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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

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If you’ve been following my blogs you’ll know that I feel confident about the long-term prospects for our property markets. These prospects will be supported by the dual pillars of strong population growth and strong economy powered by a resources boom. 
With the recent <a href="https://www.abs.gov.au/census" target="_blank">release of census data</a> everyone’s talking about what’s happening to our population. 
The fact is that despite strong population growth, we still need to “import” more people to fill the demand for skilled labour. And over the next 15 years, we’ll need to replace close to five million baby boomers that will retire and leave the workforce.
So it’s good news that Australia has emerged as the second most desired location for people to live and work, according to a recent report by recruitment firm Hydrogen Group, titled Global Professionals on the Move 2012.
The report says Australia’s lifestyle and standard of living made it so popular, as well as the career opportunities presented by the mining boom.
Ivan Jackson, the managing director for Hydrogen Group in Australia, was reported in the Herald Sun as saying that there were 404 natural resources projects taking place in Australia worth about $450 billion in total.
“A lack of relevant skilled professionals is one of the main barriers to bringing these projects to fruition,”  Jackson said in the report. “Many oil and gas projects are reaching a point where they will suddenly need several thousand extra workers.
“In the next two to three years recruitment to Australia will be at its highest ever.”
Where else is popular?
The survey, which was conducted by ESCP Europe late last year, found that the USA was the most popular destination to work. This was followed by:
<ul>
<li>· Australia, which tied second with the UK</li>
<li>· Singapore </li>
<li>· Canada </li>
<li>· Switzerland </li>
<li>· Hong Kong and </li>
<li>France
</li>
</ul>
What’s happening to Australia’s population?
Australia’s population is estimated to be about 22,500,000. You can get an updated figure by clicking <a href="https://www.abs.gov.au/ausstats/abs%40.nsf/94713ad445ff1425ca25682000192af2/1647509ef7e25faaca2568a900154b63?OpenDocument" target="_blank">the Australian Bureau of Statistics population clock.</a> 
Even though population growth has eased since peaking back in 2008, when over 380,000 new arrivals called Australia home, Australia’s population increased by around 1.4% last year, which means we’re still growing faster than most developed nations. And a large part of this is because of strong immigration. 
Population and, more importantly, the change in population, are intrinsically linked with housing demand. To put it simply, more people means demand for more homes. And a prosperous nation means we can afford to buy or rent these homes. 
This is all great news for property investors with a long-term perspective.
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.
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myardney-DFoGhGbSJX

