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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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>
Regional areas have outperformed capital cities in the year to March, according to ANZ, but not a single region in Tasmania recorded positive house price growth for the year to March.
"Despite being lower in annual growth terms, regional house prices have been more stable than capital city house prices, which have seen larger price falls across all major states and territories," notes the Australian Housing Chartbook.
"While regional house price growth in most states have been dispersed between increasesand decreases, Tasmania’s regional house prices were all lower in the year to March 2012, reflecting the relativelysoft economy and weak labour market conditions."
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/07/anzjuly101.gif" title="Click to enlarge"><img src="/images/stories/2012/07/anzjuly101thumb.gif"></a>
 
Source RP Data, Rismark, ANZ
 
</body></html>

cknowlton-QnEa6ntUYP

All Tasmanian regions recorded negative house price growth for the year: ANZ 

<html><body>
Regional areas have outperformed capital cities in the year to March, according to ANZ.
"Despite being lower in annual growth terms, regional house prices have been more stable than capital city house prices, which have seen larger price falls across all major states and territories," notes the Australian Housing Chartbook.
"Across states/territories and regions, house price growth has continued to differ, reflecting varying economic performance across Australian industries."
"House price growth in WA regional centres has counter-intuitively been the weakest, with house prices in many centres lower in the year to March," says the report.
"While we continue to expect continued divergence within South Australia and ACT regional housingmarkets, a broadly soft economic outlook for the South Australia and ACT economies combined withrelatively balanced housing markets should contain house price growth in the coming year across most regions."
Click to enlarge
<a rel="shadowbox" href="/images/stories/2012/07/anzjuly10.gif" title="Click to enlarge"><img src="/images/stories/2012/07/anzjuly10thumb.gif"></a>
 
Source RP Data, Rismark, ANZ
 
</body></html>

West Coast and Barossa Valley lead SA house price growth, with sour grapes for McLaren Vale owners: ANZ 

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To build a successful property portfolio, you will need a team of experts to help you on your way. You will need advice on researching, choosing, buying, financing and maintaining a successful investment property.
A buyers’ advocate is only one part of a team of trusted professionals you will need behind you if you are going to take building a property portfolio seriously. You will need a trusted accountant, a knowledgeable solicitor, an experienced conveyancer, a good mortgage broker and possibly some good tradespeople who you know you can rely on to make repairs or enhancements to your properties.
If you are in a relationship, it is also important that your partner is understanding; preferably someone who understands and actively supports what you’re doing, who also understands the market and can help you make judgements about individual properties, and can act as a sounding board and voice of reason when you are starting to get too attached to a property. That person should also understand your need to disappear for hours at a time to view properties on the weekends, not to mention hours trawling through the internet every day. It would be great if your partner joined you in your endeavours, or you split the work.
I’m lucky. I have a very understanding partner who trusts my judgement when it comes to our investment decisions. Of course, it helps that I’m in the industry!
If you are making investments with a partner, that person at least needs to be comfortable that the decisions you make will be for the good of your shared future together. He or she has to be confident that you know what you’re doing.
Money already causes too much friction in long-term relationships. You don’t want to become a property investor at the cost of your partner or family.
Building your team
Behind every successful property investor is a dynamic support team of professionals from real estate and other fields.
I recommend setting up a team of the following professionals:
• A property mentor. A property mentor will help keep you on the right path. Your mentor might be a buyers’ advocate who has invested successfully in her own property portfolio and has purchased hundreds of properties for clients.
• Family or friends. Do you have any millionaires in your family or circle of friends who have made their money by successfully investing in property? If the answer is yes, you may be able to call on them for some help.
• Solicitor. Your solicitor should be someone who specialises in property investment, and whom you trust to look after all your conveyancing and other legal requirements.
• Financial planner. A financial planner will oversee your long-term financial strategy, advise on matters such as superannuation and ensure that you and your assets are protected against ill health or periods of unemployment. (However, be wary of financial planners who try to get you to buy into property from which he gets a commission.)
• Accountant. Your accountant should be someone who understands tax legislation and can use the laws to your best advantage. Your accountant should also be able to advise you on the best way to structure yourself financially, and about keeping your own financial records. Ideally, she should have used the same strategies to set herself up as she are recommending to you.
• Mortgage/finance broker. Your mortgage broker should be a specialist who is up to date with the lending criteria of a wide variety of lenders and who can advise you on how best to structure your loans to help you leverage into multiple properties.
If at any point you find you know more than any of the professionals in your team, it’s time to replace them!
<img src="/images/stories/rightpricecover.jpg" style="float: left; margin: 5px;">
Melissa Opie is known as "The Property Lady" and is founder and managing director of Keyhole Property Investments and helps everyday investors make decisions tailored to their names. She is the author of Find the Right Property, Buy at the Right Price, which is <a target="_blank" href="https://au.wiley.com/WileyCDA/WileyTitle/productCd-1118188020">published by Wiley</a>. This is an excerpt of Find the Right Property, Buy at the Right Price.
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mopie-oqKqoZWZ7D

