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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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

Joel Robinson

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

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

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

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

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

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

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

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

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

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

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

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

<html><body>
Credit growth has been slowing as the housing sector cools in response to tighter lending conditions.
However, in the September quarter, a burst of strength in the business segment provided some temporary respite.
Total credit grew by 0.4% in the month of September, including a 0.35% rise for housing and a 0.6% expansion in business
Annual credit growth is 4.6% currently, moderating from 5.3% a year ago. Housing growth has eased to 5.2% from 6.6% over this period. Business grew by 4.4% over the past year, up a fraction from 4.2% a year earlier. Personal credit continues to contract, down 0.9% in the year to September 2017 and falling by a further 1.5% over the past year.
Business credit remains volatile around a modest uptrend. The September quarter saw a brisk rise of 2.0%, up sharply from gains in the three previous quarters (0.9%, 0.8% and 0.6%). The pace of the past three months is unlikely to be sustained given the current economic and financial backdrop.
On housing, indicators point to a further cooling of conditions. House prices have turned, moving lower following a strong run, and dwelling approvals are down from the 2016 peak and are likely to move lower still after an extended upswing, to bring them more in line with underlying requirements.
Tighter lending conditions and rising funding costs will continue to weigh on the housing sector over coming months - recall that 3 of the 4 major retail banks raised mortgage rates over August and September.
Momentum in housing credit, as measured by 3 month annualised growth, has slowed progressively from a peak of 6.8% in May 2017 to be 4.7% currently.
Tighter lending conditions were largely directed at the investor market. The upshot is a marked slowing in investor credit growth. For the three months to September, investor credit almost stalled, advancing by only 1.4% annualised.
The slowing in the owner-occupier market has been less pronounced - but the trend is lower. The 3 month annualised pace for owner-occupier housing credit is 6.4% currently, a moderation from a peak of 8.7% last July.
Turning to business credit, this is volatile around a modest uptrend, as noted above. Annual growth is 4.4% currently - three months earlier it dipped to 3.2%.
In 2017, the business mood improved, mirroring the global trend. This has translated into an increase in business investment in the real economy by the non-mining sectors.
Currently, business credit growth is undershooting growth in non-mining business investment, the reverse of the experience in recent years, suggesting a greater reliance by businesses on other sources of funding, including retained earnings.
Andrew Hanlan is a Senior Economist for Westpac
</body></html>

j.ballantyne1990-6AQqhLzZaK

Credit growth slowing as housing sector cools, responding to tighter lending conditions: Andrew Hanlan