Australia’s increasing population great news for property investors

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After the surge in Australian house prices from the mid-1990s into last decade my view was that while the risks of a sharp fall back in house prices were high, the most likely scenario was an extended period of range bound house prices in real terms. If anything most of the surprise has been on the upside – although not by much in real terms. But despite the fears of many, house prices have not plunged like those in the US and elsewhere, despite a bigger boom.
<img src="/images/stories/2012/06/oliver1.gif">
However, the risks are rising again. Prices have slid 6% since their 2010 high and worries that the GFC is about to finally catch up with Australian housing are on the rise again. Excessive house prices and the excessive level of household debt that has come with it are Australia’s Achilles heel.
Housing is 60% of household wealth and so movements in house prices have a big impact on household financial wellbeing and spending. Housing credit also amounts to 59% of total private credit, so what happens to house prices is critically important to Australian banks. And as we have seen in Ireland and now Spain, what happens to banks can have a big impact on public debt levels.
Still overvalued, but not by as much
The bad news is Australian housing is still way overvalued. The good news is it is less so, with real house prices going nowhere for the last four years:
<ul>
<li>According to the OECD, the ratio of house prices to incomes in Australia is 28% above its long-term average, putting it at the top end of OECD countries, although several other countries are more extreme. The US is now below its long-term average on this measure.</li>
</ul>
<img src="/images/stories/2012/06/oliver2.gif">
<ul>
<li>According to the 2012 Demographia International Housing Affordability Survey, Australian housing trades on a median multiple of house prices to annual household income, which is double that of the US. In Sydney, median house prices are $637,600, compared with $324,800 in Los Angeles. In Perth they are $450,000, compared with $159,500 in Houston, Texas.</li>
<li>However, it is apparent in the next chart that while real house prices are still above their long-term trend, the divergence has narrowed to 13% from a peak of 33%. Real house prices have now fallen back to 2008 levels.</li>
</ul>
<img src="/images/stories/2012/06/oliver3.gif">
<ul>
<li>Another way of looking at property valuations is to look at the ratio of price to rents (sometimes referred to as a PE ratio for housing) and adjust for inflation. On this basis Australian housing is still overvalued relative to its long-term average by 10%, but at least this is down from a peak overvaluation of 38% in 2003.</li>
</ul>
The bottom line is while it may not be as stretched as was the case a few years ago, Australian housing is still overvalued. This combined with still high household debt-to-income ratios leaves Australia vulnerable.
Still undersupplied, but maybe not as much
One of the big supports for the Australian housing market is thought to be a shortage of housing, with the National Housing Supply Council estimating a cumulative shortfall of more than 200,000 dwellings. However, the just released 2011 ABS census wiped almost 300,000 off previous population estimates suggesting that the undersupply may not be as chronic as thought, and along with slowing population growth, has potentially reduced a support for house prices.
Our assessment though is that while the undersupply of housing may not be as severe as thought, low vacancy rates still attest to some undersupply. And Australia has not had anything like the residential property construction boom that the US had last decade, which accentuated the downwards pressure on its house prices. In Australia, housing starts and approvals are at cycle lows.
 
<img src="/images/stories/2012/06/oliver4.gif">
 
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Where to from here?
Right now the Australian residential property market is chronically weak. Finance approvals and new home sales are depressed, first-home buyer activity is subdued, prices are down, listings are up and auction clearance rates have been weak for 18 months. In fact, the failure of timely data like auction clearances to spring back into life despite mortgage rates starting to fall eight months ago is a sign of how weak things are. Since the GFC, Australians have become fearful of taking on more debt and the once strongly held belief that house prices can only go up has long been ditched.
<img src="/images/stories/2012/06/oliver5.gif">
However, while fears are growing of a deep house price slump ahead, the most likely scenario remains a lengthy period of range bound house prices around a flat trend in real terms – just as we have seen nationally over the last few years and in Sydney since 2003. Essentially poor affordability, overvaluation and high household debt levels have put a cap on house prices, whereas undersupply should limit their downside, within which, prices will cycle up and down in lagged response to falls and rises mortgage rates.
Australia did not experience the same deterioration in lending standards that occurred in other countries last decade. Home ownership rates didn’t increase. Most of the increase in mortgage debt went to older and wealthier Australians better able to service loans. And this has all been reflected in still low arrears rates of around 0.6%, and something like 50% of borrowers being ahead on payments.
Nevertheless, there are two key threats. First, a hard landing in China resulting in a collapse in export earnings could drive unemployment sharply higher threatening a sharp rise in delinquencies and forced sales. However, while this risk has increased given the threat from Europe, a sustained hard landing in China seems unlikely given China’s low tolerance for social unrest and falling Chinese inflation.
Second, property investors, who make up a third of housing debt, may lose patience with the lack of capital growth and sell, leading to sharp falls in house prices. However, while it’s hard to see investors piling into residential property now, why would those who are already in suddenly sell now? Real estate investors are usually in there for the long term, made necessary by large transaction costs.
A third threat was coming from interest rates, but with rates falling since last November, this has turned into a positive for the housing market. Affordability is still poor, but at least it’s improving, and our assessment is that a further improvement in affordability lies ahead as interest rates are likely to fall another 0.75% by year end.
Bottom line – in the very short term house prices could fall a bit further as economic uncertainty continues to impact, but providing Europe doesn’t plunge China and the world into a renewed recession, falling mortgage rates are likely to drive a cyclical recovery in the housing market from later this year/early next. However, the most likely profile over the next five to 10 years is for house prices to be stuck in a 10% or so range around a broadly flat trend in real house prices.
This is consistent with the 10- to 20-year pattern of alternating long-term bull and bear phases seen in real Australian house prices since the 1920s. The long-term bull phase of Australian house prices that started in the mid-1990s is now giving way to a long-term bear phase.
Housing as an investment
After allowing for costs, residential property has historically provided a similar return over the long term to shares. This can be seen in the next chart, which shows an estimate of the long-term return from housing, shares, bonds and cash.
<img src="/images/stories/2012/06/oliver6.gif">
Since the 1920s, housing has returned 11.1% pa after allowing for capital growth and rents and shares have returned 11.4% pa after allowing for capital growth and dividends. While housing is less volatile than shares and for many seems safer, it offers a lower level of liquidity and diversification. Once the similar returns of housing and shares are allowed for there is a case for both in investors’ portfolios over the long term. Right now though, housing looks somewhat less attractive continuing to offer much lower yields. The gross rental yield on housing is around 3.7%, compared to yields of 7% on unlisted commercial property, 6% for listed property (or A-REITs) and 6.5% for Australian shares (with franking credits). So for an investor, these other assets represent much better value.
Dr Shane Oliver is head of investment strategy and chief economist at <a target="_blank" href="https://www.ampcapital.com.au/">AMP Capital</a>
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Australia's chronically weak house prices: Is the crash upon us or a long-term flat trend?: Shane Oliver

