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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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>
The construction industry continued to contract in June, with the biggest decline recorded in the building of new apartments, according to the Australian Industry Group Australian (AI Group) Performance of Construction Index. 
 
The overall index, compiled in conjunction with the Housing Industry Association (HIA), remained broadly unchanged at 34.8 and in steep contraction given that a reading of 50 or below indicates a contraction in activity. 
The index has now been in contracting for 25 straight months, reaching its lowest reading of 28.9 in February 2009.
Click to enlarge
<a href="/images/stories/2012/07/hiajuly6.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/07/hiajuly6thumb.gif"></a>
The apartment building sub-sector index fell from 26.7 in May to 21.8 to be the weakest sub-sector, recording its steepest fall in 10 months. 
Both residential and commercial construction sub-sectors remained “deeply in “negative territory in the month. 
"The residential and commercial construction sub-sectors continue to be a drag on overall business activity, with lack of demand and access to finance both holding these important sub-sectors back,” says Peter Burn, director of public policy at Ai Group. 
“Engineering construction (down to a reading of 39.9) is stronger particularly due to mining-related projects but the overall construction sector continues to languish," Burn adds. 
HIA chief economist Dr Harley Dale noted the “steeper contraction in new orders for detached houses and apartments”, which he says “unfortunately confirm that new home building conditions will deteriorate further in the second half of 2012”. 
“Residential construction activity looks set to trough at GFC-equivalent levels and yet we’re not in the midst of the GFC. That is a concerning update on Australia’s economic prospects and policy makers should heed this clear signal for policy action," Dale says. 
The results of the index also reveal that poor demand and falling workloads impacted heavily on activity (down from 30.2 to 28.9), new orders (down from 33.7 to 33.4) and employment (up marginally from 38.4 to 38.7) in June. 
Engineering construction remains the strongest sector despite falling by 1.4 points to 39.9 in June.
</body></html>

lschlesinger-FZcF9M3vE6

Apartment construction activity records sharpest fall in 10 months in June: AIG/HIA construction index

<html><body>
Louis Christopher of SQM states:
“ [RP Data-Rismark’s] daily hedonic index, for which these claims are based on, is an unreliable index as it is based on a miniscule proportion of actual sales that happen on a daily basis. Effectively on a day to day basis, the index misses out on over 95% of sales. And since it is an unrevised index, it means those missing sales are never taken into account.”
RP Data-Rismark response:
The above statement is categorically incorrect.
The <a href="https://www.propertyobserver.com.au/residential/rp-data-rismark-march-1-daily-index/2012030153640" target="_blank">RP Data-Rismark index </a>uses ALL available sales information. Yes all, not just for the current day, but also all historical data. The index then produces the best estimate of the current state of the market from this data. Where sales data is not received the day of contract exchange, it is not ignored or unutilised. It is used in statistical and mathematical methods to account for the timing difference between the sale date and the date we receive the information. If we receive information about a sale one week after it has occurred, we use that sale to update our current view of the market, mathematically taking into account that the sale occurred one week ago. The information in that sale is still very much relevant to determining the current state of the market and our models therefore incorporate it.
In SQM’s newsletter earlier this week the index was criticised because of an example of where it was claimed the index fell by 1% on a given day. The fact is that the index change was 0.99/630.64, a decline of only 0.16%.
SQM Research claims that because the Melbourne index fell after a February rise that this is evidence that the increase in February must have not been correct. This claim is also wrong. Markets do not follow a straight point to point trajectory in any direction. They do, however, demonstrate natural volatility and seasonality as they traverse their path. Prior to the daily RP Data-Rismark index, these daily market movements were not observable in the Australian residential property market. A movement of 1% or 2% over the course of a month is negligible when compared with the movement in the stock market over a similar period. For example, even in a market that is declining it is possible to find periods where it is possible to have traded in and out at a profit.
Although the index provides a daily measure of the performance of the housing market, SQM Research fails to adequately acknowledge the following:
•             The small number of sales on one day doesn’t conclusively reveal how much the whole market has changed in value. A house that sold yesterday has almost as much relevant information as a house that sold today.  The time lag of previous sales is taken into account statistically via the hedonic imputation method. It gives us the best estimate of the value of our market portfolio, based on all the available historic information. 
•             We record all available sales and use them as the data arrives in our database. We use statistical methods to account for the timing difference between the sale date and the date we receive the information. If we receive information about a sale one week after it has occurred, we use that sale data to update our current view of the market, mathematically taking into account that the sale occurred one week ago. Over time, our indices self-update to reflect all available information, rather than publishing revised indices on a regular basis.
•             The index will react to changes in the market when it receives sales information showing sufficient numbers of sale prices higher or lower than those expected by the previous day’s model. It cannot react until given this information because it will have no evidence to do so.
•             The indices give the best estimate of the value of a diversified investment portfolio, using all the information available at the time of publication. Each day this information is updated on average by 1,400 transactions, which in turn inform the next day’s best estimate.
RP Data and Rismark are the only housing market index providers to have commissioned independent audits of our methodologies.  The results of these assessments can be viewed on the <a href="https://www.rpdata.com/research/rp_data_rismark_home_value_index_methodology" target="_blank">RP Data website</a>.
Additionally, white papers detailing the index construction and methodology are also available at the same link.
As Christopher Joye has pointed out in a recent article the RP Data-Rismark indices are regularly referenced by the Reserve Bank of Australia as well as other government departments and the economic community.  Additionally, they are now the only house prices indices quoted in the Reserve Bank’s chart packs.
We would presume these groups use our measure of housing market conditions because they are the timeliest and most accurate measures available.
Tim Lawless is national research director at<a target="_blank" href="https://www.myrp.com.au/"> RP Data.</a>
</body></html>

