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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

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Number of landlords with more than one investment property increased 5% from 2008-09 to 2009-10: ATO

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The Australian Bureau of Statistics (ABS) recently released demographic data for September 2011 which showed that population growth has stabilised over the year after falling for much of the past three years.
Over the 12 months to September 2011, Australia’s population increased by almost 320,000 persons (319,632). This is an improvement compared to the recent low of 312,016 over the 12 months to March 2011, however, it is much lower than the peak of 467,314 over the 12 months to December 2008. On the first graph, the dotted line represents average population growth over the past 30 years and the current rate of growth remains well above average.
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Across the states, Victoria has recorded the greatest numerical increase in population with almost 83,000 new residents. Population growth in Victoria, New South Wales and Queensland has accounted for 73% of the nation’s growth in population over the past year. Click to enlarge
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In percentage terms, Western Australia has been growing at a much faster rate than all other states and territories, increasing by 2.6% over the year. To put this into context, the Australian Capital Territory has been the second fastest growing region, with the population increasing by 1.9% over the year.
Over recent years, the slowdown in population growth has largely been the result of a targeted strategy to reduce overseas migration by the federal government.
Over the 12 months to September 2011 net overseas migration was 172,498 persons. Although this rate of migration is below the peaks of 315,686 persons over the 12 months to December 2008, the annual rate has been increasing over the past two quarters. Although the rate of net overseas migration has eased over the last few years it remains well above the long-term average (121,499).
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The other component of population growth is natural increase (births minus deaths) and it remains quite high despite some recent easing. Over the year, around 147,000 more persons were born than those that had passed away. Natural increase has eased slightly in recent times after peaking at 155,082 persons over the year to September 2009 however, it still remains well above the long-term average levels of around 130,000.
Over the past 12 months, natural increase has accounted for 46% of population growth compared to 54% of population growth which was due to net overseas migration. Much more recent data on long-term arrivals and departures published by the ABS suggests that the rate of overseas migration is set to increase.
Over the 12 months the January 2012, the net annual long-term arrivals was recorded at 248,530 persons, and this figure has increased by 24.6% compared with January 2011. Given this increase, we would expect that net overseas migration will increase over the coming quarters and subsequently, population growth is also likely to increase at a faster rate. The likelihood of higher rates of population growth are likely to provide some debate, especially considering that many expect the unemployment rate to increase over the coming year. Skilled overseas labour is important especially within the mining and resources sector where there are labour shortages.
Of course, higher population does bring some potential problems, as it increases the demand for housing, the need for infrastructure investment and demand for essential services. There are also environmental impacts of population growth with more demand for electricity and gas, building materials for homes and more pollution.
On the other hand, increases in population, particularly skilled working age population growth, increases the tax base and helps boost revenues for all levels of government. It also increases demand for goods and services across the economy.
Population growth is a balancing act and both sides of politics have argued that they don’t believe the record high rates of population growth recorded over 2007 and 2008 were appropriate. Given this, it will be interesting to see how much further the rate of net overseas migration increases over the coming quarters.
Cameron Kusher is senior research analyst at<a href="https://www.rpdata.com.au/" target="_blank"> RP Data</a>.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
 
 
 