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In encouraging news for prospective property owners, Aussie housing continues to get cheaper when deflated using disposable incomes. According to Rismark, Australia’s all regions, average dwelling price-to-average disposable household income ratio has fallen to around four times, which is its lowest level since March 2003 (abstracting away from a temporary dip during the GFC).
This analysis is based on both “average” and “median” dwelling prices calculated using all home sales recorded across the country during the March quarter. The quarterly income estimates are extracted from the ABS’s National Accounts data, which publishes a regular “disposable household income” aggregate. To translate this figure into a “per household” unit, Rismark divides through by the number of households each quarter. It is important to remember here that this income estimate reflects that there are multiple income earners per household, and is an “average”, not a “median”, and likely to be biased upwards somewhat due to right-skew in the distribution of incomes.
Click to enlarge
<a href="/images/stories/2012/06/june281.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/june281thumb.gif"></a>
The second chart below seeks to remove one of the main “non-cash” items that is captured in the ABS’s disposable household income series: “imputed” owner-occupied rents, or the rents you effectively save by buying a home rather than renting it. As you can see, this boosts the dwelling price-to-income ratio to about four and a half times.
Click to enlarge
<a href="/images/stories/2012/06/june282.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/june282thumb.gif"></a>
The exact levels of the price-to-income ratio are relatively trivial: it is the change in the ratio over time that affords much more useful insights.
From the analysis above we can infer several things. First, disposable household incomes in Australia have grown as quickly, if not more quickly, than nominal Australian house prices over the last nine years. Indeed, when we measure changes in house prices more precisely using a “hedonic regression” technique, we arrive at even lower house price inflation numbers. In particular, we find that disposable incomes have actually out-paced house prices by about 15% over this period.
A second learning is that the price-to-income ratio seems to have risen by about one-third from circa three times to four times since 1993. In fact, there was a very distinct regime change in the late 1990s and early 2000s.
There is a sound explanation for this innovation: the long-term cost of mortgage debt in Australia declined by north of 40% between 1980 and 1995, and 1995 and today. This was largely a function of the long-term reduction in realised inflation and measured inflation expectations, which in turn allowed Australia’s central bank, the RBA, to permanently lower its cash rate.
The radical reduction in the day-to-day cost of mortgage debt permitted Australian households to significantly increase the amount of debt they were servicing without a noticeable rise in underlying mortgage default rates. Notwithstanding a peak in headline mortgage rates of around 9.5% in August 2008, system-wide arrears have remained no higher than their last spike in 1994-95.
Here we are able to document another development. The striking rise in Australia’s household debt-to-income ratio from the mid-to-late 1990s onwards ceased altogether in about 2006, a year or two prior to the onset of the GFC. That is, credit growth started tracking income growth, which is what you would expect through the cycle. Households evidently discovered that they had maxed out their debt servicing capability, and rationally stopped leveraging up.
Rismark’s price-to-income ratio analysis does not, of course, account for changes in interest rates. Today mortgage rates are well below their long-term averages. You can get discounted variable rates as low as 5.6% per annum, and three-year fixed-rates at about 5.8% per annum.
Factoring in the change in both incomes and interest rates is important. As one exercise, Rismark took the median Australian dwelling price in 1985 and indexed it up by changes in per household disposable incomes and adjustments in borrowing capacity afforded by changes in mortgage rates (i.e., holding the repayment-to-income ratio constant).
Rismark found that they could explain 93% of the actual increase in median Australian house prices over the 1985 to 2011 period simply referencing these two variables.
Christopher Joye is a leading financial economist and a director of <a target="_blank" href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The author may have an economic interest in any of the items discussed in this article. These are the author’s personal views and do not represent the opinions of any other individual or institution. This material is not intended to provide, and should not be relied upon for, investment advice or recommendations.
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Australian housing at its most affordable level for nine years: Christopher Joye

