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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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>
“Home price slide hits mortgages”, “Increased number of homes with negative equity”, “Homes with negative equity on the increase”.
Just three headlines– from many – out of last week’s press.
Most articles started with variations of the following two sentences:
“The share of homes with mortgages worth more than the property’s value increased at the end of the last year as the housing market stalled and prices turned lower. The rise suggests an increase in negative equity, where a mortgage can be worth more than the value of a house.”
The Australian Financial Review – which really should know much better – started off by saying, “About one in seven Australian homes bought in the last five years is worth less than its purchase price. This potentially has pushed owners into negative equity.”
The source of this pessimism is data-provider RP Data and its 2011 December Quarter Equity Report. This report states that slower capital growth in the last five years, combined with more recent value falls, had left 16% of households (one in six, not one in seven, by the way AFR) bought in this period below their original price.
The document goes on further to say that:
<ul>
<li>Three out of four households with negative equity bought in the last five years.</li>
</ul>
<ul>
<li>The incidence of negative equity is highest in Queensland (12% or one in eight properties) and Western Australia (8.5% or one in 12 properties). Yet curiously, the Australian average sits at 16% or one in six, according to RPData.  Hmmm.</li>
</ul>
<ul>
<li>Negative equity is worst in north Queensland at 23% (or let’s say one in every fourth home); on the Gold Coast at 19% (or one in every fifth dwelling) and at 15% (or one in every sixth home) on the Sunshine Coast.</li>
</ul>
Yet the data provider states that this analysis does not look at debt levels by owners, only the price paid for properties and their estimated current value.
Now, before I reply to this nonsense, some facts about the Australian housing market.
<ul>
<li>According to RP Data – yes, the same RP Data – Australian dwelling prices, aggregated across the eight capital cities, rose by 8% in total over the last five years. Melbourne’s values rose the most, up 18%, while Brisbane’s fared the worst, falling by 6% since early 2008. Most of this fall was over the last 12 months and due largely to last year’s flood. Dwelling prices across regional Australia, according to our own work, have risen by 29% since the GFC.</li>
</ul>
<ul>
<li>According to AFG, the average loan to value ratio across Australia, as at March this year, is 68%. Yes, that means that most new borrowers have a third share or equity in the dwelling that they are purchasing.</li>
</ul>
<ul>
<li>Over the last five years, the average Aussie household has been saving 10% of its income. This has been done by paying off mortgages ahead of schedule, rather than reducing payments in concert with declines in interest rates.</li>
</ul>
<ul>
<li>Mortgage rates, while they have risen a little bit in recent weeks, have fallen by 2.5% (often more) since the GFC.</li>
</ul>
<ul>
<li>According to the ABS, last year, on average, households in Australia held asset values of $839,000, partially offset by average liabilities of $120,000. After adjusting for CPI, our current net average household wealth of $720,000 is 30% more than in 2004.</li>
</ul>
<ul>
<li>Equity in home ownership is about $300,000 across all Australian households, and accounts for 40% of total household wealth. Owner-residents – remember, these are official statistics and they measure actual debt levels, unlike RP Data’s study – enjoy owning, on average, four-fifths (81%) of their principal place of residence. For investors, the average equity holding is 74%.</li>
</ul>
<ul>
<li>In Queensland, the average equity for owner-occupation is 78% and for investment property is 63%.</li>
</ul>
<ul>
<li>And here is the kicker – for the 25 to 34 age cohort (i.e. first-home buyers), the average equity across Australia is 46% for owner-residents and 51% for those young ones smart enough to buy an investment property. For those aged between 35 and 44, it is 65% for owner-residents and 60% for investors.</li>
</ul>
So, what’s really left to say?
Firstly, journos need to get off their behinds, stop regurgitating the media releases put in front of them and start asking questions. Do you really think that one in every six dwellings out there has negative equity and one in every four on the Gold Coast, for example, owes more on their mortgage than what the property is actually worth? I mean really, come on. And if you are too young to own something, just ask your parents what they think.
On the commute home tonight, just look out the window and ask yourself how it could possibly be true that every sixth household is in major financial stress, what with the new cars in the driveway, the kids going to private schools, the overseas holidays and likely collections of tablets, smartphones and plasma TVs in every home.
While the general coverage of the RP Data report was misleading, it does raise important issues about current loan-to-value ratios. Many first-home buyers and investors borrow 95% plus mortgage insurance, so the loans were virtually 100% of the value of the property. Over the life of a traditional home loan, the reduction of principal is minimal at the beginning of the loan term, so some buyers might owe more than what their properties are worth, if they borrowed 95% plus within the last three to five years.
To <a href="https://matusikmissive.wordpress.com/2010/03/31/the-three-stooges/" target="_blank">argue </a>for higher minimum deposits, for example, might have been a more constructive way to air this data – and something you would expect from the country’s leading financial daily – rather than just scaremongering.
Moreover, as long as those people can afford the repayments, there is little real risk to homeowners.
Finally, too many property-related studies drive while looking in the rear view mirror. Things seen in the rear view mirror always look much larger than they really are.  Few drive looking out of the windscreen. Looking forward, higher rents are finally pushing first-home buyers into the market and also attracting investors. End prices will also, in due course, rise.
To quote a recent blogger in reply to one of the said articles above:
“People with a single live brain cell would understand that if you bought a house and stay there – negative equity has the same relevance to you as an exploding star in the parallel universe.”
I hate to get all cosmic with you, but that about wraps it up.
Michael Matusik is the director of independent property advisory Matusik Property Insights. Matusik has helped over 500 new residential developments come to fruition and writes the weekly  <a title="Matusik's Missive" target="_blank" href="https://matusikmissive.wordpress.com/">Matusik's Missive</a>. The Matusik Missive is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.
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michaelmatusik-49YzLvdmNv

