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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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>
Let's face it, we’re living through a period of great economic volatility, and a lot of what we hear from the media lately is scary stuff. 
Each day seems to bring more potential doom and gloom – another report of a company failure, more jobs lost, a schizophrenic global economy and concern about an impending recession around the world. 
This continuing conveyer belt of bad news has a way of instilling fear into us, causing many of us to withdraw from the markets and become obsessed with the worst-case scenario. 
Some doomsayers are suggesting we should sell up all our properties before the almighty crash arrives here, just like it has in the US and in parts of Europe, while other commentators suggest our current markets present some great opportunities. 
So is it a good time to buy properties or is it time to sell up everything? 
I wouldn’t blame you for feeling confused – it's difficult to sort through all the information and statistics bombarding us every day.
Sure, the real estate markets have slowed down and property values have fallen over the last year or two.
But while the doomsday speculators would like us to believe this is the end of the world as we know it, the truth is there are always peaks and troughs in property. It's just the way the market works.
Since I started investing almost 40 years ago, I’ve lived through nine property cycles, and in every decade there has been a three- or four-year period when the property markets have been flat or falling. Yet at the end of each decade the value of well located properties have doubled.
Why property values in Australia will increase in the long term
And there is no reason that this won’t continue to be the case for capital city properties around Australia.
The long-term value of property markets will be buoyed up by:
<ul>
<li>A growing population as we import more people to provide the required skilled labourers as well as replacing  the retiring baby boomers; and</li>
<li>our nation becomes wealthier driven by the mother of all property booms.</li>
</ul>
Why we won’t have a property crash: And we won’t have a property crash here like has happened in overseas markets because a number of factors are underpinning our property markets including:
<ul>
<li>
A healthy economy that has bucked the global trend as it grows strongly and that has become the envy of most developed nations. But there is still room for the government to stimulate growth further if required. (Hopefully the government has learned for last time and will think of something more sensible than pink bats) 
</li>
<li>Even though our interest rates are relatively low in the hope of stimulating the economy, the RBA has the ability to drop them further if required to further stimulate the economy. Compare this to overseas, where interest rates in the USA, Britain, Japan and Europe have been so close to zero that there is no scope to stimulate the economy with low rates. 
</li>
<li>Our low unemployment rate means that the average Australian’s job is secure. While job security fears appear to be playing on consumer confidence, data released by the Australian Bureau of Statistics showed the number of people in work rose by 39,800 in May, blowing out of the water some commentators expectations rising unemployment. Of course the job losses in sectors undergoing structural change are a concern, but we do need to focus on the big picture and remember that unemployment is close to historical lows. 
</li>
<li>We have a sound banking system and relatively few people in mortgage distress. 
</li>
<li>Our balance sheets are in good shape. Our government, our banks, many companies and most Australians have taken a conservative view since the GFC and paid down debt, including company debt, home mortgages and credit card debt.  In fact, at much of the outstanding household debt is in the hands of the wealthier people, those who can afford it. 
</li>
<li>We’re in the early stages of the mother of all resources booms. Sure China has slowed down a little recently, but there’s hundreds of billions of dollars worth of infrastructure spending already committed to Australia over the next few years and over the next two decades, the growth in China, India and to a lesser extent other developing Asian countries will underpin our resources sector.</li>
</ul>
 
