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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

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Retail centres should be changing their tenant mix to improve performance over the next 12 months, according to the latest report by Jones Lang LaSalle.
Jones Lang LaSalle's Retail Centre Managers’ Survey found the key factor expected to improve performance of individual retail centres over the next 12 months is a new tenant mix.
“Those retail centres that have deliberately changed their tenancy mix or attracted new tenants with strong customer appeal have reported solid growth during a challenging trading period,” says Richard Fennell of Jones Lang LaSalle.
“With clothing and footwear continuing to struggle, sub-regional shopping centres are re-focusing their tenancy mix to better reflect the needs of their catchment and growth sectors.  This includes specialty food, dine-in cafes/restaurants, and a range of services that bring repeat customers to the centre.”
He says the ability to improve tenancy mix is constrained by limited demand and the need for injection of capital before tenants commit and recommends alternative lease terms and tenant incentives.
“Alternative lease terms are being considered in order to accommodate new or struggling retailers.  This may include shorter lease terms and percentage rent deals. Centre managers have also reported some rent reversion at the end of the lease period in order to retain tenants,” he says.
“There is also a higher expectation on the part of tenants for incentives.  These include both rent-free periods and fit-out contributions, with tenants having limited capital to cover the cost of fit-outs.”
Vacancy rates increased slightly from 4.2% in December 2011 to 5.1% in March 2012 for neighbourhood centres and from 1.1% to 1.4% in March 2012 for sub-regional centres.
<img src="/images/stories/2012/06/jlljune14.gif">
Tenant enquiry improved slightly, but from a very low base. Enquiry remains weak, with food retailers and the discount variety sector (in sub-regional centres) showing the main interest.
The report found the average rental growth for neighbourhood centres was 2.8% for the year ending March 2012. Sub-regional centre growth has been weaker, averaging just 1.3% over the 12-month period.
Sentiment in retail centres across Australia had improved slightly following the Reserve Bank’s cash rate cut in May. The report was published before June’s further rate cut.
According to the report, 57% of centre managers expected some growth in sales over the next 12 months, up from 49% in February, though their sentiment is described as “caution optimism”. Those in the 57% primarily expect growth of less than 3%. Those expecting sales to decline fell from 31% to 21%.
Research director David Snoswell says the Reserve Bank’s 50-basis-point cut in the official cash rate in May is the main reason for improving sentiment among centre managers.
Despite the positivity of centre mangers consumers remain cautious, with <a href="https://www.propertyobserver.com.au/trends/time-to-buy-a-dwelling-sentiment-improves-but-unlikely-to-flow-through-to-purchases-westpacs-bill-evans/2012061355096" target="_blank">the Westpac-Melbourne Institute Index of Consumer Sentiment showing no recovery in May following the rate cut</a>.
“Cautious consumers are going to be wary of spending the savings from lower mortgage payments on retail goods, at least in the short term,” says Snoswell.
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awalsh-7Ub9EypybQ

Retail centres need to change tenant mix to improve performance: Jones Lang LaSalle

