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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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APM's <a target="_blank" href="https://twitter.com/#!/DocAndrewWilson">Andrew Wilson</a> has a go at those who talked down the Australian economy (June 7, 2012).
<img src="/images/stories/2012/06/wilsontweet.jpg">
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jchancellor-FAypfDUnLy

Tweet of the week

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The Commonwealth Bank has announced it will reduce interest rates on its range of variable home loan accounts by 0.21 percentage points per annum with effect from Monday 18 June 2012.
The new Standard Variable Rate is 6.80 per cent per annum.
This ensures NAB will have to reduce its standard variable rate by 20 basis points to keep its promise of offering the lowest standard variable rate of the Big Four banks.
NAB is the last of the major banks to make its interest rate announcement and currently has a standard variable rate of 6.99%
"In making this decision, the Group has continued to balance the interests of its 1.8 million home loan borrowers with those of its 11 million depositors, and those of its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through pension funds," the bank said in a statement.
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lschlesinger-FZcF9M3vE6

CommBank passes on 21 bps rate cut to borrowers

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A group of restaurants run by one of Australia's most highly regarded chefs, Justin North, has fallen victim to rapid expansion and has gone into administration.
North and his wife, Georgia, were well known for the award-winning Becasse restaurant, which first opened in 2001. The restaurant is housed in a 19th century sandstone building that was formerly a bank and is decorated with velvet, leather and crystal chandeliers.
Becasse was the big signing for the $840 million Westfield refurbishment and relaunch in October, 2010.
Since opening Becasse, the Norths have expanded their business to include casual restaurants Quarter Twenty One and Etch, takeaway food outlets Becasse Bakery and Charlie &amp; Co burgers, as well as Quarter Twenty One Providore, The Cookery School and Le Grand Cafe at Alliance Francaise.
The group now employs 150 staff. However, its growth has come at a price and Ferrier Hodgson partners Jim Sarantinos and John Melluish were appointed as administrators to the North Group yesterday.
Sarantinos said in a statement released yesterday that the North Group's "rapid growth" led to a "number of underlying business issues" which must be addressed to assure the long-term viability of the North Group.
He said the businesses will trade as usual while an urgent assessment of the North Group's financial position is undertaken.
Sarantinos said his first step will be to liaise with key stakeholders, including employees, landlords and suppliers, to provide them with information about the future of the business.
"I will be looking at restructure options, including the potential for the introduction of new investment," Sarantinos said.
"This is a well-known and well-regarded business that could flourish if appropriately restructured."
North was born in New Zealand and trained in New Zealand, Australia, France and the UK before returning to Australia in 1999.
He worked under chef Liam Tomlin at Sydney's Banc Restaurant and moved through the ranks of the kitchen to the role of head chef before venturing out with his wife, who was the sommelier at Banc, to open Becasse.
North has also released two cookbooks and is well known from his appearances on MasterChef.
North posted yesterday on Twitter from his account @JustinBecasse: "Thank you everyone for your support, to confirm Georgia &amp; I have put Becasse Group into voluntary administration with a view to restructure.
"In the meantime it is business as usual. We will post more updates soon.
"The support and messages have been overwhelming, sorry we haven't been able to respond to all, come by and eat with us soon."
The collapse of Becasse is the latest in a string of high-profile restaurant administrations. High-end restaurant Manly Pavilion closed recently with debts of $590,000, while, last year, creditors voted to liquidate Sydney's three hat Bilson's Restaurant, which had <a href="https://www.smartcompany.com.au/food-and-beverages/20111017-creditors-vote-to-liquidate-sydney-s-bilson-s-restaurant-as-debts-top-1-million" target="_blank">debts of $1 million</a>.
Even <a href="https://www.smartcompany.com.au/economy/20110829-gordon-ramsey-s-melbourne-restaurant-to-trade-on-despite-liquidation" target="_blank">Gordon Ramsay</a> found the Australian restaurant market tough, with his Melbourne restaurant Maze entering liquidation last year owing $4.6 million to local suppliers.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Justin North's restaurant group collapses

