Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Joel Robinson

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Brisbane developer Red &amp; Co's decision to include dual key apartments in its debut Gold Coast apartment development, <a href="https://www.apartments.com.au/new-apartments/como-varsity-lakes-22-lake-street-varsity-lakes-qld-4227">COMO Varsity Lakes</a>, is proving to be one of the project's biggest drawcards, with buyers quickly snapping up the flexible residences.

More than half of the project's 36 dual key apartments have already sold, helping drive COMO beyond the 50 per cent sold mark within the first month of launch.

The strong response highlights growing demand for apartment designs that can adapt to changing lifestyles, with buyers increasingly looking for homes that accommodate multi-generational living, provide rental income opportunities or simply offer greater flexibility over time.

Located on the shores of Lake Orr, COMO will deliver 156 apartments across 16 levels, with the dual-key residences forming a limited release within the broader development.

Each combines a primary two-bedroom apartment with a fully self-contained studio on a single title, connected by a shared foyer and lockable internal door. The design allows owners to house ageing parents, adult children or guests while maintaining privacy, or lease the secondary residence to generate additional income.

Just 17 of the original 36 dual key apartments remain available.

[smartcode_project:default project_id=135546 project_image_fid=367096]

The innovative configuration combines two fully self-contained residences on a single title, typically comprising a primary two-bedroom apartment alongside a separate studio residence, connected via a shared foyer and lockable internal door.&nbsp;

The model is proving particularly attractive to owner occupiers navigating changing family dynamics and the realities of the current housing crisis.&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363511]

<a href="https://www.apartments.com.au/project-marketer/npa">NPA</a>&nbsp;CEO Andrew Erwin said dual key living was resonating strongly with modern buyers because it delivered both financial flexibility and practical lifestyle benefits.&nbsp;

“The housing crisis and rising cost of living are fundamentally changing how Australians think about home ownership,” Erwin said.&nbsp;

“Dual key apartments provide a genuine solution for families who want to stay connected while maintaining independence. Parents can help adult children save for a future home, ageing parents can remain nearby without moving into aged care, and owners still retain privacy and flexibility.

“Importantly, buyers are also recognising the financial advantages. It creates the opportunity to generate additional income from part of the home without the holding costs associated with owning a separate investment property.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363509]

Unlike traditional dual occupancy arrangements, the residences operate under a single title, meaning owners only incur one set of body corporate fees, council rates and holding costs.&nbsp;

The secondary residence can also evolve over time - functioning as guest accommodation, a home office, creative studio or private retreat before later becoming an income-producing asset.

<a href="https://www.apartments.com.au/developers/red-co">Red &amp; Co</a>&nbsp;Director and Co-Founder David Laverty said the strong early sales reflected growing buyer urgency and changing priorities within the market.&nbsp;

“Securing more than half of COMO’s residences within such a short timeframe is an outstanding result and a clear endorsement of both the design and location,” Laverty said.&nbsp;

“Buyers are responding to the combination of location, connectivity and amenity, but ultimately it’s value relative to other East Coast markets that is driving enquiry.”&nbsp;

“We’re also seeing strong interest from owner occupiers looking for homes that can adapt with them over time. Flexibility has become one of the most important considerations for buyers in today’s market.”&nbsp;

[smartcode_project:default project_id=135546 project_image_fid=363515]

Designed by <a href="https://www.apartments.com.au/architects/bda-architecture">BDA Architecture</a>, COMO features a mix of one-, two- and three-bedroom residences with 2.7-metre ceilings and larger-format floorplans aimed at owner occupiers, downsizers and lifestyle-focused buyers.&nbsp;

The development will feature an extensive rooftop recreation and wellness offering including a 25-metre lap pool, sundeck, barbecue and dining areas, gym, sauna, plunge baths, landscaped gardens, wellness spaces and rooftop pickleball and paddleball courts.

The remaining dual key apartments range from 137 sqm to 167 sqm and include generous three-bedroom layouts with separate self-contained studio accommodation and dual parking.&nbsp;

Erwin said the dual key concept represented a broader shift in how Australians would live in the future.

