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;

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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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.

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.”

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 style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">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 style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

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

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

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

<html><body>
A recent article in BRW explained that if you think the wealthy make their money slaving over a desk like ordinary folk you’ll never be rich. 
<a href="https://www.brw.com.au/p/sections/investment/how_rich_people_make_their_money_kLIhdi1N5esL0uQec4sfkO" target="_blank">The article</a> cited <a href="https://www.inc.com/" target="_blank">Inc.</a>, which combed through the US Internal Revenue Service’s latest annual report into big earners and broke down how they earned their keep, which was as follows: 
<ul>
<li>Wages and salaries – 8.6% </li>
<li>Interest – 6.6% </li>
<li>Dividends – 13% </li>
<li>Partnerships and corporations – 19.9% </li>
<li>Capital gains – 45.8% </li>
</ul>
The clear message from this appears to be, if you want to get rich invest for capital growth. 
Now if you’ve been following my blogs you’ll know that this is what I’ve been saying for years. I’ve always recommended buying well-located residential properties and building a substantial asset base that will one day replace your personal exertion incomes. 
If you think about it, as you build an extensive property portfolio, over the years the vast majority of your profit will be capital growth and not rents.
 
It’s really the same for home owners 
If you bought your house 10 years ago for $250,000 and it’s worth half a million dollars today, the bulk of your wealth is not from your savings and paying off your mortgage but from capital growth.
 
What about in the future when capital growth will be lower? 
There’s no doubt that over the next few years we’ll experience a lower overall rate of capital growth in property values. Does that mean that property investment doesn’t make sense at the moment, or that you should invest for cashflow? 
The simple answer to both questions is NO! 
Cashflow is necessary to keep you in the property markets, but it’s really capital growth that will make you wealthy. 
And while overall the markets are flat, there are still pockets of strong capital growth. It’s a bit like me putting one hand in a bucket of ice water and the other in a bucket of hot water and saying, “Overall the temperature is comfortable.” 
In all of our capital cities there are some areas where demand is outstripping supply, pushing up prices.
 
My four stranded strategic approach to property investing 
While at any time there are hundreds of thousands of properties for sale, not all will make good investments. In fact, most won’t. 
To ensure I buy a property that will outperform the market averages I use a four-stranded strategic approach. 
1. I buy a property below its intrinsic value. 
2. In an area that has a long history of strong capital growth. 
3. I look for a property with a twist – something unique or special or different or scarce. 
4. And a property where I can “manufacture capital growth” through refurbishment, renovations or redevelopment. 
By following my four-strand strategic approach I minimise my risks and maximise my upside, as each strand represents a way of making money from property, and combining all four is a powerful way of putting the odds in my favour. If one strand lets me down, I have two or three others supporting my property’s performance. 
If you want to gain a degree of financial freedom, I suggest you consider investing for capital growth too.
Michael Yardney is the director of <a href="https://www.metropole.com.au/" target="_blank">Metropole Property Investment Strategists</a>, a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the<a href="https://propertyupdate.com.au/category/property-investment/" target="_blank"> Property Investment Update blog.</a>
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Refurbishment, renovations or redevelopment is the way the rich make their money

