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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Strong leasing activity and an increase in speculative development looks set to drive heightened investment demand for industrial property in <place><city>Melbourne</city></place>. 
Colliers International’s Melbourne Industrial Research &amp; Forecast Report for H1 2012 has found the shortage of prime-grade stock we have observed in recent times is expected to continue over the next 12 months and result in increased activity in the middle-tier market. 
The combination of high tenant demand for prime-grade stock and limited speculative development in the current market is likely to result in an increased number of tenants seeking second-grade stock.
The majority of developers are now awaiting pre-commitments before starting new industrial projects in <city><place>Melbourne</place></city>, while a number of speculative developments in the west and south-east markets have been fully leased prior to completion. 
We expect this to lead to more speculative development occurring in 2012, although access to finance still remains an issue for many developers. 
As a result, limited new supply of premium stock is expected over the short to medium term. and we expect purchasers will turn their attention to the middle tier of the market, where the greatest opportunities will exist in the next 12 months. 
As demonstrated in the report, we believe the <city><place>Melbourne</place></city> industrial investment sales market is set for increased demand from investors over the remainder of 2012. 
The lack of stock on the market currently available for sale is likely to encourage capital values to increase over the second half of the year, and prime grade average yields are set to compress further. 
From a leasing perspective, the Melbourne industrial market remains robust, with more than 370,000 square metres leased between October 2011 and March 2012, an increase of almost 100% from the previous six months. 
<city><place>Melbourne</place></city> is expected to continue to have a shortage of prime-grade stock over 3,000 square metres due to strong tenant demand and limited new construction activity. 
Geographically, <city>Melbourne</city>’s West remains the best-performing market in <state><place>Victoria</place></state>, accounting for 52 per cent of the total area leased. 
Most demand for space is coming from tenants looking for warehousing and distribution centres, with the growth of online retailing also a key driver. 
Many tenants are now being forced to take up existing secondary grade stock as a result of prime-grade shortages. 
Developers are responding to the situation and, as a result, we are starting to see higher levels of speculative development. 
As indicated in our report, of the total 106,000 square metres of industrial stock currently under construction in <state><place>Victoria</place></state>, 60% is speculative. 
Net face rents have remained stable across all markets over the past six months, however, the shortage of available stock has resulted in a decline of prime grade incentives in the south-east, east and north. 
Increasing pre-lease rents have also become apparent from the stock shortage. 
A creeping increase in net face rents is possible over the next 12 months as a direct result of the current stock shortage. 
On the investment front, total activity has slowed significantly over the past six months. There were eight transactions, totalling $145 million, representing a decline in total volume of almost 50% from the previous six-month period. 
Institutions are now becoming more active in the Melbourne industrial market, with GPT’s recent purchase of Citiport Business Park in Port Melbourne from Salta Properties for $61million accounting for the majority of total volume. 
Capital values and yields have also remained stable over the last six months.
Tony Iuliano is national director of industrial for <a href="https://www.colliers.com.au/Find-a-location/Victoria.aspx" target="_blank">Colliers International in Victoria</a>.
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tiuliano-Grw8mDzBKZ

Strong investor demand for Melbourne industrial property in next year

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The striking Wharf Road, Gladesville residence Avondale has sold for $5,325,000, the highest sale of the week.
The 2,141-square metre estate was sold under the hammer by auctioneer Christopher Mourd of Cooley Auctions on Saturday, May 19. There were seven registered bidders, with three putting in bids. Savills listing agents Adam Ross and Shayne Harris had been seeking more than $4.8 million.
The house dates back to 1888, with renovations undertaken in 1993 and 2009. It’s an ornate Victorian residence built by solicitor Edwin Sandys Lumsdaine, the husband of Banjo Paterson's sister, Rose Florence Paterson. A son of Reverend William Lumsdaine, he was also a religious, having a small chapel built within the house, which is now used as a study. The grounds have the original stables, which have been converted to a self-contained guest house overlooking a 16-metre swimming pool. There's also an 1830s sandstone cottage, Rockend, which was the home of Banjo Paterson's grandmother and as a young man, the iconic bush poet lived there with her.
With ornate original details throughout, the two-storey residence has elegant formal sitting and dining rooms, five bedrooms, three bathrooms and a modern marble kitchen.
<img src="/images/stories/albertcres.jpg">
The week’s second most expensive sale was a five-bedroom Fitzroy North house (pictured above), sold by Nelson Alexander Real Estate for $4.2 million. Its auction was extremely heated, according Mark Armstrong of Property Tycoon.
“A huge crowd of around 300 people looked on as two punters with deep pockets went toe to toe for almost half an hour and placing around 200 bids,” Armstrong says.
 
