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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

<html><body>
International brands like Zara and Apple have helped drive shoppers back to Westfield shopping centres and drive up sales among mini-major retail tenants, according to the latest quarterly update from the shopping centre group.
Turnover in the mini-major category, which includes Zara and Apple along with the likes of JB Hi-Fi, Dick Smith and Priceline, was up 2.7% for the year to March and 4.3% for the first three months of 2012, according to March quarter results filed by Westfield Retail Trust (WRT), the spin-off entity that manages the $13 billion portfolio of Australian and New Zealand shopping centres.
Over the quarter sales among mini-majors grew at nearly four times the rate of total speciality sales across Westfield’s Australian portfolio (1.1%) and more than double the 1.2% growth achieved over the year to March.
“Retailers such as Apple and Zara demonstrate the success that can be enjoyed through an exciting and engaging retail experience. These mini-majors are proving to be great destinational retailers,” said Westfield Retail Trust chairman Richard Warburton in his address to shareholders.
Warburton says Westfield centres are continuing to “evolve and adapt to the environment and new retail trends”. 
<img src="/images/stories/westfieldpittst.jpg">
“Innovative dining precincts, expanded retail services, new market entrants and larger-format stores are examples of this,” he adds. 
Zara opened its 1,800-square-metre store in Westfield Sydney on Pitt Street mall in April last year – its first store in Australia.
A new Zara store is planned at Westfield Doncaster for later this year.
There are Apple stores in Westfield Doncaster and Westfield Southland in Melbourne, Westfield Chermside in Brisbane and Westfield Hornsby in Sydney.
According to the quarterly results, cinema tenants are also performing much more strongly, with sales rising 9.3% for the first quarter of 2012 to be up 4% for the 12 months to March 2012, <a target="_blank" href="https://www.propertyobserver.com.au/news/westfield-cinemas-struggling-perhaps-due-to-pricey-popcorn/2011081751194">reversing a trend of declining sales</a> reported last year.
The decline in department store sales appears to be bottoming out, with sales at the likes of Myer and David Jones down 0.2% for the quarter compared with a 5.2% decline in turnover for the year to March.
Discount department store sales (Kmart, Target, Big W) fell 2.5% over the quarter, with jewellery stores (3.7%) and footwear retailers (1.8%) also performing poorly.
Click to enlarge
<a href="/images/stories/westfieldmay21.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/westfieldmay21thumb.gif"></a>
 
<hr class="system-pagebreak">
 
The impact of international stores in driving retail sales was noted recently by CBRE retail services associate director Max Cookes.
Cookes says international retailers have helped Melbourne retain its mantle as one of the strongest-performing retail markets in the country. 
“The recent level of enquiry we have received from international retailers has been stronger than this time last year,” says Cookes.
“Over the past 18 months, we have successfully reached agreements with Zara, Topshop, Paul Smith and Thomas Pink, who have all opened flagship locations in Melbourne.”
According to the WRT update, speciality Westfield rents increased 3.1% for the 12 months to March 31.
Speciality sales were strongest in Westfield’s Victoria shopping centres rising over the first three months of the year 3.1% to be up 4% for the 12 months to March 2012 compared with the previous 12-month period.
In comparison NSW speciality sales were up just 0.3% and down 0.6% for the year.
The second strongest performing state was WA, with Westfield centres recording a 2% rise in speciality sales for the quarter, accelerating from just 0.6% growth for the 12 months.
Speciality retail sales generate over $9,700 per square metre in Australia, and over NZ$8,200 per square metre in New Zealand with the portfolio remaining above ensures continued demand for quality retail space with the portfolio remaining above 99.5% leased.
In February, the trust reported comparable net operating income growth up 4.3% in the year to December 2011 attributed to “the strength, quality and resilience of the property portfolio”. 
Over 2011 Westfield signed over 2,800 lease deals covering more than 375,000 square metres of retail space. 
Westfield Retail Trust managing director Domenic Panaccio says Westfield Sydney sales continue to grow strongly across all categories, with the luxury precinct and food retail performing well. 
“Customer traffic also continues to grow. The Westfield Sydney and Sydney Central Plaza precinct is the most productive centre in the trust’s portfolio from a specialty sales perspective and we are extremely pleased with our flagship asset,” he says. 
Panaccio says the Westfield Sydney project is now complete, with the $1.34 billion Westfield Sydney Facility repaid. 
The trust also reconfirmed that distributable earnings and distribution in 2012 are forecast to be 18.75¢ per stapled security.
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Zara, Apple and reviving cinemas among best-performing Westfield tenants

