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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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>
UK fashion retailer Topshop will open up its third Melbourne store in the new Myer Emporium, currently under construction in the CBD.
The lease agreement with Topshop was announced by the owner of the $450 million development, listed property trust CFS Retail Trust, as part of its annual results presentation.
News of the third Topshop lease follows <a href="https://www.propertyobserver.com.au/retail/topshop-set-for-second-melbourne-store-as-fast-fashion-retailers-expand-down-under/2012081456011" target="_blank">GPT Group revealing in its half-year results earlier this month that Topshop would lease space at its Highpoint Shopping Centre in Maribynong.</a>
Topshop opened its first Melbourne outlet on the Chapel Street strip in South Yarra in December last year.
CFS Retail Trust also revealed that another major international retailer is carrying out due diligence on a lease in Myer Emporium.
Emporium Melbourne is the Lonsdale Street component of the redevelopment of Myer Melbourne. The Bourke Street component was opened in March last year.
Emporium Melbourne will include 38,000 square metres of retail space and is scheduled for completion in late 2013.
CFS Retail Trust reported a net profit of $409.2 million, 23% lower than $532.6 million it reported last year.
The REIT owns a $7 billion portfolio of shopping centres including Chadstone Shopping Centre in Melbourne, Chatswood Chase in Sydney and the DFO chain.
Topshop is wholly owned by <a href="https://www.propertyobserver.com.au/retail/topshop-set-for-second-melbourne-store-as-fast-fashion-retailers-expand-down-under/2012081456011">Phillip Green from the Arcadia Group</a> and first existed in the basement of a Peter Robinson department store in 1964.
</body></html>

lschlesinger-FZcF9M3vE6

Topshop to open third Melbourne outlet in Myer Emporium

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Eight months ago self-promotional US real estate analyst Jordan Wirsz came to Australia to tell anyone who would pay to listen that Australian house prices would fall 60% over the next five years.
Wirsz’s outrageous claims even went further than US property bear Harry Dent, who has tipped a 50% slide.
Although not many people in the property market have heard of him, Wirsz’s contentions that Australian house prices would crash garnered headlines in the News Limited press of a “Bloodbath to hit Australian real estate”, while the ABC went so far as to call him a “global property analyst”.
His “bold predictions” about the Australian market can still be purchased for an $89 “enrolment fee”, but it appears that he now prefers to keep his opinions to himself.
“I have many 'thoughts' on the Aussie property market, but I’m really not all that eager to get into media debates again,” Wirsz tells Property Observer.
“I’d rather come back in a couple years and discuss it then.”
Well-known property market analyst <a target="_blank" href="https://www.propertyobserver.com.au/residential/us-doomsayer-jordan-wirsz-s-predicted-60-drop-in-aussie-house-prices-silly-analysts/2012020353244">Margaret Lomas debated Wirsz when he visited in February.</a>
She says she challenged him on his facts and Wirsz’s only response was to say they were “on the internet”.
It appears the Wirsz continues to cherry-pick stories about the Australia property market to justify his claims.
In March, Wirsz’s Facebook page linked to an article that appeared in Perth Now with the headline “Property prices battered: Top 10 worst hit areas revealed”.
Wirsz commented that “It happening just as predicted....”, although the article said that home prices had lost almost half their value in “some parts of Australia”, with an RP Data list of the top 10 median price drops in percentage terms for 2011.
His Facebook page profile picture shows Wirsz hugging American self-help author and motivational speaker Anthony Robbins.
Wirsz suggests he's achieved over $500 million in sales and advised Fortune 500 CEOs about real estate investments.
He describes his life so far on his Facebook page as “a storybook tale of rags to riches, overcoming the ever-so-common challenging childhood, and working hard to attain his massive successes”.
Other descriptions appear plucked straight from Charles Dickens.
He describes himself <a target="_blank" href="https://www.prweb.com/releases/Jordan_Wirsz/Dallas/prweb3988434.htm">on PRWeb</a> (a press release distribution website) as “having come from a broken home and spending much of his childhood alone, even calling 4-1-1- up to 25 times a day just to hear another human's voice, has decided to take his challenges and turn them into a passion for feeding the world his secrets to his extraordinary success”.
His Facebook page is full of motivational quotes.
He lists as his “awards” as “recognised by members of Congress, Senate, and state hovernment” and describes himself  as a “former fund manager, private capital financier”.
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US doomsday forecaster Jordan Wirsz now prefers to keep Australian housing crash predictions to himself