<hr class="system-pagebreak">
 
Is the cup half empty or half full?
It’s important not to trivialise the possible consequences of the world’s problems, but equally it’s important to remember that every cycle brings downturns and times of opportunity.
In my experience, difficult economic times offer outstanding opportunities for those who are prepared.
You see, wealth is not necessarily lost during times of financial crisis. It is transferred from the financially uneducated to the financially fluent.
We have had global financial downturns before and we’ll have them again, because economic markets move in cycles. While the specifics may change, the patterns are similar.
The losers in financial crises will tend to be those who are over leveraged and don’t have cashflow buffers, those who speculate and investors who overreact and make long-term investment decisions based on short-term emotional factors.
On the other hand, the winners will be those cashed-up investors who have the long-term perspective to spot opportunities. 
The big lesson is: “This too shall pass.” Unfortunately the current world economic problems will not go away quickly, and we are entering new era in the financial markets. But this is not a time to panic or make rash emotional decisions. It is a time to learn from history. 
Take a look at the graph below from <a href="https://www.rpdata.com.au/">RP Data</a> , which highlight the upward growth of property over the long term. As you can clearly see, there have been long periods when the market has been flat before, but the general trend in property prices is an upward one.
<img src="/images/stories/2012/06/yardjune22.png">
In all capital cities growth has averaged around 8%, compounding each year over the last 25 years. 
But these are just averages. The better your property selection – where you buy, what you buy, how well you negotiate and how you finance your property investment – the better your returns could be. 
Look what happened over the last decade. Fact is about 10 years ago we were paying around $390,000 for the average house in Sydney, the median house price in Melbourne was just over $300,000 and in Brisbane the median house price was $171,000. It was $172,000 in Perth; $213,000 in Canberra,$189,000 in Darwin; $156,000 in Adelaide and $195,000 in Hobart.
Go back another 10 years to 1992 and we were paying around $182,000 for the average house in Sydney, the median house price in Melbourne was just over $138,000 and in Brisbane the median house price was $116,000. It was $172,000 in Perth; $96,000 in Canberra, $117,000 in Darwin; $108,000 in Adelaide and $91,000 in Hobart.
Fast forward 10 years. If history repeats itself, as it surely will, while the majority of Australians will sit on the sidelines waiting for things to work themselves out, a group of successful investors will be looking for and buying investment opportunities created by the changes. 
Then, when we look back in 10 years’ time we’ll probably remember a decade of economic turmoil, but, as always, we’ll wish we had bought more properties when they cost about 50% less when they were  “on sale” 10 years earlier.
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

The current economic turmoil presents opportunities for property investors

<html><body>
Median rental payments have risen by $95 per week between 2006 and 2011, according to 2011 census data released today by the ABS.
The represents a 50% increase over the five-year period.
Median national weekly rent is now $285 per week, compared with $190 in 2006.
The 2011 census also found that the proportion of households with rent payments greater than 30% of household income – the common definition of rental stress – rose slightly from 9.3% to 10.4%. 
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="319">
<a href="https://www.censusdata.abs.gov.au/ausstats/abs@.nsf/Lookup/2901.0Chapter49902011" target="_blank" title="Records the weekly rent paid for an occupied private dwelling and includes dwellings being occupied rent free.">Rent weekly payments</a>
</td>
<td width="104">
Australia
</td>
<td width="38">
%
</td>
<td width="101">
2006
</td>
<td width="38">
%
</td>
</tr>
<tr>
<td width="319">
Median rent
</td>
<td>
285
</td>
<td>
--
</td>
<td>
190
</td>
<td>
--
</td>
</tr>
<tr>
<td width="602" colspan="5">
 
</td>
</tr>
<tr>
<td width="319">
Households with rent payments less than 30% of household income
</td>
<td>
--
</td>
<td>
89.6
</td>
<td>
--
</td>
<td>
90.7
</td>
</tr>
<tr>
<td width="319">
Households with rent payments greater than 30% of household income
</td>
<td>
--
</td>
<td>
10.4
</td>
<td>
--
</td>
<td>
9.3
</td>
</tr>
</tbody></table>
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lschlesinger-FZcF9M3vE6

Renters paying 50% more a week in rent since 2006 with increase in proportion of households experiencing rental stress: ABS census 2011

<html><body>
The dominance of three-bedroom houses in Australia has waned from 2006 levels, while the proportion of houses with four or more bedrooms has risen by approximately the same amount, according to ABS 2011 census data released today.
The ABS 2011 census data shows three-bedroom dwellings account for 43.6% of Australian homes, down from 45.4% in 2006. Homes with four or more bedrooms now account for 30.3% of dwellings, up from 28.1% in 2006.
The proportion of two-bedroom, one-bedroom and studio homes, including bedsitters, remain somewhat steady at 19.1%, 4.7% and 0.1% respectively.
<img src="/images/stories/2012/06/bedrooms.gif" width="470">
The average number of bedrooms per dwelling has increased to 3.1 from 3, but the average number of people per home has not changed, sitting at 2.6.
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awalsh-7Ub9EypybQ