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Newcastle pubs have proved popular with Sydney investors, with both Newcastle offerings selling at a yield of 7.9% as part of an auction of seven ALH pubs in Melbourne on Friday.
Although the auction was well attended, there were few bidders at the auction at Melbourne’s Crown Casino, with four of the pubs passed in despite the best efforts of auctioneer David Scholes and the placing of a number of vendor bids.
Bidders appeared intent on securing bargains and yields of around 9%, with initial bidding on some of the pubs starting at well below the price suggested by Scholes on behalf of vendors.
<img src="/images/stories/dubbotav.jpg">
At one point, with bidders unwilling to meet the $12 million to $13 million starting price for the biggest property in the portfolio, the 4,100-square-metre Macquarie Inn Hotel and Dan Murphy’s in Dubbo (pictured above). Scholes tried to whip up interest by reminding them that fugitive Malcolm Naden was no longer hiding out at the nearby White Plains zoo.
“You can rest easy. He’s been captured,” Scholes said.
All seven pubs were auction with new 20-year leases (with five renewal options of 10 years each) to pub operator ALH and are 75% owned by Woolworths and 25% owned by private hotelier the Bruce Mathiesen Group.
<img src="/images/stories/doncastertav.jpg">
Despite pre-auction interest, the prized asset, the Cherry Hill Tavern Hotel and BWS bottle shop (pictured above) sitting on a 9,100-square-metre site near The Pines Shopping Centre in the affluent Melbourne eastern suburb of Doncaster, failed to sell.
Agents expect the 1,900-square-metre building, which includes an alfresco dining room and TAB gaming bar a well as a “thriving BWS bottle shop”, to sell post-auction
<img src="/images/stories/jewells.jpg">
The Jewells Tavern and BWS (pictured above) on the corner of Gradburn Parade and Gurdie Street in Newcastle was the only property to meet the reserve and sell at auction.
It sold for $5.821 million, just above the vendor bid of $5.82 million following a bidding contest between the eventual Sydney winner and a Melbourne buyer.
Having undergone a recent $865,000 refurbishment, the 1,000-square-metre brings in net rent of $460,000 per annum and sits on a 5,700-square-metre site adjacent to the Jewells Town Plaza Shopping Centre.
 
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<img src="/images/stories/charlestown.jpg">
The Mattara Hotel in Charlestown in Newcastle (pictured above), with net rent of $415,000 per annum, sold prior to auction for $5.25 million on a 7.9% yield.
<img src="/images/stories/caboolture1.jpg">
The Club Tavern and BWS on Beerburrum Road in Caboolture (pictured above), with net rent of $600,000 per annum and situated 41 kilometres north of Brisbane, sold post-auction on a yield of 7.9%.
Also selling post-auction was the Granada Hotel and BWS in Berriedale in Tasmania. There were four bidders on the property, with the winning bidder ($3.3 million) having the first right to negotiate with the vendor.
The pub eventually sold for close to the winning bid price on a yield of around 8%. It is located directly opposite from the $80 million MONA museum, the top tourist attraction in Tasmania.
The Westower Tavern, BWS and Dan Murphy’s on the Pacific Highway in Ballina, with annual net rent of $730,000 and across from the Big Prawn redevelopment, was passed in with a series of low bids not accepted.  The vendor is seeking around $10 million for the property, which measures 2,300 square metres.
The seven properties were marketed jointly by Burgess Rawson agents Billy Holderhead, Raoul Holderhead, Simon Staddon and Pat Kelly alongside Scott Callow, Daniel Dragicevich, Joel Fisher and Craig Harley from CBRE Hotels.
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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Newcastle ALH pubs sell to Sydney investors on 7.9% yields but Doncaster’s Cherry Hill tavern passed in