Negative equity talk is nonsense – and besides, it’s irrelevant 

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Apprehension from property buyers and sellers led to a notable reduction in stock and transaction volumes across Melbourne in 2011, triggering a decline in values by a reported 6%, according to the Australian Bureau of Statistics.
According to reports, fewer than 69,000 homes were sold in Melbourne, representing the lowest number of property sales in a decade and a drop of 37% from a peak of 109,000 transactions in 2007. This figure is well below the decade average of more than 90,000 transactions per annum.
Despite this, a more favourable performance is expected for the market in 2012, following improved affordability, subdued credit growth and a higher propensity of both groups to save.
In what is an encouraging sign for the market, Melbourne property showed marginal increases in median house and unit prices in the fourth quarter of 2011 to $550,000 and $455,000 respectively, after interest rate cuts in November and December.
The Reserve Bank's decision to leave cash rates unchanged in February affirms the strength of the local economy and will allow for a more moderate start to the property season.
Even with the anticipated improvement to sentiment, market performance will remain subject to sector-specific pressures in 2012. WBP Property Group’s property advisors have grouped each property type and forecasted its performance for the year ahead.
The luxury and mortgage-belt property segments were among the poorest performers in 2011, thanks to credit confidence and unemployment pressures. Although overall conditions have improved, these markets are susceptible to further decline. Properties prices of $2 million and above in areas of Stonnington and Boroondara, including Brighton and Black Rock, are predicted to fall up to 10%.
Mortgage-belt areas, such as Pakenham, Cranbourne, Melton and Clifton Springs, are set for price falls of up to 7%.
However, the news is optimistic for other areas of the established house market, which is tipped for positive growth in 2012. In particular, established houses priced at less than $2 million in well-regarded inner-suburbs such as Hawthorn, Kew, Richmond, Prahran and, slightly further afield, suburbs such as Ashburton, Camberwell, Hampton and Mentone, are expected to demonstrate growth of up to 3 to 4%.
Similarly established units and apartments situated in smaller developments in inner-city lifestyle locations will record a positive increase in growth in 2012. Areas include Armadale, Elwood and Hawthorn, where competition remains fierce for quality properties situated near Melbourne's “villages” and within a short commute of the CBD.
Conversely, modern units and established apartments in the CBD and Docklands are predicted to decline of up to 5%, with oversupply issues, lenders' pre-sale requirements and credit restrictions impacting saleability.
With discretionary spending expected to remain low in 2012, holiday properties are also predicted to continue to suffer with falls starting at five per cent and up to 10% for the leisure market.
In 2012, individual property performance will depend on location, size and aspect, particularly as buyers become increasingly selective. While current conditions remain favourable for buyers, they must be aware that not all properties represent sound investments.
Further afield, house prices in regional Victoria demonstrated overall growth of 0.8%, with a median price of $312,500. Figures for December show that Bendigo increased by 6.3% to $294,000, Ballarat increase by 3.7% to $290,000 and Geelong weakened by 2.3% to $380,000. However, be careful to do your research as much of the growth in these areas is artificial and driven by sales in new housing estates.
Tomorrow we will report on four Melbourne regions in the spotlight. 
Greville Pabst is CEO of the <a href="https://www.wbpproperty.com/" title="WBP Property Group" target="_blank">WBP Property Group</a>.
Photograph of Elwood village by <a target="_blank" href="https://www.ipostcodes.com.au/">iPostcodes.com.au</a> courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
 
 
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gpabst-nAfzC8fgsR

Melbourne housing market expected to improve in 2012, particularly in villages: WBP’s Greville Pabst

