Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

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

<html><body>
The national residential vacancy rate remained unchanged at a tight 1.8% in May, with Melbourne having the highest number vacancies and the highest vacancy rate, according to SQM Research. 
There are currently 50,408 residential vacancies nationally, representing a fall of 440 vacancies month-on-month.
Year-on-year however, vacancies have risen by 7,270, with the national vacancy rate increasing by 0.2% since May 2011. 
None of the eight capital cities recorded an increase in the vacancy rate over the month, with vacancies tightening by 0.1% in Brisbane, Canberra and Darwin in May. 
Melbourne has the highest vacancy rate by far at 3.1%, while Darwin is the tightest market with just 100 vacancies, or a vacancy rate of 0.4%. 
The Real Estate Institute of Australia (REIA) says a vacancy rate of 3% or higher is “generally considered to reflect an oversupply of rental accommodation” while anything under 3% indicates a “strong demand for rental accommodation”.
 
Here’s a guide to residential vacancies in the eight capital cities starting with Melbourne:
<img src="/images/stories/2012/06/11427.gif">
The number of residential vacancies in Melbourne, reflecting a May vacancy rate of 3.1%. A year ago the vacancy rate was 2.4%, with 8,578 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/9140.gif">
The number of residential vacancies in Sydney, reflecting a May vacancy rate of 1.7%. A year ago the vacancy rate was 1.3%, with 7,034 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/4120.gif">
The number of residential vacancies in Brisbane, reflecting a May vacancy rate of 1.4%. A year ago the vacancy rate was 1.6%, with 4,584 properties available for rent.
 
<hr>
 
<img src="/images/stories/2012/06/2680.gif">
The number of residential vacancies in Adelaide, reflecting a May vacancy rate of 1.6%. A year ago the vacancy rate was 1.3%, with 2,041 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/1157.gif">
The number of residential vacancies in Perth, reflecting a May vacancy rate of 0.6%. A year ago the vacancy rate was 1%, with 1,770 properties available for rent
 
<hr>
<img src="/images/stories/2012/06/753.gif">
The number of residential vacancies in Hobart, reflecting a May vacancy rate of 2.6%. A year ago the vacancy rate was 1.7%, with 467 properties available for rent.
 
<hr>
 
<img src="/images/stories/2012/06/434.gif">
The number of residential vacancies in Canberra, reflecting a May vacancy rate of 0.9%. A year ago the vacancy rate was 0.6%, with 272 properties available for rent.
 
<hr>
<img src="/images/stories/2012/06/100d.gif">
The number of residential vacancies in Darwin, reflecting a May vacancy rate of 0.4%. A year ago the vacancy rate was 1.3%, with 317 properties available for rent.
</body></html>

lschlesinger-FZcF9M3vE6

Residential vacancies at 1.8% nationally in May with Melbourne's landlords facing biggest challenge at 3.1%: SQM 

<html><body>
One of Melbourne’s most well-known nightspots and the former site of the Metro nightclub has been listed for sale by receivers Ferrier Hodgson, with Asian developers and nightclub operators showing interest.
The building dates back 100 years, starting life as a cinema.
The three-storey building, currently operating as live music venue The Palace, will be marketed exclusively by CBRE sales agents Mark Wizel, Josh Rutman and Scott Callow via an international public tender campaign closing on July 27.
The building is stands at 20-30 and 30A Bourke Street in the Melbourne CBD between Spring and Exhibition streets on a 1,442-square-metre site with 25 metres of Bourke Street frontage.
It is just a stone’s throw from the Victorian Parliament and well-known Melbourne eateries Grossi Florentino, The European and Pelligrini’s.
Wizel says early developer interest has “centred on the highest and best use for the property being a high-density residential project subject to the relevant planning approvals”.
“Sites of this size at the top end of Bourke Street are not readily available for acquisition and, as a result, we are anticipating strong interest from local and overseas buyers, with a particularly high level of enquiry expected from Singaporean, Malaysian and mainland Chinese developers.”
The property is also expected to attract both investors and potential owner-occupiers, given the highly lettable existing improvements – acts at the Palace have included Kylie Minogue, The Darkness and Kaiser Chiefs.
Callow says there has also been strong early interest from nightclub operators and publicans who could look “to restore ‘The Metro’ to its former glory days as one of Melbourne’s leading music and entertainment venues.”
Receiver and Ferrier Hodgson partner George Georges, who was appointed in February this year, says the landmark property had already generated significant interest.
“The Metro is well known as part of the fabric of life in central Melbourne,” he says.
“It’s a brilliantly located site with a huge variety of optional uses and tremendous potential for development.”
The 100-year old building has also been home to the Melbourne Revival Centre.
The property with reported $15 million expectations is owned by Kefi Nominees, directed by nightclub identity and property developer Jerry Pilarinos.
It has been put up for sale by Ferrier Hodgson after Pilarinos’s company Kefi Nominees was forced into administration by Bankwest.
Kefi acquired it in 2007 for $10 million from Irene Meletsis.
Kefi listed The Metro for sale in May last year through Colliers International with an asking price of $20 million as a residential development site, but without a building permit.
At the same time as Kefi listed The Metro for sale, Fairfax Media reported that Pilarinos sold an apartment project, the Tresor on the north-west corner of Chapel Street and Alexandra Avenue, to builder Fridcorp for around $13 million.
He also failed last year in a court bid to recoup $500,000 he invested into small technology company Computronics Holdings.
Songstress Lana Del Rey is listed as next to perform at the Palace, with 1980s icon Rick Astley appearing in November.
</body></html>