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Whether you are buying or selling real estate the importance of property inspections is paramount in a smooth transaction.
Not being prepared can lead to last-minute disruptions in a sale or purchase and cause major headaches to all parties involved.
For a buyer, a pre-purchase building inspection report (whether it is for a house, a strata unit or a company title unit) is used to ensure that the property is in good condition and does not have any major defects that may affect the property’s value or cost money to rectify in the future.
For a seller, providing a pre-sale building report (including a pest report if necessary) is always a good idea. It demonstrates transparency and honesty on the seller’s behalf and means that prospective buyers don’t have to order and pay for one separately, often at the last minute. Some buyers may still wish to request an independent report, but that is their decision.
There have been cases where the seller has provided the report in the contract of sale as an annexure and included a condition that the cost of the report should be reimbursed by the purchaser. This seems a bit miserly to me. What the seller should do is concentrate on achieving a good sale price through a smooth exchange of contracts and write off the relatively low cost of a building report. The benefits of providing the report in advance far outweigh the outlay involved, so it should be included at no charge.
For buyers it is critically important that they request an inspection report (if one is not already available) as soon as possible once they are interested in a particular property. The process can take two to four days, during which a physical inspection or inspection of strata or company title records is finalised.
I have seen many cases where the successful purchasers of a hot property among several interested buyers were the ones who first obtained their inspection report. Once they were satisfied that the property had no major defects they took the plunge and exchanged contracts.  It often comes down to a race between who gets the report first and is willing to go ahead, not who will pay the highest price.
Legislation in NSW provides a five-business-day cooling-off period from the time of exchange of contracts until the exchange becomes unconditional at 5pm on the fifth day. This short period can be used to obtain a building inspection report, but it is cutting it very short.
In the case of auction properties it is particularly important for buyers to have already ordered a building report they are happy with before they bid successfully on the day (or exchange contracts on the same day after it is passed in).
In summary:
<ol start="1">
<li>Sellers should attach a current inspection report to the contract of sale (and provide it free of charge).</li>
<li>Buyers should be aware of the importance and urgency of obtaining or viewing an existing inspection report before purchasing a property by private treaty or at auction. </li>
</ol>
Tim Mansfield is a 30-year global  veteran in the real estate industry and Founder and CEO of Sydney-based buyers’ agents <a href="https://www.primepropertybuyer.com" target="_blank">PrimePropertyBuyer</a>. You can follow Tim on Twitter by clicking <a href="https://twitter.com/#!/tim_mansfield">here</a>.
 
 
 
 
 
<ol start="1"></ol>
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The importance of building inspections in property transactions

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Veteran retail property and business professional Duncan Johnston is taking a truly counter-intuitive approach to investment opportunities in shopping strips. There are “marvellous buying opportunities” for cashed-up investors such as self-managed super funds, he says. 
Johnston and his associates manage many retail and commercial properties on behalf of more than 150 self-managed super funds (SMSFs) administered by Accounting Solutions Victoria and its financial planning arm, Financial Solutions Victoria. 
In another role, <city>Johnston</city> is co-owner of a handful of Collins franchises including the Hill of Content bookshops in Melbourne and Sydney. 
As a tenant, he is making the most of the difficult retail market by negotiating cut-price rents for Collins franchisees. And as an investor, he is buying strip shops on the cheap for his SMSF clients. 
When Johnston heard that 38 shops on Oxford and William streets in Sydney’s Paddington were reportedly vacant, his reaction was blunt: “It’s a real opportunity for investors.”  
 