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Westpac will reduce interest rates on its standard variable mortgage by 20 basis points to 6.89% from 18 June 2012.
This follows <a href="https://www.propertyobserver.com.au/residential/anz-passes-on-full-rate-cut-to-borrowers/2012060855042" target="_blank">big four rival ANZ passing on all 25 basis points earlier today</a> with its standard variable rate falling to 6.8% from June 15.
Customers on Westpac’s Premier Advantage Package who receive a minimum 0.7 percentage point discount on the headline standard variable mortgage will see their new effective rate fall to 6.19%.
The reduction in home loan rates will save home owners $41 a month or $492 a year in total monthly repayments on an average mortgage of $300,000.
Since October 2011, Westpac has cut its variable mortgage rates by 97 basis points out of the 125-basis-point reduction in the cash rate since November last year.
“This has been a difficult decision as we have sought to balance the needs of our mortgage customers with those of our millions of savers, particularly retirees who depend on the income from their deposit accounts,” says Westpac Group executive retail and business banking Jason Yetton.
“We also fully appreciate the financial pressures that many households are currently facing even though the economy as a whole is doing well as the latest GDP and job figures released this week showed. That is why we continue to offer discounts on our headline mortgage rate which will see nearly 90% of our home loan customers pay no more than 6.19%.
“And for those borrowers who are looking for security and peace of mind over a longer period given the current financial uncertainty we have also been able today to reduce the rate on our most popular fixed home loan rate, the three year term, to 5.89% once the discount that we offer is taken into account. This new rate will be effective next week.”
“Small businesses will also benefit from the interest rate cuts with cuts in certain headline variable loans of 25 bps. “This is the second time in consecutive months that we have reduced the interest rate on certain variable business loans,” he said.
“Despite increased funding costs, we recognise that it is particularly important at this time to help small business in this way given the critical part this sector plays in supporting the economy and maintaining employment as a whole.”
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Westpac passes on 20 bps rate cut to borrowers

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The current interest rate cutting cycle, which began in November, is not aimed at boosting house prices or “re-igniting a boom in borrowing,” says RBA governor Glenn Stevens. 
Delivering a speech in Adelaide today called “The Glass Half Full”, Stevens said one thing Australia should not do is “try to engineer a return to the boom”. 
Stevens said he agreed that there was a need for more confidence in the economy among households and businesses, but said it had to be “the right sort of confidence”. 
“The kind of confidence based on nothing more than expectations of ever-increasing housing prices, with the associated willingness to continue increasing leverage, on the assumption that this is a sure way to wealth, would not be the right kind. 
“Unfortunately, we have been rather too prone to that misplaced optimism on occasion. 
“You don’t have to be a believer in bubbles to think that a return to sizeable price increases and higher household gearing from still reasonably high current levels would be a risky approach. 
“It would surely be a false basis for confidence. The intended effect of recent policy actions is certainly not to pump up speculative demand for assets. As it happens, our judgement is that the risk of re-igniting a boom in borrowing and prices is not very high, and this was a key consideration in decisions to lower interest rates over the past eight months,” he said.
In his address to the American Chamber of Commerce, Stevens also tackled the nature of the current two-speed economy, blaming it in part on spending habits before the GFC, when property prices were rising by 6% per year. 
He said the dissatisfaction felt in certain sectors of the economy reliant on household spending was not the result of the mining boom not spilling over into these sectors “but a lot to do with events that occurred largely before the mining boom really began”. 
These events, he said, were that “household spending grew faster than income for a lengthy period up to about 2005” and gross debt rising from 70% in 1995 to about 150% in 2007 principally as a result of people investing in housing. 
“Correspondingly, by 2007 the share of current income devoted to servicing that debt had risen from 7% to 12%, despite interest rates in 2007 being below those in 1995,” said Stevens. 
“It is still not generally appreciated how striking these trends were. I cannot say that it is unprecedented for spending to grow consistently faster than income, because it had already been doing that for the 20 years prior to 1995. 
“That is, the saving rate had been on a long-term downward trend since the mid- 1970s. But it is very unusual in history for people to save as little from current income as they were doing by the mid-2000s,” Stevens said. 
“And it is very unusual, historically, for real assets per person to rise at 6 per cent or more per annum. It is also very unusual for households actually to withdraw equity from their houses, to use for other purposes, but for a few years in the mid 2000s that seemed to have been occurring,” he said. 
Overall, he said the Australian financial system is sound and the country well placed.
“Our government is one among only a small number rated AAA, with manageable debt. We have received a truly enormous boost in national income courtesy of the high terms of trade.
“This, in turn, has engendered one of the biggest resource investment upswings in our history, which will see business capital spending rise by another 2 percentage points of GDP over 2012-13, to reach a 50-year high,” he said.
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Current rate cut cycle not aimed at creating ‘risky’ new housing boom: Glenn Stevens