Jerry Pilarinos' Kefi Nominees set to sell Melbourne venue The Palace, formerly the Metro nightclub

<html><body>
House prices have fallen more than unit prices over the past year. Additionally, the most expensive properties continue to drag down the overall index. 
Dwelling value trends vary widely from city to city. 
{qtube vid:=wgqwDhETjVI&amp;feature=context-ch}
Tim Lawless is research director at<a href="https://www.myrp.com.au/" target="_blank"> RP Data.</a>
</body></html>

tlawless-5VLUrbAk9s

Housing market remains soft despite rate cuts: Tim Lawless

<html><body>
According to a recent report by Property Watch, overseas investors appear to be strongly buying office buildings within Docklands and the CBD of Melbourne.
Currently, these office purchases account for around 36% of all very major deals being transacted — and they seem to be driven by Melbourne having the second lowest vacancy rate for this kind of property, after Perth.
Apparently, investors are not being put off by the federal government's recent decision to double withholding taxes for international landlords.
It seems the reason being given for this surge in buyer activity is Australia's economic strength — low inflation, declining interest rates, solid population growth and relatively low unemployment.
And these underlying fundamentals are what obviously appeal to overseas investors, as they consider the foreseeable uncertainties within the US and Europe.
<img src="/images/stories/2012/06/langjune18.gif">
As a result, investors are being drawn to the expected rental growth due to a clear lack of new construction, currently in the pipeline.
This became apparent during 2011, when just over 41,000 square metres of new office space came onto the market, which was well below the annual 135,000 square metres 10-year average.
Bottom line: Sometimes it takes a few "outsiders" to cause local investors to realise that things are not nearly as bad, as what some pundits would have them believe.
But here's the thing — by the time the "overly cautious" have come to realise the truth of where the market currently sits, many of those attractively priced commercial property opportunities will already been snapped up, by savvy offshore buyers.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
</body></html>

chrislang-EQKojcgJPV

Overseas investors showing strong interest in Melbourne office stock, undeterred by double withholding tax

<html><body>
One of the first generalisations you learn when it comes to assessing real estate is the closer you are to the city, the higher the price will be. While it may be a sweeping statement with data proving the rule has many exceptions, it simply outlines what inspires one buyer to value a location over another in terms of monetary value – and that’s time.
The time it takes to travel from A to B is the most important consideration for today’s property buyers rather than the exact kilometre distance from the CBD. If a buyer is able to travel to work, the footy and any other “lifestyle” amenity on the priority list within a 30- to 40-minute period, the desirability factor increases greatly and when it comes down to it, you can value a building any which way you like, but in the end it’s only worth what a purchaser will pay. Unless you get the time factor right, demand is always going to be marginal.
When buying residential real estate, the real commodity a home buyer will purchase is the lifestyle on offer. Dwellers don’t live in houses so much as they live in communities. Therefore, building ever more houses on the outskirts of our cities is not the be all and end all for Australia’s population growth – although it’s a vitally important component if we’re to ease inflation in the already stretched and strained established inner- and middle-ring suburbs. Regardless of this, unless planning includes the other considerations I’ve outlined above, the new housing market risks long periods of stagnation in between the various government incentives on offer.
We’re all aware Australia faces an affordable housing shortage. Prices have risen past the reasonable level when judged against the average wage, and first-home buyers are all but an endangered species. I’ve written regarding the reasons for this numerous times. Quite simply, we’re a country that has centralised itself on an urban lifestyle and overwhelmingly so in the major capital cities dotted around the coast line.
As a result, no one wants to live “out of town” (or at least the vast majority of Australia’s population don’t – some 75% of them) and we’re all trying to cope with a level of unprecedented population growth from in coming immigrants – all of whom seem to have a desire to live in the inner city. When it comes down to it, it’s impossible to cope with this growth unless density increases substantially – which is precisely what the capitals’ 2030 city plans have in mind.
<img src="/images/stories/2012/06/boxhill.jpg">
Thus far urban planners and profit-chasing developers just can’t seem to develop a standard of housing that will attract the average home buyer (or, for that matter, renter). Just take a look at this <a href="https://bit.ly/Lha9jJ">eyesore</a> (pictured above) proposed in the Asian-dominated middle-ring Melbourne suburb of Box Hill. The developer’s website states” “The proposed development is significantly higher than the immediate surrounds and its striking form will be a landmark for Box Hill”. A landmark for Box Hill or not, I can’t conceive anyone thinking it’s something property buyers would fight over. As I’ve pointed out on numerous occasions, the disadvantages of living in high-rise accommodation are the major factor in the lack of genuine home buyer demand they inspire.
 
