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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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The NAB bank branch in a prime section of the Church Street in Brighton has been sold for $6,105,000 at auction. 
Fitzroys agents Chris James and Mark Talbot sold 35 Church Street on behalf of private owners, who had held the site for 23 years.
A private Melbourne-based investor purchased the property.
On a 288 square metre site, the property has an 8.5 metre frontage to Church Street.
NAB has a long-term lease over the property, and the sale price reflected a sharp 3.5% yield.
Over 100 enquiries were received from around Australia and offshore, according to James. 
The property is positioned within the tightly held section of Church Street, between Carpenter and St Andrews streets, which is currently experiencing a record low 0% retail vacancy.
Neighbouring tenants include Australia’s leading high-end retailers in Country Road, Mecca, Scanlan Theodore and Saba while the Dendy cinema complex is opposite.
“The immediate catchment has been bolstered with the introduction of medium-density residential developments in what is broadly a low-rise suburb, while the suburb is home to a number of highly sought after private schools,” James said.
Fitzroys sold the two-level, 110 square metre building home stationery company Smiggle at 67 Church Street last year for $2.41 million, at a yield of 3.2%.
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j.ballantyne1990-6AQqhLzZaK

Church Street, Brighton NAB branch sold for $6.1 million 

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Mackay's Coral Cay Resort has been purchased by West Australian-based Facilimate Hotels. 
Located on a large 9,148 square metres site, the hotel at 14-18 Nebo Road comprises 82 one, two and three bedroom apartments, a restaurant, two meeting rooms, a swimming pool, gymnasium, manager's residence and outdoor car parking. 
The sale is evidence that investor sentiment is on the rise in Mackay market, showing signs of recovery following recent mining project approvals, said Managing Director of Facilimate Hotels, Stephen Lauder.
"With the hotel situated between our Brisbane and Cairns hotels, we identified synergies in adding the asset to our portfolio and increasing our footprint in the Queensland market," Lauder. 
This ideal represents the group's third purchase in Queensland, following its acquisition of the Pacific Hotel Cairns and Urban Hotel Brisbane.
It boosts its portfolio of owned and operated assets to six across the ACT, Western Australia and Queensland.
The sale was by embattled fund manager Blue Sky which took a capital loss of about $6 million after Facilitate paid about $10 million.
Blue Sky Residential Asset Managers, an unlisted fund that comes under the umbrella of ASX-listed Blue Sky Alternative Investments Limited, paid $16 millio in May 2013.
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Facilimate Hotels buys Mackay Coral Cay Resort  

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A mixed-use building on Perth’s high profile Queen Street has been sold for $4.89 million. 
The period building at 26 Queen Street was contested with more than 60 Information Memorandums provided, said Knight Frank Partner, Capital Markets, Todd Schaffer.
Schaffer said the building was positioned to capitalise on the resurgence of the top end CBD retail market, particularly around the King/Queen Street and Raine Square precinct. 
He said its location, 100% occupancy and offering had made it attractive to a broad range of investors. 
Knight Frank senior sales executive Rick McIntosh-Whyte said with two new hotels soon to open nearby and the continued evolution of Raine Square and Kings Square, the Queen/King Street precinct would continue to attract high levels of interest. 
The building is arranged over four levels providing flexible accommodation with a total net lettable area of 740 square metres.
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Mixed-use building on Perth's Queen Street sold for $4.89 million 

