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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

<html><body>
The owner of the <a href="https://www.propertyobserver.com.au/residential/court-overturns-%241000-sheriff-sale-of-braybrook-home-valued-at-%24630000/2012050954635">$630,000 Braybrook house that sold for $1,000 at sheriff’s auction</a> was the plaintiff, Zhiping Zhou, who from 2000 had bought and sold property at least 10 times.
He was born in Shanghai China in 1962, immigrating to Australia in 1989 on a student visa following the June 4, 1989 uprising in Tiananmen Square in Beijing.
He obtained permanent residency in Australia in 1993 and became an Australian citizen in 1998.
In Shanghai, Zhou completed his studies at the Shanghai Mechanic Engineering University where he graduated with a bachelor’s degree in mechanical engineering.
Since graduation and immigrating to Australia, he has worked principally in the area of building and construction.
Zhou built the five-bedroom house as the owner-builder in 2006.
The warrant of seizure was issued November 2009.
Zhou owed Guan Feng Wu a judgment debt of over $100,000, with the debt unpaid by Zhou for almost three years.
In November 2008 Wu had commenced legal proceedings against Zhou in the Magistrates’ Court of Victoria at Sunshine, claiming the amount of CNY440,000.00 (approximately AUD $96,660.00), being monies claimed to be outstanding arising from a loan agreement entered into between the two in 2006.
The property was also subject to a mortgage in favour of Suncorp for $457,345.50.
Suncorp took no part in the trial.
The property was also subject to a charge in the sum of $7,691.10 for council rates.
At the time of the auction, the Valuer-General for the Victoria valued the property to be worth approximately $630,000 following a kerbside valuation.
The valuation was supplied to the sheriff prior to the purported sale.
A first public auction of theproperty was conducted by the sheriff on July 15, 2010.
At the time of the first auction there was $452,691.70 outstanding to the mortgagee Suncorp and $5,692.54 owing to the Maribynong City Council for arrears of rates.
It left an equity for Zhou in the sum of $171,615.76, which was set as the “sheriff’s reserve” for the property.
The first auction was conducted in July 2010, however no bids were received by the sheriff and the property was passed in.
On application by the sheriff, orders were then made in October 2010 by Associate Justice Nemeer Mukhtar permitting the sheriff to sell the property without a reserve.
Subject to paragraph 3 there had to be leave to the sheriff to conduct a sale of the property (in exercise of powers under a warrant of seizure and sale filed November 9, 2009) without a reserve price provided that such leave does not thereby derogate from, or relieve the Sheriff of a duty at law to the owner of the land when exercising a power of sale.
There be leave to the owner of the property to notify the plaintiff of an intention to discharge the order in paragraph 1, and apply to this court for a discharge of that order. Unless such an application is filed and served within 10 days after the date of the service of this order, the order will take effect upon the plaintiff’s solicitor giving to the sheriff evidence of service of this order and the absence of any application to discharge it.
Justice Peter Vickery noted that it was “important to note that, although the Order of Mukhtar AsJ expressly authorised the sheriff to conduct a sale of the property without a reserve price, this was not an unfettered authority to sell at any price which could be obtained.
“The order expressly directed that any such sale must be conducted in a manner which did not “derogate from, or relieve the sheriff of a duty at law to the owner of the land when exercising power of sale”, Vickery noted.