<hr class="system-pagebreak">
 
It’s usually only considered a desirable option when the buyer is in the higher price bracket able to choose an apartment offering attractive views – and considering the abundance of high-rise development proposed across our major capitals, this is anything but a guarantee for the life of the property. Parking – if you’re lucky enough to get it – commonly requires a long trip up multiple levels of a multi-storey basement car park and then in peak hour, a queue to get out as cars ahead filter onto the busy main road (most high-rise development is located on busy main roads).
In addition to this, residing in the same building with so many others makes resolving owners’ corporation issues a relative nightmare. To get anything approved obviously requires a majority vote. If you’re fortunate enough to have a good showing at the annual meeting there may be a chance of getting a repair or dispute resolved. However, owners’ corporation meetings are sparsely attended at most low-rise developments with fewer than 20 units – therefore a majority showing at a meeting for a high-rise development, within which most units are rented along with a high proportion of foreign ownership, is unlikely.
Waiting for the lift and as it stops on its way up and down. Paying extortionate owners’ corporation fees to cover the size and various components of design (which often include a gym, swimming pool and high level security features) – all add up to buyers choosing to sit on the rental ladder rather than buying into a development that they’ll move out of as soon as they’re able. All in all, high rise is not currently offering the home buyer market what they want. It’s principally servicing rental needs.
Having said this, there are high-density developments that are extremely successful and as a consequence, tightly held. Furthermore, it’s possible to develop models that are relatively “low rise” yet still take up a similar footprint, housing the same number of residents. Unlike high rise, where the outdoor communal areas are limited to rooftop gardens with space around the building (the required setbacks), which is generally unused, a low-rise design built around a central communal courtyard is a proven success. I can cite a few examples in Melbourne’s Southbank that attract consistent buyer demand and consequently when assessing the historical data, prove stable capital growth. Furthermore, the level of “perceived” density of a relatively low-rise yet high-density development, in comparison with residential tower blocks, is predictably much lower. There’s less overall impact on the street aspect for neighbouring homes and they are generally better received. However, regardless of the need to increase inner urban density, it’s also necessary to continue building a steady supply of new accommodation further away from our capitals if we accept population growth is inevitable.
Thus far, most first-home buyer schemes have focused on sweeping incentives that cover established real estate as well as new homes. Property advocates have long argued how essential it is to scrap incentives for established dwellings and if grants are needed at all – use them to fuel new growth. The “noisy” housing data when a grant is introduced and then withdrawn does no one any favors aside from the investor who manages to capture the wave when selling. We don’t need incentives to encourage the purchase of established real estate. The desirability factor is there already.
In the recent NSW budget, it was a welcome change to see all incentives pushed into new homes. The shortage of property in NSW is greater than that of some other states, so encouraging additional supply has been broadly welcomed by all. However, you’ve got to have some sympathy for the first-home buyers who do venture out buoyed on by the incentives because planning in the outer-suburban estates has been woefully unsuccessful principally for the reason I stated at the beginning of this article: time!
Despite all the rhetoric broadcasting the contrary, when new suburbs are zoned you can guarantee promised facilities to encourage commuters who need to get back and forth from the major commercial centres within the hour will never eventuate. Without them, you can forget any hope of attracting consistent demand to the outer suburban estates. Grants and incentives may produce a wave of growth in the newer suburbs, but as soon as the lifestyle – or lack of such – bites and grants are once again withdrawn, the market will stagnate and we’ll be back to square one.
If there’s no money set aside to build the needed amenities alongside the residential dwellings at the start of the project, you’ll always need to introduce incentives to encourage home buyers to make the move. It’s not the distance from the CBD – it’s the time. Buyers could accept outer-suburban living a lot more readily if they were able to commute within a reasonable time frame and demand would go up naturally without the need for a “sweetener”.
 