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Buyer demand for industrial property in Adelaide has been very strong so far in 2019, with total sales nearly triple that recorded for the same period in 2018, according to the latest research from Knight Frank.
The Adelaide Industrial Market Overview August 2019 found in 2019 total sales for industrial properties above $5 million is currently $140.08 million, significantly higher than the same period in 2018, which was $49.35 million.
Knight Frank Research Analyst SA Yee Ng said total sales in 2019 are expected to be higher than 2018, which totalled $261.93 million, particularly with more major potential transactions in the pipeline including Stockland divesting the Port Adelaide Distribution Centre for circa $80 million to a Melbourne Based Fund, Quintessential.
Ng said buyer demand for industrial property in Adelaide was coming from investors, as well as owner occupiers, with stimulus in the market providing the impetus for tenants to become owners.
<a href="https://www.propertyobserver.com.au/images/2019/9/4/adelaide%201.jpg" target="_blank">Click here</a> to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/4/adelaide%201.jpg" alt="">
“The total sales value so far this year was boosted by investors, with the circa $55 million sale of the 122.5 hectare General Motors Holden site to developer Pelligra Group, which finally settled in January after an extended settlement, and the sale of the former steel fabrication site in Gepps Cross to Charter Hall for circa $35 million, which is currently being redeveloped into a distribution centre for Metcash,” he said.
“However, the historically low cash rate, coupled with the abolition of stamp duty on commercial property, has increased demand for owner occupiers to purchase their own facilities, and has had a positive impact on the number of transactions for industrial properties above $5 million.
“South Australia also remains an attractive value proposition for investors seeking higher income returns as average prime yields across the eastern seaboard are generally more than 100 basis points firmer than in Adelaide.
“Industrial yields have shown a continual firming bias over the past six months and are likely to continue firming, given the value proposition and improving demand on offer in South Australia.”
<a href="https://www.propertyobserver.com.au/images/2019/9/4/adelaide%202.jpg" target="_blank">Click here </a>to enlarge: 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/4/adelaide%202.jpg" alt="">
The Knight Frank report found that as at July 2019, average blended prime yields for industrial property in Adelaide are ranging from 7.25% to 8.00% for all precincts, and averaging 7.77%. Meanwhile, the average blended secondary yields are ranging from 8.50% to 9.25%, and averaging 9.04%.
Knight Frank Sales and Leasing Executive SA Garry Partington said fully leased industrial property with strong lease covenants in well-located areas continued to attract strong interest, particularly from interstate and off-shore buyers.
“Over the past 12 to 18 months there has been an increase in the number of transactions for properties above $20 million,” Partington said.
“The low cost of capital is likely to continue to attract more investment into the property market, as will the higher income returns available in the Adelaide industrial market.”
With occupiers increasingly favouring purchasing a facility over leasing, leasing transaction volumes remain low, with rents steady over the past six to 12 months, according to the research.
“There has been limited leasing activity over the past six months but we expect it to pick up over the remainder of 2019,” said Parlington.
“The most sought after properties for tenants in Adelaide are those within inner metropolitan areas with good access to major transit routes, with the majority of leasing transactions being concentrated in the inner north, largely due to the size of the precinct.
“The outlook for tenant demand is looking positive, with several briefs for space in the market for office/warehouse accommodation ranging from 3,000 square metres to 10,000 square metres.”
<a href="https://www.propertyobserver.com.au/images/2019/9/4/adelaide%203.jpg" target="_blank">Click here</a> to enlarge:
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/4/adelaide%203.jpg" alt="">
Notable requirements are from industries including logistics (circa 10,000 square metres), building construction (circa 10,000 square metres), pipe manufacturing (circa 3,000 square metres) and electrical manufacturing (circa 3,000 square metres), according to the Knight Frank report.
Ng said projects from the defence and manufacturing industries would ramp up in 2020 and boost South Australia’s economy, which would have a flow on effect to the industrial property market.
“The closure of the General Motors Holden site in Elizabeth in 2017 resulted in job losses across the state, but new owner Pelligra has secured tenants such as Genis Steel, SA Power Networks, Sonnen and Levett Engineering, which will create jobs.
“In addition, Whyalla steelworks owner Sanjeev Gupta of the GFG Aliiance plans to revive vehicle manufacturing in Australia by building electric cars. The location of the manufacturing site is unknown, however Victoria and South Australia are being canvassed for potential sites, due to their history of vehicle manufacturing.
“Besides that, the defence industry has made a positive impact on the South Australian economy, resulting from the $35 billion Future Frigates contract with BAE Systems.
“Small and medium enterprise such as Redarc Electronics have enjoyed the flow on contracts from defence projects.”
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Adelaide industrial sales on track to beat 2018: Knight Frank 

