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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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 Waterloo premises of Orangetheory Fitness, one of the world's largest gym franchises, has sold for the second time in just six months.
The 2015 built property last sold for $1,385,000 in May, and this time round sold for an undisclosed price.
The 400 sqm space at <a href="https://www.commercialrealestate.com.au/property/lot-2-17-19-danks-street-waterloo-nsw-2017-2014697781" target="_blank">17-19 Danks Street</a> in the heart of Waterloo has a net passing income of nearly $115,000 per annum.
<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/2018/11/13/orange2.jpg" alt="">
Orangetheory Fitness is signed to a long lease until 2027, with options to 2037. The global fitness industry giant has over 1,000 locations worldwide.
CBRE agents Stephen Grant, Matthew Fenn and Nicholas Heaton marketed the property.
They suggested the future Green Square development in Zetland is expected to bring 61,000 new residents and 22,000 new workers to the area by 2030.
 
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jrobinson-rf4aSBido9

Waterloo home of Orangetheory Fitness sells for second time in six months

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A 7-Eleven service station in North Melbourne has been listed for sale.
The freestanding station at <a href="https://www.realcommercial.com.au/property-retail-vic-north+melbourne-503011626" target="_blank">163-173 Boundary Road</a> is the last stop before the CityLink and sees 50,000 cars pass per day.
Recently rezoned to a commercial 1 zoned land holding, the property on 1,155 sqm has a rare 15 year lease through to 2027.
<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/2018/11/12/serv1.jpg" alt="">
It has options to 2042 and has a net income of $183,049 per annum, with fixed four percent annual rental increases.
The marketing through CBRE advises there is potential for further income through a signage billboard, subject to approval.
It has a November 29 auction.  
 
 
 
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North Melbourne 7-Eleven servo for sale

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Waterview Wharf Workshops, an absolute waterfront office building on the eastern shore of the Balmain peninsula, is seeking tenants.
The building was used as a ship repair yard by the Adelaide Steamship Company since the beginning of the last century.
It is now one of the remaining examples of maritime industrial architecture and has been preserved as a landmark on Sydney Harbour.
The waterfront heritage building at <a href="https://oxfordagency.com.au/commercial_post/23-37-nicholson-street-balmain-nsw-2041/" target="_blank">37 Nicholson Street has two leasing opportunities</a>.
<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/2018/11/12/balmain2.jpg" alt="">
Unit 8 is a 250 sqm absolute waterfront office (top and above) with polished floor boards and high ceilings.
Along with four parking spaces, the office space has a board room and an internal kitchen and bathroom.
Unit 23 spans 116 sqm and has two parking spaces, as well as a kitchen and bathroom.
Shane Blackett and Angelo Gatz at The Oxford Agency are marketing the suites.
 
 
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Is this Sydney's best office view?