Four-bedroom home popularity soars: ABS 2011 census

<html><body>
The proportion of people living in detached houses has fallen by one percentage point between 2006 and 2011, with a shift towards more people living in units and townhouses, according to census data released today by the ABS. 
In total there are now 9,117,033 million private dwellings in Australia up from 8,426,559 private dwellings counted in the 2006 census. 
Of these private dwellings, 75.6% are separate houses, compared with 76.6% in the 2006 census, with proportional increases in the number of people living in a flat, unit or apartment and those living in a semi-detached, terraced house or townhouse. 
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="317">
<a href="https://www.censusdata.abs.gov.au/ausstats/abs@.nsf/Lookup/2901.0Chapter29902011" target="_blank" title="This variable classifies the structure of private dwellings enumerated in the Census. The information is determined by the Census collector.">Dwelling structure</a>
</td>
<td width="104">
Australia
</td>
<td width="38">
%
</td>
<td width="104">
2006
</td>
<td width="38">
%
</td>
</tr>
<tr>
<td width="317">
Separate house
</td>
<td>
5,864,573
</td>
<td>
75.6
</td>
<td>
5,472,527
</td>
<td>
76.6
</td>
</tr>
<tr>
<td width="317">
Semi-detached, row or terrace house, townhouse etc
</td>
<td>
765,978
</td>
<td>
9.9
</td>
<td>
658,858
</td>
<td>
9.2
</td>
</tr>
<tr>
<td width="317">
Flat, unit or apartment
</td>
<td>
1,056,236
</td>
<td>
13.6
</td>
<td>
932,862
</td>
<td>
13.1
</td>
</tr>
<tr>
<td width="317">
Other dwelling
</td>
<td>
66,666
</td>
<td>
0.9
</td>
<td>
76,080
</td>
<td>
1.1
</td>
</tr>
</tbody></table>
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Proportion of people living in apartments and townhouses rises: ABS 2011 census

<html><body>
Despite anecdotal reports of the growing numbers of single-member households, the official data showed a slight decline in 2011 ABS census. There was an increase in the percentage of  group households.
 
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="350">
<a href="https://www.censusdata.abs.gov.au/ausstats/abs@.nsf/Lookup/2901.0Chapter35002011" target="_blank" title="Describes the type of household within a dwelling and indicates whether a family is present or not and whether or not other unrelated household members are present.">Household composition</a>
</td>
<td width="110">
Australia
</td>
<td width="40">
%
</td>
<td width="110">
2006
</td>
<td width="40">
%
</td>
</tr>
<tr>
<td width="350">
Family households
</td>
<td>
5,550,611
</td>
<td>
71.5
</td>
<td>
5,122,763
</td>
<td>
71.7
</td>
</tr>
<tr>
<td width="350">
Single (or lone) person households
</td>
<td>
1,888,697
</td>
<td>
24.3
</td>
<td>
1,740,481
</td>
<td>
24.4
</td>
</tr>
<tr>
<td width="350">
Group households
</td>
<td>
321,005
</td>
<td>
4.1
</td>
<td>
280,851
</td>
<td>
3.9
</td>
</tr>
</tbody></table>
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jchancellor-FAypfDUnLy