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Over-spending on real estate is a temptation often hard to resist. It’s not an emotion restricted to houses, however as property is often the most expensive purchase most make in a lifetime – usually with the intention of making a profit from the proceeds – it’s a serious enough “habit” to ponder the psychology behind it.
This past week, the media has widely publicised RP Data’s research revealing that<a target="_blank" href="/news"> the number of home owners experiencing negative equity rose to 6.11% in December 2011</a> compared with the previous quarter, which came in at 4.9%.  The report measures “baseline” equity – so in other words, it doesn’t take into account debt levels, which are based on individual circumstance and correctly observes most owners are covering interest payments on their home loans, as well as paying down the principal.
It simply assesses the difference between what your home was worth then and what it’s worth now. A full breakdown of how RP Data collates the information is described on the company’s website and to give the company its due, it leads the way in such technology, taking into account not only location and property type, but also basic attributes of each listing such as number of bedrooms and so forth. However, while this is valuable – especially when analysing broad market movements – it cannot accurately assess why two properties with similar attributes including land size and location may differ quite considerably in their sale price – did one owner overpay? To answer this, a physical inspection and subsequent assessment is needed.
RP Data uses an “automated valuation model”, which it has assessed through “blind tests” to be “within plus or minus 15% of the actual sale price”. However, while automated models are gaining traction as a credible tool even among time-poor (and arguably underpaid) valuers (some of whom seem to think a quick “drive by” is enough to attain an accurate assessment of “real value), they simply cannot be relied upon for an assumption of current market value when the majority of Australia’s real estate market is made up of home buyers whose individual circumstance and needs are subject to attributes that can only be assessed physically.
Last year the national capital city median dropped 5.5% (RP Data), which is a big enough drop to instigate a degree of concern. Yet RP Data reveals that in assessing the disparity between the previous sale price of a home and its current market value, it can be anywhere up to 15% “inaccurate”.  Even if we’re generous and assume properties entered into the system fall closer to the mark being just 10% or maybe even 5% out in terms of real selling price, it’s not a good enough analysis to make an assumption of the exact number of properties in negative equity – which is precisely what RP Data has done.
When valuing a home, certain aspects cannot be ascertained by an automated valuation model. These include physical condition of the property, the “feel” of space, natural light and most importantly, the “emotional appeal” unique to each home buyer. All of these you can only assess via a physical inspection and yet all bear a significant impact on the final sales price.
Our lives are ruled by automated systems that churn out statistics that affect not only commodity prices, interest rates and market sentiment, but also bear an increasingly controlling effect on our society and the decisions we make for ourselves and families.  We’ve had a year during which on paper, the economy looks remarkably OK. Market sentiment has been blamed for the housing downturn, however large numbers of small businesses are struggling – numbers that are somehow missed in various statistical models or eclipsed by the mining boom. This is not to dismiss the importance of transparent data; I’m simply drawing a line between where this data is useful and where it becomes an unnecessary and inaccurate intrusion affecting the paths we take.
Property is an emotional purchase where beauty is commonly in the eye of the beholder.  Spend enough time assessing a location, walking through open homes, attending auctions, gaining access to accurate sales data, and understanding the demographics of the area-specific buying market and what may drive one property to sell higher than another, and you’ll get easily within 5% accuracy on a property’s sales price 95% of the time – something an automated model cannot independently achieve.
This is one reason why buyers’ advocates are becoming an obvious option for the time-poor who don’t have the energy to do the necessary legwork I’ve described above.
We also need to bear in mind, in some states – such as Victoria – there’s still not open disclosure to the general public of “private” sales data aside from listing the street and suburb – further details revealing the exact house number are limited to licensed estate agents, therefore any detailed research in the public domain is limited to properties that have been auctioned (of course, assuming those prices are not listed as “undisclosed”).
 