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GUEST OBSERVATION
Getting aged care right is difficult. It involves staff training, qualifications and ratios, the entry of for-profit providers and ensuring access in regional areas – many of the issues highlighted in this year’s two-part Four Corners special.
A key challenge, from which must of the rest will flow, is increased funding.
Medicare – an Australian success story – provides one model.
Even the Medicare name works magic. The Medicare levy has been appropriated and boosted in order to brand and part-fund the National Disability Insurance Scheme.
We could do a Medicare
Medicare takes its features from both the public and the private sector. It is framed as an insurance levy, but unlike most insurance levies, it is linked to income. This means it reflects ability to pay rather than the likelihood of getting sick. As a result, it is affordable for everyone.
There have been many proposals to do something similar with aged care.
To date policymakers have instead opted for another common Australian funding model – combining user payments with a safety net of public funding for those without means or facing high costs.
The Productivity Commission has consistently plumped for this model over a more universal funding system, although there is little evidence that user fees are effective as a funding source.
So why not introduce an aged care levy on income?
But would that be right for aged care?
Oddly, the main argument against an income-based levy revolves around equity. Older people are income-poor but asset-rich. An income levy would set them back little even though they have been the primary beneficiaries of the enormous increase in house prices.
It would be paid instead by younger workers who are often facing insecure work, stagnant wages and expensive housing.
It’s a reasonable objection, and it drives much of the Productivity Commission’s thinking. The commission has focused instead on helping older people draw down their housing wealth to fund aged care payments.
But this too has problems. It can discourage preventive forms of care and it requires vulnerable people entering care to make complex financial decisions.
Tapping superannuation might be better
A third way, suggested by aged care expert Anna Howe, is to use superannuation.
After all, super is supposed to fund our post-work life, and aged care is a big part of that.
Despite more than $2.5 trillion being amassed in super, it does a poor job of providing either income security or security of care for older people. These responsibilities continue to fall on government.
Income within super is taxed unfairly
Super is also taxed very differently to other income. The rest of the income tax system is progressive, so those with higher incomes pay higher rates of tax. Income within super funds faces a flat tax.
For most people that matters little, but it creates enormous gains for those on very high incomes, which are made even bigger when they direct what extra income they can to super.
The flat tax on super earnings costs the budget A$23.25 billion per year. The Treasury says that’s set to climb to A$28.95 billion in 2020-21, a growth rate that dwarfs the projected growth in the cost of the pension.
Efforts to curb the cost to the budget of super tax concessions have largely focused on limiting how much extra cash we put into it.
But most of the cost comes from the income earned by money already in super.
Taxing it better could fund aged care
A Medicare-style insurance levy applied to the income earned by money within super would in principle be no different to the insurance premiums already taken from super accounts.
And it wouldn’t be paid by the young while they are young. Given that younger workers can’t access super until retirement, it would effectively be a levy on their future super wealth.
And because older people have larger super accounts than younger people earning more income to be taxed, the levy would fall far more heavily on baby boomers than younger generations.
And address gender equity
This approach would also address another important justice question – gender equity. Men have much more super than women.
That partly reflects the gender pay gap, but also the unpaid work gap, in which women typically spend more of their working lives than men out of paid work caring for family members.
Ironically, it is women who then rely more heavily on paid care in older age, largely because they outlive their partners. Women provide men’s care for free, but then pay for their own.
A levy on (mainly) men’s super would help even the books.
But the details would matter
A fair way to do it would be to apply the levy to super fund income only when it climbed to a threshold of (say) A$5,000 a year. That way it would protect small accounts while helping close the tax loophole enjoyed by those on the highest incomes.
All of us have an interest in properly funded aged care. More properly taxing super fund income would be one way to do it.<img src="https://counter.theconversation.com/content/103767/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Ben Spies-Butcher, Senior Lecturer in Economy and Society, Department of Sociology, Macquarie University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/two-birds-with-one-stone-how-better-taxing-super-could-fund-aged-care-103767" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

