<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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House building activity declined at its steepest rate in three months to December amid weaker new orders as the overall construction sector continued to contract – albeit at a slower rate – for the 31st consecutive month.
The seasonally adjusted Australian Industry Group/ Housing Industry Association Australian (AIG/HIA) Performance of Construction Index (PCI) increased by 1.8 points in December to 38.8, still well below the 50 points level that separates expansion from contraction.
The December index update shows that house building conditions weakened, with the sector’s activity sub-index falling by 6.1 points to 34.7 to signal a sharper rate of contraction in December.
<img src="/images/stories/2013/01/hiajan8.gif">
New orders in the house building sector declined by four points in December to 33.9, compared with new orders index increasing by 8.3 points to 42.6 across all sectors of the construction industry.
The increased rate of contraction reflected a steeper decline in new orders, “which is of concern for the sector’s outlook”, noted the AIG and HIA.
Apartment building activity was also more subdued in December, with the sub-index declining by 2.4 points in December to 40.1.
In contrast, commercial construction activity contracted at its slowest pace in just over two years, while the rate of decline in engineering construction again eased during the month.
AIG director of public policy Peter Burn says construction activity ended the year largely as it began it, “deeply entrenched in negative territory”.
While he says there are some signs of more positive conditions for 2013, he describes as “worrying” the steeper decline in new orders within the house building sector, with “low consumer confidence continuing to weigh heavily on demand”.
HIA chief economist Harley Dale says the December update for housing is disappointing.
“Detached house building represents well over 60% of all residential construction activity in Australia, and the December 2012 Australian PCI points to a steeper decline in activity and new orders, not to mention employment,” he says.
“That is a concerning update, which aligns with other indicators suggesting a deterioration in pre-existing weak conditions for detached house building in the latter part of last year.
“Activity in the apartments sector only lost a modest amount of the ground gained in November while new orders contracted at a slower pace, but monthly iterations still revolve around clear contractionary conditions.
“All up, if policy makers were hoping the first housing update out in 2013 would deliver a signal of current policy settings boosting the chance of a new home building recovery, they’re going to have to keep hoping," says Dale.
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Dwelling construction activity continues to slump in December quarter: AIG/HIA

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Retailers are enjoying strong Boxing Day sales trading with the Australian Retailers Association predicting its estimates of $14.8 billion in spending from 26 December to 15 January will be met.
Most of this spending came immediately after Christmas with the Australian National Retailers Association estimating $1.8 billion was spent on Boxing Day itself, with $5.7 billion spent in the first week of the sales. However, the association does not have results to confirm its estimates yet.
It comes as the NAB Online Retail Sales Index for November recorded surges ahead of Christmas, rising to 241 points from 209 points in October, but year-on-year growth only edged higher to 27%.
In the 12 months to November 2012, Australians spent around $12.6 billion on online retail. This level is equivalent to 5.7% of the scale of traditional bricks and mortar retail (excluding cafés, restaurants and takeaway food) for the year to October 2012.
November is the peak month for online retail sales – with consumers allowing adequate time for delivery of their purchases prior to Christmas.
Alan Oster, chief economist at NAB, says as the online market matures, it will be interesting to observe whether consumers have greater confidence to make online purchases later in the month.
ANRA chief executive Margy Osmond says post-Christmas sales got off to a great start on Boxing Day with large numbers flocking to stores and shopping online.
“Christmas Day was one of the biggest online shopping days as people looked to cash in their Christmas present vouchers.”
Russell Zimmerman, executive director of the Australian Retailers Association, was also positive about the sales period and said the few days directly after Christmas and Boxing Day were “very strong and solid”, although sales were starting to slow down now.
“The Boxing Day sales were very big and the pre-Boxing Day sales by those retailers that were online worked very well,” he says.
The ARA predicted a 3.9% increase on last year’s post-Boxing Day sales and Zimmerman says he thinks that will be pretty close to the mark.
“Some things, like men’s clothing, are doing very well in post-Christmas sales as I suspect men have not been looked after over the last couple of years but it’s got to the point they have to buy new clothes for work,” Zimmerman says.
He says food was also a very strong performer for retailers in the sales period.
“We projected about $6 billion of post-Christmas food sales in the period until January 15 and I think that is pretty much on target to come through,” he says.
However, Zimmerman says while retailers are happy with the sales boost, they would have liked more.
“Retailers would have liked to have seen a much bigger increase. We predicted 3.9% increase in spending and $41 billion spent in in pre-Christmas sales this year, 10 years ago we used to get increases of 5% to 6% but those days have gone for a long while yet,” he says.
“If this hot weather keeps up, that will slow down some of the sales moving into the next few days as heat has an interesting effect on people going out and buying – if it gets too hot they don’t leave home.”
The strong performance comes after a promising start in 2011 dwindled to a flat result overall for retail, with the latest Australian Industry Group/Commonwealth Bank Australian Performance of Services Index falling 3.9 points to 43.2 in December.
Sub-sectors linked to household spending including retail trade and accommodation, cafes and restaurants all reported declines in activity in December.
"At the end of what was a tough year for the services sector, consumer caution, poor sentiment and the high Australian dollar all continued to weigh heavily on sales to households during the Christmas trading peak,” AIG chief executive Innes Willox says.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Australian retailers buoyed by post-Christmas sales