Often a number of his SMSF clients join together to buy more expensive properties. “We are looking at properties costing $1 million to $5 million.” 
Johnston says the keys to successful buying in this market include paying the right price for quality property, carefully choosing tenants that will draw in customers, and then looking after those tenants in such ways as offering rent holidays if trading gets tough. 
The selection of tenants is all-important. <city>Johnston</city> favours what he calls lifestyle tenants that include home furnishings, food supply, entertainment, books and restaurants. 
A series of interviews by Property Observer confirm that property analysts and investors have a mixed and somewhat cautious outlook for retail property as an investment. 
Some analysts are convinced that the gloom-and-doom commentary directed at retail is overstated, pointing to some better-performing retail sectors and shopping areas as well as the expectations that retail spending will eventually recover. 
And some property specialists believe that investors who select their properties and tenants with extreme care can pick up bargains in this market – provided the purchase price allows for the possibility of more bad news. 
Here’s what five retail experts are saying: 
Property hunt
Johnston recently bid $2.6 million for a strip shop in Victoria’s Werribee on behalf of eight SMSFs who would have each put in $325,000. Although he decided not to match the winning bid of $2.85 million, the shop typifies the property that SMSFs are hunting for. 
The Werribee shop, which is located on the city’s main thoroughfare, is occupied by an IGA franchisee on a 10-year lease. And <city>Johnston</city> knows the shopping strip well because SMSF clients own a Centrelink shop a block away. 
IGA-type grocery businesses really appeal to <city>Johnston</city> as tenants for his SMSF landlords. He believes that the “IGAs of this world have really come into their own” as shopping habits change. 
“The average spend in a supermarket has gone from $70 or $80 down to $20 or $30 because more people are shopping once a day or every two days. And they like to buy near where they live or work.” 
For instance, <city>Johnston</city> describes the inner-<city>Sydney</city> suburb of Balmain – where he co-owns the Hill of Content bookshop – as a “classic” example of a suburb that could accommodate a small IGA supermarket in addition to the existing Woolworths. 
Although Johnston says that despite retail’s current woes, “it will be always there for the long term”. 
Johnston adds that while retail landlords might have received low yields in the past and relied on capital growth, yields have now reached 7% or 8%. “And while landlords may not be getting capital growth in the short term, we can see it expanding in the long term.” 
 