How better taxing super could fund aged care: Ben Spies-Butcher

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GUEST OBSERVATION
Transport, mobility and congestion continue to be <a href="https://theconversation.com/our-new-pm-wants-to-bust-congestion-here-are-four-ways-he-could-do-that-102249" target="_blank">hotly debated topics</a> in politics, the media, academia and soon at the <a href="http://www.urbanmotion.com.au" target="_blank">Urban Motion</a> conference in Brisbane. And rightly so.
The Australian Bureau of Statistics counted <a href="https://www.propertyobserver.com.au/http://www.abs.gov.au/ausstats/abs@.nsf/mf/9309.0" target="_blank">19.2 million registered motor vehicles</a> in Australia as at January 31 2018. While the human population grew by 27% since the turn of the century, vehicle numbers <a href="https://www.theaustralian.com.au/news/inquirer/if-car-ownership-keeps-growing-australians-will-be-outnumbered/news-story/92f65fe440421d9ede7155e895db723c" target="_blank">increased by 43%</a> and continue to grow in all states and territories.
The Australian House of Representatives Standing Committee on Infrastructure, Transport and Cities recently released a comprehensive report, <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/House/ITC/DevelopmentofCities/Report" target="_blank">Building Up &amp; Moving Out</a>, on its inquiry into the Australian government’s role in the development of cities. The committee recommends:
"… the Australian Government, in conjunction with State and Territory Governments, undertake the development of transport networks which allow for fast transit between cities and regions, and within cities and regions, with a view to developing a more sustainable pattern of settlement based on the principle of accessibility at a local, regional and national level. The Committee further recommends that the development of a fast rail or high speed rail network connecting the principal urban centres along the east coast of Australia be given priority, with a view to opening up the surrounding regions to urban development."
The committee further recommends the <a href="https://theconversation.com/the-30-minute-city-how-do-we-put-the-political-rhetoric-into-practice-56136" target="_blank">30-minute city</a>, <a href="https://theconversation.com/cycling-and-walking-are-short-changed-when-it-comes-to-transport-funding-in-australia-92574" target="_blank">active transport</a> and a more sustainable urban form (Recommendation 11).
<iframe src="https://www.youtube.com/embed/ciJEHGMtpWc?wmode=transparent&amp;start=0" frameborder="0" width="440" height="260"></iframe>
Global Mobility Index by the World Economic Forum and MIT Senseable City Lab, showing how people move in 100 cities around the world. Congestion levels calculated using real-time traffic-monitoring data, commuting time and the estimated percentage of trips that could be shared if citizens were willing to wait five minutes to share a trip.
Leading up to the report’s launch, many of the inquiry’s submissions and expert witness accounts stressed the need to arrest urban sprawl and heed well-established research advice. All levels of government often ignore this advice to appease voters, but more roads and more lanes make matters worse.
<a href="https://www.linkedin.com/pulse/transport-lies-opinion-piece-graham-currie-ftse/" target="_blank">Transport research</a> provides clear evidence that increasing road capacity is a shortsighted band-aid that increases car travel. It also promotes driving dependency and ultimately makes congestion worse.
Many of the report’s transport-related aspirations point in the right direction. Yet many of them are not new and come with their own set of challenges.
Proposals to solve Australia’s mobility crisis appear to be dominated by technocentric optimism – a strong belief that new technology and disruptive innovation will somehow make it all better. Contenders for the transport panacea include car-sharing and ride-sharing platforms, electric vehicles, autonomous vehicles, <a href="https://theconversation.com/why-trackless-trams-are-ready-to-replace-light-rail-103690" target="_blank">trackless trams</a> and more efficient traffic flow systems enabled by smart city investments in IoT (Internet of Things) sensors, big data analytics and urban science. Let’s debunk some of this.
More disruption?
The notion of disruptive innovation is often believed to bring about change for the better. One of the most commonly mentioned examples is Uber and similar commercial ride-sharing platforms. They certainly disrupted the established taxi industry. But cabs are no longer their main competitor.
Uber launched the “<a href="https://www.theage.com.au/national/victoria/will-melburnians-dive-into-real-ride-sharing-with-uberpool-20180607-p4zk08" target="_blank">Pool</a>” feature, which optimises routes so more than one rider can share the same car. As a result, the cost per ride now <a href="https://www.theguardian.com/sustainable-business/2017/jan/13/uber-lyft-cars-public-transport-cities-commuting" target="_blank">competes with public transport</a> rather than just cabs. And this risks making inner-city traffic <a href="https://www.washingtonpost.com/news/dr-gridlock/wp/2018/07/25/a-new-study-says-services-like-uberpool-are-making-traffic-worse/" target="_blank">worse</a>.
More driverless cars?
Another often-cited disruptive innovation involves autonomous vehicles and <a href="https://theconversation.com/the-winners-and-losers-in-the-race-for-driverless-cars-63874" target="_blank">driverless cars</a>. While they may come with <a href="https://theconversation.com/driverless-cars-could-create-new-jobs-in-a-welcome-boost-to-australias-motor-industry-89972" target="_blank">economic</a> and <a href="https://www.theiet.org/resources/books/transport/lowcarbmob.cfm" target="_blank">environmental</a> benefits, there are as yet <a href="https://theconversation.com/driverless-vehicles-could-bring-out-the-best-or-worst-in-our-cities-by-transforming-land-use-84127" target="_blank">unresolved issues</a>.