<html><body>
EXPERT OBSERVER
It is hard to find signs of rising inflationary pulse
The September Quarter CPI printed 0.4%qtr, compared to the market median and Westpac’s forecast for 0.5%. At 2 decimal places the rise in the CPI was 0.44%qtr so a sound 0.4% but it was the third consecutive 0.4% print holding the six month annualised pace at 1.6%yr. With base effects, the annual rate has eased back to 1.9%yr compared to 2.1%yr in Q2, 1.9% in Q1 and 2017 Q4 and 1.8%yr in Q3. Inflation continues to bump along just at, or just under, the bottom of the RBA’s target band.
Following the December quarter 2017 CPI we argued that searching for inflation in the Australian economy has been a fruitless as Vladimir and Estragon’s wait for Godot. This has not changed as we are still waiting to see how long this record breaking performance can continue. There were some hints in the September suggesting this scenario has much longer to run.
The average of the core measures, which are seasonally adjusted and exclude extreme moves, rose 0.3%qtr meeting our expectations. In the quarter, the trimmed mean gained 0.37% while the weighted median lifted 0.28%. The annual pace of the average of the core measures printed 1.7%yr, a further deceleration from 1.7%yr in Q2 2018 and 2.0% in Q1.
Incorporating revisions, the six month annualised growth in core inflation is only 1.5%yr which is well below the bottom of the RBA target band and the slowest pace September 2016.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/Sept_OCt18/sept18CPIchart.JPG" alt="CPI " title="history">
Components of the CPI broadly as expected but some interesting surprises in the finer details
Some standout in the quarter – on the positive side there was a bump from food (0.5%),and surprising rise for clothing &amp; footwear (0.2% vs –0.3% expected), rising auto fuel (1.4%) and a larger than expected seasonal bump in holiday travel (3.3%). On the downside, the bump from tobacco was less than expected (just 1.8%) while health costs fell more than expected (–0.4%), car prices fell again (–0.1%) and the fall in household content &amp; services was larger than expected (–1.2%) with a larger than expected 12% fall in child care. We had highlight child care as a clear risk to our forecasts.
The most interesting new bit of information in the survey was for housing expenditure. While housing costs overall rose as expected (0.4%) rents rose 0.2% (we thought they would be flat), dwelling prices rose just 0.1% (we thought 0.4%) while utilities rose 0.8% vs our –0.4% expected. Overall the mix on housing is softer than expected as there are a number of near term negative risks for both rents and dwelling purchase costs in NSW and Victoria. Given that rents and dwelling purchases are worth around 15% of the CPI their own this is significant for headline and inflation even more so for core where their weight is somewhat higher.
<img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/Sept_OCt18/Sep18CPIcontribs.JPG" alt="CPI " title="contribs">
Tradables rose 0.8% in the September quarter. The tradable goods component rose 0.4% due to automotive fuel (1.4%), fruit (2.4%), furniture (1.9%), and vegetables (1.6%). The tradable services component rose 4.0% due to international holiday travel &amp; accommodation (4.3%).
Non-tradables rose 0.3% in September quarter. The non-tradable goods component rose 0.5% due to tobacco (1.8%), beer (0.9%) and takeaway &amp; fast foods (0.7%). The non-tradable services component rose 0.1% due to domestic holiday travel &amp; accommodation (2.4%) and property rates &amp; charges (2.3%).
Low inflation remains embedded in the economy
We have now two consecutive years where forecasters have over-estimated the CPI print. The average error since the December quarter 2016 is +0.14ppt. Core inflation came in below expectations (0.3%qtr vs 0.4%qtr expected) but there error on core inflation is more random and does not have a consistent bias. The average error on core since December 2016 is just 0.006ppt. So analysts are broadly getting the core inflation pulse corrected but are still underestimating the disinflationary pulse which has seen greater than usual discounting in some sectors \which are then trimmed out of the core measures.
There are some isolated inflationary pressures; rising petrol and tobacco prices are clear standout as well as embryonic indicators that disinflationary pulse in retail may be easing but the moderation in housing costs (rents and dwelling purchases in particular) are a significant offset. This is significant as this group weighting means it has a meaningful impact on the estimates of both inflation and core inflation. As such, with core inflation well below the bottom of the RBA’s target band we can find little to suggest any risk of a meaningful acceleration.
Our preliminary estimate for the 2018 Q3 CPI is 0.7%qtr which will see the annual pace lift a touch to 2.0%yr as the recent rise in petrol prices makes a larger contribution in the December quarter. We are also expecting a modest recovery in dwelling purchase prices. Under our current scenario, even with a modest lift in housing costs and rising fuel prices inflation, inflation is expected to be at, or just under, 2.0%yr all the way out to end 2019.
On a festive note the ABS reports that this is the 70th birthday of the CPI in it’s current form – the index has quarterly history that goes back to the September quarter 1948.
Justin Smirk is a Senior Economist at Westpac
<div style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">
<h1 style="box-sizing: border-box; font-size: 36px; margin: 18px 0px; color: #621a4b; font-family: ChronicleSemibold, 'Times New Roman', Times, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; line-height: 1.1;">It is hard to find signs of rising inflationary pulse</h1>
</div>
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">The September Quarter CPI printed 0.4%qtr, compared to the market median and Westpac’s forecast for 0.5%. At 2 decimal places the rise in the CPI was 0.44%qtr so a sound 0.4% but it was the third consecutive 0.4% print holding the six month annualised pace at 1.6%yr. With base effects, the annual rate has eased back to 1.9%yr compared to 2.1%yr in Q2, 1.9% in Q1 and 2017 Q4 and 1.8%yr in Q3. Inflation continues to bump along just at, or just under, the bottom of the RBA’s target band.
