<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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Buying an apartment in the Brisbane CBD could be a cheaper option than renting one, according to the December RP Data Buy vs Rent report.
The latest edition of the theoretical report lists 494 suburbs across Australia where renters should think about doing the sums and perhaps looking at buying an equivalent property (if they can find one) rather than paying rent to a landlord.
This is up from the 388 suburbs in the previous October report and well up from just 238 locations listed in the first report released in August – RP Data updates the report whenever the RBA cuts the cash rate.
However, there are very few inner-city locations where genuine deposit savings are possible, with many of the suburbs on the list being  in remote locations, hundreds and sometimes thousands of kilometres from the nearest capital city – and requiring huge deposits.
The top 20 on the list is dominated by mining towns in WA with inflated rents, but with rental population heavily subsidised by mining companies and with little incentive to consider buying.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/12/rentbuy4.gif"><img src="/images/stories/2012/12/rentbuy4thumb.gif"></a>
With the average variable interest rate now at 5.65%, Brisbane is the capital city that potentially offers renters the best opportunity to come out financially better off by becoming property owners with 58 greater Brisbane suburbs out of a total of 185 in Queensland.
Brisbane CBD units ranks 52nd out of the 494 suburbs on the RP Data list with a potential saving of $344 a month for those buyers who can find a similar property to the one they are renting and raise a 10% deposit of $45,000.
The median unit price in the Brisbane CBD is $455,000 while median weekly rent is $625.
Recent Brisbane CBD apartment sales around the median include <a target="_blank" href="https://www.realestate.com.au/property-apartment-qld-brisbane+city-110402065">this two-bedroom unit on Albert Street</a> (pictured below), which sold for $445,000 in October.
<img alt="albertst3" height="353" width="470" src="/images/stories/2012/12/albertst3.jpg">
A look at rental listings in the Brisbane CBD show there are around 90 or so two-bedroom apartments available for rent around the $600 per week mark, including<a target="_blank" href="https://www.realestate.com.au/property-apartment-qld-brisbane+city-409249651"> this fully furnished, air-conditioned two bedroom apartment</a> (pictured below) in the CBD advertised at $580 per week.
<img alt="brisbcity" height="353" width="470" src="/images/stories/2012/12/brisbcity.jpg">
There are 48 suburbs in Sydney on the list, 40 in Adelaide, 16 in Hobart, eight in Perth, six in Melbourne and seven in Darwin.
 
<hr class="system-pagebreak">
 
Other inner-city locations to feature on the Buy vs Rent report include Enmore units in Sydney, units in the Perth CBD, units in Carlton, Melbourne, units in Ascot Vale (Perth) and Wynnum West in Brisbane.
In total there are only 18 inner-city suburbs on the list out of nearly 500 where renters would $100 or more better if they chose to rent.
Click to enlarge
<a href="/images/stories/2012/12/rentbuy6.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/12/rentbuy6thumb.gif"></a>
The report, meant as a starting point for those considering buying rather than a definitive guide, compares the cost of monthly mortgage repayments (using the scenario of  paying back principal and interest on a variable mortgage rate) with the median rent in that suburb.
It does not consider the potential for capital gains or other costs of ownership such as transaction costs and ongoing maintenance expenses.
It also does not factor in the need to raise what could be a substantial deposit, particularly if you are considering buying nor does it consider the demographic factors within a location.
For example, the location where it theoretically makes the most sense to buy a house rather than rent is Port Hedland in the Pilbara, the epicentre of WA’s mining boom.
RP Data estimates that buyers are over $5,000 a month better off than those that rent with monthly rental costs in excess of $10,000.
However, the median price of a house in Port Hedland is almost $1.2 million, meaning renters could be required to stump up a 10% deposit of $120,000 to secure a loan – out of reach for most.
Furthermore, most renters in Port Hedland and other mining towns, which dominate the top Buy vs Rent locations, would have their rents paid by their mining employee  or might be fly-in-fly-out (FIFO) workers so they would have no incentive to buy.
Another point to bear in mind that some locations considered good options to buy rather than rent would have a scarcity of stock or virtually no stock at all, with the prime example being houses in Docklands, a suburb where apartments dominate.
Docklands houses rank 21st on the list with potential monthly savings for those who choose to buy rather than rent of $846 a month on a variable loan. However, do a search on real estate listings websites and you’ll find just a handful of houses and asking prices approaching $2 million for river-fronted properties.
According to RP Data national research director Tim Lawless, it is meant as a “good starting point for further investigations into whether or not a potential purchaser should consider purchasing within a specific suburb”.
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Brisbane CBD among 494 suburbs where you could be better off buying then renting, but very few inner-city options: RP Data