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Alfasi Property has appointed Kane Constructions as the builder to undertake the construction of its project in Cremorne, NSW. 
Works commenced in July on the new technology-focused commercial development at 510 Church Street.
On completion in mid-2021, 510 Church Street will deliver an additional 18,559 square metres of A-Grade office space with large and flexible floorplates. 
The building will be a technology-enabled smart building.
Electric vehicle charging stations, fast and reliable WI-FI connectivity, safety and security access controls using smartphones, smart lighting and smart metering are among the features. 
<img src="https://www.urban.com.au/images/2019/9/4/510%20Church%20St%20construction%203.jpeg" alt="">
A range of cafes, restaurants and shops all within walking distance from the building.
Trains and trams making access easy from any part of Melbourne. 
510 Church Street will deliver 18,559 square metres of office space across nine levels, with a further 1,848 square metre outdoor terrace area, situated on a 3,058 square metre site. 
“Our floors range from 1,758 square metres to 2628 square metres, with outdoor terraces on every second level and four street frontages allowing for an abundance of natural light,” Gill Dvir, Managing Director at Alfasi Property said. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/4/510%20Church%20St%20construction.jpg" alt="">
Basement car parking for 147 vehicles, end-of-trip facilities, a rooftop terrace and a smart building app will further enhance the building, which is targeting 5-Star Green Star and 4.5-Star NABERS ratings, Dvir said. 
Alfasi Property has appointed Colliers International’s Rob Joyes and Travis Myerscough and Cushman and Wakefield’s Ben McKendry and Ben Ward on the leasing campaign.  
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Alfasi Property appoints Kane to Cremorne commercial building construction 

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A ground floor retail investment in Ascot Vale, Victoria has been sold for $935,000 to a local investor. 
The 131 square metre property at 202 Union Road, Ascot Vale has been leased to Flemington Financial Services Ltd T/A Bendigo Bank.
It returns $45,395 per annum plus GST on a four plus four year lease term, equating to a yield of 4.86% and building rate of $7,137 per square metre.
The property features an open plan reception/office layout, two partitioned offices, ducted heating and cooling, staff amenities and kitchenette.
It was sold by Craig McKellar of CVA.
It has 6 metre frontage to Union Road and rear access via The Parade.
Union Road is located under 5 kilometres from Melbourne CBD and is supported by an array of retail shops, cafes, restaurants and offices and is serviced by tram.
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Ascot Vale ground floor retail investment sold for $935,000 

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An aged care developer has snapped up a 11,981 square metre landholding in the Melbourne bayside suburb of Highett for $28.5 million.  
The permit-approved site at 32-40 Graham Street has plans for a retirement village for 90 residential apartments, a 122 bed aged care facility and 15 assisted living units together with communal facilities. 
It was sold by Savills agents Julian Heatherich, Benson Zhou and Jesse Radisich. 
Heatherich said the site sold for around $20,000,000 and, with the added value of the permit, has benefited on the revenue opportunities associated with the $20 billion-a-year residential aged care industry.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/2/Highett%20Development%20medium%20.jpg" alt="">
“The Bayside area is one of Melbourne’s most highly sought inner suburban locations due to its abundance of lifestyle amenity, thriving café and culinary culture and public transportation links,” said Heatherich. 
“The site is only 16 kilometres from the Melbourne CBD.
“The sale also indicates a continuing upward trend we’re seeing in aged care developments, particularly in Inner Melbourne and the Mornington Peninsula.” 
The sale to Ryman follows another recent off-market acquisition to Ryman in Ringwood, also transacted by Savills.
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Aged care developer buys Highett site for $28.5 million 