After the October hearing Zhou neither satisfied the judgment nor took any step to prevent the sale before it occurred.
By the time of the second auction in December 2010 there was an equity for Zhou of $164,963, which was set as the “sheriff’s reserve” for the property as shown on the “Real Estate Auction Sheet”, except that the words “NO RESERVE” were also included beside the stated reserve.
The second auction was conducted at the sheriff’s premises at 444 Swanston Street, Carlton, by the real property sales officer of the sheriff, Kelvin Griffin.
The auction was overseen by another officer of the sheriff.
Two potential bidders attended the second auction, namely the ultimate purchaser, Ronald Kousal, and one other person.
Vickery noted Kousal was an experienced purchaser of property at public auctions conducted by the sheriff.
“Every Thursday or soon thereafter, he was accustomed to review the Government Gazette to search for advertised sheriff auctions of land.
“One week or so before the auction day, he would enquire at the Sheriff’s Office as to whether the advertised auction was scheduled to proceed.
“If so, he would assess the land, its value, encumbrances, money owed on the property and he would set himself a budget for the purchase.
“Prior to the auction in issue in this proceeding, Kousal had previously bought land from the sheriff and had attended seven or eight unreserved sheriff auctions.”
Prior to the second auction, Kousal had never been met or had any dealings with either Zhou or Wu, and knew nothing at all of their personal, social or financial circumstances.
The events from the second auction on 16 December 2010 proceeded as follows:
After reading aloud the Government Gazette advertisement for the sale of the property and the terms of the auction, Mr Griffin advised the attendees that $457,345.50 was owed to Suncorp under a registered mortgage on the Property and that $7,691.10 was owed to the Maribyrnong Council for arrears on rates.
He invited bids for Zhou’s remaining interest in the Property.
Kousal bid $100.
Another bidder bid $200.
Kousal then bid $1,000.
There being no further bids, Griffin knocked the property down to Kousal.
Immediately following the second auction Kousal paid Griffin the $1,000 and received a receipt and a copy of the transfer.
Griffin later sent Kousal a copy of the transfer of the Property signed on behalf of the sheriff.
On December 21, 2010, Kousal wrote to Zhou and asked him his intentions in relation to remaining in possession of the property.
He received no reply.
On January 5, 2011, Kousal was present during a phone call between a Mandarin Chinese-speaking interpreter and Zhou.
Kousal instructed the interpreter to advise Zhou that he had bought the property from the sheriff.
The interpreter told Kousal that Zhou didn’t want anything to do with him and that he should leave him alone.
By summons dated May 2011, Kousal commenced legal proceedings against Suncorp seeking orders pursuant to s 116(3)(a) of the Transfer of Land Act 1958 (Vic) (the “Transfer of Land Act”) that it deliver up the duplicate Certificate of Title for the property, so that Kousal could register his interest in the Property with the Registrar of Titles.
In June 2011, Kousal obtained orders that Suncorp “produce the duplicate certificate of title [for the property] to the [the Registrar of Titles] for the purpose of enabling [Kousal] as transferee to lodge a transfer of that land from the [sheriff] as transferor under the [Warrant]”.
In July 2011, Zhou in the present proceedings, sought and obtained orders from the court that restrained the registering of any transfer of the property.
Zhou won the case on May 5, 2012.
 