“People want homes that can evolve with their lives,” he said.&nbsp;

“A dual key apartment can suit a family today, support an ageing parent tomorrow, and potentially generate income later on. That adaptability is becoming incredibly valuable in the current environment.”

Prices currently range from $2,115,750 to $2,583,000.&nbsp;

[smartcode_project_cta:default project_id=135546]

Inter-generational living drives demand for COMO’s dual key apartments as housing pressures reshape buyer priorities 

Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/ceerose">Ceerose</a> has doubled down on its Leichhardt ambitions, lodging its second State Significant Development Application (SSDA) in the suburb in the last six months.

Their newest proposal seeks to transform a former industrial precinct into a new residential community centred around the adaptive reuse of one of the site's heritage warehouse buildings.

The new project, on a 6,930 sqm block at&nbsp;<a href="https://www.apartments.com.au/new-apartments/40-76-william-street-leichhardt-nsw-2040">40–76 William Street</a>, will bring more than 200 apartments to a suburb that has seen little to no new supply in recent years. It follows Ceerose's late 2025 SSDA for a mixed-use apartment project on nearby Parramatta Road, signalling the developer's growing investment in Sydney's Inner West.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, the redevelopment would involve the demolition of four existing industrial buildings while retaining and adaptively reusing the site's most significant warehouse. The retained structure would anchor a new residential precinct comprising five interconnected buildings arranged around a large central landscaped courtyard, with heights stepping from five storeys along the surrounding residential streets to 11 storeys at the William Street corner.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="7258c54c-8167-479e-8361-2d5fca9915b4" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010B%20-%20CGI%20-%20View%202.jpg?VersionId=S9DQfxu_jpcB5LrAEYFUbyMzg5odW6i5" />

According to the Architecture Design Report by Woods Bagot, the proposal "seeks to create a residential village centred around a generous green heart while celebrating the site's industrial heritage through the adaptive reuse of the existing warehouse building."

The development would comprise 203 apartments, with 188 proposed as build-to-sell residences, alongside 15 affordable housing apartments.

Rather than treating the retained warehouse as a standalone heritage object, Woods Bagot has sought to weave the site's industrial history throughout the masterplan. The proposal retains the north and west facades of the landmark corner warehouse, while new buildings reinterpret the site's brick-and-steel industrial language through their material palette and architectural expression.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="9e8c64c2-881b-49e1-8c90-6b6acaaa45b6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010C%20-%20CGI%20-%20View%203.jpg?VersionId=Qm8_8H_Xrg_sc4Mdjc59vlAcKF_5wRTb" />

The design is organised around what Woods Bagot describes as a "green heart", a landscaped communal open space that reinstates the leafy character removed when the site became an industrial storage facility. A new pedestrian laneway running through the site would improve permeability between William, North and Francis streets, linking residents through landscaped public spaces while activating the ground plane.

Residents would have access to communal gardens, rooftop open space and shared recreation areas distributed throughout the development. Sustainability has also been prioritised, with the project targeting an average 7.9-star NatHERS rating. Proposed initiatives include rooftop solar generation, rainwater harvesting, passive solar design, naturally ventilated lobbies, extensive cross-ventilation and the reuse of existing building fabric to reduce embodied carbon.

The adaptive reuse strategy became a defining feature of the application after heritage investigations found only one of the site's industrial buildings could feasibly be retained. The Heritage Impact Statement concludes that preserving the key warehouse façades while referencing the site's industrial character throughout the new development provides an appropriate balance between renewal and conservation.

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="efffafdb-594f-4e2b-a067-921fd51c05e1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010D%20-%20CGI%20-%20View%204.jpg?VersionId=DPmE4.k16YRt0i27hEZVtJAffarpvUfx" />

"Retention and adaptation of the site buildings has been explored but found not to be feasible except for the tallest building, whose street facades will be retained," the heritage report states.

"The proposed building will interpret the brick and steel character of the subject site, including reuse of some components and construction of a large 'sawtooth' structure in the proposed open space."