How to build a successful property investment team

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The Australian housing market is showing signs of stabilisation after a period of softness and barring a global economic calamity, house prices should rise by around 4% to 5% per annum over the next two and a half years, according to ANZ. 
The report also expects a pick-up in currently weak levels of sales activity in 2013 due to low interest rates and the possibility of further rate cuts, encouraging first-home buyers back into the market.
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“In the absence of a sharp global economic downturn and escalating domestic unemployment, improving housing affordability, solid household financial positions and strong housing market fundamentals should support modest house price growth into 2013,” says ANZ in its July Australian Property Housing Chartbook compiled by economists David Cannington, Paul Braddick and Ivan Colhoun. 
“While previous structural and policy drivers have now been capitalised into house price growth, we expect prices to increase at a moderate 4% to 5% in annual terms by the end of 2014,” they say. 
The report notes the slowdown in sales activity, with home sales levels running at around 100,000 per month, well below the pre-GFC peak of 140,000 per month and tracking below the 120,000 per month recorded in 2009. 
“While auction clearance rates and days on market have shown some improvement more recently, they also remain well below recent peak levels, suggesting continued divergence between the expectations of home buyers and vendors,” says ANZ. 
“With ongoing softness in house prices and escalating uncertainty around the prospects for the global economy, the outlook for housing market sales continues to look weak over the second half of the year. 
“However, recent interest rate cuts and the potential for further rate cuts should drive improvements in housing affordability, eventually rousing market sales activity from the current lows, especially for first home buyers,” says ANZ. 
The report notes that with the exception of the smaller markets of Darwin and Canberra, house prices have weakened across all other capital cities in the year to June 2012. 
However, ANZ notes the extreme volatility in house prices in 2012 to date, particularly at the high end of the market. 
“House price falls from peak to May 2012 for the most expensive 20% of suburbs have been more than double price falls for remaining 80% of suburbs. This has most likely reflected the negative impact on house prices of increased volatility in equity markets and weak consumer sentiment,” says ANZ. 
An aggregation of housing data from the ABS, RP Data-Rismark and Residex shows that from their peak, house prices for the most expensive houses (the top 20%) have fallen 7.8% while those in the middle 60% have fallen 4.4% and the cheapest hoses (the lowest 20%) have fallen 4.5%.
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Despite weakening in recent months, the report notes that the Sydney dwelling prices (both houses and units) market has outperformed the other capital cities since the peak of the current price cycle in late 2010.
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ANZ attributes this strength to “the increasing pressure of stronger population growth on weak housing construction and a degree of resilience after an extended period of prior price underperformance in houses and especially units”. 
Sydney’s housing market has been assisted by having the biggest housing deficiency of all the other states – a shortage of four houses for every one built.
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Despite experiencing the largest falls over the past year, ANZ says Melbourne housing remains the least affordable across Australian capital cities. 
ANZ says that strong growth in WA household income and weak house price growth has aided Perth’s housing affordability, with the city now ranked sixth least affordable across Australian capital cities compared with equal first least affordable before the GFC.
 