<hr class="system-pagebreak">
 
It’s really unforgivable to encourage erosion of city fringes, eating into arable farmland and areas of natural beauty unless the compensation is a genuine answer to population growth. We all understand that if you purchase in the inner city land sizes are smaller and to keep around the city median, choices are going to be limited to apartment living. However, for most people there is no choice but to stick to established areas. If they do dare to venture out into “never never land”, they face endless hours sitting in peak-time traffic and a vague dream of the government-proposed promise of a train service.
We’re currently going through this yet again in Victoria. Aside from the abundance of poorly designed high-rise apartments popping up in the CBD, fringe growth is back on the agenda. The state government has released plans for six new suburbs and 12 new train stations. If you’re a first-home buyer reading that as a headline it sounds fantastic. However of the “12 new train stations”, only two have had funding approved. The rest – so says the government – will be part funded by developers along with additional infrastructure, all compensated with tax rebates. However, guess who’s going to end up paying if the developers agree to the above proposal (which I doubt will happen)? The home buyer, of course – it will all be added on to the already inflated prices!
Anyone familiar with Melbourne’s planning history will be able to prove how “airy fairy” the above proposals sound. For example: what happened to the Doncaster and Rowville train stations initially promised in 1890? Plans commenced in 1969, and yet residents are still waiting – not so patiently! Furthermore, once any proposed train stations are finally built and functioning, the level of demand has already outgrown the facility. For example, Lynbrook train station, which opened in April this year, has already “outgrown” the number of people wanting to commute. <a href="https://bit.ly/KIdJkb">Two weeks</a> after opening, and the 900 space car park is not only packed to capacity, the surrounding neighborhood has taken on the overflow, regardless of restrictions. Forget getting the peak hour train – it’s already over brimming.
Existing train lines were promised upgrades years ago – Mornington and Melton, for example, have plans pending to be “electrified”, however once again, some 20 years later, residents have long lost faith it will happen. It’s not just Melbourne that such outlandish examples can be found. Despite the level of investment in NSW’s infrastructure doubling over the past five years, Sydney is a capital locked down by peak-hour traffic. As with Melbourne, promises of train lines – such as the 23-kilometre north-west link first proposed in 1998 (to be completed in 2010) – are still in the planning stages. Yet residents move into newer suburbs with the promises tinkling in their minds. “Buy in” now – and once the train line has been established, the schools built, the leisure facilities created – land value will rise and investment potential increase. Promises made by successive governments should come with a small printed disclaimer stating *unless notified otherwise, this promise will expire within 24 hours. 
Rather than building ever more roof space in outer-suburban localities, we need a national plan for population growth and it should be firmly focused on increasing supply in already flourishing and established satellite cities along with a strong rural agenda. Geelong, Ballarat and Bendigo in Victoria, for example, all of which have infrastructure and existing train lines (which can be upgraded at a lower cost than building new stations) offer “affordable” options for first-home buyers and upgraders. Rural regions are crying out for growth – and agriculture is a growing industry. Yet we ignore it at our peril, with policies that favour “big farmers” over their smaller counterparts and an unforgiveable lack of funding for universities to encourage young Australians to involve themselves in the industry.
Fly in, fly out mining towns – why is this formula even allowed to be promoted by the mining companies? It may be a needed option for a proportion of the workforce, however policies should be placed to force large companies to train local residents. A targeted goal established, where the majority of employees are locals and the workers are “walk in, walk out” residents, should have started a generation ago. Instead, mining companies have systematically destroyed once flourishing rural neighborhoods – and they’ve been allowed to do so.
Like it or not there’s little we can do to stop population growth. As it stands, the real market has become a game of shuffling cards – as increasing numbers trade and compete over established dwellings, which arguably are the only feasible option for most of today’s property buyers. Planning ministers and state governments shoot themselves in the foot when they make vague promises with outcomes that never eventuate. Before new suburbs are built, the infrastructure should have already been planned, funded and projects started, with the final ingredient being community involvement. There’s none better to understand what a community needs to flourish and grow than the residents who’ve been living in the general locality. If any minister cares to understand why consumer confidence is at a GFC lows, despite Australia’s attractive prospectus – perhaps they should start listening.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on<a href="https://ten.com.au/the-circle.htm">The Circle</a> and a senior consultant for <a href="https://www.nationalpropertybuyers.com.au/">National Property Buyers</a> servicing the needs of property owners Australia wide.
</body></html>

catherinecashmore-6LXia3pPQj

Home buyers' necessary premium price to cut down on commuting time

<html><body>
If anyone wants evidence that politicians haven’t the first clue about real estate, here are three items that present an open-and-shut case. 
Exhibit A: The state governments of South Australia and New South Wales, in their budgets for next financial year, are offering stamp duty concessions to people who buy new product. 
Exhibit B: The state government in NSW has been offering $7,000 to anyone who will move to the country. 
Exhibit C: The governments of the Northern Territory and Queensland have extended their schemes that offer $10,000 grants to builders of new dwellings. 
The NSW incentive for people to relocate from a city to a country area has been running for some time and has gained little traction. Fewer than 700 households have applied for the grant in the past year, despite NSW Treasury forecasts of 10 times as many. 
In similar vein, a Queensland scheme to boost new home building with a $10,000 grant has been unsuccessful. And in equally similar vein, a Northern Territory scheme to induce people to buy/build new houses or apartments in Darwin (the $10,000 BuildBonus grant) has been conspicuous by its non-success. 
Both governments have responded to these failures by extending the schemes, presumably to give them longer to not work. 
Why haven’t these measures worked? Because the government inducements amount to only a fraction of cost of doing what the governments want buyers to do. 
For this reason, the new stamp duty concessions and/or grants in SA and NSW will miss the mark as well. 
The problem is that while more Australians are buying homes and investment properties this year, they’re buying established properties rather than new ones. Eight out of 10 first-home buyers buy an established dwelling. 
The building industry has convinced itself that it’s all the fault of politicians and for years has been harassing all levels of government to do something. 
The grants and stamp duty concessions are an attempt by politicians to shut them up. They’re trying to induce consumers to build new homes rather than buy existing ones. 
Here’s why it doesn’t work. Buying a new house costs, on average, $70,000 more than buying an equivalent second-hand one. In some locations, notably our larger cities, the cost difference is well over $100,000. One research exercise last year found the cost differential in the Brisbane City Council area was $120,000. 
The stamp duty savings on offer from state governments are petty cash compared with that cost discrepancy. Anyone who does her sums won’t be excited by the prospect of a $15,000 handout (the new NSW grant for first-timers who build a new dwelling) to cover a $100,000+ cost – unless she particularly wanted a shiny new home that no one else had lived in. 
It was reported this week that, much to everyone’s surprise, few people have taken up the NSW government’s offer of a $7,000 gift for anyone who relocates from a city to a regional area. 
Clearly, no one in the state government has sat down and worked out how much it costs to relocate, which means selling the existing home and buying a new one elsewhere. Nor has Federal Minister for Regional Australia Simon Crean, who says he’s surprised the scheme hasn’t excited greater interest. 
Selling costs include stamp duty, legal fees and agents’ commission. Buying costs include stamp duty, legal fees, building and pest inspections, valuations, bank fees and charges. And then there are the logistics and expense of packing up and moving. 
A family that sells up in Sydney and moves to the bush could easily be up for $50,000 – against which the government’s handout is a pittance. 
If they were still making episodes of Yes Minister I’d put this forward as a script idea. Sir Humphrey Appleby would love the concept of urging people to spend $50,000 to earn $7,000. 
If politicians seriously want to stimulate the building industry, there’s plenty they can do. But it’s not about handouts to consumers – it’s about reducing the costs of creating new homes, a huge proportion of which is the burden of taxes, fees and charges by all three levels of governments.
 Terry Ryder is the founder of <a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a> and can be <a href="https://www.twitter.com/hotspotting" target="_blank">followed on Twitter</a>.
</body></html>

