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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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>
EXPERT OBSERVER
While mainstream media obsesses over the inevitable downturn in the major markets in Sydney and Melbourne, somehow turning that into a national crisis, the rest of the nation is overlooked, especially regional Australia.
This is a shame for property investors because, right now, many of the best opportunities to buy well for future growth and good rental returns are in regional Australia.
While media’s focus remains firmly on the capital cities, the reality is that the strongest price growth in the past year has been recorded in regional centres.
The best-performing markets this year, based on our analysis of all the research, have been Geelong in Victoria, the towns of Cardinia Shire just outside Melbourne, the NSW Central Coast and the Newcastle region (pictured above).
It’s significant that while the average price outcome for the capital cities is a negative figure, dragged down by Sydney’s decline, the result for regional Australia is positive. This is according to latest data from CoreLogic, which says that the average total return for regional Australia is 6.2%, compared to -0.6% for the combined capital cities.
While four of the eight capital cities have price levels lower than a year ago (according to CoreLogic - other sources disagree), five of the six major state regional markets have prices higher than 12 months ago.
The latest figures from SQM Research have annual price for the capital cities (the average for the eight capitals) slightly in the negative, but the national average including the regions is solidly in the positive.
Returns are better in the regions: yields in the capital cities average 3.5%, while the regions average 5% (CoreLogic figures).
And, of course, the prices are much more affordable: the median dwelling price for the cities is $643,000, compared to $368,000 in the regional areas.
Looking forward, the markets I see as having the best potential for upside for investors include locations like Ballarat and Bendigo in Victoria, the Hunter Region of NSW and the Sunshine Coast in Queensland, with recovering Townsville another market likely to provide great value and potential for future growth.
I note that the latest McGrath Report puts forward the view that regional property markets are the “new black’’ in residential real estate.
The report says leading regional hubs like the Sunshine Coast, Gold Coast, Geelong and Newcastle are undergoing significant price growth on the back of strong demand.
It suggests improved infrastructure has made commuting times faster between regional areas and capital cities - and when coupled with the NBN rollout making access to technology better, these regions have become even more appealing to buyers.
“Massive infrastructure investment across Australia is also boosting employment in regional centres,’’ the report says.
Most investors overlook the regions, believing that all the economic and property growth potential lies in the capital cities. It simply isn’t so.
To increase awareness of the potential in our regional areas, consider what Jack Archer, chief executive of the Regional Australia Institute, said in a recent newspaper column:
“Many believe one of the problems with plans to decentralise our population is too few jobs in rural and regional Australia. Not true. Permanent skilled and unskilled migrants are needed in many areas.
“And simple reforms to immigration policy with support from rural communities to settle new permanent migrants will help take pressure off major cities.”
He notes Federal Government moves to channel jobseekers into regional work and the possibility of a five-year regional visa to connect migrants with permanent regional jobs.
Data from the Federal Government’s Internet Vacancy Index shows why new permanent migration to regions is critical. In July there were 46,000 job vacancies in regional Australia. This is up 23% from February 2016. Capital city vacancies rose only 12%.
Archer says: “This need is not about temporary farm work. Today’s vacancies are a mix of high-skill and low-skill jobs — everything from labouring, to sales, trades and professions. In the Pilbara, there are about 1,600 vacancies including 553 trades (automotive), 332 professionals (engineering and health), 238 machinery operators, 155 labourers and 128 clerical staff.”
Australia has many strong, diverse regional economies supporting property markets which are affordable, have much better yields than the cities and have strong potential for capital growth.
That’s why I see buying in good regional cities as a win-win-win scenario.
John McGrath recently said regional is the new black, rivalling the likes of Sydney, Brisbane and Melbourne with their new improved lifestyle, population growth and growing economy's.
Terry Ryder is the founder of hotspotting.com.au
<a href="https://mailto:ryder@hotspotting.com.au">ryder@hotspotting.com.au</a>
twitter.com/hotspotting
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terryryder-YECXbqmri2