The report also notes an improvement in housing affordability driven by softening house prices, rising household incomes and lower mortgage rates, which ANZ says has been reflected in improved consumer expectations of the best time to buy a house and lower mortgage delinquency rates through 2012. 
“Previous episodes of improving housing affordability (in the early and mid-’90s) were largely driven by significant reductions in interest rates (and steady growth in household incomes). 
“With interest rates at relatively low levels and expectations of moderate growth in household income, improvements in housing affordability through 2012-13 are expected to be driven more by household income gains and weaker house prices than in the past,” says ANZ. 
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lschlesinger-FZcF9M3vE6

Australian housing market stabilising, with 5% capital growth expected to 2014: ANZ

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You may have seen various job listings advertising a job in real estate as a sales agent.  They are usually adorned with wording to the effect of:
<ul>
<li>Want the chance of earning $100,000+ in your first year!?</li>
<li>Passionate about real estate?</li>
<li>Like working with people and have great communication skills? </li>
</ul>
They are all questions most of us would be able to answer with a positive response. 
After all, everyone wants to earn a healthy wage.
Nearly all jobs require good communication skills, and as for a passion for real estate? Well, it's quite simply essential to our daily needs!  A place for shelter, but also a place to express our territorial instincts, adorning our homes with elaborate renovations played out in both reality and fantasy – either with a trip to Bunnings or through the guilty pleasure of watching one of the many top-rating renovation shows on TV. However, what is the life of a real estate sales agent really like?
Does it live up to the hype?
Is it possible to earn wages in excess of $100,000 working for your passion, while at the same time enjoying working in the community? Well not surprisingly like most jobs, the fantasy is hardly representative of the experience.  It’s well known most people have a low opinion of real estate sales agents. There’s even an ad doing the rounds that states: 
''My son is dead – well... he's a real estate agent.'' 
Sales agents are branded as untrustworthy and “slimy”, driving around in their fancy cars, which many imagine have been purchased with overly fat commissions taken from innocent vendors for what most perceive to be minimal work. 
So I thought I’d break from the norm this week and take a look at the reality behind the life of a sales agent, because once again we’ve had the annual Readers Digest 2012 list of most trusted professions released on which real estate agents barely make the cut above car sales people.  In fact they sit just one step above sex workers, which leads to the question: “why would anyone take their clothes off in front of someone they trust less than a real estate agent?”
Having worked as a buyers’ agent for many years, it’s not uncommon to get many customers signing up for the service simply because they don’t want to deal with the sales agents.  For the buyer at least, when they meet a sales agent, there’s this uncomfortable feeling they’re “out to get you” – or at least empty your wallet.  It was interesting to see an article in New Zealand’s <a href="https://www.stuff.co.nz/sunday-star-times/latest-edition/7160120/Agents-fear-home-truths" target="_blank">Sunday Star Times</a> debating whether sales agents should be required to tell the truth when representing a property to buyers. In the article, Helen O'Sullivan, chief executive of the Real Estate Institute of New Zealand, was reported making a submission to Parliament that the: “Consumer Law Reform Bill could cause ‘confusion’, rather than protect consumers”.   
It follows the premise that sales agents may not always know the truth regarding a listing with one of their agencies.  However, no one’s asking an agent to convey information they don’t know.  Even if a piece of information relayed to them by the vendor is false, it’s not lying to pass it on – it’s down to the buyer to conduct their own due diligence when it comes to assessment.  After all, few would consider splashing a couple of grand out for a flat-screen TV or laptop without doing a comparative analysis of competing offers.
Thankfully – in Victoria at least – the Estate Agents (Professional Conduct) Regulations 2008 - SECT 11, states
<a href="https://www.austlii.edu.au/au/legis/vic/consol_reg/eacr2008464/s11" target="_blank">“An estate agent must at all times act fairly and honestly and to the best of the agent's knowledge and ability in the performance of the agent's functions as an estate agent.”</a>