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Melbourne’s urban growth boundary will extend outwards over the next 20 years to incorporate six new fringe suburbs and provide new homes for up to 100,000 people.
The plans, unveiled by Victorian Planning Minister Matthew Guy, includes the development of six new metropolitan suburbs at Diggers Rest, Lockerbie, Lockerbie North, Manor Lakes, Merrifield West and Rockbank North and follow the completion of the Logical Inclusions Review of Melbourne’s Urban Growth Boundary (UGB).
The new suburbs will expand Melbourne’s urban boundary to the North (Mitchell and Whittlesea), to the West (Hume, Melton and Wyndham) and South East (Cardinia and Casey) by 6,000 hectares.
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The 6,000-hectare expansion is significantly less than the 43,000-hectare expansion planned under by the previous Victorian government.
Plans for the new suburbs include the building of new train station, town centres, open space and other key infrastructure
Over the next 20 years there will be
<ul>
<li>3,800 homes developed for 10,700 residents in Diggers Rest in Melton as well as local town centre located, the extension of Houdini Drive, a multi-purpose community centre and additional sportsgrounds.</li>
<li>10,500 new homes for 29,500 new residents in Lockerbie (incorporating parts of Hume, Mitchell and Whittlesea) as well as a new train station, a new north-south arterial road, three state primary schools and a secondary school, four new sports reserves and a new principal town centre next to the future train station.</li>
<li>4,600 new homes for 13,000 new residents in Lockerbie North (incorporating parts of Mitchell and Whittlesea)  along with a new train station, a new north-south arterial road, two state primary schools and a secondary school, two new sports reserves, a transit oriented town centre next to the future train station.</li>
<li>4,850 new homes for 13,500 new residents in Manor Lakes (in Wyndham) along with two state primary schools, two large new recreation reserves, a local town centre and an important new north-south arterial road.</li>
<li>7,000 new homes for 20,000 in Merrifield West (in Hume) along with the development of two state primary schools, football and soccer grounds, two local town centres and a number of local parks</li>
<li>6,650 new homes for 18,500 new resident in Rockbank (in Melton) over a longer 25 year time frame) along with the development of two state primary schools, a secondary school, three active recreation reserves, two local community facilities, higher order civic uses, passive recreation and linear trail network, a major and local town centre and an important east-west arterial road. </li>
</ul>
 
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Merrifield West residents travelling into the city will have to rely on the Donnybrook V/Line rail station or drive seven kilometres to the Craigieburn rail station, while Rockbank North and Lockerbie residents will need to use already busy V/Line rail stations until the new train station proposed for Beveridge is completed. 
There will be an expansion of the Diggers Rest V/Line rail station.
Guy says the urban expansion plan will provide opportunities for Melbourne’s economic and social future.
“Housing, employment, infrastructure and all the other elements that make up our community need to be planned and implemented carefully,” he says
“The completion of this review will lead to urban growth boundary modifications to ensure adequate long-term land supply and enable planning for population growth to be completed well ahead of time.”
Many of these new outer suburbs are already the focus of new housing developments, with the March quarter Oliver Hume residential communities report noting that 10 new communities comprising a total of 3,400 lots launched over the first three months of the year.
Four of the 10 projects were located in Wyndham, three in Melton, two in Whittlesea and one in Hume.
The report says it would take 6.8 months to sell the current level of supply represents 6.8, exceeding the industry benchmark of six months for the first time since the September quarter of 2006.
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All municipalities experienced a rise in supply with 20 months’ worth of supply in Mitchell (Wallan-Beveridge) and also double-digit level of supply in Melton. The City of Hume is now the tightest market, with only 4.2 months of supply. 
The report also notes declining land prices with average lot prices having fallen $16,000 to a median of $210,000 from their peak of $225,750 in the December quarter of 2010, a fall of 7.5% over the 15 months.
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Melbourne urban sprawl to extend into six new suburbs over next 20 years