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A free-standing Ritchies IGA in Mount Waverley has sold to an Asian Melbourne-based buyer for nearly $700,000 above the reserve after attracting more than 23 enquiries from offshore Asian buyers prior to its June 27 auction.
Many of the bids included the number 88 – the Asian symbol of good fortune and good luck.
In a room packed with 200 people the 2,500-square-metre supermarket was the subject of a bidding war between four potential buyers in the room - three of whom were Asian - and a Hong Kong investor on the phone.
"Two bidders locked horns over the property" says Graeme Watson, joint selling agent alongside Raoul Holderhead from Burgess Rawson.
The supermarket had a $6.5 million reserve and eventually sold for $7.19 million.
The sale price reflected a yield of 6.51% based on rent of around $477,000 per annum plus GST, with the property leased to long-term tenant Ritchies IGA on a 15-year lease with renewal options to 2034.
It had previously been marketed in Asian publications given its location on the corner of Stephensons Road in Mount Waverley, a suburb where houses are regularly snapped up by Asian buyers looking to live in its sought-after school zone.
Recently Jeremy Desmier, Fletchers real estate director, said suburbs like Balwyn and Glen Waverley were popular among buyers with temporary residency because of their highly rated government schools.
Holderhead tells Property Observer the high yield reflected the fact the shopping centre is a “very rare” asset in the “dead centre of Melbourne” in a fairly affluent suburb with no available land pockets.
“The only competition is a Woolies round the corner,” he says.
Another appealing factor, he says, is the fact that it was only built in 1999 and thus is relatively new.
He says the buyer is willing to pay well above the reserve price despite “turnover being knocked around a bit from the recent supermarket price wars”.
He estimates that a Coles or Woolies in the same location could fetch $10 million or $11 million, with yields of around the 4% mark.
Graeme Watson describes Mount Waverley as a “very established, affluent area with a substantial Asian population".
"The IGA is located in a very comprehensive strip style centre” with none of the 100 shops on the strip vacant.
“All the major banks are on the strip plus there are four pharmacies and four bakeries,” Watson says.
He says the IGA's free-standing nature also made it an attractive asset for investors.
The sale of the IGA suggests Glen Waverley and surrounding south-eastern Melbourne suburbs are becoming something of a commercial as well as residential hotspot.
In March The Palms restaurant at 213-215 Blackburn Road in Mount Waverley, standing on a 1,015-square-metre block, sold for $2.03 million to a private investor on a yield of nearly 7%.
It sold with a 10-year lease to the restaurant, having attracted interest is in the vicinity of $1.9 million to $2 million.
Selling agents were Colliers International's Hamish Burgess and Ben Baines, who said three strong bidders pushed the price well above the reserve.
Burgess said at the time there was a strong demand for development sites in the Melbourne eastern metropolitan market, with developers now favouring medium-density sites in the eastern suburbs.
As an example of the demand for residential property in nearby Glen Waverley he pointed to the recent off-the-plan success of Consolidated Properties $70 million 11 storey Ikon apartment project.
All 116 one- and two-bedroom apartments in the mixed-use development were snapped when it launched last year. The project also includes an office and retail precinct. Construction began in April.
Recent Melbourne suburban shopping centre sales have included a Mentone supermarket anchored by Woolworths, which sold on a yield of close to 8%, and a Coles-anchored Bundoora Square in the north east, which sold on a yield of 7.4%.
Mount Waverley ranked as the 121st most liveable suburb in Melbourne in the 2012 Age liveability survey, with the report noting that neighbouring Clayton ranked 272 with the only sizeable difference between the two is Mount Waverley's good rating on crime.
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Mount Waverley IGA with lucky 88-dollar bids sells for $600,000 above the reserve