For example, the <a href="https://theconversation.com/of-cats-and-cliffs-the-ethical-dilemmas-of-the-driverless-car-49778" target="_blank">ethics in AI can cost people’s lives</a>, road usage funding and taxation are unclear, and the average car occupancy can drop below one. As a result, without regulatory intervention, self-driving cars will <a href="https://www.nytimes.com/2018/10/27/technology/driverless-cars-congestion" target="_blank">not reduce congestion</a> but <a href="https://www.ptua.org.au/myths/robotcar/" target="_blank">add traffic</a> to the roads.
More efficiency?
Transport offers vast room for improvement, so it is not surprising that optimisation is a low-hanging fruit. The <a href="https://www.ellenmacarthurfoundation.org/publications/growth-within-a-circular-economy-vision-for-a-competitive-europe" target="_blank">Ellen MacArthur Foundation</a> identified significant structural waste not only in fuel tank-to-wheel energy flow but also in road utilisation.
<a href="https://images.theconversation.com/files/242864/original/file-20181030-76413-arqq.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/242864/original/file-20181030-76413-arqq.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<a class="source" href="https://www.ellenmacarthurfoundation.org/publications/growth-within-a-circular-economy-vision-for-a-competitive-europe" target="_blank">Ellen MacArthur Foundation, Growth Within: a circular economy vision for a competitive Europe</a>, Author provided
Researchers at MIT and ETHZ propose a <a href="https://dusp.mit.edu/transportation/news/death-traffic-light" target="_blank">slot-based intersection</a> that would double the usual capacity and herald the “death of the traffic light”.
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MIT Senseable City Lab has developed slot-based intersections that could replace traditional traffic lights, greatly reducing queues and delays. Sensor-laden vehicles pass through intersections by communicating and remaining at a safe distance from each other, rather than grinding to a halt at the lights.
These efficiency gains are welcome. Yet, considering the ever-increasing demand for mobility, these measures on their own will not solve our mobility crisis.
Wanted: leadership!
What is seldom questioned is the need to travel in the first place. The right to mobility and freedom to move locally and globally are undoubted. But it is worth asking what regulatory instruments and economic shifts can produce sustainable mobility.
Some examples that have started making their way into the mobility debate include the impact of <a href="https://eprints.qut.edu.au/96279/" target="_blank">nomadic work</a> practices on transport demand and distributed <a href="https://eprints.qut.edu.au/116358/" target="_blank">co-working spaces</a> to reduce the need for CBD commutes.
Progressive policy interventions, such as <a href="https://theconversation.com/traffic-congestion-is-there-a-miracle-cure-hint-its-not-roads-42753" target="_blank">road congestion charges</a> and <a href="https://www.theguardian.com/world/2018/feb/14/german-cities-to-trial-free-public-transport-to-cut-pollution" target="_blank">free public transport</a>, lack the backing of political leadership in Australia.
Longer term, there is an urgent need to seriously consider even bolder policy innovation. We can learn from overseas examples, such as the six-hour work day, the four-day work week and the <a href="https://theconversation.com/we-should-create-cities-for-slowing-down-75689" target="_blank">slow city</a> movement, which is more about slowing down the “hamster wheel” of life than traffic. We should also evaluate <a href="https://greenagenda.org.au/2018/06/ecological-human-settlement-theory/" target="_blank">new approaches to human settlement</a> as well as what impact <a href="https://theconversation.com/australians-support-universal-health-care-so-why-not-a-universal-basic-income-91572" target="_blank">universal basic income</a> or <a href="https://www.ucl.ac.uk/bartlett/igp/news/2017/oct/igps-social-prosperity-network-publishes-uks-first-report-universal-basic-services" target="_blank">universal basic services</a> can have on reducing traffic congestion.
There are opportunities to join this debate at the <a href="http://www.urbanmotion.com.au" target="_blank">Urban Motion</a> conference in Brisbane on November 19-20 2018. We also invite participants to support the <a href="http://lowcarbonlivingcrc.com.au/FutureCities" target="_blank">Future Cities CRC</a> bid recently <a href="https://www.minister.industry.gov.au/ministers/karenandrews/media-releases/applicants-shortlisted-deliver-new-industry-focused-research" target="_blank">shortlisted</a> by the Australian government.
<hr>
Marcus Foth, Professor of Urban Informatics, Queensland University of Technology.
This article is based on the presentation “Smart Cities are Slow Cities” at the <a href="http://www.real-world-futures.qut.edu.au/future-living/" target="_blank">QUT Real World Conversation</a> forum on August 2 2018.<img src="https://counter.theconversation.com/content/105959/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/smart-mobility-alone-is-no-substitute-for-strong-policy-leadership-105959" target="_blank">original article</a>.
Most transport resources are being used inefficiently. The Canberra Transport Photo shows the road space required to move 69 people using public transport, bicycles and private motor vehicles. <a href="https://www.cyclingpromotion.org/canberra-transport-photo" target="_blank">Cycling Promotion Fund</a>, <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">CC BY</a>
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Smart mobility alone is no substitute for strong policy leadership: Marcus Foth