It's time to focus on regional city property markets: Hotspotting's Terry Ryder

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The McGrath share price is going to be 32 cents in a year's time, reflecting no change from its current lows, according to Bell Potter, the stockbroker who helped float the estate agency at $2.10 in late 2015.
The forecast came after McGrath updated the ASX on the deteriorating property market conditions.
McGrath provided a trading update that highlighted a number of factors which are negatively impacting the operating performance of the company.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/24/mcgrath1.jpg" target="_blank">to enlarge.</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/2018/10/24/mcgrath1.jpg" alt="">
McGrath did not provide any guidance for FY19 but did say it expects a much better result in 2HFY19 and “at least a breakeven position on an EBITDA basis” for the full year.
Bell Potter accordingly downgraded its FY19 EBITDA forecast from $5.1 million – which was consistent with underlying FY18 EBITDA – to a modest loss of $0.5 million which is below the company’s general guidance of at least a breakeven result.
It also downgraded its FY20 and FY21 EBITDA forecasts by 58% and 44% but continue to forecast positive EBITDA in both these periods and some improvement in market conditions.
"Our downgraded EBITDA forecasts mean we now expect a net loss in FY20 and a modest net profit in FY21," the stockbroker advised.
<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/Mcgrath3.jpg" alt="">
"The net result is a 16% decrease in our PT to $0.32 which is close to the current share price and so we maintain the HOLD recommendation.
"We note our PT is now modestly lower than the $0.33 valuation we apply to the annuity businesses but we do not see this valuation as the key driver of the share price as we do not expect these businesses to be sold."
The broker advised shareholders it "no longer forecasts a resumption of dividends in FY20 given we now forecast a net loss in the period".
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/24/McGrath2.jpg" target="_blank">to enlarge.</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/2018/10/24/McGrath2.jpg" alt="">
Its determination of the price target for McGrath was base on its core DCF (discounted cash flow) and the valuation of the annuity businesses.
"McGrath has two annuity businesses – property management and mortgage broking – which generate recurring revenue and so a relatively reliable or dependable valuation can be applied to each.
"We value both businesses at b/w $55 - 60m which equates to b/w $0.33 - 0.36 per share and so provides some valuation support for the share price."
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jchancellor-FAypfDUnLy

McGrath share price supported by property management and mortgage commissions: Bell Potter

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The slump in retail commercial property continues as even stores fronting Paddington's pricey Oxford Street can't attract buyers.
It's the stock at the city end of Oxford Street which is struggling to sell.
The longest on the market has been four mixed use buildings at <a href="https://www.commercialrealestate.com.au/property/30-36-oxford-street-paddington-nsw-2021-2014233230">30-36 Oxford Street</a> (above) which are described in the marketing an "undeniably the best shop fronts in Oxford Street."
They last sold for $3.98 million in 2014.
The buildings, to be sold in one line across 700 sqm, are currently configured as four retail shops with a first floor residence or office.
Steffan Ippolito at Oxford Agency advised that fully leased the potential gross income per annum is $470,000 plus.
The properties that have over 400 sqm of floor area have been on the market since March.
Another shop front sat idly on the market since April is at <a href="https://www.realcommercial.com.au/property-retail-nsw-paddington-502777006" target="_blank">56 Oxford Street</a>, the home of womens clothing store Rodeo Show (below).
<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/2018/10/23/Oxford2.jpg" alt="">
The freehold shop and first floor office with rear lane access is being offered with vacant possession by Richardson &amp; Wrench Commercial.
It last traded for $1,815,000 in 2005.
Continuing up the road to the Woollahra end of Oxford Street, a shop at <a href="https://www.commercialrealestate.com.au/property/90-oxford-street-paddington-nsw-2021-2013673205" target="_blank">90 Oxford Street</a> on 110 sqm was listed for $2.3 million late last year.
Its re-listing is expected to see a similar guide, which puts it only a few hundred thousand up on its $2 million trade some 15 years ago.
The shop had 50 sqm of internal space over each of its three levels where there's also a one bedroom apartment.
The ground level tenancy expired late last year, and the residential tenancy expired earlier this year.
There are two new listings on the street which has been renowned for retailers and designers over the years.
Opposite Paddington Town Hall just listed is a mixed use retail commercial property on 200 sqm with a six metre frontage to Oxford Street.
The three level building at <a href="https://www.commercialrealestate.com.au/property/244-oxford-street-paddington-nsw-2021-2014696321" target="_blank">244 Oxford Street</a> (below) has three separate tenancies.
<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/2018/10/23/Oxford3.jpg" alt="">
It comprises a 115 sqm retail component on the ground floor, currently vacant, and a second 35 sqm ground floor tenancy at the rear of the property that opens to Begg Lane. That's leased to hair salon Papillion Hair.
Levels one and two are occupied by a DA approved erotic massage parlour.
The Oxford Street retail has an estimated income of $115,500 per annum, while the rear hair salon pays $36,500 per annum. They have a new three year lease.
Levels one and two have a passing income of $70,191 per annum, with a 10 plus 10 year lease.
The property last traded for $3,635,000 in 2011 when it had a guide of $4 million.
The latest commercial premises isn't solely retail. It is being marketed as suiting a variety of uses, including a gym, real estate office, art gallery or corporate HQ.
The underdeveloped site at <a href="https://www.commercialrealestate.com.au/property/345-347-oxford-street-paddington-nsw-2021-2014719004" target="_blank">345-347 Oxford Street</a> sits next to a Mitre 10 and William Street carpark with frontages to Oxford Street and Regent Lane.
It has flexible B4 mixed use zoning and last sold in 2013 when it fetched $5.5 million.
 