 
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jchancellor-FAypfDUnLy

Countdown to the $1,000 Braybrook sheriff auction - and its overturning by the Supreme Court  

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The Victorian sheriff conducted himself honestly and conscientiously in<a target="_blank" href="https://www.propertyobserver.com.au/residential/court-overturns-%241000-sheriff-sale-of-braybrook-home-valued-at-%24630000/2012050954635"> carrying out the $1,000 auction of a seized Braybrook house</a>, but found himself in a very difficult position under the Sheriff Act, Justice Peter Vickery of the Supreme Court ruled today.
It was because the precise nature of the duties of the sheriff had not been authoritatively defined following the abolition of the writ of fi fa.
But Vickery ruled the sale price was so unfair that the sheriff did not act reasonably in accepting it.
“Whatever may be the inclination of the court to support a public officer in the unprecedented circumstances of this case, the sale as a matter of law cannot be allowed to stand,” it was ruled.
“Because the sale was not one which was properly concluded under Division 5 of the Sheriff Act for the reasons which have been explained, s 25(1) of the Sheriff Act cannot apply and [buyer Ronald] Kousal does not gain good title to the property under it.” 
He said <a target="_blank" href="https://www.propertyobserver.com.au/residential/countdown-to-the-%241000-braybrook-sheriff-auction-and-its-overturning-by-the-supreme-court/2012051054642">the auction</a> had not been conducted in accordance with the common law or the Sheriff Act.
“As to the breach of the common law duty, at the time of the second auction the value of the equity in the property was approximately $165,000.
“This was known to the sheriff’s officer conducting the sale, who announced the amounts owing on the property to the bidders prior to commencing the auction.
“The sheriff’s officer also had in his possession the kerb-side valuation of the Valuer General placing the market value of the property at $630,000.
“There was some $465,000 owing on the property.
“Nevertheless, it was knocked down to the highest bidder on the day, Mr Kousal, for $1,000.
“This price bears no relationship to the evident market value of the property or the [owner Zhiping] Zhou’s equity in the sum of approximately $165,000 which was put up for sale.
“In my opinion, and after taking into account all of the relevant factors to which I have referred, this price was so unfair that the sheriff did not act reasonably in accepting it.
“The transaction cannot remain in place at common law.”
“Although the administrative arrangements as to the employment of the sheriff changed following the introduction of the Sheriff Act in 2010, his status as an officer of the Supreme Court for the purpose of enforcing its warrants of seizure and sale and other such warrants issued out of the court did not change.
“For these purposes the sheriff remains an officer of the court.”
Vickery outlined the principles of common law to be applied to a sheriff’s sale as:
(a) The sheriff is bound to act reasonably in the interests of both the judgment creditor and the judgement debtor in order to obtain a fair price;
(b) A fair price is not necessarily the market value, for it is well recognised that compulsory sales under legal process rarely bring the full value of the property sold.
In making a determination as to the adequacy of the highest bid, the sheriff is entitled to take into account that the sale, being a compulsory process, is usually one at which a full and fair market value for the property will not be expected and some allowance must be made for low prices being obtained at such sales;
(c) In determining the fair price in all the circumstances, matters from the prospective buyer’s perspective must be weighed. Such factors may include: the fact that buyers must be prepared to complete their purchases on the spot; the fact that buyers, particularly in the case of real estate, will not have usually have had the opportunity to inspect the property sold (at least internally); the fact that the title to the property may be encumbered or it may be physically occupied, giving rise to risks for the purchaser in acquiring clear title or rights of occupation without undue expense or delay; and other such risks which may be attendant for the purchaser on the purchase;
(d) Another factor to be weighed in the balance will be the amount, if any, obtained for the judgment creditor after the expenses of the sale have been
deducted;
(e) If it is apparent to the sheriff that in fact or in all probability the highest bid received is so far below the true value of the property offered for sale that he would be acting unreasonably if he was to accept it, the sheriff should not accept the bid and pass in the property;
(f) if the sheriff breaches his common law duty and sells property at a price which, in all the circumstances is unfair, the following consequences may follow: (i) the transaction may be set aside.54 On setting the transaction aside, no damages would arise in the usual case for which the sheriff could be liable; or (ii) where the price obtained on the highest bid is so low that it could be said that there was no sale at all, or that it was not a real sale or that it was in fact illusory,56 there would be no sale within s 24 of the Sheriff Act, and therefore no sale within Division 5 with the result that the immunity of the sheriff from a suit in damages conferred by s 25 would be removed. There would not in truth be a “sale of property under this Division” for the purposes of s 25(2). In these circumstances, if the transaction is not set aside and loss and damage is in fact sustained, the sheriff could be exposed to an award of damages at common law.
The office in Victoria can be traced back to between 1835 and 1851, when deputy sheriffs were situated in what was to become the colony of Victoria in the Port Phillip district.
The appointment of deputy sheriffs for the district was made by the Crown and confirmed by the governor of New South Wales.
The Victorian Sheriff's Office was created following separation of the Port Phillip District from the colony of New South Wales in 1851.
The first sheriff appointed in Victoria was Claude Farie, who was appointed by Queen Victoria in January 1852.
He served until 1870 and held his office under the Crown.
On 1 January 2010 the Sheriff Act 2009 came into force and commenced operation.
Justice Vickery noted prior decisions where the Sheriff could be held liable in respect of sales conducted at an undervalue including a case determined in England in 1814 during the Napoleonic Wars - Keightley v Birch &amp; Anor where Lord Ellenborough observed: "If a chattel worth £1,000 is put up to sale, and only £5 is bid for it, the sheriff ought not to part with it for that sum; and he may fairly say that it remains in his hands for want of a buyer. He ought to wait for a venditioni exponas, the meaning of which is “sell for the best price you can obtain.”
There was also a Victorian gold rush case decided in 1871, Smith v Colles, where Barry ACJ took a similar approach in relation to property consisting of mining plant sold by the Sheriff for £10 when its market value was £240 based onwithin three weeks it was resold by the purchaser for £240.
 