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Boutique lodge operator Baillie Lodges has submitted a development application for its proposed new ultra-expensive hotel, including a new "ribbed building" joining two Victorian-era warehouses dating back to the 1840s.
Photos included in the submissions show a Sydney seeped in Victorian-era architecture with brick terraces and horse-drawn carts.
The application by Baillie Lodges has an estimated construction cost of $6.3 million.
<img src="/images/stories/2012/08/baillie.jpg">
The new hotel has been designed by architects Tonkin Zulaikha Greer architects, led by director Tim Greer, which has past experience in projects incorporating a heritage element.
It features a new two-storey building to be built on the site of the Westpac museum with a ribbed façade and a roof terrace, linked to 47 George Street.
<img src="/images/stories/2012/08/baillie2.jpg">
Among the firm’s most well-known projects is the 'Portico' Scots Church redevelopment in Wynward, a short walk from the Rocks, which topped the disused, heritage-listed neo-gothic 1920s church with apartments while keeping the gothic façade at the base.
Baillie Lodges – run by husband-and-wife operators James and Hayley Baillie – is targeting a mid-2014 opening for what would be its first inner-city Sydney venture.
They are seeking to make alterations and additions to two existing heritage listed buildings, demolish the 1980s-built former Westpac Museum and erect a new building to create the new boutique hotel.
The heritage buildings stand on the corner of George Street and Atherton streets in the Rocks and form part of a predominantly Victorian and Edwardian streetscape at the northern end of George Street.
<img src="/images/stories/2012/08/baillie3.jpg">
The two heritage buildings are Union Bond Store at 47 George Street, Merchants House at 43-45 George Street as well as the adjoining Avery Terrace site, which houses the former Westpac Museum.
 
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<a href="/images/stories/2012/08/bailliemap.jpg" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/bailliemapthumb.jpg"></a>
The project is being managed by Matthew Giltrap, who says a final decision on the application may not be made until November. The application requires approval of the Heritage Council.
Should this go smoothly, construction could begin in March.
The Baillies have acquired 35-year leases on the two adjacent historic buildings on George Street 
Documents show that the construction of Union Bond Store dates back to 1841, Merchants House dates back to 1848 and Avery Terrace to 1881.
The Union Bond Store and Merchant’s House form a Victorian Regency period "bookend" to the adjacent two-storey terrace houses.
Historical documents included in the application show the rich heritage of the site.
There are grainy photographs showing the two matching warehouses at 47 George Street dating back to 1858 adjoining the Union Bond Store.
<img src="/images/stories/2012/08/baillie4.jpg">
An 1880s directory excerpt lists the tenants at 47 George Street as “E Bow and Co. Wholesale Druggists”
<img src="/images/stories/2012/08/baillie5.jpg">
Also taken in 1880 is this photo showing the two buildings fronting George Street with horse-drawn carts out the front and a winch used to lift supplies from the carts to higher levels of the warehouse.
<img src="/images/stories/2012/08/baillie6.jpg">
At the turn of the century, Union Bond Store and Merchant’s House are shown as part of the Estate of the John Martyn.
More historical pictures show the warehouse within the context of a distinctly Victorian-looking Sydney with boats and ships moored in a Circular Quay that looks nothing like today’s modern high-rise version
<img src="/images/stories/2012/08/baillie7.jpg">
Plans for the Baillies' Sydney were revealed by James Baillie in April this year.
He told Property Observer he chose The Rocks because it is a “quintessentially Sydney location” and “perfectly located close to all of Sydney key iconic attractions”.
Suite tariffs (double) will range from $1,200 to $3,000 per night inclusive of gourmet breakfast, open bar and in-suite bar, evening cocktails and canapés, airport transfers and town car service.
The Great Ocean Road is next on the couple’s agenda, and they also have ambitions of opening a second larger luxury hotel in Sydney.
Baillie Lodges was founded in 2003 and currently operates three luxury lodges in wilderness locations, these being <a target="_blank" href="https://www.lordhowe.com/">Capella Lodge</a> on Lord Howe Island, the Baillies’ first venture, <a target="_blank" href="https://www.southernoceanlodge.com.au/">Southern Ocean Lodge </a>on Kangaroo Island (pictured above) and <a target="_blank" href="https://www.baillielodges.com.au/remarkable-lodge.asp">Remarkable Lodge in Tasmania</a>.
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Baillie Lodges reveal ribbed modernist addition to proposed boutique hotel in Victorian-era The Rocks in Sydney