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We hear the term "guarantee" bantered around a bit within the property management world.  We hear prospective tenants regularly offer to have their mum, dad or guardian go as a guarantee for them at the time of applying for a rental property.
And many property managers believe by taking the guarantee they are further protecting their owner should the tenancy fall into arrears or should there be damage at the conclusion of the tenancy.
But sadly this is not correct. The correct facts are:
<ul>
<li>If you take a guarantee, you are unable to receive a bond.</li>
</ul>
<ul>
<li>And the guarantee is only responsible to guarantee the amount that is equal to the bond amount.</li>
</ul>
So now I am sure you are seeing the potential problems.
A bond should be taken on every single occasion, unless instructed by the owner of the property otherwise (and you would confirm their instructions in writing of this request).
In situations where parents or guardians are wishing to assist prospective tenants, instead of discussing guarantees (which I know you see now are not the wise option), have those people complete a tenancy application form.
Process their application and present all the applications to the owner for consideration. Yes, I know they won’t be residing at the property, and that is OK (and it's not sub-letting, for anyone thinking it). But by having them form part of to the tenancy agreement, they are now equally responsible for the term of the tenancy. They are responsible for the condition, rental payments and for any potential loss in excess of the bond amount.
Leah Calnan is the director of <a href="https://www.metropm.com.au/" title="Metro Property Management homepage" target="_blank">Metro Property Management</a> in Victoria and is the chairwoman of the REIV Property Management Chapter.
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leahcalnan-pwE6GD6KY9