<hr class="system-pagebreak">
 
However, for a home buyer, the assessment on how much to pay for a property is an emotional issue. What a house may be worth to one buyer is not an indication of what it’s worth to another. I’ve attended a surprisingly high number of auctions during which the next-door neighbour has been bidding for the home. Obviously a sale of land that has the potential to dramatically increase the value of the neighbouring house or apartment is worth significantly more than it would be to an average home buyer. Therefore overpaying and subsequently experiencing negative equity in such circumstances is consequential and should not be a concern considering the long-term benefit to the holder.
So are we really looking at 6.4% of homes in negative equity? Well, considering we’ve just been through a year with turnover has been at its lowest level for a decade and a drop in median value that has – in some areas and suburbs – eclipsed 10% or even 15%, there’s no doubt that those who purchased some three years ago at the peak of the market will be wondering if they didn’t over pay comparatively to today’s prices. Additionally, there are always those who didn’t research the market closely enough before jumping in, got carried away at auction and arguably overpaid. I see this often enough to genuinely believe that every home buyer should be diligent enough to get qualified independent advice prior to purchasing.
Other concerns on price paid include the number of off-the-plan sales, which are fast rising in number. Trying to value an unfinished product considering the considerable and temporary oversupply is hard at the best of times – therefore in answer to the question above, we can assume there is certainly a number of properties that are currently experiencing negative equity.
The report suggests there are some – albeit 1% – who have owned their homes for over 10 years that are looking at lower values. I would find this hard to perceive in any capital city area unless we’re assessing a location affected by floods or a regional location, therefore the exact breakdown of these results would need to be assessed further to draw conclusion. Therefore in short, yes, there are numbers who may be suffering a temporary period of negative equity, but to assess how many is quite simply impossible outside of a broad estimation (even “guess-timation”).
Aside from what I’d assess to be a report that is more of an assumption than accurate representation, there is a tendency to overpay for real estate that resides deeply in every home buyer’s psychological makeup. I’ve worked with many investors and owner-occupiers with budgets ranging from $300,000 to in excess of $4 million.  Without fail, all desire one step more than they can reasonably afford and the more money they have to play with, the more grandiose expectations become. You can somewhat understand it when dealing with a first-home buyer or a family who need a house but can only extend to a unit. Genuinely “needing” more than the budget can afford is a frustrating hazard of a rising population.
However, it’s a little harder to relate to at the other extreme and no better is it demonstrated than in those who commonly have the purchasing power to own modern man’s equivalent of the ancient castle. This is also the demographic most likely to experience negative equity when trying to sell in a downward cyclical phase.
As <a href="https://www.propertyobserver.com.au/residential/australia-s-housing-market-could-crash-if-property-s-primary-purpose-is-forgotten-catherine-cashmore/2012030553684">I’ve pointed out in previous articles</a>, since history began, housing has been an integral part of the most valuable asset man desired, fought over, possessed and in many cases died for. Land was – and has always been – the ultimate symbol of power and wealth, and owning it often holds more significance for the vendor than can be assessed in monitory value alone. In this instance, it’s not so much about need for shelter, but desire to exhibit status, and the higher the price paid, the greater the risk involved. For example, head out to the suburbs surrounding the capital that fall into the highest median price bracket, with large land sizes complete with McMansions – suburbs such as Toorak in Melbourne and Point Piper in Sydney – and the buyer market diminishes considerably. The further away from the median price bracket you get, the more volatility experienced.
Supply verses demand is what fundamentally drives market activity, therefore the less demand you have, the less opportunity for price appreciation. In a downward cycle, multimillion-dollar real estate will be forced to drop further in price in order to sell. Therefore if you’re a bargain hunter, pick the right time, and this isn’t a bad place to start! Once the cycle turns, these areas will re capture the greatest gains in median value and make a tidy profit for the astute buyer who “timed the market”.
Meanwhile, to each and every home buyer, considering we have not experienced anything near to a 40% drop in median value as exhibited in areas of the US and strong indications suggest we’re unlikely to for some time to come, you can assume any talk of negative equity affecting your property is a consequence of what a computer has assessed, not a home buyer. Once computers get to the level demonstrated in the film I, Robot I’ll take a little more notice.
 
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://ten.com.au/the-circle.htm">The Circle</a> and a senior consultant for <a href="https://www.nationalpropertybuyers.com.au/">National Property Buyers</a> servicing the needs – Australia wide – for home buyers and investors.
 
 
 
 
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catherinecashmore-6LXia3pPQj

Negative equity hurting McMansion owners, but most home owners needn’t worry

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<img src="/images/stories/10989.gif">
The number of properties available to rent in Melbourne, which has a vacancy rate of 3%, according to SQM Research. This is down from 12,719 in January but up from 9,998 at this time last year.
 
<hr>
 
<img src="/images/stories/7972.gif">
The number of properties available to rent in Sydney, which has a vacancy rate of 1.5%, according to SQM Research. This is down from 8,456 in January but up from 6,894 at this time last year.
 
<hr>
<img src="/images/stories/4665.gif">
The number of properties available to rent in Brisbane, which has a vacancy rate of 1.6%, according to SQM Research. This is down from 5,112 in January but up from 4,479 at this time last year.
 
<hr>
<img src="/images/stories/2219.gif">
The number of properties available to rent in Adelaide, which has a vacancy rate of 1.3%, according to SQM Research. This is down from 2,231 in January but up from 1,657 at this time last year.
 
<hr>
<img src="/images/stories/973.gif">
The number of properties available to rent in Perth, which has a vacancy rate of 0.6%, according to SQM Research. This is down from 1,084 in January and from 1,567 at this time last year.
 
<hr>
<img src="/images/stories/637.gif">
The number of properties available to rent in Hobart, which has a vacancy rate of 2.3%, according to SQM Research. This is up from 583 in January and from 266 at this time last year.
 