terryryder-YECXbqmri2

Home buyer handouts prove politicians haven’t the first clue about real estate: Terry Ryder

<html><body>
Greeks escaping the European crisis are chasing low-cost rental properties in Australian Greek communities.
Agents in Greek communities in Sydney and Melbourne say while sales patterns have not changed much since the crisis, many more young, recently arrived Greeks are seeking affordable housing.
Agent Nes Loizides from Fox First Real Estate in Oakleigh says he’s had many more Greek applicants for his shared housing arrangements.
“I do a lot of shared accommodation. I have a lot of Greeks coming into shared accommodation houses. A lot that don’t have much money are going into shared accommodation.”
“With the shared houses it’s definitely increased in the last eight to 12 months. A lot more of them are coming now.”
He says a lot of the applicants are Australian-born Greeks who have returned home after stints in Greece.
“A lot of Greeks are coming back. They were born here, went to Greece lost all their money and came back. They’re coming back and I’m giving them a place to live.”
Agent Tony Ioakimidis from LJ Hooker Earlwood says the pattern is similar in Sydney.
“We’ve had a lot of young Greeks asking for rentals. That’s what I’ve noticed.”
“I’ve been involved with property management, and I’ve had a lot of Greeks come through asking for rentals.”
The turmoil in Greece has not led to any noticeable shift in sales, however.
“Greek buyers are always on the market. Greeks like me, they buy, they don’t sell. I don’t think it made a big difference. People are concerned over there, but I haven’t noticed any changes in sales,” Ioakimidis says.
The Herald Sun recently reported an expected 65% increase in Greek migrants this financial year as Greeks seek safer shores.
A Department of Immigration spokesperson says the department acknowledges an increase in Greek migrants but says the increase does not represent a dramatic increase in the scheme of things.
But what their numbers don’t include is the number of Australian citizens moving back to Australia.
President of the Greek Orthodox Community of Melbourne Bill Papastergiadis says the number of returning Australians is around 5,000 this year.
“The people who are coming are all former citizens. Greece has the highest population of expat Australians outside of the UK,” Papastergiadis says.
</body></html>

awalsh-7Ub9EypybQ

Many Greeks choosing low-cost Australian rental housing over Greek austerity measures

<html><body>
NSW Treasurer Mike Baird has defended the government’s timetable of changes to handouts available to first-home buyers, non-first-home buyers and investors announced in the state budget.
The changes initially grabbed favourable headlines due the size of first-home owner grants –up to $35,240 for those purchasing a new home – but the <a href="https://www.propertyobserver.com.au/residential/nsw-budgets-needlessly-complex-artificial-deadlines-have-short-term-and-long-term-consequences-for-residential-property/2012061455119" target="_blank">artificial deadlines</a> has since been heavily criticised for killing off the investor market and encouraging first-home buyers to wait until after October 1.
The program of changes, announced on June 12, gave investors (and non-first home buyers) just 18 days to complete off-the-plan purchases to take advantage of a a zero stamp duty option – and the potential saving of $22,490 through the NSW home builders' bonus, which ends on June 30.
For first-home buyers, the state government decided to scrap the $7,000 first-home owners’ grant entirely for established home purchases and replace it with a $15,000 grant for new homes – but only from October 1.
This means that many first-home buyers are likely to put off their new home purchases until after October 1, when there will be up to an additional $8,000 up for grabs.
The executive director of the Housing Industry Association, David Bare, expects the three-month lag would be felt in the construction market and could have a significant impact on the cash flow for builders.
Meriton boss Harry Triguboff says this three-month time frame will be “hopeless” for developers targeting the first home-buyers’ market.
But a spokesperson for NSW Treasurer Mike Baird told Property Observer the three-month notice period for first-home buyers “provides a reasonable timeframe for the market to adjust to the changes and is in line with the timeframe applied to stamp duty concession changes in last year’s budget”.
In the 2011-2012 NSW budget, delivered on September 6 last year, Baird gave first-home buyers just under four months’ notice that stamp duty concessions under the first home plus scheme would be limited to the purchase of newly constructed homes (including off-the-plan purchases) from January 1 this year under a new scheme, the first home – new home scheme.
The expired first home plus scheme meant borrowers did not have to pay any stamp duty for homes under $500,000 – a saving of up to $17,990.
The spokesperson for the Treasurer also said the home builders’ bonus had been due to expire on June 30.
“However from the July 1, the NSW government will introduce the new home grant of $5,000 which will go to all non-first-home buyers of new properties up to $600,000.”
</body></html>