tlawless-5VLUrbAk9s

RP Data-Rismark’s defence of the daily hedonic home value index

<html><body>
Now that we’re at the stage of the property cycle where capital growth is lower, and it’s likely to remain that way for some time, more investors are asking: “what’s the right investment strategy?” 
Recently Gail Kelly, CEO of Westpac, warned that Australia is unlikely to ever again see the type of housing boom that sparked a massive rise in personal wealth in the past decade. 
 
At around the same time Reserve Bank of Australia governor Glenn Stevens said the RBA was not trying to “engineer a return to a housing price boom” by lowering interest rates.
So what is an investor meant to do? Is it time to consider cashflow-positive properties? 
How property investors make their money
Firstly it’s important to understand property investors make their money in four ways:
<ol start="1">
<li>
Capital growth – the increase in value of their properties</li>
<li>
Rental returns – which provide cashflow</li>
<li>
Tax benefits – such as depreciation allowances and negative gearing </li>
<li>
Forced appreciation – this is where an investor “manufactures” capital growth through renovations or development. </li>
</ol>
Smart investors benefit from a combination of all of these.
Can I still get capital growth? Recently <a href="https://www.ampcapital.com.au/" target="_blank">AMP Capital</a> reported that since the 1920s, real estate has returned 11.1% p.a. after allowing for capital growth and rents. That’s a pretty impressive long-term track record  
While there is little doubt that average capital growth will be lower for the next few years, there will always be some pockets that outperform the averages. And within those areas there will be some properties that grow strongly in value while others perform poorly. That’s how averages work.
What about positive cashflow? A positive cashflow property is one where the rental income received covers all of the property’s expenses (including interest), leaving money in your pocket each month. 
In general properties with higher capital growth have lower rental returns. This means you can’t find cashflow-positive properties in the higher growth, better locations of our capital cities. You must look to regional areas or mining towns where buyers require a higher rental yield (cashflow) to make up for the lack of capital growth.
Of course buyers with lower loan-to-value ratios, those who put more money in the deal may also experience positive gearing. The problem is they miss out on the benefit of leverage.
 