<hr>
<img src="/images/stories/313.gif">
The number of properties available to rent in Canberra, which has a vacancy rate of 0.7%, according to SQM Research. This is downfrom 382 in January and from 285 at this time last year.
 
<hr>
 
<img src="/images/stories/184.gif">
The number of properties available to rent in Darwin, which has a vacancy rate of 0.7%, accordign to SQM Research. This is down from 238 in January but up from 540 at this time last year.
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cknowlton-QnEa6ntUYP

How much stock is available to rent in your capital city? A state-by-state analysis: SQM Research

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Houses took an average of just 18 days to sell in Chippendale – the fastest-selling locality in NSW, according to RP Data. This is seven days quicker than the next fastest-selling locality, Beverley Park, where it took 25 days to sell a house. Property Observer notes there were just 17 houses sold in Chippendale last year.
<table width="213" cellpadding="0" cellspacing="0" border="0"><tbody>
<tr>
<td valign="bottom" nowrap width="133">
Locality
</td>
<td valign="bottom" nowrap width="80">
Days on Market
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Chippendale
</td>
<td valign="bottom" nowrap width="80">
18
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Beverley Park
</td>
<td valign="bottom" nowrap width="80">
25
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Edgecliff
</td>
<td valign="bottom" nowrap width="80">
28
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Regentville
</td>
<td valign="bottom" nowrap width="80">
28
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Old Toongabbie
</td>
<td valign="bottom" nowrap width="80">
31
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Bangor
</td>
<td valign="bottom" nowrap width="80">
32
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Lane Cove North
</td>
<td valign="bottom" nowrap width="80">
34
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Revesby Heights
</td>
<td valign="bottom" nowrap width="80">
34
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Padstow
</td>
<td valign="bottom" nowrap width="80">
35
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="133">
Waitara
</td>
<td valign="bottom" nowrap width="80">
35
</td>
</tr>
</tbody></table>
 
Source: RP Data
 
 
 
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awalsh-7Ub9EypybQ

Chippendale fastest-selling locality in NSW: RP Data

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The higher numbers of Australians heading overseas on holiday and doing their shopping there is having a more damaging effect on the retail sector than online shopping, according to BIS Shrapnel managing director Robert Mellor. 
Mellor said internet shopping was an important factor in the current challenges facing retail, but stressed that the “lost dollars” from people travelling and spending overseas was a “more critical factor” in the current soft market during an address in Melbourne recently. 
According to the Australian Bureau of Statistics, the number of Australians travelling abroad rose to 7.8 million in 2011, and Australians took nearly 2 million more overseas trips in 2011 than they did in 2010. 
A survey released by Roy Morgan in October last year showed that overseas travel intentions are at their highest point in five years, with one in 10 Australians planning to go abroad in 2012.
BIS Shrapnel is forecasting a stabilisation in retail construction in 2012-13 with building commencements rising 7% to $4.65 billion in 2012-13 following a contraction of 11% to $4.35 billion in 2011-12.
Click to enlarge
<a href="/images/stories/bismarch26.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/bismarch26thumb.gif"></a>
“[Retail property investors] have been cautious due to the current softness in retail sales growth,” Mellor says. 
“We won’t see a surge in investment but a stabilisation,” he says. 
BIS Shrapnel chief economist Frank Gelber says speciality stores, which provide retail landlords with their “bread and butter” rents, are doing it tough at the moment. 
“We have actually seen a lot of people walking away from their leases and not renew them for the first time in a very long time. 
“Some of it is cyclical and some is structural due to the consequences of online shopping and more Australians spending their money overseas than here,” Gelber says. 
The latest March BIS Shrapnel bulletin notes that the retail sector has a struggled since early 2011, with a relatively sharp slowdown in the rate of retail turnover growth. 
“This weakness reflects a range of interconnected factors, most significantly the loss of government stimulus, a weakened and volatile economy and a high Australia dollar which is intensifying overseas online shopping competition,” says the BIS Shrapnel March 2012 Building Industry Prospects report. 
The research firm expects consumer confidence to gradually improve over 2012, which will flow into retail sales. 
“With no fundamental oversupply of retail space, improving confidence will aid investment decisions, particularly for larger retail centres. Bulky good related construction is expected to persist at a high level,” says BIS Shrapnel in its March outlook bulletin. 
According BIS Shrapnel, the 2011-12 result would be weaker, if not for the commencement of high-end developments such as the $200 million Indooroopilly Shopping Centre expansion in Brisbane and $400 million Melbourne Emporium project. 
“Also, despite the weakness, a number of major retailers have pushed forward with aggressive expansion plans including ALDI, Woolworths (especially with new Masters hardware chain), Westfarmers (Coles) and Costco. As a result, bulky good and to a lesser degree smaller neighbourhood shopping centre retail construction has performed strongly. 
“Conditions in the retail sector are expected to gradually improve into 2012-13, which is expected to flow into warehouse space requirements and improved business confidence. Activity is still heavily reliant on pre-commitments with limited speculative development evident, and this is expected to continue,” the report says. 
“The strongest market through to 2012-13 is forecast to be NSW, with the value of building works set to expand by 27%.” 
BIS Shrapnel notes there are “quite a number of shopping centre redevelopments proposed in Sydney, and as trading conditions improve, one or two of these is anticipated to commence”. 
Currently the two biggest retail projects are both being undertaken by Stockland – the $130 million redevelopment of Merrylands (stage 3 and 4) in Western Sydney and the $180 million redevelopment of the Shellharbour Retail Centre near Wollongong. 
There is also expected to be a strong 17% surge in retail construction in WA in 2012-13, with the  strength of the state economy continuing to support investment “as excess capacity is quickly absorbed”. 
“Strong population and wage growth will result in solid retail spending growth, supporting investment in retail building,” says BIS Shrapnel. 
In Victoria, retail construction is expected to fall modestly in 2011-12 (-4%) even with construction of the $400 million Melbourne Emporium development now underway. 
In Queensland, with retail construction already at a high base and the $200 million Indooroopilly Shopping Centre Expansion the only major project expected to commence in 2011-12 in Queensland, retail building is forecast to contract by 30%.
 