1. 76 Wharf Road, Gladesville, NSW, 2111, five-bedroom house sold at auction on May 19 by Savills NSW for $5,325,000
2. 39 Alfred Crescent, Fitzroy North, VIC, 3068, five-bedroom house, sold at auction on May 19 by Nelson Alexander Real Estate Fitzroy for $4.2 million
3. 5 Adaluma Avenue, Buddina, Queensland, 4575, five-bedroom house, sold at auction on May 17 by Elite Lifestyle Properties for $3,112,500
4. 9 Beauchamp Avenue, Chatswood, NSW, 2067, five-bedroom house, sold before auction on May 19 by Century 21 Cordeau Marshall Lindfield for $2.7 million
5. 6 Rivers Street, Bellevue Hill, NSW, 2023, three-bedroom house, sold at auction on May 15 by Laing + Simmons Double Bay for $2.6 million
6. 1 Ryries Parade, Cremorne, NSW, 2090, four-bedroom house, sold at auction on May 19 by McGrath Estate Agents for $2.6 million
7. 39 Bay Street, Brighton, VIC, 3186, five-bedroom house, sold before auction on May 19 by Hodges Brighton for $2.4 million
8. 31 Rubens Grove, Canterbury, VIC, 3126, six-bedroom house, sold at auction on May 19 by Marshall White Albert Park/Armadale/Brighton/Hawthorn for $2.3 million
9. 15 Evans Road, Kew, VIC, 3101, five-bedroom house, sold at auction on May 19 by Jellis Craig Real Estate Hawthorn for $2.27 million
10. 32 Duke Street, Bulimba, Queensland, 4171, four-bedroom house, sold at auction on May 17 by Place Estate Agents for $2.12 million
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Gladesville residence Avondale leads week’s top sales: RP Data

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Developers David Devine and Ken Woodley have walked away from buying the Couran Cove resort on South Stradbroke Island.
Devine and Woodley, who established Metro Property Group after selling out of Devine Limited, confirmed to the Gold Coast Bulletin they had backed out of the conditional contract.
"After undertaking thorough due diligence on the deal, we have elected not to proceed," Devine said.
News Ltd papers have previously speculated the billionaire American vendor was prepared to sell the resort for less than $20 million.
Ferrier Hodgson will now try to negotiate a new sale for Couran Cove, which closed in June last year after being placed into voluntary liquidation when American philanthropist Chuck Feeney decided to withdraw his financial support for the property.
Records showed Feeney poured $283 million into Couran Cove from 1998 until last year.
Feeney controls the property through InterPacific Group, which is owned by his Bermuda-based charity Atlantic Philanthropies.
The freehold assets of Couran Cove include 158 units and a waterfront building that has a reception area, cafes, conference facilities and function rooms, plus a beachfront surf club that incorporates restaurant function rooms and sports facilities.
The main leasehold assets are 102 marina berths and jetties.
It’s been mooted any new owner may also be able to implement the plans for a further 198 strata-titled cabins, 14 units and a yacht club, which were part of the original proposal.
 
 
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Developers David Devine and Ken Woodley back out of Couran Cove resort purchase

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Listed property investment returns were strong in April, but superannuation funds may deliver an end-of-financial-year loss for members, according to research firm Chant West.
Chant West is forecasting super funds financial year to date returns to fall into the red by about -0.5% as a result of the recent global sharemarket woes due to fears that Greece will default on its debts and exit the eurozone.
In its April update, Chant West notes that share markets, the main drivers of growth fund performance, were mixed in April with the Australian share market gaining 1.3% but international shares were down 1.6%.
Listed property performed strongly though with Australian REITs advancing 5.4% and global REITs up 2.8%.
“Superannuation funds were up over the first four months of the calendar year on the back of strong share markets,” explains Chant West director Warren Chant.
“However, in the first half of May we have seen world markets slide on renewed fears that Greece may need to default on its debt and exit the euro zone.
“As a result, we estimate that the median growth fund is down 3% so far in May, bringing the financial year to date return into the red at about -0.5%.
“What that means is that the likelihood of a third consecutive positive financial year return is now in serious jeopardy, with a lot hanging on the outcome when Greece goes back to the polls in June,” he says.
Last financial year super funds delivered average returns of 9.2%.
For end-of-financial-year tax tips for property investors, sign up for tomorrow’s  free webinar (May 23) at 12.30pm.
 