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Before the GFC hit and destroyed many Australians’ retirement funds, we were beginning to see a demographic shift as some segments of Australia’s population, particularly the retiring baby boomers, were selling up their large suburban homes and moving to the coast to retire, undertaking a transformation known as a  “sea-change”.
While this trend seems to have been halted as many boomers reassess their retirement plans in light of the current economic conditions, the trend will re-emerge, and in time, many coastal towns will have to reinvent themselves to cope with the influx of people.
When looking for a high-growth properties in coastal locations, the question to ask yourself is, “Will this be the type of property that will be attractive to a sea- changer?” Sea-changers will be looking for spacious, modern, low-maintenance properties that offer security and privacy. They will not be looking for “holiday” accommodation.
Another important factor is driving time to major cities, because even though sea-changers are shifting out of a big city environment, they still want a relatively easy drive to a major regional centre or the city. They want to be near hospitals and airports.
Beware the “holiday home” syndrome
Many people like the idea of buying a holiday home and think they can get the dual benefit of a rental income and a free holiday.
I would be cautious, because many people fall into the trap of buying with their hearts overruling their minds in this area. Many investors kid themselves and tell their friends and family that they bought a holiday property for financial reasons when, in reality, they fell in love with the idea of owning a holiday home and often paid scant attention to the investment fundamentals.
I’d rather own my investment properties in prime (non-vacation) locations and then stay at the latest and best accommodation in the spots where I want to holiday.
So which location?
For years, the agents have been telling us the answer is “location, location, location!” And in recent years they have been telling us the right location is near (not in) the CBD or near the water. But this doesn’t help us decide which location to choose and which property within that location to choose.
Location is important, but as you now realise, not always as important as some other factors. You will need to do the legwork and research you do to familiarise yourself with your chosen areas and markets so you can identify bargains and keep your finger on the pulse.
<img style="margin: 5px; float: left;" src="/images/stories/2012/12/yardneybook.jpg">
Michael Yardney is a director of <a href="https://www.metropole.com.au/">Metropole Property Strategists</a>, which creates wealth for its clients through independent, unbiased property advice and advocacy. He is best-selling author, one of Australia's leading experts in wealth creation through property and writes the <a href="https://propertyupdate.com.au/category/property-investment/">Property Investment Update</a> blog. Subscribe today and you'll receive a free video, The Golden Rules of Property Investment.
This is an excerpt from the fully revised new edition of Michael Yardney’s best seller How to Grow a Multi Million Dollar Property Portfolio – in your spare time. Get your own copy plus four free bonuses by here <a href="https://thebookonpropertyinvestment.com/" target="_blank">https://thebookonpropertyinvestment.com/ </a>
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Be wary of investing in holiday properties