Group, not single households on the rise: ABS 2011 census 

<html><body>
Of occupied private dwellings in Australia, 32.1% were owned outright, 34.9% were owned with a mortgage and 29.6% were rented, the latest 2011 census data reveals.
<table style="width: 470px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="350">
<a href="https://www.censusdata.abs.gov.au/ausstats/abs@.nsf/Lookup/2901.0Chapter55502011" target="_blank" title="Describes if an occupied private dwelling is owned, being purchased, rented or occupied under another arrangement.">Tenure</a>
</td>
<td width="110">
Australia
</td>
<td width="40">
%
</td>
<td width="110">
2006
</td>
<td width="40">
%
</td>
</tr>
<tr>
<td width="350" colspan="5">
Occupied private dwellings
</td>
</tr>
<tr>
<td width="350">
Owned outright
</td>
<td>
2,488,149
</td>
<td>
32.1
</td>
<td>
2,430,730
</td>
<td>
34.0
</td>
</tr>
<tr>
<td width="350">
Owned with a mortgage
</td>
<td>
2,709,433
</td>
<td>
34.9
</td>
<td>
2,436,118
</td>
<td>
34.1
</td>
</tr>
<tr>
<td width="350">
Rented
</td>
<td>
2,297,458
</td>
<td>
29.6
</td>
<td>
2,010,451
</td>
<td>
28.1
</td>
</tr>
<tr>
<td width="350">
Other tenure type
</td>
<td>
70,070
</td>
<td>
0.9
</td>
<td>
60,080
</td>
<td>
0.8
</td>
</tr>
<tr>
<td width="350">
Tenure type not stated
</td>
<td>
195,213
</td>
<td>
2.5
</td>
<td>
206,717
</td>
<td>
2.9
</td>
</tr>
</tbody></table>
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Australian mortgage-free home ownership has fallen since 2006: ABS 2011 census

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Water usage figures suggest more than 90,000 homes in Melbourne are possibly unoccupied, according to research by lobbying groups Earthsharing Australia and Prosper.
Casting doubt on regularly reported vacancy rates, Deakin researcher Phillip Soos used City West Water and Yarra Valley Water figures to look for homes that consume less than 50 litres of water per day, saying these are all most likely unoccupied. The average water use by households is 350 litres per day, with a single toilet flush using up to 12 litres of water.
Soos says the homes his report found are not identified by REIV's rental vacancy rate and says the listing of these homes on the rental market would alleviate rental problems in the city.
He says 5.9% of homes he looked at were vacant and says the bulk of these are speculative homes, which rely on capital gains rather than rental incomes.
"Landlords have an incentive to withhold properties from the rental market, as they profit substantially from realising capital gains upon sale rather than from long-term rental income," Soos writes.
<a target="_blank" href="https://www.earthsharing.org.au/wp-content/uploads/Philip_Soos_Speculative_Vacancies_2012_Report.pdf">Essendon North has the highest vacancy rate</a>, followed by Docklands and Williams Landing.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/water.gif"><img src="/images/stories/2012/06/waterthumb.gif"></a>
"Surprisingly, many of these suburbs are in inner and mid-rim locations, while some are out on the fringes. Given the desirability of close proximity to the city, inner suburbs would be expected to have the least potential vacancies," he writes.
He says many investors are holding onto properties without leasing them out – contributing to the rental shortage faced in Melbourne.
"Investors are faced with a wide array of costs associated with maintaining tenants in rental properties to the point that increases in the capital value of property has become the primary source of profit," he writes.
"The rapid run-up in housing prices has provided a lucrative torrent of windfall gains via capital appreciation for investors while rents have not kept pace.
"Faced with this set of circumstances, investors may conclude that renting properties make for dubious investments when factoring in the wide array of costs associated, including time and effort."
Soos recommends government provide a substantial disincentive to withhold properties from the rental market by increasing land value tax.
He says this will lower land values as it cannot be passed onto tenants and it would act as a holding cost, requiring a rental income to cover it.
Soos also recommends the government investigate why long-term vacant properties are held off the rental market and publish the results of its inquiry.
"Until the government conducts an investigation into the causes of long-term vacancies, the benefits of having vacant property used for rental will go unmet, with tenants losing out."
Earthsharing spokesperson Kath Fitzgerald says the figures are "jaw-dropping" and that property speculators "create a media atmosphere that there is nowhere to live".
"Australia has one of the most generous residential property taxation regimes in the world. Capital appreciation has dwarfed rental income for years. Withholding properties from the market is a rational investor strategy."
"The National Housing Supply Council claims a 228,000 housing shortage nationwide. We say there is nearly half that locked up here in Melbourne."
Earthsharing Australia is a Melbourne-based organisation that believes poverty and social disorder stem from the misuse of land.
Prosper Australia is an NGO that aims to distribute wealth produced from land to the entire community.
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Water usage rates suggest Melbourne is awash with unlisted vacant properties