Why landlords should take a bond from every single tenant

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What is “growth”?
So <country-region>Australia</country-region> is forecast to have growth this year. That’s great! But what does that actually mean? Well, the biggest number of all in economics is GDP – the gross domestic product, which, as the name suggests is the measure of all of a country’s income.
The forecasters expect <country-region>China</country-region> to continue its blistering rate of growth. The great news for <country-region>Australia</country-region>, despite the forecasts of relatively modest growth levels, is that <country-region>Australia</country-region> has not had a recessionary period for more than two decades. A recession is usually defined as two successive quarters of negative growth.
Over time as a nation we have consistently been becoming wealthier and average household income has far outpaced inflation over a long period of time.
What GDP actually includes
The measurement of <country-region>Australia</country-region>’s GDP includes its total income and its total spending including all goods and services.
Of course, the number can never be completely accurate for some transactions officially never take place! For example, a drug dealer won’t be declaring his or her sales to the Australian Taxation Office.
GDP also attempts to avoid double-counting. The example of a car is often used: when calculating GDP we don’t want to include the components of the car as well as the final sales price of the vehicle. What we really want to know is the GDP on a value-add basis.
So a GDP figure will never be perfect, but it’s the best we have got. And it is the trend in GDP, the percentage movements from year to year, which interests economists: are we growing, stagnating or going backwards?
It is worth taking note in the financial press of whether the figure quoted is real of nominal GDP, for real GDP growth is a measurement which strips out inflation.
The individual segments of GDP
The four segments of GDP are:
<ul>
<li>Consumption</li>
<li>Investment</li>
<li>Government spending</li>
<li>Net exports</li>
</ul>
Government spending could account for less than 20% of its GDP, but a number of European countries have national health services that are funded by governments and thus the percentage can be much higher (which is bringing its own problems in European in the form of unsustainable government debt levels).
In countries such as the <country-region>US</country-region> total spending can be more than 100% of GDP which on the face of it seems impossible, but is in fact possible due to goods being imported from overseas.
Mining boom
One major trend that we have seen in <country-region>Australia</country-region> is a phenomenal boom in mining capital investment. Over the next year or two we are expecting to see mining investment begin to fall as the construction stage of the major resources projects peaks and we shift towards the production phase.
A major challenge for <country-region>Australia</country-region> is what will fill the hole left by the incredible boom in mining investment. It is hoped that investment in housing and construction will fill some of the hole but that doesn’t seem to have really taken much effect as yet.
A consequence of this is that we are likely to see a prolonged period of low interest rates as the Reserve Bank aims to stimulate the other sectors of the economy to plug the mining investment gap.
There are some other limitations to the GDP measurement. One is that in does not take account of the level of inequality of a country so GDP may be growing but whether or not the wealth flows down to the population with great inequality is not considered. 
 
<hr class="system-pagebreak">
 
What next for our investment markets?
It might seem unusual given the amount of anxiety around at present but there is a consensus that now is likely to be a good time for owners of stocks. Britain, the US and Australia all saw positive returns in 2012, and this is forecast by most commentators to continue.
Why is this? One reason is that interest rates are so low that savings accounts, particularly in the <country-region>US</country-region> and in the <country-region>UK</country-region>, are yielding minimal or negative real returns. Thus increasingly investors are forced to consider other alternatives. Company shares are often yielding dividends which are far in excess of the return of fixed-income investments at present which is seeing a move to the risk or growth asset classes.
There also is some fear that bonds could be well overvalued at present on a global level, and as and when interest rates are ratcheted up there could be a major correction. This might seem esoteric to you but if you don’t self-manage your superannuation do you know where your super fund manager has invested your pension?
As for property markets, historically lower interest rates have shown a strong correlation with price appreciation. The major banks have clawed back a fair chunk of the recently delivered interest rate cuts in order to cover funding costs, but mortgage rates have steadily dropped with the cash rate to historically very cheap levels.
The governor of the Reserve Bank in Australia has warned Australians that a return to very strong property price growth would be imprudent, which is a sure sign that there is concern that low interest rates could fuel a return to growth. Most forecasting houses are predicting a return to moderate property price growth in 2013.
Property price growth needs population growth and growing wealth
Through 2010 and 2011 I was lucky enough to be able to travel 26,000 kilometres around <country-region>Australia</country-region> and then to a couple of dozen countries across the world, which proved extremely interesting as I was able to compare dozens of real estate markets.
What is evident is that for property prices to grow, a country often needs to see population growth and to be growing its wealth.
I went to see the famous Sphinx and the pyramids, one of the seven ancient wonders of the world. The city of <city>Cairo</city> was quite amazing, it now comprising around a quarter of <country-region>Egypt</country-region>’s population with around 15 million inhabitants. But the population growth has not triggered great property price growth because the country has been through a revolution and the economy is in disarray.
When I finally made it to <city>London</city> after 15 months on the road, I was surprised to see that house prices in <city>London</city> are higher than they have ever been. What of the great crash everyone has been harping on about?
Strangely, although property prices in the <country-region>UK</country-region> notionally fell sharply through the financial crisis, <city>London</city> has pushed on to ever greater heights. Demographic shifts have seen more Brits and immigrants moving to the south-east of <country-region>England</country-region> which is in the process of causing a drastic housing shortage in that part of the country.
And while <country-region>Britain</country-region> seems to be struggling in terms of its economy, the pain has not been felt evenly. Developed countries used to be known for their industrial output and manufacturing, but today it is the intellectual expertise in areas such as financial services which are creating wealth. <city>London</city>’s growth into becoming Europe’s premier financial centre is <country-region>Britain</country-region>’s main success story of recent decades.
In <country-region>Australia</country-region> we do live in a lucky country. Not only do we have a population which is set to boom over the next few decades, our government also presides over an economy benefiting from a mining boom. And also cities such as Melbourne and Sydney are becoming major financial centres.
Sure, we’ll face some challenges, but then if you look back through the financial press over the decades you will discover that in fact, this is always and everywhere the case.
<img style="margin: 5px; float: left;" src="/images/stories/2012/12/wargentbook.jpg">
Pete Wargent holds a range of finance and property qualifications and is the author of <a href="https://petewargent.blogspot.com.au/" target="_blank">Get a Financial Grip – a simple plan for financial freedom.</a>
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pwargent-M4siyDbqQY