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Sydney’s low rental vacancy rate continues to insulate the residential property market against wider economic forces, according to the latest CBRE review of the NSW residential market. 
The report quotes Residex figures showing that Sydney house prices are down 0.4% over the past 12 months to March to a median of $667,500 – a strong result relative to Melbourne (6.2% decline to March) and Brisbane (down 4.3%). 
It also notes RP Data-Rismark figures showing a 1.2% gain in Sydney house prices for the March quarter to a median of $572,000. 
CBRE assesses the Sydney’s housing market as being “reasonably positioned in relation to the remainder of the Australian market”. 
In line with a similar trend in Perth, the picture is brightest for affordable properties priced under $500,000, which continue to attract most demand, with prestige homes remaining under pressure. 
CBRE associate director of global research  consulting Sam Reilly says this stability is linked to low vacancy rates, “which continue to underpin the market”. 
“This [low vacancy rate] has somewhat insulated Sydney from the significant declines in capital values that have been witnessed recently in other states,” he says. 
Sydney’s vacancy rate remained unchanged at a very low 1.6% in March quarter figures released by the Real Estate Institute of Australia (REIA) – the lowest of all capital city market, with Brisbane at 1.7%, Perth at 1.9% and Melbourne and 2.3%.
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REIA says that a vacancy rates lower than 3% indicate strong demand for rental accommodation. 
House rents rose by 6.9% and unit rents by 8.9% over the year to March 2012 according to CBRE, with weekly rents for houses and units sitting at $545 and $490 respectively as at March this year. 
The CBRE report also notes that sales volumes for Sydney houses have shown signs of a recovery, with a moderate increase of 3.2% over the year to March 2012 to 42,118. 
There were 40,452 units sold during the same period, representing an increase of 6.2% on the previous year, meaning that annualised house sales surpassed more affordable unit sales for the first time since the end of 2009.
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This occurred at a time when the NSW government offered an additional $7,000 for first-home buyers as part of its first-home owner boost scheme, which ran from October 2008 to December 2009. 
CBRE senior director for NSW residential mortgage valuations Ted Hoskin says although the house and unit markets remain under pricing pressure, recent results pointed to a moderate recovery for the state. 
“With increased sales volumes for both property types, it appears that although not yet supporting a longer term recovery, the sustained down trend in market activity appears to have stopped and a greater degree of stability is now being recorded,” he says. 
Buy activity and demand differs from region to region: 
Eastern suburbs 
 
Though buyer activity has dropped since the end of the first-home owners’ stamp duty exemption, properties in the eastern suburbs priced around $500,000 continue to experience strong levels of demand. 
“For both houses and units between $500,000 and $1 million there has been a slight decrease in buyer demand, with agents reporting conditions have decreased from mid-2011,” he says. 
Sydney CBD 
The Sydney CBD market experienced solid demand for units priced below $500,000 although units up to $1 million faced weaker conditions. 
Sydney’s north-west and western suburbs 
Prices remain relatively stable across the quarter, with steady demand particularly evident in the lower to mid-market ($400,000 to $650,000). 
CBRE says property priced up to $1 million is experiencing consistent levels of buyer enquiry, which is a positive sign. 
The south-west market, including growth centres around the Macarthur area, has slowed for lower-priced properties ($280,000 to $400,000), with reduced buyer demand and contracting sales volumes. 
The south-west middle market between $400,000 and $500,000 has attracted steady levels of demand. 
South Sydney 
Prestige properties in Sydney’s south fared best in the quarter, with steady demand for well-presented properties in good positions between $1 million to $2 million. 
Wollongong and Illawarra 
Wollongong and Illawarra had the strongest $500,000 price bracket for all NSW dwellings in 2012 to date, while pressure was evident in the same bracket in Sydney’s southern suburbs, including the Sutherland shire, after strong growth at the end of 2011.
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Low rental vacancy rate ‘insulating’ Sydney residential property market against economic woes: CBRE