<hr class="system-pagebreak">
 
Which strategy is better – capital growth or positive cashflow? There’s no simple answer. Clearly if both strategies exist there is a place for both of them.   
I see more beginning investors go for cashflow-positive properties.
On the other hand I tend to see more successful investors, those who have built a substantial asset base, grow their portfolio through leveraging off the capital growth of their investments.
Obviously property investment should be part of a wealth creation strategy, not just a purchase in isolation. So if you are considering property investment to build an asset base to one day replace the salary from your day job, then I would invest for capital growth every time.
The few dollars a week your positive cashflow properties might bring in immediately is not really going to make much difference to your lifestyle or your ability to acquire and service other, more desirable properties for your portfolio.
The problem is that you can’t save your way to wealth – especially on the measly after-tax positive cashflow you can get in today’s property market.
And when interest rates increase – as they will again some day – a property that is cashflow positive today may be cashflow negative tomorrow.
Think about it: Real wealth is not derived from income. It is achieved through long-term capital appreciation and the ability to refinance to buy further properties.
If you seek a short-term fix with cashflow-positive properties, you’ll struggle to grow a future cash machine from your property investments. It’s as simple as that.
But here’s the trick: You can’t turn a cashflow-positive property into a high-growth property because of its geographical location.
But you can achieve both high returns (cashflow) and capital growth by renovating or developing high-growth properties. This will bring you a higher rent and extra depreciation allowances, which convert high growth, relatively low cashflow properties into high-growth, strong cashflow properties.
This means you can get the best of both worlds.
So how do you cope with negative cashflow?
Of course investing in negatively geared, high-growth property means you have to cover the cashflow shortfall each month.
One way of doing this is to set up the correct loan structure. A line of credit could be used to supplement the rental to pay the interest on the investment loan and property expenses.  This buys an investor time. 
The line of credit is often set up to cover the shortfall for three or more years until the property’s value grows sufficiently to refinance the loan out of the extra equity. 
To use this investment strategy, correct asset selection is critical because to make it worthwhile you need the property’s value to increase significantly more than your outstanding loan balance increases. 
This means you need to be investing in high-quality assets so that you can maximise the chances of enjoying strong capital growth. 
This strategy is not without risks… The four main risks are:
<ol start="1">
<li>
Poor capital growth – that’s why correct asset selection is so important.</li>
<li>
Interest rate increases – which can be addressed by fixing interest rates on some or all of your debt.</li>
<li>
Poor rental growth – which highlights the importance of owning properties that will be in continuous strong demand by a wide demographic of tenants.</li>
<li>
Lack of financial discipline – never use your financial buffers for uses other than covering your property related expenses. </li>
</ol>
I can understand why beginning investors would be keen to buy a property with positive cashflow. They tend to be cheaper, so it is easier to purchase and support this type of property. While they may give you short-term income, these properties will never allow you to accumulate the equity necessary to become truly wealthy. 
And while the rent may seem relatively high initially, it is the ongoing capital growth of your property that will underpin its long-term rental income, which means that if you buy in low capital growth areas, your rents won’t rise over the years as much as rents in high-growth areas. 
This means the value of capital gains over the long term will blow comparable cashflow returns out of the water. 
Remember as a property investor your focus should be on safely building your asset base so you can eventually develop the passive income from your assets that will allow you to enjoy the financial freedom you desire.
 Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
For Michael Yardney's take on investing in property given current economic tumoil, watch the video below
{qtube vid:=gNeDx9IkM0I&amp;list=PLC827F0952BF6BF47}
 
 
</body></html>

myardney-DFoGhGbSJX

You don’t have to choose between positive cashflow and capital growth in property

<html><body>
There were 1,059 residential sales in Perth this week, with 22 of them in East Perth.
<img src="/images/stories/2012/07/reiwajuly5.jpg">
</body></html>