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ANZ will pass on the full RBA cash rate cut to borrowers, the bank has announced as part of its monthly interest rate review.
The bank will lower interest rates for variable rate mortgages and small business lending by 0.25 percentage points per annum effective June 12, 2012.
ANZ’s new standard variable mortgage rate will be 6.80% pa. New small business rates are also effective from June 15.
The 25-basis-point decrease will save customers about $13.50 per week for the average home loan of $280,000, while small businesses will save $6.25 per week for the average business loan of $130,000.
ANZ chief executive Australia Philip Chronican says: "Funding costs remain elevated as a result ofthe deteriorating economic situation in Europe and strong competition for deposits.
“We are, however, pleased to be in a position to reduce rates by 0.25% this month.
“Although there was strong economic growth data this week, we know that several major states and many of our customers are not directly benefiting from the strength of theresources sector.
“The bottom line is that while deposit customers are receiving very competitive depositrates, many of our borrowing customers are under pressure from a range of other costs.We felt that reducing interest rates by 0.25%pa for home borrowers and for smallbusiness was the right decision in these circumstances,' Chronican says.
“This decision recognises that, although we need to be realistic about funding costs and the challenges the global economic situation is presenting, ANZ also needs to absorb itsshare of the burden. Hopefully this decision will help relieve some of the pressures thatwe know home owners and small businesses are facing at present."
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ANZ passes on full 25 bps rate cut to borrowers

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The ski season is nearly upon us with the Queen’s birthday long weekend. As thrill-seekers flock to ski resorts in Victoria and NSW, many may be thinking of buying investment property on the slopes.
Property Observer has cleared the frost and found the cheapest properties available right in the ski fields.
And we’ve found Victoria’s Falls Creek and Mount Hotham are the place to look for cheap properties in the ski fields.
A recent REIV report found property prices in the Alpine region had dropped 22.8% in the year to March 2012. This is confirmed by local agent Paul Englisch from Alpine Property Dinner Plain.
“I would suggest it’s more than 22% with the recent sales we’ve had,” says Englisch.
“There’s more currently for sale that there has been in the last 10 years at any one time. And the prices have all gone down.
“It’s impossible it will last though. In Dinner Plain, just down the road, we’ve started selling more than we’re listing. The total number of properties for sale has being reduced by half there.”
Other agents echo this sentiment, with one suggesting prices have dropped by more than 30% over the year.
$44,500
<img src="/images/stories/2012/06/fallsunit.jpg">
A <a href="https://www.realestate.com.au/property-apartment-vic-falls+creek-108022321" target="_blank">twin suite in Falls Creek </a>will set you back just $44,500. Rooms 208 and 209 in Silverski Lodge are being sold by RT Edgar Alpine. They each have one bathroom, sleep two people in a bunk bed and share a generous balcony. Agent Christa Zirknitzer says annual outgoings for the property are $3,400. An exact figure for income for the property was unavailable, but Zirknitzer says average income is 2% to 3%. The asking figure is what the vendor paid last year in Morry Schwartz’s mass sell-off.
$79,000
<img src="/images/stories/2012/06/fountains.jpg">
In Mount Hotham, unit 2A in Fountains Apartments is available for $79,000 through PRDnationwide. It comes with a small kitchenette, ensuite and a bunk bed, but there is no gas attached to the apartment. The unit is usually leased as staff accommodation and earns $6000 + GST per season. The unit costs $2,171 in outgoings.
 
<hr>
 
$79,000
<img src="/images/stories/2012/06/jackfrost.jpg">
For the same price in you can buy apartment five in Mount Hotham’s Jack Frost through RT Edgar. The unit sleeps three people in a three-part bunk bed and includes a decent-sized kitchen, a small entertaining area and a renovated bathroom. The apartment is expected to earn $7,000-$8,000 a year with annual outgoings of $3,200. The similar but renovated neighbouring apartment number four is selling for $105,000, with the same rent and outgoings.
<hr>
 
$92,500
<img src="/images/stories/2012/06/falls3.jpg">
In the same lodge, <a href="https://www.realestate.com.au/property-alpine-vic-falls+creek-105702103" target="_blank">room 207 is up for grabs through the same agent</a>. At $92,500 the room is somewhat bigger and more comfortable but still only sleeps two people in a bunk bed. Again, outgoings are $3,400, and it’s expected to earn a similar income.
 