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Unless you have a reliable crystal ball, predicting how the property market will shape up in 2013 is a tough call to make.
Uncertainties include how the global economy will play out and impact on Australia, the extent of the slowdown in the mining investment boom and how quickly non-mining sectors like retailing, housing, manufacturing and tourism can pick-up the slack.
Economists are tipping interest rates to fall further in 2013 and reach record lows, which will be good news for mortgage holders, but astute buyers and investors will recognise the economic warning signs.
Lower interest rates are having less of an impact on buying intentions, with confidence seeming to be the major stumbling block.
Still, many property market players are tipping modest property gains in 2013 for some markets, while others are set to tread water or fall further.
Property Observer has spoken to a wide range of industry players and pundits to get their thoughts on what might happen next year.
Here are 10 tips from property market analysts about what to expect in 2013:
1. Sydney to do better, but best NSW prospects still in the regions: Terry Ryder
Hotspotting.com.au’s Terry Ryder expects the Sydney market to do better in 2013 but still tips a number of NSW regional towns to outperform the capital city. Regional towns, he says, are more affordable and have provided much better capital growth over recent years. He expects the following regional market to continue to outperform Sydney in 2013: <a target="_blank" href="/news">Dubbo</a>, <a target="_blank" href="/news">Tamworth</a>, <a target="_blank" href="/news">Gunnedah</a>, <a target="_blank" href="/news">Mudgee</a>, <a target="_blank" href="/news">Orange</a>, <a target="_blank" href="/news">Goulburn</a>, <a target="_blank" href="/news">Albury </a>and <a target="_blank" href="/news">Wagga Wagga</a>. For more on <a target="_blank" href="/news">capital city vs regional prospects in 2013 watch the full webinar</a> with Terry Ryder.
2. Luxury market to recover first: Janusz Hooker
LJ Hooker deputy chairman Janusz Hooker says a recovery in the housing market is “inevitable”, with the luxury high-end market expected to be the first to enjoy price recovery having been hit the hardest by the downturn. His advice to property investors is to “look for places that went down the most and also watch the big cities – when they move it fans out to the regions usually within six to 12 months”.
3. Sydney sub-$750,000 market the strongest in Australia’s “BHP of real estate”: John McGrath
McGrath Estate Agents CEO John McGrath says recent weekend clearance rates indicate clearly that the under-$750,000 market is still strongest in Sydney, with McGrath averaging a 69% clearance rate in this bracket, followed by 65% for the $750,000 to $1.5 million sector. "Sydney remains the <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-end-of-the-buyers-market-drawing-near-with-australian-property-prices-set-to-rise-in-2013-john-mcgrath/2012121658475/Page-1?utm_campaign=observers&amp;utm_medium=aida&amp;utm_source=po">BHP of Australian real estate</a> – the big blue-chip market that generally outperforms the rest, says McGrath, who predicts a 2% to 5% price rise in the under-$750,000 market and a 5 to 8% rise in the $750,000 to $1.5 million bracket.
4. Consider the outer suburbs of Adelaide and Brisbane: Margaret Lomas
Destiny Financial’s Margaret Lomas says property investors are starting to take a look at the outer suburbs of Adelaide and Brisbane, with activity picking up towards the end of 2012. These were areas were house prices started to move up a little bit in contrast to the rest of the market, which mostly stagnated, she told realestatetalk.com.au.
5. Rent vs buy equation to sway more first-home buyers and renters into the market: Tim Gurner
Tim Gurner, director at Melbourne-based property development company Urban Inc, says the buy versus rent equation will sway strongly towards buying in 2013, “so we’re expecting to see a lot of first home buyers and renters return to the market”. Urban Inc is currently developing Alessi in West Melbourne.
6. Perth and Sydney to perform, Brisbane held back by unemployment: Aaron Maskrey
Aaron Maskrey, research director at PRDnationwide, expects Sydney to experience steady, but modest growth of around 5% throughout the upcoming year. He says Perth should also be a stronger performer in 2013, with a combination of mining investment and low interest rates helping to shift this market off the bottom of its property cycle. “A conservative estimate of price growth during 2013 would see Perth increase in value by 2%, but such is the swing with this resource affected region, greater market sentiment could give rise to 6% growth." Maskrey says Brisbane finds itself in a similar situation to Perth and would have been included with Perth’s forecasted growth but for the sharp rise in unemployment. “With a rising rate of jobless residents, any potential growth that was initially forecasted for Brisbane is now expected to be temporarily suppressed in early 2013,” he says.
 
<hr class="system-pagebreak">
 
7. A more generic uplift in property prices for Sydney then Melbourne: Matthew Chun
Becton CEO Matthew Chun is more bullish on the Sydney property market than Melbourne in 2013. Chun tells Property Observer he expects “meaningful price growth” in Sydney of 4% to 8% with modest growth of 2% to 4% in Melbourne. Chun also expects a more generic recovery across the Sydney market, while Melbourne will be restricted to growth from unique, well-located properties within 10 kilometres of the CBD. “Outside of this zone growth will be flat, and I also don’t expect much growth in the Melbourne apartment market,” he says. Becton's two key projects are Divercity in Waterloo and Newleaf in Bonny Rigg in the west of Sydney.
8. West Melbourne land market has better prospects: Jeff Garvey, director of ID Land
Jeff Garvey, director of Melbourne residential developer ID Land, says the outer west growth corridor, which includes suburbs like <a target="_blank" href="/news">Truganina</a> and <a target="_self" href="/news">Plumpton, </a>have good prospects, in contrast to the perception that the Melbourne land market is struggling. Garvey says the area is supported by “really big infrastructure projects” including the $5 billion regional rail link running from Southern Cross to Werribee and due for completion in 2016. In addition, Truganina is only 20 kilometres from the Melbourne CBD. 
9. Don’t expect or wish for the cash rate to reach 2%: Joe Sirianni
Joe Sirianni, executive director at mortgage brokers Smartline, anticipates only one more rate cut in 2013 and says were the cash rate to fall to 2% it would undermine confidence, which he says is the key issue. “We’re living in changing times and the use of interest rate cuts as a lever to stimulate the economy just isn’t having the same impact as it has in the past. Therefore, I think the RBA will realise that there is little point in going much lower with the cash rate.  A cash rate of 2% would be unprecedented in Australia, and I think there’s a danger that if rates were cut to this level, it would un-nerve most people and exasperate the already low levels of confidence,” says Sirianni.
10. A modest recovery in new housing in NSW in 2013 with better buying conditions: Craig D'Costa
Craig D'Costa, senior development manager of Sekisui House, a co-developer of the $2 billion Central Park project in Sydney, says a recovery in the housing industry will be a key factor in boosting the NSW economy. "The housing industry is forecasting NSW to achieve a modest increase in housing starts for 2013, this comes of the back of government led stimulus for new home buyers with substantial saving in stamp duty and grants. Overall, improved affordability and better buying conditions will underpin home buying activity next year in 2013, with upgraders and investors also likely be very active sectors," he says.
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The 10 insights into the 2013 property market: What, why, when and where to look