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Australian housing prices are unlikely to rise in winter despite an increase in buyer enquiries, says McGrath Estate Agents chief executive John McGrath, who is forecasting a “long and slowish recovery” over the next three to five years.
In his latest winter market review, McGrath, notes that in March, “the country’s largest mortgage broker, AFG, had its second biggest month ever in NSW since their index commenced in 2004 with $842 million in new lodgements”.
“While this clearly indicates more buyers are out there, they remain very price sensitive,” he writes.
“Reserve Bank interest rate cuts will no longer have the effect we’re used to given the banks’ reluctance to pass on the full amount. The official cash rate is now at its lowest since November 2009, when the economy was recovering from the initial impact of the GFC.
“While this might result in more sales activity in winter, it won’t push prices higher because buyers are still worried about Europe and are wary of protecting themselves financially as we enter a new era of aversion to debt,” he says.
Overall though, McGrath says Australia’s housing markets are not in a bad state, “but people continue to wait for positive signs”.
“This has been a protracted and agonising period of uncertainty. The constant flow of good and bad news both at home and overseas continues to undermine confidence.
“Once we see some positive and sustained economic change overseas, I believe our property market will begin a long and slowish recovery over a three to five year timeframe,” he says.
McGrath’s bearish outlook on prices is unchanged since December, when he noted a “marked improvement in buyer enthusiasm” but said that people were “looking for more good news to regain their confidence to buy and sell”.
Similarly in March, McGrath said there would be no significant price “increases until the Europe is resolved and we see further signs of recovery in the US”.
His observations echo those of <a href="https://www.propertyobserver.com.au/trends/time-to-buy-a-dwelling-sentiment-improves-but-unlikely-to-flow-through-to-purchases-westpacs-bill-evans/2012061355096" target="_blank">Westpac chief economist Bill Evans</a> following the 7.5% increase in the ‘time to buy a dwelling” Westpac-Melbourne Institute consumer sentiment sub-index.
Evans said “buyers will tend to be reluctant to follow through on purchases while there are concerns about the economic outlook and job security”.
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‘Long, slowish recovery’ on the cards Australian property market despite rise in buyer enquiries: John McGrath

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New residential apartments are currently selling better than detached houses, according to most estimates. However, other than for a few of the off-the-plan developments, data is not readily available, imposing a reliance on people in the field to ascertain the true performance of the market.
Nonetheless PRDnationwide continues to witness the shift in demand from detached houses to units.
New South Wales already has the largest number of strata-titled properties in the country, with approximately one quarter of Sydney’s population living in strata titled homes, according to the University of New South Wales.
The following trends contribute to the demand for units:
<ol>
<li>Gen Y’s preference for well-located property, close to amenities and if possible to city centres departs from their parents’ choice of detached homes in the suburbs.</li>
<li>Local and overseas investors are trying to predict the demand from Gen Ys and look for modern apartments with close proximity to entertainment precincts. They draw confidence from the strong increases in Sydney’s rents over the past 12 months and the advantages in not tying large amounts of capital until the development is complete.</li>
<li>Some owner-occupiers use the extended period until the settlement of their new apartments to prepare their current residence for sale, possibly receiving higher offers for their house or unit in a rising market over the next 12 to 24 months.</li>
<li>From an investment point of view units show higher liquidity, with lower time on the market and lower discounting than houses.</li>
</ol>
Over the past three years we have seen a fall in first-home buyer activity as government incentives decline. First-home buyers’ activity was likely to drop again when the stamp duty exemption for purchases of apartments below $600,000 was withdrawn at the end of June, however the exemptions will now continue.
At the same time second-home buyers or upgraders are active in the market, as well as downsizers. It is interesting to note that some downsizers who live in apartments in three-storey walk-up buildings and are nearing their 50s and 60s find modern building that include an elevator and easy access attractive as they start to plan their retirement.
Further, some areas such as south Sydney are experiencing strong sales activity due to changes in zoning, as suburbs such as Botany and Mascot turn from industrial to residential hubs. This leads to an increase in the values of existing houses and apartments, allowing their owners to borrow against the rising levels of equity to purchase new properties in the same area.
The sale of new residential apartments is Sydney is buoyed by an extensive buyer base and an increasingly attractive product. However, in order to ensure the performance of the dwelling, it is vital for investors and owner-occupiers to look for well-located properties that will appeal to a wide range of buyers.
Oded Reuveni Etzioni is a research analyst at <a target="_blank" href="https://www.prdnationwide.com.au/site/page.cfm">PRDnationwide</a>.
Photograph of scaffolding by Victoria Pickering, courtesy of <a href="https://www.flickr.com/" target="_blank">Flickr</a>.
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New apartment sales the shining beacon in Sydney's residential market: PRDnationwide's Oded Reuveni-Etzioni