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Today I want to offer the community seven tips for investing in property. It was a challenge to list just seven because there are so many that I feel I could pass on – and I am very much a “beginner” investor myself!
That said, I genuinely believe that beginners can offer some of the best tips and advice to the market, for three reasons:
<ol>
<li>Beginners make the most mistakes. It’s true!</li>
<li>They are always making the “freshest” mistakes, so their advice is usually the most current. For example; new first-home owners’ grant changes and lessons learnt for those undertaking new loans around these</li>
<li>As less “seasoned” investors, beginners are more likely to be outraged by little stumbles they come across along the way, versus experienced investors who are less likely to be vocal about mild stumbles. This is also probably because experienced investors tend to make fewer mistakes. Or if they do, they are more obscure mistakes, and ones less relevant to new investors. For instance, dealing with a builder pulling out of a 20-unit development at the last minute. I would not imagine many young aspiring investors to find themselves in any kind of 20-unit development issues! </li>
</ol>
But it is not all about mistakes, sometimes the best tips to pass on are ones learnt from personal innovation. So today I’ll draw from actual personal experience, mistakes, successes, and learnings that I’d made in the first five years of my investment career.
1. Choose an investment strategy (and stick to it). I’ve put this tip first, because it is probably one of the first decisions you need to make (After, of course, you’ve made the decision to explore property investment to begin with!). Choose a strategy that is as flexible as you think you’ll need it to be, and one that is akin to your personal risk profile. Some investment strategies to consider include:
<ol style="list-style-type: lower-alpha;">
<li>
Buy-and-hold. This is where you grow a portfolio of numerous properties during an acquisition phase, then hold on to them for at least two cycles of the property market (so, at least 15 years, but ideally longer) and sell off most of the portfolio gradually as you get closer to retirement age.</li>
<li>
Renovate-and-hold. This is similar; you slowly acquire a portfolio of multiple properties over time but buy properties that are undervalued; do some cosmetic (or with more experience, non-cosmetic) renovations, then keep the property mid-long term, creating </li>
<li>
Flipping. This is in effect buying undervalued property, renovating as per above and quickly selling for profit. A strategy best used for more experienced investors due to the high costs associated with buying/selling property quickly. </li>
<li>
Property development. Again, more for very experienced and seasoned investors; this may be the area where some investors hope to end up in their career. Involves designing, building, selling (and/or holding) a development of units/townhouses etc from beginning through to completion. </li>
<li>
Create your own strategy! There is no “right” or “wrong” approach, provided you have a detailed strategy documented from the beginning, with clear goals in mind.</li>
</ol>
 
2. Build not just an invaluable “crew” around you – but an invaluable “network” as well. Many experts and seasoned veterans are quick to write at length about building your “crew” around you (key accountant, solicitor, broker, financier, tradespeople, and mentors). While this is of vital important, my tip is to think beyond these immediate people’s value and think to your peers and like-minded groups around you. Think networking. Attend property investment seminars, shows, and talks.
Have logins to the key blogs and networking sites and read/post on them regularly. The good ones (Somersoft Forums, for example) will have threads on virtually every topic imaginable within property investment. Also, if you don’t already have one, get a LinkedIn profile and search for some great user groups/communities that are actually freely engaging and blogging on specific topics within property investment strategy. I’m a member of several Linked In groups and would recommend these ones for those starting out:
<a href="https://www.linkedin.com/groups/Investment-Property-Australia-New-Zealand-2916736?gid=2916736&amp;trk=group-name" target="_blank">https://www.linkedin.com/groups/Investment-Property-Australia-New-Zealand-2916736?gid=2916736&amp;trk=group-name</a>
<a href="https://www.linkedin.com/groups/Real-Estate-Investment-In-Australia-2920696?gid=2920696&amp;trk=group-name" target="_blank">https://www.linkedin.com/groups/Real-Estate-Investment-In-Australia-2920696?gid=2920696&amp;trk=group-name</a>
<a href="https://www.linkedin.com/groups/PropertyWizz-Australia-2950747?gid=2950747&amp;trk=group-name" target="_blank">https://www.linkedin.com/groups/PropertyWizz-Australia-2950747?gid=2950747&amp;trk=group-name</a>
 
<hr class="system-pagebreak">
 
3.Run your numbers; then run them again. This is a very common-sense tip but one that must be mentioned. Run the buying/holding costs against current interest rates, but then run them again, a full three percentage points higher than the rates of the day. What you are doing is checking to see if you can still afford to hold the investment at these rates. If you can’t, you should reassess your plan of attack.
 