<img alt="First look: Ceerose returns to Leichhardt with 203-apartment adaptive reuse proposal at former warehouse site" data-entity-type="file" data-entity-uuid="3bfef2b5-83f5-40cd-9cab-767092f34266" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%2010E%20-%20CGI%20-%20View%205.jpg?VersionId=7asb3i_ql4ybbuJOUb5UHBEIy0Q9t.DF" />

The William Street site is located around 300 metres from Leichhardt North Light Rail station and a short walk to Norton Street's retail, dining and hospitality precinct. The surrounding area has increasingly become a focus for urban renewal given its proximity to public transport and the Parramatta Road corridor.

Ceerose, founded by Edward Doueihi in 1998, has become one of Sydney's more active apartment developers, with completed projects including The Alex Collective in Alexandria, Abbie's Lane in Annandale, and the award-winning Munro House in Elizabeth Bay. They are currently delivering Belgravia, 17 luxury apartments in Potts Point.

First look: Ceerose doubles down in Leichhardt with adaptive reuse of former warehouse site

Northern Territory

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Alice Springs’ Kilgariff, the newest residential suburb, has seen the issuing of new land titles for its first stage fast tracked by the Norther Territory government.
The aim was to fast track the masterplanned suburb to allow home building to start this month, explained Chief Minister Adam Giles.
“Local contractor Sitzler Bros has completed Stage 1 subdivision works allowing us to move quickly to get these land titles issued,” Giles said.
“This is certainly great news for the 24 buyers who have already secured their future in Kilgariff, and they can now begin construction of their new homes in early 2015.”
Over the next 20 years, the area is expected to grow into a suburb with 4,500 homes. It is also expected to include a sports oval, village centre, open space, parks and cycle paths and is being developed by Land Development Corporation.
The blocks are priced from $160,000 to $180,000, and Giles expects home buyer interest due to the price point.
Stage 1A’s interested saw an early release of 1B in November, with a further 47 home sites brought to market. The initial 1A stage included 33 lots spanning 713 square metres to 1,043 square metres. There are some blocks available for units or townhouse development.
“The Giles Government is delivering on its promise of new residential land release, faster than ever before, to meet the growing demand for new homes right across the Territory,” Giles said.
“We desperately need to add to our new housing stock to put downward pressure on prices, rents and the cost of living and Kilgariff will help us do just that.”
A new development in Whittaker Street is also expected to take place, with <a href="https://www.lands.nt.gov.au/land-release/whittaker-street-development" target="_blank">expressions of interest for the site now open</a> to opportunistic developers. The prime block of commercial land spanning 18,000 square metres has seen released images of a potential mixed-use precinct that could include a hotel and tourism precinct, residential accommodation, restaurants and retail space.
“We are keen to hear what developers might be interested in this property and what ideas they have for this prime real estate,” Giles said.
“We have an open mind about the form this project could ultimately take, but it certainly presents a chance to transform a key site right in the heart of Alice and I look forward to seeing what options are proposed.”
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Alice Springs’ newest suburb fast tracked by NT government

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In the Northern Territory, the First Home Owners Grant (FHOG) is now only available for first home buyers entering into contracts to construct or purchase a new home.
As of 1 January, Northern Territorian first home buyers will only be able to access the grant if they purchase new, providing them with a $26,000 cash incentive to construct their own dwelling.
The NT Department of Treasury and Finance notes that this is to encourage the construction of dwellings.
There is no threshold on the value of the new home purchased, with first home buyers able to buy properties exceeding the previous $600,000 limit applied to established homes.
The FHOG is not means tested.
This brings the Northern Territory in line with the majority of other states and territories that do not offer a grant for established home purchases. Many, such as South Australia, phased out their established property FHOGs in mid-2014. Western Australia still retains a modest grant, of $3,000, for eligible first time buyers purchasing established homes.
Those claiming the Northern Territory FHOG must live in the property for a period of six continuous months within 12 months of the completion of the home.
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FHOG restricted to new homes in the Northern Territory