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Mining tycoon and eccentric billionaire Clive Palmer has spent $10 million on the former Club Med resort at?Bora Bora in Tahiti, French Polynesia.
The 30-hectare resort has 150 rooms, a 200-seat theatre and a private bay. It comes with four villas and 46 staff units. It was marketed by CBRE Hotels.
Palmer told Fairfax he had no plans to refurbish the resort yet, but that the resort does hold development potential.
He says he bought the property for “relaxation, serenity and because no?one else was going to buy it”.
“I will bring my family here – it’s one of the most beautiful places on Earth.”
He says he will be staying at his resort next month when attends the Asia-Pacific Forum, set up to discuss the promotion of socio-economic development and growth in the Pacific islands.
The purchase is the latest in a series of tourism related acquisitions and plans by Palmer.
Last year he bought the Hyatt Regency at Coolum in the Sunshine Coast.  He has also bought the <a target="_blank" href="https://www.propertyobserver.com.au/leisure/clive-palmer-buys-distressed-golf-courses-at-discount/2011092051616">Robina Woods and The Colonial golf courses at Robina</a> for $7 million and this year his Gold Coast purchases has totalled $6 million.
He told Fairfax the Bora Bora purchase is unlikely to be the last. “I’ll take a look at anything.”
The club was shut down by owners Club Méditerranée SA in 2009.
The resort is set in Faaopore Bay on the south coast of Bora Bora, 250 kilometres from Tahiti. Parisian interior designer, Christian Liaigre worked on the internal furnishings, borrowing themes from the island tattoos.
Celebreties who stayed there include Ringo Starr, Harrison Ford, Meg Ryan, Patrick Swayze, Senator John McCain, Janet Jackson, Pierce Brosnan, Drew Barrymore and Cameron Diaz.
Prices ranged from $200 to $375 per night to stay at the all-inclusive resort.
The rooms are a mix of stand-alone and duplex bungalows and two-storey, motel-style buildings, though the beachfront bungalows were the preferred choice for holiday makers.
CBRE’s marketing in 2009 said the property is a “world-class resort destination offering scenic beauty, political stability and high-quality resort product”.
The deal comes after Palmer’s failed attempt to buy <a target="_blank" href="https://www.propertyobserver.com.au/leisure/chinese-mining-tycoon-beats-clive-palmer-to-acquire-lindeman-island-with-plans-to-redevelop/2012042554429">the Club Med in Lindeman Island in the Whitsundays,</a> when he was outbid by a Chinese mining tycoon.
Photograph by Thomas Wasserberg, courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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Clive Palmer buys former Club Med resort in Bora Bora for $10 million