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The New South Wales property market is set to improve in the second half of 2012, with signs it may already be on the upswing in many areas, but any recovery is expected to be gradual, according to First National Real Estate’s 2012 Property Market Outlook Mid-Year Update. 
The Update, released this week, is based on a survey of the 400+ member network, and provides an insight on what member agents expect the market to do, drawing on their experience at the grass roots level. 
There is general feeling of optimism in New South Wales that reducing interest rates will increase confidence in the property market. 
As buyer confidence improves, so should conditions and the market.
The key influencing factors in the next six months for the market will be interest rates, buyer confidence levels, the global economy and lower levels of new listings. 
Banks need to pass on interest rate cuts, and the state government needs to release more land and lower costs to support the property market in its recovery. 
The banks are proving to the marketplace they can, and will, do what is right for their profit, rather than what is right for the consumer. 
And the state government’s lack of funds to complete any major infrastructure works could restrict the amount of land available, both of which will hinder recovery efforts. 
The Update says the strongest growth will come from the investor sector, followed by upgraders and retirees. 
Investor activity will increase as a result of improved buying opportunities and better rental yields. 
Property prices should stabilise, with some upswings, with price movements underpinned by buyer confidence, especially in the areas of mid-north coast, Southern Highlands, central coast and greater western Sydney. 
The rental market in NSW is expected to remain relatively strong overall, although this will depend on the region. 
Members in greater western Sydney, Sydney metropolitan, mid-north coast, northern rivers and Snowy Mountains have strong rental markets and are expecting vacancy rates to fall or remain the same. 
Interest rates are expected to reduce further, adding to improving affordability levels, strengthening buyer confidence and stimulating activity in the slow property market. 
The rising unemployment and increasing living expenses, including the introduction of the carbon tax, are expected to put pressure on mortgage holders, with 41% of NSW members expecting increased mortgage defaults in their region. 
The commercial property market will prosper from any improvements in job opportunities and consumer confidence. 
Stunted growth in the business sectors, especially retail and tourism, is having a significant impact on the state’s commercial property market, and any gains in general economic conditions may stem the downward trend. 
The relatively high value of the Australian dollar will dampen activity in rural property markets, along with slow buyer activity. 
According to the Update, the key challenges facing local NSW property markets are vendors adjusting prices to meet market expectations, low population growth resulting in reduced buyer numbers and unstable global and domestic economic conditions. 
Economic conditions are of particular concern and affecting the market in the regions of the Snowy Mountains, south coast, Southern Highlands and Southern Tablelands.
Mike Millington is chairman of <a href="https://www.firstnational.com.au/" target="_blank">First National Real Estate </a>NSW.
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Optimism in NSW property market that low interest rates will improve confidence

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Property investors with net wealth of over $5 million will face increased tax compliance scrutiny from the Australian Tax Office (ATO) following the launch of a new online guide aimed at “wealthy individuals and their economic groups with net wealth over $5 million” as well as small and medium-sized enterprises earning between $2 million and $250 million.
"With more than $74 billion of revenue collected last financial year coming from SMEs and wealthy individuals, over a quarter of all revenue collected by the ATO, it is important that we have a good working relationship with clear expectations of each other," said commissioner of taxation Michael D'Ascenzo this week as he launched the new publication Tax compliance for small-to-medium enterprises and wealthy individuals.
This is the first time that the ATO has published detailed information on its approach to managing tax compliance risks for SMEs. 
"Those risks that attract our attention include things like where tax performance varies substantially from business performance, there are inconsistencies in activity statements or spikes in refund claims, or there are large one-off or unusual transactions," D'Ascenzo says.
"By publishing information on how we assess risk and what attracts our attention, we intend to provide more practical certainty for taxpayers.
The publication also details what SMEs and wealthy individuals can expect as part of an audit and review process, how to avoid or reduce the risk of administrative penalties, it also outlines the range of options available in resolving disputes with the ATO.
The ATO says that several characteristics may attract its attention, including:
<ul style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 10.909090995788574px;">
<li>tax performance varying substantially from business performance</li>
<li>inconsistencies in activity statements or spikes in refund claims</li>
<li>large, one-off or unusual transactions</li>
<li>tax and economic performance varying significantly from similar businesses in the same industry</li>
<li>unexplained losses</li>
<li>a history of aggressive tax planning by individuals or their advisers</li>
<li>weaknesses in compliance structures, processes and approaches</li>
<li>tax outcomes inconsistent with the intent of tax law</li>
<li>lifestyle not supported by after-tax income</li>
<li>treating private assets as business assets</li>
<li>accessing business assets for tax-free private use</li>
<li>not disclosing offshore dealings with overseas entities, especially low-tax jurisdictions and tax havens that allow banking secrecy</li>
<li>using complex structures and intra-group transactions to minimise tax</li>
<li>transactions where the tax and economic outcomes are inconsistent</li>
<li>poor governance and risk-management systems</li>
<li>distortions and inconsistencies in market valuations and apportionments</li>
<li>business performance falling outside small business benchmarks (for businesses with turnover of up to $15 million).</li>
</ul>
About 250 wealthy individuals face a review this year.
The ATO is watching 2,600 wealthy individuals but says there are a potential 3,000 who could also fit into the category.
In its overview of the SME market, the ATO says that “wealthy individuals are behind some of Australia's largest and most successful businesses.
“They employ many Australians and significantly contribute to our economy and tax revenue. They can operate their own self-managed super funds. Many take on a great deal of personal risk to build their businesses.
“Given their positions of influence it is important they do not take unacceptable risks when it comes to tax compliance,” says the ATO.
<a target="_blank" href="https://www.ato.gov.au/businesses/content.aspx?doc=/content/00129961.htm&amp;alias=smecompliance">The guide can be viewed online on the ATO website.</a>
 