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The Bunda Station, of the Victoria River District, in the Northern Territory, is being sold for about $15 million through Ruralco Property.
The 178,800-hectare station owned by the Underwood family sits adjacent to the buyer, Consolidated Pastoral Company's Kirkimbie Station.
"We are in the final stages of due diligence and it is under contract," CPC chief executive Troy Setter confirmed to Fairfax Media.
CPC controls 19 properties across Australia's top end covering more than 5.6 million hectares.
<a href="https://www.realestate.com.au/property-livestock-nt-lajamanu-7664139" target="_blank">Bunda Station</a> was passed in at 2012 Elders auction with just a $10 million vendor bid.
Bunda was offered with 13,500 Brahman and Charbray infused cattle. 
The herd includes 2,000 purebred Brahman bulls and breeders. 
Bunda has been developed with 22 bores.
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jchancellor-FAypfDUnLy

NT's Bunda Station sells to Consolidated Pastoral Company

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Darwin property prices may have fallen over the September quarter, according to CoreLogic RP Data, but one local agent believes the market is well placed to come roaring back in 2015.
In the three months to 31 October, Core Logic RP Data information shows a 1.7% drop in the Darwin median price.
The large amount off the plan settlements has deterred buyers and investors form the market, according to general manager of Raine and Horne Darwin, Glen Grantham.
But, Grantham says the underlying fundamentals are strong and the market won’t spike until the middle of 2015.
“We have an election in late 2015 and already the NT government is starting to make announcements that will drive stronger business activity and consumer confidence,” he said.
One of the major upcoming announcements is the tender for the North East Gas Interconnector, a gas pipeline linking the Northern Territory with the east coast gas grid.
Grantham says the smart buyers will get in early and find some bargains before the market starts to generate strong growth.
“The smart money is currently buying properties in inner CBD suburbs such as <a href="/news">Stuart Park</a> and <a href="/news">The Gardens</a>,” he said.
“In The Gardens, entry-level, two-bedroom apartments start from $450,000, which are generating weekly rents of $550. This is a very healthy 6.4% gross yield, with the prospect of decent growth to come.”
<a href="/news">Woolner</a>, with a current median unit price of $620,000,<a href="/news"> </a>is another market which Grantham says is due for a spike.
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Darwin property prices fall, but rebound could be on the cards

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GUEST OBSERVATION
The announcement yesterday by the Northern Territory government that it is selling the Territory Insurance Office’s insurance assets to Allianz Australia for A$236 million has many <a href="https://au.news.yahoo.com/a/25594850/northern-territory-government-confirms-sale-of-tio-for-424m-after-months-of-speculation-protests-and-petitions/" target="_blank">worried</a> their premiums will increase. Some of this concern is no doubt a result of significant premium increases in North Queensland following cyclones Larry and Yasi. But is all this concern justified?
Looking first at the increases in North Queensland, the exposure in that region is to highly intense cyclones and large catastrophic insurance losses have followed. North Queensland has a very long east-facing coastline all exposed to cyclone. This part of northern Australia is home to numerous cities and towns, which means the risk there is much larger for insurers. Cyclones Yasi and Larry each cost insurers in excess of A$1 billion in claims paid.
While the Territory’s economy is growing, it just does not have the same level of infrastructure, in resorts, large hotels, high rises, factories, warehouses and residential housing. As a result, the risk of such occurrences is considered significantly lower in the Northern Territory than in North Queensland.
Since Cyclone Tracey (coming up to its 40-year anniversary), building codes in Darwin and the Northern Territory in general have been improved and are the toughest in Australia. This has reduced the damage caused when cyclones do hit. For example, with a combination of lower intensity and buildings built to a higher code, 2011’s Cyclone Carlos caused relatively minor property damage in Darwin.
Over the past 10 years, the majority of Australian insurers have moved from community rating to risk rating due to improvements in technology. In the case of homes and other buildings this is through geospatial technology. It allows the overlay of cyclone, flood and other maps onto street maps and satellite images of addresses.
In motor insurance we will see more use of telematics to reward good driving behaviour. Poorer drivers will pay more for the additional risk they create.
<h3>Individual premiums</h3>
The same goes with home or business insurance. Premiums are highly individualised in terms of price because no two houses are the same when it comes to construction, value, location or risk. Premiums reflect the price of a home owner transferring the financial risk, from an insured peril, from themselves and their family to the insurer.
The reality is that while the Northern Territory set up and owned TIO, it is run on a completely commercial basis. Its pricing is not set by government and it is not subsidised in any way. From my research, in areas such as cyclone cover, TIO has not been the cheapest; its prices have sat at the middle of the market.
With flood insurance, the same applies. Regardless of who owns TIO, pricing for flood is moving from community rating to the risk address.
If you do not live in a flood-prone area, this is good news for you. If you are in a flood zone, then your premiums are likely to increase due to the flood risk of your property.
Flood is a concern right across Australia and governments at all levels are, or should be, looking at this. One of the positives coming from the sale of TIO is that the Territory government has pledged A$50 million in flood mitigation for Rapid Creek, Katherine and the Darwin Rural Area. Whether this is enough is yet to be seen. From my observations, I would like to have seen funding go to Alice Springs as well, as I foresee significant flood losses in that town in the future.
In summary, I see no difference in increase in pricing due to the sale of TIO to Allianz. Over time, the cost of insurance may well be reduced, as there will be some economies of scale with TIO not having to stand alone as a relatively small insurer. Allianz, one of the world’s largest insurers, has greater capacity to hold risk itself and greater buying power when it comes to re-insurance.
While the TIO was originally established due to insurers being reluctant to offer workers’ compensation cover in the Territory, today it is serviced by 12 insurers. All offer cyclone cover and only one does not provide flood cover.
All other states have sold their general insurance companies. As the Territory matures and its economy grows, it does seem right for the government to move out of this area and concentrate on other areas where government is the most appropriate supplier of the service. In my view, the government achieved a very good price on the sale for the benefit for all Territorians.
Allan Manning is adjunct professor at <a href="https://www.vu.edu.au/" target="_blank">Victoria University</a> and is managing director of LMI Group. 
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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Will the Territory Insurance Office sale push up premiums?