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">Following the December quarter 2017 CPI we argued that searching for inflation in the Australian economy has been a fruitless as Vladimir and Estragon’s wait for Godot. This has not changed as we are still waiting to see how long this record breaking performance can continue. There were some hints in the September suggesting this scenario has much longer to run.
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">The average of the core measures, which are seasonally adjusted and exclude extreme moves, rose 0.3%qtr meeting our expectations. In the quarter, the trimmed mean gained 0.37% while the weighted median lifted 0.28%. The annual pace of the average of the core measures printed 1.7%yr, a further deceleration from 1.7%yr in Q2 2018 and 2.0% in Q1.
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">Incorporating revisions, the six month annualised growth in core inflation is only 1.5%yr which is well below the bottom of the RBA target band and the slowest pace September 2016.
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;"><img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/Sept_OCt18/sept18CPIchart.JPG" alt="CPI " title="history" style="box-sizing: border-box; max-width: 100%;">
<div style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">
<h1 style="box-sizing: border-box; font-size: 36px; margin: 18px 0px; color: #621a4b; font-family: ChronicleSemibold, 'Times New Roman', Times, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; line-height: 1.1;">Components of the CPI broadly as expected but some interesting surprises in the finer details</h1>
</div>
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">Some standout in the quarter – on the positive side there was a bump from food (0.5%),and surprising rise for clothing &amp; footwear (0.2% vs –0.3% expected), rising auto fuel (1.4%) and a larger than expected seasonal bump in holiday travel (3.3%). On the downside, the bump from tobacco was less than expected (just 1.8%) while health costs fell more than expected (–0.4%), car prices fell again (–0.1%) and the fall in household content &amp; services was larger than expected (–1.2%) with a larger than expected 12% fall in child care. We had highlight child care as a clear risk to our forecasts.
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">The most interesting new bit of information in the survey was for housing expenditure. While housing costs overall rose as expected (0.4%) rents rose 0.2% (we thought they would be flat), dwelling prices rose just 0.1% (we thought 0.4%) while utilities rose 0.8% vs our –0.4% expected. Overall the mix on housing is softer than expected as there are a number of near term negative risks for both rents and dwelling purchase costs in NSW and Victoria. Given that rents and dwelling purchases are worth around 15% of the CPI their own this is significant for headline and inflation even more so for core where their weight is somewhat higher.
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;"><img src="https://westpaciq.westpac.com.au/wibiqauthoring/_uploads/image/bulletin/Justin_Images/Sept_OCt18/Sep18CPIcontribs.JPG" alt="CPI " title="contribs" style="box-sizing: border-box; max-width: 100%;">
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">Tradables rose 0.8% in the September quarter. The tradable goods component rose 0.4% due to automotive fuel (1.4%), fruit (2.4%), furniture (1.9%), and vegetables (1.6%). The tradable services component rose 4.0% due to international holiday travel &amp; accommodation (4.3%).
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">Non-tradables rose 0.3% in September quarter. The non-tradable goods component rose 0.5% due to tobacco (1.8%), beer (0.9%) and takeaway &amp; fast foods (0.7%). The non-tradable services component rose 0.1% due to domestic holiday travel &amp; accommodation (2.4%) and property rates &amp; charges (2.3%).
<div style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">
<h1 style="box-sizing: border-box; font-size: 36px; margin: 18px 0px; color: #621a4b; font-family: ChronicleSemibold, 'Times New Roman', Times, -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; line-height: 1.1;">Low inflation remains embedded in the economy</h1>
</div>
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">We have now two consecutive years where forecasters have over-estimated the CPI print. The average error since the December quarter 2016 is +0.14ppt. Core inflation came in below expectations (0.3%qtr vs 0.4%qtr expected) but there error on core inflation is more random and does not have a consistent bias. The average error on core since December 2016 is just 0.006ppt. So analysts are broadly getting the core inflation pulse corrected but are still underestimating the disinflationary pulse which has seen greater than usual discounting in some sectors \which are then trimmed out of the core measures.
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">There are some isolated inflationary pressures; rising petrol and tobacco prices are clear standout as well as embryonic indicators that disinflationary pulse in retail may be easing but the moderation in housing costs (rents and dwelling purchases in particular) are a significant offset. This is significant as this group weighting means it has a meaningful impact on the estimates of both inflation and core inflation. As such, with core inflation well below the bottom of the RBA’s target band we can find little to suggest any risk of a meaningful acceleration.
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">Our preliminary estimate for the 2018 Q3 CPI is 0.7%qtr which will see the annual pace lift a touch to 2.0%yr as the recent rise in petrol prices makes a larger contribution in the December quarter. We are also expecting a modest recovery in dwelling purchase prices. Under our current scenario, even with a modest lift in housing costs and rising fuel prices inflation, inflation is expected to be at, or just under, 2.0%yr all the way out to end 2019.
<p style="box-sizing: border-box; color: #2d373e; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Fira Sans', 'Droid Sans', 'Helvetica Neue', sans-serif; font-size: 14px;">On a festive note the ABS reports that this is the 70th birthday of the CPI in it’s current for – the index has quarterly history that goes back to the September quarter 1948.
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It is hard to find signs of rising inflationary pulse: Westpac's Justin Smirk