cknowlton-QnEa6ntUYP

East Perth WA's top-selling residential suburb this week: REIWA

<html><body>
The amount of vendor discounting required to secure residential property sales peaked mid- to late last year, a "chill chart" released by Australian Property Monitors shows.
In Sydney, the average discount required in June 2012 was 6.7%, compared with 7.1% in August 2011. However, this is still higher than the average discount Sydney vendors had to offer in June 2010, which was 5.9%.
Melbourne discounting peaked in November 2011 at 8.1%, whereas in June 2012 Melbourne vendors offered discounts of 6.9% off initial price hopes to secure sales. Melbourne's average discount was 5.4% in June 2010. 
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/07/apmjuly6.gif"><img src="/images/stories/2012/07/apmjuly6thumb.gif"></a>
The required discounting for Brisbane property hovered around 10.7% from June to September 2011, with the average discount in June 2012 at 8.4%. 
Adelaide vendors offered an average discount of 8.6% in September 2011, but in June 2012 that had fallen to 7.7%. However, the previous month the average discount required was 8.1% in Adelaide, not at its 2011 peak but still in the "red zone", according to APM. 
Perth vendors offered discounts as deep as 10.6% in August 2011, but June 2012's average discount for the WA capital was 7.3%. This is still up on the 6.4% average discount in June 2010. 
The average discount required in Canberra hit a peak of 6% in June 2011 and was not far off that in June 2012, at 5.5%. However, these "red" percentages for Canberra are still at or below "green" figures for other capitals, as Canberra vendors in general do not have to sweeten the deal as much as those in other cities.
Darwin's average discount for dwelling sales hit 10% in June 2011 and was at a much lower 5.8% in June 2012. This is only marginally up from the 5.4% average discount in June 2010.
Hobart's average discount has crept up in recent months, to be at 10.3% in June 2012. This is not as high as the 10.8% average discount in August 2011, but higher than the 8.4% and 8.5% in some months between August last year and June this year. In June 2010 the average vendor discount in Hobart was 6.6%.  
 
</body></html>

Discounts required to secure residential property sales peaked in mid to late 2011: APM chill chart

<html><body>
Melbourne was the capital city to record the highest monthly increase in June sales stock, rising by 6.1% during the month to a total of 55,293 listings for sale, according to SQM Research.
There was no change in Sydney.
The national total online residential listings was up by just 1.7% for the month, to a 386,857 total, which represented a 6.4% annual increase.
 
<img src="/images/stories/2012/07/55293.gif">
The number of residential properties currently on the market in Melbourne, according to SQM Research. This is up 6.1% from last month.
<hr>
 <img src="/images/stories/2012/07/32390.gif">
The number of residential properties currently on the market in Sydney, according to SQM Research. This is exactly the same as last month.
<hr>
<img src="/images/stories/2012/07/28700.gif">
The number of residential properties currently on the market in Brisbane, according to SQM Research. This is up 3% from last month.
 
<hr>
<img src="/images/stories/2012/07/19046.gif">
The number of residential properties currently on the market in Perth, according to SQM Research. This is up 1.4% from last month.
 
<hr>
<img src="/images/stories/2012/07/17480.gif">
The number of residential properties currently on the market in Adelaide, according to SQM Research. This is up 0.7% from last month.
 
<hr>
<img src="/images/stories/2012/07/4455.gif">
The number of residential properties currently on the market in Hobart, according to SQM Research. This is up 0.5% from last month.
 
<hr>
 
<img src="/images/stories/2012/07/3728.gif">
The number of residential properties currently on the market in Canberra, according to SQM Research. This is up 0.7% from last month.
 
<hr>
<img src="/images/stories/2012/07/1326.gif">
The number of residential properties currently on the market in Darwin, according to SQM Research. This is up 5.9% from last month.
</body></html>

jchancellor-FAypfDUnLy

Melbourne listings jump 6.1% in June to 55,293: SQM capital city stock on market report