What Australia's GDP growth in 2013 will mean for property investors

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The Bank of Scotland International has offloaded $200 million worth of corporate and project debt in the listed property company Becton Group.
The buyers are understood to be a consortium of Goldman Sachs and the United States hedge fund Fortress Investment Group.
Becton has a market capitalisation of just $3.4 million and has been looking for a way to stabilise its longer-term structure.
But the latest scenario suggests a likely tussle between Becton's incoming lenders and the company's major shareholders including Telopea Capital, Mariner Corporation and Titanium Property Investment.
“We have sold our holdings in Becton,” a spokeswoman for BOS International told the Austraian Financial Review on Friday, noting that settlement of the transaction was imminent.
But Becton is still not in a position to be expansive on what had happened or what the consequences could following its securing a trading halt on Friday January 4, 2013, noting it would update investors in “due course”.
“The trading halt is being sought in relation to incomplete information which has come to Becton’s attention regarding the possible sale by Becton’s corporate debt provider of the debt owned by Becton to that debt provider,” the company said in a statement to the Australian Securities Exchange on Friday.
The Becton loans are held by the local subsidiary of Lloyds Banking Group, known as BOSI.
The debt parcel being sold includes secured debt, and a separate tranche relating to the Divercity property development in Sydney’s Waterloo.
The AFR speculated the corporate debt was likely to be sold at a substantial discount to its face value.
The sale of the debt may also trigger further restructuring at Becton, including possible privatisation.
“We embrace the change because it means the company can have a robust discussion about the future,” Mariner boss Darren Olney-Fraser told the AFR.
He has previously called BOSI as a intransigent debt holder. 
Following the global financial crisis, Lloyds has been reducing its non-core exposures in Australasia in the past few years. 
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jchancellor-FAypfDUnLy

Becton remains in ASX trading halt

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1. Melbourne may be problematic, but regional Victoria has good prospects: Terry Ryder

Hotspotting.com.au director Terry Ryder says that while the Melbourne market is imploding, there are “good prospects for investors <a href="https://www.propertyobserver.com.au/victoria/melbourne-property-market-grim-in-2013-but-there-s-more-to-victoria-than-melbourne-terry-ryder/2012121758531" target="_blank">beyond the capital city</a>”. Ryder picks <a href="/news">Bendigo </a>and <a href="/news">Ballarat </a>as locations that more investors should consider, describing them as strong and dependable. His other picks are in the west of the state, <a href="/news">Warrnambool</a> and <a href="/news">Mildura</a>, which offer similar qualities to the two former gold-rush towns and have “diverse economies, plenty of infrastructure spending and affordable real estate”.