 
 
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Six rules for sheriff's property seizure auctions determined by Victorian Supreme Court

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Like shoppers and tourists, corporate businesses are moving in on major retail centres at the price of local parking spots.
Demand from corporate tenants who want to relocate into glamorous shopping centres is on the rise, and office buildings are being planned in response.
According to Colliers International, during the past 12 months nearly 10,000 square metres of office space has been leased in such complexes, with 1,000 square metres in Doncaster and 1,500 square metres in Knox being leased to corporate clients. In the massive $1 billion-plus Chadstone complex 1,500 square metres was leased as office space, and Victoria Gardens has attracted corporate tenants across 5,000 square metres.
A proposed office tower adjoining Chadstone shopping centre will be developed over a well-used parking and landscaped area.
“While dozens of parking places will be lost, the developer is putting in two levels of basement parking to service the offices,” says Colliers associate director of leasing Travis Myerscough.
The basement parking will be leased to office tenants, and the notion of making it available to the public on weekends has been suggested.
“It has been proposed that car park be used by shoppers on the weekend, but that is still being negotiated,” says Myerscough.
So far in Chadstone corporate tenants include medical research group Celletis, while Fleet Partners and Nova Radio are in Victorian Gardens.
“This trend of medium to large corporates moving into retail centres is gaining momentum, as they want to attract and retain staff by have great amenities at the doorstep,” Myerscough says.
Myerscough says more than 20,000 square metres of office space will be released to the market by late 2013.
By 2013 Chadstone, where retailers made $1.28 million in sales in 2010, will have a hotel and an office component that will account for between 10 and 15% of the entire complex. It is already notoriously hard to find a parking space in Chadstone at peak shopping times.
The trend is being mirrored throughout major shopping centres across Australia, says Colliers national director of retail valuation Stephen Andrew.
"Shopping centres are evolving as much more than a place to shop. Nationally, we continue to see the redevelopment of major regional shopping centres to provide a greater blend of retail, leisure and commercial activities to meet changing customer demands,” he says.
 
 
 
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andreadixon-oif3j7eKne

Corporate offices replacing customer parking at shopping centres as Chadstone joins the trend

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Vendors no longer have to offer as deep discounts as last year to secure sales of their properties, new data released by Australian Property Monitors reveals.
The amount of discounting required peaked in winter and/or spring in mid- to late 2011, according to APM, with the most discounting required between June and November last year in all capitals.
In Sydney, Brisbane, Perth, Darwin and Hobart discounting has reached its lowest level in a year in early 2012, according to APM researcher Clinton McNabb. However, there has been a slight rise in required discounting in all but two capitals – Melbourne and Canberra. 
Melbourne, Adelaide and Canberra vendors now offer less of a discount than they did in mid-2011, but more of a price reduction than in April last year. 
Brisbane vendors have consistently had to offer the deepest discounts to secure sales, except for in July last year, when Perth vendors offered discounts of 10.4%, compared with Brisbane's 10.3%. 
Click to enlarge
<a href="/images/stories/apmmay10.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/apmmay10thumb.gif"></a>
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cknowlton-QnEa6ntUYP

Sunnier property market outlook across Australia as vendor discounting peaked in mid-2011: APM