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EXPERT OBSERVATION
Australian GDP rose by 0.5% in the June quarter and annual growth slowed to 1.4%, which was right on market forecasts but below the RBA’s forecasts for a 0.8% rise in the quarter.
GDP growth is very weak and at its lowest level since the Global Financial Crisis (see chart below) which is why there is all the talk of a recession in Australia lately and why conditions in some pockets of the economy may feel recession-like.
<a href="https://www.propertyobserver.com.au/images/2019/9/4/GDP.png" target="_blank">Click here</a> to enlarge: 
<img src="https://www.urban.com.au/images/2019/9/4/GDP.png" alt="">
Source: ABS, AMP Capital
The weakness in the Australian economy that started in mid-2018 has continued well into 2019.
The make-up of growth still remains a concern as private demand fell again in the June quarter (by 0.1%) with large increases in public spending and net exports “saving” the economy.
With consumer spending still struggling to lift noticeably, falling residential construction, moderate business investment growth, the private sector side of the economy will likely remain weak.
A softer global environment may also infiltrate further into Australia’s external sector. So the risk of an Australian recession remains and can’t be ignored.
However, this is not our base case partly because we expect more RBA interest rate cuts, possibly quantitative easing, and more fiscal stimulus which should help lift growth.
If the improvement in home prices continues it would also be positive for household wealth and provide some boost to inflation.  
The key components of the June quarter data are:
<ul>
<li>Consumer spending rose by 0.4%, contributing 0.2 percentage points to the June quarter GDP.</li>
</ul>
Consumer spending growth is still declining, with annual growth falling to 1.4%.
The household saving ratio declined to 2.3% (from 3%) after increasing in prior quarters.
While there may be some more downside to consumer spending growth due to the low wages environment, the bottoming in national home prices means that the negative wealth effect is waning.
Tax cuts to low and middle income earners should also have a positive boost to consumption over coming months, although the fall in July retail sales is concerning.
The declining household saving ratio tells us that the buffer for consumer spending is declining.
<ul>
<li>Housing investment continues to decline and detracted 0.2 percentage points from GDP growth.</li>
</ul>
New residential construction fell by 5.9% and alterations and additions were down by 1.4%.
Ownership transfer costs (a proxy for housing turnover activity) improved by 4.3%.
Building approvals continue to fall so there is still further downside to residential construction over the next year.
<ul>
<li>Underlying business investment (which takes into account asset transfers between the private and public sector) fell by 0.4% and made no contribution to growth.</li>
</ul>
Non-residential building was down by 5% and engineering construction dropped by 4.7% but is down 19.6% year on year.
Non-residential building approvals have been mixed over the past few months so there may be some more weakness to come for building activity.
The capital expenditure survey indicated that business investment growth will be positive albeit modest over the next year as mining investment is slowly improving, manufacturing investment is lifting and spending in the services industry is still trending up.
<ul>
<li>Underlying government spending (which takes into account asset transfers between the private and public sector) was up strongly by 1.4% and contributed 0.3 percentage points to growth.</li>
</ul>
Government consumption rose by 2.7% but investment fell by 2.3%. State and Federal government spending on infrastructure has been driving public spending over the past few years.
While the pipeline of projects in construction is peaking, the slow pace of project completions due to delays or other issues means that the peak in government infrastructure spending keeps on being pushed out which is a positive for GDP growth (but maybe not a positive for traffic congestion!).
<ul>
<li>Inventories collapsed and detracted 0.5 percentage points from growth which means that production did not keep up with sales.</li>
</ul>
The inventory to sales is at a record low of 0.581 and is unlikely to fall much further from here which means that inventories are likely to add to GDP in coming quarters.
<ul>
<li>Net exports boomed and contributed 0.6 percentage points to growth.</li>
</ul>
Export growth is solid which is a good sign of demand for goods and services but the collapse in imports (especially in consumption imports) is a bad sign for consumer spending.
<ul>
<li>Productivity growth is still poor with the “GDP per hour worked in the market sector” flat over the June quarter and down by 0.6% over the year.</li>
</ul>
Weakness in productivity growth reconciles the divergence between strong employment growth and weak GDP numbers. 
Implications
While the RBA kept the cash rate unchanged yesterday, despite knowing the weakness in July retail sales and anticipating a low June quarter GDP number, we still expect rate cuts in October and November taking the cash rate to 0.5% as global data remains weak, the unemployment rate increases and global central banks (the ECB and Fed) cut interest rates (and restart asset purchases in Europe) in September which may influence the RBA’s decision to do more monetary stimulus lest the Australian dollar rises.
SHANE OLIVER is Head of Investment Strategy and Chief Economist AMP Capital.
DIANA MOUSINA is an Economist at AMP Capital.  
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RBA to cut the cash rate to 0.5% by the end of the year: Shane Oliver & Diana Mousina 