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There are a number of long-held and misinformed ideas surrounding sales of property by mortgagees (lenders). Often parties are interested in pursuing a mortgagee sale in the hope of securing a “bargain”. Each time buyers attend open for inspections for a mortgagee repossessed property’s auction, the same main questions typically arise: 
<ol>
<li>Will it definitely sell at auction?</li>
<li>What’s the debt against the property?</li>
<li>Will the mortgagee accept an offer prior to auction? </li>
</ol>
To respond in order, the mortgagee (usually a bank or similar lender) is generally not in the business of holding real property – they are in the money business. They wish to realise the asset and recoup their outstanding funds. Having said that, the mortgagee has an obligation to act in good faith and have regards to the interests of the mortgagor (defaulting borrower). In the event that a property was “dumped” by a mortgagee at a price found to be significantly below a fair market value, there will be solid grounds for a claim for compensation by the borrower. There is no specific obligation upon the mortgagee governing the manner and form in which the subject property should be sold – however, every step that is taken towards a comprehensive, suitably structured marketing campaign results in a reduced likelihood of a successful mortgagor challenge in the future. As a rule of thumb, mortgagees commission an independent certified valuation of the property, and this becomes a very good guide in terms of a reserve. So, “Will it definitely sell at auction?” The answer is no.
Buyers will often query the level of debt encumbering the property. While this may impact the mortgagee’s bottom line for the year, it has no effect upon the actual market value of the property. A $1 million property repossessed over a $100,000 debt is not suddenly worth $100,000, and any mortgagee accepting a price like that should line up its lawyers in readiness for a courtroom fight. Similarly there are often cases, regularly involving fraud of some kind or ill-advised financial planning, where the debt is significantly higher than the market value of the property. As much as the mortgagee would very much like to see the value cover its debt, the property is valued on its own merits. If a mortgagee accepts a price less than the debt, it is required to see transfer of the property at settlement with clear title. 
Pre-auction offers are a common issue. We return to mitigating legal exposure for the mortgagee. The courts consistently view a public auction as a fair test of the market – a sale prior to auction begs the question as to why an offer was accepted. The property is always for sale and offers welcome, however we regularly suggest that “unless your offer is to be so compelling that the mortgagee may be found culpable for not accepting it, we’ll proceed to auction”. It’s a rare day that someone wants to be “that buyer”. The courts have found that no advertising or auction is necessary at all should the price achieved be sufficiently “compelling” and responsible compared to an independent valuation. The practical application however is that public auction is most largely considered the optimal and fair way to assess buyer interest and thereupon it is best to leave the campaign to run all the way to the gavel. 
Recently Kousal v Suncorp-Metway [2011] and the very widely publicised auction sale preceding this matter involved a sheriff auctioning a mortgagee property <a href="https://www.propertyobserver.com.au/auctions/melbourne-vendor-goes-to-court-over-%241000-no-reserve-sheriff-s-auction-of-his-braybrook-home/2012020953319" target="_blank">and selling it for $1,000</a>. It was shown that the property was valued around $600,000. Of understandable concern to the defaulting borrower was his belief that the property was insufficiently marketed, auctioned in a sheriff’s office and done so “without reserve”.  On these assertions, the sheriff pretty well followed the text book of what not to do when acting for a mortgagee who is seeking to realise a debt and do so in a court-approved manner. 
Having established some principles that may restrict the opportunity to secure a definite bargain, buyers may well be left wondering just what is the attraction in pursuing a mortgagee sale. Buyers can rest assured that the mortgagee is motivated to achieve a sale. Emotion does not enter the discussion. The mortgagee does not view the property as a much-loved home and has no “rose-coloured” glasses concerning its value. An independent valuation is regularly the benchmark for the lowest level a mortgagee might accept at auction – and in a market like we are currently experiencing, valuers are hardly bullish. 
Further, a mortgagee will generally refrain from marketing embellishments or “agent speak” in the marketing of property. The contract will be very clear and undertakings conservative. Mortgagees generally select agents who have a comprehensive understanding of the law pertaining to mortgagee transactions and ensuring that all boxes are appropriately ticked. What you see is what you get. 
Here’s the bottom line to mortgagee sales – the mortgagee wants to secure a fair market price for the asset and cover its debt. Mortgagees wish to do so without being exposed to potential legal dramas from the defaulting borrower. If you are interested in pursuing a home and like the idea of dealing with an non-emotive, straight-forward vendor who has ideally engaged an informed and professional agent, who is genuine about securing a sale and whose pricing is guided by an independent valuation, then mortgagee sales are for you.
Brad Caldwell-Eyles is principal of <a href="https://www.1stcity.com.au/" target="_blank">1st City Hasemer and Caldwell-Eyles.</a>
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Clearing up misconceptions about mortgagee sales

