" src="/images/stories/2013/02/erina1.jpg">
In 2003, GPT and APPRF spent a combined $210 million on a redevelopment of the centre including adding a Coles supermarket and creating a homewares precinct.
A further refurbishment was completed in 2009. 
The mall has an occupancy rate of 99.8%, with annual sales turnover of $626.9 million, putting it among the top 15 malls in Australia.
A spokesperson from GPT said it could not confirm the AFR report, but said GPT had advised the market last June of its strategy to “reweight the retail portfolio to 50% and increase the weighting in office and logistics &amp; business parks to 35% and 15% respectively".
“This is being done through a combination of organic means, actively managing our portfolio and through selective acquisitions.
“The GPT Group has implemented a number of initiatives in line with this strategy including the divestment of 50% interests in shopping centres at Woden in Canberra and Casuarina in Darwin, the divestment of Jindalee and Aspley Homemaker Centres in Brisbane and the acquisition of two logistics facilities in Sydney, one in Melbourne and an agreement to develop a new logistics facility for the Toll Group in Brisbane.
“GPT continues to review opportunities to deliver on our strategy,” says the spokesperson.
The cash injection from the sale of the mall will also firm up the GPT balance sheet as it considers a fresh bid for Australand’s commercial assets and investment business.
GPT's offer of $3 billion for Australand’s investment property portfolio and commercial and industrial business - but not its residential business - in mid-December 2012 was <a href="https://www.propertyobserver.com.au/australian-capital-territory/australand-rejects-gpt-offer/2012121358470" target="_blank">rejected by Australand.</a>
According to the AFR, the marketing and sale of the mall is being handled by Jones Lang LaSalle’s shopping centre specialist Simon Rooney.
The mall is tenanted by Myer, Kmart, Target, Big W, Best &amp; Less, Woolworths, Coles and Aldi plus over 300 specialty stores an eight screen Hoyts Cinema.
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GPT puts half-share in Erina Mall on Central Coast up for sale: Reports

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The hype was in hyper-drive following the annual auction orgy on the Gold Coast last week. 
Brisbane’s metropolitan newspaper declared that the property market had turned, based on the evidence from the two-day auction event. The clearance rate was, it said, “impressive”. The Herald-Sun in Melbourne said the tough times in the property market were over. 
Fairly big statements, given that little more half the properties sold – and many went at bargain-basement prices. 
Ray White’s annual exercise in self-aggrandisement is marketed as The Event. It’s about as valid as Anthony Mundine continuing to call himself The Man. But when hype is your business, the results don’t dilute the spin. 
The hysteria was so contagious that it was impossible to distinguish the “news article” in The Courier-Mail and the PR piece on the Ray White website – the level of gush was pretty much the same in both. 
That is, of course, an indictment on The Courier-Mail, which bows down before anyone who directs (vendor-paid) auction advertising its way. I’m surprised it didn’t describe savvy investors snapping up luxury apartments in a hot market. 
So what really happened? Essentially, mortgagees and other battered vendors liquidated some stock. The bottom-feeders came out, attracted by the stench of desperation, and properties sold for a fraction of their former value. The one thing The Courier-Mail got right was this: “Bargain hunters were out in force.” 
At the end of the two days, the clearance rate claimed by the agents was just 58%. Not even the Real Estate Institute of Victoria would parade that as evidence of the good times returning. 
The estimated size of the crowd varied from “more than 500” in the newspapers to the “more than 3,000” claimed by the agent. 
One mortgagee sale resulted in a property purchased for $2 million in 2002 selling for just $851,000. Terrible result for the former owners and their lenders, but the agent still gets well paid. Another property with a claimed value of $2.5 million sold for $1,255,000. 
One newspaper report said: “While all the properties sold well under their peaks, realistic vendors endured that sales were constant and many properties sold above the reserve, according to Andrew Bell, chief executive of Ray White Surfers Paradise.” 
Wow, some actually achieved the reserve – remembering that the reserve price is usually regarded as the absolute minimum the vendor will accept – NOT the result the seller is seeking. Evidently, many vendors accepted less than the absolute minimum. Big win for everyone, except the vendors. 
So what does it all mean? The Gold Coast, after five years in real estate hell, is still trawling the bottom of the cycle, and the only people out buying are the bargain-hunters. 
I continue to urge caution to property investors. Be wary of being enticed by what appear to be attractively low prices. Those prices have dropped for a reason. 
The Courier-Mail quoted one buyer as saying that he bought units sight-unseen because the prices appeared “fairly cheap”. 
You have to think beyond the bargain price. The key question is: does this market and this product have a strong future? 
If you’re satisfied it does, then knock yourself out. But don’t simply be seduced by the hype and the appearance of a bargain.
Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" rel="nofollow" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" rel="nofollow" target="_blank">followed on Twitter</a>.
To help find the next Gladstone-like property investment hotspot, <a target="_blank" href="/news">sign up for Terry's free webinar on Tuesday, February 12 at 12.30.</a>
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Gold Coast mega auction results more battered than bullish: Terry Ryder