All this aside, all you really need to understand as a consumer is: the selling agent works for the vendor. While you won’t get lies, you won’t get the “negative” side of the story, either.  No property is perfect – beauty is firmly in the eyes of the beholder – however the sales agent is there to represent the positive, not to point out the flaws. 
Is it worth coming bottom of Readers Digest polls? 
Well for some, the answer is undoubtedly “yes” – however easy it’s not.  There’s no doubt sales agents are somewhat compromised through the “commission only” model – or even the current alternative “flat fee” model.  After all, they’re not going to get paid unless they sell the property – even if that means a little “vendor crunching” along the way – and in truth, most vendors have high expectations.  What’s the alternative?  Perhaps a “pay by the hour” model – pay for service, and take commissions out of the equation. 
To last the road, a sales agent must build trust with their vendors.  Without it, building up a referral database (the main source of business for any agency) would be impossible.  Therefore, existing on a roll call of needless exaggerations is simply not a reasonable strategy no matter what the perception. 
Not only this, the common perceptions of real estate agents not working hard are far from the mark (at least for those who desire to be successful). I've often pondered that the advert for employment as an agent’s representative should begin: 
“Are you prepared to give up your weekends for the foreseeable future?” 
Because a career in real estate - especially when you start – will ask you to do precisely that!
Saturday's will be spent opening houses, conducting auctions (especially if you live in Melbourne or Sydney), trying desperately to tie up a deal so you can report a positive result to the boss during the traditional Monday morning sales meeting. But it's not just Saturdays you'll give up.  Many vendors also expect their agents to be on hand Sunday as well!   This means while everyone else is kicking back spending time with the family in shorts and thongs (well, in the summer months anyway!), the local agent will be standing in suit and jacket – rain or shine – donning a smile and welcoming house shoppers and nosey neighbours who only get the weekends to take a squiz at their short list of homes. But don’t agents get a week day off to compensate? 
Well yes, most do, but bear in mind while the agent may have a week day reprieve, it doesn’t mean the phone will stop ringing!
A real estate agent’s business is largely conducted over the phone.  Friday may be their day off, but no one else will know it.  You may think an agent should just turn the phone off? It's very hard to do when you work in a job solely reliant on commissions.
Turn the phone off, and the buyer calling may decide to contact someone else in the office about the house they're interested in. If so, you won’t get the commission should they purchase. 
And even worse – what if it's someone calling for a “free” market appraisal – a potential seller? Well that’s a call you can’t afford to miss.
 As for the open home, well merely conducting the operation is a joy to behold.  Most agents have as little as 15 minutes to get from one listing to another and against all odds, they can't risk being late! (Not an easy task for anyone who may have noticed that weekend traffic is often worst than that during weekdays.)
The vendor is essentially the agent’s boss, so they won't be happy if the agent doesn't show up for work on time.  Especially when they’ve spent the last three hours scrubbing and cleaning in an effort to create a show home masterpiece – all for the sake of a 30-minute open. 
Should an agent dare to leave more time in between opens, once they get to open number nine, they’ll be an unhappy vendor wondering why their property is not being opened until 5pm, when everyone else has knocked off for the night. 
The 15 minutes must also include finding a parking spot at each end of the street and popping the “open for inspection” boards out (if you live in an area that allows them).  For the sake of timing this often requires stopping mid road switching the emergency lights on whilst struggling with a board flapping in the wind. 
Struggling with the keys ,setting out the brochures and switching all the lights on – more often than not, with a queue of impatient buyers waiting outside to hand out names and numbers (which often turn out to be false) is another “perk” of the job. 
As a sales agent, you’ll have to don a permanent smile while at the same time, pretending the train line running so close behind the house that the whole place rattles as it passes isn't really a negative because you can't hear it when the windows are shut and after all – it’s so handy being close to the station! 
Situations like this are all part and parcel of the job.
 