 
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Wealthy property investors facing tax scrutiny as ATO launches new tax compliance guide

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A new tranche of 10 refurbished Sydney 7-Eleven service stations and attached convenience stores have been listed for auction on September 25.
The combined retail and service stations have held strong appeal for commercial property investors with two tranches – one in Brisbane and one in Sydney – selling at auction earlier this year, with yields ranging betwen 5.6% and nearly 7.7%.
Last year more than $90 million worth of refurbished 7-Eleven service stations sold at auction in a similar yield range, with many snapped up by self-funded retirees.
As with previous batches, the 10 Sydney stores comes with new 15-year leases plus renewal options and guaranteed 4% annual fixed rent increases.
The highest-earning service station in the new batch is a 1,688-square-metre site at 336 Georges River Road in Croydon Park in Sydney’s west, which has an annual rental of $280,000.
The Roselands and West Ryde stations earn the lowest annual rent, at $150,000 per year each. 
Other 7-Eleven service stations are located at Berowra (the biggest site measuring 3,174 square metres), Bexley, Campbelltown, Glendale, Kirrawee, Rockdale, Roselands, Rozelle and West Ryde.
The marketing campaign is being handled by Jones Lang LaSalle agents John Macree , Jeff Moxham, Anthony Bray, Leslie Cheng and Michael Ajaka.
Interested buyers can register their details at a <a href="https://www.joneslanglasalle24seven.com.au/">dedicated Jones Lang LaSalle site.</a>
The most recent auction of 7-Elevens was a tranche of six in Queensland in April this year.
Five of the six sold at auction, with prices ranging from $1.5 million for a 2,365-square-metre 7-Eleven service station in the north Brisbane coastal suburb of Sandgate to $2.35 million paid for a 3,700-square-metre service station in Springwood, south of Brisbane.
Yields ranged from 5.67% to 7.73%, similar to the 5.75% to 7.7% yields achieved following the recent successful auction of <a target="_blank" href="https://www.propertyobserver.com.au/retail/self-funded-retirees-continue-to-snap-up-nsw-7-elevens-service-stations-drawn-by-high-yields/2012032754031">10 NSW 7-Elevens</a>, where prices ranged from $2.2 million to $3.9 million.
<a href="https://www.propertyobserver.com.au/retail/self-funded-retirees-continue-to-snap-up-nsw-7-elevens-service-stations-drawn-by-high-yields/2012032754031">In March 10  NSW 7-Eleven service stations sold at auction</a>, with the assets again proving popular with retirees with self-managed super funds due to their high rental yields.
The 10 petrol stations sold in a price range from $2.2 million to $3.9 million, with yields ranging between 5.75% and 7.7% and an average yield of 6.81%.
The service stations are being sold as part of a sale program kicked off by 7-Eleven following its acquisition of 295 service stations from Mobil Retail in May 2010.
Since acquiring the Mobil business, 7-Eleven has been converting the Mobil stores into 7-Eleven service stations with attached convenience stores.
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Refurbished 7-Elevens service stations to tempt Sydney property investors with $150,000-plus rents