4. Target market should be at the heart of all you do. Another tip that falls under the “due diligence” category is this: “target market is king”. Property investment is a business, and as such you must treat your property(s) as your product that you are “selling”. What do I mean? Well, your ability to hold your first property cost-effectively (which in turn gives you good breathing space so you can buy your time, allowing equity to grow in this property, in turn allowing you to springboard to property number two, three, fourand beyond) is all dependent on your ability to get the maximum rent return for that property. How do you do this? You have to know who your target market for that property is and then play to that. For example, a one-bedroom apartment in an outer-suburban, family-focused market will not have much demand for it.
This means that even if you purchase this unit for a cheap rate, the rent you can command for it will also be dirt cheap, making it expensive to hold onto. Know who your target market is and who your ideal tenant will be for any property purchase and then play to it. The example I gave was an easy/logical one – but real life is much more blurry. For instance; in the middle to inner suburbs of a city, is it smarter to go for a small two-bedroom unit without parking or a larger one-bedroom with study/home office enclave, and parking? You need to know who your target market is beforehand.
 
5. Consider an early access clause when buying. This is most relevant for those looking to renovate and hold, or to “flip” a property. In most states and territories, settlement from the point of exchanging contracts to actually owning a property is typically up to six weeks. If you’re able to negotiate early access to a property before you actually retain ownership of it is a great way to save money.
Why? Because if you need to carry out any works on the property, you’d typically have to do this at settlement – which means you would need to be making mortgage repayments while you spend however long you need to tarting up the property. However, if the renovations are only light or “cosmetic”, these works can be carried out in a matter of weeks, and if you can do this work before actually taking ownership, you’re already ahead. Another tip within this, from a tax perspective, is to attempt to get any tradespeople or those sending invoices for work done to do this after you settle. If works are carried out and invoiced with dates earlier than the final settlement date, you may not be able to claim these works in your income tax assessment at the end of financial year.
 
6. Prepayment before end of financial year. Another tip, again around finance and works carried out, is to pre-pay any rates/levies/works by Jun 30th of that financial year for the year ahead. For instance, if you’re able, it can be better to be pre-invoiced for some repairs and renovation works that are to be physically completed in say September or October before June 30th, as a portion of your deduction entitlement will be attributed to that financial year instead of having to wait another nine months or so for tax deductable incentives.
 
7. Remove all personal taste from the picture. Sounds easy, but this can be one of the hardest things to do. I read a psychology whitepaper recently that was focused on the psychology of why human beings become so attached to the places they live in and the “sense of home” we attribute to bricks and mortar. Even with your “investor” goggles on, it can be sometimes hard to inspect a property and not start having thoughts about things you personally like or dislike. Instead, become like Neo in the Matrix – he sees the artificial world of the Matrix for what it really is – a series of computer programming code. Like Neo, you need to see the potential for profit and revenue from a property – and not the fact that you don’t like the curtains in the kitchen, for instance. Let’s say you’ve nailed down your list to two candidates – two great properties.
Let’s say they are outer-ring capital city apartments; both in the same suburb, on good/quiet streets, have similar quarterly outgoings, and on the market for the same price. One is a top-floor two-bedroom of 85 square metres, separate bath/shower, internal laundry, balcony, and lock-up garage. But the paint work is hideous, the bathroom tiles outdated, and the light fixtures yellowed with age, and the building is a not-too-pretty 1970s yellow-brick walk up. The second apartment is a two-year old modern apartment, 65 square metres, on the ground floor, with one bedroom only, no bath, and on-street parking only. But it’s pretty. It looks like the kind of place you could see yourself living in. Well that’s great, but you’re restricting your potential target market more with the modern apartment. It would be smarter to go with the one you think is ugly.
Most times, the aesthetic negative factors of a property aren’t a major issue to would-be tenants. And besides, cosmetic touch-ups are easier to sort out between tenancies once you are holding the property.
Cameron McEvoy is a NSW-based property investor and maintains a blog, <a href="https://propertyspectator.blogspot.com.au/" target="_blank">Property Spectator.</a>
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cmcevoy-Go82SmsJA9