NSW Treasurer Mike Baird defends timing of changes to home buyer handouts

<html><body>
Have you clicked and collected recently? Or shopped at a kiosk? Or popped into a pop-up shop?
If you have, you’ve experienced one of the new retail models which are changing the way consumers shop.
Innovative retailers are turning to these new models to fight back in the face of low consumer confidence and <a href="https://www.smartcompany.com.au/economy/049977-warning-that-retail-growth-outlook-could-stagnate-after-fall-in-monthly-retail-turnover">dismal growth forecasts in the retail sector</a>.
1. Click and Collect
“Click and collect” is the solution for all those consumers whose joy of online shopping is tempered by the sheer inconvenience of queuing up at a post office with a missed-delivery card, or <a href="https://www.smartcompany.com.au/retail/20120116-retailers-increasingly-embrace-lay-by-click-n-collect-to-snare-greater-share-of-consumer-wallet">waiting at home for hours for a delivery truck to arrive</a>.
Consumers purchase goods online by “clicking” and then “collect” the goods from a store or locker.
It’s a model that UK shirt retailer TM Lewin is planning to roll out in Australia, enabling consumers to order a shirt online and then pop into a store to pick it up.
Gerard Crawford, country manager for TM Lewin in Australia, toldSmartCompany click and collect has been gradually rolled out in TM Lewin’s UK stores over the last couple of years and has proved to be successful, particularly in the retailer’s London stores.
“It is just an added choice for the customer, with click and collect you have the convenience that saves you having to wait for something at home,” says Crawford.
“It is more prevalent now in the UK and we have developed it from testing and trialling and now have it in the majority of the stores and it does work.
“Some department stores have taken retail space in the UK purely to have the space as a click and collect depot.”
In the UK, catalogue chain Argos had led the way with click and collect stores that do not display any products and exist only for customers to collect orders.
It’s a strategy that has been a huge success for the catalogue chain, with half of its £4 billion sales now multi-channel.
Click and collect is not as widespread a retail model in Australia as it is in the UK, but that is set to change with TM Lewin’s move and retailers including JB Hi Fi, Australia Post and Coles adopting the concept.
Jim Cooper, spokesperson for Coles, says click and collect is popular with the supermarket’s online customers who do not want to lock in a time to be home for delivery.
“They like the fact that click and collect lets them shop online, but collect their order when it suits them. They also save money by not paying home delivery charges,” says Cooper.
“The click and collect option operates from 43 Coles stores around the country, and is already generating thousands of orders a week.”
Coles is also running a trial where click and collect customers can collect their orders from refrigerated lockers located at Coles Express fuel sites.
“The early results of the trial have been encouraging, but customers tell us it could be improved. For example, by using a pin pad door rather than a obtaining a key from the service assistant,” says Cooper.
Australia Post has started using click and collect parcel locker sites to store goods bought over the internet with those who subscribe to the service receiving a single use six-digit code via SMS and email each time one of their parcels is ready for collection.
“The 24/7 parcel lockers mean customers can pick up their parcels on the way to work, on the way home or even on the weekend,” says Mel Ward, media and communication manager at Australia Post.
“A small trial at a facility in St Kilda resulted in 1,500 customers signing up to use the parcel lockers.
“As a result, we are extending the trial to a further 10 locations in Melbourne, Sydney and Queensland, with plans for a national rollout to further expand this service.”
Brian Walker, retail expert at The Retail Doctor, says the click and collect model represents a move from web-only retailers to multi-channel sales that use “clicks and bricks” together.
“It is the merging of online and the physical store. So we know that research and buying online is increasing, but it is a way of providing a technical process and experience of an online order with an in-store example,” says Walker.
“I think we will see more and more of it in Australia, it will just become a standard play in its own right.
“Conceptually, it is not a lot different from days gone by, from having a telephone and getting a retailer to put something aside for you and then collecting it.”
Walker says click and collect is particularly attractive for commodities like basic apparel and groceries with time poor customers who want to control the point of pick up.
2. Kiosk retailing
Forget megastores and big box retailers; the new retail model is for smaller and smaller “kiosk” retail units.
Hairdressing franchise Just Cuts, founded by Denis McFadden, has unveiled a haircutting kiosk at a Westfield shopping centre in the Melbourne suburb of Doncaster, <a href="https://www.smartcompany.com.au/start-up/049760-just-cuts-kiosk-highlights-shrinking-franchise-operations">in a bid to attract time-poor consumers</a>.
Luke Manning, Just Cuts business development manager, says the franchise would love to establish more kiosks over the next year.
Manning says the outlay for a normal Just Cuts site – which is typically 30 to 40 square metres – is anywhere between $160,000 and $260,000.  But for a kiosk site a franchisee could be up and running for $100,000, so it could be an ideal option for new franchisees with less capital.
“The kiosk was created for a niche market where an existing owner might want a second salon or for smaller shopping centres,” he says.
“It has been well received and my hope is that we see a lot of them in the next 12 months. We have people on the run coming in and we have had people from every demographic using them.
“For franchisees, it is cheaper. Start-up costs are less than half the initial start up costs of a salon and a kiosk is relocatable, so if it’s not working we can move it to another site.”