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Pessimism ‘overstated’
Leigh Warner, director for research and consulting with Jones Lang LaSalle, says that while retailers and landlords face challenges, the pessimism in some circumstances is overstated. 
“Retail turnover will recover,” Warner emphasises. While he believes that the aggressive credit growth experienced between 1997 and 2007 will not return, growth in population and real wages will justify an annual increase of about 5% in turnover over the next decade. 
“Spending growth is also likely to get a slight boost at some stage over the next few years as a cyclical recover in confidence sees the household savings rate fall from around 10% of household incomes to settle around 7%,” he adds. 
Although Jones Lang LaSalle’s research doesn’t include shopping strips – it tracks sales costing $5 million plus – Warner says his comments on the outlook for retail cover retail in general, not solely shopping centres. 
Warner believes that the retail yield spread – the difference between the retail yields and the 10-year bond rate – appears to suggest there is “pretty attractive buying” for investors. 
He says the yield spread for neighbourhood centres, for instance, is the biggest he has seen since the downturn of the early nineties. Jones Lang LaSalle calculates that the yield gap for neighbour centres stood at 685 basis points in March 2012 compared to 412 basis points at the market peak in late 2007. 
“It is very hard to finance a property that is regarded as secondary,” Warner points out. But for investors that could get finance, “we think in some instances, there will be some good returns made”. 
Warner says risk-averse investors have largely focused on dominant regional centres and quality CBD properties, leaving a potential opening for investors in secondary properties including neighbourhood centres. 
Interestingly, Warner says that astute buyers may find value in shops that have had little spent on their maintenance and improvement. “There is a very shallow buyer pool for these investments.” 
Warner adds that active investors and those taking professional advice may do well by bringing the shops up to a satisfactory standard. He emphasises, however, that investors should be confident about the property’s potential value and the suitability of an area’s demographics. 
High risk in hard-hit areas
Managing director of SQM Research Louis Christopher warns that any investor buying a strip shop in, say, <street>Oxford Street</street>, Paddington or in nearby <place><placename>Double</placename><placetype>Bay</placetype></place> would be taking a big bet. “There is considerable downside risk.” 
Christopher believes there are safer options in retail areas that aren’t as devastated. 
“But it’s all about price,” he says. “If you are going to buy into market right now, make sure the price you pay reflects what’s happening in the markets and the potential for further bad news and downgrades. 
“Tenants in <street>Oxford Street</street>, Paddington, are demanding substantial cuts. I am hearing demands for 30-40% cuts. The price needs to reflect that.” 
Christopher argues that <street>Oxford Street</street> can no longer blame its woes on Westfield Bondi Junction. He points to retail in another inner-eastern suburb, Potts Point which is potentially affected by <city>Westfield</city> yet is doing well. 
“<street>Oxford Street</street> is a physical mess; it’s difficult to park and hard for pedestrians to cross.” Further, many of the shops were upmarket and discretionary. “And rents are too high.” 
Nevertheless, Christopher says a “contrarian view” would be to buy a shop in <street>Oxford Street</street>. “It could be the point to re-enter retail. Do your homework. Understand the demographics, understand where rents are, and what turnovers are really like. And snoop on the ground, speaking to shopkeepers.” 
Well-located shops
Ross Horsley, research analyst for LandMark White, says that although retail spending is down, well-located properties will still earn satisfactory returns for landlords. 
And with yields rising as values fall, Horsley says there could be good buying opportunities including along shopping strips. 
Horsley suspects that a large number of for-rent and for-sale signs in a shopping strip may point to a chance for an investor to make an offer that may just be accepted. 
While Horsley doesn’t envisage that <street>Oxford Street</street> in Paddington will return to its peak from a retail perspective, he agrees the area is likely to improve when shoppers begin to spend again. 
Horsley says that despite weak consumer spending and high savings rates, well-located small shops, particularly in central business districts remain popular with SMSFs. 
Strong sectors
Tony Sherlock, senior property analyst for investment researcher Morningstar <country-region>Australia</country-region>, says there are few signs of an improving outlook for retail property. 
However, Sherlock writes in a new report – Retail – What’s in store? – that weak sales are not being experienced across all retail. He says the better-performing categories are consumer staples, pharmaceuticals, cosmetics, cafes, restaurants and supermarkets. 
“This is shown in recent sales statistics for supermarkets, up 3.7% on a 12-month moving average basis; liquor, up 7.1%; pharmaceutical, up 7.3%; and cafe/restaurants, up 4.2%.” 
Sherlock says this “bodes well” for owners of smaller neighbourhood and sub-regional malls.
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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Retail properties going ‘cheap’  and showing strong yields – but  take extreme care