2. Continue to be cautious about investing in prestige property: Louis Christopher

In SQM Research’s 2012-13 Boom and Bust report, managing director Louis Christopher urged caution about investing at the prestige end of the market, “where rental vacancy rates are higher, and transaction and holding costs are far higher”. Christopher says that from a purely investment perspective, it makes far more sense to acquire and hold three properties at $500,000 each, instead of one property at $1.5 million.

3. Modest growth in all capital city markets, with Perth and Sydney to outperform: Richard Wakelin

Richard Wakelin, director of Wakelin Property Advisory, anticipates price growth across all the major mainland capital city markets in 2013, with Sydney and Perth the best placed. He expects Sydney property prices to rise by between 4% and 5% in 2013, with its low vacancy rate and high rental costs “a signal for renters and investors to buy property”. Wakelin says Perth prices could rise 5% to 6% in 2013 despite much of WA’s booming resource-driven economy bypassing Perth.  “Nevertheless, extreme tightness in the rental market appears to be overflowing into greater demand from first-home buyers. If this continues, Perth may see reasonably strong growth in 2013,” he says.

4. Expect more competition for properties at the lower end of rental market: Margaret Lomas

Margaret Lomas expects there to be increasing competition among investors for properties at the lower end of the market that are popular with renters. “You are going to have more competition for those types of properties … in the early and mid-part of 2013,” she tells Realestatetalk.com.au.


<hr class="system-pagebreak">
5. Melbourne, Adelaide, Darwin and Canberra to consolidate in 2013: Aaron Maskrey 

Aaron Maskrey, research director at PRDnationwide, says Melbourne should continue its period of consolidation after recently experiencing a peak in its market cycle. “Like all large markets, there will always be pockets of areas that will still hold value, and this should be the case with most inner-Melbourne suburbs. Due to a somewhat balance between demand and supply with Adelaide, expect its market to remain fairly consistent, with only marginal increases in value during 2013. Canberra’s market remains fairly tight and values are expected to hold firm over the next 12 months.  Darwin has experienced a sustained period of high growth in 2012, pushing the market to unaffordable levels. The coming year should see growth in prices reach a plateau, as its market consolidates,” he says.

6. Consider the outer ring of most capital cities: Louis Christopher

SQM Research’s Louis Christopher favours Sydney’s west and Sydney’s south-west to continue to perform strongly in 2013. “Indeed, we favour the outer rings of most capital cities. In its simplest terms, the reason is that these areas have been underbuilt for some time now, yet demand for affordable accommodation is growing rapidly,” says Christopher in SQM Research's latest Boom and Bust report.
7. Remain risk-averse in 2013 and reduce your debt: Pete Wargent
Property investment writer Pete Wargent says he will use debt moderately in 2013 to add to his property portfolio. Wargent writes that the loan-to-value ratio (LVR) on his UK property portfolio is under 50%, but a little higher on his Australian property portfolio, but he is steadily reducing it. “Yes, a higher debt-to-equity ratio magnifies returns, but at what cost? The cost is risk. It was common for promoters of UK 'property clubs' to talk of 'being worth £2 million' in property up until around 2007. But where they were investing in far-flung and remote properties using 100% mortgages, the only thing they are likely to be worth today is being lynched by angry investors who were duped into doing the same,” says Wargent. He will look to add two properties to his portfolio over the next few months, but “will look to use cash rather than drawing equity and will use 25-35% deposits (one in south-east England as a long-term currency play and one in Australia)”.  “Of course I could be more aggressive in order to leverage up and chase greater returns … but don’t forget that I am, after all, an accountant. After years of boring-but-safe and risk-averse investment I will remain disinclined to take on greater risk,” he says.
8. Look to the “battlefield suburbs for price growth: Angus Raine
Raine and Horne CEO Angus Raine expects 2013 to be a challenging one for the property market, with the possibility that a “smattering of suburbs across Australia could enjoy some capital growth of between 5.5% and 7%”. Raine says investors should be looking at the “battlefield suburbs’, where first home buyers are set to shape up to investors”. “In other words, St Marys in Sydney, Adelaide’s Semaphore, as well as North Melbourne, Ascot Vale, Brunswick and Footscray in Melbourne are set to benefit as investors compete with first timers for quality homes. Across the continent, it’s the ‘forgotten suburbs’ of inner Perth such as Embleton and Ashfield that will enjoy some growth as investors and first time buyers muscle up,” he says.
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Eight property pointers for buying or selling in 2013