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Coles are selling the Kedron Coles Shopping Centre, north of Brisbane, just a year after it opened.
Four years ago Coles Group submitted an application to the Brisbane City Council to build the supermarket on the 9,550 square metre site at <a href="https://www.commercialrealestate.com.au/property/346-gympie-road-kedron-qld-4031-2014718303" target="_blank">346 Gympie Road</a>.
The state of the art premises has a Coles supermarket and Liquorland store supported by a Coles Express Service Station and cafe Coffee Guru.
<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/2018/11/12/Coles2.jpg" alt="">
The supermarket features an in-store bakery, an open-style butchery and 200 undercover and shaded car parks.
Completed last year, the property is 100% leased, with 96% of the tenancy coming from Coles.
Coles has a new 15-year net lease of the near 4,100 square metres lettable space. The total returns at $1,848,633 per annum.
It has exposure to 31 million cars per annum.
Savills agents Steven Lerch, Ben Parkinson and Peter Tyson are marketing the property.
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Kedron Coles Shopping Centre listed

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The recently closed Leinster Arms Hotel building has been listed for sale for $3.8 million.
It is being sold as vacant possession after long-time publicans Glen and Wilhelmina McGee closed the doors after AFL Grand Final Day, having been in charge of the landmark establishment for 18 years.
The 1860s building last traded for $208,500 in 1991.
<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/2018/11/12/lein2.jpg" alt="">
It was a regular for the late notorious crime figure Mark 'Chopper' Read.
The Leinster Arms Hotel at 66 Gold Street has 50 metres of prime street frontage from its near 600 square metre corner site.
It has a front bar, lounge and dining area, two function rooms, commercial kitchen, bricked bistro garden atrium and two outdoor beer gardens.
The sale through CBRE Hotels includes a 1am General Liquor Licence.
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jonathanchancellor-7SQnKwU6yx