 
 
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Listed property returns strong in April but super funds heading for end-of-financial-year loss

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Hotel occupancy rates across Australia are expected to rise from 65% to 68% by the end of 2014, but the smaller regional hotels will continue to struggle to fill their rooms, according to forecasts by Deloitte Access Economics. 
By the end of 2014 Perth is forecast to have the highest hotel occupancy rate of 89% on the back of business demand due to the resources boom, replacing Sydney as Australia’s top-performing hotel market. 
Room rates in Perth are also forecast to become the highest in Australia by the September quarter of 2012 “on the back of the sustained strength of mining-related business travel” and are project to reach $249 by the end of the forecast period, an average annual increase of 14% – more than three times the national average. 
Sydney hotel occupancy rates are forecast to rise to 88% by the end 2014, a rise of only 2% from current levels, according to the Deloitte Access Economics Tourism &amp; Hotel Outlook report. 
Sydney room rates are expected to grow by 3.9% annually, increasing to an average of $210 by the end of 2014.
Melbourne occupancy rates are expected to rise by 6% to reach 85% by the end of 2014, with room rates are forecast to grow at an average of 4.3% over the next three years to just under $200.
Across Australia projected average yield per room (revenue per available room – RevPAR) is forecast to increase by an average annual rate of 5.5% over the next three years, reaching $110 by the December 2014 quarter while average room rate is forecast to increase to $163 by the end of 2014, growing at an average annual rate of 4.1%. 
Deloitte says the forecasts are consistent with expected growth in international visitors, strong domestic business travel and a modest roll out of new hotel developments. 
Deloitte Access Economics’ Lachlan Smirl says demand in capital cities in particular has grown, and will continue to grow, strongly, but the stock of rooms, or room nights available, has grown just 2.8% over the last four years. 
“Looking forward, growth in demand is projected to continue to outstrip growth in supply. Room nights sold are forecast to grow by 2.3% a year, with room nights available to grow by just 0.7% a year.  It’s not surprising, therefore, that room rates and occupancies are on the up.”
Regional hotels though will continue to struggle.
Smirl says a clear gap between hotels in regional areas and capital cities will remain.
“We forecast regional occupancy rates to reach 60% by the end of 2014, compared with 80% or higher in many of the mainland capital cities,” he says. 
“Among other things, this reflects the continued shift in the nature of the visitor economy, with international travellers and the business segment becoming more prominent, and their hotel stays being heavily geared towards capital city destinations.”
 
<hr class="system-pagebreak">
 
He says recent investment in hotel construction has been weaker due to Australia’s investment performance being driven primarily by the mining industry. 
“There is no big news on the supply side. The ‘definite’ pipeline in hotel development remains weak, with an 8% decline in value of committed hotel and resort projects over the past year. 
“While the value of those ‘in planning’ – which may or may not go ahead – has improved 30% since late 2010, overall the investment pipeline remains weak. That said, the federal government has recently announced a plan to prepare an annual list of ‘investment-ready’ tourism projects as a strategy to encourage investment in hotels, especially in capital cities.” 
Other key outlooks are: 
Brisbane
<ul>
<li>Occupancies are forecast to remain flat over the projection period, finishing the outlook period just 1% higher than today’s levels</li>
<li>The Brisbane market will still continue to benefit from the Queensland’s resource-related activity, with room rates projected to grow strongly – an average 7.5% per year to $208 by the end of 2014 </li>
</ul>
Adelaide
<ul>
<li>Room occupancy rates in Adelaide are forecast to be flat over the forecast period, gaining just 1% over the next three years </li>
<li>Room rate growth has been stagnant but is expected to increase modestly over the forecast period by 3.7% per year to $159 by the end of 2014 – slower than other mainland capitals </li>
</ul>
Gold Coast
<ul>
<li>Room occupancy rates are projected to increase from 66% in the final quarter of 2011 to 69% by the end of 2014</li>
<li>Yields are expected to grow moderately, increasing by 5.2% per year over the next three years to a RevPAR of $100 at end-2014. </li>
</ul>
Tropical north Queensland
<ul>
<li>Strong recovery in occupancy rates following the natural disasters of 2010 are forecast, growing by almost 9% to 67% over the next three years </li>
<li>Much lower room rates than seen elsewhere in Australia are helping to drive this increase in occupancy, but annual growth in room rates of 5.1% over the next three years to $134 by the end 2014 is forecast.</li>
</ul>
 