Seven tips for beginning property investors

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This week's top sale was a four-bedroom Castle Cove house that sold for $4,075,000 at its weekend auction.
The Marston Architects-designed property was the subject of a hotly contested bidding war between two bidders, who pushed the price up from $3.6 million to its sale price.
The 2010-built house was sold by Adam First National agent Neil Adam in conjunction with LJ Hooker agent Heidi King. Adam describes it in its marketing as a "symphony of style and creative design". 
1. <a href="https://www.myrp.com.au/n/115-neerim-road-castle-cove-nsw-2069/myrp-490?propertyId=1774742">115 Neerim Road, Castle Cove, NSW, 2069</a>, four-bedroom house, sold at auction on August 18 by Adam First National for $4.075 million
2. <a href="https://www.myrp.com.au/n/7-davidson-avenue-warrawee-nsw-2074/myrp-490?propertyId=7311958">7 Davidson Avenue, Warrawee, NSW, 2074</a>, five-bedroom house, sold prior to auction on August 16 by L J Hooker Wahroonga for $3 million
3. <a href="https://www.myrp.com.au/n/26-bangalla-street-warrawee-nsw-2074/myrp-490?propertyId=7311244">26 Bangalla Street, Warrawee, NSW, 2074</a>, six-bedroom house, sold at auction on August 16 by L J Hooker Wahroonga for $2.5 million
4. <a href="https://www.myrp.com.au/n/5a-fortescue-street-chiswick-nsw-2046/myrp-490?propertyId=1854960">5A Fortescue Street, Chiswick, NSW, 2046</a>, four-bedroom house, sold at auction on August 18 by McGrath Estate Agents for $2.25 million
5. <a href="https://www.myrp.com.au/n/3-pine-avenue-camberwell-vic-3124/myrp-490?propertyId=10224553">3 Pine Avenue, Camberwell, VIC, 3124</a>, four-bedroom house, sold at auction on August 18 by Marshall White &amp; Co for $2.01 million
6. <a href="https://www.myrp.com.au/n/28-jackson-street-balgowlah-nsw-2093/myrp-490?propertyId=1222684">28 Jackson Street, Balgowlah, NSW, 2093</a>, five-bedroom house, sold prior to auction on August 17 by Belle Property Manly for $1.785 million
7. <a href="https://www.myrp.com.au/n/7-mooramie-avenue-kensington-nsw-2033/myrp-490?propertyId=3291921">7 Mooramie Avenue, Kensington, NSW, 2033</a>, four-bedroom house, sold at auction on August 18 by N G Farah for $1.782 million
8. <a href="https://www.myrp.com.au/n/7-sandpiper-place-kenthurst-nsw-2156/myrp-490?propertyId=14194683">7 Sandpiper Place, Kenthurst, NSW, 2156</a>, five-bedroom house, sold on August 14 by Rance Blamey Real Estate for $1.74 million
9. <a href="https://www.myrp.com.au/n/8-stirgess-avenue-curl-curl-nsw-2096/myrp-490?propertyId=2045057">8 Stirgess Avenue, Curl Curl, NSW, 2096</a>, four-bedroom house, sold prior to auction on August 18 by McGrath Estate Agents for $1.7 million
10. <a href="https://www.myrp.com.au/n/11-vears-road-ashburton-vic-3147/myrp-490?propertyId=9363102">11 Vears Road, Ashburton, VIC, 3147</a>, four-bedroom house, sold at auction on August 18 by Marshall White &amp; Co for $1.64 million
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cknowlton-QnEa6ntUYP