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The level of vendor discounting and the average time on market are important vendor metrics to understand as they provide an insight around selling conditions in the marketplace.
Vendor discounting is simply the difference between the price at which a property is initially listed for sale and the price at which it ultimately sells for.
Time on market, on the other hand, is the difference between the date when a property is first advertised for sale compared to the contract date of a sale.
Both measures are taken across private treaty sales only and are across just those properties that have sold. Given this, it provides a good indication of conditions to those vendors that are focused on successfully selling their home.
As the first graph shows, the level of vendor discounting for houses has been trending slightly lower over recent months.
Across the combined capital cities, vendor discounting is recorded at -7.2% for houses and -7.1% for units. The vendor discounting measure for houses is higher than it has been in recent years while for units it is the same as it was at the same time last year.
Click to enlarge
<img src="/images/stories/rpmay111thumb.gif"> Across individual capital cities, vendor-discounting levels for houses are lower than at the same time last year in Perth and Darwin but higher elsewhere. Discounting levels for units are the same as last year in Sydney and lower in Brisbane, Perth and Darwin. In Melbourne, the level of vendor discounting is much higher than it was at the same time last year.
Click to enlarge
<img src="/images/stories/rpmay112thumb.gif">
The average number of days it takes to sell a house across the capital cities was also trending lower over the second half of 2011.
Typically there is a spike in the time it takes to sell a home early in the year and it has eased by March however, this year’s data is not reflecting these conditions for houses.
The average number of days it takes to sell a house was recorded at 77 days in March 2012 and it was 51 days for a unit. Both measures were higher than the 65 days and 47 days recorded respectively at the same time last year.
 Click to enlarge
<img src="/images/stories/rpmay114thumb.gif">
At an individual capital city level, the average time on market is lower than at the same time last year for houses in Brisbane, Perth and Darwin.
For units, the average time on market is currently lower than 12 months ago in Brisbane, Perth and Darwin. In Sydney, the average time on market is relatively similar to that at the same time last year while in Melbourne it is taking much longer to sell property than it was last year.
 Click to enlarge
<img src="/images/stories/rpmay112thumb.gif">
The improvement in vendor metrics in Brisbane, Perth and Darwin and the weakening conditions in Melbourne are reflective of the overall market conditions across these cities and highlighted by the amount of stock currently available for sale across these cities.
In Brisbane, total listings are just 2.3% higher than a year ago, in Perth they are -6.4% lower, in Darwin they are -16.4% lower and in Melbourne they are 36.1% higher.
The lower levels of discounting and average time on market in Brisbane, Perth and Darwin reflect improving market conditions in those cities. On the other hand, the significant increases in both measures across Melbourne reflect the cooling conditions across that market.
Overall, the elevated volume of stock available for sale reflects the low levels of demand for housing credit. Ongoing weakness across the housing market is likely to result in the average level of vendor discounting and the average time on market remaining at above-average levels.
Although this is likely to be the case, we have in recent months seen the amount of stock available for sale decline and the volume of sales stabilise. This may result in some further improvements in vendor discounting and time on market.
Cameron Kusher is senior research analyst at<a target="_blank" href="https://www.rpdata.com.au/"> RP Data</a>.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
 
 
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Australian property markets becoming more balanced: Cameron Kusher

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ACT had the biggest percentage increase of stock on market in Australia in the past year, according to RP Data, closely followed by Victoria. The number of properties for sale increased 37%, from 1,722 to 2,364. In Victoria, the number of listings increased 35% from 53,110 to 71,747.
The total number of properties for sale in Queensland has dropped slightly over the year, but it remains the state with the most homes for sale in Australia.
Queensland had a total of 84,761 properties up for sale in the month ending May 13, down from 85,162 for the same time last year.
The total number of properties for sale has increased around Australia, but the number of new listings has dropped from the same period last year in every state and territory.
The number of new listings in Australia for the month ending May 13 has dropped from 58,015 to 46,767.
While Queensland has the most available stock, New South Wales just edges it out for total property value, worth an estimated $50.5 billion.
“The number of newly advertised properties for sale rose last week however, the number of new listings remains much lower than at the same time last year (19.4% lower nationally and 15% lower across the combined capital cities),” RP Data’s Property Pulse report says.
“The slowdown in new listing numbers has seen the total number of home available for sale nationally reduce from a high of 325,446 in the first week of December to 309,074 at the end of last week. That’s 5% lower than the December 2011 peak nationally and 8.7% lower across the combined capitals.
“Across individual capital cities, the total number of properties advertised for sale is lower than at the same time last year in Brisbane (-0.9%), Perth (-7%) and Darwin (-18.7%).”
“Across all other capital cities, total listings are higher than at the same time last year with the largest increases recorded in Canberra (42.2%) and Melbourne (35.2%),” says RP Data.
 