 
<ul></ul>
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Hotel occupancy rates to reach 68% by 2014, with Perth hotels forecast to outperform Sydney: Deloitte

Fashionable Paddington with its quintessential Queenslanders leading Brisbane property market recovery: REIQ

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In the days following the federal budget earlier this month the main debate appeared to be driven by political infighting. However, as the headlines start to settle I would like to talk about how changes to super contributions and taxes might be expected to impact the appetite for property among private investors.
The budget also anticipated further cuts to interest rates, and such an outcome would further add to the appeal of property investment. But I will return to interest rates shortly.
First up the history of concessional contributions is mixed, and the use of the federal budget to vary this area of policy is not uncommon.
One of the most notable policies meant that between May 10, 2006 and June 30, 2007, you could contribute up to $1 million of non-concessional contributions to your super fund. This figure looks very generous, as the current budget introduces a cap on eligible contributions for the next two years. If you are 50-plus the cap will be reduced from $50,000 to $25,000.
And while a $1 million contribution may appear overly generous for anyone on an average income, the cap has been on a downward trend from $100,000 in 2007 and 2008 to $50,000 over the 3 years 2009-2011 and now to $25,000 in 2012.
It had generally been anticipated that with some restrictions on the size of individual super balances, the $50,000 cap, which has been in place since 2009, would be retained. Now that cap has been delayed for two years. The other change is that taxpayers with an income of $300,000 and more will have to pay 30% on super contributions up from the current 15%. They do retain the 15% rate up to $25,000.
While it is true that the changes only impact high-income brackets I feel that these changes feed the perception that superannuation policy is an area where policy is more or less forever changing.
Investors dislike change, and if you fit this income and age bracket then other investments like property start to look very attractive. Even more so when the impact of negative gearing is factored in, plus there are the advantages flowing from current low stock levels, low vacancy rates and when it comes to creating wealth, property still looks good in terms of potential capital gain.
For all of these reasons, if your have extra cash available that might have gone to super, then the property alternative looks attractive. There was at least a general indication that in 2007, with $1 million cap about to end that some investors left property so now the reverse trend should not be that surprising.
If we now take a general look at the potential impact on interest rates both the federal government and opposition appear to have a steadfast commitment to cut spending. The risk might be that a return to surplus will dampen economic growth and so further fuel the need for more cuts to interest rates.
If there is slower growth where might this leave the housing industry?
There was no direct stimulus in the budget and so possibly any steps to boost a pick-up in construction will have to rest with the states. However, states some face their own budget deficits and current incentives are about to expire.
It appears that a boost to housing construction may not be on the horizon. However the move back to a budget surplus appears to be the right message given current international settings and this should be a positive for investors.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" target="_blank">Colliers International</a>
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Super change to encourage property investment

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It has taken almost four years, but in 2012 prime office markets in Perth, Melbourne and Adelaide should expunge the capital value lost through the GFC, according to CBRE research.
In turn, this will impact upon their suburban office markets as well.
But it might take until 2016 before Sydney, Brisbane and Canberra are able to recoup that same lost ground.
And the reasons for that?
The Perth market has enjoyed a very strong bounce from the resources sector, with very little new construction over the past three or four years.
Melbourne entered the post-GFC downturn with probably the best local economy. And it did not have the same concentration of finance sector tenants that Sydney did. Therefore it experienced the shallowest dip in capital value.
Click to enlarge
<a href="/images/stories/langmay22.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/langmay22thumb.gif"></a>
Throughout the downturn, Adelaide seemed rather protected from any GFC fallout — keeping a stable balance between demand and supply.
Unfortunately, the Sydney market had the greatest exposure to the finance sector — which has kept its vacancy rate disturbingly high, despite only modest new construction levels.
Canberra already had a significantly high vacancy rate when the GFC hit. And the government cutbacks will certainly not help to improve that situation.
While Brisbane also has its own mining sector, it has not created sufficient demand to reduce the high vacancy rate following the GFC downturn. And clearly the devastating and continued flooding has adversely affected the local economy as well.
Bottom line: Fortunately, there has been only a modest amount of new construction in the past four years. And this will help to keep vacancy rates across Australia hovering around the long-term averages, for most capital cities.
As a commercial property investor, you should be viewing the Perth recovery as too rapid. And the Brisbane recovery is too slow. It's not wise to invest into volatility, or stagnation.
Both the Adelaide and Canberra markets are relatively small and affected more by local issues.
Therefore, with some guidance, you should be focusing upon the Melbourne and Sydney markets going forward.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
 