 
 
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lschlesinger-FZcF9M3vE6

Overseas travel more damaging than online shopping to Australian retail: BIS Shrapnel

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Lord Alistair McAlpine of West Green, the down-to-earth Broome visionary, was back in the Kimberley region for the first time in a decade.
And he liked what he saw, with one caveat.
“It’s important the planners stick to the ‘no higher than a palm tree’ height principle when it comes to new development,” he told Property Observer before departing Broome last Friday.
Describing the heat during his six-day visit as like a very gentle sauna, McAlpine, the treasurer of the British Conservative Party under Margaret Thatcher, was there to be recognised by the shore for his contribution to putting the place on the tourism map.
Once dubbed by the eastern states press as "Lord Of The Bush", he was formally recognised at a ceremony last week given the presentation of the shire's highest honour, Freeman of the Municipality.
Coming to buy seashells, he first visited the former pearling town in 1979 and was taken with it – albeit describing it as a derelict town.
<img src="/images/stories/suncinemas.jpg">
Within hours of arriving in the Kimberley town he’d purchased a cottage, then the Sun Cinemas (pictured above), and within a few years he'd started a zoo and a luxury resort.
He had been building Perth property since the mid-1960s including construction of the Pamelia hotel through his family business.
His acquisitions of Broome properties – many of the best of the pearling master's cottages – got up into the 20s.
“Without its old houses, Broome was nothing,” the softly spoken McAlpine told Property Observer.
<img src="/images/stories/cablebeach.jpg">
His biggest acquisition was the Cable Beach property – then a caravan park and sewer – which is now the Cable Beach Resort (pictured above). It was bought quite informally – a beer mat contract – at the Roey pub.
“The Cable Beach Resort is far better than in the past,” McAlpine acknowledged.
Broome, set in one of Australia's great wilderness areas, is easily isolated.
McAlpine’s exit from the town came in the wake of the debilitating 1989 pilots’ strike, and he said he might still be there but for it.
“It’s greatly improved since my day,” he said, dressed dapperly in earthy colours that matched the geographical locality, but perhaps not suiying the temperature.
“The town has developed very well, but it’s not there yet.
“There’s a lot more buildings, but not much has changed.”
‘It’s a mature town, but I’ve been impressed by the restraint. They’ve stroked it terrifically,” he said.
He says there’s a need for more foliage in the town.
During a public gathering he was quizzed on the impact arising from the development of a gas project at James Price Point.
“Resources will be a short-term thing,” he suggested.
But he indicated he was more concerned at the prospect of eco-hotels opening up through the Kimberley and people arriving to them on buses and in gas-guzzling four-wheel drives.
He is keen for railway lines to be constructed in the region. He suggests a railway line from Meekatharra to Broome and onto Darwin and a narrow gauge rail line from Broome up to Cape Leveque on the Dampier Peninsula.
In 2010 he stepped down from his seat in the House of Lords.
<img src="/images/stories/mcalpine1.jpg">
Photographs by Jonathan Chancellor
He lives with his wife, Athena (pictured above), in southern Italy, which he says has a similar dry climate, owning a haute bed-and-breakfast, the 15th-century Il Convento di Santa Maria di Costantinopoli, in Apulia.
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jchancellor-FAypfDUnLy