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ckusher-ujnxiKuFQs

Australia's population growth balancing act: RP Data's Cameron Kusher

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Amid all the interest rate commentary China has gone off the agenda a bit when comes to the likely impact on our economic future.
It was most noteworthy that Chinese buyers dominated the list of property transactions approved by the Foreign Investment Review Board, with some 5,000 approvals, mostly residential, amid the 9,770 approvals given to property acquisitions during 2010-11 year, according to the Foreign Investment Review Board (FIRB) annual report.
Just last week a Chinese mining tycoon and Australian citizen, William Han, chairman of China-based White Horse Australia Holdings Pty Ltd, <a href="https://www.propertyobserver.com.au/leisure/chinese-mining-tycoon-beats-clive-palmer-to-acquire-lindeman-island-with-plans-to-redevelop/2012042554429" target="_blank">beat Clive Palmer to acquire Lindeman Island for around $12 million</a>.
Cici Dong, head of the Asia-Pacific desk at Savills, says during the recent three-day Beijing Luxury Properties Showcase her agency concluded several sales with Chinese investors of vineyards in the Bordeaux region.
She says while there has been growing interest in the luxury asset, the real vineyard boom is still to come.
Apparently around 20 French chateaux have been bought by Chinese businessmen and even a government-owned company, in the last five years, Dong told the China Daily last month
She explained that for Chinese buyers, owning a French vineyard is a status symbol and sign of "good taste". And Bordeaux is still considered to be the best wine location.
That hasn’t stopped considerable Chinese investment in Australian vineyards, especially the NSW Hunter Valley, of course.
The China Daily notes Chinese investors are believed to have bought six Hunter Valley wineries last year, with several more in the pipeline.
No wonder Andrew Margan, president of the Hunter Valley Vineyard Association, told ABC news recently that the association was happy for fresh investment from overseas, as the wine industry in Australia was "at the bottom of the cycle”.
As we watch any signs of Chinese buyers pulling back, Westpac reported today that the luxury behemoth LVMH is reporting its mainland China sales growing at a slower rate than its sales elsewhere across the world.
But it’s not suggested that China’s uber-wealthy have suddenly lost their taste for conspicuous consumption, as it instead points to the price gap between luxury goods purchased on the mainland and elsewhere is considerable due to a VAT (17%) and a luxury tax (30%).
So China’s elites are simply shopping abroad and swelling luxury sales in that way.
Elsewhere Westpac did note the industrial bellwether Caterpillar has indicated that Chinese demand for its construction equipment has been soft of late, making it a further casualty of the Chinese government-sought slowdown.
 
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jchancellor-FAypfDUnLy

China’s wealthy are seeking luxury acquisitions abroad, particularly vineyards

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So we have a bunch of house price data out today. The ABS’s quarterly median detached house price index, which was published at 11.30am this morning, claims that capital city prices across Australia fell 1.1% in the March quarter. Confusingly, Australian Property Monitors (APM) reported a 0.9% increase in detached house prices over same period (but with a notably smaller +0.1% rise in the price of units). And APM and the ABS apparently use similar “stratified median” index methodologies.
In contrast, RP Data-Rismark have recently launched a radically different, and much more sophisticated, “hedonic” house price index technique that tracks changes in the value of the overall housing “stock” rather than simply the transactional sales “flows”. Only about 5% to 6% of the housing stock turns over each year, and these transactions can be an imperfect representation of the 95% of homes that do not trade.
RP Data-Rismark’s eight capital city “all dwellings” index, which includes both houses and units, registered a flat (actually up slightly) result over the first three months of 2012. Yet when we look at the detached house sub-series values declined by 0.1% over this period (units were up 0.9%).
Aggregating across the three major indices—with one up, one down, and one flat—one might reasonably conclude that home values were mostly unchanged during the quarter. This makes sense given that the RBA’s two rate cuts in November and December arguably helped galvanise an improvement in housing conditions over the first quarter of 2012.
A crucial rider to this is the fact that the banks have over February and April taken 50% to 60% of the December rate cut back. Beyond reducing the stimulus that the RBA’s rate relief would have otherwise injected into the economy, these independent pricing decisions by the banks—justified or not—have undoubtedly created substantial confusion in the minds of consumers in respect of the future level and direction of lending rates.
Today RP Data-Rismark also reported their results for the month of April. On a month-on-month raw basis, dwelling values across Australia’s eight capital cities declined by 0.8%. This movement is highlighted in the first chart below, which shows the daily index changes over the month of April. The second chart stretches this data back to the start of 2011 using a one-week moving average.
Click to enlarge
<a href="/images/stories/may11.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/may11thumb.gif"></a>
Click to enlarge
<a href="/images/stories/may12.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/may12thumb.gif"></a>
What is especially interesting is that 100% of the decline experienced in April occurred in the second half of the month. Whereas over the first 14 days of April Aussie home values followed on from the trend set in February and March, yielding a small capital gain based on RP Data-Rismark’s method, they slumped by 0.85% in the second half of the month. What could have caused this dramatic intra-month change?
One possible explanation is the intervention of Easter, which caused a sharp decline in auction and private treaty sales activity over the period April 6 through 9, inclusive. This does not, however, shed light on the adverse price action that really began on April 16.
A likely more powerful explanation is the fact that one of Australia’s largest banks, ANZ, lifted all of its variable mortgage rates by six basis points on Friday, the 13th of April, which triggered a tsunami of negative media coverage and speculation that other banks would follow suit. This coincides perfectly with the inception of the price falls on Monday, April 16.
There are two other factors that probably contributed to the malaise in the last few weeks of April. The first is the fact that the RBA had said for months that it would not cut rates unless it received a “benign” inflation print when the first quarter inflation data were published on the April 24.
Christopher Joye is a leading financial economist and a director of <a href="https://www.ybr.com.au/savings/index.cfm">Yellow Brick Road Funds Management</a> and Rismark. The above article is not investment advice.
 