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A site of six amalgamated properties is on the market in Bondi Junction, with price expectations around $40 million.
Charles McKenzie and Trent Gallagher of Colliers International are selling the 2,679 sqm parcel alongside James Nixon of Belle Property through an international expressions of interest campaign.
Notably, owners Steve and Carmen Davidson have been approached numerous times to sell the site, prior to it being launched to market.
The six properties for sale in one line have an Oxford Street frontage and prominent corner location Denison Street and Mill Hill Road.
The four commercial and two residential properties are located at 45, 47-49 and 53-57 Oxford Street; 5-7, 9 Denison Street and 2 Mill Hill Road at Bondi Junction.
<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/2018/10/31/Bondi%20Junction%202.jpg" alt="">
Trent Gallagher, National Director, Sales and Leasing at Colliers International said, “The site is surrounded by major destinations and is just 300 m from Bondi Junction’s main transport interchange and 40 0m from Westfield’s Bondi Junction Mall.
James Nixon of Belle Property said, “With B4 Mixed use zoning, this site gives investors, developers and owner occupiers the opportunity to capitalise on the land’s strong development upside and holding income.”
The expressions of interest campaign ends on the 28th of November.
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Six combined Bondi Junction lots with $40 million expectations

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TFE Hotels has announced it will open a new Vibe Hotel in Adelaide.
The Hotel is projected to open in 2020.
Savills Australia’s Rob Williamson and Vasso Zographou negotiated the terms for the 260 Flinders Street property (pictured above) on behalf of the project owners.
TFE Hotels has partnered with multi award-winning Loucas Zahos Architects and its development business Guava Lime to construct an 18-storey glass fronted tower with 118 spacious rooms with stylish décor and bathroom amenities.
There will also be an open plan ground floor restaurant and bar and gymnasium.
Principal Architect and Director, Con Zahos, said the hotel would be the anchor of the “Paris end” of Adelaide, completing Guava Lime’s 16-year development of the precinct.
Located in the eastern quarter of Adelaide city, the new hotel will be close to Rundle and Hutt streets and minutes from Rundle Mall, Victoria Square, Adelaide Casino and the convention centre precinct.
TFE Hotels’ Managing Director Allan Vidor said this marked a great year for the Vibe Hotels brand, which would soon grow from nine hotels to thirteen.
<img src="https://www.urban.com.au/images/2018/10/24/Vibe%20NS.JPG" alt="">
It follows the opening of the Vibe Hotel North Sydney (pictured above) that opened in April 2018.
“We have another three Vibe Hotels under construction already: at Queen Street in Melbourne, Argyle Street in Hobart and Sussex Street in Darling Harbour, Sydney,” Mr Vidor said.
“Each has an innovative and attractive design and is located in a developing area of each city. It’s a very exciting time for the brand.”
 <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/2018/10/24/VIBE%20RUSH.jpg" alt="">
The Vibe Hotels brand launched in Sydney in 2003 with the opening of Vibe Hotel Rushcutters Bay (pictured above). This was followed by three more hotel openings in Sydney, Hobart and Melbourne in 2004. Later additions included Darwin Waterfront, Canberra Airport, which has since won multiple design awards, Marysville near Victoria’s Yarra Valley and North Sydney (April 2018).
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Savills negotiate terms for TFE Hotels first Vibe Hotel in Adelaide

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A five-level Melbourne CBD office and retail building has sold for $11.98 million to a Chinese investor who beat out several local and off-shore groups.
Savills Australia’s Clinton Baxter, Ming Li and Jesse Radisich negotiated the deal for 26-32 King Street on a tight yield of 2.9 per cent on behalf of a local private investor. 
“The scarcity of Melbourne CBD properties on the market, particularly below $20 million, is apparent among active buyers, resulting in significant pent-up demand,” Mr Baxter said.
The property, a retail and office building of about 1,200 sqm, on a landholding of about 304 sqm, is leased to multiple tenants, including a 7-Eleven on the ground level, and returns a net rental of $352,000 per annum.
“The buyer was seeking to secure a prime CBD asset for long-term capital growth, and this sale demonstrates the strong market appetite for premium properties generating solid income within the CBD,” Mr Baxter said.
The property last traded for $5.1million at a Savills auction in 2010, and has grown in value by 135 per cent over just eight years.
Mr Li said that despite recent media reports of a withdrawal of Chinese money from the Melbourne market, Savills was “actually experiencing an uptick in capital from Asia seeking prime commercial assets”.
“We have Asia-based clients actively seeking all forms of CBD and inner-metropolitan commercial assets,” he said.
The Australian Financial Review reported Rialto Tower co-owner Lorenz Grollo was an underbidder.
The property is across the road from the Rialto tower. <cite> </cite>
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Savills sells Melbourne CBD office building to Chinese investor