Lord Alistair McAlpine returns to Broome and urges tourism development stay below the palm tree line

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Department store group David Jones endured a lacklustre six months of retail trading, reporting 20% drop in interim profits and a 6.7% drop in sales for the six months to January 29, 2012 compared with the same period in 2011.
The retailer occupies prime space in some of Australia’s biggest shopping centres, and its performance will be closely monitored by retail property investors and landlords.
These are the numbers you need to know:
<img src="/images/stories/36star.gif">
The number of David Jones department stores in Australia
 
<hr>
 
<img src="/images/stories/34.gif">
The number of store premises David Jones rents from retail landlords
 
<hr>
 
<img src="/images/stories/2.gif">
The number of store premises owned by David Jones – Elizabeth Street (Sydney) and Bourke Street Mall (Melbourne)
 
<hr>
 
 
<img src="/images/stories/462point5.gif">
The total value of land, building and integral plant facilities owned by David Jones
 
<hr>
 
 <img src="/images/stories/1point01b.gif">
The total value of sales achieved by David Jones during the first half of the 2012 financial year, compared with $1.08 billion in previous corresponding period.
 
<hr>
 
 
<img src="/images/stories/6.gif">
The number of DJ stores in the development pipeline.  Of these two are under construction: Highpoint (Melbourne), which is scheduled to open in the first quarter of 2013, and Indooroopilly (Brisbane), which is scheduled to open in the first quarter of 2014. There are four where DJs has signed  “agreements to lease”: Macquarie (NSW), Whitford (WA), Pacific Fair (south-east Queensland) and Sunshine Plaza (south-east Queensland)
 
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<img src="/images/stories/40m.gif">
The forecasted annual sales revenue for David Jones Indooroopilly in its first year of operation in 2014
 
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<img src="/images/stories/42000sqm.gif">
The gross lettable area of David Jones stores in the development pipeline, the biggest being Pacific Square at 14,500 square metres
 
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<img src="/images/stories/93point4m.gif">
DJ’s lease and occupancy expenses for the six months to January 29 2012
 
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<img src="/images/stories/5point7percent.gif">
The increase in DJ’s lease and occupancy expenses for the six months to January 29, 2012 compared with the previous corresponding period
 
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<img src="/images/stories/15.gif">
The number of David Jones department stores in NSW. These are Elizabeth Street, Sydney; Chatswood Chase; Newcastle; Market Street, Sydney; Hornsby, Parramatta, Bondi Junction, Kotara, Tuggerah, Burwood, Macarthur Square, Warringah Mall, Castle Towers, Miranda, Wollongong
 
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<img src="/images/stories/7n.gif">
The number of DJ department stores in Queensland. These are <a href="https://www.davidjones.com.au/stores/Queens-Plaza">Queens Plaza</a>; <a href="https://www.davidjones.com.au/stores/Garden-City-QLD">Garden City (QLD</a>); <a href="https://www.davidjones.com.au/stores/Carindale">Carindale</a>; <a href="https://www.davidjones.com.au/stores/Robina-Town-Centre">Robina Town Centre</a>; <a href="https://www.davidjones.com.au/stores/Toowong-Village">Toowong Village</a> and <a href="https://www.davidjones.com.au/stores/Chermside">Chermside</a>
 
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<img src="/images/stories/5.gif">
The number of David Jones department stores in Melbourne. These are <a href="https://www.davidjones.com.au/stores/Bourke-Street-Mall">Bourke Street Mall</a>; <a href="https://www.davidjones.com.au/stores/Doncaster">Doncaster</a>; <a href="https://www.davidjones.com.au/stores/Southland">Southland</a>; <a href="https://www.davidjones.com.au/stores/Chadstone">Chadstone</a> and <a href="https://www.davidjones.com.au/stores/Glen-Waverley">Glen Waverley</a>
 
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<img src="/images/stories/4.gif">
The number of David Jones department stores in Western Australia. These are <a href="https://www.davidjones.com.au/stores/Hay-Street-Mall">Hay Street Mall</a>; <a href="https://www.davidjones.com.au/stores/Garden-City-WA">Garden City (WA</a>); <a href="https://www.davidjones.com.au/stores/Karrinyup">Karrinyup</a> and <a href="https://www.davidjones.com.au/stores/Claremont-Quarter">Claremont Quarter</a>
 
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<img src="/images/stories/3.gif">
The number of David Jones department stores in South Australia. These are Adelaide Central Plaza; Marion and West Lakes
 
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<img src="/images/stories/2.gif">
The number of David Jones department stores in South Australia. These are Canberra Centre and Woden
 
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<img src="/images/stories/2.gif"> 
The number of DJ “rack” discounted clearance stores. These are David Jones Warehouse - Birkenhead Point (Sydney) and David Jones Warehouse Harbour Town (Gold Coast)
 