Collingwood's Leinstar Arms Hotel building for sale

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EXPERT OBSERVER
The Reserve Bank has released its November Statement on Monetary Policy and a major interest is always in any revisions to its output, employment and inflation forecasts.
In that regard, we were a little surprised that the forecast for growth in 2019 remained at 3 ¼ per cent. That is because in the Governor’s Decision Statement following the November Board meeting, he noted “the forecast for economic growth in 2018 and 2019 have been revised up a little."
The central scenario is for GDP growth to average around 3 ½ per cent over these two years”. That seemed to point to an upward revision for the 2019 forecast but instead it remains 3 ¼ per cent.
However, there is some recognition of stronger growth in the second half of 2019 since growth through to June 2020 has been revised up from 3 to 3 ¼ per cent.
It is true however, that growth in 2018 has been revised up to 3 ½ per cent from 3 ¼ per cent, although that largely reflects a higher starting point given that the previous estimate of growth to June 2018 was lifted from 3 per cent to 3.4% actual.
The forecast for 2019, nevertheless, is significantly higher than Westpac’s forecast of 2.7%.
This can largely be explained by an assessment by the RBA that there will be no marked reduction in residential construction activity in 2019 and limited reduction in 2020. Secondly, the assumption is that household consumption growth will be sustained at around the current 3 per cent pace over the forecast period.
With regards to the residential construction cycle, the assumption is that the fall in building approvals, which is already apparent and the information the RBA has received from its liaison contacts in the industry that off-the-plan sales have slowed significantly, will not significantly impact activity until beyond 2020.
This seems to overlook evidence of a clear slowdown in non high-rise approvals, the likelihood of an increase in abandonments of approvals which are already in the system, and evidence, which the RBA notes, that “lot sales for new detached housing have also declined sharply in Sydney and Melbourne since late 2017”.
Instead we assess that all of these forces point to a more significant reduction in dwelling construction in 2019 and 2020 than the RBA is expecting.
The view around consumption growth being sustained at 3 per cent looks courageous. It relies on ongoing growth in employment despite a clear slowing through 2018, the elusive pick-up in wages growth, and only a relatively small wealth effect that might be related to the ongoing falls in house prices and associated household wealth. We would expect that with the savings rate down at around 4 per cent, this wealth effect is likely to be more significant.
There has also been an increase in the forecast for underlying inflation for the year to December 2019 from 2 per cent in the August SoMP to 2 ¼ per cent. With the recent September quarter inflation report confirming that underlying inflation is running at 1 ¾ per cent, this forecast lift of ½ per cent in underlying inflation looks to be optimistic.
The justification behind this increase is around expected faster wages growth and a larger reduction in the output gap due to the above trend growth in 2018 and 2019.
The history of underlying inflation indicates that a ½ per cent jump over the course of one year seems optimistic given the correction in housing that is underway.
The RBA’s analysis of the prospects for wages growth is tentative. In fact, it points out that “wage outcomes from enterprise bargaining agreements are likely to remain a drag on overall wages growth” and also points to its liaison work which notes that “there is still spare capacity in the labour market”.
Appropriately, the SoMP spends some time referring to international evidence which indicates that Australia’s unemployment rate could fall well below historical estimates of the NAIRU “before there is a material increase in wages growth”.
This evidence refers to globalisation, technological change, and changes in relative bargaining power. Other major risks to this inflation forecast relate to ongoing competitive forces in the retail sector and “a risk of further declines in administered prices” due to government initiatives to reduce cost of living pressures.
As was indicated in the Governor’s Decision Statement, the forecast for the unemployment rate has been lowered. However, this appears to be a cautious ‘mark-to-market’ exercise.
In August, the forecast was for the unemployment rate to fall from 5 ½ per cent in December 2018 to 5 per cent by December 2020.
The new forecast is for the unemployment rate to fall from 5 per cent in December 2018 (recognising the most recent employment report) to 4 ¾ per cent in December 2020.
The discussion around the risks of a lower NAIRU would suggest only a very limited prospect of resurgent wage pressures should the unemployment rate only fall by a ¼ per cent in two years.
It is difficult for a central bank to acknowledge political risks but with a Federal election certain to be called in 2019, the uncertainty/ confidence factor associated with such an event might also have been incorporated in the forecasts.
But their assumption around employment growth, income growth and business investment seems to indicate no effect taken into account – both construction activity and machinery and equipment investment are expected to be boosted.
Conclusion
On face value, the stronger growth and higher inflation forecasts might imply that the RBA is closer to raising rates than we have expected. That may well be the case from their perspective. But if the economy evolves as we expect with a slowdown in consumer spending, a contraction in residential investment, and softer confidence partly linked to global uncertainty, the RBA’s growth and inflation forecasts are unlikely to be achieved.
Of course, it will take some time for these developments to be apparent and based on the Governor’s comment “the Board does not see a strong case to adjust the cash rate in the near-term”, we have ample time for the outlook to evolve without a surprise policy adjustment based on these forecasts.
Westpac confirms its view that the cash rate will remain on hold through 2018, 2019 and 2020.  
BILL EVANS is chief economist of <a href="https://www.westpac.com.au/" target="_blank">Westpac</a>.
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RBA wrong to rely on small wealth effect given ongoing falls in house prices: Bill Evans