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EXPERT OBSERVATION
Dwelling approvals rose 3.3% in September, reversing part of the 13% slide over the previous two months but with the monthly move a touch below the consensus expectations of a 3.8% rise.
Despite this, the detail was weak. The monthly gain centred on the famously volatile high rise unit segment, which had fallen sharply over the previous two months. The September high rise bounce was also heavily concentrated in Victoria. Approvals outside of this narrow state segment were significantly weaker (our estimates suggest total dwelling approvals ex Vic high rise were down about 7.5%).
Private detached house approvals declined 2.7% to be down 7.3% since June – a significant shift for what is usually a more stable segment.
Private units in total posted a 9.2% bounce, retracing some of the 20% decline over the previous two months. With-in this, ‘high rise’ approvals jumped 40-50% although this looks to be exaggerated by seasonal adjustment. A sharp fall in 'medium density' partially offset the gain.
By state, the Vic recorded an outsized 30.5% gain but was softer ex high rise (we estimate down 2.3% in seasonally adjusted terms). The other major states recorded big falls, NSW down 6.8%, Qld down 10.5% and WA down 19%.
The total value of renovations edged up 0.8%, the slight trend decline over the first half of the year showing signs of leveling out. Notably, trend approvals in NSW and Vic are down 7.6% since the start of the year.
The total value of non res building approvals declined 3.8%. Trends remain difficult to pick out due to high volatility but the segment looks to be tracking lower in most states.
Overall, the headline gain in dwelling approvals this month is a 'head fake'. Excluding a sharp spike in Vic high rise, something that is very unlikely to sustain, reveals a fairly broad based picture of weakness. Tightening credit conditions are clearly impacting both residential and non residential sectors. The pace of decline remains hard to pin-point but building activity is more clearly tracking towards a contraction in activity heading into 2019.
Matthew Hassan is a Senior Economist for Westpac
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Matthew_Hassan-HHWHptmrw4

Australian dwelling approvals had an unconvincing bounce: Matthew Hassan

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A shortage in critical trade skills in NSW is attracting migrants from across the state borders, says a new report.
According to the latest Q 3 2018 Property Market Insight report from Turner &amp; Townsend, major construction activity in commercial, hotel and infrastructure sectors is reating opportunities for Queensland tradies.
The report says that skills at capacity or critical levels in Sydney include fit-out (carpet, painting, partitioning and joinery), services (mechanical, electrical and fire), façade (glazing and balustrades and structures (form work, concrete, and pre-cast concrete).
The report also outlines that while wages are rising in Sydney, they are drifting in Queensland.
In Sydney, form worker salaries have increased by 4%, precast concreters 3%, site foreman 16% and reinforcement 14%.
Meanwhile, in Queensland site foreman recorded a minus 4%, precast concrete and curtain wall glazing façade workers was down 3%, while reinforcement was up by 14% and form work 4%.
 <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/2018/10/22/nsw.jpg" alt="" style="font-size: 12.16px;">
<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/2018/10/22/qld%201.jpg" alt="">
Source: Q3 2018 Property Market Insight report  
Simon Kearney, Director at Turner &amp; Townsend said the report told a tale of two cities.
“The two cities are working at different paces which has opened up opportunities for Queensland tradies in the New South Wales market. Sydney remains the largest construction sector with $62 billion spent in the last financial year across building and engineering, reaching record levels,” he said.
“Construction work in all major sectors including commercial, infrastructure and hotels is at elevated or record levels which is providing strong job prospects for contractors and increased tender return prices in Sydney.”
“Prime office vacancy rates in Sydney are hovering around four percent indicating a tight market and creating ideal conditions for construction. White collar job growth is rising significantly on the back of a boom in financial services, real estate, engineering and tourism. Short term tourist arrivals of 3.4 million during 2017 – 2018 comprised 38% of the nation’s total, is driving growth in the construction of Sydney’s inner-city hotels.
“In addition, engineering construction in Sydney recorded over $23 billion in activity during the 2018 financial year. Most of the activity was road and rail which is expected to grow by another $1 billon to peak at approximately $12 billion during 2019/2020.”
“Despite all this growth, residential construction is now starting to slow. Housing prices have fallen by as much as eight% in 2018. The slowdown in residential construction is likely to take the heat out of trade labour costs, even if material prices are increasing strongly as a direct result of road and rail projects,” he continued.
“In comparison, Brisbane’s CBD commercial vacancy rates have blown out to 14% primary and 22% in secondary markets since the mining boom ended, negatively affecting commercial construction. Nevertheless, new commercial towers at 300 George Street, 360 Queen Street and a major refurbishment at 80 Ann Street are imminent,” he continued.
“Queens Wharf is emblematic of the changing face of Queensland construction with new projects catering for the tourism market rather than business. When construction starts in this area, demand for trades will increase significantly and will push construction costs up.”
“In the near future several infrastructure projects including Cross River Rail, Brisbane Metro Rail, the Queensland section of the Inland Rail project and the completion of the Kingsford Smith upgrade will spur activity in the state. These projects have the potential to draw Queensland tradies back home which will put more pressure on an already heated New South Wales labour market.”
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Sydney construction skill shortage attracting Queensland tradies