 
 
 
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ANZ rate rise may be behind RP-Data Rismark April house price easing: Christopher Joye

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Capital city house prices fell by 0.8% in April, according to the latest figures from RP Data and Rismark, leaving property values down by 0.7% compared with the same time last year. 
The disappointing figures offset gains made in February and March and come just a day after the Housing Industry Association revealed the number of new home sales in April fell to its lowest point in nearly 20 years. 
The results also come as the property industry all but begs the Reserve Bank for an interest rate cut when it meets this afternoon. 
The RP Data-Rismark Index showed values fell by 0.8%, although over the quarter values rose by just 0.3%. On a yearly basis, values are down by 0.7%. 
Five of the eight major capital cities saw values fall, with Hobart down 2.9%, Melbourne down 1.7% and Brisbane down 1.3%, while Sydney values fell by 0.3% as well. Darwin recorded the largest increase of 1.6%, while Canberra values rose by 0.2% as well. 
<a target="_blank" href="https://www.propertyobserver.com.au/residential/rp-data-rismark-march-1-daily-index/2012030153640">Over the year</a>, the largest decreases have been in Melbourne, down 7%, along with Brisbane down 6.4%, Hobart down 8.5%, and Adelaide down 4.2%. Sydney values have also fallen by 2.6%, along with Darwin prices, down 1.1%. 
Click to enlarge
<a href="/images/stories/rpmay1.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/rpmay1thumb.gif"></a>
No capital city has seen values increase over the past year. 
RP Data research director Tim Lawless said in a statement the two interest rate cuts in November and December are “yet to provide a sustained stimulus to the market”. 
He points out transaction volumes remain steady at about 31,000 sales each month, compared with the sales rate through 2009 when about 45,000 homes were being sold. “The slowdown in buyer activity becomes quite clear,” he said. 
Rismark managing director Ben Skilbeck also said the stability in the first quarter declined in the last two weeks of April, coinciding with the decision by ANZ to increase interest rates. 
“With inflation figures now behind us, if the Reserve Bank does cut interest rates today and then again in June … home buyers will benefit from considerable affordability gains and the housing market is likely to see improved conditions building off the stability evident in the first quarter.” 
The premium housing market remains weak. Dwelling values in the most expensive 20% of suburbs in the capital cities have fallen by 5.7% in the 12 months to March. The most affordable suburbs, however, have only seen values fall by 2.3%. 
Despite the poor price performance, rents have improved. In capital cities, the weekly rent on a detached house is up by 4.1% over the year to April and unit rents are now up by 3.7%.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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pmcstafford-pr9eMARWoN