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A new Monopoly board featuring Sydney landmarks and streets is to be launched in November.
The public is being encouraged to nominate the city's entries via Facebook.
<img src="/images/stories/2012/06/monopoly.jpg">
The first to “like” the Sydney Monopoly Facebook page was lord mayor Clover Moore, who nominated King Street, Newtown, Glebe Point Road and Oxford Street as her suggestions. The lord mayor said a global city like Sydney deserved to be immortalised in the world’s most famous game.
“I’d encourage everyone to have their say about which Sydney streets should replace those famous London names like Fleet Street and Pall Mall.”
Woollahra mayor Susan Wynne wants Queens Street, Woollahra.
“I love Monopoly, and I think it’s fantastic that it going to be updated with a local feel,” she told the Wentworth Courier.
“Wolseley Road Point Piper, without a doubt, has to take the position of Mayfair,” says James McCowan from Raine &amp; Horne Double Bay.
Even the Swans AFL could get a guernsey on the board.
The naming continues until Sunday, June 24, to nominate a location via the <a href="https://www.facebook.com/sydneymonopoly" target="_blank">Sydney Monopoly Facebook page</a> or <a href="mailto:info@winningmoves.com.au">email Winning Moves, </a> which is the manufacturers of the official Monopoly Sydney version, under licence from Hasbro.
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jchancellor-FAypfDUnLy

Soon you can buy the Harbour Bridge, as Sydney Monopoly board game to launch in November

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Novotel Melbourne St Kilda – Melbourne’s premier beachside hotel – has been listed for sale by Tourism Asset Holdings Limited (TAHL) with market observers expecting a price between $55 million and $60 million.
It last sold in 2008 and before that changed hands for $21 million in 1992 in the aftermath of the early 1990s recession.
An international marketing campaign will kick off next week led by Wayne Bunz and Mark Wizel of CBRE Hotels, with expressions of interest closing on July 26 – unless sold prior. 
The recently refurbished hotel includes 211 rooms over six levels on a 5,791-square-metre site boasting 270-degree views of Port Phillip Bay. 
The Novotel Melbourne St Kilda is operated by Accor, the world’s biggest hotel and tourism group. 
The management agreement with Accor has a further nine years to run, when vacant possession of the hotel will be available, “offering a myriad of future redevelopment options,” according to CBRE. 
The hotel is zoned residential 1 under the City of Port Phillip. 
The hotel originally opened in 1991 as the St Moritz hotel, which became the Novotel Bayside in 1993 when Accor acquired the management rights and then Novotel St Kilda in 1999.
It was originally developed by Michael Lasky and Izzy Hertzog. 
Lasky founded property development group Lascorp, focused on retail developments. 
Izzy Hertzog, a Holocaust survivor who came to Australia in 1949, made his fortune in wholesale car sales before moving into property development. He died in 2010.
The hotel was acquired by C. K. Fu's Hong Kong-based manufacturing company in 1992 for $21 million after being placed in receivership in 1991. The hotel was sold by the State Bank of South Australia as mortgagee.
The hotel stands on the site of the St Moritz ice rink, which operated from 1939 to 1981, attracting more than 2000 people to its 1,850 square metres of ice. 
The ice rink was destroyed by a fire in 1984. 
The first building on the site was the Wattle Path Dance Saloon and Café, which opened in 1923. 
In 1933 the property was acquired by theatrical entrepreneur F.W. Thring, who transformed the building into one of the largest film studios in Australia under the name Efftee Productions. 
The studio only lasted a couple of years, closing in the late 1930s. 
Bunz tells Property Observer the hotel will be marketed to the majority of the Asian market, with strong interest expected from this market. 
He says it will be “keenly sought after by traditional and non-traditional, national and international investors”.
“In the current market, buyers are looking for unique assets that will allow value-add opportunities.  The Novotel St Kilda presents just such an opportunity by combining a strong income-producing hotel that will generate a healthy return on equity, with significant vacant possession opportunities including the potential to redevelop the site in the future.
“In the past 18 months there have been a number of significant hotel asset transactions, with a strong surge in the appetite of private and offshore investors, particularly Asian-based groups,” Bunz says.
“It stands on a substantial land holding in St Kilda,” Bunz tells Property Observer. 
Prior to the formal sales listing, TAHL chief executive Matthew Eady said there had been “significant unsolicited interest in the property, given its premier location, strong ongoing cashflow and attractive alternate use as a residential development”. 
“Given the strength of investor and developer interest, we have decided to consolidate that into a formal sales campaign,” he says.
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Asian buyer interest expected for Novotel St Kilda, with price expectations around $55 million