*David Jones says it has 36 department stores but only lists 35 on its store locator website. Property Observer is awaiting clarification from David Jones.
Photograph courtesy of <a target="_blank" href="https://www.flickr.com/">Flickr</a>.
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David Jones retailing and property by the numbers

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The total land value of Moree Plains Shire increased 35% from 2008 to 2011, driven up by strong growth in rural land values, according to NSW Valuer-General Philip Western.
The combined land value of the 6962 properties in the shire was $3.368 billion in July 2011, up from $2.499 billion in 2007.
Larger cropping land and mixed farming and grazing land values had a moderate increase over the four years, with irrigation lands experiencing a slight increase in value.
Former grazing properties west of Moree, which were recently converted to cultivation land, had a strong increase in land values.
Hobby farms had a slight increase in land values, with sites smaller than one hectare surrounding the villages experiencing strong increases.
The village areas of Mungindi and Pallamallawa had a moderate increase in land values, while village land in Boggabilla experienced strong increases.
<img src="/images/stories/moreeplainsmap.gif">
These overall increases in rural prices came despite a 0.5% drop in median rural land prices from 2010 to 2011 from $603,000 to $600,000.
The land value of residential, commercial and industrial land has generally in the shire remained steady.
From 2010 to 2011 median business land prices increased 1% from $96,100 to $96,900 while median residential land prices stayed at $30,800 and median industrial land prices at $102,000.
Landowners and rate-paying-lessees received a notice of valuation last month.
The valuations are used to determine rates and land taxes on investment properties.
Typical residential land values were:
<ul>
<li>664 square metres at Barwon Avenue, Moree valued at $5,000 </li>
<li>646 square metres at Brigalow Drive, Moree valued at $38,500 </li>
<li>1,370 square metres at Callaille Avenue, Moree valued at $115,000 </li>
<li>767 square metres at Oak Street, Moree valued at $10,500 </li>
<li>974 square metres at Queen Street, Moree valued at $65,000</li>
</ul>
Typical commercial land values were:
<ul>
<li>396 square metres at Balo Street, Moree valued at $187,000 </li>
<li>891 square metres at Frome Street, Moree valued at $98,000 </li>
<li>1,012 square metres at St George Street, Mungindi valued at $4,340</li>
</ul>
Typical industrial land values were:
<ul>
<li>2,574 square metres at Greenbah Road, Moree valued at $152,000 </li>
<li>5,489 square metres at Industrial Drive, Moree valued at $102,000</li>
</ul>
Typical rural land values were:
<ul>
<li>571 hectares at Terry Hie Hie Road, Moree valued at $1,860,000 </li>
<li>1,056 hectares at Ulinga Road, Garah valued at $1,540,000</li>
<li>394 hectares at Terry Hie Hie Road, Terry Hie Hie valued at $1,420,000 </li>
<li>1,297 hectares at Talmoi Road, Garah valued at $2,590,000</li>
</ul>
Typical rural residential land values were:
<ul>
<li>2.7 hectares at Tranquility Road, Moree valued at $110,000 </li>
<li>41.5 hectares at Burrington Road, Moree valued at $147,000 </li>
<li>5,066 square metres at Myora Street, Moree valued at $15,000</li>
</ul>
Typical hobby farm land value was:
<ul>
<li>57.4 hectares at Mosquito Creek Road, Pallamallawa valued at $208,000</li>
</ul>
Typical village land values were:
<ul>
<li>2,023 square metres at Bucknell Street, Mungindi valued at $1,970 </li>
<li>2,011 square metres at Yeoman Street, Boggabilla valued at $5,500 </li>
<li>2,023 square metres at Bingera Street, Pallamallawa valued at $16,900</li>
</ul>
 
 
 
<ul></ul>
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Mooree Plains land values increased 35% in three years, driven by strong rural growth

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The Australian housing market has already enduring the ultimate test and is sturdy enough to sustain the current market pressures, says Commonwealth Bank chief economist Michael Blythe.

He says the Australian housing market went through “ultimate test” a few years ago in the wake of GFC and “came out the other side in relatively good shape”.

“That’s probably the best indication that we’ve not got a genuine bubble as we know them from historical experience.

“As an economist, I have to believe in the laws of supply and demand, and supply and demand in the Australian housing market is in a position to at least keep a floor under prices,” Blythe said as part of a panel discussion at the recent Australian Banking and Finance Mortgage Innovation Forum in Sydney 

According to Blythe, talk of housing bubbles is nothing new and particularly comes up at times when the market is under pressure.

He says talk of an Australian housing bubble dates back to 2004.

“It’s been a persistent theme and a persistent question we get from clients, particularly from those offshore,” he said.
 
 
 
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