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EXPERT OBSERVATION
The latest figures on Australia’s economic growth are the slowest since the GFC and the slump in housing approvals is driving this.
Australia’s low economic growth of 0.5% in the last quarter of the 2019 financial year leaves an annual rate of 1.4%, which is the slowest since 2009 following the Global Financial Crisis. 
A number of commentators have linked the slow growth to the big slump in home approvals across Australia but particularly in New South Wales.
The slowdown in the Australian economy has been influenced by a number of external global issues, but the supply of new homes across the country is clearly a local issue that the Australian Government and State and Territory Governments should be taking action to reverse.
In New South Wales, and particularly in Sydney, an anti-development sentiment has led to a big slow-down in housing approvals from councils and the NSW Government.
The most recent Australian Bureau of Statistics data for housing approvals shows a drop of 39% over the last two years in New South Wales.
The drop in housing approvals has been 20% over the last five months with confidence in the housing development industry dropping.
Some of the messaging from the NSW Government on key projects like the St Leonards South project and the Pyrmont Star hotel and apartment tower has been particularly negative with government bodies preferring the protection of the existing neighbourhood character rather than supporting new development.
There seems to be a cultural problem in Sydney where approval bodies, whether they be government, councils or planning panels, are preferring to reject projects for new housing rather than approve them.
Strong leadership is needed from the NSW Government to drive new housing approvals and therefore boost the economic growth of the state and of Australia.
The Urban Taskforce is keen to work with the NSW Government to help lift housing approvals particularly in areas where the market is looking for new homes.
CHRIS JOHNSON is the Urban Taskforce CEO.
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Home approval slump is driving the slowest economic growth since GFC: Chris Johnson 

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The Tambrey Tavern in Karratha in the Pilbara region, one of the north west’s largest pub and retail liquor outlets, has been re-listed given growing market confidence.
It joins Pilbara's historic Carnarvon Tavern <a href="/expert-insights/investing/pilbaras-historic-carnarvon-tavern-hits-the-market">on the market</a>.
The tavern was once owned by former Federal Minister Wilson Tuckey and is alle where he allegedly earned the nickname 'Iron Bar'.
The Tambrey Tavern in Nickol, which generated in excess of $13 million in annual turnover last financial year, has been listed by CBRE Hotels’ Ryan McGinnity and Chloe Mason on behalf of McGrathNicol and the receivers and managers appointed.  
They are offering The Tambrey, which comprises a tavern, bistro and function centre, and an adjoining 850 sqm bottle shop, on a walk in walk out basis.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/9/4/Tambrey%20Karratha%202.jpg" alt="">
 
The pub turns over around $350,000 a month and the bottle shop over $700,000.
Ryan McGinnity said that uncertainty surrounding Liquor Licence restrictions at the time of a 2017 campaign meant Pilbara operators were facing an uncertain trading future. 
These included proposed blanket reforms for the Pilbara that would stop packaged liquor sales on Sundays and place a limit on takeaway alcohol sales at all other times.
“As the proposed restrictions are now ceased within certain venues and localities, liquor owners and operators are able to confidently invest in Northwest towns such as Karratha,” McGinnity noted.  
 
Chloe Mason added that the well-known venue’s trading and future growth would be underpinned by the region’s permanent population, over 23,000, and its increasing FIFO workforce. 
“The recent announcements around the Perdaman Chemicals and Fertilisers ammonia/urea plant in Karratha and the second stage of Chevron’s Gorgon project, which have a combined development spend in excess of $10 billion, are set to bring thousands of new jobs to the Karratha area,” Ms Mason said. 
 
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