 
 
 
 
 
 
 
 
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jrobinson-rf4aSBido9

Prime Oxford Street retail sits on market as more stores listed

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<div>EXPERT OBSERVER</div>
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<div>Very cagey auction activity in Sydney, with a preliminary clearance rate of only 44.5 per cent (more like somewhere in the thirties come final). </div>
<div> </div>
<div>The median auction price of a sold house was well down from a year earlier at $1,285,000, reflecting reduced borrowing capacity (mainly for investors rather than homebuyers). </div>
<div> </div>
<div>For units the median price of property sold at auction was up from $900,000 a year earlier to $940,250.  </div>
<div> </div>
<div>But still very muted activity levels overall. 
</div>
<div class="separator"><a href="https://1.bp.blogspot.com/-tdYEYYMIQf4/W8sPXWtFGmI/AAAAAAAAsfQ/itzoovEdQEAk5yPympoK2dMTmfGq0nehACLcBGAs/s1600/IMG_9038.PNG"><img src="https://1.bp.blogspot.com/-tdYEYYMIQf4/W8sPXWtFGmI/AAAAAAAAsfQ/itzoovEdQEAk5yPympoK2dMTmfGq0nehACLcBGAs/s640/IMG_9038.PNG" width="640" height="414" data-original-height="856" data-original-width="1323"></a></div>
 <div>Melbourne's clearance rate is also now well under 50 per cent. </div>
<div> </div>
<div>ALP in the ascendancy</div>
<div> </div>
<div>With the Coalition roundly punished by the electorate in the Wentworth by-election for their machinations and tanking to a minority government in the process, property market participants will need to weigh up the potential impacts of changes to negative gearing legislation.</div>
<div> </div>
<div>I'll post an online workshop on this very subject this week, so keep an eye out for that. </div>
<div> </div>
<div class="separator"><a href="https://2.bp.blogspot.com/-uhtiHFK-Yf0/W8sPktoSeKI/AAAAAAAAsfU/zEj4wSRFeeY2T0B-aQ0Vl8ECDHMcaHe5wCLcBGAs/s1600/gavel-3577254_1920.jpg"><img src="https://2.bp.blogspot.com/-uhtiHFK-Yf0/W8sPktoSeKI/AAAAAAAAsfU/zEj4wSRFeeY2T0B-aQ0Vl8ECDHMcaHe5wCLcBGAs/s640/gavel-3577254_1920.jpg" width="640" height="352" data-original-height="880" data-original-width="1600"></a></div>
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<div>Tightening</div>
<div> </div>
<div>Thanks for the thousand or so Tweets, messages, and pingbacks about record underutilisation and the like - a pleasure as always! </div>
<div> </div>
<div>Yes, it's a problem.</div>
<div> </div>
<div>No, it's not been getting worse.</div>
<div> </div>
<div>Volume measures - reported quarterly on an original basis - have consistently improved year-on-year since 2014...through 2015, 2016, 2017, and 2018 year-to-date.</div>
<div> </div>
<div>All publicly available information from the ABS:</div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-8PwnBImzULE/W8ogJ9Ym19I/AAAAAAAAse4/wNu6at2drA8ml6ZCrU3QPZTz8kDzBRKOQCLcBGAs/s1600/ABS1.jpg"><img src="https://4.bp.blogspot.com/-8PwnBImzULE/W8ogJ9Ym19I/AAAAAAAAse4/wNu6at2drA8ml6ZCrU3QPZTz8kDzBRKOQCLcBGAs/s640/ABS1.jpg" width="640" height="388" data-original-height="805" data-original-width="1322"></a></div>
<div> </div>
<div>Yes, there is more work to be done (literally so in this case!).</div>
<div> </div>
<div>The Reserve Bank has noted the same patterns, but still believes that the unemployment rate is the key measure, and that's at the lowest level since 2012.</div>
<div> </div>
<div>No, this won't be reported in left-leaning media, nor for that matter whichever 'recession' blogs you may care to mention. C'est tout. 
</div>
<div> </div>
<div>Cheers! Very low preliminary auction clearance rates this weekend, under 50 per cent for Melbourne, and just 44 per cent for Sydney. It'll be a long, slow run into Christmas from here this year. </div>
</div>
</div>
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pwargent-M4siyDbqQY