<html><body>
Tenant demand for pop-up shops is increasing in Melbourne, with one commercial agent reporting they account for nearly 10% of leases he has signed in the last year.
CBRE associate director of retail services Max Cookes says six out of an estimated 70 leases he has signed in the last year have been pop-up shops, with demand increasing.
“There’s certainly an increased demand, many more tenants are wanting to do them,” says Cookes.
“It can be a win-win situation. Sometimes when you do a deal, especially with a big international, there’s a big leading time. They can’t hand over for six months. With a pop-up shop you can fill that shop for those six months so the landlord keeps earning income.
“You can secure a high-calibre client and maintain income at the same time.”?
<a href="https://www.propertyobserver.com.au/retail/pop-up-shops-on-the-rise-as-melbourne-retail-vacancy-rate-falls-cbre/2012032353993" target="_blank">In March, CBRE reported overall vacancy across Melbourne’s top 10 retail strips had fallen to 3.5%</a> over the second half of 2011, a figure much bolstered by pop-up shops. Pop-up shop leasing has been most prominent along Bridge Road, Chapel Street, Bourke Street and the CBD.
One recent very popular <a href="https://www.propertyobserver.com.au/retail/one-direction-has-that-one-thing-with-chapel-street-pop-up-shop/2012060454958" target="_blank">pop-up shop on Chapel Street sold merchandise for boy band One Direction.</a>
Cookes says pop-up shop lease times vary immensely.
“You lease until you find a tenant, until a permanent solution is determine,” he says. ?
“It’s very rare you do them for a few days, though. It does happen, it’s usually more clearance sales.? With pop-up shops, tenants can test the waters and see if an idea is viable.
“There’s certainly increased demand from tenants to do pop-up stores purely based on the idea that tenants can trial a market without committing to a long-term lease,” he says.
“And the rent is going to be fraction of what you would have to pay annually.”?
Cookes says there is no real formula for working out the rent pop-up shops pay.
“It’s determined by tenant demand. It’s whoever will pay the most. It really ranges. It can be $10,000 a week if it’s a high-profile location, but between $10,000 and $20,000 a month is more common.? Pop-up shops in retail strips can maintain the impression of demand.”
“Generally if it’s part of something bigger and there’s a run of five to six shops then we always push to get a temporary tenant to keep up the activation of a retail strip. However, it’s not always ideal for an owner and can make a site harder to lease,” Cookes says.
“Owners are happy to entertain it as long as it doesn’t get in the way of a leasing campaign. It can look like the owner might not be serious about getting a tenant.
“If I’m negotiating a deal with a potential tenant and the landlord is getting rent from someone else it can seem that they’re not being realistic about the rent. If it’s vacant the mindset is a little bit different. It’s easier to lease a shop that’s vacant than when it’s trading.”?
One agent Property Observer spoke to suggested that agents often didn’t charge fees given the short lease time, but Cookes disputes this.
“Of course we can charge fees. Why would we do the work if we weren’t going to get paid? We take a percentage of the total income. Sometimes we don’t bill until the end (given the ongoing nature of pop-up shops).”?
Cookes says there’s no central way for tenants to find a pop-up shop lease and they are not advertised on real estate listing portals.
“They just have to call me. Approach an agent who’s in the know.”
Retail analysts have dubbed the shoppers who flock to pop-up shops as “transumers”.
One of the most prominent city pop-up shops is the Peter Jackson store on Collins Street (pictured below), currently leased until a new international tenant moves in.
<img src="/images/stories/2012/06/pjackson.jpg">
“They’re trading until we tell them they have to get out. That’s a case in point,” says Cookes.
Cookes says he’s been impressed with the level of work some operators put in.
“There’s some really good pop-up store operators. There’s people who just take them to the next level. They look like they’ve been there permanently. And there’s people who just put in shelves and put in stock. They do a job for their business, but aesthetically it’s not fantastic.”
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Tenants test the Melbourne retail waters with increased demand for pop-up shops