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Phew, what a year (sigh of relief that’s it’s almost over).
This year we completed the most development projects for our clients in our business history, but it wasn’t until I sat down to lunch with one of my builders and team last week that I’d even had time to reflect.  We wanted to celebrate the massive year we had all had.  My builder had turned over a record amount, and his business was up 15% – not bad in these ‘tough’ times.  Property Bloom also had a record year, which shows in new wrinkles forming on my face. I need a holiday!
At lunch we looked at some stats I put together on what we’d achieved.
There were some highlights but also some lowlights. I had one builder go into liquidation, which I would not wish on my worst enemy but wanted to mention in the light of another large NSW builder – Procorp was swept into administration a few weeks ago.  We completed this three-unit project early this year, and I had coffee with my client recently. Of course it wasn’t what we had expected, and the delay and added cost of finishing construction with another builder is very frustrating, but Property Bloom managed this process smoothly. After getting no fewer than five quotes to complete their triplex, we saved about $80,000 by using our smaller, renovation builder.  He was more affordable because he was on the tools himself.  At the end of their project the tax rebate from the high depreciation was a good reward together with the high yield they are getting. So they were not too sad, but this was definitely a lowlight for us.
We also completed two other projects that started off very differently to how they ended. We had planned for three-unit projects but ended with dual occupancies due to a sequence of unexpected events at the council, which had its planning powers taken and an independent planning panel suddenly put in place that proceeded to reject development application after development application (DA) without warning or giving us or anyone else a chance to modify plans. These circumstances were well beyond everyone’s wildest imaginations, and so these developments were impacted by a situation totally unforeseen.
We are extremely proud of this year because the highlights far outweigh the low ones.  The reason I’m even mentioning lowlight projects is because we all need to understand the risks in property developing and also because I’m an honest person.  It’s not always beer and skittles!
If you are going to develop property, you need to be prepared for the unknown. It’s like unwrapping a Christmas gift and not knowing what’s inside until all the wrapping is gone and the contents revealed.  A development site is somewhat similar; it’s not until you get through each phase – site selection, design, planning and construction that you really know what you will end up with.
 
<hr class="system-pagebreak">
 
So now I’m going to boast of one of great results.  This three-unit project (pictured below) surprised even me when we finally ‘unwrapped’ it – it was truly the gift you always wish for.
<img src="/images/stories/2012/12/chiversdec14.jpg">
Our first signal that we were off to a good start was sourcing an off the market site directly from the land developer, a farmer who was subdividing off some on his very flat, well-located land. Our client paid $195,000 for a 1,090-square-metre lot.
We completed the project with 14 months, including design, DA approval, construction certificate approval, finance approval and construction.
The build time was 25 weeks.
The equity created through the development process was a massive $222,301, representing a 16% return on investment (within 14 months).
The gross yield was 7% upon renting the villas.
The best result we achieved was to bring in the project $38,623 less than what was originally estimated.  Our initial estimates are done before we have any plans and based on our experience on similar projects.
There were many other very successful developments, and as I reflected on this with our team and builder at lunch overlooking the vineyards of the wonderful Hunter Valley, we summarised it quite simply into the ingredients for successful developments: finding good sites, implementing good systems, running a good team and having great clients, ones who make quick decisions and let us get on with what we do best.  Thank you to all our wonderful clients, and I wish everyone a safe, relaxing and happy Christmas.  I’m looking forward to a nice break myself so I can try and better our bumper year in 2013.
Jo Chivers is director of <a href="https://www.propertybloom.com.au/">Property Bloom</a>, which manages property development.
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A year of highlights and lowlights in property development management