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Vacancy rates in most of our capital cities are relatively low. The national rate sat at 1.9% last month, but it’s been slowly rising throughout 2012.
Rental vacancies in or near mining towns are up and down, but what’s happening in our bigger regional cities?
Let’s take a look around the nation, according to figures from SQM Research.
In Queensland, Cairns is sitting on 1.6%, after dropping consistently all year. Townsville’s vacancy rate is higher at 2.8% – but both northern centres had four times those rates just three years ago. Closer to the mining areas, Mackay’s vacancy rate has plummeted to just 0.9%, and Gladstone is sitting on 1.2% with just 30 homes up for rent in July. Emerald’s rate is actually on the rise, all the way up to 0.3% – or 10 properties. The news is still bad from Moranbah, where the vacancy rate remains up in the stratosphere at 5.1% – the result of mining giant BMA’s dummy spit over high rents. Looks like most of the miners prefer to live in nearby Mackay. Closer to Brisbane, Toowoomba’s vacancy rate is stabilising at 1.1%, after dropping all year.
New South Wales’ biggest regional centres, Newcastle and Wollongong, have vacancy rates in line with the national average – 2.1% and 1.9% respectively. Head west of Sydney and it’s not so rosy – in Orange, where the 2011 census confirmed a substantial population drop, vacancy rates have climbed sharply to sit at 3%. Further west, Dubbo is still a star at 1.4%, as is country music capital Tamworth at 1.5%. On the north coast, Port Macquarie has dropped to 1.8% while Coffs Harbour remains relatively steady at 2.1%.
The vacancy rates in regional Victoria are consistently above the national average. Geelong dropped to 2.4% in July after a sudden spike in May. Ballarat’s vacancy rate also dropped in July, to 2.4%, after climbing all year – and it’s a similar story in Bendigo, where vacancies are currently at 2.2%. The rate for Albury-Wodonga, on the NSW-Victorian border, has also climbed to about 2% combined.
Head over to WA – the nation’s GDP powerhouse – and regional rental accommodation isn’t so easy to come by. Mandurah and Geraldton are both boasting low vacancy rates of 1.2%, but Bunbury’s rate is zero – and has been for nearly two years. Even Perth is leading the capitals, with a vacancy rate of 0.7%. It looks like we’ve worked out where everyone’s moving to! Only tiny Karratha appears to be bucking the WA trend, with an unusually high vacancy rate of 4.3%. Perhaps it will settle down after its massive growth spurt and construction phase.
In South Australia, Whyalla is coping well with its Olympic Dam demands (before yesterday's announcement that the mine expansion would not be going ahead) – the vacancy rate has dropped to 1.9%, down from nearly 10 times that figure just two years ago. Port Lincoln is down to 1.5%, while Port Augusta has been rising dramatically only to pull back in July to 2.1%.
Things are a bit crook in poor old Tassie. Vacancy rates have practically doubled in both Hobart and Launceston in two years, with Launceston still climbing and currently sitting on 3.9%. It’s good news for retiring baby boomers arriving from the mainland with smaller post-GFC nest eggs – but very bad news for existing investors. The 2011 Census also confirms Tasmania lost more people to the mainland in the decade from 2001, than it gained. It’s a long road ahead when their bright young sparks are all moving to… well, Perth and Mackay.
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a title="blocked::https://www.matusikmissive.wordpress.com /" href="https://www.matusikmissive.wordpress.com%20/" target="_blank">Michael's blog</a>or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>.
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Vacancy rates tight in Perth and Mackay, but other areas not so lucky