<hr class="system-pagebreak">
 Nor does an agent turn off in the evenings.  Work hours prevent most buyers from conducting private inspections during daylight hours. Yet if they're interested enough to purchase a property, a private inspection is often a must. This means the agent will be required to work late – long after other workers have clocked off. 
 
The agent’s mobile phone number is present on every advert – and most agencies will require the agent to use their existing mobile for business (few provide an office phone) therefore it’s also their personal “out of hours” number. 
Most of us wouldn’t give out mobile numbers unless it was to a personal contact – someone we generally wouldn’t mind contacting us out of hours.  However an agent happily hands his number to hundreds of people each week knowing full well there’ll be a proportion of those buyers who’ll take full advantage of the privilege. As I said earlier – it’s all well and good turning the phone off – however miss a call and you risk missing potential commission from an active purchaser or seller.
But let’s get to the crunch – what about the $100,000+ a year wage?? Contrary to popular belief, most sales agents are on no more than $60,000/$70,000 a year, and when they initially enter the business, the starting wage is more like $30,000 to $35,000 per year.  This is because an agent typically works for a minimum retainer, which when I last checked is little more than $500 per week. 
The retainer must cover most expenses, including a smart car and expensive-looking suit – (a well accepted requirement in the industry to at least give the impression of professionalism and expertise.) Therefore it will come as no surprise to learn many agents’ cars are leased, not owned, and the younger ones (in their 20s) usually still live at home.
As for the retainer, well in essence it's little more than a loan. Once a commission is earned, any wages received in the interim will be deducted before it's handed over to the agent.  Remember sales commissions aren't commonly paid until settlement, therefore the lag between the accrued retainer and commission can be a number of months. Average commissions differ from state to state and seem large to the home owner who often hands in excess of $10,000, $20,000 or $30,000 to the agency upon settlement. However the sales agent only receives a small proportion of this – often only 2,000 or 3,000, therefore considering the hours they work it's not all that great. 
Furthermore – when an agent initially starts his career in real estate, it’s not unusual for it take up to and beyond a year to consistently earn in excess of the basic retainer.  Any hint of a $100,000+ a year salary is firmly reserved for those who’ve weathered through five years or more in the industry, building up contacts and often working seven days a week in the process.
By far the greatest fear for an agent is the whiteboard at the back of the office that shows what each agent has sold or listed for the month. 
If an agent falls behind on expected output, the director will start to question his use to the agency.  An agent can be sacked with as little as two weeks’ notice if the boss doesn’t think he’s “paying for his desk”. 
Yet real estate is a competitive business.  It may be easy to pick up listings for the agent who's worked in the industry for a period of years with a substantial database of contacts.  However for those starting out, often the only way to get in front of a seller is to literally walk the streets.  Knock on doors, post leaflets through letter boxes, while avoiding those with “No Junk Mail” signs for fear of upsetting a potential vendor. 
Every enquiry an agent receives from a potential buyer will be followed with the desperate and hopeful question: “Do you have a home to sell?” “Do you require a ‘free, no obligation’ market appraisal?” 
Anyone entering the business better have a thick skin to combat all the angry responses and disappointments. 
Real estate sales is a highly competitive industry – especially in inner-city precincts.  When the initial free, no obligation market appraisal is booked in, most agents will be up against at least two competitors.  With the fear of the whiteboard ever present in mind, it's no wonder one agent will aim to promise more than another when it comes to their estimation of the homes potential sales price (commonly known as “buying the listing”).
Once the vendor has signed on the dotted line, the real work begins. 
The agent won't get paid a cent if she doesn't sell the property – therefore encouraging the vendor to “meet the market” (known in the business as “vendor education”), no matter what was promised prior to the contract being signed, is, of course, common practice. 
Should the agent’s authority period run out on the contract (the period of time the vendor has given the agent to sell the property) before she’s managed to get both the potential buyer and seller to agree on price, then the sales agent will get nothing! 
As for holidays, in the world of real estate they are few and far between.  Aside from the odd long weekend or Easter break, the main holiday period in the real estate industry is Christmas.  It’s the only time an agency can acceptably close. 
Therefore, in the run up to Christmas agents will work harder than ever to wrap up sales and line up potential listings for vendors not making the pre-Christmas deadline. 
The last thing an agent wants is a property looking tired as it hangs on the internet over the festive break slipping further down the default search list on realestate.com.au. 
Furthermore, they'll want to collect as much commission as possible for their own festivities, therefore, a deal done prior to Christmas means extra dollars in the holiday bank account.
All in all the life of an estate agent is a tough one, and only really rewarding for those who truly love, live and breathe property (and there are a few!). 
The real dollars come years down the line once the hard yards have been walked and the reputation of ‘experience’ earned. At that stage, the agent in question is often established enough to afford a PA to conduct the weekend opens and answer all enquiries. 
Therefore, next time you pop through an open home, spare a thought for the agent, who sits at the lower end of most people’s perceptions, yet lives a reality very different from what you may perceive. 
All this aside – we still have to ponder if such extreme commissions are worth the work involved?  The agent may not get the dollars involved, but the agency does – and it’s no small amount.  At some point the whole role of a sales agent is going to have to be re-assessed if they’re to claim back respect from the broader community.  Perhaps “pay for service” is the way to go after all?
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on <a href="https://ten.com.au/the-circle.htm">The Circle</a>.
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catherinecashmore-6LXia3pPQj