Auctions fizzle out for 2018

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SPONSORED POST
Renamed U60 and redeveloped to be a next-generation office building, 60 Union Street in Pyrmont is set to change the face of Sydney’s growing city-fringe office precinct. 
Located in the widely recognised Pyrmont Bay office precinct, U60 has recently undergone a $30 million refurbishment to enhance and reposition its seven-storey office tower and two-storey terrace, which are now connected by a three-storey glazed atrium.
Originally designed by Rice Daubney and marketed as an “extraordinary” office destination, the new architectural repositioning by Custance Architects incorporates natural materials, abundant greenery and upper-floor water vistas across to the city and Barangaroo.
<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/2018/10/23/Sav2.jpg" alt="">
Savills Australia has been appointed to lease the vacant areas of U60 on behalf of AFIAA Australia, with <a href="http://www.savills.com.au/services-and-sectors/leasing/office-leasing.aspx">Office Leasing</a> agents Rob Dickins and Liz Braithwaite seeking tenants to fill about 5,500sq m of refurbished space. 
“U60 is an office building bursting with vibrancy and liveliness, ready to take the business lifestyle to the next level,” Ms Braithwaite said.
“With people spending so much time in the office, landlords have recognised that they have to create a premium workplace for their tenants in order to attract and retain them.”
Mr Dickins said the upgrades to U60 were designed to provide tenants with an “identifiable workplace sanctuary,” with all services available from the one building, including cafes, a retail arcade, courtyard, undercover car park and first-class end-of-trip facilities. A rooftop terrace is under consideration.
“The renovation has cleverly created a journey for tenants, beginning with the striking new exterior façade, leading into the glass atrium that illuminates the spacious lobby, and extending into bright break-out areas and an energetic café,” he said.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/10/23/Sav3.jpg" alt="">
“This prominent A Grade office building has outdoor balconies on all floors, upgraded lobbies and bathrooms on all floors and excellent natural light, courtesy of floor-to-ceiling windows.”
Savills Australia has completed the most recent commitment in U60 to Parkview Construction, which was represented by Rowan Humphries from Colliers International.
The company has secured level seven of the office tower from February 1, 2019. Six other tenancies remain vacant across the office tower and terrace building, with rental rates targeting late $700’s net. 
The commercial accommodation is complemented by 2,800sq m of retail space, including a Coles supermarket, Liquorland and numerous other food, beverage and specialty retailers.  
Savills is a leading global real estate service provider offering the full spectrum of services from strategic advice to managing assets and projects and transacting deals. Rob Dickins is State Director - NSW and Liz Braithwaite is Executive in Savills Office Leasing. To learn more about Savills, visit <a href="http://www.savills.com.au/" target="_blank">savills.com.au</a>.
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U60 set to transform Pyrmont’s corporate lifestyle: Savills