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Westpac and the Melbourne Institute's consumer sentiment index was recorded at 99.1 points for July, which indicates that consumer sentiment is close to the neutral mark where optimism and pessimism are equally weighted (i.e. an index reading of 100).
The consumer sentiment index continues to point to a higher level of pessimism than optimism despite the fact that there has been a significant decline in the standard variable mortgage rate over recent months (the index has remained under the 100 mark since March 2012).
The recent round of interest rate cuts commenced in November 2011 and since that time average mortgage rates have fallen by a total of 95 basis points. In October 2011, the month prior to the first interest rate cut, consumer sentiment was recorded at 97.2 points. Despite 95 basis points worth of interest rate cuts since that time, sentiment is just 1.9% higher. Consumers simply aren’t responding to lower interest rates in the way they have in the past.
Click to enlarge
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Clearly in the current economic environment of global and domestic uncertainty a lower interest rate environment is not proving to be enough to encourage a higher level of consumer optimism. Although there has been an improvement in all components of the consumer sentiment index over recent months, respondents are particularly pessimistic about family finances over the past year and over the coming year. This result suggests that although lower interest rates should ease financial burdens on families other factors are leading to lower expectations of finances. You could speculate that it is probably related to factors such as the carbon tax, political concerns both domestically and internationally, concerns of a Chinese economic slowdown and ongoing concerns about key European economies.
We also know that unlike conditions prior to the Global Financial Crisis (GFC) the behaviour of consumers has changed significantly. For starters, households are saving a lot more than they were previously. The household savings ratio was in steady decline since the mid-1970s and in 2003/04 households were actually spending more than they were earning (i.e. savings was negative). The household savings ratio has rapidly risen and has been above 8% since December 2008. Private sector thirst for credit, both housing and non-housing has also dried up. Total private sector credit growth was recorded at 4% over the year to May 2012 compared to typical annual growth over the past 20 years of 9.6%. Annual growth in housing credit is currently at a historic low of 5.1% over the year to May 2012 compared to typical annual growth of 13.4% over the past 20 years. Other indicators such as growth in spending on credit cards, housing finance commitments, retail trade and dwelling approvals are also reflective of limited demand from consumers to spend and a renewed focus on saving and debt reduction.
The lacklustre response to the significant easing of variable mortgage rates has repercussions for the housing market. Despite such a significant easing in mortgage rates, capital city home values have fallen by a further -2.2% since October 2011. It is important to note that values did increase by 1% in June and, based on the daily movements in the RP Data-Rismark Home Value Index, have now been trending higher over the past six weeks.
 
<hr class="system-pagebreak">
 
As the graph shows, over recent years consumer sentiment has been an important element of the performance of growth (or declines) in home values and, as a result, a sustained improvement in home values is likely to be dependent on a sustained improvement in consumer sentiment. Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/08/rpaug71.gif" title="Click to enlarge"><img src="/images/stories/2012/08/rpaug71thumb.gif"></a>
Sales transaction data lags our value data. However, volumes have also shown little response to date to a lower mortgage rate environment. As the graph shows, consumer sentiment and sales volumes have recorded quite a strong correlation in recent years. A sustained recovery in consumer sentiment is therefore likely to result in an improvement in residential sales activity. Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/08/rpaug72.gif" title="Click to enlarge"><img src="/images/stories/2012/08/rpaug72thumb.gif"></a>
Overall, cuts to mortgage rates take some time to filter through to the market, but capital city home values have now been increasing over the past six weeks. Sales volumes data which does lag is yet to show signs of a recovery and the amount of stock available for sale is slowly easing. We may well see further improvement in sales activity in the spring, which is typically a busier time for the housing market.
The key ingredient to an improvement in the housing market is likely to be an ongoing and sustained improvement in consumer sentiment, particularly a willingness to spend on high commitment purchases. This is likely to take some time, given the high level of caution being shown by consumers and the ongoing global economic uncertainty.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/08/rpaug73.gif" title="Click to enlarge"><img src="/images/stories/2012/08/rpaug73thumb.gif"></a>
Cameron Kusher is senior data analyst at <a target="_blank" href="https://www.rpdata.net.au/">RP Data</a>.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a> in July.
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Slow rise in consumer sentiment shows interest rate cuts no longer have same influence: Cameron Kusher