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A Melbourne man has won his legal proceedings to reverse the sheriff’s extraordinary $1,000 sale of his six-bedroom Braybrook home.
Owner-builder Zhiping Zhou's imposing two-storey brick house, which was seized by the sheriff, had an estimated value of $630,000, but sold at the Swanston Street, Carlton sheriff's room auction in December 2010 without a reserve price. <a target="_blank" href="https://www.propertyobserver.com.au/residential/countdown-to-the-%241000-braybrook-sheriff-auction-and-its-overturning-by-the-supreme-court/2012051054642">There had been an earlier no-bid sheriff's auction</a> when there was a $171,000 reserve which represented Zhou's equity in the property after his debts were paid.
The case into the second auction which had a court decided no-reserve sale price was heard in February, with Justice Peter Vickery delivering his judgement in the Victoria Supreme Court Commercial and Equity this morning.
"The purported sale is set aside," Vickery ruled citing equity laws dating back to the Middle Ages.
"It is important to note that, although the order of Associate Justice Mukhtar expressly authorised the sheriff to conduct a sale of the property without a reserve price, this was not an unfettered authority to sell at any price which could be obtained. The order expressly directed that any such sale must be conducted in a manner which did not “derogate from, or relieve the sheriff of a duty at law to the owner of the land when exercising power of sale”, <a target="_blank" href="https://www.propertyobserver.com.au/residential/six-rules-for-sheriff-s-property-seizure-auctions-determined-by-victorian-supreme-court/2012051054639">Justice Vickery noted</a>.
Ronald Kousal, who was the highest bidder for the Wirraway Avenue home after beating off a $200 bidder, was taken to court by the aggrieved foreclosed house owner.
Justice Vickery ruled he did not regard Kousal’s conduct in seeking to enforce the sale of Zhou’s "as unconscionable."
Anthony Strahan, for the sheriff, <a target="_blank" href="https://www.propertyobserver.com.au/auctions/sheriff-selling-%24630000-braybrook-house-for-%241000-had-duty-to-obtain-fair-price-court-told/2012021053330">had argued the Sheriff's Act made the office ''immune'' from being held responsible</a> for the outcome of such an auction, and the buyer must be protected.
<a target="_blank" href="https://www.propertyobserver.com.au/auctions/sheriff-selling-%24630000-braybrook-house-for-%241000-had-duty-to-obtain-fair-price-court-told/2012021053330">Zhou's lawyers told the court </a>the sale was "absurd", arguing the judge ought to reverse the sale and to find the sheriff in breach of duty.
"[The sale is] so short of the mark it's not a real sale," barrister Paul Hayes told the court in February.
He said it was hard to imagine lawmakers had intended for people like Zhou to lose out so badly.
Zhou was “vulnerable to the sheriff properly exercising his duty under law” according to his lawyers.
“He was exceptionally vulnerable to the price accepted by the sheriff,” barrister Hayes said during the second day of the hearing. The judge was asked to consider invalidating the sale and or awarding damages.
The property had remained in Zhou’s registered name, according to a title search, although there were warrants of claim registered on title.
<a target="_blank" href="https://www.propertyobserver.com.au/auctions/melbourne-vendor-goes-to-court-over-%241000-no-reserve-sheriff-s-auction-of-his-braybrook-home/2012020953319">The man who bought the home is also being accused of taking advantage of Zhou</a>, however his lawyer told the court the sale was legal and legally it could have been sold for one cent.
The property had been briefly listed in 2007 through Barry Plant Sunshine, according to the Australian Property Monitors auction database. It was then listed with different agents in June 2010 with $650,000-plus hopes for its slightly postponed July 2010 auction, according to the APM report on the property.
There was a subsequent $660,000 auction offer, but it fell short of the $750,000 reserve price when listed through Burnham Real Estate.
There was $465,000 owing on the property.
The block cost $170,000 in 2003.
Lawyers for Zhou highlighted submissions in the buyer’s affidavit that he would search the Government Gazette every Thursday looking for properties coming up for auction.
<img src="/images/stories/sheriff.png">
A week before the auction he would contact the sheriff’s office to find out if the auction was going ahead and following a review of the assets, land and any encumbrances set a budget for purchase.
From 2000 Zhou has bought and sold property at least 10 times.
 
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Court overturns $1,000 sheriff sale of Braybrook home valued at $630,000  

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Offers are still being considered on Falls Retreat, home to the Australian Tennis Academy, in the Oxford Falls Valley on Sydney’s north shore.
It was on the market last month after being held by the same family for almost three decades.
Colliers International’s Henry Burke and Brian McInally marketed the Oxford Falls Road property, which consists of 12 motel-style overnight rooms, 12 synthetic grassed courts, a function centre with liquor licence, and pool and barbecue facilities for members and guests.
Burke says there is potential for expansion of one of the very few multiple use recreational, commercial and social destinations in Sydney.
The agents fielded interest from sport and recreation business owners and hospitality function centre owners. Since the expressions of interest closed last Thursday there are three parties still actively looking at the property.
But it will now be showcased in Hong Kong and Beijing later this month expressly to the Chinese tennis fraternity.
The property offered for the first time in 27 years. Kevin and Glenys Collins formed the Australian Tennis Academy in 1985 to offer a high-quality tennis venue and top-quality tennis coaching under the stewardship of Ross Jones.
In 1991 the Collins couple added the accommodation rooms and a function centre.
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Ball in vendors' court as offers considered for Australian Tennis Academy home Falls Retreat 

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The Top Ryde City shopping centre in Sydney’s northern suburbs is expected to be marketed shortly after receivers McGrathNicol sought sales campaign proposals from estate agencies.
The centre has been in the hands of external administrators since the company behind the redevelopment, Bevillesta, entered voluntary administration in February 2011 after being unable to repay debts.
Numerous potential buyers have run a ruler over the property since it fell into administration, with the retail centre almost sold in July 2010 to a GPT-managed fund.
Bevillesta appointed BRI Ferrier as administrator, with creditors to the company claiming they were owed about $900 million. It included a syndicate of five banks owed more than $600 million, according to Fairfax Media.
Top Ryde City covers 78,215 square metres of retail space and has about 3,000 undercover car parking spaces. It includes major national retailers, a cinema complex and more than 250 speciality stores.
 