Home prices fall 0.8% in April: RP Data-Rismark

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Three very different projects claimed the top awards from the Australian Institute of Architects Sunshine Coast Architectural Awards.
Currimundi Beach House (pictured below) near Caloundra won House of the Year for Loucas Zahos Architects, which now has a collection of nearly a dozen AIA Queensland awards.
<img src="/images/stories/currimundi.jpg">
The house is a series of different-sized pavilions that lead from living and sleeping spaces to a canvas roof over a timber deck.
“The holiday house captures the essence of being away from routine, inviting relaxation, retreat and enjoyment of the spectacular beachfront location,” noted the judging panel.
<img src="/images/stories/viridian.jpg">
Joint winners of the Gabriel Poole Award for Building of the Year are the $300 million Viridian Noosa residence and resort (pictured above) – which fell into receivership last year – by JMA Architects and the Caboolture Hub (pictured below) by Peddle Thorp and James Cubitt Architecture.
<img src="/images/stories/caboolture.jpg">
The award for the Noosa resort, which is on a former banana plantation and bounded on one side by national park, was for its third stage.
“A direct response to the complex site is reflected in individual variations in each unit, focussing on rainforest, ocean or hillside views, while maintaining privacy. The strategy for materials is site responsive with lightweight villas occupying the challenging steep hillsides. The project displays a high level of attention to planning,” the panel commented.
The joint winner, Caboolture Hub, is a stylish cultural space with an art gallery, library and learning centre beside the town square designed by the internationally acclaimed architectural firm Peddle Thorp.
“A light-filled central atrium connects the primary spaces. Moving through the building, there is delight in the transition between spaces,” says the jury commentary.
House of the Year: Currimundi Beach House by Loucas Zahos Architects. Image: Adam Sebastian West
Joint Gabriel Poole Award for Building of the Year: Viridian Noosa: Stage 3 by JMA Architects. Image: Tom Kanchanasinith
Joint Gabriel Poole Award for Building of the Year: Caboolture Hub by Peddle Thorp and James Cubitt Architects. Image: Roger D’Souza
 
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andreadixon-oif3j7eKne

Viridian Noosa resort named Sunshine Coast building of the year as receivership sales continue

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There were 1,751,679 property investors declared to the Australian Taxation Office in 2009-10, representing one in seven taxpayers.
It represented 59,235 more investors that the 2008-09 financial year.
The investors grossed $28 billion in rental income, up from the $26 billion a year earlier.
The majority of individuals – 72.8% – had an interest in just the one rental property.
And while the latest ATO revealed that Australia is still very much a nation of loss-making landlords, negative gearing claims shrunk.
Total losses on investment properties were $4.810 billion in 2009-10, or $2,746 per property investor.
It was down from $6.528 billion ($3,857 per investor) in 2008-09.
Of individuals declaring net rental income, 80% claimed rental interest deductions.
For the 2009–10 income year, 63.4% of individuals with net rental income reported a taxable loss (net rental income less than zero) from their rental property. This equated to 1,110,922 investors.
Of these negatively geared investors, nearly three-quarters earned (total income) less than $80,000 in 2009-10, and the average loss was $9,132 per negatively geared investor, or $176 per week.
 
 
 
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One in seven taxpayers a landlord, with most making a loss: ATO