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<a href="https://www.propertyobserver.com.au/residential/how-to-avoid-the-winter-home-hunting-blues-part-one-%E2%80%93-stay-patient-mal-james/2012062655275" target="_blank">Yesterday I talked about the importance of staying patient in the cooler winter market. </a>The consequences of a bad decision are much worse now, and time is needed to make the best possible decision.
In the late 1990s and early 2000s the consequences of decisions were not quite so obvious due to runaway capital growth pretty much right across the board. Even a bad decision was a good decision because almost anyone who bought was better off than those who didn’t.
Over the past seven years or so (traditionally one property cycle), since around 2006-07 the game has changed. When it comes to home buying, there is now a significant gap between those who have made good decisions and those who have not.
Good decisions: We can give you specific examples of clients who have bought since 2007 and who since that time have seen 50% increases in buying and selling. One home that was bought for $1 million in 2007, for instance, sold for $1.5 million in 2012. Not that we have encouraged such quick turnaround – but sometimes circumstances change.
Poor decisions: We can also point to sales that have resulted in up to 20% losses since 2007. We have seen some substantial losses in the Golden Mile Brighton, as well as a period home in Elsternwick with a big auction and even homes in Boroondara. If you bought a $2 million home in 2007 and sold it for $1.7 million five years later, that is a substantial loss.
Highlighting the good decision vs. bad decision numbers.
Back in 2007, the $1 million buyer and the $2 million buyer were $1 million apart. Now in 2012 they are only $200,000 apart. Meanwhile, the buyer who made the good decision has had to pay only half the mortgage repayments of the poor decision buyer. Sure, this is an extreme case, but it has happened.
The winter of 2012 is a time to keep making good home buying decisions.
Mal James is principal of<a title="James Buyer Advocates" href="https://www.jamesbuyeradvocates.com.au/" target="_blank"> 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. 
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How to avoid the winter home hunting blues: Step two – make good decisions

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Brisbane new high-rise apartment sales fell 31% in the May quarter, with 128 sales recorded compared with 186 in the February quarter, according to the latest Midwood Report.
The total number of apartments for sale also fell to 1,227, the lowest level since November 2010.
The report notes that the current sales rate is in line with average sales rate over the past 12 months.
Three projects dominated sales – Metro Property’s Madison Heights project in Bowen Hills; the big Hamilton Harbour project being co-developed by Devine and Leightons and FKP’s The Milton in the inner west.
Here’s a breakdown of the top six high-rise sellers in Brisbane during the months of March, April and May:
<img src="/images/stories/2012/06/55.gif">
The number of apartments sold in Metro’s Madison Heights development in Bowen Hills. There are 308 units in the project, with 255 sold to date. The median price paid per square metre was $6,616.
 
<hr>
<img src="/images/stories/2012/06/30.gif">
The number of apartments sold in Devine and Leighton’s Hamilton Harbour – Riverside Hamilton development. There are 189 units in the project, with 127 sold to date. The median price paid per square metre was $6,831.
 
<hr>
<img src="/images/stories/2012/06/23.gif">
The number of apartments sold in the Metro Pearls Brooklyn on Brookes project in Fortitude Valley. There are 216 units in the project, with 88 sold to date. The median price paid per square metre was $7,761.
 
<hr>
<img src="/images/stories/2012/06/17.gif">
The number of apartments sold in the FKP’s The Milton project in Milton. There are 298 units in the project, with 145 sold to date. The median price paid per square metre was $7,244.
 