 
 
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Top Ryde City shopping centre about to hit the market as receivers seek estate agents

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Australia could face a balance of payments crisis if a sharp slow-down in China results in a slump in export earnings at the same time that imports of capital goods soar as miners hurry to finish their major investment projects. According to the latest budget projections, Australia’s current account deficit is expected to swell to 4.75% of GDP in 2012-13, and to 6% of GDP the following year.  According to Treasury, the deterioration reflects the fact that the trade balance is likely to fall into deficit as miners step up their imports of foreign-made investment equipment while export earnings sag as a result of lower commodity prices. At the same time, Treasury expects that Australian consumers will take advantage of the strong Australian dollar by spending more on overseas travel and imported consumer goods. Import volumes, it says, are likely to rise by 7.5% in 2012-13 and by 5.5% in 2013-14. Even though commodity prices appear to have peaked in the third quarter of 2011, Treasury expects that our export earnings will remain relatively buoyant in the next two years, due to continuing strong demand from China and India. Australia’s coal and iron ore exports are likely to rise, following major expansions in resource projects in Western Australia and along the east coast, while rural exports are expected to remain at historically high levels. Still, the strength of the Australian dollar is proving to be a handicap for exporters of elaborately transformed manufactured goods, and for firms that sell services – such as tourism and education-related travel – to foreigners. But Treasury’s forecasts are based on the assumption that China’s economic growth will remain robust, even though its largest export market, the European Union, is slumping deeper into recession. Treasury is forecasting that China will notch up a growth rate of a little over 8% a year for the next three years. If China’s growth rate stumbles, we could see an alarming blow-out in Australia’s current account deficit. The problem is that the extremely long lead times involved in developing major resources projects means mining companies are committed to spending huge amounts of money buying foreign-made capital goods and equipment. As Treasury itself notes, despite the continued uncertainty over the global economy, “the resources sector has committed to, or commenced construction on, over half of the estimated $456 billion resources investment pipeline.”  Even if a sharp drop in Chinese demand caused global commodity prices to slump, it would be difficult for the large mining companies to pull out of major investment projects now under way. As a result, miners will find it difficult to scale back their purchases of foreign-made capital goods and equipment, which will mean that our import bill will continue to soar. A slump in commodity prices, however, would see our export earnings collapse. Already Treasury is expecting that increased global supply will weigh on commodity prices in the next two years, and that our terms of trade (the relation between export and import prices) will decline by 5.25% in 2012-13 and 3.25% in 2013-14. The risk is if Treasury’s assumptions about China’s growth prove to be overly optimistic. If the brutish combination of surging imports and a collapse in export earnings were to push our current account deficit to, say, 8 or 9% of GDP, we could see international investors become very anxious about lending to Australia. In that situation, our banks could find it much harder to raise money in offshore markets, and would likely have to pay higher interest rates to access funding. Meanwhile, the Australian dollar would collapse, pushing up the cost of servicing our foreign debt. And it would probably take some time before Australia’s tourism, education and manufacturing sectors felt the benefit of the lower exchange rate. Australia would be caught in a current account deficit trap, unable to curb its voracious appetite for imports, despite a slump in export earnings.
This article originally appeared on <a href="https://www.businessspectator.com.au/" target="_blank">Business Spectator.</a>
 