<html><body>
Let’s start off with the winter 2012 $1 million question:
Is it a good time to buy or is it a good time to wait?
The argument for waiting and renting
We all need roofs over our heads.
What is the difference between paying rent to a landlord and rent to the bank (that’s what a mortgage is – you are renting money from the bank with the interest you pay)?
On a $2 million home that you resell in two years for the same price (if you sold it because it was a bad decision) you may have spent say $300,000 – stamp duty ($110,000), reselling fees ($60,000) and mortgage payments ($130,000). Now if that home went down in value and you had to sell it, it’s quite possible you could end up with a half million-dollar loss on top of that. If, however, during that same time you rented a $2 million home, your total outlay would be somewhere between $80,000 and $120,000 for rent.
Renting in that scenario on a $2 million home could be a $200,000 to $400,000 better decision.
Suggested guidelines if you are to rent.
Are you new to the area? Rent a home in the area you are planning to buy in, as this should help you understand the subtle nuances of precincts.
Rent a good home. If you rent a crap home just because it’s cheap, it may be counterproductive, as all you will want to do is rush to leave. That puts pressure on you buying a home, which can often be negative as you are forced to make a hurried decision.
Rent for 12 months. In this market it may well take you some time to find the dream home.
Important rider: We are making a case for short-term renting as a way of giving you time to find and buy the right long-term home. But long-term renting is rarely the answer to long-term emotional and financial happiness in Melbourne. We have met very few rich and long-term happy renters.
The argument for buying now and trading up
Most selling agents have begun to trot out the line that now is a good time to buy if you are trading up. We have to agree.
In this market, the gap between lower-priced and higher-priced homes is getting smaller.  Therefore if you can find a good home now (and it is still possible), then trading up is certainly better now than it was during the stronger market of, say, early 2010.
Say in early 2010 when we had a strong market and lots of stock, your $ 1.5 million home had one bidder and you sold it for $1.5 million. And then you went and bought a $3 million home that had three bidders and you bought it for $3.2 million. At that time the mortgage gap was $1.7 million.
In 2012 your $1.5 million home may have had two bidders and sold for $1,420,000 – prices have dropped a bit but because stock is short on good family homes at your level and you priced it correctly, you had bidders. You had already bought a ripper $3 million home off market that was negotiated over a three-month period for $2,720,000. In this case the mortgage gap was $1.3 million.
Similar houses, different times. You’ve also paid $20,000 less in stamp duty and your mortgage  is cheaper to maintain. $1,700,000@ 8% = $136,000 as opposed to $1,300,000 @ 7% = $95,000. Yes, the figures are approximates, but you get the drift.
Of course it needs to be the right long-term home –<a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/residential/how-to-avoid-the-winter-home-hunting-blues-step-two-%E2%80%93make-good-decision/2012062755313" target="_blank"> a good decision</a>. Buying now because rates and prices are cheaper only makes sense if it’s a good decision for your long-term emotional and financial happiness. But <a href="https://www.propertyobserver.com.au/https://www.propertyobserver.com.au/residential/how-to-avoid-the-winter-home-hunting-blues-step-one-%E2%80%93-stay-patient-mal-james/2012062655275" target="_blank">be patient.</a>
Mal James is principal of<a href="https://www.jamesbuyeradvocates.com.au/" target="_blank" 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 avoid the winter home buying blues: The case for and against buying now

<html><body>
There's some good news for retail landlords, with retail sales up a solid 0.5% in May, slightly better than the 0.2% gain expected, according to ABS figures.
Westpac attributed the better-than-expected figures for May in part to the impact of lower interest rates and government support payments to families.
“The May result suggests rising incomes and interest rate cuts provided more of a lift despite the muted response from consumer sentiment and signs of ongoing cautious behaviour,” says Westpac.
“Rate reductions and fiscal payments ('schoolkids' bonuses totalling $2.1 billion) will give support in June-July, suggesting the second-quarter retail result should be a reasonable one.”
All states recorded monthly rises led by WA (up 1.1% for the month).
“While retailers and the consumer sector more broadly have had a better than expected start to 2012, many have been under intense pressure over the last few years and will still be experiencing pressures on profitability from an aggressive pricing environment,” noted Westpac.
“Most notably, the sector has been shedding staff fairly aggressively, with employment across the broader consumer sector (retail plus consumer services sectors) down an alarming 2.7% in the year to May.”
ABS revisions resulted in the April's 0.2%  fall revised up to a 0.1% rise and March's 1.1% increase was marked down slightly to a 0.9% gain, “smoothing the recent monthly pattern of spending but leaving in place a 0.4% trend rate of growth – a 4.7% annual pace (10-year average is around 5%)”.
</body></html>