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Despite the NSW government’s best intentions, sales of new houses and apartments to first time buyers might actually ease off until October 1.
Savvy first-home buyers might delay their new home acquisitions to secure an $8,000 bonus based on a $550,000 new dwelling.
The entitlement of first-home buyers who sign a purchase contract for a new home between yesterday's state budget and September 30 is $20,240 + $7,000 totalling $27,240.
But wait until October 1 and it’s $20,240 + $15,000, or a maximum total of $35,240.
The off-the-plan sales industry has been enjoying a sales fillip – compared with the rest of the Sydney market – in the lead-up to the initial June 30 deadline, which has now been rolled over until September 30.
They might just get an unexpected pause.
No doubt some buyers will seek to negotiate their way around the situation by seeking to put a red dot sticker on their desired abode and hope it doesn't get sold in the meantime. Getting an option to purchase is entering a legal minefield.
An eligible transaction is: (a) a contract made on or after October 1, 2012 for the purchase of a new home in New South Wales, or (b) a comprehensive home building contract made on or after October 1, 2012.
A contract for the sale or transfer is not eligible if it replaces an agreement made before October 1, 2012.
There are <a target="_blank" href="https://www.propertyobserver.com.au/residential/the-11-things-you-need-to-secure-the-%2435240-saving-under-the-nsw-first-home-owners-grant-scheme/2012061255076">11 important rules relating to eligibility</a>.
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Budget's first-home buyer $8,000 bonus might actually pause NSW new home purchasing until October

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There was a 13% increase in the volume of Perth residential sales in the March quarter, with first-home buyers and investors returning to the market, according to CBRE’s first-quarter WA market view report. The firm says a recovery could be under way. 
CBRE recorded 5,663 sales in the Perth metropolitan area over the first three months of the year, compared with the 5,268 in the previous quarter and a “noticeable contrast to conditions in the prior 12 to18 months, when sentiment was low”, according the firm’s associate director of global research and consulting Sam Reilly. 
Total house sales over the 12 months to March reached 22,676, a slight decline from the 23,032 over the previous 12 months. 
Perth house sales peaked in early 2004, with just over 40,000 sales recorded. The market reached just under that peak in March 2006 and traded strongly until early 2007, when the ill winds from the GFC first began to be felt. 
Perth’s inner-city apartment market has been particularly strong, buoyed by the resources sector through the second quarter, with both owner-occupier and investor demand on the rise. 
Unit sales rose from 1,191 in the December quarter to 1,852 in the March quarter, with CBRE recording 6,654 unit sales over the year to March. The unit market last peaked around March 2006 with just under 10,000 annual sales. 
“Perth’s inner-city unit market has experienced notable change recently, with oversupply now correcting as take up is being driven by the resource sectors, a trend that clearly highlights the tangible impact resource growth is having on Perth at present,“ says CBRE director of valuation and advisory services Michael Veletta.
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Perth house prices increased by 3.9% over the quarter to a median of $487,500, though they are up only 0.5% over the past 12 months, according to Residex data.
The RP Data-Rismark Daily index has Perth home values up 0.76% for quarterly growth to June but still down 1.78% year-on-year. 
Reilly says it is too early to point to a full market recovery, but the increases in sales volumes suggested renewed interest from buyers following the price corrections that had substantially reduced capital values across all sectors of the market. 
The increase in activity has been attributed to the flow-on effect from oil, gas and iron ore industries in the state, which CBRE says “continues to underpin the market due to high infrastructure spending and increased employment opportunities”.
Deloitte Access Economics is forecasting the WA economy to grow by 4.2% annually between 2012 and 2017. 
However, Reilly warns that while the resources boom provides Western Australia with a strong advantage in terms of economic growth, the risk of a slowdown to commodities markets remained. 
“If that were to occur in a substantial manner, the residential market would immediately come under pressure,” he says. 
The report notes recent REIA data showing Perth vacancies trending down in the December quarter to 2.3%, compared with 2.8% in the September quarter, with population growth creating increasing demand for rental accommodation.
 