 
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kmaley-9YUCXqEai5

If China's economy stumbles, Australia's deficit will soar: Karen Maley

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The 2012-13 federal budget provides little joy for the property industry in the year ahead.
The focus of returning the budget to surplus is a responsible overall direction to take, at such an uncertain time for global sovereign finances.  It will put Australia into a strong position for future budgets, especially compared to other countries.  But the budget provides little short-term confidence and support for business or households, and that’s what is needed at the present time.
But the drivers of real estate demand are presently weak and this budget does little to strenghen them for the long term.  In that sense, this budget is a short term fix, not a reforming budget aimed at stimulating economic or property driver growth.
The retail and housing sectors 
The household sector in particular has little confidence neither to spend in discretionary areas nor to make major commitments, such as buying or building new housing.  Retail is a big employer and housing construction also has significant impacts across the wider economy.  These areas of the economy are under-performing largely due to a lack of confidence, and the budget does little to lift household confidence and drive these bigger commitments. 
The “cash splash” announced in the budget will not provide the sustainable lift in retail spending the sector needs.  Cutting the corporate tax rate would have had a more significant and sustainable impact on business investment, employment growth and hence retail spending than simply giving money away as a “one-off” solution.  While the budget may provide a short-term lift in retail spending in specific areas, such as education, it is not the structural shift the sector needs to get it moving and keep it growing at more reasonable rates. 
Employment generation 
Like households, business is reluctant to commit to employing further staff and these is resulting in weak employment growth, and in turn, demand for office space.  The budget does little in the year ahead to improve business confidence and profitability, meaning there is little chance of stronger employment growth in the short term.  Cutting the corporate tax rate as originally promised would have helped in this area. 
Infrastructure and city building 
The expenditure side of the budget announced last night is narrowly focussed and of little direct support to the property industry.  The area of “city building” in particular is a missed opportunity in this budget.  Australia needs to provide for future urban growth, but there’s little in the budget for this, while there’s a massive need in all Australian urban areas to support the development of more efficient and liveable cities.  Now would be the ideal time to both support the construction industry outside the resources states and provide for longer-term growth through greater commitment to urban infrastructure. 
Only three infrastructure-related projects were announced for funding in the budget, despite the massive needs in this area.  Federal funding for two of these, the duplication of the Pacific Highway and the improvement to rail networks through Adelaide will only proceed if the relevant state government matches the funding.  This is unfair.  These projects are of national significance and will help link the national transport network and should therefore be predominantly federal funded.  The matching of funding between the federal and state levels also risks distorting local infrastructure funding priorities in an environment of limited resources.  The third area of infrastructure funding commitment in the budget is to establish a government agency for the development of the Moorebank intermodal facility.  It is aimed at establishing another government agency and will not fund the construction of this much needed facility; it will not bring the construction of the facility much closer to operational reality. 
Property-related taxes 
One of the few bright spots in the property industry in recent years is the interest and activity from foreign investors.  Part of this interest has been stimulated by the potential to use an MIT structure which amploys a competitive witholding tax rate of 7.5%.  This rate will now be increased to 15% under the budget announced yesterday, removing one of the incentives to invest in Australia compared to other global destinations. 
This is a great pity because the low tax rate was only just getting established, being promoted offshore and used in setting up transactions and portfolio investments.  Last year foreign investors purchased about 30% of investment grade properties in Australia.  Without that, the local market would have looked very thin.
The one thing foreign investors always tell us is they like the stability in Government and law in Australia, especially compared to other parts of the world.  Unfortunately, Australia is not looking as stable and attractive as an investment destination anymore after the quick change to this attractive tax rate. 
Addressing the two-track economy 
The economies of the non-resources based states of New South Wales and Victoria are under-performing at present.  The budget provided an opportunity to specifically address this through re-directing geographically specific spending, such as on infrastructure.
This issue was not specifically addressed in the budget and the growth imbalances in the country will further divide property market performance in the short to medium term.
Kevin Stanley is executive director of global research and consulting for the Asia Pacific region at <a target="_blank" title="CBRE" href="https://www.cbre.com.au/EN/">CBRE</a>.
 
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kstanley-sW5KFjskLN

Federal budget 2012: Little joy in budget for property industry

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A co-ordinated approach from government at all levels is necessary to support the housing market and the broader economy, and the need to invest in infrastructure is a critical component of this.
 
While the global economic picture dictates the need for a conservative budget, spending cuts that aren’t accompanied by a forward-thinking plan will serve only to postpone, and possibly cause further damage, to an already flat housing market. 
It’s not just the obvious sectors like real estate agents and tradespeople that are being negatively affected by such an approach. A strong residential property sector has considerable reach down the supply chain and a commitment to delivering new infrastructure is one way to influence confidence and improve activity in the housing market, which has an important flow-on effect. 
The federal government’s decision to abandon its support of the north-west rail link, despite its capacity to provide funding, is particularly disappointing given current economic conditions. 
A co-ordinated approach involving the delivery of appropriate infrastructure, encouraging developers in the current business environment and supporting affordability is required if the housing market is to emerge from a stagnant state. 
Ignoring the infrastructure component represents a missed opportunity for the housing market and the health of the broader economy as well.
Leanne Pilkington is general manager of<a target="_blank" title="Laing + Simmons" href="https://www.laingsimmons.com.au/"> Laing + Simmons</a>
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