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Property stock on market jumps 35% in Victoria in past year: RP Data

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The privately owned Perron Group has agreed to pay a post-GFC record of $690.4 million to acquire a 50% share in a portfolio of three Centro flagship regional shopping centres.
The Perth-based property investment business owned and controlled by founder and chairman Stan Perron has entered into unconditional contracts to become joint owners of the Colonnades in South Australia, The Glen in Victoria and the Galleria in Western Australia in a deal brokered by Simon Rooney, Australian head of retail investments at Jones Lang Lasalle.
<img src="/images/stories/galleria4.jpg" width="470">
The Galleria (pictured above and below) is the biggest asset in the portfolio with 73,000 square metres of net lettable area and 201 speciality stores.
<img src="/images/stories/galleria5.jpg" width="470">
The Glen (pictured below) measures 59,000 square metres.
<img src="/images/stories/glen.jpg" width="470">
The Colonnades (pictured below) measures nearly 66,000 square metres.
<img src="/images/stories/colonnade.jpg" width="470">
JLL says this transaction is a post-GFC record for an agency-negotiated real estate transaction.
The previous record was the $738 million paid by LaSalle Investment Management in August 2007 to acquire a 50% stake in the Westfield Doncaster in Melbourne.
The Centro portfolio sale price on reflects a 3.7% premium to book value (pre-transaction costs) reflecting an increased level of demand for exposure to this sector.
The recent transactions of Westfield Doncaster (25% interest), Northland (50% interest) and Myer Centre Brisbane (50% interest) in late 2010 through to early 2012 were sold in line with book values, while in late 2009 and early 2010, Westfield Whitford City (50% interest) and Joondalup were sold at 5% and 2.9% discounts to book values, respectively.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/perron.gif"><img src="/images/stories/perronthumb.gif"></a>
 
 
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Perron Group to acquire half stake in three Centro centres for $690 million, setting post-GFC commercial retail record 

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For the first time in more than a decade retailers are paying more on average to lease super-prime locations on Melbourne’s Bourke Street mall than on Sydney’s much-lauded Pitt Street mall, according to research by CBRE. 
The property group has calculated that the indicative rental on Pitt Street mall has fallen to $7,560 per square metre net per annum below the indicative rental of $7,700 per square metre net per annum on Melbourne’s Bourke Street mall.
<img width="470" src="/images/stories/cbremay17.png">
According to CBRE executive director for global research and consulting Kevin Stanley, the indicative rental measures is a better indicator of what retailers are paying rather than the traditional focus on the highest rents achievable, which are generally a very small component of the market (with the title still held by Sydney). 
Based on the indicative measure, Stanley says “Melbourne was now well outclassing Sydney in both the super prime market (that being Bourke Street Mall in Melbourne and Pitt Street Mall in Sydney) and the prime market”.
Sydney lost its crown after indicative rents for super-prime space in and immediately around the Pitt Street mall dropped 6.2% in the final quarter of 2011, the first drop in 10 years. 
According to Stanley, Sydney super-prime retail market has failed to recover after slumping last year, while the market was also disrupted by development of Westfield Sydney, which increased vacancies around the mall. 
CBRE notes that while the total retail vacancy rate in both Sydney and Melbourne remains low, they have crept higher over the past few years, with Sydney’s latest count showing a total rate of 3.1%, up from 0.6% in late 2009. 
Stanley says the 3.1% rate in Sydney is, in fact, the 10-year average, but the increase from such a low point just a few years ago had clearly caused some stress on rents. 
The gap is even greater in the prime space – the areas around pedestrian malls such as Pitt Street mall and Bourke Street mall. 
In these locations, indicative rents in Melbourne are now 18% above those of Sydney at $3,056 per square metre per annum vs $2,496 per square metre per annum net. 
“Similar to the change in super-prime rents, it’s the 16% fall in Sydney’s Prime rents over the last couple of years which has helped put Melbourne ahead,” says Stanley. 
Stanley does point that if you look at highest achievable rents, Sydney continues to outstrip Melbourne. 
“The highest Super Prime rent quoted in the Sydney CBD market is $11,560 per square metre, which is still 33% above the equivalent in Melbourne,” he says.
Bourke Street mall photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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Melbourne’s Bourke Street mall rents trump Sydney’s Pitt Street mall as most expensive for first time in a decade: CBRE