<hr>
 
<img src="/images/stories/2012/06/6.gif">
The number of apartments sold in the Laing O’Rourke/Trident Corp McLachlan &amp; Ann (M&amp;A) project in Fortitude Valley. There are 234 units in the project, with 172 sold to date. The median price paid per square metre was $7,692.
 
<hr>
<img src="/images/stories/2012/06/5.gif">
The number of apartments sold in the Metro Property Development The Chelsea project in Bowen Hills. There are 195 units in the project, with all sold. The median price paid per square metre was $7,087. The project settled in February.
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Brisbane high-rise apartment sales down 31% in May quarter: Midwood

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The Hong Kong-based Shangri-La Hotels and Resorts group has made its second foray into the Australian hotel market in the space of a week, picking up the Holiday Inn Brisbane for around $48 million.
It follows its purchase of <a href="https://www.propertyobserver.com.au/leisure/sydney-shangri-la-hotel-sells-to-hong-kong-shangri-la-asia-group-for-record-%24352-million/2012062555249">Sydney’s Shangri-La Hotel in The Rocks for the $352 million</a> announced earlier this week.
Shangri-La Hotels has also assumed management of the Brisbane Holiday Inn and will operate it as a Traders Hotel.
The hotel is located at 159 Roma Street, within walking distance from the CBD and Suncorp stadium.
The purchase of the Holiday Inn was facilitated by Jones Lang LaSalle Hotels’ Craig Collins, Dean Humphries and Peter Harper, who also advised on The Rocks purchase.
Collins says the Brisbane hotel market has witnessed the most transactional activity in Australia over the past six months, with this being the fourth transaction Jones Lang LaSalle has undertaken in the city over this period.
“Prior to this sale there had been very little activity as Brisbane has historically been one of Australia’s most tightly held investment markets,” he says.
According to Collins, Brisbane has been one of the standout hotel trading markets this year to date, with revenue per available room (RevPAR) growing by 5.9% to surpass the 2008 peak and reach $151.
Total hotel transaction volume in Australia has reached almost $1 billion for the year to date, with Asian investment accounting for over 90% of transaction volume.
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Hong Kong’s Shangri-La group picks up second Australian hotel in a week with $48 million Brisbane Holiday Inn purchase

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Karratha in Western Australia’s Pilbara is getting a Hilton Hotel.
The $65 million hotel will be Australia's first under the DoubleTree branding, known for its warm welcome chocolate chip cookie, over its 40-year rollout of 300 hotels across 24 countries.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/stories/2012/06/cookies.jpg">
Hilton Worldwide and Ramtron Australia have signed an agreement, and the hotel is due to open in mid-2014.
Ramtron Australia Pty Ltd is a consortium led by local Western Australian developer Rothchester Hotel and Resorts Pty Ltd. The consortium also includes Karratha identity Kim Loxton, Tang Weng Fei of Singapore-based Ramtron Oil International Ltd, and Perth-based company AYR International Pty Ltd.
The eight-storey project features 144 guest rooms, 20 executive apartments, restaurant and bar, fitness centre and outdoor pool.
Brendon Grylls, WA Minister for Regional Development and Lands, says the growth of the resource sector needs to be accompanied by the growth of infrastructure and amenities.
The hotel will be located in the centre of the Karratha commercial area, 15 kilometres from Karratha airport and 20 kilometres from the port at Dampier.
“The DoubleTree by Hilton, Karratha will be our 16th property in Australasia and the first DoubleTree by Hilton in the region, joining the Parmelia Hilton Perth as the second Hilton Worldwide property in Western Australia," says Robert Scullin, vice president of development in Australasia for Hilton Worldwide.
Mirvac was named the preferred developer of a suburb of Karratha, the biggest town in the iron-ore rich Pilbara region, last November in a joint venture with the local land authority. The $1.5 billion project, which will create a new suburb, Mulataga, to accommodate 8,000 people.
To capitalise on the mining boom on the other side of the country, download our<a href="https://www.propertyobserver.com.au/ebooks/free-ebook-property-investing-in-queenslands-resources-boom" target="_blank"> free eBook on investing in Queensland's resources boom.</a>
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