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Back at the desk or still on holidays?
But even before the 2012 Christmas decorations came down – based on the 12 days-after tradition –Coles and Woolworths were spruiking their Easter egg and hot cross bun offerings.
Almost no room in there for catching one's breath, let alone contemplation as the zealous marketeers seek to direct the masses.
I hope some of us got the chance over the past fortnight to turn off the Twitter, tune into the family conversations in between cricket sessions, and possibly even dive into a good book. And not necessarily one on property investment.
Typically I reckon everyone returns from their summer Christmas break, hot sand washed away from between the toes, brimming with enthusiasm and hope.
But this year, and even ignoring the prospect of an early Easter, I suspect there's a little more latent anxiety in the mix as we start making plans.
I suspect given the world of the never-ending great property unknowns, 2013 will be a heightened version of years past. There will be the good, the bad and the ugly - all depending on your own outlook offcourse. 
Ever more forecasts.
Ever more data.
And of course Property Observer casting some critical comment over it all.
Property Observer's overall outlook is neither bullish or bearish. We simply seek, in the first instance, to report how it is across Australia and occasionally the world. And then we let many voices analyse and comment on what's out there.
The reality is that there are many property markets within our capital cities and regions – all with their individual momentum, upwards, downwards or stagnating.
And there are also the overarching national and international influences.
Who really knows about the international ones, especially since the 2007 toxic mortgage debt occurance, but on the national front, there's little doubt this year’s federal election will have an impact – before and after – one way or another.
Most likely introducing an element of hesitation. Or rather perhaps compounding the already existing inertia. 
The most interesting property statistic to be issued over the break was that Australian home values have fallen for the second year in a row, marking the worst run for the national property market in 16 years.
The slight easing occurred despite the Reserve Bank of Australia slashing the cash interest rate six times in little more than a year.
The conclusion to be drawn is that the cheaper credit is tempering the property downturn rather than kick-starting any across the board recovery.
It was RP Data-Rismark that reported that capital city dwelling values fell 0.4% in 2012, with the decline significantly lower than the 3.8% drop in 2011.
‘‘This is the first time we’ve had back-to-back value declines for an index that goes back to 1996,’’ said RP Data senior research analyst Cameron Kusher.
‘‘It is clear that the previous strong value growth conditions to which many home owners became accustomed to in recent years are well and truly behind us.’’
The median price of a dwelling across the country is $483,000.
Which, as Kusher points out, is a big commitment. 
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Federal election another cause for timidness as national dwelling median hovers around its challenging $483,000 hurdle