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The Queensland property market is set to improve in the second half of 2012, with signs it may already be on the upswing in many areas, but any recovery is expected to be gradual, according to the First National Real Estate 2012 Property Market Outlook Mid-Year Update. 
The Update, released this week, is based on a survey of the 400+ member network, and provides an insight on what member agents expect the market to do, drawing on their experience at a grass roots level. 
The change of government in Queensland is expected to build on the growing sense of optimism seen in the first half of the year. 
The main reasons for the positive predictions are interest rate reductions, the market having bottomed out and improved affordability. 
The key challenges facing the state’s property market are vendors adjusting their price expectations to meet market demand and consumer nervousness, along with rising costs of living, which are particularly relevant for the areas of Atherton Tablelands, Gold Coast, Sunshine Coast, Wide Bay Burnett, Darling Downs and Brisbane. 
Economic uncertainty, both for the state and overseas, coupled with the high Australian dollar, will serve to curtail confidence from a market and business and consumer perspective. 
While stamp duty reductions and lower interest rates have generated better buying and economic conditions, improving market confidence, the market itself is still relatively nervous, which is dampening what would have been an even greater market improvement. 
The Update says the strongest growth will come from the investor sector, followed by upgraders, then first-home buyers and lastly retirees. 
Investor activity in Queensland will be driven by greater returns on investment dollars and improved affordability with lower prices and reducing interest rates. 
Property prices should stabilise, with house prices faring a little better than apartments/strata and land prices, especially in the Darling Downs and Sunshine Coast regions, and some parts of Brisbane. 
The rental market in Queensland is expected to remain relatively strong overall, although this will depend on the region. 
Even with the improved market conditions, affordability remains an issue for many renters, especially in the area of Moreton, the Sunshine Coast and some parts of Brisbane. 
Interest rates are expected to reduce further, adding to improving affordability levels, stabilising prices, strengthening buyer confidence and stimulating activity in the slow property market. 
Rising unemployment and increasing living expenses, including the introduction of the carbon tax, are expected to put pressure on mortgage holders, with 57% of Queensland members expecting increased mortgage defaults in their region. 
The commercial property market is displaying signs of recovery, especially the Gold Coast’s office and industrial markets, where investors are locking in strong returns. 
The commercial property market in Queensland has moderated in recent times, with property prices remaining stable, and this is expected to continue for the coming six months. 
Construction for the 2018 Commonwealth Games, the election of Campbell Newman and the Gold Coast rapid transit project have delivered a life in confidence in the region. 
The strength of the mining and resources sectors is propping up the rural property markets in the state, where investors are expected to capitalise on strong rental markets. 
Activity in rural property markets will be driven by the key significant factor of commodity prices and value of the Australian dollar as it impacts on the state’s export potential.
Mike Gray is chairman of <a target="_blank" href="https://www.firstnational.com.au/">First National Real Estate Queensland.</a>
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Any Queensland property market recovery likely to be gradual