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The A-REIT sector showed a total return of 33% for 2012, outperforming shares, which returned 20% over the same period.
Drivers of this outperformance included reducing debt servicing costs and an improved capital position, strong capital inflows to the sector and a surge in merger and acquisition activity in the second half of the year.
An average sector earnings yield of 7.2% and an average payout ratio of approximately 81% underline the strong income proposition offered by A-REITs.
Debt servicing costs for the larger A-REITs have reduced by 1% over the past year to approximately 5.5%. This will benefit those A-REITs with interest rate hedges expiring this year and those who can fund earnings accretive property acquisitions with debt.
With A-REIT sector distribution yields around 6% and Australian 10 year government bond yields currently around 3.5%, a significant yield premium of 2.5% exists.
Share buy backs had been a common capital management strategy in the first half of 2012 as A-REIT prices traded at a significant discount to their asset backing. However, in the final quarter of 2012, over $600 million of equity was raised including $400 million by Goodman Group and $100 million by Charter Hall Retail.
In addition, both the 360 Capital Industrial Fund and the Shopping Centres Australasia Property Group (the Woolworths property offshoot), which raised $472 million, were listed as A-REITs. Excluding Westfield Group, the A-REIT sector discount to asset backing has closed from 10% this time last year to a 5% premium.
At the end of 2012, GPT made an unsolicited bid to acquire the non-residential property and corporate assets of Australand. While the bid was rejected, the principal shareholders of Australand have indicated their willingness to exit their investment.
Mirvac has also expressed interest in acquiring Australand. It is anticipated that Australand will be acquired this year. The benefits of increased scale will a driver of corporate activity. Smaller A-REITs without the capacity to grow their balance sheets without external capital are likely to be among the targets.
While rent growth is likely to be subdued in 2013, development and redevelopment pipelines are likely to boost earnings growth. Continued low interest rates, the prospect of corporate activity, and the relatively high yield from A-REITs compared to equities and fixed interest investments are expected to be factors contributing to another positive total return in 2013.
Mark Wist is senior asset consultant at <a href="https://www.atchison.com.au/" title="Atchison Consultants" target="_blank" rel="nofollow">Atchison Consultants</a>.
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Another positive return for A-REITs in 2013 after strong 2012: Mark Wist

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The number of Sydney residential properties listed for sale in January fell by 6% following a 21.7% fall in December and are now at their lowest level since April 2010, according to figures compiled by SQM Research. 
In total there are 23,467 Sydney properties listed for sale compared with 31,863 two months ago with listings down 13.1% over the past 12 months. 
SQM Research director Louis Christopher says seasonality has an impact on January figures – he expects a rise in listings in February as the market gets into full swing – but says year-on-year figures show the market is still down. 
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2013/02/sqmfeb4.gif"><img src="/images/stories/2013/02/sqmfeb4thumb.gif"></a>
Notwithstanding the impact of seasonality, Christopher says the fall in Sydney listings in January is both noteworthy and surprising; SQM had been expecting a bounce in listings in the first month of the year. 
“We are saying the market bottomed out in the December quarter,” Christopher tells Property Observer.
SQM recorded a 1.9% fall nationally over January with 335,429 properties listed for sale compared with 341,784 in December. Listing are down 2.9% on a year ago when there were 345,296 listings.
All capital city residential listings declined over January with Melbourne listings down 2.5%. 
However, Melbourne is the only market where stock on market is up compared to a year ago. 
There are 40,807 properties listed for sale in Melbourne compared with 40,076 a year ago. 
Christopher says people should not read too much into the Melbourne decline in January. 
“There is still an elevated amount of stock on market. Signs are more promising, but a lot of stock needs to be absorbed, for there to be price pressure,” says Christopher.
Year-on-year, Darwin residential listings have fallen by 15% to just over 1,000 properties for sale, with strong annual declines also recorded for Adelaide (7.1%) 
Both Hobart and Adelaide recorded 4.2% falls over January, but Christopher says he is not expecting any major recovery in these markets. 
“There is elevated stock on market that must be absorbed in Hobart and Adelaide,” says Christopher. 
“The bottom may be coming in but overall they are depressed,”
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Sydney property listings fall by 'surprising' 6% in January to lowest level since April 2010: SQM

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The number of dwellings approved for construction fell 4.4% in December in seasonally adjusted terms, following a rise of 3.4% in the previous month.
Over the calendar year, dwelling approvals are up 9.3% with units up 31.7% but houses down 3.8%.
Westpac says the fall in December building approvals provided a weaker than expected finish to 2012 with market expectations of a 1% gain in December and Westpac's forecasting a 1% decline.
Approvals for private sector houses fell 3.3% in December while unit approvals fell 5.4%.
The fall in private sector house approvals was led by Victoria (-12.7%) and Western Australia (-2.2%), but approvals rose in South Australia (9%), Queensland (5.2%) and New South Wales (1.2%).
South Australia, Queensland and NSW all have state incentives favouring first-home buying buying or building a new home or apartment.
Westpac says the sharp drop in private sector house approvals concentrated in Victoria, suggests the December figures should be treated with some caution.
"The significance of the weak December approvals reading hinges on how the Victoria numbers are interpreted. 
"On the one hand there may have been a significant policy-induced 'hole' in approvals in the month.
"The Victoria state government changed its incentives for first-home buyers in 2012 from a grant of up to $13,000 to significant stamp duty concessions (both only available on properties up to $600,000).
"The gap may have encouraged many to delay building, particularly late in the year. 
"However, this explanation doesn't quite hold together - state figures on housing finance approvals suggest FHB activity held up in Victoria late last year, despite the transition.
Other indicators – consumer sentiment towards housing and house price expectations – did fall away in Vic compared to other states. 
"Adding to the puzzle is the tendency for upward revisions to approvals estimates due to late arriving data - this may be more of a factor around the Dec-Jan period.
"However, the transition period was not smooth with the grant phasing out at the end of June and stamp duty concessions coming into effect in January.
"The gap may have encouraged many to delay building, particularly late in the year," says Westpac.
Across both house and units, dwelling approvals decreased in December in Tasmania (-21.8%), Victoria (-12.3%) and New South Wales (-1.3%) but increased Queensland (7.9%), South Australia (1.7%) and Western Australia (1.3%) in seasonally adjusted terms.
The value of total building approved fell 1.9% in December, in seasonally adjusted terms, and has fallen for three months.
The value of residential building fell 3% while non-residential building rose 0.1%
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