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It has been another comparatively weak year for the residential housing market, with data to November indicating that capital city home values have fallen by 0.1% over the year.
<h3>What to expect in 2013</h3>
As we enter 2013, Australia’s housing markets are likely to remain relatively flat. However, in some sectors we may see capital gain increases over the coming year.
As per the current status quo, there is likely to be a continued variance in performances from city-to- city and region-to-region. Property markets in Sydney, Brisbane, Perth and Darwin, where home values have corrected more than the other capital cities, may be the markets to watch for improving conditions.
We are already seeing signs of a recovery in these markets, particularly in Perth and Darwin. On the other hand, markets such as in Melbourne, where capital gains have had a strong run, are more likely to see weaker conditions.
The number of properties being advertised for sale across Melbourne has ramped up very quickly; new listings have remained fairly constant. However, the total number of homes available for sale simply hasn’t been absorbed due to a slowing rate of sale.
Due to the high capital gains and a comparatively weak rental market, Melbourne rental yields are also comparatively low. There seems to be a likelihood of further interest rate cuts in the near future by the RBA, especially in light of the revelations of a slowing Chinese economy and a substantial decline in commodity prices and the likelihood of much slower economic growth over the third quarter of 2012.
The rising rental costs and lower interest rates may, in certain areas, result in some renters now looking to enter into home ownership. On the other hand, consumer caution persists and consumers broadly continue to prefer paying down debt and shun new debt, which is likely to restrict any significant improvement borne through lower interest rates.
The big wild card remains the global economy. The likelihood of further economic uncertainty is high, which will continue to dampen consumer confidence and the willingness to spend on high commitment decisions like purchasing a property.
As a result, any significant growth in values across the national housing market would appear to be some way off. The recent improvement in sales transactions will be vital to a sustainable return to value growth across the country. However, it will need to be maintained for a number of months before there is evidence to proclaim a recovery.
Click to enlarge
<a href="/images/stories/2012/12/rpdec13.gif" title="Click to enlarge" rel="shadowbox"><img src="/images/stories/2012/12/rpdec13thumb.gif"></a>
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
<h3>The state of play in 2012</h3>
This year delivered weaker market conditions for the residential housing market, with data to November indicating that capital city home values fell by -0.1% over the year.
<ul>
<li>House values fell by -0.4%</li>
<li>Unit values increased by 1.6%</li>
<li>Over the first 11 months of 2011 capital city home values fell by -3.8%</li>
<li>House values were down -4.0%</li>
<li>Unit values declined by -2.6%</li>
</ul>
<h3>How did 2011 compare with 2012?</h3>
There are a number of reasons for the property market’s lacklustre performance in 2012. These include: growth in housing credit has been extremely limited; low levels of consumer confidence; affordability barriers due to a higher mortgage rate environment.
Although research confirmed that the property market was weak over the past 12 months, there are select areas around the country that have well and truly outperformed others.
The following lists the top performing suburbs around Australia over the 12 months to September 2011. Specifically, the analysis will look at:
<ul>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-2">Highest median sale prices</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-3">Most affordable median sale prices</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-4">Most affordable median sale prices within 10km of the capital city</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-5">Highest indicative gross rental yields</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-6">Highest indicative gross rental yields within 10km of the capital city</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-7">Greatest increase in median selling price over the past 12 months</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-8">Greatest increase in median selling price over the past five years</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-9">Highest median weekly advertised rental rates</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-10">Most affordable median weekly advertised rental rate</a></li>
<li><a href="https://www.propertyobserver.com.au/news/the-property-suburb-winners-and-losers-of-2012-cameron-kusher/2012121958513/Page-11">Highest gross value of sales</a></li>
</ul>
 
<hr class="system-pagebreak">
Highest median value
<img src="/images/stories/2012/12/rpdec18.gif">
<img src="/images/stories/2012/12/rpdec181.gif" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
Most affordable median value
<img src="/images/stories/2012/12/rpdec182.gif" width="470">
<img src="/images/stories/2012/12/rpdec183.gif" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
Most affordable median sale prices within 10km of the capital city
<img src="/images/stories/2012/12/rpdec184.jpg" width="470">
<img src="/images/stories/2012/12/rpdec185.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
<h2> </h2>
<h2>Highest indicative gross rental yields</h2>
<img src="/images/stories/2012/12/rpdec186.jpg" width="470">
<img src="/images/stories/2012/12/rpdec187.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
<hr class="system-pagebreak">
Highest indicative gross rental yields within 10km of the capital city
<img src="/images/stories/2012/12/rpdec188.jpg" width="470">
<img src="/images/stories/2012/12/rpdec189.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
Greatest increase in median selling price over the past 12 months
<img src="/images/stories/2012/12/rpdec1810.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1811.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
Greatest increase in median selling price over the past five years
<img src="/images/stories/2012/12/rpdec1812.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1813.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
<h2>Highest median weekly advertised rental rates</h2>
<img src="/images/stories/2012/12/rpdec1814.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1815.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
<h2>Most affordable median weekly advertised rental rate</h2>
<img src="/images/stories/2012/12/rpdec1816.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1817.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
 
<hr class="system-pagebreak">
 
Highest gross value of sales
<img src="/images/stories/2012/12/rpdec1818.jpg" width="470">
<img src="/images/stories/2012/12/rpdec1819.jpg" width="470">
Source: <a href="https://www.myrp.com.au/" target="_blank">RP Data</a>
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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The property suburb winners and losers of 2012: Cameron Kusher