<hr class="system-pagebreak">
<a target="_blank" href="https://www.propertyobserver.com.au/retail/hotdog-shop-dognation-almost-cuts-the-mustard-in-one-of-melbournes-smallest-retail-premises/2012061555135">Dognation, a newly opened hotdog shop in central Melbourne</a>, also operates a kiosk model with its three metre square shop.
Owner Seong-Lee Ang told SmartCompany he thinks Dognation is the smallest food shop in the city.
“Our leasing agents said they have never heard of anything as small as three square metres for a food shop,” says Ang.
Ang says the small format of Dognation creates interest from consumers with people walking past and taking photos of the store as it is “so unique”.
“The talking point of us being in such a tiny spot has been a really big thing, besides the product itself,” he says.
There are also practical advantages to Dognation’s small size, with Ang saving significant money on the lease.
“Per square metre the rent is not cheap, but obviously because we are only paying for three square metres as an overhead the rent is not that expensive,” says Ang.
“It is a big factor to us to say what is our productivity out of such a small space and there are definite advantages from a cost point of view.”
Ang says he is already in the planning process for more stores and will try to continue the kiosk model.
“I had a leasing guy call me today and he said we have another small kiosk space if you are interested. I think a lot of people are getting the idea that small spaces work well for certain types of businesses and ours is certainly one of them.”
David Gordon, partner in charge of the national retail advisory practice at WHK Group, says kiosks are attractive because they are cheaper.
“The cost of rental is less, the cost of fit-out is less, you need less staff because your security of product has a more physical framework,” says Gordon.
“There is a narrow range of stock sold in a kiosk. It is quite a category-based outlet, so you don’t need a vast range of stock and you don’t need to take the stock risk that a shop would take.
“Often you don’t need to take the long-term rentals that a shop has to take with landlords.”
However, Gordon warns kiosk retailing is not the panacea to all retail problems.
“It has its disadvantages and they are that your physical presence is not as enhanced as a shop would be. You don’t have the range so you essentially let customers down; the customer service isn’t as good.”
<h3>3. Pop-up shops</h3>
New products come and go, and now the stores that sell them do the same. Pop-up shops have taken off in the UK and USA and <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/innovation/three-reasons-behind-the-surging-popularity-of-pop-up-stores/201203145674" rel="nofollow">now in Australia as well</a>.
Amy Malin, co-owner of Danish furniture importer Modern Times, has built her business on “one-off concept stores that blur the line between retail store and exhibition” and Modern Times is now onto its third pop-up shop in the Melbourne suburb of Collingwood.
Malin says having a pop-up shop was the ideal way to start Modern Times as a business and was a great way to generate publicity.
“For us, it was a way to see if it was something we wanted to do, because it was a new business for us. It allowed us to test the market, and to create buzz.
“I have a background in events and we felt confident that we could run it like an event and market it like an event,” says Malin.
“There is that sense of urgency because it is temporary; people want to come and have a look straight away. For a regular shop, there is no urgency for consumers or for publicity.
“People like something a little underground and they expect it to be something interesting – and we didn’t disappoint people.”
Malin hasn’t decided whether Modern Times will run a fourth pop-up or look to set up shop permanently.
“Because we sell furniture, it is quite intense to pack up and move. That was confirmation for us that we should do a permanent shop,” says Malin.
“But we could also go and do a pop-up in Sydney or pop-up in New York, and it’s a great way to market our website as well.”
Walker says pop-up shops are perfect for event style retailing and allow retailers to surprise consumers.
“Pop-up shops give you instant accessibility, instant wow factor if done well, and put you in environments that you might not be otherwise,” he says.
“The challenge is that it is not a cheap solution and that is the first thing some retailers do. They put up a cheap fitting and it is uninspired.
“A pop-up shop is an extension of the brand and should be treated that way – so investment of capital is key.”
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
</body></html>