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Two developers have joined forces for a new $40 million Fortitude Valley development.
Pellegrino Group Australia (PGA) and Mosaic Property Group will work together on the commercial and retail building, The Eminence, which was designed by Justin O’Neill of O’Neill Architecture.
The six-level A-grade building  to be built at 89 McLachlan Street will offer 3,500 square metres of commercial space and 305 square metres of retail space. 
Construction is set to commence mid-November 2018 with completion estimated for late 2019.
Pellegrino Group Australia Director Paul Pellegrino says both PGA and Mosaic Property Group are excited by the project.
“The Eminence has been specifically designed to provide optimal work-life balance with inspiration taken from co-working spaces to make it a flexible corporate environment for years to come,” Pellegrino said.
“It’s a boutique building that’s built to give those businesses with a smaller footprint in Brisbane, bigger exposure – something larger corporate buildings generally can’t offer.” 
Both developers will take up office space in the building.
Mosaic Property Group Founder and Managing Director, Brook Monahan said the McLachlan Street site was chosen after an extensive two-year search for a new headquarters for their company.
“We had a very stringent set of criteria for the property that would house our team and meet our requirements well into the future,” Monahan said.
“The Eminence was the first property that met this criteria as an asset that we wanted to hold longer term.
 “While the building is cutting edge in terms of design and technology, it is also surrounded by exceptional amenity being in the heart of the James Street lifestyle precinct.
“At the heart of the inner-north Urban Renewal precinct the area is full of life and energy and has significant room for continued market growth.
“We also felt that the Pellegrino Group was an excellent fit as a JV partner because of their shared values as an organisation.”
Two levels of the office building remain available for lease through agents Gerry Leyden and Michael Skaparis of CBRE and Alex Cameron and Sam Barr of JLL.
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Pellegrino Group Australia and Mosaic Property Group announce joint Fortitude Valley venture

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EXPERT OBSERVER
The Australian Bureau of Statistics (ABS) released housing finance data for September 2018 earlier today and it showed a further weakening of demand for mortgages.
Over the month, the total value of housing finance commitments was recorded at $29.1 billion which was the lowest monthly value since August 2014.
While the decline in finance commitments over recent times has been primarily driven by investors, owner occupier demand is now also clearly easing.
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Over the month, the $29.1 billion worth of housing finance commitments was split between $19.4 billion to owner occupiers and $9.8 billion to investors. 
The $19.4 billion worth of commitments to owner occupiers was its lowest monthly value since July 2015 while the $9.8 billion to investors was its lowest monthly value since July 2013. 
Lending to owner occupiers in September 2018 was -9.4% lower than its monthly peak in February 2018. Housing finance commitments to investors in September 2018 was -33.8% lower than its April 2015 monthly peak.
Click here <a href="https://www.propertyobserver.com.au/images/2018/11/Cam2.jpg" target="_blank">to enlarge.</a>
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In terms of the different types of owner occupier housing finance commitments, each of the four categories recorded a fall over the month while year-on-year, refinance was the only segment that was higher. 
Importantly, the two largest components of lending to owner occupiers; refinance and purchase of established were -15.9% and -12.9% below their historic peaks in September 2018. 
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It is a similar story for investors with demand falling across both new construction and established properties, both of which are lower over the month and year-on-year.
 In fact the September 2018 value of lending to investors for new construction was -46.9% below its peak while lending for established properties was -35.6% lower.
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As investor demand has faded from the housing market, demand from owner occupier first home buyers had been trending higher. 
This lift was largely on the back of introductions of stamp duty free or stamp duty reduced purchases for first home buyers under certain price points in NSW and Vic which became available in July 2017. More recently the data is pointing to an easing of demand from first home buyers. 
In September 2018 there were 8,693 owner occupier first home buyer commitments which was both lower than the previous year (9,618) and the previous month (9,534). In fact the 8,693 commitments was the lowest monthly number since January 2017 (note the data isn’t seasonally adjusted so January is always much lower than other months) other than that you’d have to go back to June 2017 to see commitments so low (the month prior to stamp duty concession going live in NSW and Vic). 
Given the ongoing declines in dwelling values, particularly in Sydney and Melbourne, and the now apparent declines in owner occupier and investor housing finance commitments, it is hard to see a reversal in dwelling value declines or a lift in sales activity any time soon.
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As activity reduces, housing inventory is building up, providing more choice for buyers and little in the way of urgency to make a purchase decision.
The upcoming pause for Christmas and New Year may see some adjustment in the New Year but even that looks unlikely. For the coming months it is expected mortgage demand will continue to fall as will dwelling values.
CAMERON KUSHER is a property research analyst for CoreLogic
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