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There are many theories about what makes property prices move, but in the simplest terms, there are two factors that determine price: supply and demand.
These factors are themselves affected by a myriad of smaller factors such as availability of financing, affordability and tax laws, to name but three.
So, what is my opinion on the future for Australian residential property? Well, the markets have a tendency to make monkeys of those who try to make forecasts. I will not make a definitive forecast, but instead I’ll look at the fundamentals of the market and the probabilities in order to make investing decisions. 
Here are just a few of the fundamentals to consider: 
<ul>
<li>Demand: the population of Australia is predicted to increase dramatically to somewhere close to 30 million by 2040 </li>
</ul>
<ul>
<li>Immigration: the majority of immigrants will be heading for the capital cities, in particular to Sydney, Melbourne, Perth and south-east Queensland </li>
</ul>
<ul>
<li>Supply: statistics on this vary significantly, but it is generally acknowledged that Australia has an acute shortage of dwellings in certain areas and is not building enough new properties to house the expected numbers of immigrants; this is especially true in some landlocked city areas </li>
</ul>
<ul>
<li>Expected inflation: the target inflation rate of the RBA is 2 to 3%, although core inflation is a shade below the target at the time of writing </li>
</ul>
<ul>
<li>Demography: generally, the population is marrying later, living in smaller two-income households for longer, and the younger generation overwhelmingly want to live near the CBDs of cities </li>
</ul>
<ul>
<li>Population density: the increasing population will mean denser traffic, and rising fuel prices will increase the importance of transport links to the CBD. </li>
</ul>
My opinion is that property will continue to increase in value, but we are unlikely to see the relentless double-digit growth that we have seen in past decades. 
Crucially, credit growth is extremely unlikely to continue to expand at such a dizzying rate, and it seems to me that the RBA is likely to be far more hawkish on inflation than governing bodies of decades gone by. 
I also feel that the events of and fallout from the sub-prime crisis of 2007-2009 may force the world’s central banks to adopt a slightly different approach – rather than only focussing on controlling CPI and turning a blind eye to asset-price inflation, they may take a more active role in the controlling and deflation of asset bubbles. 
For these reasons, I rationalise that the most obvious proxy for future property market growth is likely to be the growth of household incomes: logically, the more people have to spend on their residence, over time the more they will spend (though immigration may make the growth rate slightly higher). 
Over the last couple of decades, median household income growth has been very strong, at times close to 6% per annum, but this has been partly fuelled by a significant increase in the number of two-income households. 
Looking forward, it is reasonable to believe that the rate of increase may be somewhat lower, perhaps nearer to 4-5%, and consequently median dwelling price growth is likely to be somewhat lower than it has in the past too. 
While this might be a reasonable assumption to make for a longer-term average, it is worth noting that in the short term property prices rarely move in such a uniform manner. 
History shows us that growth asset classes are likely to spend long periods with values either flat or falling before seeing a period of accelerated growth. As property investors, we want to remain invested through as many of these boom periods as we can. 
We would do well to remember that between 1960 and 1990, the average rate of inflation was 8%, wage growth was 9.7% and property growth was around 11% (thus outperforming the CPI by around 3%). 
Whether or not we have such high rates of inflation in the future remains to be seen, but we should note that the RBA’s target rate of inflation is now far lower than historical levels. 
Property price growth is not the conspiracy that many people think it is. Much of the increase in property values over time is simply driven by the inflationary nature of our economy. Things will cost more in the future than they do now. 
Unfortunately for the doomsayers, I believe that our property prices are likely to be heading upwards when we consider a reasonable time horizon. In future decades, Australia’s property prices are very likely to be far higher than they are today. 
The question is, if median property price growth in the future is only somewhere around 5% instead of the 7–10% that has been seen in the past, is property still an asset class we should invest in? For my money, the answer is an emphatic ‘yes’. 
Remember that, as property investors, we are not too concerned with median price growth. We want to significantly outperform median price growth through investing in harmony with market cycles, picking properties that are in continual high demand and selecting properties that we can add value to through renovations. 
Specifically, in Australia I will be investing in two-bedroom, two-bathroom units (and sometimes even one-bedroom units) with parking that are in suburbs close to the CBDs of some of the major capital cities. 
I will be seeking investment-grade units in the supply-constrained, lifestyle suburbs that have transport hubs or links for easy access to the city. 
Nobody knows what the future will bring, but if the median price of property grows by 5% over future decades, as a property investor I will be looking for my portfolio to outperform the median growth by at least 2%. 
I believe that these suburbs and types of properties will achieve that because they are highly sought after as a result of their local resources and facilities. Properties in desirable suburbs are also impacted less by affordability issues than some of Australia’s housing stock.
<img src="/images/stories/2012/12/wargentbook.jpg" style="margin: 5px; float: left;">
Pete Wargent holds a range of finance and property qualifications and is the author of <a target="_blank" href="https://petewargent.blogspot.com.au/">Get a Financial Grip – a simple plan for financial freedom.</a>
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Property prices determined by supply and demand balance: Pete Wargent