cwaters-YrtBR88nBe

Australian retailers devising new methods to entice customers offline

<html><body>
What “real” (i.e., after inflation) rate of return should you expect to earn on your savings over the long run? The governor of the Reserve Bank of Australia, Glenn Stevens, offered an unsolicited answer to this thorny question in not one, but two, speeches delivered during the past week.
Central bank governors don't typically wander out in public and proffer specific point estimates for expected through-the-cycle returns generated by diversified investment portfolios. So a related ponderable is why Stevens would engage in such an exercise.
One possible answer is that he was seeking to condition community beliefs. Now this is a valuable undertaking. The next step in Stevens’s argument, which he did not articulate, is that if investment returns in the future are much lower than they were in the past, households will need to do more saving in order to fund their retirements and adequately mitigate the rather perverse “longevity risk” that retirement brings.
In his optimistic “<a target="_blank" href="https://www.rba.gov.au/speeches/2012/sp-gov-080612">Glass Half Full</a>” speech last week, which came hot on the heels of Australia’s exceptionally healthy GDP and labour market data (to say nothing of three rate cuts in two months that have radically reduced the real returns earned by savers),  Stevens argued that household wealth “will surely resume an upward track, sooner or later”.
Now if you want to be negative, this contention is debatable, and the experience of Japanese savers is a sobering counterfactual. But let’s assume Stevens is on the right track and that there are credible differences – population growth chief among them – that argue against a convergence in Australia and Japan’s economic destinies.
Stevens’ key message was that the returns savers realise in the future will probably be less than half of what they have earned over the last 10 to 15 years. More exactly, he said, “When [wealth does start rising again] … it is unlikely to be at 6 or 7% per year in real, per capita terms. I would guess that over the long term, something more like 3% would be nearer the mark.”
In his second speech, the governor obliged with a more detailed exposition. In particular, he presented the chart enclosed below sketching the after-inflation change in real, per capita household asset values over time. The insight he wanted leave us with was that the 6.4% per annum growth rate earned over the 1995 to 2005 period was historically exceptional. In fact, over the three decades that preceded it the average rate of household asset price appreciation in real per capita terms was closer to 3% per annum.
<img src="/images/stories/2012/06/rbajune15.gif">
 If Stevens is right, savers should budget on total net nominal asset price growth of about 6% per annum – i.e., adding in expected future inflation of about 3% per annum – across a well-diversified portfolio comprising, as it historically has, exposures to cash, shares and property.
For the avoidance of any doubt, Stevens believes this is a big deal: “I think this is a profoundly important point and worth emphasising. The decade or more up to about 2007 was unusual. It would be quite surprising, really, if the same trends – persistent strong increases in asset values, very strong growth in per capita consumption, increasing leverage, little or no saving from current income – were to re-emerge any time soon.”
Another way to define asset price growth expectations is to look at sustainable, or “steady-state”, rates of economic growth. One school of thought says that no individual sector can outgrow the overall economy for any lengthy period of time, or it will eventually become bigger than the economy itself.
Since 1974, Australia’s real (after inflation) economic growth rate has been 3.1% per annum. But underlying this figure is quite a bit of population growth. As the population expands, we tend to produce more. If we, therefore, strip out population growth, we find that real per capita economic growth has only been about 1.7% per annum.
As I have shown before, Australia’s central bank has a strong statistical bias to overshooting, rather than undershooting, the mid-point of its “thick” 2-3% inflation target. Over the last decade, core inflation has averaged about 3% per annum. And there is mounting evidence that inflation targets are becoming less important to central banks, including Australia’s, as they wilt under community pressure to foster growth.
Let’s nevertheless assume that future inflation remains contained at about 3% per annum. Combining this with our real per capita economic growth estimate of 1.7% per annum gives us future nominal growth of about 4.7% per annum.
Observe that both these numbers are significantly lower than the figures offered by Stevens: he gave us a real asset price growth estimate of 3% per annum, which in my nominal terms would be closer to 6% per annum.
What might explain this disconnect? In all likelihood, the fact that the household sector is a major supplier of riskier “equity” capital for both listed companies (i.e., shares) and property. Who, then, provides the non-equity, or debt, capital? The banks and bond markets.
When thinking about investments, people forget that the share market is a leveraged play on the Australian economy. That is, most listed companies fund themselves with a combination of debt from the banks or bond markets, and equity capital from shareholders.
The same underappreciated insight applies to housing. Over the last 25 to 30 years, Australian residential real estate has generated a total net return (including both capital gains and rents after transaction costs but before taxes) of about 10% per annum.
Yet gearing across the entire housing market is about 30%, and for those property investors with some debt (as opposed to those that have paid it off), gearing rises to around 45%. Thus the actual returns to equity investors in housing would be significantly higher than the 10% figure I quoted above. This makes intuitive sense because, like equities, an individual property has very high return volatility of about 15% per annum.
So irrespective of whether you are an investor in shares of Australian listed companies, which in the non-bank sector have average gearing of about 25% (note the banks are leveraged about 20 times), or in residential real estate that offers even more attractive leverage of up to 90% at lower rates of interest and longer terms, your “equity” returns (and risks) are going to be greater than the blended equity plus debt returns reflected in my aggregated 4.7% per annum asset price growth estimate. This blended return is like averaging the returns that both the bank and you get.
And this analysis probably helps explain the difference between real per capita economic growth of 1.7% per annum and real household asset price appreciation (in per capita terms) of more than 3% per annum.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm" target="_blank">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.
</body></html>

Latest Investing Insights

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

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

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

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News