<hr>
 
$105,000
<img src="/images/stories/2012/06/falls2.jpg">
And for $105,000, <a href="https://www.realestate.com.au/property-studio-vic-mount+hotham-107580512" target="_blank">apartment 520 in The Arlberg </a>is up for sale through Alpine Property. It sleeps five people, comes with a new bathroom, a sizeable kitchen and ski storage. The property was renovated two years ago at a cost of $20,000 and has not been leased since then. A similar, but unrenovated, apartment in the same building earns $17,000 a year. However the apartment is expected to cost $5,000 a year in head lease charges and another $5,000 on commission, utilities, cleaning and other fees.
RT Edgar Agent Rob Ford recently sold apartment 519 at The Alberg for $95,000. He says the apartment will earn $15,000 a year with outgoings of $6,000.
Ford says The Alberg generates the best returns in Hotham.
“It’s got a very established in-house management company, there’s a lot of return guests. The outgoings generally are very low, and the occupancy levels are very high.”
One thing was clear from speaking to agents in the area. It all depends on the snow.
“Snow equals money. If we have a good season then everyone is happy,” says Paul Englisch.
And given recent snowfalls, this could be a good one.
Photograph of Mount Hotham courtesy of Tourism Victoria.
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Falls Creek and Mount Hotham best for inexpensive ski properties, with prices cooling 

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Local property syndicates are pooling their cash to compete with overseas buyers for select income-producing commercial properties offering annual returns of up to 12%, according to Scott Keck, executive chairman of property consultants Charter Keck Cramer (CKC).
In his latest market commentary, Keck says the firm has noted, among the shifting market dynamics, increasing activity by private investment syndicates. 
“A number of parties are pooling an equity fund of up to $30 million to allow leveraged investments of up to $70 million.
“With a strategy for near neutral gearing, syndicates have targeted fundamentally good-quality assets in good locations that are currently underperforming due to a lack of reinvestment in the GFC-affected era,” he says.
“This activity is a reflection of the changing nature of investment by an ageing demographic, seeking safer superannuation investments.
“This internally generated demand for property assets is now competing with strong investment from overseas. Investors from many of Australia’s near Asian neighbours recognise the high returns and low risk with Australian property and seek to engage with our local market,” he says. 
According to Keck, “carefully selected” income-producing retail, office and industrial properties can provide “regular compounding rental growth and capital return to the combined effect of internal rates of return within the range of 8% to 12% per annum”. 
Keck says Australian commercial property is underpinned by the strength of the country’s economic fundamentals - low inflation, declining interest rates, robust population growth and modest unemployment.
And while these domestic factors have been undermined by the current global turmoil, they remain “more favourable than in almost all other developed countries”.
“Most importantly to property markets, commercial accommodation is in shortage given the limited new supply that has been delivered since the late 2000s due to the initial round of impacts following the 2008 GFC,” he says.
These strong fundamentals and the relative unattractiveness of markets like the US and Europe are already attracting foreign institutional investor capital into Australia, he says.
Keck says it’s “no surprise that international investment is now increasingly targeting Australian property given its longer-term investment timeframe and stability”.
“The settling down of the Australian dollar returns a competitive opportunity back to foreign investors and the attractive total returns flowing from quality Australian commercial property offer a very substantial margin above increasingly lower returns elsewhere,” he says.
He points to a recent Dun &amp; Bradstreet analysis of the world’s safest trade and foreign investment destinations listed Australia equal with Canada, Germany, Norway, Sweden and Switzerland as the safest, with Australia occupying the top spot for investment in the Asia-Pacific region, beating Hong Kong, Singapore and New Zealand.
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Local syndicates competing with overseas buyers for high-yielding commercial property: Scott Keck

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The RBA cut rates by a further, 25 basis points on Tuesday, June 5.
This should not have been a surprise especially when one considers what is happening in Europe and the US and our own retail sectors, it would have to take a toll on public confidence.
I would say it’s all about the rest of the world and we needed a buffer to help us through the next few years of turmoil.
The US jobs came in worse than expected, and there is no short-term solution in sight for Europe, and its long-term outlook is bleak. I would anticipate 10 years of no growth in Europe.
The US will enter a long period of small to moderate growth as it attempts to pay down their debt.
Fundamental to both is that they have an ageing population and similar to Japan, which has had no growth for about 21 years, both Europe and to a lesser extent the US have record levels of debt. An ageing population means spending decreases, and when spending slows economic activity slows, which means higher unemployment and lower tax revenue. Japan had an extremely tight immigration policy, which means very few immigrants were allowed into the country.
Natural births to replace an aging population have two disadvantages.
It generally takes 21 years of investing into a newborn before he or she is old enough to work, plus a further two years training on-the-job to attain a skill before he or she can start contributing.
This is slow and a highly costly process. Also, the number of children per household has dropped over the years. There is also no guarantee that job sectors that have skill shortages can be filled, because there is no guarantee that Australians will go into those areas even after they have attained the necessary skills, qualifications and experience.
Immigration, on the other hand, has many advantages for a young country such as ours.
It means one can select the skilled people required and only allow those who have those skills into the country in areas where we are experiencing a shortage in, or restrict their entry conditions to areas that have a skill shortage. They are already trained and the training paid for by another country; they are immediately productive and can pay taxes; they also create an immediate demand for services such as homes, cars, schools, food and other services creating economic growth and prosperity where as an ageing population reduces their spending as they have less need for things such as larger homes and cars and school fees for education, etc.
In Australia unlike Europe, Japan and even the US we have a robust and healthy immigration policy allowing in around 250,000 to 350,000 people annually. Our unemployment rate is 4.8%, and this is considered full employment. Much of this can be attributed to Australians not being prepared to travel to take up jobs in mining towns and other areas that are perhaps hard to get to or other occupations that perhaps Australians are not prepared to accept. One will never achieve 0% unemployment.
 