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Double Bay estate agent Michael Pallier will leave Raine &amp; Horne Double Bay after 11 years to head Sotheby's Sydney flagship after a three year absence from the Australian market.
''We know the overseas market has some exceptional properties but now we have the opportunity to showcase our finest to the world,'' Pallier told his local paper, The Wentworth Courier.
The first Sydney property to be listed under the Sotheby's brand will be a 2,000-square-metre estate on the Vaucluse waterfront with $25 million-plus price expectations.
The agency will compete with Christies International and Savills, the other international residential agencies with a strong presence in Australia.
Pallier says joining Sotheby's is a once-in-a-lifetime opportunity. He can't advise on the sign-up franchise fee or the ongoing commissions of possibly five percent or higher.
He was previously at Raine &amp; Horne Double Bay, having taken up real estate in late 1997 at McGrath after being a leading Mercedes car salesman. His clients from his car sales days have continued to deal with him including most recently, Stephen Brown, the boss of the 1st Fleet trucking company, and his wife, Corrine.
Pallier's earliest property listing in March 1998 was the Rose Bay unit of the retired ballet dancer Anna di Cardi for $420,000. His next listing was Radford, one of the two contemporary Point Piper waterfronts built on the Paradis sur Mer site, which sold to the Magid family at $7.35 million.
He left McGrath for Laing &amp; Simmons Double Bay and has been at Raine &amp; Horne since 2001.
"I have the highest respect for the Raine family and I would not have left for any other brand but this is Sotheby's and it's a chance to be part of a worldwide network,'' says the agent, who secured over $200 million in property sales in 2010-2011.
Pallier has signed an exclusive 25-year master franchise agreement with Sotheby's, and fellow Raine &amp; Horne Double Bay agents Warren Davis and James McCowan will join him at the re-activated agency.
McCowan will take up the role of Sotheby's NSW and ACT director of sales.
The Sydney office will be located at Double Bay, with additional offices planned in Sydney's north shore and CBD between 2013 and 2015.
It was in 2009 when the prestigious international art auction house sold its Australian arm to a rival company headed by Sydney businessman and auctioneer Tim Goodman that the real estate side of the company was closed.
This week Raine &amp; Horne Double Bay, led by principals Martin Maskin, Barry Goldman, Ric Serrao and Mark Goldman, beat off challenges from the likes of Raine &amp; Horne Gladstone and Raine &amp; Horne Darwin, to scoop most of the major office annual awards within the Raine &amp; Horne network including Top Office (Number of Sales), Top Office (Dollar Value) and Top Office (Auction Listings).
Mr Serrao grabbed second place in the Top Salesperson (Dollar Value) category and was runner-up in the Top Principal 
(Number of Sales) behind Raine &amp; Horne Charmhaven’s Andrew Sorensen.
“We’ve come a long way since our foundation as a small office with just four real estate agents in 2001,” says Mr Maskin.</body></html>

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Michael Pallier quits R&H to re-open Sotheby's Australian real estate office

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<img src="/images/stories/2012/08/6point01percent.gif">
The median rental yield for units in Darwin, according to Residex. The median unit rental is $470 a week, which is up 8.05% on a year ago.
 
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<img src="/images/stories/2012/08/5point94percent.gif">
The median rental yield for units in Canberra, according to Residex. The median unit rental is $485 a week, which is up 10.23% on a year ago. 
 
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<img src="/images/stories/2012/08/5point92percent.gif">
The median rental yield for units in Hobart, according to Residex. The median unit rental is $295 a week, which is up 11.32% on a year ago.
 
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<img src="/images/stories/2012/08/5point56percent.gif">
The median rental yield for units in Brisbane, according to Residex. The median unit rental is $375 a week, which is up 7.14% on a year ago.
 
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The median rental yield for units in Sydney, according to Residex. The median unit rental is $515 a week, which is up 13.19% on a year ago.
 
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The median rental yield for units in Perth, according to Residex. The median unit rental is $445 a week, which is up 20.27% on a year ago.
 
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The median rental yield for units in Adelaide, according to Residex. The median unit rental is $300 a week, which is up 3.45% on a year ago.
 
 
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The median rental yield for units in Melbourne, according to Residex. The median unit rental is $395 a week, which is up 9.72% on a year ago.
 
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<img src="/images/stories/2012/08/5point40percent.gif">
 
The median rental yield for units across Australia, according to Residex. The median unit rental is $415 a week, which is up 15.28% on a year ago.
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