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Two weeks in a row now I’ve written about affordability issues seriously affecting our home-buying market – principally first-home buyers who, without some kind of family assistance to help with a deposit, often find themselves on the wrong side of the real estate ladder.
Call me a pessimist, but when it comes to Australia’s housing market, if often seems like an insurmountable problem that successive governments find “too hard” to change within their short-term outlook.  It’s not through lack of educated advice.  We’ve had the Henry Tax Review that recommended changes to negative gearing, which, as I pointed out last <a href="https://bit.ly/IIWx0X" target="_blank">week</a>, needs to be scaled down to ease inner-urban inflation.
In addition, various investigations have been made into the problem of effectively increasing affordable housing stock – such as the <a href="https://mckellinstitute.org.au/" target="_blank">McKell Institute's</a> Homes for All report.  However, they all call for changes that risk polarising opinions and shortening terms in power and as with negative gearing, pressure for policy change continually falls on deaf ears.  Therefore, instead we tend to see solutions employed to bandage over the issues rather than providing any long-term outlook.
Measures such as first-home owners’ grant, which result in quick bumps in inflation followed by fairly lengthy periods of correction, seemingly provide short-term optimism, but over the long term simply escalate the underlying issues of affordability.  Other initiatives such as the national first-home buyers’ savings scheme are worthy ideas, however it was set up in such a way that when first introduced, stringent conditions initially placed limitations on home buyers’ options, thereby deterring significant take up.  Although improvements have since been made, poor marketing and less than a 5% take-up has resulted in many banks withdrawing the option all together.
Of course, you could choose to travel outwards and live in paddock land where real estate is cheaper and houses generally bigger.  However, as numerous media reports have <a href="https://bit.ly/IIZ5MH" target="_blank">publicised</a>, the woeful lack of community facilities and long commute times to inner-urban employment centers have allegedly resulted in serious medical conditions such as obesity and depression.
OF course, all of this is only going to affect you if you’re a first-home buyer.  Second-home buyers have existing equity to assist them up the ladder, and investors sit top of the pile with generous tax incentives and an increasingly tight rental market to assist cashflow.  The Age recently <a href="https://bit.ly/IIZzCo" target="_blank">highlighted</a> the lengths some will travel to run loops around the tax system, with a proportion of investors allegedly structuring loans to divert  rental income from their investment properties directly into their “home loans,” thereby clearing the way to claim a larger slice of tax-deductible expenditure from payments on their investment loan.
There are all sorts of stories of those who try to beat the system. It wasn’t long ago we heard of stories of those illegally claiming the <a href="https://bit.ly/JGSBPH" target="_blank">first-home owners’ grant</a>.   Furthermore, Australia’s obsession with seeing housing as a model merely for investment has managed to reach such lengths that we now have a <a href="https://www.propertyobserver.com.au/residential/rp-data-rismark-march-1-daily-index/2012030153640" target="_blank">daily house price index</a> specifically modeled to be openly traded on the stock exchange, allowing punters to “bet” on short-term price movements, encouraging the continued obsession with property speculation.
Land banking is another wondrously spruiked initiative – not so bad if you’re securing an older-style house in rentable condition and enabling a tenant to live in the home until it’s either sold or developed.   However, we have no indication on numbers of inner-urban land sites purchased by investors who allow derelict property to sit vacant whie waiting for population growth to inflate the investment as the surrounding finite land gets subdivided into smaller and smaller lots.  The UK market is fast getting initiatives in place to combat this <a href="https://bit.ly/IIZLlk" target="_blank">issue</a>; however, it took significant media and people power to start the process rolling.
Recently Robert Doyle – lord mayor of Melbourne – took to the battle ramps to penalise owners of un-used, un-livable, property who allow the homes to sit<a href="https://bit.ly/IIZQ8q" target="_blank"> vacant </a> for years on end.  The owner of a derelict site in Melbourne’s CBD – the old Savoy Hotel on the corner of Bourke and Spencer streets – was approached by the council to turn the area into a playground until the site is sold.  It would enable the land to at least be used by the community until a decision has been made. Needless to say the owner turned down the proposal, preferring to let his eyesore fester. Melbourne City Council is now under pressure to employ a new rates system that will penalise the behaviour. It sounds hopeful, however hope and good intentions are easy to sell and as we all know, often seemingly hard to implement.
However, out of all the models of investment that inspire healthy, contentious debate, there is nothing quite as igniting as foreign ownership of Australian assets – and in particular, residential real estate.  In the latest annual financial report from the<a href="https://bit.ly/IJ08w2" target="_blank"> foreign investment review board</a>, we learn that in 2010-11 10,293 proposals were received, of which the majority (9,771) were approved for residential real estate.  There is a spike in the figures between 2010-11 compared with 2008-09 simply because hotly contested changes to the rules for temporary residents wishing to purchase property were relaxed by then prime minister Kevin Rudd in the previous year.  Therefore we have no idea of the 2008-09 figures, which – considering relaxation of requirements – were no doubt higher.
Despite the recent doldrums, foreign investment in residential real estate is the playground of the wealthy.  Recently a report by <a href="https://www.colliers.com.au/" target="_blank">Colliers International </a> outlined that with “an unemployment rate of 5.2%, annual GDP growth of 2.5% and higher yields for prime-grade assets, compared to other global markets’ Australia’s property market is viewed to be particularly attractive”.  <a href="https://www.cbre.com.au/" target="_blank">CBRE</a> –  “the world’s largest commercial real estate services firm” – earlier this year reported in The China Daily that “more than 1,200 apartments were either planned, being marketed or were under construction by Chinese companies in Australia in the fourth quarter of 2011”.  Accordingly, the company goes on to say: “Foreign developers made up about 30% of the Australian market last year, and China took up 9% of that – an increase over previous years.”