<hr class="system-pagebreak">
 
Despite fears that immigrants will take Australian jobs and I have heard this statement for over 40 years, the fact is that our long-term average unemployment rates have always sat at around 5.5%. This is considered full employment. Naturally there are times when it has hit around 10% but it generally does not stay at that rate for very long as long as there is economic growth.
However one must be careful and selective about immigration because it can change the nature and landscape of the country. Allowing people into a country with different values and beliefs can cause social unrest. One must balance economic wellbeing with the type of social fabric we want the country to become. However that simply comes down to tighter government policies about the type and quality of people that are permitted to come into this country.
Economically there are very sound reasons for a healthy immigration policy balanced with a socially responsible selection process should provide the best outcome.
While Australia does have a two-speed economy, certain industries such as mining are doing extremely well where other industries such as retail are not doing so well. With what is happening in Europe and the US, global market sentiment is a huge factor that affects our economy. This is proven true by our record savings in this country since the GFC as the general population adopted a defensive stance such as savings and paying down their debt, as opposed to an aggressive growth strategy such as leveraging through increased debt.
I believe the RBA has got it right with the recent 0.25 percentage point drop in interest rates leaving it more room to move if the world economy deteriorates further. This will give the property market a little optimism.
There is also a two-speed property market. The higher end market has continued to drop in value albeit it has slowed and some say even bottomed but the lower end market has shown stability and in some areas have shown growth. However when one averages all the markets together it distorts what is really happening at a micro level. Hence when the averages are reported that house prices in the Australian capitals fell 1.4% in May to the lowest level in six years it really is a distortion of what is happening at a micro level. It simply means one has to be much more careful and selective and do much more research to buy properties that are doing well.
Gone are the days when one could buy any property in any area and you could sit back and watch your properties grow in value.
 Ed Chan is a founding partner of <a target="_blank" href="https://www.chan-naylor.com.au/">Chan and Naylor</a> accountants and a leading property tax specialist. He has co-authored three best-selling books as a seasoned property investor who understands the relationship between property investment and tax.
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Increased – and selective – skilled immigration needed to help Australia’s economy

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According to data produced by the Victorian government, renters in regional areas of the state move more frequently than those in the metropolitan area.
In Melbourne the average tenancy duration in the December quarter last year was 25.9 months – i.e. just over two years. In regional Victoria the comparative number was a shorter 22.7 months – just under two years.
These numbers are skewed by some very-long-term tenancies, as the median – the middle value – is much lower.
In Melbourne the median tenancy duration was a short 17 months. In regional Victoria it was 15 months.
The data also shows that, as would be expected, the smaller the dwelling, the shorter the tenancy. In both the metropolitan and regional areas one bedroom homes have the shortest median tenancy of just 14 months. This is a very popular form of rental home. Census data from 2006 shows that there are proportionally fewer small flats or units being occupied by their owners – the majority are rented.
Interestingly, the largest homes, those with four or more bedrooms have a shorter tenancy – 16 months – compared with 18 for both two- and three bedrooms. This will be, in part, because two- and three-bedroom houses and units make up the majority of rented housing.
The average duration of tenancy is certainly lower than it is for owner-occupied housing and that is one of the advantages for people who prefer to rent than buy. If an owner-occupier sought to sell and move every two years they would find their equity was eroded by the stamp duty incurred each time.
Enzo Raimondo is CEO of the <a href="https://www.reiv.com.au/" target="_blank">Real Estate Institute of Victoria</a>.
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