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The American hotel giant Hilton has picked Parramatta for a new 245-room luxury hotel, in a move harshly described by the Australian Financial Review as an "unlikely location".
Located 25 kilometres west of Sydney’s CBD, Parramatta is a major business and commercial hub and a growing destination for business events.
The new hotel will replace the former AMP building at 20 Macquarie Street, which was once the tallest building in Parramatta.
It will be demolished with construction of a 90-metre building to kick off in 2020.
There are more than 540 Hilton hotels around the world.
Western Sydney Business Chamber director David Borger welcomed the news.
“I think we’ve really arrived as a city when we have brands like Hilton considering business here,” he told The Daily Telegraph.
“It used to be that if a city had a cathedral they’re doing well, but now it’s about getting Apple or Hilton.”
Ledrae Hotels director Lionel Chang says he is thrilled to be bringing Hilton to Parramatta.
“We have owned the building on the corner of Macquarie Street and Marsden Street since 1994 and look forward to this exciting transformation,” he says.
“With Macquarie Street being the oldest and most well-known street in Parramatta, we cannot think of a better address for what will be a fantastic hotel.”
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j.ballantyne1990-6AQqhLzZaK

Hilton pinpoint burgeoning Parramatta for next Australian hotel

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Australian owned Property Bay Pty Ltd has signed purchase contracts to create a world class eco-resort and tourist destination on Dunk Island on Australia’s Great Barrier Reef.
The asset backed unit token project will start with an initial US$110 million capital raise, which will in-part be funded by crypto currency, with construction commencing in the first quarter of 2019 on a glamping site, 5-star hotel, swimming pools and other amenities.
The IM (Information Memorandum) is available by application.
Named by Captain Cook in 1770 after the First Lord of the Admiralty and First Earl of Sandwich George Montagu Dunk.
The Island is a pristine tropical Great Barrier Reef island situated 4km off the coast of tropical north Queensland near Mission Beach and is known as “The Island of Peace and Plenty”.
It’s also famous for its restorative qualities due to former journalist and Senior Editor of the Townsville Bulletin Edmund James Banfield moving there in 1897 after being told he had 6 months to live. Banfield lived and wrote there, extending his life by 26 years before eventually dying in 1926.
“Dunk Island, and surrounding palm-fringed Mission Beach is an incredibly idyllic area, where rainforest meets reef – with this project we intend to bring significant tourism, and in turn jobs, to the local community.” says Tim Sommers spokesman and Co-Founder of Property Bay. “ 
The Dunk Island project will be a global first with technology and eco-tourism the primary drivers.
The aim is a zero-carbon footprint with Blockchain, Artificial Intelligence, self-driving buggies and related tech underpinning the environment, Sommers said.
"The Island economy will be entirely driven through a utility token model that not only will be exchanged for goods and services, but will also reward customers for their energy footprint."
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Cryptocurrency funded Dunk Island restoration plans announced

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The Bondi Junction hotel leasehold has been listed for sale.
Set on the site of the former Mill Hill Hotel (pictured above), it is located within walking distance of Westfield Shopping Centre and the Bondi Junction Transport Interchange.
The allotment for the <a href="https://www.realcommercial.com.au/property-hotel+leisure-nsw-bondi+junction-502939378" target="_blank">59-69 Oxford Street, Bondi Junction</a> property (pictured below) is due for completion in 2019. 
<img src="https://www.urban.com.au/images/2018/10/24/Freehold%20BJ.JPG" alt="">
With a proposed internal floor area of 408 sqm and 10 serviced apartments located on the first floor, it is located just 4 km from Bondi Beach.
The property has been on the market for over 450 days and was listed just 5 months after the purchase was settled in early 2017.
The holding was sold for $20 million in 2017.
It is for sale through an expression of interest campaign run by HTL property.
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Leasehold hotel in Bondi Junction for sale