The unglamorous life of a real estate agent

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<a target="_blank" href="https://www.propertyobserver.com.au/demographics/results-of-2011-census-will-help-developers-find-the-most-suitable-project-for-the-market-peter-chittenden/2012062555261">Recently I made a brief reference to the release of the 2011 census</a>. And while I will doubtless return to the census results, I was reminded of my own regard of how an understanding of the impact social change is a key influence on the housing market, and in turn how we manage the guiding principles of our marketing.
In particular I have always had respect for an understanding of how the major factors of “family formation” influence demand in the housing market. They are generally acknowledged as driving much of the demand for housing because as family structures evolve so do housing needs.
Population growth from internal and external migration will always be of critical importance. In many cases migration can also be linked to changes in the family structure, such as the obvious example of family members relocating to another country. Also consider the impact of families relocating to another state or city to secure employment.
Families a wider meaning
Although in modern times the word “family: now includes a much wider definition than it did in the past, the social structures of how we live and who we live with, or who we do not live with, still acts as the major influence on where we look to establish our lives and homes and why we move to or from a particular area.
The trends also apply to varied degrees in a wide cross section of social and ethnic communities. Many of the strict boundaries between social class and ethnic origins have now broken down. But many communities based upon shared ethnic roots still play an important part in shaping some areas of our cities.
The importance of structural change in personal living arrangements appears then to over time to represent one of the main factors that drive demand for real estate. An awareness of these life changes is essential and can be used in many aspects of project marketing.
It requires little imagination to see the impact of what happens when a number of these key events occur in our own lives. While social structures will continue to evolve they are still essential elements in what helps to influence the choice of where we live.
And so I think there is real value in devoting time to explore these key influences, and be alert, as trends not only show up in the census but how they are impacting our own experiences.
From family home to own home, and all the steps in between:
When I was a young adult, it used to be that turning 21 involved getting a key to the door of the family home. Sometimes this was literally a real key to the door, so that you could enjoy your new freedom as an adult to come and go, or simply go and keep a key for those occasional return visits – as some commercials on TV would have us imagine with our washing in tow for mum!
Leaving home would clearly drive demand for new and more accommodation units. Either a first flat or a share house, this first step away from the family home was this step drove demand at a very basic level. Moving out of home clearly drives the first stages of new demand for housing.
While there will usually be many steps between moving into a first rented flat to a buying a house or apartment, new buyers entering the market are very important to the housing cycle.
Change in this area will have far reaching impacts, and we are already seeing this impact in our markets, as housing construction levels are now the same as they were in 1951.
Now research suggests that in their 30s and 40s some adult children are slower than ever in leaving the security of the family home, or just making the step to purchase their own home. Right now this is a real trend in the market, and the flow-through impact is, as highlighted above, extensive.
First-time buyers are seen as so important that they are more or less always given varied forms of financial incentive and encouraged to enter the housing market. The value of this assistance is valued at hundreds of millions of dollars and in NSW first-home buyers will receive a big boost from October 1, 2012. The rental market in 2011 is 29.6% of the housing market, up from 26.3% in 2001, which further highlights the fact that fewer new homes are being built and sold.
Now as the baby boomer generation, the parents of some of these late-to-leave-home adult children are starting down the path of retirement planning their housing aspirations and needs will also another huge factor in the market. The median age of all Australians is now 37, that’s two years older than 2001.
Much of the existing housing stock is owned by the baby boomers, and their plans are helping to fuel demand for new inner-city apartments. They also fuel much of the “change” trends.
Baby boomers (55-64) in empty nests are selling up and are not only still seeking an active retirement via a  sea-change or a tree-change, but a local-change as they move to sedentary retirement (65-74) and are looking to move from the large family home to a nearby apartment or townhouse in the community they know and love.
This is a market that has become so important it is now overflowing with marketing clichés. However if these same baby boomers, like some of their children, prefer to stay put in their existing homes, then another possible stream of activity and supply in the housing market is impacted.
There is also reason to suggest that more independent and healthy baby boomers are staying put because of the high costs associated with moving, a fact that is further amplified if house prices a flat and if moving also involved big stamp duty imposts.
While the impact of these two groups of themselves are hugely important they are only part of the wider picture driving demand, but they serve as important examples of the wider trends that project marketing needs to take into account.
The very real impact of family formation
Having started to look at the role and relevance of varied stages of family formation and in some cases family de-formation, (the impact of divorce is massive) it is very easy to see why this topic has always, for me, been top of mind.
In planning marketing for almost any project, this deceptively simple influence on the needs of consumers as their life-cycle shifts cannot ever be overlooked. There are many useful tips from what many of us either experience firsthand or see others experience.
Historically various reports, including many prepared by the Australian Bureau of Statistics, have pointed to the major influence family formation has on the demand for housing. Not to mention the wider trends picked up in research including the 100 years of census data that we all have access to.
The life cycle of most individuals and their families can be seen as a core factor driving and changing demand. It can also be argued that many of the changes to underlying trends will also point to future trends that the housing market will need to accommodate.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" target="_blank">Colliers International</a>
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pchittenden-eLqUUC8TWW