Rate cuts and schoolkid bonuses help lift retail sales by 0.5% in May: Westpac

<html><body>
There has been a marked decline in the proportion of Gen Y borrowers who expect to have to ask their parents to help them buy their first home, according to the 2012 National Savings and Debt Barometer compiled by RaboDirect.
Just over a quarter (26%) of Gen Y respondents surveyed in May this year by RaboDirect said they would need to get assistance from their parents to purchase a house or apartment, compared with more than a third (35%) in 2011.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/07/rabojuly41.gif"><img src="/images/stories/2012/07/rabojuly41thumb.gif"></a>
Generation Y refers to those people born in the late 1970s and early 1980s. 
This increase in first-home buyer confidence comes with interest rates falling and affordability improving.
The most recent rate cuts have sparked a rush of new home buyers in Melbourne and Sydney’s suburban housing estates and apartment market seeking to claim government handouts and rebates before the June 30 cut-off date.
From October 1 NSW first-home buyers will be incentivised with a $15,000 handout from the O’Farrell government if they purchase or build a new home.
According to the RaboDirect, the findings suggest that more Gen Ys are feeling more financially independent from their parents – “possibly helped along by a softer housing market”. 
The survey also found a small rise in the proportion of baby boomer parents (those born around 1946) who expected to provide financial assistance to their children to buy their first house – 18% to 20% – but the majority (57%) say they won’t help.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/07/rabojuly42.gif"><img src="/images/stories/2012/07/rabojuly42thumb.gif"></a>
The propensity of parents being less willing to help their children financially and spend more on themselves has led to the term “SKIers” being coined, an acronym for “spending the kids’ inheritance”.
The survey found that 30% of baby boomers expect to retire with a mortgage.
This compares with 14% of Gen Y borrowers and 18% of Gen X borrowers who expect to retire with a mortgage.
Renee Amor, spokesperson for RaboDirect, says the softer housing market sounds a warning for boomers relying on the property market to fund their retirement.
“It has been traditional in this country to expect to retire with the family home paid off and increasing in value.
“It’s been seen as the ultimate safety net and often used to help younger family members get their start in the property market as well as funding retirement lifestyles,” she says.
“Our survey findings directly contradict this expectation and are of real concern in an environment where housing values are slipping and our population is ageing,” she says.
This sentiment is reflected in gap between parent’s concern about their children being able to buy their first home and the desire to help them. 
Around 22% of baby boomers agree strongly that they are concerned about how their children will afford their first home, but only 13% agree strongly that they would like to help.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/07/rabojuly43.gif"><img src="/images/stories/2012/07/rabojuly43thumb.gif"></a>
The National Savings and Debt Barometer was conducted by researchers RFi on behalf of RaboDirect and was a national survey of 2,355 Australians aged 18-65.
For advice on buying your dream land package,<a target="_blank" href="/news"> sign up for our free short course.</a>
</body></html>

Fewer Gen Ys expect to ask their parents for help in buying their first home: RaboDirect

<html><body>
Perth and Brisbane will be the next hubs of commercial development activity between now and July next year, according to Jones Lang LaSalle, after commercial sales spending declined 13% nationally in the first six months of 2012. 
Jones Lang LaSalle analysis shows that Australian investment volumes for office, retail and industrial for the first half of the year (as at June 21) reached $4.6 billion, compared with $5.3 billion for the first half of 2011. 
Despite the 13% drop, John Talbot, managing director of the investment and advisory group at Jones Lang LaSalle, says investment volumes had held up well “despite the uncertain global environment”. 
“Office markets have proved resilient despite the caution amongst investors and occupiers.  Sales volumes recorded for the first half of this year have almost reached the volumes recorded in the first half of 2011,” he says. 
Office sales declined from $2.47 billion to $1.95 billion, with retail the strongest performer, recording higher volumes in the first half of this year compared with last. 
There were $2.07 billion of retail sales recorded in the first half of the year (as at June 21), up from $1.8 billion in the first half of 2011. 
This figure was helped by <a href="https://www.propertyobserver.com.au/retail/perron-group-to-acquire-half-stake-in-three-centro-centres-for-%24690-million-setting-post-gfc-commercial-retail-record/2012051754740" target="_blank">the Perron Group paying a post-GFC record in May of $690.4 million</a> for a 50% ownership stake in three of Centro Retail Australia’s flagship regional shopping centres, with the transaction negotiated by JLL’s Simon Rooney.
 
“In terms of the outlook, the reduction in the cost of debt for well rated groups is an interesting dynamic.  It is now accretive for listed vehicles to buy office assets in Australia,” says Talbot. 
“For wholesale funds, the reduction in the cost of debt has lowered the weighted average cost of capital and makes property investment attractive. 
“One of the hurdles in the market is the lack of prime-grade stock. A development cycle would create a supply of product, however there is limited development activity. 
“The space market conditions point towards development activity in Brisbane and Perth over the next six to 12 months. We expect that this will create fund-through opportunities,” he says.
</body></html>

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News