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EXPERT OBSERVER
The seasonal surge in listing numbers is well underway, with fresh listings being added to the market up 16% relative to the end of winter, however, despite the upswing in new listings, fresh stock additions are tracking almost 4% lower than the at the same time a year ago to be at their lowest seasonal level since 2012. 
The low level of new listing numbers can be attributed to weak vendor confidence; no surprise given housing market conditions have weakened and selling conditions have become more challenging.
<a href="https://www.propertyobserver.com.au/images/2018/10/19/stock%20level%201.jpg" target="_blank">Click here to enlarge</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/2018/10/19/stock%20level%201.jpg" alt="">
Although freshly advertised stock is low, total advertised listing numbers have been trending higher as the rate of absorption slows. In fact, if the current trend continues, we will see the number of properties available for sale exceed the recent 2012 peak in total advertised stock levels. Total listing numbers are 10.2% higher than year ago and at their highest level for this time of the year since 2012.
The rise in total listing numbers isn’t due to a panicked surge in new listings. This is more about less demand which is causing a rise in relisting’s along with longer selling times and fewer successful sales at auction.
 
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The typical capital city dwelling sold by private treaty is now taking 53 days to sell compared with 42 days a year ago and discounting rates have risen to an average of 6.5%, up from 6.0% a year ago.
Click here to <a href="https://www.propertyobserver.com.au/images/2018/10/19/stock%20level%203.jpg" target="_blank">enlarge.</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/2018/10/19/stock%20level%203.jpg" alt="">
More stock means more choice for buyers and harder selling condition for vendors – essentially abuyers’ market. Buyers have little sense of urgency under these conditions; they can negotiate hard, take their time to make a purchase decision, and if they feel a property price doesn’t reflect fairvalue, they can easily move onto the next property option.
Click here <a href="https://www.propertyobserver.com.au/images/2018/10/19/stock%20level%204.jpg" target="_blank">to enlarge. </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/2018/10/19/stock%20level%204.jpg" alt="">
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With so much competing stock on the market, vendors will need to be reasonable with their pricing expectations and ensure their marketing campaign is as effective as possible in order to stand out from other stock for sale.
Tim Lawless is the national research director of CoreLogic RP Data and can be contacted<a href="https://blog.corelogic.com.au/author/timlawless/" target="_blank"> here.</a>
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tlawless-5VLUrbAk9s

Buyers back in the driver's seat as stock levels surge to highest levels since 2012

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EXPERT OBSERVATION
Westpac’s forecast for the September quarter headline CPI is 0.5%qtr which will see the annual pace ease to 2.0%yr from 2.1%yr.
Westpac’s forecast leaves the two quarter annualised pace at 1.6%yr.
The September quarter is a seasonally strong quarter with the ABS projecting a seasonal factor of +0.30ppt. However, this is larger than the average of the June quarter seasonal factor for the previous two years (average 0.27ppt) so there is a risk that this estimate will be revised downward.
Core inflation is forecast to print 0.3%qtr (0.31% at two decimal places) seeing the annual pace ease to 1.8%yr from 1.9%yr. The trimmed mean AND weighted median are both forecast to rise 0.31%.
The two quarter annualised pace of core inflation eases back to 1.5%yr from 2.0%yr putting inflation momentum below the RBA’s target band.
We have lifted our Q3 forecast (it was 0.3%qtr) due to rising petrol prices (impact is set to be even larger in the December quarter) plus the impact of drought on fresh fruit, lamb and cereal product prices (beef prices have been falling as cattle have been sold).
We have also made a small allowance for the introduction of GST on imported goods worth less than $1,000.
The big unknown this quarter is the impact of changes to childcare rebates. Back in 2007 and 2008 increases in rebates saw childcare prices fall between 20% and 30% each year.
This time the impact appears to be somewhat less but we have not found a way to confidently estimate it. Our -7% forecast is our “best guess” with the limited information. 
Traded prices are forecast to rise 1.2% in the quarter to be up 1.8%yr, while non-traded prices are forecast to rise 0.1%qtr/2.0%yr due to moderating housing costs moderate and falling childcare.
Core inflation remains below the bottom of the RBA target band due moderating housing costs.
Overlay a competitive deflationary cycle in consumer goods and it makes it hard to see core inflation breaking much higher.
Market forecasters over estimated the quarterly change in the CPI for the last seven quarters by an average of +0.14ppt. Will they do it again making it two consecutive years of overestimating inflation?
Justin Smirk is a Senior Economist for Westpac
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