What changing family structure means for the property market

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The first half of 2012 has been rather dismal for retailers. Figures coming out of the ABS tend to confirm anecdotal evidence that retailing is doing it tough.
And none more so than department stores, fashion and electronics. Food and entertainment remain the only bright spots.
Major players like Myer, DJs, Harvey Norman and JB Hi-Fi have all recorded a drop in profit.
Even with the two interest rate cuts and recent government handouts, the expected bounce in sales is yet to materialise for traditional retailers.
And they have lowered their expectations going forward — with much concern being voiced about the impact of online retailing.
Online sales
While shoppers seem to be shunning "bricks-and-mortar" stores, many consumers are still spending, to the point where online sales have leapt 20% over the past few years.
<img src="/images/stories/2012/07/langjuly9.jpg">
But you need to keep this figure in perspective: Online retailing is only worth about 5% (or $11 billion) of traditional retail turnover.
Nonetheless, it's a growing trend that clearly has mainstream retailing concerned.
According to the NAB, 75% of this online spending is going to Australian businesses. And yet, tens of thousands of businesses (64% according to MYOB) have no web presence.
So, there is plenty of scope for traditional retailers to restructure, and join the party.
Need for change
Gone are the consumer boom years, where household debt peaked at 150% of disposable income. And clearly, there is now a need for retailers to adjust.
In fact, household savings have been growing since the early 2000s. But the GFC, plus a fall in value of their superannuation and property wealth, have left people feeling poorer.
Hence, their sudden urge to save even more, where households currently have 25.9% of their financial assets in cash — well above the long-term average of 19.5%.
Bottom line: As soon as things stabilise globally and they begin "feeling wealthy" once again, consumers will resume spending and respond with new-found vigour — much like most creatures do after emerging from a long hibernation.
It is during this "catch-up" period that you can expect retail property to regain its position as a sought-after investment once more. And this renaissance should commence towards the end of next year.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Retail renaissance to begin at the end of 2013

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<img src="/images/stories/2012/07/6point1percent.gif">
The median rental yield for Darwin units in June, according to RP Data.
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<img src="/images/stories/2012/07/5point8percent.gif">
The median rental yield for Canberra units in June, according to RP Data.
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<img src="/images/stories/2012/07/5point5percent.gif">
The median rental yield for Brisbane units in June, according to RP Data.
 
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<img src="/images/stories/2012/07/5point4percent.gif">
The median rental yield for Hobart units in June, according to RP Data.
 
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<img src="/images/stories/2012/07/4point9percent.gif">
The median rental yield for Perth units in June, according to RP Data.
 
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The median rental yield for Sydney units in June, according to RP Data.
 
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The median rental yield for Adelaide units in June, according to RP Data.
 
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<img src="/images/stories/2012/07/4point5percent.gif">
The median rental yield for Melbourne units in June, according to RP Data.
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Capital city unit rental yields by the numbers, with Darwin providing the highest returns for property investors: RP Data