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Listed property group Charter Hall has paid $96 million to acquire the remaining 50% interest in 225 St Georges Terrace, a 19-level A-grade office building in the Perth CBD. 
The tower, which comprises 21,000 square metres of office space and 1,000 square metres of retail space, has been acquired by Charter Hall’s $1.5 billion wholesale Core Plus Office Fund (CPOF). 
CPOF acquired the remaining 50% from the privately owned Wylie Group at yield of around 9%. 
The fund acquired the original 50% of St Georges Terrace in 2006 for $61.5 million from the Wylie Group. 
According to CBRE, the <a target="_blank" href="https://www.propertyobserver.com.au/office/perth-to-lead-growth-in-cbd-office-rents-to-2016-but-melbourne-risks-oversupply-cbre-and-bis-shrapnel/2012032153958">Perth office market is forecast to be the strongest performer in terms of rental growth over the next few years</a>. 
Last year <a target="_blank" href="https://www.propertyobserver.com.au/western-australia/after-a-year-of-few-sales-perth-cbd-office-market-heats-up/2011071750826">Stockland sold its 50% holding in the 52-level BankWest Tower, also on St Georges Terrace</a>, for $130 million to joint owner Brookfield Prime Property Fund. 
At the same time the South Australia’s Motor Accident Commission picked up the CBD’s most eco-friendly new building at 226 Adelaide Terrace for about $100 million from the First State Group. 
The 225 St Georges Terrace building is 100% leased to major tenants including mining giant BHP Billiton, which occupies 71% of the net lettable area, with Wilson Parking leasing and operating the three-level car park.
The acquisition is being funded via a combination of equity from the recent raising and debt through CPOF?s new syndicated debt facility. 
Charter Hall joint managing director David Harrison says the acquisition consolidates CPOF’s investment “in one of Perth’s best-located prime office towers”. 
He adds that the acquisition “is in line with the fund’s investment mandate to own institutional quality assets where incremental value may be generated from rental reversions and possible expansion of the floor space”. 
“Perth has been a strong contributor to CPOF’s performance and we see this continuing within the lowest CBD vacancy office market in Australia,” he says.
 
 
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Charter Hall pays $96 million to complete 100% acquisition of Perth office tower

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Perth CBD’s rental office space squeeze may be heading west. 
Savills Research’s Spotlight on West Perth found that office vacancy rate there is 4.4% – down from 5.4% in January 2012. 
In the year to March 16,027 square metres of office space was leased in the precinct, of which mining and utilities operations took up 75%, or 12,221 square metres. 
Savills notes that West Perth had 4,124 square metres of office supply enter the market in the six months to December 2011, but there have been no further additions since. 
“Larger mining firms, typically located in the CBD are now forced to look at smaller amounts of space available in fringe markets such as West Perth,” the report says. 
Savills expects that available space will continue to drop in the secondary market, which could force second- and third-tier mining firms into alternative markets such as Subiaco, Herdsman and Applecross. 
About 11,880 square metres of office space is under construction in West Perth. 
Qube Property Group’s $70 million office building on Havelock Street is due for completion in December, and it is 50% leased to the Australian Financial Group. 
“We are confident the balance of space in the building will be leased for about $2.7million by the time it is finished,” says Qube director James Collis. 
Savills tracks sales over $1 million, and the group recorded $90 million worth of sales in two deals in the year to March 2012, which is a fall of 6% from $96 million in the previous year.
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