Asian buyers are active in various markets across the globe and principally in Australia because we possess something they don’t have in China – “freehold” laws.  In China, purchasing residential real estate not only requires large deposits as a down payment (some 40% to 50%), the laws surrounding Chinese property ensure there is no private ownership of land, only “rights” to use that land and no guarantee it won’t be whipped away by the government if so desired.   Therefore, as a sales agent from J P Dixon in a recent <a href="https://bit.ly/IJ0G4Y" target="_blank">‘China Daily’</a> report so eloquently said: “"Unlike in China, once a buyer purchases property in Australia, it's theirs forever and can be passed down from one generation to another."
When you read the requirements published by the FIRB for the purchase of established residential real estate in Australia it seems very straightforward.  For established dwellings, there must be a commitment from temporary residents to use the property as housing and if not seeking permanent residency in <country-region><place>Australia</place></country-region> at the end of their term, sell the home.  Foreign relatives may purchase on behalf of those with temporary visas under the same requirements.  Companies can also purchase established dwellings as long as the property does not sit vacant for more than six months. If so, it must be advertised and leased on the open rental market.  The application process is simple.  An online form is used and a few boxes need to be ticked requiring the purchaser to disclose intentions for the home.  As can be seen from the figures, putting aside those who withdrew applications, only 42 applications for residential real estate were rejected. Huge numbers are clearly taking advantage of the ability.
It’s interesting however to ponder how many fall through the net. As much as property has been in the doldrums of late and even accounting for our strong Aussie dollar, due to the shortage of land surrounding our capital city locations, property is viewed as a low -risk investment and a safe haven for foreign investors to “bank” their wealth.  In an economy that’s performing as well as ours in comparison to Europe and the USA, coupled with a shortage of live able desirable land plus strong population growth, the prospect of losing money in a property investment long term is a low-risk proposition.
I know from experience in my own field of work, enquiry from the foreign market – in particular Asia – is in abundance, and seeking FIRB approval seems to be a simple online  “take my word for it”,  “box-ticking” process.  For example, those who don’t employ the services of a buyers’ agent (most of whom will check if the client has a legal right to purchase for reasons of liability) will find that when purchasing established or new property – they are not asked for ID when filling in a contract, or evidence they are an Australian citizen or even permanent or temporary resident!  All that most agencies require on a real estate contract is a signature and deposit cheque for – “ideally” – 10% of the purchase price.
A solicitor or conveyancer acting on someone’s behalf is not required to check his or her viability to purchase Australian real estate. Even for those who have been approved by the FIRB  at the present time, there is seemingly no follow up process to ensure the “box-ticked” rules are being adhered to. All we are told in the FIRB financial review is the board is “moving toward a systemic series of targeted investigations of non-compliance by foreign investors.”
Therefore, at the present time, who checks if a property has been sitting vacant for six months or more?  Who establishes whether a home purchased by a temporary resident is sold when they leave the country or simply sits vacant?  In view of the numbers, ongoing regulation under the current system would require significant manpower and considering proof of ID is not a usual requirement when buyers purchase a property, keeping tabs on those who never applied for FIRB approval in the first place would likely fall through the net of observation.
Having said this, in Australia, simply having rules governing foreign investment of established residential real estate is a step ahead of other countries that have no special requirements.  In London for example, anyone can purchase property and the luxury real estate market is booming. Last year a penthouse apartment was sold in Knightsbridge for £136 million and throughout the course of 2011 over £4 billion was transacted by foreign purchasers in the London market, costing the treasury over £750 million a year. Other countries such as Canada and the USA also have no restriction.  In light of this, we should consider Australia on the front foot.
There’s no getting away the fact we sit top of the pile when it comes to issues of unaffordability in the housing market, we have falling numbers of home owners and increasing numbers getting stuck on the rental ladder.  It’s been principally caused by poor planning policies, squashing our population around the capital cities where prices are out of reach for a growing majority.  It’s one of the many reasons we’re heading into a crisis in terms of rental accommodation and public housing.  A shameful position for Australia to find itself in, with larger proportions of our population living in conditions more suited to Third World developing countries than a leader on the world stage.
It’s an issue of many parts and I see nothing wrong with encouraging foreign ownership if it’s going to help increase new supply. However we know from the figures, purchasing established real estate is the preference of the largest percentage of property investors (including foreign investors looking for capital growth) and therefore it stands to reason, to allow more first-home buyers into the market, we should be limiting competition in this sector to slow down inflation and ease supply.
Good supply of rental accommodation is always important, but let ownership of established stock be closely monitored to limit imbalance in the marketplace. If the ability to monitor foreign ownership of established stock – ensuring it’s being utilised in line with current policy - isn’t there, it’s arguable whether we should allow it in the first place?
Real estate prices rising above inflation are not good for the home buyer – only for the seller looking for a windfall, or the speculative investor.  Let’s keep housing’s primary purpose top of mind when designing policy initiatives and ensure our limited established stock and precious inner-urban land favours those who require a roof rather than a speculative investment.
Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition. She is Channel Ten’s property expert on <a href="https://bit.ly/I7SGaw">The Circle</a> and a senior consultant for <a href="https://www.nationalpropertybuyers.com.au/">National Property Buyers</a> servicing the needs of property owners Australia wide.
 