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The recent release of census data from 2011 provides an accurate assessment of home prices to income, which should put to bed some of the argument surrounding more regular measures.
The first round of the 2011 census results was released recently by the Australian Bureau of Statistics (ABS). As reported in last week’s Property Pulse, when you paired the national median dwelling price in August 2011 to the annual household income it showed that the typical Australian home costs 6.3 times the average annual income, up from 6.1 times in 2006.
The results were significantly different to some intra-census measures, which suggest housing affordability is much worse.
Of course a national idea of the pricing differential is useful at a macro level, however, around two-thirds of all Australian’s live in capital city housing markets. As a result, median selling prices of homes tend to be higher and in turn, the ratio of house prices to household incomes can also be quite different.
There is also quite a substantial difference in the ratios between detached houses and units. This is reflective of the fact that houses tend to be more expensive than units and they remain the housing type of preference for most Australians (75.6% of all dwellings were detached houses at the time of the census).
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For houses, back in 2001 they cost as little as 3.2 times the average annual household income in Hobart and Darwin and up to as much as 6.2 times in Sydney and 4.9 times in Melbourne. Across the unit market the ratio was lowest at the same time in Hobart (2.6 times) and Darwin (2.7 times) and greatest in Sydney (6.0 times) and Melbourne (5.3 times).
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Ten years later in 2011 houses cost as little as 4.5 times annual income in Darwin and 5.4 times in Canberra up to as much as 6.1 times in Sydney and 5.9 times in Melbourne. The unit market has remained a more affordable alternative, costing as little as 3.6 times annual income in Canberra and 3.8 times in Hobart up to as much as 5.2 times and 5.1 times more expensive in Sydney and Melbourne respectively.
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It is perhaps a little surprising that housing isn’t less affordable, especially when you consider that median selling prices have risen between 75% in Sydney and 198% in Hobart over the 10-year period. Similarly median unit prices have increased by between 47% in Sydney and 211% in Darwin compared with growth in household incomes ranging from 46% in Sydney to 83% in Perth. The growth in household income is somewhat helping to curtail a blow-out in the ratio of home prices to household income.
There are a number of other important results from the data:
<ul>
<li>House and unit price to income ratios have consistently been highest in Sydney across the three periods analysed.</li>
<li>House price to income ratios were highest in 2006 within: Sydney (7.7 times), Perth (7.4 times) and Darwin (5 times) while they have remained stable between 2006 and 2011 in Canberra (5.4 times).</li>
<li>Unit price to income ratios were highest in 2006 within: Sydney (6.2 times) and Perth (6.2 times) while they have remained unchanged between 2006 and 2011 in Brisbane at 5.1 times. </li>
</ul>
The data highlights that the ratio of home prices to household incomes is high compared with the national average across most capital city markets. This is reflective of the fact that the population tends to congregate within or close to these eight capital cities and as a result competition for housing stock is generally strong and land is more scarce.
Over the most recent five years there has been relatively little movement in the house price to income ratio across the capital cities. In fact, the ratio of median house prices to median incomes has actually reduced in Sydney, Perth and Darwin and remained stable in Caberra, which is an encouraging development. The fact that the ratio hasn’t increased significantly over the most recent five years is reflective of much slower growth conditions in the housing market. It is also reflective of lower levels of growth in household incomes over the past five years compared with the preceding five years. In fact, household income growth between 2006 and 2011 was slower in each capital city than the growth over the five years to 2006 except in Sydney, Canberra and Darwin.
Overall the results show that housing unaffordability isn’t quite as severe as some reports have suggested, particularly in Darwin and Canberra, where income levels are considerably higher than the capital city average. Of course this doesn’t mean that a steep decline in values is imminent, but it does mean the prospects of significant value growth over the coming five years is lower. At best we would expect home values to rise in line with household incomes over the period. If they continue to grow below this level as they have for much of the last two years, housing will continue to become relatively more affordable. The fact that units provide a viable alternative for buyers on a budget suggests that they will continue to grow in popularity and may continue to outperform houses in terms of value growth over the coming period to the next census.
Tim Lawless is national research director of <a target="_blank" href="https://www.myrp.com.au/">RP Data.</a><a target="_blank" href="https://www.myrp.com.au/"> </a>
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Housing unaffordability not as severe as some have suggested: Tim Lawless

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Regional areas have outperformed capital cities in the year to March, according to ANZ.
"Despite being lower in annual growth terms, regional house prices have been more stable than capital city house prices, which have seen larger price falls across all major states and territories," notes the Australian Housing Chartbook.
"Across states/territories and regions, house price growth has continued to differ, reflecting varying economic performance across Australian industries."
"House price growth in WA regional centres has counter-intuitively been the weakest, with house prices in many centres lower in the year to March," says the report.
"Of note, house price growth in the Greenough River and Moore regions weremuch weaker in March 2012 (-6.5% and -4.7% respectively) compared to September 2011 (+1.3% and +0.6%respectively). Nonetheless, the economic benefits from major mining and energy projects in WA should boost house prices in many WA major regional centres over the next 12-18 months."
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Source RP Data, Rismark, ANZ
 
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