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A $200 million, 18 storey mixed-use proposal has been received from Darwin developers Randazzo and La Pira families for a Palmerston ‘superblock’.
The ‘superblock’, named as such due to its 6,060 square metre size in the centre of the CBD, has been vacant since the 1980s and is government owned, according to Minister for Lands, Planning and the Environment Peter Chandler.
It will be the tallest building in Palmerston and the first mixed-use project of its kind. The Northern Territory developers previously created the Palmerston Shopping Centre, Highway House and the Goyder Building.
It is to be the first of its type for Palmerston and will provide housing and accommodation options.
To be called Boulevard Plaza, it is expected to bring 225 apartments, 185 hotel rooms and street level access to 10,000 square metres of retail and hospitality space, said Chandler.
“What’s becoming clear is that Territorians want more choice with their housing options. Apartments in Darwin are being snapped up at record rates and smaller blocks of land are becoming more attractive to home buyers,” he said.
“Living and working in the city has many economic and environmental advantages with less of a reliance on vehicles to commute to work, shops or social events.”
Paolo Randazzo and Peter La Pira have said that it will revitalise and activate the heart of the city, noting it will support the rural area, defence activities, oil and gas, the new hospital and the increased commercial activity.
“We played a key role in the social and economic growth of Palmerston and we are now reinvesting in the city’s future because of our confidence in Palmerston’s growth,” La Pira said.
It will be designed by another local name, architects Jackman Gooden, and will have energy efficient measures and a large podium on level five.
The proposal will be lodged with the Development Consent Authority in early-2015, with construction expected shortly after. It will be built over several years in a staged release.
Picture of Palmerston courtesy of Bidgee/Wikimedia Commons.
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Palmerston’s tallest building coming: 18 storey 'superblock' proposed

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Richard Bruxner, a Northern Territory lawyer, has been appointed by Attorney-General John Elferink as the president of the new Northern Territory Civil and Administrative Tribunal (NTCAT) for a period of 12 months.
The 12 month temporary appointment is until a selection process is complete and a permanent president is appointed, explained Elferink. Candidates for president of NTCAT must be a magistrate or eligible to be a magistrate.
The NTCAT is located in Casuarina.
“Mr Bruxner has 24 years’ experience as a lawyer, mainly in the field of litigation. He was at the private bar for 11 years before joining the Solicitor for the Northern Territory’s Chambers in 2008,” he said.
“Mr Bruxner was appointed Crown Counsel in October 2011 and has since been working in the Solicitor General's Chambers.”
The new NTCAT was introduced to cut red tape and provide a single place for civil and administrative appeals, with a focus on ‘fairness’ rather than strict legal interpretations, with an aim to be less intimidating than court-based appeals.
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Northern Territory lawyer appointed NTCAT president