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Looking ahead towards the second quarter, CBRE notes that the more affordable sub-$500,000 house market in Perth has fared the best as first-home buyers targeted affordable housing stock following some easing in interest rates. 
First-home buyers have faced competition in this price bracket from investors. 
Veletta says investors are focused on the fact that rentals are beginning to reach parity with debt servicing levels. 
“Price declines have obviously assisted to increase demand levels, but the high levels of rental growth have been equally important to stimulate this area of the market,” he says. 
The latest REIA/Deposit Power report records a 4.1% increase in the number of loans to first-home buyers from 3,757 in the December quarter to 3,910 in the March quarter. 
First-home buyers were attracted back to the market despite housing affordability worsening in the state of the March quarter, with the proportion of family income needed to make mortgage repayments increasing by 22.9% to 24.1% over this period. 
Rent payments as a proportion of family income increased by 0.7% to 20.8% of family income. 
Further up the price spectrum, the $500,000 to $1 million bracket remained soft and is expected to stay relatively subdued until improved levels of buyer interest in the first-home buyer market begin to flow on. 
“As owner-occupiers that currently own houses in the sub-$500,000 bracket begin to trade up, the middle range markets should see demand levels improve. This is a gradual process, however, and impacts on capital growth will take some time,” says Veletta. 
Outside of Perth, a recovery appears unlikely, with regional areas such as the Peel region continue to experience oversupply. 
“Mandurah continues to chug along with no great signs of recovery, limited demand, small buyer pool and growth in employment concerns,” Veletta says. 
Activity levels also remain low in WA’s land sales market, with developers offering a range of incentives to boost demand levels. Established stock is slowly being taken up, with slight increases in building approvals recorded.
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Perth residential market poised for recovery, buoyed by mining boom: CBRE

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The Reserve Bank of Australia governor Glenn Stevens says the mining boom is not to blame for Australia's multi-speed economy.
Stevens suggested the economy was always a patchwork, "never a seamlessly woven garment."
"It's very rare that all sectors and all regions go at the same speed at the same time.
"Usually, if that's happening it's a recession or an unsustainable boom."
The major shift in household spending combined with saving patterns was now the overriding influence on the Australian economy, he told the federal government's economic forum in Brisbane.
"I actually think that a lot of the disquiet and dissatisfaction that we see isn't really related to the mining boom at all," Stevens said.
"I think it's got a lot to do with changes of household behaviour, which come after a very unusual period of strong spending, leveraging up and saving nothing out of current income.
"And that was bound to end sooner or later, and it has. In fact, it ended about five years ago," he said.
"And we are still, I think, coming to grips with the importance of that now, and I think it's a significant factor that is behind some of the disquiet we see."
Stevens noted productivity growth had fallen in the past six to eight years, and would take "unpopular decisions to turn it around," the ABC reported.
He was urging the Government to carry out the Productivity Commission's "long list" of reform ideas, although he warns that some of the changes will be very difficult to implement, and "politically hard" for governments to achieve.
There were 14 charts within Stevens's speech.
Property Observer publishes five of them that give an insight into the state of the economy for prospective property investors.
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