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The Real Estate Institute of Western Australia has urged the state government not to consider ending the universal application of the first-home owners' grant in its upcoming midyear budget review.
Currently, the state distributes the $7,000 grant to first-home buyers irrespective of whether they are purchasing an established property or building a new one.
Some premiers in the eastern states have changed the rules for eligibility and will now only provide funds to first-home buyers who build a home or purchase a newly built one.
The New South Wales and Queensland governments recently scrapped the first-home buyers' grant for people who buy a previously lived-in property as a means to stimulate their flagging construction industry.
However, that stimulus is not needed in WA, especially when 75% of first-home buyers in this state purchase a second-hand home, not a new one.
WA is presently experiencing the strongest non-stimulatory growth in first home buyer activity in both the established and new housing sectors since FHOG was introduced in July 2000.
Now is not the time to distort the healthy recovery in the WA housing market.
First home buyer activity  is currently very strong in WA, constituting up to 30 per cent of all turnover around the state.
We are also starting to see a healthy recovery in new building activity, which has partly been led by first-home buyers now representing 25% of this new activity.
Meddling with the application of the first-home owners' grant now would greatly distort this healthy sector of the market and disadvantage three-quarters of people trying to own their first homes.
The Commonwealth introduced this grant with the purpose of it having universal application to all first-home buyers. This universality must continue in WA to keep this section of the market stable and to ensure fairness for all new buyers.
REIWA is also encouraging the state government to maintain its transfer duty exemption for first home buyers in the forthcoming midyear budget review.
David Airey is president of the <a href="https://reiwa.com.au/home/default.aspx" target="_blank">Real Estate Institute of Western Australia.</a> This article was originally published on <a href="https://reiwa.com.au/Faq/Pages/Feature.aspx">reiwa.com</a>. 
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The WA government should leave the first-home owners' grant as it is: David Airey

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Mortgage industry bigwig John Symond has tipped a gradual improvement in the housing market in 2013 and for interest rates to fall further.
“I am pretty confident the housing market throughout the country has bottomed out,” he says.
Symond believes there will be a “very gradual increase in [property] values across the board”, but not the 15% or 20% annual spike that occurred pre-GFC.
Mirroring comments made by<a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/news/no-housing-price-crash-but-if-pries-increase-further-australia-flirting-with-danger-glenn-stevens/2012121858581" target="_blank"> RBA governor Glenn Stevens </a> about sustainable house price growth, Symond said such price spikes were “not healthy”
Rather, he says a gradual increase of 4% to 5% would be “a good healthy return year-on-year”.
“I believe the property market will now head into a healthy state of growth with only gradual increases and that is on the back of low interest rates,” he says.
He is also starting to see a return of property investors to the market due them having the “greatest choice in the number of properties on the market in Australia’s history” combined with the low interest rates.
“I am confident we will see a healthy gradual improvement in housing across the country and I believe the regional centres will see that increase as well because overall Australia still has a shortage of housing,” he says.
Symond says he also expects interest rates to head lower in 2013.
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Property has bottomed out and heading for “healthy" growth rates of around 4% to 5% per annum”: John Symond

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To the average person the concept of a drug lab operating out of a standard residential property may seem somewhat far-fetched. Surely these types of operations only exist in abandoned sheds on the outskirts of town, just trying to mind their own business?
Unfortunately, this is not the case. The drug lab epidemic has leaked into neighbourhoods across the country next door to unsuspecting families and children.
An article titled “Landlord blasts property agents after drug raid” was published in the Gold Coast Bulletin about the discovery of a drug lab property on the Isle of Capri.
This is a prestigious island suburb located in the heart of the Gold Coast with most properties boasting waterfront access. Not exactly an abandoned shed, is it? The property in question was a rental property and it once again highlights property managers’ exposure to potential mismanagement claims by their landlord clients.
According to the article, the landlord lived next door to the rental property and allegedly had concerns about its condition. The landlord reportedly blamed the property manager because he believed the agent’s inspections had been inadequate.
The setup of drug labs is not always easily identifiable, and in many instances landlords may look to blame agents and seek to recover their losses from them.
It is an apt time for the Real Estate Institute of Queensland to remind agents that the cover provided by the Aon/REIQ/ Professional Indemnity policy is unique in that it is the only policy which has a standalone property mismanagement extension.
This extension provides protection from allegations of negligence arising from any claim arising as a result of an actual or alleged breach of the agent’s professional duty as a property manager, including malicious damage to a rental property or loss of income or value to a rental property as a result of illegal activity by tenants (including drug labs).
With drug labs appearing in the most unlikely of suburbs across the country, this is a timely reminder for those in the real estate profession to be aware of the associated risks, both personally and professionally.
More information on drug labs can be found through the <a target="_blank" href="https://www.police.qld.gov.au/programs/druglabs/">Queensland Police Service</a>
Amanda Haack is events manager journal deputy editor at the <a target="_blank" href="https://www.reiq.com/">Real Estate Institute of Queensland</a>. This article originally appeared on the<a target="_blank" href="https://reiqblog.com/"> REIQ blog.</a>
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 How Queensland property insurance can help if a drug lab is found in an investment property