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Amazon's Australian headquarters will be on Market Street in the Sydney CBD.
As the technology giant steps up its expansion, Amazon already occupied office space at 2 Park Street.
The Australian Financial Review says it is now set to occupy 2 Market Street.
Allianz is leaving the building after it sold its half-stake in the tower to Charter Hall.
Allianz occupies more than 18,000 square metres in the building's total of nearly 40,000 square metres in office space.
The second largest tenant is Caltex with 9,000 sq m. The Commonwealth Bank of Australia will be vacating in 2021.
Amazon's distribution centres started in Melbourne's Dandenong South, securing a 24,387 square metre former Bunnings distribution centre from Melbourne's Pellicano family.
The online retailer will open its second distribution centre in Sydney's south-west after leasing a 43,000 square metre facility at Moorebank from Goodman Group.
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Amazon's new Australian headquarters location revealed 

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The Bendigo Bank building in Albury has been sold to a Sydney investor for $2.9 million.
The three-level property was sought by 10 bidders.
It sold for $600,000 over the reserve, reflecting a yield of 4.8%.
Other recent bank sales saw the Commonwealth Bank building in Shepparton sell for $3.6 million and Gympie’s Bank of Queensland property fetch $825,000.
The Mona Vale ANZ premises (pictured above) sold after its recent auction for $5.7 million on a 4.57% yield. 
There had been significant interest on the property with 84 enquiries and 15 contracts issued by Burgess Rawson.
A local Sydney Northern Beaches private investor was its buyer. 
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Commercial property investors banking on bank tenancies

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No-one envisaged the Sydney property boom would continue with similar gusto into 2018, which would have been its sixth year.
But the accelerated price reversal has caught many sellers by surprise after an extended period of double digit annual price growth.
Prices haven't yet fallen back by a prior year's growth, but negative equity does now loom.
This concern, along with not knowing just how much further there will be in falls, is creating uncertainty.
And property markets don't like uncertainty.
Falling prices are not the only factor hitting the feel good wealth effect. 
There are the recent sharemarket wobbles, the royal commission-induced tighter lending conditions, low wage growth, apartment oversupply fears, high household debt and the erratic political leadership.
The potential implementation of Labor Government policy hitting negative gearing incentives and hiking capital gains tax also has the markets worried as the Coalition government finally gets traction on raising the contextual consequences in a falling property market.
We are only starting to see the shocks of uncertainty in the property market.
And if it continues we will see it start being a drag on the wider economy too as fears about job security could see demand for goods fall, at least temporarily.
The RBA has modelling that found increases in uncertainty can trigger a downturn characterised by lower employment growth, weaker retail sales growth, and a fall in consumer confidence.
Olivier Blanchard, former chief economist of the International Monetary Fund, wrote in 2009 after the collapse of the US financial markets that there was “(nearly) nothing to fear but the fear itself.”
That was obvious at weekend auctions.
There's enduring purchasing interest, with extreme caution.
Some 18 contracts were issued to potential buyers during the marketing of <a href="https://www.realestate.com.au/property-house-nsw-north+balgowlah-129409278" target="_blank">a North Balgowlah brick home </a>(pictured above) in a great bushland location with renovation upside.
But not one bid came at its onsite auction.
Buyers and sellers are gaining insights that real estate goes up, down and or plateaus in cycles.
This article first appeared in The Daily Telegraph.
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