 
 
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It’s time for commercial property investors to focus on Melbourne and Sydney office markets

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A new office trust has been launched by Charter Hall giving high-net-worth investors and self-managed super funds (SMSFs) the opportunity to invest in a tax-advantageous A-grade Perth CBD office building, with yields of 9% promised.
The trust, known as the Charter Hall Direct 144 Stirling Street Trust, is made up of a single asset, the Hatch Building at 144 Stirling Street on the northern fringe of the Perth CBD.
The property is a recently constructed 11,0000-square-metre A-grade office building on a corner site with four street frontages and parking for 250 cars.
Engineering and consulting group Hatch is the key tenant and recently reviewed its lease for a further 10 years.
The trust aims to provide investors with sustainable and stable, tax-advantaged income and the potential for capital growth through investment in the Hatch building.
Charter Hall Direct is forecasting a first year income yield of 8.85%, growing to over 9% during the life of the Trust.
According to trust manager Charter Hall Direct Property, the unlisted property funds arm of the ASX-listed Charter Hall group, the trust has been launched in response to growing demand for investment opportunities in the Perth CBD.
Head of Charter Hall Direct Property Richard Stacker says advisers and investors are looking for alternative investments that have a return profile that is less correlated to equity markets and other asset classes.
“The growing spread between term deposits and direct property, which currently sit at around 3% to 4% after the recent lowering of interest rates, means SMSFs are very attracted to the yields on offer in direct property.”
Stacker says investors are looking to commercial property to enhance their overall portfolio returns. "We are currently in one of the best buying cycles since the mid-1990s and investors who understand or are being advised by people who understand property cycles are taking full advantage of this. "Investors need to be selective on the markets and property sectors they invest in. For example, in the resource based states commercial property markets are expected to outperform given the current climate and strong employment growth prospects.
“The new trust is one opportunity for retail investors and SMSFs to benefit from the resources boom, employment growth in Western Australia and what we expect will be strong continued demand for high quality office space over the medium term," he says. Stacker says 80% of Charter Hall Direct Property's equity flows are coming from SMSF investors and it is a segment he expects to see more growth from over the coming years. Minimum investment in the trust is $50,000. For end-of-financial-year tax tips for property investors, <a target="_blank" href="/news">sign up for our free webinar on Wednesday, May 23 at 12.30pm</a>.
 
 
 
 
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New office trust to provide ‘tax-advantaged’ income and yields of 9% to investors and SMSFs

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Australia is not suffering from a nationwide undersupply of housing, according to Rob Sindel, chief executive of building products group CSR.
"I think that some of the forecasts that we've previously seen around 180,000 and 200,000 housing starts a year being underlying demand, I don't believe those because they were predicated on the basis of household formations, the number of people living in a house shrinking. That hasn't come to pass. We've actually seen that number start to turn the other way, " Sindel told the ABC’s Inside Business program.
“[The number of people living in a house has] started to go up after falling for a number of years,” Sindel said.
“What you've got is you've got shortages in certain places. You've got shortages in NSW, you've got shortages in south-east Queensland. You've got a shortage in Western Australia.  “You don't have a shortage in Victoria. And it's often driven by land shortages, it's driven by a number of factors. So I think it's very hard to categorise the Australian market as just one market. There is a series of undermarkets,” he says.
Sindel warns that the current dip in housing construction is looking like being a much longer affair than dips experienced during the 1990s, which he says “were six or eight months then you could see your way through the other side”. “This time I think we had the dip, we had the stimulus, and now we've dipped again on the basis- and I think people are very fearful about what's happening in Europe and we've got a lot more information through the media.
“So people are putting off those big decisions like buying a house and so you're seeing a much, much more drawn-out recovery,” he says.
CSR estimates that total housing starts in Australia will fall to about 140,000 in the year to March 2013, down from the 148,300 in 2012.
Last week CSR reported that net profit fell to $76.3 million in the year to March 31 from $503.4 million the previous year.
Trading revenue fell to $1.8 billion from $1.9 billion.
"Excluding the global financial crisis and the introduction of the GST, this represents the lowest level of housing activity in the past 15 years," CSR said in a statement.
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