Castle Cove pips two Warrawee homes to claim week's top sale: RP Data

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We live in an information age.
In our fast-paced environment, how can we discriminate the good from the bad in the information-saturated Melbourne property market right now?
At James Buyer Advocates, when we produce a full value rating, we look at hundreds of pieces of information.
We split them into three categories.
Facts – such as a sale price
Opinions – such as the values placed on a home by the highest other bidder, the seller and your own pre-sale opinions
Fluff – uniformed or unsubstantiated advice or guides
Take one of the many property websites popping up, such as onthehouse.com.au, which last week said 45 Middle Crescent Brighton could sell for $1,967,900 to $2,089,900. The house sold for just under $3 million, so you’d be pretty disappointed as a buyer if you’d been relying on the site’s “guesstimate”. That wasn’t opinion, that was fluff. It was free fluff, but it was useless fluff. This home actually sold within the selling agents’ quote range.
When everything is blended as one, it is important to discriminate good from bad when making decisions.
In this faster world, facts, opinions and fluff can all blend into one, and they can all become information.
As a buyer, unless you live in a cocoon, the opinions that drive your decisions either good or bad are going to be affected by how you interpret the information you receive – facts, opinions and fluff.
We find that good decisions, and therefore good outcomes, are generally based on facts and informed opinion.
Bad decisions, which more often than not lead to bad outcomes, are made with the help of uninformed opinion and fluff.
Where it becomes tricky for many buyers is determining if a piece of information is a fact, an opinion or fluff.
Fact or fluff
As the world gets murkier – that is editorial versus advertorial – it becomes harder for buyers.
The Real Estate Institute of Victoria (of which we are a longer-term member) often gives the market facts and really well-informed opinion – but at other times it can give the market fluff.
Take, for instance, the last median results and the opinion on the market.  The REIV chief executive Enzo Raimondo (he’s OK, and we don’t get it right every day either) supported his latest market opinion stating that Balwyn had strongly improved in prices in the last 12 months and was nearly back at its peak in 2010.
The REIV claimed, as a fact, that the median quarter price in Balwyn has gone up by 26% in three months and that Balwyn tops the list at 20% for June median price quarter improvement in the last year.
“Wow,” you say, “That’s a fact – that’s useful and relevant information when buying in Balwyn”.
But is it a fact or is it just some fluff to fill some space?
Let’s look a little deeper into the star-performing suburb of Balwyn. Let’s check out the “facts”.
The REIV’s June quarter median was based on 43 sales – fully 25% had no sale price recorded next to them. Not just undisclosed. But blank. Agents voluntarily provide this information. So the REIV had to ignore a full quarter of the June quarter’s transactions to come up with its median house price.
Why so many unrecorded prices? Well, in a weaker market like we’ve got now, agents and sellers become reluctant to record all sale prices for reasons of ego or business.
 
<hr class="system-pagebreak">
 
According to the REIV, the median price for Balwyn this June quarter was $1,540,000. Where did the organisation get that price from? A median price is normally the middle sale – with half the sales below that price and half above it.  But there was actually no sale in Balwyn at that price.
The way the REIV came up with that price was to take a statistical average of the two middle sales. One of those sales was $1.37 million (40 Jurang Street with Jellis Craig) and the other was $1.71 million (6 Eyre Street with Kay and Burton). That’s a huuuuge gap, a difference of nearly 25%  – so some may say it’s a bit of a stretch to say Balwyn had a $1,540,000 median price based on those two sales.
What if one more of those mysterious Balwyn unrecorded price results had been recorded, and it was below $1,370,000? That would have made the “median” price in Balwyn to $1,370,000, and the median price “growth” would have dropped from 20% to 7%.
If another four or five of those undisclosed price sales had been in the lower half of the pool of results the median price results may well have been lower than the previous year’s median in Balwyn. In other words, what we may well have had is not an increase but a fall in price June quarter 2011 to June quarter 2012.
What if we compare the actual median price sale from the previous financial year with the actual median price sale this financial year just gone, using the REIV’s own data?
According to the REIV, there was a total of 132 sales (16 unrecorded) in Balwyn in 2010-2011, and the overall median sale was 117 Winmalee Road (Christopher Russell), which sold for $1.45 million.  In 2011-12 there was a total of 152 sales (29 unrecorded), and the median price was $1,302,500 for Grosvenor Street (Jellis Craig).
Comparing those two figures it shows a drop in values in Balwyn of around 10% in price between 2010-11 and 2011-12 ending this last June quarter.
That’s a big difference from that 20% increase presented as a fact by the REIV to support strong growth in Balwyn. And that figure of -10% tallies in a lot more closely with what we’ve been seeing at the coalface.
So is it a fact there was big median price increase in Balwyn or is it fluff?
If you are buying a home in Balwyn are you using the -10% or the +20% when assessing historical comparables to formulate your opinion on value and therefore make your “good” buying decision?
And, not to put too fine a point on any of the information you are looking at:
Is it fact?
Is it opinion (informed or uniformed)? or
Is it simply fluff?
Footnote: This article is not about the REIV (we’re members, we like and support the REIV). This article is not about Balwyn per se, because in Toorak 30% of house sales in the June quarter had no figure next to them and in Brighton there were more than 20 sales in the June quarter that had no recorded price (we do not mean undisclosed, we mean no price at all). This article is about the quality of the information you are using to make good long-term home-buying decisions.
Mal James is principal of<a target="_blank" href="https://www.jamesbuyeradvocates.com.au/" title="James Buyer Advocates"> James Buyer Advocates</a>, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.</body></html>