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A 27 hectare site on College Road, Berrimah in the Northern Territory has been released for the development of 50 to 60 industrial lots.
The site’s works are expected to begin in 2015, with sales to follow.
Northern Territory Minister for Lands, Planning and the Environment, Peter Chandler, said that there is a well-known historic lack of residential land in the area, but there is also strong demand for industrial land.
“The Country Liberals are leading a nation-wide push to develop Northern Australia and companies are falling over themselves to invest in the Territory,” Chandler said, pointing to Southern Steel’s opening of operations at East Arm, close to this new site.
“It is important that enough land is released so we can capitalise on this investment potential,” he said.
Their aim is to secure a pipeline of major projects to break the “boom and bust cycle of the economy and support sustained growth”.
They have opened a<a href="https://www.lands.nt.gov.au/land-release/College-Road-Industrial" target="_blank"> public request for proposal process</a>, which closes on 1 December. A briefing will be held on 1 October.
The industrial subdivision site is expected to help boost new and existing businesses and provide further employment options. It is 26.8 hectares in size, zoned GI (general industry) and 10 kilometres from both Darwin and Palmerston.
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Northern Territory land released for industrial development

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A new project in Northern Territory’s Alawa is underway, with plants to redevelop ageing housing into new Defence and public housing sites.
The project will be developed by the Northern Territory government in conjunction with Defence Housing Australia (DHA) and is the first time the two have partnered together with the potential for future projects.
Northern Territory Housing Minister Matt Conlan said that the project will improve the quality of public housing.
“By partnering with an experienced developer in DHA, the government will gain the benefit of quality new public housing dwellings built cost-effectively,” he said.
“The redevelopment costs will be funded wholly by the DHA in return for the exchange of land.”
The trial site at 27-33 Young Crescent includes four vacant properties that are more than 30 years old.
DHA will seek approval to construct 11 townhouses. They are currently consulting with several stakeholders, including Darwin City Council. 
DHA managing director Peter Howman said that they are extending their residential development industry expertise to housing Defence staff, but also to benefit other Darwin residents.
“DHA has always been a major part of the NT’s residential development sector,” he said, with more than 2,000 Defence members in DHA homes in the territory.
“We have led the way in designing climate-responsive housing for the residents of the Top End and this new initiative is another great way to show the community that we are committed to being a part of this city and to helping it thrive.”
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NT government joins forces with DHA to redevelop ageing housing

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Launched in June, the Northern Territory’s Remote Home Ownership Program looks to move public housing tenants in remote communities into owning a property.
It focuses on the Tiwi Islands, Groote Eylandt and Bickerton Island and seeks to allow tenants to become home owners.
Loan products will be provided by Indigenous Business Australia, including services and insurance, for the first 12 months. After the sale, the buyers will be given a special incentive grant of $20,000 for home upgrades and maintenance.
The first homes are expected to be put up for sale by the end of the year.
Housing Minister Matt Conlan said that they’re currently in the process of discussing the program with the communities and stakeholders.
This includes the traditional owners, land councils, regional councils, housing reference groups and government engagement coordinators.
 “It is clear there is an appetite for home ownership is in these communities with 11 finance applications already lodged, which is fantastic to see,” said Conlan.
 “We want public housing to be a pathway to home ownership, not an end in itself and it is pleasing to see this supported by these communities.”
Those areas with long-term township leases include Wurrumiyanga on Bathurst Island, Milikapiti on Melville Island, Angurugu and Umbakumba on Groote Eylandt and Milyakburra on Bickerton Island.
The program has been provided $4.5 million for the next three years, and this figure could see up to 50% of remote housing stock made available to tenants to buy.
“The price of properties will be determined via an independent evaluation and it is expected that most homes would be available for purchase in the $50,000 to $150,000 range,” he said.
The next stage is to request formal expressions of interest from tenants. This will then be followed by an eligibility assessment.
Photo courtesy of Wikimedia COmmonso
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