<html><body>
Furniture sales have resembled a well-used couch over the past five years. Trading conditions across the furniture market have been affected by volatile demand across the housing industry along with fluctuations in disposable income, consumer sentiment and consumer tastes and preferences.
These factors created mixed results for furniture retailers, which culminated in sales falling by 1.7% per annum in the five years through 2011-12. Sales were also affected by increasing levels of competition from department stores and online shopping websites. Despite this, the overall furniture market remained resilient, offering consumers the latest trends in furniture fashion displayed in clever store layouts, eye-catching catalogues and through offering flexible terms of payment.
Industry revenue is set to rise by 1.5% to $7.3 billion in 2011-12. Consumer demand for furniture goods will be driven by growth in disposable income levels of 4.4% and a more stable trading environment evidenced by a rise across the domestic economy. However, sales will be affected by a decline in house construction and almost static change in interest rates. Sporadic shifts in consumer spending patterns along with continued demand for heavily discounted and promotional products will also characterise industry sales for the year.
The industry will remain subject to intense competition from department stores and, in particular, online shopping sites, which have become a real threat to the future viability of the industry. In terms of total market size, merchandise retailed by furniture stores may also be purchased from department stores, fabric retailers, and online shopping and auction websites. IBISWorld estimates that the industry accounts for about 60% of total furniture retailing sales, with the remaining 40% of revenue derived from sales by other retailers. Hence, the total retail market for furniture items is estimated to average about $12.2 billion.
<img src="/images/stories/2012/06/furna1.gif">
<img src="/images/stories/2012/06/furna2.jpg">
Furniture retailers will experience a steady trading environment over the next five years, with sales rising 2.1% per annum to reach $8.1 billion in 2016-17. Demand will primarily be driven by solid growth in disposable income levels, which will influence the quantity and quality of merchandise purchased by consumers. As a result, retailers may experience a shift in consumer preferences toward middle-market furniture. Sales will also be boosted by a recovery in consumer sentiment, which is expected to fuel growth in consumer spending power. Despite the positive trading conditions expected during the next five years, furniture retailers will continue to experience intense competition from external players, such as department stores and online shopping sites eager to attract a larger share of the market.
 
<hr class="system-pagebreak">
 
Product segmentation across the furniture retail market is largely guided by function and form. The relative share of each product segment has experienced modest change over the past five years. Changes in consumer tastes and furniture trends provided much of the impetus for growth across various product segments.
<img width="470" src="/images/stories/2012/06/furna-3.jpg">
Lounge and dining room
Lounge and dining room goods dominate furniture retailing and account for about 55% of total industry sales. Items classified under this segment include lounge suites (single-seater, two-seater and three-seater couches and modular suites), coffee tables, lamp tables, dining tables and chairs, buffets and hutches. This segment experienced significant change over the past five years with regard to design and functionality. Key trends include the use of glass, chrome and steel to create a modern, sleek and at times futuristic look. While traditionally shaped furniture continued to fill showroom floors, consumers increasingly sought individual designs and colours to transform their homes into modern living spaces.
Bedroom
Bedroom furniture is the second-largest product segment for the industry, accounting for about 33% of total industry sales. Items classified under this segment include bedheads and footboards, side tables, tallboys, dressers and mattresses. Changing trends and fads also affected the range of bedroom furniture stocked by industry retailers over the past five years. International markets and seasonal colours significantly influenced product lines. Advances in technology notably affected the range and functionality of mattresses on the market.
Outdoor and garden
Outdoor and garden furniture experienced strong growth over the past five years, due to the increased popularity of outdoor entertaining, the importance of garden design and the trend toward incorporating the garden settings as part of a home living area. The industry thus experienced a rise in the range of outdoor and garden furniture available to suit all household budgets and garden spaces.
Blinds
Blinds experienced growing popularity, driven by growth in the residential building construction cycle and a change in tastes and trends. While blind styles such as Holland and Roman maintained a constant share of the total blind market, the industry experienced growth in demand for timber blinds.
Other
Other furniture, such as coat stands and consoles, remained a relatively small product segment for the industry. Demand generally stemmed from a limited consumer group, often consisting of older consumers or those with a higher level of disposable income who are able to afford additional furniture pieces.
<h3>Major Players</h3>
Harvey Norman Holdings Ltd accounts for 9% market share followed by Super A-Mart Holdco Pty Limited (5.8%) and Steinhoff Asia Pacific Holdings Pty Ltd (4.5%)
<h3>Industry Outlook</h3>
Furniture retailers will bounce back over the five years through 2016-17, with sales expected to rise 2.1% per annum. Intense competition from external operators, namely department stores and online shopping and auction sites will remain a real threat to the viability of operators across the industry over the next five years. However, the industry will rebound by offering consumers specialised service and a differentiated product range, and by ensuring that products on the floor match consumer demand and expectations. Consumer demand will also be driven by trends in the level of real household disposable income, the consumer sentiment index, housing construction, household formation and interest rates.
To purchase IBISWorld’s full report on Australia’s Furniture Retailing Industry <a rel="nofollow" href="https://www.ibisworld.com.au/industry/default.aspx?indid=411">click here</a>.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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cknowlton-QnEa6ntUYP