maljames-vHwm28JUAa

How to separate facts from fluff about Melbourne’s property market

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Chasing yielding in the range of 8 to 10%, property syndicates have emerged as the dominant player in WA’s commercial property market in 2012.
They are accounting for more than half of all major commercial sales and continuing to look for opportunities, according to Knight Frank.
The company recently sold 1 Adelaide Terrace (pictured below), which is being syndicated by GDI Property Group for $102.55 million. It sits adjacent to the 40-hectare urban renewal project called Riverside that will extend Perth's CBD grid down to the waters edge. The property fund manager GDI launched the unlisted GDI No 36 Perth CBD Office Trust earlier this month seeking to raise $65 million of equity.
<img src="/images/stories/2012/08/1adelaide3.jpg">
GDI suggested its purchase of $102.55 million from Fortius Funds Management reflected a yield of more than 10%.
The 1 Adelaide Terrace property is an A-grade office building totalling 19,825 square metres that was when offered earlier this year 95% leased to five blue-chip office tenants, including the WA government and ASX-listed companies.
The award-winning seven-storey building formerly the headquarters of Woodside was built with large floor plates ranging from approximately 2,500 to 3,000 square metres.
<img src="/images/stories/2012/08/1adelaide4.jpg">
The building has an extensive curved glazed façade with views across landscaped parklands to the Swan River.
The prominent location will be further enhanced with completion of the Frasers suites development directly opposite and the proposed Waterbank project.
It followed on from other significant syndicator purchases of 255-267 St Georges, which sold for $26.7 million.
Another syndication came at 251 St Georges Terrace, which sold for $61.3 million.
Knight Frank managing director John Corbett says syndicates have always been active in the Perth market, but in 2012 they have become the truly dominant player across both the commercial and industrial sectors.
He says while individual developers and private investors struggled to obtain financing in the current market, syndicates are able to bring together a myriad cashed-up smaller investors to secure larger properties.
“The market is working in the favour of syndicators like GDI and Primewest, who have established track records and have excellent data bases of potential investors,” Corbett says.
“Many smaller investors are being frustrated by the lack of quality properties in the $1 million to $5 million range, so the option of being part of a larger purchase is quite appealing.”
“At the same time the traditional competitors for the larger properties are being restricted by issues like flexibility and bank financing.”
Corbett says small investors are also able to secure better yields as part of a syndication, with yields in the range of 8-9% currently being achieved.
“It is still very much a buyers' market, and the syndicators are making hay while the sun shines,” Corbett says.
“The large super funds and other investors will soon be getting more aggressive with their strategies, but for now the syndicators are cherry-picking the best deals.”
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jchancellor-FAypfDUnLy