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The Reserve Bank needs to cut the cash rate by a large amount in one big hit to stimulate a recovery in the housing market, according to Residex chief executive John Edwards.
On the back of November Residex housing market data, which shows many markets in negative territory or treading water, Edwards says the Reserve Bank should look to cut the cash rate by 75 basis points in February.
“Should the RBA continue along the road of small reductions, there is a real risk that it will need to reduce the cash rate to 2% or less.
“However, should it move to a much more significant reduction in February (of around 0.75 percentage points), this would probably achieve its objectives and bring the cycle of small rate adjustments to an end.
“The outcome would be the removal of constant press about the likely poor outcome as the resources boom comes to an end.
“Importantly, it would be probably sufficient to stimulate consumer spending and encourage small business investment. In all probability, this outcome would lead to a much improved level of consumer sentiment,” he says.
Edwards says housing markets had done better in 2012 compared to the previous year, but had failed to keep pace with inflation.
“The majority of cities have produced negative real rates of growth (after taking inflation into account). In fact, the real growth was a -2.8% in housing while for units it was -1.23%,” says Edwards.
Speaking to Peter Switzer on Sky Business last week, he said the vast majority of capital cities in November provided negative growth.
And he expressed concern at the drop in Perth house prices in November (down 1.39%), which he said indicated that resources activity was slowing much faster in Perth.
“We can see it in the numbers,” he says.
Edwards said that in the past smaller rate cuts had made an impact because there was both better consumer sentiment and affordable housing.
He said the current small 25-basis-point rate cuts were part of a circle where the consumer heard bad press about the economy at the rate cut as well as news about the resources boom slowing and news on the international economy.
He says the effect is that the 25-basis-points cuts constantly reinforce the view of the consumer that there are problems.
“Poor consumer sentiment is having a negative impact on things,” he said.
Despite his concerns, Edwards says that “courageous” people willing to buy now will do well if they can seek out bargains.
Edwards says he himself is in the market for renovation bargains.
Despite the poor performance of the market in 2012 in real terms, Edwards says he expects all adjustments in house prices since the GFC to be “recovered in the medium term, and prices are anticipated to be equal to or better than before the GFC”.
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Big 75-basis-point RBA cash rate cut needed in February to override consumer sentiment: John Edwards

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Listed commercial property group Dexus has acquired a 25% stake in 225 George Street, the iconic 44 storey Sydney office tower, more commonly known as Grosvenor Place, for $271 million, as part of a $503.7 million portfolio investment just before Christmas.
It follows the successful sale of Dexus’s US industrial portfolio earlier this week, the proceedings used to fund the office investments.
Apart from the Harry Seidler-designed tower, Dexus also acquired a 50% interest in 2 and 4 Dawn Fraser Avenue, Sydney Olympic Park - two adjoining seven level A-Grade office towers opposite the Sydney Olympic Park for $82.7 million and made a joint (50/50) purchase of 39 Martin Place, a 20 level B-Grade property located adjacent to Martin Place railway station, Sydney with the Dexus Wholesale Property Fund (DWPF) for $149.75 million.
The portfolio was acquired in an off-market transaction from the Direct Property Investment Fund (DPIF), a wholesale office fund, managed by the property division of Colonial First State Global Asset Management.
DPIF is a closed-end fund and is currently in its wind-down phase.
Colonial First State had acquired its 25% interest in Grosvenor Place in 2003, which was valued at $273.8 million in June this year.
The primary tenants are Deloitte, which lease 26% of the building until 2023, law firms Ashurst (16% until 2015) and Norton Rose (11% until 2019) and McCann World Group.
The building was opened in 1988 and won a number of architectural awards for its unique design, including the two large crescent shaped floor plates.
“We are pleased to be able to announce the reinvestment of a significant portion of the sale proceeds from the US industrial portfolio into quality Australian office assets in one of our core office markets. The unique off-market nature of this transaction and our team’s ability to confidentially execute on an accelerated timetable concurrently with the US sale, reinforces our strength in the origination and execution of deals,” says Darren Steinberg, CEO of Dexus.
Steinberg says the new acquisitions “enhances the quality and diversification” of its office portfolio and is a key milestone in its strategy of delivering superior risk-adjusted returns from high quality Australian real estate primarily comprising CBD office buildings.
“DEXUS now holds interests in four out of seven premium office buildings in the Sydney market,” he says.
The other premium Sydney investments include 1 Bligh Street and 201-217 Elizabeth Street.
The purchase of the Sydney portfolio increases Dexus’s footprint in the Sydney office market from 365,075 square metres to 403,599 square metres giving it around 8% of the market
Grosvenor Place comprises 84,527 square metres of office accommodation (86% occupancy by income) over 44 levels together with 984 square metres of retail space (100% occupancy by income), parking for 566 cars and a three storey lobby.
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Dexus pays $271 million for 25% of Harry Seidler-designed Grosvenor Place in Sydney CBD