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Landlords could find themselves bearing heavy losses if their properties are rented by tenants who  undertake criminal activities if they don’t take out extra insurance to cover this sort of behaviour.
However, investigations by Property Observer indicate that obtaining the extra insurance needed may be hard to come by, with many insurers not readily covering this kind of activity.
It especially highlights the importance that property managers properly vet prospective tenants before signing lease agreements.
The issue has come to light following the reporting of two drug labs uncovered in rental properties in Melbourne and on the Gold Coast in the last few months.
In September, the Herald Sun reported that property investor Nicholas Milan Wyman would sue his property manager after suffering extensive damage his rental property in St Leonards, Sydney, which was used as a drug lab and where a corpse was dismembered.
Last week, the Gold Coast Bulletin reported that a police drug raid uncovered a drug lab in a rental property<a href="https://www.propertyobserver.com.au/landlords/how-queensland-property-insurance-can-help-if-a-drug-lab-is-found-in-an-investment-property-amanda-haack/2012121858560?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=observers" target="_blank"> on the prestigious Isle of Capri.</a>
Property Observer recently contacted the major landlord insurance providers, but only one – Terri Scheer Insurance – provided a definite response to the question of landlord recompense cover for criminal activity.
Another insurance provider, Perth-based EBM Insurance Brokers, has subsequently contacted Property Observer to say that its RentCover landlord insurance does cover drug lab clean-up costs and recently paid out a $50,000 claim to clean up a property used as a drug lab in Hoxton Park, NSW.
According to RentCover general manager, Sharon Fox-Slater, police discovered the laboratory by chance when investigating a child abuse allegation; the home was occupied by a family with four children aged under 10.
Fox-Slater says in this case the alleged crooks were careful with gardens well-kept and the four-bedroom home "immaculate during property inspections, with the laboratory dismantled".
“We treated the claim as tenant damage because the ongoing liability is massive if the property is not cleaned correctly,” she said.
A spokesperson for Allianz Australia said the company could not provide any comments in relation to the example of the St Leonards drug lab story.
“We have looked into it, but there are some many potential complexities and unknowns in the scenario provided below that it is not possible to provide a simple response as to whether our landlords policy could respond in full or part to such an event,” said the spokesperson.
A spokesperson for CGU said the insurer had no comment.
Aon said it could not comment, though it does provide a professional indemnity policy for property managers with a “mismanagement extension”.
 
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This extension provides protection from allegations of negligence arising from any claim arising as a result of an actual or alleged breach of the agent’s professional duty as a property manager, including malicious damage to a rental property or loss of income or value to a rental property as a result of illegal activity by tenants (including drug labs).
Terri Scheer Insurance manager Carolyn Majda said criminal activity by a tenant that results in damage to the rental property “may be covered by insurance – provided there is a tailored landlord insurance policy in place”.
Terri Scheer Insurance offers tailored insurance policies to cover landlords for many risks including malicious and accidental damage, loss of rental income and legal liability.
“Landlord insurance policies that cover these specific risks can assist landlords to safeguard their investment and ensure they continue to receive a steady flow of rental income,” Majda says.
“A good landlord insurance policy that covers malicious damage – for example holes punched in walls, doors that have been kicked in and intentional damage to carpets and floors - will class illegal activity within this category.
“Loss of rental income resulting from criminal activity may also be covered by landlord insurance, for example, if the landlord is unable to lease the property while it is repaired or cleaned, or if the tenant absconds before their lease is up for renewal.
“This is why every landlord should have a tailored landlord insurance policy,” she says.
“Landlord insurance policies that cover these specific risks can assist landlords to safeguard their investment and ensure they continue to receive a steady flow of rental income.
Majda says the policy should also provide cover if a court orders a tenant’s eviction or terminates the rental agreement due to tenant hardship.
“A standard building and contents insurance policy generally won’t cover landlords for many of these risks,” she says.
From January 1 next year, all real estate licensees in NSW will be required to have mandatory professional indemnity insurance with cover of at least $1 million for any one claim and not less than $3 million in the aggregate for all claims made during the period of insurance.
Photo by West Midlands Police courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
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