Chasing yields of 8 to 10%, property syndicate investors seek Perth offices

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Wyong on the NSW central coast had the highest population growth from domestic migration for all of the greater Sydney municipalities between in 2010.
But the spurt was confined to Wyong's north-east precinct, where there were 6,450 domestic arrivals and 4,987 domestic departures, giving a net migration jump of 1,463 people. The south and west precinct had slower growth of just 167 people.
The north-east now has a population of 77,757, according to the 2011 census, and 33,361 private dwellings. It has had net gain in migrants every year since at least 2006.
The population is somewhat skewed towards younger people, with the age brackets from 0-19 representing the greatest proportion of residents.
Some 6.7% of the population are university educated, well below the state average of 14.2%. Census data shows 83.2% of the population are Australian born, compared with a state figure of 68.6%. The next most common country of birth is England at 4.1%, slightly higher than the state figure of 3.3%. 
A Wyong Council spokesperson says people are likely attracted to Wyong by its relatively inexpensive house prices.
"What would bring people here would be cheaper house prices than the Sydney market. That would be the major one. The fact you can live in a coastal area with a family and if need be it’s only 1.5-hour commute to Sydney every day via a train service or a drive along the freeway," he says.
RP Data says the median house price in Budgewoi, one of the larger localities in the area, is $278,250, with a median weekly rent of $300.
"There are three new housing developments in the area in suburbs like Wadalba, Hamlyn Terrace and Woongarrah. Developers are developing greenfield sites on traditionally semi-rural hobby farms," the council spokesman says.
"They're predicting in 10 to 15 years it will almost become a satellite city of 40,000. Obviously there's not that many people there at the moment, but they’re our three new areas"
In Hamyln Terrace, a four-bedroom, two-bathroom house on 678 square metres (pictured below) is listed for $390,000.
<img src="/images/stories/2012/08/wyong1.jpg">
Another three-bedroom, two-bathroom home is listed for rent at $415 a week
<img src="/images/stories/2012/08/wyong2.jpg" width="470">
The area was followed by Camden in outer south-western Sydney, with 4,748 domestic arrivals and 3,535 domestic departures, giving a net gain of 1,213 people; and The Hills Shire North in Central Northern Sydney with 5,274 domestic arrivals and 4,269 domestic departures giving a net figure of 1,005.
In the whole of Sydney there was a net loss of 20,249 people due to emigration, as 347,335 people immigrated from within Australia and 367,584 emigrated to other parts of Australia.
The figures represent the largest increases in population due to domestic migration and do not include births and deaths.
Canterbury in Canterbury-Blacktown was the area in Sydney with the greatest number of people leaving, with a net migration loss of 2,570. In fact Canterbury topped the list in Australia for the area with the highest net loss due to migration.
Fairfield East in Fairfield-Liverpool was next with a net migration figure of -1,468, followed by Randwick in the eastern suburbs with a net figure of -1,464.
The ABS data is experimental and is the first time it had been published on an statistical local area level. For some regions with very small populations and unreliable data, internal migration estimates were assumed to be zero.
Net regional migration is the net gain or loss of population through the movement of people from one location to another location within Australia.
The ABS found just over 2 million people moved between statistical local areas during 2010, which was 1.6% lower than in 2009.
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awalsh-7Ub9EypybQ

Wyong's attractive low prices on Sydney's outskirts triggers population spike

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The decision to "staple" the management and the assets of Australian listed property trusts in one vehicle in the lead-up to the GFC created a sector more likely to make riskier investments, US academics have argued in an RBA discussions paper.
In a paper titled Securitization and the Commercial Property Cycle, Tim Riddiough from the University of Wisconsin Madison and Frank Packer from the Bank for International Settlements note that Australia’s listed property sector (A-REITs) was among a number of countries including the UK, US and Canada that have been "significantly more volatile than the benchmark market indices".
The benchmark S&amp;P/ASX300 A-REIT Accumulation Index  produced an annual return of -55.3%  in 2008 in the wake of GFC as investors abandoned the A-REIT sector.
The report by Riddiough and Packer notes that there was both a dramatic increase in the proportion of office properties incorporated into Australian real estate investment trusts (A-REITs) in the years leading up to the GFC as well as even more dramatic rise in the number of trusts that were "stapled" – where asset management is carried out by an entity within the overall REIT structure.
The ASX describes a stapled security “where the trust that holds the assets and the company that manages those assets are bound together through one vehicle”.
The stapling of listed property trusts in Australia allowed them to “take on more property development risk than under a traditional limited property trust (LPT) model”, the paper argues.
According to the paper, between 2000 and 2005 the degree of securitization of office markets via REITS increased markedly rising from around 5% in 2000 to over 35% in 2005.
Then from between 2004 and 2007, “stapled” REITs grew from 29% to over 75% of overall A-REIT capitalisations.
Examples of stapled A-REITs include Westfield, Westfield Retail Trust, Mirvac, Charter Hall Group and Stockland.
A full breakdown of which A-REITs are stapled <a href="https://www.asx.com.au/products/managed-funds-product-list.htm" target="_blank">can be found on the ASX website</a>.
The report notes that only Australia among the listed Asia-Pacific countries has significant internal management, in large part due to the introduction of stapled REITS.
It says that external managed REITs are viewed as “significantly less informationally opaque” than internally managed REITs.
“And given the prevalence of the external REIT structure in Asia, it appears that in the case of these countries, the benefits of external advisorship outweigh the agency costs.”
The report also reveals that Australia has the highest proportion of securitised office assets in the world, with the latest estimate of around 19% of its office market securitised via REITs.
However it notes – and reflecting the deleveraging which has occurred since the GFC – that this number is itself “well below 32% scored earlier before the bust in prime real estate markets during of the global financial crisis”.
The report reveals that US dominates the international REIT landscape, with nearly 180 listed REITs amounting to $455 billion or more than half of total global REIT market capitalisation
Far behind that, yet well above any other country, Australia has 57 listed REITs with $82 billion market capitalisation, occupying 10% of total REIT market capitalisation.
Australia first REIT –  shopping centre and industrial property group GPT –  was listed in 1971.
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'Stapling' of REITs creates riskier investment approach: RBA seminar paper 