 
 
 
 
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catherinecashmore-6LXia3pPQj

Foreign investors banking wealth in Australian real estate and hurting affordability

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Commercial properties are mainly a longer-term investment, bought for their regular high yields — as well as for good capital growth over time.
Even so, an investor with some knowledge and experience can easily find properties able to be improved and then on-sold for a quick capital gain.
Typically, this would involve improving the income flow from the property, and also the security of that income — thus boosting the property's overall appeal and value.
So, what are your options?
There are various ways you can do this. But the simplest strategy would be to buy a run-down property and renovate it.
Alternatively, you might also be able to find a property with a lease that does not reflect current rental. Renegotiating that lease would lead to a higher rent, boosting the value of the property. Longer leases and better-quality tenants will always make a property worth more.
You may also come across properties that have been poorly managed. For example, a block of shops might have several vacancies, or tenants who attract little business. Making the tenancy mix more appealing tends to attract better tenants and brings in higher rents.
Simply spotting opportunities in improving neighbourhoods, such as inner-city suburbs enjoying a growing number of upmarket residents, is another good short-term strategy.
With experience, you might look to buy vacant buildings, "trick them up" and then lease them out. Using a little imagination, you can easily discover ways to completely change the use of a property — turning a warehouse into a restaurant, for example, would boost its value.
Bottom line: Timing the market is another viable short-term strategy. As with the share market, commercial property can go through periods when values may not change much, followed by periods of sharp appreciation.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://his-best.biz/" title="Chris Lang's blog" target="_blank">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
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chrislang-EQKojcgJPV

Short-term strategies for commercial property investment

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Peterborough in South Australia’s south east topped the list of the state’s localities with the highest yields for houses. There were four localities with yields over 6%.
<table width="355" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="104">
Locality
</td>
<td valign="bottom" nowrap width="107">
Median Rent ($)
</td>
<td valign="bottom" nowrap width="144">
Gross Rental Yield (%)
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="104">
<a target="_blank" href="/news">Peterborough</a>
</td>
<td valign="bottom" nowrap width="107">
140
</td>
<td valign="bottom" nowrap width="144">
8
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="104">
<a target="_blank" href="/news">Elizabeth North</a>
</td>
<td valign="bottom" nowrap width="107">
240
</td>
<td valign="bottom" nowrap width="144">
7
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="104">
<a target="_blank" href="/news">Port Pirie West</a>
</td>
<td valign="bottom" nowrap width="107">
175
</td>
<td valign="bottom" nowrap width="144">
7
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="104">
<a target="_blank" href="/news">Whyalla Norrie</a>
</td>
<td valign="bottom" nowrap width="107">
290
</td>
<td valign="bottom" nowrap width="144">
7
</td>
</tr>
</tbody></table>
Source: RP Data
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