Furniture retailers need a revamp to keep up with changing housing decor tastes

<html><body>
The May 2012 results of the RP Data-Rismark Home Value Index showed that capital city house values fell by 1.8% over the month compared to a 1% increase in unit value.
The trend has been evident for some time and although unit values have fallen by 1.5% over the past 12 months, detached houses have recorded much larger value falls of 5.8%.
Across each major capital city, the unit market has been more resilient to falling values over the past year compared with detached houses. This would seem to suggest that affordability barriers in the market are encouraging home buyers to look for more affordable housing options such as units and townhouses. This is highlighted by the fact that over the three months to May 2012, the median house price across the combined capital cities ($490,000) was $60,000 more expensive than the median unit price ($430,000).
Across each individual capital city market, the current difference between the median selling price of a house and unit is more than $55,000. In the two most expensive housing markets (Sydney and Melbourne), the difference between house and unit prices are $148,450 and $94,450 respectively. The differential between selling prices of houses and units lends further insight into the reason why the unit market has recorded lower value declines over the year than that of detached houses.
Click to enlarge
<a href="/images/stories/2012/06/rpjune121.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/rpjune121thumb.gif"></a>
Another likely reason for the superior performance of units is that, from an investment perspective, rental yields are typically stronger than they are for houses. Gross rental yields for houses are lower than they are for units in each capital city market except Darwin, highlighting that from an investment perspective units are often a superior option to houses. Click to enlarge
<a href="/images/stories/2012/06/rpjune122.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/06/rpjune122thumb.gif"></a>
The superior performance of units to that of detached houses has been evident over recent years. Over the past five years, capital city detached house values have risen at an average annual rate of 2.7% compared to a 4.2% increase in unit values each year. Looking back further to the past decade and 15 years, you can see that the long-term performance has seen house values increase at a more rapid rate than units.  
<hr class="system-pagebreak">
The commonly held belief is that houses appreciate in value at a more rapid rate than units due to the underlying land value. However, that has simply not been the case in recent years. Importantly, unit values have outperformed houses over the past five years, a time over which capital city home values have appreciated at a much slower rate than the past 10 and 15 years. The superior performance of units over recent years would tend to indicate that buyers are seeking more affordable housing options and these are largely available in the unit market, as opposed to the detached housing market.
 
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Across individual capital cities, each one except for Darwin and Canberra has recorded a superior value change performance for units as opposed to houses over the past 12 months. The same situation is prevalent across the same cities over the past five years, which really highlights once again that buyers in the larger capital city markets are looking for more affordable housing options. This has resulted in a superior performance to that of detached houses in recent years.
 
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Across each capital city except for Darwin and Canberra, current unit values have experienced a smaller decline from the market peak than house values. Across the combined capital cities, unit values have fallen by just 2.8% from the market peak compared to an 8.1% fall in house values.
Overall, the data highlights that the popularity of units is increasing and they have outperformed houses in terms of value growth over recent years.
There are a number of reasons for the increasing popularity of units, namely: they are generally more affordable; there is a growing acceptance of units as a viable alternative to living in a detached house; units typically provide better rental yields; and are they are often located in more strategic locations with relation to surrounding amenity and transport infrastructure.
We would expect that the popularity of unit living will continue to grow over the coming years as buyers are increasingly conscious of housing location and cost.
Cameron Kusher is senior data analyst at <a href="https://www.rpdata.net.au/" target="_blank">RP Data</a>.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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