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<img src="/images/stories/2012/08/3point95percent.gif">
 
The rental yield for houses in Melbourne, according to Residex. The median house rent is $420 per week, and this is up 10.53% from the same time last year.


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The rental yield for houses in Sydney, according to Residex. The median house rent is $555 per week, and this is up 5.71% from the same time last year.


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The rental yield for houses in Adelaide, according to Residex. The median house rent is $350 per week, and this is up 4.48% from the same time last year.


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The rental yield for houses in Perth, according to Residex. The median house rent is $450 per week, and this is up 15.38% from the same time last year.


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The rental yield for houses in Canberra, according to Residex. The median house rent is $525 per week, and this is up 9.38% from the same time last year.
 
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The rental yield for houses in Hobart, according to Residex. The median house rent is $340 per week, and this is down 2.86% from the same time last year.
 


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The rental yield for houses in Brisbane, according to Residex. The median house rent is $425per week, and this is up 10.39% from the same time last year.


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The rental yield for houses in Darwin, according to Residex. The median house rent is $560 per week, and this is up 7.69% from the same time last year.
 
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The rental yield for houses Australia-wide, according to Residex. The median house rent is $405 per week, and this is up 8% from the same time last year.
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Melbourne's 3.95% is lowest of capital city house rental yields: Residex state-by-state analysis

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Pittwater at the far end of Sydney's northern beaches and Campbelltown in the outer south-west have been the strongest-performing rental markets in and around Sydney over the year to June, according to research by PRDnationwide.
Pittwater and Campbelltown units recorded annual rental increases of 16.3% and 14.8% respectively over this period.
RP Data shows that Pittwater units have a weekly rental of $320 while Campbelltown has a median weekly rental of $305.
There was also double-digit rental growth in Shellharbour, the southern beachside suburb of Wollongong and in Lake Macquarie, about 150 kilometres north of Sydney as the outer ring of Sydney and outer parts of the greater metropolitan region (GMR) experienced strong growth in median rent prices.
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Source: PRDnationwide
The top-performing Sydney housing rental market was the inner-west suburb of Canada Bay, about 11 kilometres from the CBD. Canada Bay and Maitland (in contrast to its unit market) were the only two localities to manage rental growth in excess of 10% for the 12-month period.
Overall, house rents in Greater Sydney, which includes municipalities between Sutherland in the south and Wyong in the north, increased by 4.5% over the period, compared with a rise of 5.6% for the state.
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Source: Housing NSW
For the standard three-bedroom house, the top performers were Hurstville (7.3%) and Shellharbour (7.1%).
"Interestingly, the northern part of the greater metropolitan region (GMR), which includes the central coast and Hunter regions, dominated the top-10 list for a three-bedroom house, with five entries," notes PRDnationwide.
The Mosman, Woollahra and Waverley municipalities recorded the highest median rent.  These municipalities capture some of Sydney’s most dense suburbs, and Mosman and Woollahra are among the most exclusive.
Woollahra has a median weekly rent of $1,275.
“The high rent prices are the result of scarcity in detached houses in these locations, and their proximity to iconic beaches, the Sydney CBD and vibrant commercial centres,” says PRDnationwide.
The five areas to record a decline in detached housing rent – Wollongong, Lane Cove, Botany Bay, North Sydney and Woollahra – reveal a shift toward affordability, says the property group.
In North Sydney, the median rent for a house declined by 10.8% over the 12 months between June 2011 and 2012.
“In the Botany Bay LGA, the decline in the median house rent may be linked the rise in medium density developments, with tenants preferring modern apartments over mostly older house stock,” says PRDnationwide.
The strong increase in rent on the outer parts of the greater metropolitan region is also linked to the search for affordability, with the high rental growth areas of Shellharbour, Wyong and Cessnock also identified in the most affordable in the Sydney greater metropolitan region.
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