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With Christmas around the corner, Australian households have stopped worrying about electricity bills, and instead have turned their homes into garish beacons of light, some of them surely visible from the moon.
According to Wikipedia, Australians are among the biggest fans of the tradition of decorating homes, with hundreds and sometimes thousands of tiny lights. This miner's cottage in Wollongong is hardly visible in the darkness under the Christmas lights.
<img src="/images/stories/2012/12/miners.jpg" width="470" height="343" alt="miners">
What first began as way to light up a veranda to enjoy a cold beer has turned into something of an obsession for some home owners, with the Lobethal Valley in the Adelaide Hills claiming to have the largest Community Christmas Light Display in the southern hemisphere.
Adelaidians flock to the nearby Adelaide Hills in the run-up to Christmas for a view of the twinkling lights in the valley (pictured below) and possibly to quaff a glass of wine or two.
<img src="/images/stories/2012/12/loebel1.jpg" width="470" height="280" alt="loebel1">
<img src="/images/stories/2012/12/loebel3.jpg" width="470" height="280" alt="loebel1">
Among the most famous Christmas lights are those in New York’s Rockefeller Center with its enormous Christmas tree, a world-wide symbol of the holidays in New York City. This year’s tree was hoisted into position by a giant crane and is decorated with more than 30,000 multi-colored, energy-efficient LED lights, and crowned by a Swarovski star. The tree came to ‘light’ on November 28
<img alt="rockcentre" height="500" width="373" src="/images/stories/2012/12/rockcentre.jpg">
Another celebrated Manhattan landmark, the Empire State Building, has a new LED lighting system, which allows effects such as ripples, cross-fades, sparkles, sweeps, strobes and bursts with an range of colours.
The world’s most celebrated skyscraper is now decked out in colours of red and green for Christmas:
<img alt="estate" height="393" width="470" src="/images/stories/2012/12/estate.jpg">
A few weeks ago it was colours of blue and white to celebrate the Jewish holiday of Hanukkah:
<img alt="estatehann" height="294" width="470" src="/images/stories/2012/12/estatehann.jpg">
 
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London’s most famous department store, Harrods, turned on its Christmas lights in November, complete with fireworks, with the lights delineating the enormous shoppers’ mecca.
<img alt="harrods" height="403" width="470" src="/images/stories/2012/12/harrods.jpg">
And it would be wrong (perhaps even sinful) not to include mention of the lights of the most famous boulevard in the world, the Champs-Elysées in Paris.
<img alt="parisxmas" height="375" width="500" src="/images/stories/2012/12/parisxmas.jpg">
Closer to home, both Melbourne and Sydney are getting into the Christmas spirit.
Looking perhaps more psychedelic than Christmas, Melbourne Town Hall is wrapped in a red bow.
<img alt="townhallxmas" height="282" width="470" src="/images/stories/2012/12/townhallxmas.jpg">
Sydney has gone more high-tech with this Town Hall covered in colourful projections.
<img alt="townhall2" height="236" width="470" src="/images/stories/2012/12/townhall2.jpg">
And then there’s always the humble Australian home, lit up like, well, a Christmas tree.
There’s this home in Caramar, Perth:
<img src="/images/stories/2012/12/xmaslights.jpg" width="470" height="353" alt="xmaslights">
And this more considered display in Kew, Melbourne:
<img src="/images/stories/2012/12/xmas2.jpg" width="470" height="256" alt="xmas2">
In Sydney, you’ll be hard pressed to miss this home in Riverwoods.
<img src="/images/stories/2012/12/xmas3.jpg" width="470" height="353" alt="xmas3">
For more colourful Aussie inspirations, try this <a target="_blank" href="https://www.ozchristmaslights.com/">dedicated website.</a>
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